PARLIAMENTARY DEBATE
EU: Future Relationship White Paper - 12 July 2018 (Commons/Commons Chamber)
Debate Detail
I pay tribute both to my right hon. Friend the Member for Haltemprice and Howden (Mr Davis) for his Herculean efforts and to my hon. Friend the Member for Wycombe (Mr Baker) and the wider Department for Exiting the EU team for getting us to this point in both the negotiations and the successful passage of the European Union (Withdrawal) Bill through Parliament. It is a striking achievement. My right hon. Friend is a loss to Government, but I suspect, with the mildest apprehension, a considerable gain to this House.
Today, we publish the Government’s White Paper on the UK’s future relationship with the EU. It is a new and detailed proposal for a principled, pragmatic and ambitious future partnership between the UK and the EU in line with the policy agreed at Chequers last week. I have now placed a copy of the White Paper in the Libraries of both Houses.
Let me briefly set out the key proposals. The Government are determined to build a new relationship that works both for the UK and the EU: one that is grounded in our shared history, but which also looks to a bright and ambitious future; and a relationship that delivers real and lasting benefits to both sides.
First, the White Paper confirms that the UK will leave the European Union on 29 March 2019, forging a new way in the world, outside the single market and outside the customs union. It safeguards the constitutional and economic integrity of the UK. It reclaims the UK’s sovereignty and it protects our economic interests by minimising the risk of any disruption to trade. It delivers on the instruction that we received loud and clear from the British people to take back control over our laws, our borders and our money.
In delivering on this vision, the Government propose an innovative and unprecedented economic partnership based on open and free trade, maintaining frictionless trade through a new UK-EU free trade area for goods, underpinned by an ongoing common rulebook covering only those rules necessary to provide for frictionless trade at the border. This will support business and meet our shared commitments to Northern Ireland and Ireland, avoiding reliance on the so-called backstop solution. A key component of this will be our proposal for a facilitated customs arrangement—a business-friendly model that removes the need for a new routine customs check and controls between the UK and the EU, while enabling the UK to control its own tariffs to boost trade with the rest of the world. We want a deep and comprehensive deal on services, based on the principles of international trade. Our approach minimises new barriers to service provision, allowing UK firms to establish in the EU and vice versa, and provides for mutual recognition of professional qualifications.
On financial services, we propose a new economic and regulatory approach with the EU that will preserve the mutual benefits of our uniquely integrated markets, while protecting financial stability and, critically, the autonomy of our own rule making. Crucially, our proposals on services provide the UK with regulatory flexibility in the sector, including our dynamic, innovative and digital sectors, which will in turn open up new possibilities in relation to trade with the wider world.
As we leave the EU, free movement of people will come to an end. We will control the number of people who come to our country. We will assert stronger security checks at the border. [Interruption.]
On resuming—
As we leave the EU, free movement of people will come to an end. We will control the number of people who come to our country. We will assert stronger security checks at the border. The Government will also seek a reciprocal mobility arrangement with the EU in line with the approach we intend to take with other key trading partners around the world. In practice having ended free movement, this is about enabling firms to move their top talent across borders to deliver services, facilitating travel without a visa for tourism and business trips, and making sure that our students and youngsters in the UK and the EU continue to benefit from the educational opportunities in universities and colleges—and indeed from the rich tapestry of cultural life right across the continent.
Next, the White Paper addresses Europe’s security, which has been and will remain the UK’s security. That is why the Government have made an unconditional commitment to maintain it. The Government’s proposal is for a new security partnership with the EU to tackle the shared, complex and evolving threats, enabling the UK and the EU to act together on some of the most pressing global challenges. It is important that the UK and the EU can continue operational co-operation on law enforcement and criminal justice to keep people safe right across Europe. Our proposals extend to other areas of co-operation of vital importance to the UK and the EU, including the continued protection and exchange of personal data; new arrangements on fishing; and co-operative accords on science and innovation, culture, and defence research.
When we leave the EU, the European Court will no longer have jurisdiction over this country. At the same time, we will need to be able to interpret what we have agreed accurately and consistently, and to manage any future bones of contention sensibly and responsibly. Our proposals provide for proper accountability and the consistent interpretation of UK-EU agreements by both parties. We envisage resolving disputes that may arise through arbitration. That is fair, balanced, and reflective of global practice. To provide the foundation for a new and enduring relationship, the agreement must be flexible enough to enable us to review and, if necessary, revise its operation over time in the best interests of this country, as is common in free trade agreements across the world.
I would like to make one thing very clear: we will not sign away our negotiating leverage or spend taxpayers’ money in return for nothing. The financial settlement that was agreed in December, which substantially lowered EU demands, was agreed on the basis that it would sit alongside a deep and mutually beneficial future partnership. We agreed that we would meet our commitments as they fall due, with ever-declining payments over a finite period that add up to a tiny fraction of what would have been our net contribution. Both sides have been clear that nothing is agreed until everything is agreed. Indeed, that is in keeping with the spirit of article 50. There should be a firm commitment in the withdrawal agreement requiring the framework for the future relationship to be translated into legal text as soon as possible. Of course, if one party fails to honour its side of the overall bargain, there will be consequences for the whole deal. For our part, today, with the publication of this White Paper, the UK Government are demonstrating, in good faith and with good will, our ambition and resolve to ensure that we do build that deep and special partnership.
The Prime Minister first outlined the blueprint for a deep and special relationship with the EU at Lancaster House, and expanded on it further in speeches in Florence, in Munich, and at Mansion House. Those speeches have shaped and continue to shape our negotiations with the EU. I am confident that a deal is within reach, given the success of the Prime Minister and her negotiating team so far. Most issues under the withdrawal agreement have by now been resolved, with a deal in place to secure the rights of over 3 million EU citizens living in the UK and about 1 million UK citizens living in the EU. We have agreed a time-limited implementation period that gives businesses, government and citizens the certainty to plan their lives and invest for the future. We will shortly publish a White Paper on the withdrawal agreement and implementation Bill setting out how we will give effect to the withdrawal agreement in domestic law and demonstrating to the EU that the UK is a dependable negotiating partner—one that will deliver on its commitments.
Our discussions with the EU will squarely focus on our shared future. This White Paper sets out how we can achieve that new partnership. Now it is time for the EU to respond in kind. We approach these negotiations with a spirit of pragmatism, compromise and, indeed, friendship. I hope and trust that the EU will engage with our proposals in the same spirit, and I plan to meet Michel Barnier next week to discuss the detail in person.
At the same time, the Government are preparing in the event that that spirit of pragmatism and good will is not reciprocated. On Monday I spoke with my right hon. Friend the Prime Minister, and we agreed to step up our planning for the no deal scenario so that the UK is ready for Brexit no matter what the outcome of these negotiations is. That is the responsible thing for a Government to do.
This White Paper sets out the right Brexit deal, delivering on the result of the referendum; taking back control over our money, laws and borders; supporting the economy by maintaining a strong trading relationship after we have left; ending free movement while avoiding a hard border between Northern Ireland and Ireland, or indeed between Northern Ireland and Great Britain; restoring sovereignty to Parliament and the authority of the UK Supreme Court; seizing the opportunity to forge new trade deals around the world; and maintaining co-operation with the EU in the many other areas that we prize, including security co-operation to keep our people safe. This is our vision for a bold, ambitious and innovative new partnership with the EU. Principled and practical, faithful to the referendum, it delivers a deal that is good for the UK and good for our EU friends. I commend this statement and the White Paper to the House.
I gently say that the Secretary of State has not got off to a very good start. The utter shambles of the last 20 minutes, which led to the suspension of the House during a statement, is clear evidence of why the Government are in such a mess. [Interruption.] Those on the Government Front Bench are commenting from a sedentary position. Normally I would thank the Secretary of State for advance sight of the White Paper, but on this occasion, my first question to him is: why did the Government think it appropriate to share the White Paper in full with journalists at 9 am today—I think they were given 15 minutes to read it before questions could be asked, unlike the five minutes that we adjourned for—and give them hard copies, and only to provide the Opposition with a copy three hours later? As he will know, my office has been on to his office all morning asking for this White Paper. It was delivered at 11.55 am, and we saw the shambles that followed. Why was it appropriate on this occasion, on this issue, to give it to the press at 9 am and to the Opposition three hours later?
That is not the only breach of protocol. I was handed the Secretary of State’s statement as we finished business questions. But for the point of order, it would have been as he stood up. That is in breach of the ministerial code, which suggests giving 45 minutes. It is deeply discourteous, and it is unacceptable. I have to say, having heard the statement, that I did not miss much, but the serious point is this: the point of these statements is to allow questions to be asked of the Secretary of State, and by proceeding in this way, with this utter shambles, we are denied proper scrutiny of this White Paper. I am sure the House would like to know—
As for the new Secretary of State, I am sure the House would like to know when he was first shown the contents of the White Paper. He was not at Chequers, so when did Olly Robbins tell him that this was the policy he now had to sell? That is an important question, because it appears that two White Papers are being published today: the one before the House, and the alternative one apparently drafted by his own Department. That is now available in instalments on “ConservativeHome”. In fact, it beat this White Paper to publication.
I listened very carefully to what the Secretary of State said earlier on the “Today” programme and in his statement, when he described this White Paper as “innovative”. For the record, can he confirm to the House that he does actually agree with everything in the White Paper he is presenting?
Turning to the substance, obviously we will have to look at the detail of the White Paper. The purpose of the short Chequers statement issued on Friday was to hold the Cabinet together. It clearly failed in that objective, unravelling within 48 hours. If this White Paper is more of the same, it will undoubtedly share the same fate.
Across the business community, among trade unions and, I genuinely believe, across the House, there is growing unity that the UK should remain economically close to the EU. That means negotiating a comprehensive customs union with the EU27 and a single market deal with the right balance of rights and obligations, tailored to the UK. That combination is also the only way of delivering on the solemn promise of no hard border in Northern Ireland. The White Paper falls a long way short of that.
I would like to ask the Secretary of State for a simple answer to a simple question. Is this White Paper the Government’s starting position in the next phase of the negotiations, in which case we can expect further evolution of the Government’s position, or is it the Government’s final position and as far as they are prepared to go—new red lines?
Let me develop that theme. The White Paper sets out proposals for a facilitated customs arrangement. [Interruption.]
As for the facilitated customs arrangement, we think the proposals would be a bureaucratic nightmare, unworkable and costly for business. They rely on technology that does not currently exist. If, based on analysis, the EU27 agree with that assessment and reject the proposal on a customs arrangement, is the Government’s position that we should then negotiate a customs union with the EU, as the majority in the House think we should? On services, there is almost nothing, so again, if the Government’s proposals for mutual recognition and enhanced equivalence fail, what then?
In the short time I have had available to me, a number of features of this White Paper have leaped out. Vis-à-vis travel to work, the Secretary of State said in his statement that that was for business trips. The White Paper says that it is for “business activity”. I wonder if he could clear up the difference between the two. That is in paragraph 76 of chapter 1. Paragraph 89 of chapter 1 refers to reciprocal arrangements on social security. Could he elaborate on what that is? Paragraph 4 of chapter 4 says that the UK’s proposal
“would take the form of an Association Agreement”.
Again, could he elaborate on that? In paragraph 42 on page 93, there is a reference to the role of the European Court and interpretation. Perhaps he could elaborate on that as well.
Coming 15 months after article 50 was triggered and just three months before the article 50 agreement is expected, this White Paper has obviously arrived very late in the day. The Chequers statement unravelled in two days. When the details of this White Paper are examined, there are very few reasons to believe it will not suffer the same fate.
I thank the right hon. and learned Gentleman for his generous welcome. I noticed that it came in two parts, but I am genuinely looking forward to working with him at this historic crossroads for our country. Like him I am a recovering lawyer, like him I voted to trigger article 50, and at the last general election we both stood on manifestos that promised the British people we would leave the EU, so I hope he will forgive me if I remind him of that every now and again.
The right hon. and learned Gentleman made some rather disobliging comments on unity. May I say to him ever so gently that people in glass houses should not throw stones? At the last count, there have been 103 Front-Bench resignations from Labour under its current leader, a record that is unlikely to be rivalled any time in the foreseeable future.
The right hon. and learned Gentleman made a number of procedure and process points, which rather seemed to be displacement activity for anything Labour might have to say on the substance of Brexit. [Interruption.]
The right hon. and learned Gentleman made some specific points. He asked if I agreed with the White Paper. Yes, of course. He asked whether the White Paper was a starting point for the negotiation or the end point. It is for the negotiation, but we are confident that it is a principled, practical approach that can deliver a lasting deal and a good deal for this country and for the EU. He made some comments about services. In fact, we are looking to make sure that we have full autonomy over rule making in relation to services, with arrangements for recognition so that we retain our services provision between the UK and the EU, but are freed up to trade in services more energetically and more liberally through the trade deals we do right across the world.
On free movement, the White Paper is clear, if the right hon. and learned Gentleman wants to read it in good faith and understand our position. We have made it clear that we are ending free movement. That means we are going to take back control of our borders. It means that we will have stronger security checks at the border. It also means that we will have control over the number of people who come to this country. At the same time, we want Britain to be an open, outward-looking country. We want to encourage and facilitate business trips from the EU to the UK—that is common sense. We want to make sure there is visa waiver travel for tourism such as family holidays—that is common sense. For students and young people wanting to engage in research or go to university, or indeed to engage in the cultural activities across the continent, we obviously want to have sensible arrangements—that is common sense too.
The right hon. and learned Gentleman talked about the customs union and the single market. He needs to be clear: if Labour’s position is to remain in the single market or the customs union and if, as he has said before, freedom of movement is “up for negotiation”—his words, not mine—that would break every promise every Labour candidate made at the last election to end free movement. The Government now stand ready to work with the EU over the coming weeks, ahead of the European Council in October. We must move at pace and we must negotiate with resolve to deliver the prosperous and secure future that all our peoples deserve.
I want to raise paragraph 7d with my right hon. Friend. To pursue what the right hon. and learned Member for Holborn and St Pancras (Keir Starmer) said for the Opposition, we have seen very little about the migration proposals, which seem to be out there as part of what might be referred to as negotiating capital. To follow on from his question, which I think was quite legitimate, the phrase at the end of paragraph 7d is
“arrangements that the UK might want to offer to other close trading partners in the future”.
My simple question is: when the Government go to discuss, negotiate or confer with the EU, whichever phrase suits, does my right hon. Friend believe that the Government will be prepared to withdraw the rights to benefits of those who come without jobs?
Brexit was of course a disastrous outcome of Tory infighting, and it now looks as though the Tory compromise last week is also falling victim to Tory infighting. It is an embarrassment and massively damaging. In January last year, the Prime Minister laid out 12 principles to underpin her Brexit process. The first was certainty and clarity, but we have had neither. The take-home from this latest Brexit White Paper seems to be that we are leaving the EU but we are putting in place regulations to comply with EU regulations on the movement of goods, so we will have no say in the decisions but we will abide by them. What mechanism will check the UK’s regulatory compliance with EU rules to allow access to the market? Will the UK use EU standards in negotiations on other trade agreements, or will there be a whole different set of standards for each agreement? Even more importantly, services make up 80% of the UK’s economy, and paragraph 48 of the White Paper says that
“the UK and the EU will not have current levels of access to each other’s markets.”
That is the Government limiting the sector’s access to the world’s biggest market, which is massively damaging. What measures will the Government bring in to compensate for that bizarre and unhelpful move?
Scotland is right in the firing line of this Brexit dither and indecision—damaged yet again by Tory infighting and intransigence. Is it not time that the Government accepted that this is a wrong-headed scheme and kept us in the single market and the customs union? They would be well advised to take the measured and sensible approach recommended by the Scottish Government ahead of last week’s Joint Ministerial Committee. Will that be considered? The Government’s own analysis has shown that Brexit is massively damaging, no matter what protections are offered. Will the Government now listen to wiser heads, reverse course for everyone’s good, and stay in the single market and customs union?
Lastly, what on earth is happening in this place? Not only did the Opposition parties receive copies of the White Paper appallingly late, but it is customary for party spokespeople to have sight of statements before Ministers rise to their feet, not during the statement, as happened today. This Government’s contemptuous treatment of this Parliament has once again been laid bare for all to see.
In relation to goods and services, we will be taking the decision to agree to a common rulebook, because we want to mitigate any risk of friction at the border. However, this House and the Government—the UK—will have the chance to feed in to any potential changes that may occur over time through consultation. Ultimately, there is a parliamentary lock to make sure that elected Members of this House have the last word. The reality in relation to goods is that the corpus or body of law remains relatively stable. Unlike goods, services are not affected by friction at the border—they are not subject to tariffs or customs—and unlike the vast majority of manufactured goods and agri-food products, most services are not subject to specific standards. The hon. Lady complained about rule taking in relation to goods and then she complained about our not being subject in relation to services. That made no sense at all.
“in accordance with normal legislative procedure”,
and that “Parliament could decide” not to enact them. I understand what that is getting at, but if I may say so, I assure the House, as Chairman of the European Scrutiny Committee and having been on that Committee for 33 years, that never in my experience—despite what was promised in the White Paper in 1971, before the 1972 Act—has there ever been an occasion when the House has overturned a European regulation, which puts me on serious caution. I therefore have to ask: how would this system work in practice, would it be Whip-ridden, and would the so-called parliamentary lock be burglar-proof?
In the statement on the Chequers agreement, the Government said that they would “commit by treaty” to ongoing harmonisation with EU rules on goods. If the facilitated customs arrangement is agreed by the EU, will it be ready to be implemented by 31 December 2020? If not, what arrangements do the Government propose to put in place to cover the gap there would then be between that date and the date on which the new arrangements would finally and fully come into effect?
People should be aware that my right hon. Friend, whom I welcome to his new post, received a Sergei Magnitsky human rights award last November for political campaigning on a cross-party basis. We hope that his progress on exiting the EU will have the same kind of cross-party support, because most voters and most MPs want to see progress.
As the European Union cannot make an agreement with us until we have left, what will the procedures be to ensure that the agreements we make with it after implementation will be carried through?
“maintain a common rulebook for goods, including agri-food”.
Lobbyists estimate that there are currently 170,000 pages of the acquis communautaire. How many of those pages will have to be re-legislated back into UK law and, once they are there, will they ever be amendable?
“If the House of Commons supports a resolution to approve the Withdrawal Agreement and the Future Framework, the Government will bring forward the Withdrawal Agreement and Implementation Bill to give the Withdrawal Agreement legal effect in the UK.”
It says nothing about what will happen if the House of Commons does not approve the withdrawal agreement. What does the Secretary of State believe will happen in those circumstances? Given his past views, many of us suspect that what he will do is drive us towards a no-deal situation.
“upfront choice to commit by treaty to ongoing harmonisation with the relevant EU rules”?
“the UK wishes to explore association in research and innovation programmes”,
that prompts the question what the Government have been doing for the past two years. Do people who work in higher education not deserve more certainty than a wish list?
“the greatest vassalage since King John paid homage to Philip II at Le Goulet in 1200. This White Paper has not needed age to turn yellow”—
presumably he can give us an eyewitness account. The Opposition’s concern, as is clear from the resignations that we have already seen from the Government, is that this White Paper—the Government’s negotiating position—does not command at this stage the support of a majority of the House of Commons. How does the Secretary of State possibly expect the united front of the EU27 Governments, the European Commission and the European Parliament to take this Government at all seriously, because this House clearly does not?
“the UK recognises that the Single Market is built on a balance of rights and obligations, and that the UK cannot have all the benefits of membership of the Single Market without its obligations.”
Are the Government prepared to discuss the possibility of making financial contributions for the privilege of having access to that European market?
“The Government has already demonstrated during the passage of the EU (Withdrawal) Bill that it will actively engage with suggestions from both Houses about the oversight of secondary legislation, adapting scrutiny arrangements as appropriate, and recognising the quality and expertise in the existing scrutiny structures in the Commons and the Lords.”
In the light of today’s shambolic performance, would the Minister care to enlighten us on what parliamentary scrutiny really means, in his eyes?
“continue close cooperation with EU law enforcement and criminal justice agencies”,
and paragraph 54 states that
“the UK will respect the remit of the Court of Justice of the European Union”.
How does the Secretary of State reconcile that view with his own votes? In 2012 he voted against EU data-sharing for criminal justice purposes, in 2013 he voted in favour of the UK’s opting out of all EU police and criminal matters, and in 2014 he voted against the UK’s rejoining EU schemes for closer political and judicial co-operation in criminal matters.
My hon. Friend asked about the money. I took some time to set out in my response that we have made clear the need for a link between the obligations that we undertake in the withdrawal agreement and what we then expect in relation to the future partnership deal on trade, security and other areas in which there is co-operation. That needs to be looked at as a whole. If one side, whichever it may be, does not fulfil its side of the bargain, there will be consequences for the whole deal—and yes, that would include the money.
On free movement, while I accept that many colleagues share the noble position that we should not have a discriminatory system, does my right hon. Friend accept that there is a big implication for unskilled migration, because if we allow it in future, we will have to allow it from anywhere, not just the EU? Does he accept that in those circumstances, non-EU migration would inevitably rise?
May I draw the Secretary of State’s attention to paragraph 76, which states that the economic partnership providing reciprocal arrangements would
“support businesses to provide services and to move their talented people”?
What does “talented” mean and does it include, for example, nurses and care workers?
“the UK proposes a new economic…arrangement with the EU in financial services”;
paragraph 130:
“explore options for…an Air Transport Agreement”;
paragraph 134:
“explore options for reciprocal access for road hauliers”;
paragraph 140:
“explore…options for the future energy relationship”;
and paragraph 143, explore a close relationship with Euratom.
So it has taken the Government two years to state the blindingly obvious. What superhuman negotiation skills does the Secretary of State have to be able to close out these issues in the next three to four months?
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