PARLIAMENTARY DEBATE
EU Exit Negotiations - 15 November 2018 (Commons/Commons Chamber)
Debate Detail
Yesterday we agreed the provisional terms of our exit from the European Union, set out in the draft withdrawal agreement. We also agreed the broad terms of our future relationship, in an outline political declaration. President Juncker has now written to the President of the European Council to recommend that
“decisive progress has been made in the negotiations.”
A special European Council will be called for Sunday 25 November. This puts us close to a Brexit deal.
What we agreed yesterday was not the final deal. It is a draft treaty that means that we will leave the EU in a smooth and orderly way on 29 March 2019 and sets the framework for a future relationship that delivers in our national interest. It takes back control of our borders, laws and money, it protects jobs, security and the integrity of the United Kingdom, and it delivers in ways that many said could simply not be done.
We were told that we had a binary choice between the model of Norway or the model of Canada—that we could not have a bespoke deal. But the outline political declaration sets out an arrangement that is better for our country than both of these—a more ambitious free trade agreement than the EU has with any other country. We were told we would be treated like any other third country on security co-operation, but the outline political declaration sets out a breadth and depth of co-operation beyond anything the EU has agreed with any other country.
Let me take the House through the details. First, on the withdrawal agreement, the full legal text has now been agreed in principle. It sets out the terms on which the UK will leave the EU in 134 days’ time, on 29 March 2019. We have secured the rights of the more than 3 million EU citizens living in the UK and around 1 million UK nationals living in the EU. We have agreed a time-limited implementation period that ensures businesses only have to plan for one set of changes. We have agreed protocols to ensure Gibraltar and the sovereign base areas are covered by the withdrawal agreement, and we have agreed a fair financial settlement—far lower than the figures many mentioned at the start of this process.
Since the start of this process, I have been committed to ensuring that our exit from the EU deals with the issue of the border between Northern Ireland and Ireland. I believe this issue can best be solved through our future relationship with the European Union, but the withdrawal agreement sets out an insurance policy should that new relationship not be ready in time for the end of the implementation period. I do not pretend that this has been a comfortable process or that either we or the EU are entirely happy with all of the arrangements that have been included, but of course that is the case—this is an arrangement that we have both said we never want to have to use. But while some people might pretend otherwise, there is no deal that delivers the Brexit the British people voted for that does not involve this insurance policy—not Canada plus plus plus, not “Norway for now,” not our own White Paper. The EU will not negotiate any future partnership without it.
As the House knows, the original proposal from the EU was not acceptable as it would have meant creating a customs border down the Irish sea and breaking up the integrity of our United Kingdom, so last month I set out for the House the four steps we needed to take. This is what we have now done, and it has seen the EU make a number of concessions towards our position.
First, the EU proposal for a Northern Ireland-only customs solution has been dropped and replaced with a new UK-wide temporary customs arrangement that protects the integrity of our precious Union.
Secondly, we have created an option for a single time-limited extension of the implementation period as an alternative to bringing in the backstop. As I have said many times, I do not want to extend the implementation period and I do not believe we will need to do so. This is about an insurance policy, but if it happens that at the end of 2020 our future relationship is not quite ready, the UK will be able to make a choice between the UK-wide temporary customs arrangement or a short extension of the implementation period.
Thirdly, the withdrawal agreement commits both parties to use best endeavours to ensure that this insurance policy is never used, and in the unlikely event that it is needed, if we choose the backstop, the withdrawal agreement is explicit that the backstop is temporary and that the article 50 legal base cannot provide for a permanent relationship. There is also a mechanism by which the backstop can be terminated.
Finally, we have ensured full continued access for Northern Ireland’s businesses to the whole of the UK internal market.
The Brexit talks are about acting in the national interest, and that means making what I believe to be the right choices, not the easy ones. I know there are some who have said I should simply rip up the UK’s commitment to a backstop, but this would have been an entirely irresponsible course of action. It would have meant reneging on a promise made to the people of Northern Ireland during the referendum campaign and afterwards—that under no circumstances would Brexit lead to a return to the borders of the past—and it would have made it impossible to deliver a withdrawal agreement. As Prime Minister of the United Kingdom, I have a responsibility to people in every part of our country, and I intend to honour that promise.
By resolving this issue, we are now able to move on to finalising the details of an ambitious future partnership. The outline political declaration we have agreed sets out the basis for these negotiations, and we will negotiate intensively ahead of the European Council to turn this into a full future framework.
The declaration will end free movement once and for all. Instead we will have our own new skills-based immigration system, based not on the country people come from but on what they can contribute to the UK. The declaration agrees the creation of a free trade area for goods, with zero tariffs and no fees, charges or quantitative restrictions, across all goods sectors. No other major advanced economy has such an arrangement with the EU and, at the same time, we will also be free to strike new trade deals with other partners around the world.
We have also reached common ground on a close relationship on services and investment, including financial services, which goes well beyond World Trade Organisation commitments. The declaration ensures that we will be leaving the common agricultural policy and the common fisheries policy, so we will decide how best to sustain and support our farms and our environment, and the UK will become an independent coastal state once again.
We have also reached agreement on key elements of our future security partnership to keep our people safe. This includes swift and effective extradition arrangements, as well as arrangements for effective data exchange on passenger name records, DNA, fingerprints and vehicle registration data. We have also have agreed a close and flexible partnership on foreign, security and defence policy.
When I first became Prime Minister in 2016 there was no ready-made blueprint for Brexit. Many people said it could simply not be done. I have never accepted that. I have been committed day and night to delivering on the result of the referendum and ensuring the UK leaves the EU absolutely and on time. But I also said at the very start that withdrawing from EU membership after 40 years, and establishing a wholly new relationship that will endure for decades to come, would be complex and require hard work. I know that it has been a frustrating process—it has forced us to confront some very difficult issues—but a good Brexit, a Brexit which is in the national interest, is possible.
We have persevered and have made a decisive breakthrough. Once a final deal is agreed, I will bring it to Parliament, and I will ask MPs to consider the national interest and give it their backing. Voting against a deal would take us all back to square one. It would mean more uncertainty, more division and a failure to deliver on the decision of the British people that we should leave the EU. If we get behind a deal, we can bring our country back together and seize the opportunities that lie ahead. The British people want us to get this done and to get on with addressing the other issues they care about: creating more good jobs in every part of the UK; doing more to help families with the cost of living; helping our NHS to provide first-class care and our schools to give every child a great start in life; and focusing every ounce of our energy on building a brighter future for our country.
So the choice is clear: we can choose to leave with no deal; we can risk no Brexit at all; or we can choose to unite and support the best deal that can be negotiated—this deal. It is a deal that ends free movement; takes back control of our borders, laws and money; delivers a free trade area for goods with zero tariffs; leaves the common agricultural policy and the common fisheries policy; delivers an independent foreign and defence policy, while retaining the continued security co-operation to keep our people safe; maintains shared commitments to high standards; protects jobs; honours the integrity of our United Kingdom; and delivers the Brexit the British people voted for. I choose to deliver for the British people. I choose to do what is in our national interest. And I commend this statement to the House.
The withdrawal agreement and the outline political declaration represent a huge and damaging failure. After two years of bungled negotiations, the Government have produced a botched deal that breaches the Prime Minister’s own red lines and does not meet our six tests. The Government are in chaos. Their deal risks leaving the country in an indefinite halfway house, without a real say. When even the last Brexit Secretary, who, theoretically at least, negotiated the deal, says that
“I cannot support the proposed deal”,
what faith does that give anyone else in this place or in this country? The Government simply cannot put to Parliament this half-baked deal that both the Brexit Secretary and his predecessor have rejected. No deal is not a real option, and the Government have not seriously prepared for it. The Government must publish their full legal advice, the Treasury a full economic impact assessment of the deal and the Office for Budget Responsibility an updated economic forecast.
The withdrawal agreement is a leap in the dark—an ill-defined deal by a never defined date. There is no mention of the Prime Minister’s favoured term “implementation period” anywhere in the 585 pages of this document. And no wonder, as there is precious little new to implement spelled out in either the agreement or the political declaration. Article 3 of the agreement states that transition can be extended to end by “31 December 20XX”. Can the Prime Minister confirm that this permits an extension to be rolled on until 2099?
Can the Prime Minister confirm that if the UK Government cannot agree a comprehensive future relationship by January 2021, which few believe will be possible and which the last two years give us no confidence the Government can do, those negotiations would have to be put on hold, because the focus would then inevitably shift from negotiations on the future relationship to those on an extension of the transition period, including further payments to the EU? Article 132 sets out that process fairly clearly.
How confident is the Prime Minister that a deal can be done by the end of 2020, and can she confirm that if a new trade agreement is not agreed by 31 December 2020, article 132 will apply—meaning our paying a huge financial contribution to extend the transition period—if we are to avoid triggering the backstop, as the Prime Minister insists is her position? Should the backstop come into force, there would be no time limit or end point, and if either party requested a review and there was no agreement, it would go to independent arbitration. The backstop locks Britain into a deal it cannot leave without the agreement of the EU. Restrictions on state aid are hardwired into the backstop, with an arbitration mechanism, but no such guarantee exists for workers’ rights.
Can the Prime Minister confirm that the backstop applies separate regulatory rules to Northern Ireland, creating a de facto border down the Irish sea, as Northern Ireland would be subject to the customs union but the rest of the UK would not? That is despite the fact that the Prime Minister said this was something
“no UK Prime Minister could ever agree to”—[Official Report, 28 February 2018; Vol. 636, c. 823.]
It is another of her red lines breached. In fact, the list of EU measures that continue to apply to the UK in respect of Northern Ireland runs to 68 pages of the agreement. This affects VAT declarations and rules of origin checks.
Moreover, it is clear that the Prime Minister’s red line regarding the jurisdiction of the European Court of Justice has also been torn up. By 2021, under the Prime Minister’s plan, we will either be in a backstop or still be in transition, continuing to contribute to the EU budget and to follow the rules overseen by the ECJ. It is utterly far-fetched for the Prime Minister to say this plan means we take control over our laws, money and borders.
After two years of negotiation, all the Government have really agreed is a vague seven-page outline of political declarations, which looks like a substantial dilution of the Prime Minister’s previously declared negotiating priorities. There is only the scantiest mention of workers’ rights, consumers’ rights and environmental protection; there is no determination to achieve frictionless trade, or even trade as frictionless as possible; and no ambition to negotiate a new comprehensive customs union that would protect trade, jobs and industry, so uncertainty continues for businesses and all those who work in them. That risks investment decisions being deferred even further, costing jobs and living standards. Many companies might decide that the lack of certainty simply means they themselves will Brexit. There is no clear plan to get a strong deal with the single market to ensure continued access to European markets and services, merely a vague commitment to go beyond the baseline of the World Trade Organisation. The First Ministers of Wales and Scotland made it clear to the Prime Minister that participation in a customs union to protect the economy and jobs was essential.
Likewise, there is no ambition to achieve continuation of the European arrest warrant or an equivalent, and no clarity on our status with Europol, Eurojust or even the Galileo project. There is no clarity either on a future immigration system between the UK and the EU. Following the Windrush scandal, many EU nationals here will have no confidence—no confidence at all—in the Government’s ability to deliver a fair and efficient system.
The Brexit Secretary promised a “substantive” document; he is obviously no longer here, so can the Prime Minister inform the House of when that detailed framework agreement will be with us?
This is not the deal that the country was promised, and Parliament cannot, and I believe will not, accept a false choice between this bad deal and no deal. People around the country will be feeling anxious this morning—about the industries they work in, the jobs they hold and the stability of their communities and their country. The Government must now withdraw this half-baked deal, which it is clear does not have the backing of the Cabinet, this Parliament or the country as a whole.
The right hon. Gentleman said that the withdrawal agreement is ill defined. Five hundred pages of detailed legal text on the withdrawal agreement is not an ill-defined withdrawal agreement. He complained that the withdrawal agreement does not refer to the implementation period. Of course, it does refer to the transition period, which is exactly the same period of time.
The right hon. Gentleman then talked about the whole question of the decision on the backstop and the implementation period as coming at the end of 2020. Well, if he looks again at the documents that have been produced, he will see that actually the decision will be taken in June 2020 as to whether it is likely that the future relationship will not be in place on 1 January 2021. At that point, it will be for the UK to decide whether it wishes to extend the implementation period for a limited period, or whether it wishes to go into the backstop.
The right hon. Gentleman is wrong to say that we have not dealt with the issue of the border down the Irish sea. We have dealt with that, as I was clear in this House that we would. It took some considerable time to persuade the European Union to move from its proposal for a Northern Ireland-only customs territory to a UK-wide customs territory, but we have achieved that.
In relation to the question of workers’ rights, there is reference to non-regression.
The right hon. Gentleman says that the outline political declaration does not refer to what we are proposing in terms of a free trade area for the future; in fact, the protocol explicitly does reference that. It sets out very clearly that we will be creating a free trade area between the United Kingdom and the European Union.
I am really not sure what document the right hon. Gentleman has read, because he said that there were no references to extradition, but there are indeed references to extradition. He also said that there was nothing about Europol, whereas there is an express reference that we will be including in the future document:
“Terms for the United Kingdom’s cooperation via Europol and Eurojust.”
I say to the right hon. Gentleman that there is indeed a choice before Members of this House: it is a choice of whether or not we go ahead with a deal that does deliver on the vote while protecting jobs, our security and our Union. Of course, what he wants is for us to stay in the single market and the customs union. That would not deliver on the vote of the referendum. We are delivering an end to free movement, coming out of the common agricultural policy and out of the common fisheries policy, and we are taking back control of our money, borders and laws. That is the right deal for Britain, and it is the deal that we will be putting forward before this House.
The Prime Minister comes before us today trying to sell us a deal that is already dead in the water. Not even her own Brexit Secretary could stand over it. Now, to lose one Brexit Secretary is one thing, but to lose two in a matter of months illuminates the chaotic nature of this Tory Government. The No. 10 front door has become a revolving one. The Prime Minister talks about taking back control. She cannot even control her own Cabinet. As I said yesterday, she is desperate and is increasingly looking defeated. What is absolutely shocking is that Scotland is not once mentioned in the document. Not once, Prime Minister, have the unique characteristics of Scotland’s devolved settlement been worthy of mention—[Interruption.]
Differentiated deals for Northern Ireland means that Scotland can have its own differentiated deal. If Northern Ireland can stay in the single market, why not Scotland, Prime Minister? The Scottish Government have published compromise documents calling for just this and the Scottish Parliament has affirmed that position. Why does the Prime Minister ignore the democratically expressed position of the Scottish Government? What has happened to the claim of a partnership of equals? Why are the desires of Scotland being ignored, when we know that a differentiated settlement can be delivered? Why does the Prime Minister stand in the face of the legitimate demands of the Scottish Government and the Scottish Parliament? [Interruption.] The Prime Minister can shake her head, but it is a matter of fact and a matter of reality. Show some respect to the devolved institutions. The price—[Interruption.] You can bay, you can shout and you can talk about it being dreadful, but why were the Scottish Government not consulted, as Gibraltar was, before the Prime Minister went to Cabinet yesterday?
The price that Scotland would be forced to pay is far too high, with lost jobs, household incomes slashed and our NHS under threat. Now is the time to get realistic and put sensible options back on the table, such as remaining in the single market—the only credible compromise, for which the SNP has consistently made the case. This deal is dead in the water. It is now clear that there is not a majority for this deal or a no deal. The Prime Minister must go back to Brussels, extend article 50 and tell Brussels that we must remain in the single market and the customs union. Anything else will lead to economic chaos and crisis. Prime Minister, do the right thing and we will work with you. Stop the clock and go back to Brussels.
Finally, much of the right hon. Gentleman’s question was a complaint that Scotland was not specifically mentioned in these documents. Scotland is not specifically mentioned; Scotland is a part of the United Kingdom.
My right hon. Friend talks about being held in the backstop. First, the backstop is not necessarily what will happen because we want to ensure that the future relationship is in place before the backstop is necessary. Secondly, in the circumstance that a temporary interim period was needed before the future relationship came into place, we would be able to choose a preference between the backstop and the extension of the implementation period. There are pros and cons on both sides of the argument and there will be Members who believe that one is better than the other.
There is a mechanism for coming out of the protocol if the backstop is in place. My right hon. Friend is right: that mechanism does require mutual consent. It is for both sides to agree that—I make no bones about that. However, it enables the backstop to be replaced in a number of circumstances, first and crucially if the future relationship supersedes it. Originally, that was the only point at which it could be superseded; now, alternative arrangements could replace it. But I repeat what I have always said: it is my intention to work to ensure that such an arrangement is not necessary and we are able to go into our future relationship when we come out of the implementation period.
This House and every Member in it now has a clear choice. The House has been left in a position where the choice is subjection to the rules and laws of others who may not have our interests at heart. In terms of Northern Ireland and our precious Union, five who have resigned today have all talked about the threat to the integrity of the Union. I congratulate them on and praise them for what they have said and done, and their strong actions.
As has just been said, this is £39 billion for nothing. The choice is now clear: we stand up for the United Kingdom—the whole United Kingdom and the integrity of the United Kingdom—or we vote for a vassal state, with the break-up of the United Kingdom. That is the choice.
The right hon. Gentleman refers to the commitments I made in terms of Northern Ireland and the future relationship. Those commitments remain absolutely. We are looking to ensure that we have the frictionless trade across borders that will enable us to not only deliver on our commitment for Northern Ireland, but ensure that we have frictionless trade between the United Kingdom and the whole of the rest of the European Union. Many aspects of the deal that we have agreed actually ensure that we are preserving the integrity of the United Kingdom.
There has been significant focus on the question of the backstop. As I say, the backstop is something that neither side—neither the United Kingdom, nor the European Union—wishes ever to see being exercised. Indeed, as I have said, in circumstances where there needs to be a period before the future relationship is introduced, there are alternative routes that can be taken.
If the right hon. Gentleman says to me that he is concerned that we have not considered Northern Ireland throughout this process—
I agree with the Prime Minister that we face three choices: we accept this agreement, for which I respectfully suggest there is now no majority; we have no deal, which would be profoundly irresponsible and catastrophic for our country; or we have no Brexit and remain in the European Union—the best deal that we have with the European Union. On that basis, will she at least undertake today not to rule out taking this back to the British people and having a people’s vote?
I recognise my hon. Friend as one of the Members of this House who has campaigned on this issue probably since the day—maybe even since before—he came into this House. He has continued to campaign on this issue with a passion, and I recognise the concerns that he has expressed. As Prime Minister and as a Government, it is our duty to ensure that we put together a deal that not only respects the vote of the British people—it does, in the ways that I have said, and it also ends free movement—but does so in a way that protects jobs. That is why I believe it is important not only that we take back control in the areas mentioned, but that we maintain a good trading relationship with the European Union, as well as having good trading relationships elsewhere. That is in our economic interest and in our national interest, and that is what we will deliver.
What we are negotiating, alongside that withdrawal agreement, is not something that will be of a temporary nature, but what will be a future relationship with the European Union that will last for decades to come. In that future relationship, we will no longer be a member of the customs union. We will no longer be a member of the single market. An end to free movement will have been delivered. The integrity of the United Kingdom will have been maintained. The jurisdiction of the European Court of Justice in the United Kingdom will end, and we will come out of the common agricultural policy and the common fisheries policy. So I ask my hon. Friend to consider the nature of the future relationship that we will be delivering with the European Union, which does indeed deliver on the commitments I have made.
We back my right hon. Friend in trying to get the sovereignty she has argued for, and the prospects of prosperity, security and a fruitful partnership across the channel, the North sea and across the world.
The alternatives, if we do not go through with this, are the probability of crashing out and the possibility of a Government led by the Leader of the Opposition, neither of which is a desirable alternative.
May I ask the Prime Minister what the response has been from the business councils that she set up—those major employers in the country that will protect those jobs?
A number of quotes have come from industry about the deal. It has been said, for example, that
“it delivers a clear path ahead that business so desperately needs” .
The Federation of Small Businesses has said that it
“brings with it some certainty that our small businesses have craved.”
Businesses out there have been looking for the certainty that a deal will bring. They have also been concerned that we focus on that free trade area and on that frictionless trade across borders, which is, of course, exactly what the Government have done.
It is not the case that Northern Ireland will be indefinitely under the jurisdiction of the European Court of Justice. The future relationship that we are negotiating with the European Union will ensure that the United Kingdom is removed from the jurisdiction of the European Court of Justice. If the hon. and learned Lady looks at the proposed governance arrangements, she will see that we are very clear that the court of one party cannot determine matters in relation to another party.
“small and medium sized businesses would be worst affected”?
May I urge my right hon. Friend to study evidence given to the Northern Ireland Affairs Committee this week by customs experts, particularly their suggestions around facilitation and technical ways of achieving a soft border that does not require a backstop? Does she agree that the independent arbitration panel is bound to find that, if the EU does not negotiate the future arrangement with that in mind, it is likely to be found to have acted in bad faith?
May I just say that this is the first opportunity that I have had in this Chamber to say a heartfelt thank you to my hon. Friend for the work that he did for the commemorations of the armistice and the centenary of the first world war? He can be truly proud of all the events that took place.
My hon. Friend referenced the issue of alternative arrangements for the border in Northern Ireland. One change that has been made recently in relation to the backstop issue, which we got into the protocol in the joint statement, is precisely the ability to look at alternative arrangements rather than just at the binary choice of the future relationship coming into place or the backstop coming into place. We have, of course, got the extension of the implementation period as an option, but what is also important is that, if the future framework is not in place, it is possible to have alternative arrangements for the border that satisfy the requirement and the desire that we all have to ensure that there is no hard border between Northern Ireland and Ireland.
“Under no circumstances may the United Kingdom: apply to its customs territory a customs tariff which is lower than the Common Customs Tariff for any good or import from any third country”.
Does my right hon. Friend agree that that is a severe limitation on our sovereignty and will limit the opportunities that Brexit offers?
This is a matter of time now—time is of the essence. Whichever way we go after this, there are hundreds of statutory instruments that have to be taken and a lot of legislation that has to be in place to prevent chaos. Does it not make sense to have a vote in this House now, before the Prime Minister goes to the European Council? If she wins, she has the support of Parliament. If she loses, we have to take another tack.
“we have asked the Prime Minister for assurances that the establishment of a new fisheries agreement…does not imply that EU vessels will be guaranteed continued access to our waters in return for favourable trade terms.”
Can the Prime Minister give the federation that assurance? If she can, can she explain why it is not in the draft deal?
As the right hon. Gentleman will know, there are already some regulatory differences between Great Britain and Northern Ireland. There is a question in the future, which I know has raised a concern, as to whether there will be regulatory divergence between Great Britain and Northern Ireland. It is possible for us, and we will make unilateral commitments to Northern Ireland in relation to that issue—because we are talking about a temporary period—of no regulatory divergence. The checks and controls actually relate to the degree of regulatory divergence, so if there is no regulatory divergence, obviously, that has an impact on reducing the necessity for any checks and controls. Crucially, the EU wanted to say that it would determine whether a good that was produced in Birmingham could be sold in Belfast. We were very clear that the EU could not determine that in the future. It will be the UK Government who make those determinations.
My hon. Friend asks specifically about goods. We have expressly within the outline political declaration—we will flesh this out in the fuller future framework document—put as a key element, at the forefront of our thinking, the need to ensure we have a continuing good trading relationship, with seamless transfer of goods across borders.
The employment figures we saw earlier this week show that employment in this country is now at a record high. In recent years, including since the referendum, jobs have been created in this country.
“it delivers a clear path ahead that business so desperately needs”.
As I mentioned earlier, the FSB says it
“brings with it some certainty that our small businesses have craved.”
There are other quotes from business welcoming the fact that we have recognised the needs of manufacturing industry in putting forward our proposals for the future relationship.
“Before an Empire’s eyes
The traitor claims his price.
What need of further lies?
We are the sacrifice.”
Prime Minister, we will not be your sacrifice. We will not agree to give backstop control to the EU or to the Republic of Ireland over Northern Ireland—never.
“the parties should use their best endeavours to seek to facilitate trade between Great Britain and Northern Ireland.”
What assurance does that give this House about the integrity of the United Kingdom?
The Prime Minister says we risk no Brexit at all. Our NHS relies on EU workers and depends on EU research and medicines collaboration. How is this deal better for the NHS than no Brexit?
It was suggested this morning on Radio Scotland by the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), and later apparently confirmed by the hon. Member for Ochil and South Perthshire (Luke Graham), that the Conservative Members of this House from Scotland were given advance sight of the withdrawal agreement before other party leaders in this House and before the democratically elected devolved Administrations. I know my constituents would see that as disorderly and disrespectful, but I wonder, Mr Speaker, whether you could confirm, in terms of the rules of this House, whether that was disorderly and disrespectful?
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