PARLIAMENTARY DEBATE
European Union (Withdrawal) Bill - 13 June 2018 (Commons/Commons Chamber)
Debate Detail
Clause 19
Commencement and short title
Lords amendment 51, amendment (b) thereto, and Government motion to disagree.
Lords amendment 1, amendment (a) thereto, and Government motion to disagree and Government amendment (a) in lieu.
Lords amendment 2, amendment (a) thereto, and Government motion to disagree and Government amendment (b) in lieu.
Lords amendment 5, and Government motion to disagree.
Lords amendment 53, Government motion to disagree, and Government amendment (a) in lieu.
Lords amendment 4, and Government motion to disagree.
Lords amendment 3, motion to disagree, and amendments (c), (e) and (d) in lieu.
Lords amendment 24, Government motion to disagree, amendment (i) and Government amendment (ii) to Government amendment (a) in lieu, and Government amendments (a) and (b) in lieu.
Lords amendments 32, 6 to 9, 33 to 36, 38, 40 to 42, 159 to 161, 163, 164, 166 to 168 and 170.
The amendments in this group this afternoon, as with yesterday, cover a number of crucial issues, such as enhanced protection for EU-derived rights, environmental safeguards and the charter of fundamental rights. In many respects, that should not be controversial, and I will return to those issues later on.
Let me start with Lords amendments 1 and 2. These amendments, if upheld here, would require a Minister to lay before both Houses of Parliament a statement outlining the steps taken in the article 50 negotiations to negotiate our continued participation in a customs union with the EU. I do not suppose that it is the making of a statement that the Government object to; it is the negotiation of a customs union with the EU. In fact, so determined are the Government not to accept a customs union with the EU that they have gone to extraordinary lengths to dream up alternatives.
When the so-called partnership agreement and the so-called maximum facilitation options first saw the light of day last summer, nobody really took them seriously, not even the Brexit Secretary. Within two weeks, he was describing the customs partnership as blue-sky thinking. Thus, when the Prime Minister resurrected them in her Mansion House speech earlier this year, many of us, including myself, were genuinely surprised. Since then, it has become increasingly apparent that neither option is workable, that neither is acceptable to the EU and that neither will get majority support across this House. The Foreign Secretary calls the customs partnership “crazy”. The Business Secretary says that the maximum facilitation option would cost thousands of jobs in manufacturing. It is no wonder that a Cabinet peace summit is planned for July.
The proposal in Lords amendments 1 and 2 that the Government should seek to negotiate a customs union with the EU as part of the future arrangement is a sensible one for many reasons.
I was saying that the proposal in Lords amendments 1 and 2 that the Government should seek to negotiate a customs union with the EU as part of the future arrangements is a sensible one for many reasons. The first is the economy. Over a number of decades, our manufacturing model has adapted to the arrangements that we currently have with the EU, including the customs union. Thus, typically, we see, across the UK, thousands of manufacturing businesses that operate on the basis of a vital supply chain in goods and parts from across the EU. The car industry is an obvious example, but not the only one.
Such businesses operate on the basis of a just-in-time approach. Whereas years ago there were stockpiles of parts and so on, these days there is a just-in-time approach. Parts come in and are assembled, and the finished product then goes quickly and seamlessly across the UK and/or out to the EU. That is the manufacturing model that this country has operated for many years, and MPs across the House know that that is what goes on in their constituencies.
“If we do not have a customs union, there are sectors of manufacturing society in the UK which risk becoming extinct... Be in no doubt, that is the reality.”
This is at the heart of the debate. If we destroy the manufacturing model that I just described, we destroy a vital part of the economy and job losses will be considerable. That is why there are such high levels of concern across the business community about the Government’s current approach.
The concern about the customs union is not confined to the business community. It inevitably extends to trade unions, on behalf of those they represent; those who depend on the manufacturing sector; and those who work in and operate our ports and places of entry and exit. I have visited Dover to look at the operation there and to talk through with management and staff the impact of any change to the current customs arrangements. I have also visited Holyhead, the second biggest port, where there are high levels of concern.
I realise that all sorts of fanciful promises about new customs arrangements were made during the referendum and have been made since, but we have a duty to protect our economy, jobs and the manufacturing sector across the UK. That is at the heart of today’s debate. The only way to uphold that duty is to negotiate a customs union with the EU.
There is, of course, another important aspect. In December last year, our Government made a solemn promise in the phase 1 agreement: no hard border in Northern Ireland. And that was spelt out—no infrastructure, no checks and no controls. Now, in all the to-ing and fro-ing yesterday, what may have been missed is that one amendment that went through, without any dissent from the Opposition, was a Government amendment to Lords amendment 25 for that obligation to be legally binding in UK law. That is a very significant amendment; after the political commitment in December to no hard border, no infrastructure, no checks and no controls, we now have a binding law to that effect. This goes to the issue of maximum facilitation, because if maximum facilitation does involve infrastructure, checks or controls, it would be unlawful under the provision passed yesterday. Therefore, it cannot happen.
To finish my point about Northern Ireland, I think that the conclusion of the vast majority of people who have considered this in great depth and with concern is that there is no way of delivering on the solemn promise that there should be no hard border in Northern Ireland unless the UK is in a customs union with the EU and there is a high level of single market alignment. The so-called backstop argument that has been going on in recent weeks is testament to that, because the Government are trying to find a post-implementation period phase when in truth we will be in a customs union and in high-level regulatory alignment with the single market. For our economy, and to enable us to keep our solemn commitments on Northern Ireland, I urge hon. and right hon. Members to vote to uphold Lords amendments 1 and 2.
I now turn to the EEA and amendment (a) to Lords amendment 51, which is in my name and those of other shadow Front Benchers. I understand why their lordships have become so concerned about the state of negotiations that they want an amendment to cover the single market. The Prime Minister’s red lines of October 2016 were a profound mistake. If we are to keep to our duty of protecting our economy, including the manufacturing sector and the services sector, and our solemn promise in relation to Northern Ireland, we need a customs union with the EU, and we also need a strong single market deal based on shared regulations and institutions.
The EEA has a number of real benefits with regard to shared regulations and shared institutions, but it also presents real challenges. I have taken this option very seriously. I went to Norway to discuss it with that country’s political leaders, trade unions and businesses, and I also visited an EEA border—the Norway-Sweden border—to see what it was like.
The EEA undoubtedly works well for Norway, Iceland and Liechtenstein, but their economies are very different from ours, as is their size—Norway has 5 million people, Iceland has 300,000 and Liechtenstein has 37,000. Those countries chose not to be in a customs union with the EU. The European Free Trade Association is, after all, a free trade association, and those countries have struck trade deals in their own right as a group. I am sure that those trade deals work well for them, but I think that the 37 trade deals that the EU has struck work better for the UK than the EFTA trade deals would.
The EEA excludes agriculture and fisheries, which presents a problem in relation to the solemn commitment to no hard border in Northern Ireland. When I went to the border between Sweden and Norway, there was infrastructure, checks and controls—not for people, but for goods. The EEA also provides very little flexibility on the four freedoms, including freedom of movement and the way in which single market rules are implemented. Some say that those challenges can be overcome. I will continue to listen to those arguments, because there is no doubt that, in addition to a customs union with the EU, we need a strong single market deal, but I do not think we can ignore those challenges.
Our amendment (a) puts forward a strong single market proposition—[Interruption.]
Our amendment is a strong single market proposition. It sets out the kind of new relationship we want to achieve with the EU—a close economic relationship, with full access, while ensuring there is no lowering of common standards and protection, and recognising that shared institutions are required to achieve that. It is a million miles away from the Government’s position on the single market. It does not set a narrow route; it sets the parameters of the new single market relationship we want to achieve, and it leaves options open to achieve that. I urge all Members on both sides of the House to support it.
Let me turn to the question of human rights and other protections. Lords amendment 4 sets out enhanced protections for employment, equality, health and safety, consumer standards, and environmental rights and standards. The argument is very simple; it was very simple at the start and it is very simple now. At the moment, these rights have enhanced status because we are members of the EU. They are being converted into our law—the Government said they would convert them and they are converting them; I will come on to the charter of fundamental rights in a minute—but not with any enhanced protection. All the amendment says is that if those rights and protections are to be changed, that should be done by primary legislation.
The amendment is not contentious, and it does not even say that the Government cannot change those rights. It just says that if they believe in these rights and think they should have enhanced protection, they should for heavens’ sake put them into a form that means that if they want to change them, they have to use primary legislation to do so. The only reason I can think of for resisting that is that somebody thinks it might be a good idea to chip away at these rights without doing so through primary legislation.
There is good reason to be concerned. I know these are old examples, but they are real ones. The Foreign Secretary has complained of “back-breaking” EU workers’ rights, and the Secretary of State for Environment, Food and Rural Affairs has claimed that the Government should
“have the potential to...if necessary rescind”
employment protections after Brexit. Such examples give Opposition Members, trade unions and working people across the country huge cause for concern that, in the absence of enhanced protection, these rights will be vulnerable.
I now turn the charter of fundamental rights. Through the Bill, thousands of EU provisions are being converted into our law—only one is not being converted. All the others can be converted, changed, modified or brought into our law in some shape or form, but the charter apparently cannot be converted, and that is wrong in principle.
The charter has enabled the evolution of important rights, adding significantly to the fields of equality and non-discrimination, especially lesbian, gay, bisexual and transgender rights, and the rights of children, workers and the elderly. As Liberty, Amnesty International and the Equality and Human Rights Commission have argued, excluding the charter from the Bill
“will lead to a significant weakening of the current system of human rights protection in the UK”.
Human rights develop over time. This country and the House have played long and distinguished roles in that development. Brexit should not be used to end that tradition or to reduce our human rights protection in the UK. We therefore call on right hon. and hon. Members across the House to vote for Lords amendments 4 and 11.
I shall now come on, briefly, to the environmental provisions. Lords amendment 3 seeks to maintain environmental principles and standards as we leave the EU. The amendment has our full support. The EU’s environmental principles are hard-wired into the treaties, and they underpin all its environmental policies and laws, which are then enforced by EU institutions and agencies. These environmental principles and the enforcement mechanisms that uphold them must be retained and replaced if Brexit is not to weaken protection for our natural environment.
I know that amendment (c) in lieu, tabled by the right hon. Member for West Dorset (Sir Oliver Letwin), is designed to address some of those concerns. If it is supported by the Government—I assume it will be—it will introduce some helpful developments in the Government’s policy, including proposals to enable the watchdog to initiate legal proceedings. However, it does not go far enough, so we urge Members to support Lords amendment 3.
I turn finally to the question of refugee family reunion. I am pleased that Lords amendment 24 is before us, and I pay tribute to Lord Dubs for his tireless campaign on this issue. Labour supports Lords amendment 24, which is long overdue. We recognise that some concern has been raised about the scope of family reunion that qualifies under the Government’s clause, and I would welcome any clarification from the Minister on that issue. However, in general, Labour will support the amendment.
In conclusion, the Lords amendments address crucial issues. Along with Labour’s single market amendment, they would be a huge step forward in improving the Bill and protecting jobs and rights. I hope that right hon. and hon. Members will support them today.
May I first echo the opening remarks made yesterday by my right hon. Friend the Secretary of State, who talked about the important role of the other place as a revising Chamber? There is no doubt that in some instances the other place has made some constructive improvements to the Bill, which the Government have every reason to support. However, on other matters, which were debated at length and agreed to by this elected House, the other place chose to ignore decisions that were taken here. Instead, we have a set of amendments that, I am afraid, are not properly thought through and would have a negative impact on our plan for a smooth and orderly exit.
We heard from the right hon. and learned Member for Holborn and St Pancras that the Opposition do not accept Lords amendment 51, which seeks to make continued participation in the EEA a negotiating objective for the Government. Well, we are sure about his position, but we are not so sure about that of certain other Opposition Members. However, on this issue, we are certainly in broad agreement.
This country is party to the EEA agreement by virtue of its membership of the EU. After the implementation period ends, that agreement will no longer apply to the UK. Seeking to participate in the EEA agreement beyond that period does not pass our test—that our future partnership with the EU must respect the referendum result. It does not deliver the control over our laws, and indeed other aspects of our domestic policy, that we seek. On borders, it would mean that we would have to continue to accept all four freedoms of the single market, including the free movement of people.
I made that point during the long debates in the referendum campaign. As a dedicated and fervent remainer, I said that when we leave the EU, it means we leave the whole shebang—there is no cherry-picking when it comes to not only the attitude of the UK but, importantly, the position of our negotiating partners.
As my right hon. Friend knows, the White Paper published some months ago sets out the options the British Government have been looking at. Option 1 is the proposed new customs partnership, and option 2 is the streamlined customs arrangement. Currently, two ministerial groups are taking forward work on those models. We accept that the precise form of any new customs arrangements will of course have to be the subject of negotiation.
The shadow Secretary of State dealt with the question of Northern Ireland in some detail. We of course recognise the unique circumstances that apply to the border with the Republic of Ireland, and we have been consistent in our commitment to avoid a hard border. We believe that our joint report commitments can be fulfilled through the overall UK-EU future partnership, but it is necessary to ensure there is a backstop solution for the Northern Ireland border that avoids a hard border and protects the constitutional integrity of the UK internal market. No Prime Minister could ever sign up to the solution for Northern Ireland and Ireland that, I am afraid, the Commission has set out, because it threatens the constitutional and economic integrity of our United Kingdom. We are Unionists and we are proud to be so.
I want to deal with the issue of Liechtenstein and other countries. Liechtenstein has, of course, negotiated an immigration quota system, but it is a country of only 37,000 people. It is probably less than half the size of most of our constituencies. I do not see a permanent exemption on free movement being afforded to a country of the size of the United Kingdom, and that is why the intervention from the right hon. Member for Don Valley (Caroline Flint) was so important. For all those reasons, we cannot accept amendment (a) or the original Lords amendment on the EEA.
“To provide UK business with guarantees of full and equal access to the single market without equal acceptance of EU regulatory structures would require not so much a skilled negotiating team as a fairy godmother specialised in trade law.”
Is that not the truth? Is it not the truth that the EEA exists, whereas the Solicitor General’s negotiating stance and wish list do not and will not?
On the customs union, I want to reiterate the commitment given by my right hon. Friend the Leader of the House last week that the Trade Bill and the Taxation (Cross-border Trade) Bill will be brought back to the House by mid-July at the latest, which will give all right hon. and hon. Members the opportunity to have the debate that I know they are itching to have on these important issues. I am sure that they will therefore forgive me if I move on to deal with the other important points the amendments raise.
I want to deal with amendment (c) in lieu of Lords amendment 3, which was tabled by my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) and which we support, as I think I have already indicated to him. It enjoys support from many corners of the House, and I would commend it as a clear commitment to what is after all the Government’s policy. It respects the position their lordships took about the need for a report, and we urge the House to vote for it.
I want to deal with the charter of fundamental rights, which was mentioned by the right hon. and learned Member for Holborn and St Pancras. We continue to strongly believe that it would not be right to retain rights of action based on incompatibility with the charter or the general principles of EU law after we have left. To keep these in our domestic law, as Lords amendments 5 and 53 seek, would undermine two crucial principles. First, it is not consistent with the proper restoration of parliamentary sovereignty if legislation, including primary legislation, can continue to be disapplied or quashed by the courts on the basis of elements of the EU legal system intrinsically linked to our membership and obligations.
I will deal right away with the comparison made with the Bill’s treatment of the principle of the supremacy of EU law. It is not a comparison that I accept. I would draw a clear distinction between the need to maintain, in a strictly limited sense, a rule that has been central to the hierarchy and interpretation of our statute book for over 40 years and the charter itself.
The latter document came into effect in 2009. It was expressly intended only to reaffirm rights that exist elsewhere, as protocol 30—signed up to by the United Kingdom and Poland—made clear. Suddenly to remove the principle of supremacy would have significant and unintended consequences and would be likely to result in a confused and incoherent statute book. It would merely introduce more uncertainty to the law’s meaning and effect.
As I was saying, the charter is really a catalogue of rights, rather than something that is integral to the way in which the entire legal system functions. Those very points were made with considerable eloquence and persuasive force by many experienced and expert peers, not least a number of former Law Lords. I cannot put it better than Lord Brown of Eaton-under-Heywood, a former Justice of the Supreme Court, who strongly opposed what he called both the “constitutional incongruity” of keeping the charter when we leave the EU and the “striking vagueness” of many of its articles. Lord Brown argued that, if the amendment were passed,
“certainty and clarity…would be very far from advanced. This would be wonderful for the lawyers, but frankly, for few others.”—[Official Report, House of Lords, 23 April 2018; Vol. 790, c. 1350.]
I entirely agree.
Those arguments were echoed by a considerable number of other Members of the other place from all sides, including Lord Hope of Craighead, Lord Faulks, Lord Howarth of Newport—from the Labour Benches—Lord Judge, the former Lord Chief Justice, Baroness Deech and, of course, the former Lord Chancellor, Lord Mackay of Clashfern. Lord Mackay said:
“once we are out of the EU, surely the fundamental part of our constitution should be respected—that is, that the courts of Westminster Hall, as they were, and the courts of justice of our land have no jurisdiction to set aside Acts of Parliament.”—[Official Report, House of Lords, 23 April 2018; Vol. 790, c. 1361.]
I wish that I could replicate Lord Mackay’s wonderful Scottish brogue, but I dare not do so in the presence of true Scots.
I was disappointed that the Lords were not even willing to consider our own significant amendment in respect of the general principles, which I will come on to. I understand fully the concerns that have been raised about the protection of rights. It is, of course, vital that as we leave the EU, we do not see any dilution of domestic protections for our rights and liberties. I do not, however, accept that these amendments are necessary to the realising of that aim.
The charter did not create any more rights. It reaffirmed the rights that were already recognised in EU law—the law being retained in the UK under the Bill. The charter applies to EU institutions and member states only when they are acting within the scope of EU law. It is not—I repeat, not—as broad a body of law as the European convention on human rights and should not be compared to it.
“goes further than domestic laws and provides for specific measures to ensure the ‘independence, social and occupational integration and participation’ of disabled people in community life.”
That provision is stronger than domestic law. How will the Government ensure that it is protected?
I am concerned that some people—including no less than the former Attorney General, Lord Goldsmith—seem almost to be contradicting themselves 10 years on. Lord Goldsmith, who was the Attorney General, made his position absolutely clear to Parliament:
“The United Kingdom’s position, like my position, has always been that the charter affirms existing rights, it does not create any new justiciable rights in any member state and does not extend the power of the courts.”—[Official Report, House of Lords, 9 June 2008; Vol. 702, c. 427.]
It was not the noble Lord but, I think, the right hon. Member for Leicester East (Keith Vaz) who described the charter as having no more significance than a copy of The Beano. I simply ask: what has changed? For that reason, I do not accept that the rights contained in the charter will add anything to the rights of individuals in our country. Equally, I do not accept that rights saved by the Bill will not be justiciable if general principles challenges are excluded. Other sources of rights will continue to exist and operate in UK law.
None the less, we have listened to the concerns that have been raised, particularly in relation to accrued rights. We want to get the balance right. When we last debated the matter here, I agreed to a change that delayed the prohibition of certain rights of challenge on general principles grounds, when the cause of action arose before exit day, for three months after exit. This week, we tabled an amendment in lieu that goes considerably further. It delays that prohibition for three years, subject, of course, to the normal statutory limitation periods, which will continue to apply.
It is the Government’s ambition to leave our environment in a better state than that in which we found it. That is what we owe to our children and our grandchildren, and that is why the Prime Minister said in January:
“We will use the opportunity Brexit provides to strengthen and enhance our environmental protections—not to weaken them”.
On 10 May, my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs launched a consultation on the development of a new independent statutory body to safeguard the environment alongside approaches to embed EU environmental principles in our own domestic law. However, the Government have listened to concerns raised in both Houses that certainty is required more quickly, and we recognise the intentions behind the amendments tabled.
My right hon. Friend the Secretary of State announced that we will bring forward an environmental principles and governance Bill in draft form in autumn of this year to deliver those proposals, with the introduction of a Bill early in the second Session of this Parliament. For this reason we warmly welcome the amendment tabled by my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) in lieu of the amendment tabled by Lord Krebs. Despite the good intentions behind Lords amendment 3, we cannot accept it. It would create legal uncertainty; it does not take into account that a significant proportion of environmental legislation and policy is devolved.
That is one of the issues I wanted to address directly to the hon. Member for Brighton, Pavilion (Caroline Lucas). As we have seen today, we have already had a number of tensions about devolution, and the Government therefore tread very carefully in the field of domestic law before expanding too widely upon policy areas that are rightly the province of Edinburgh, of Cardiff and indeed, when the Assembly sits, of Stormont.
Lords amendment 3 would create a risk-averse approach to the design of better and more effective environmental standards. For example, it would require the Government to extend the scope to all public authorities—the hon. Lady’s point. That goes much further than the European Commission, which can take action only against a member state, not individual public authorities within that state. The Government therefore have instead proposed that the body should focus on national Government, to retain that focus on the most significant national issues. The requirement of a direct duty in Lords amendment 3 to apply those environment principles listed in the amendment across a wide range of Government activities goes far beyond the way it works at EU level currently. Such a far-reaching duty does not exist anywhere in EU law, so instead of replicating and bringing down those principles, we are in danger of creating some intended consequences that would cause concern to Members across this House. However, we recognise that an early reassurance of our intentions is needed, and we therefore move to support the amendment in lieu.
The amendment in lieu provides further reassurance for the House and sets out that the Government will publish draft legislation no later than six months after Royal Assent to this Bill.
I call Mary Creagh.
The Solicitor General also mentioned the issue of fines. At present the Government are taking action on air pollution only because of the threat of fines from the European Court of Justice. What remedy will citizens in this country have if the Government pollute with waste and water pollution after we leave the EU?
May I now deal with the issue of the protections?
This amendment will deliver robust protections. In particular, it acknowledges that there may be circumstances where the new environmental body should be able to take the Government to court; this is the important enforceability point. That power will be proportionate and appropriate, and used only as a provision of last resort, supplementing established processes including parliamentary scrutiny.
The amendment also requires that the Government list the environmental principles, such as the “polluter pays” principle and the precautionary principle, in the proposed draft Bill. The draft Bill and forthcoming policy statement will provide further details of how these principles will be interpreted and how they will apply. It will also set out that the principles should have an effect in the UK after we leave the EU that is equivalent to that before we leave. It will ensure that their primary focus will be on the formation of policy at a national level. In addition, the statutory policy statement will set out how, as at EU level now, the environmental principles will be considered in the context of the Government’s wider policy objectives. That includes the applicability of the principle of proportionality.
A policy statement will be presented here in Parliament for scrutiny before it comes into effect. As at EU level, the principles will also be considered in the context of wider objectives to ensure balanced decision making, meaning that Ministers of the Crown will also be required to give proper consideration to other important policy objectives, such as delivering a thriving economy and building the homes that people need, when making decisions. I thank my right hon. Friend the Member for West Dorset for tabling his amendment, and I urge hon. Members to support it.
I want to move on to the important issue of refugees—
The Government recognise and share the strength of feeling in this House and beyond on the important matters of asylum and refugees, not least in relation to unaccompanied asylum-seeking children. I should be clear that what we are discussing here is the situation concerning asylum seekers—that is, people who have made an application for international protection and have not yet had their claim decided. That is entirely distinct from the equally important issue of refugees: people who have had their claims considered and been found to be in need of protection.
We as a country can be proud of the role that we have played in supporting children affected by the migration crisis. Since the start of 2010, we have granted more than 51,000 children resettlement, refugee status or alternative forms of protection. Our resettlement schemes have provided protection to more than 6,500 children. These are among the most vulnerable refugees, who the Government, with the UNHCR, have brought directly to the UK from conflict regions, together with their family members, so that they do not have to make appalling, perilous journeys to Europe, often in the hands of traffickers or smugglers.
In addition to providing protection through those schemes, we have taken a leading role in international efforts to address the root causes of the global crisis with our £2.46 billion of humanitarian aid in response to the Syrian conflict. We have also pledged £30 million to the Education Cannot Wait fund, to deliver better education to more than 4.5 million children in crisis regions. Leaving the EU will not change our international obligations under the UN convention on refugees and the European convention on human rights. We are absolutely clear that our co-operation with our EU partners on the important issue of asylum will be critical in order to ensure that those in need of international protection are able to access it effectively.
Before I address the substance of the amendment, I must remind hon. Members that we are dealing with the arrangements for negotiating a reciprocal agreement, so nothing in the Bill will directly confer leave to enter or remain in the UK. It is the basis on which we will enter negotiations with the EU, and nothing can be achieved unless and until we reach an agreement. It is the terms of the agreement itself, and if necessary its implementing legislation here, that will dictate who shall enter the UK and on what terms.
I want to place it clearly on record that this Government will seek a new reciprocal agreement with the EU to allow unaccompanied asylum-seeking children present in an EU member state to join close family members here in the UK, and vice versa, where it is in their best interests to do so. Any such agreement will be to allow an unaccompanied asylum-seeking child to reside with family members while their claim is being considered. That will not automatically confer long-term status here, or mean that that person will be granted refugee status. As with all claims, the UK will examine those claims in line with our international obligations and domestic rules and legislation—the due process that is such an important element of this.
Turning to Lords amendment 24, I know that Lord Dubs tabled this amendment with the very best of intentions, and I share the tributes that have been paid to him. However, we wish to ensure that the clause is phrased in such a way as to best enable the Government to deliver the intended outcome. We have a number of issues with the current drafting of the amendment, which is why we have proposed alternative wording.
Secondly, even if the Dublin regulation were not undergoing significant renegotiation, there is no capability within Dublin’s article 8 mechanism—which covers family connections—for it to be applied in isolation to a third country, as will be the UK’s status when we leave the EU. While the EFTA states do participate in the regulation, they do so in its entirety, rather than in the partial manner envisaged by the noble Lord’s amendment. When we leave the EU, it will be more sensible and far more effective to have a new relationship that deals specifically with these issues. It is no good trying to shoehorn us into the existing system.
Finally, the amendment as drafted implies that the UK Government must take further actions in addition to negotiation with the EU, but it does not specify what these actions are. This House has a responsibility to pass legislation that is clear and unambiguous. We need to avoid costly litigation wherever possible and provide maximum legal certainty. I go on about legal certainty a lot, Mr Speaker, but as a Law Officer, I believe that it is very much at the heart of our constitutional obligations, and I make no apology for that.
For these reasons, the Government have tabled their amendment in lieu. We have listened to concerns in the other place, and we do not disagree with the substance of Lord Dubs’s amendment. Indeed, we have provided assurances in this House and in the other place that it will be our priority in the negotiations to safeguard the rights of unaccompanied asylum-seeking children, and I am pleased to confirm that we will accept amendment (ii) to Lords amendment 24, tabled by the right hon. Member for Normanton, Pontefract and Castleford, the Chair of the Home Affairs Committee.
Moving on to Lords amendment 4, one of the key principles of the Lancaster House speech and, indeed, the Government’s manifesto was to maintain and enhance workers’ rights—[Interruption.] I have been more than generous in giving way. I pride myself on giving way to Members from whichever corner of the House they may come, and I am sorry if hon. Members feel that I am being ungenerous, but I must respect time, too. That is why I want to press on.
The Bill deals in many places with the status of retained EU law, but much of our debate has turned on how that retained EU law is amended once we have left the EU, hence the core of the concerns about Lords amendment 4. The Government and Opposition are more united than divided here. We both clearly want to maintain the protections and rights that are established in EU law. Our amendments in the Lords have done this for EU regulations and for all the directly effective rights established in the treaties by making them akin to primary legislation—the highest protection we can possibly give in the UK system.
We are committed to proper scrutiny and engagement with Parliament and the public on our corrections to EU law and future changes. In addition to all the changes we have already made to the Bill, there will be a presumption in favour of engagement or consultation where it is proportionate and sensible to do so. Of course, Departments will consult where there is a statutory duty to do so. Departments across Whitehall have already undertaken engagement or consultation with stakeholders for active discussions on areas where that has been proportionate and sensible, and that will only increase.
Most of those who have supported Lords amendment 4 are well intentioned, but some must have known that it would have hugely detrimental effects on how we could deliver a functioning statute book ahead of our exit and in the future. Instead of protecting the law in the crucial areas of employment, equality, health, consumer standards and environmental protection, it would weaken it. By calling this amendment “enhanced protection”, some are seeking to hide a great danger.
By limiting the changes that delegated powers could make to retained EU law relating to the specified policy areas to only those that are deemed technical, the amendment would fundamentally limit our ability to properly correct deficiencies. That risks dramatically increasing the amount of primary legislation that needs to be enacted ahead of our exit, putting more pressure on this place ahead of Brexit. Even the changes deemed to be “technical” enough to be achieved through delegated powers would still face a lengthy enhanced scrutiny process, which the Lords could force to be as long as the 18 months required for legislative and regulatory reform orders. In other words, our statute book could not be made ready for exit by 29 March 2019.
That is not a way of avoiding the procedures of the House; it is about making the law clear, certain and usable to protect all the different categories that we are dealing with. I am worried that we would be kneecapped, not just as a Government, but as a Parliament. There is a lot of work to be done ahead of Brexit, and we need to concentrate on what is fundamental and what will involve change. Lords amendment 4 fundamentally affects how we can do that, so we must oppose it.
My right hon. Friend the Secretary of State for Exiting the European Union left the House in no doubt yesterday of the importance of this legislation. The Government listened in the other place and showed flexibility by tabling amendments that genuinely improved the Bill, but we rightly held firm on those areas where amendments proposed would have an adverse effect. I am somewhat downhearted that the House of Lords has not shown the same level of respect that we show to them and has sought to overturn decisions taken here on important issues relating to the protection of rights. I therefore ask the House to stand behind the Government tonight in ensuring that this legislation is fit for purpose, respects the referendum result, and respects the constitutional role of this House.
I have heard from Government Members that this is just procedural, that we should just roll over and that we should not have a voice in this particular debate. Well, that is not what we are here for. Even if we just left this to the Government, they are not making much of a job of persuading even their own MPs.
We have to be here to represent our constituents, and the hon. Member for North East Fife (Stephen Gethins) will be as disappointed as I am that the Scottish National party had five questions at Prime Minister’s questions today that, incidentally, went to Government Members, because SNP Members had walked out and were not here to ask them.
I remind the hon. Member for Edinburgh South (Ian Murray) that, in 1987, Scottish Labour Members marched out of this Chamber because they did not think the Government were taking Scotland’s interests seriously. It is remarkable: the Government have not changed in their attitude, but the Labour party certainly has. That is why there are so many fewer Labour MPs.
We are in this situation now because two years—two years!—have passed since the EU referendum, but we still do not know what leave looks like. We still cannot get agreement from Government Members. I know that we are to blame the Prime Minister for all this, but I will briefly say something kind about her. Regardless of her failings, those who spent years arguing for leave have had their entire political careers to prepare for this moment, yet they did not lay the groundwork, which has led us into the mess that not just this place and the devolution settlement have been left in, but our economy has been left in, according to the Government’s own analysis.
From the very start—from before the 2015 general election—this has been nothing but an exercise in Conservative party management, and not a terribly successful one at that, yet we all pay the price. Farmers do not know whether they should plant their crops for next year—indeed, the National Farmers Union of Scotland has called for the UK to remain in the customs union. Young people do not know whether they will have the same opportunities that we had, with uncertainty about programmes such as Erasmus. Researchers do not know the kind of collaboration they will be able to rely on, but we all benefit from such collaboration.
Just this week I opened a conference at the University of St Andrews, where Professor Stephen Gillespie, Dr Wilber Sabiiti and Dr Derek Sloan are at the forefront of the international fight against tuberculosis—the conference was held using EU funding. We know that Brexit will be economically devastating—the Treasury has told us that. The Scottish Government have shown that every single Brexit scenario makes us worse off. The Fraser of Allander Institute has also reflected that Scotland is set to lose £8 billion over the rest of the decade.
Before we get catcalls from Government Members, I should say that FAI director Professor Graeme Roy says that the rest of the UK could be even harder hit. That is not something that we or others want to see. That means less cash for public services, and the situation is made worse by the Government’s other policies on immigration, with 2,500 doctors refused visas in the first five months of this year. It is a hostile environment. That is why the Lord Dubs amendment—it is being debated today—on the rights of unaccompanied minors and child refugees, the most vulnerable in society, is so important.
Scotland voted to remain, and we know that every Brexit scenario is damaging. That is why the Scottish Government proposed the compromise—the least worst option—of staying in the single market and the customs union. Last night, we had 19 minutes to discuss devolution in the context of legislation that will have the biggest impact on the devolution process since its establishment. That smacks of a lack of respect.
The 2017 general election gave all Members an opportunity. When the Prime Minister asked UK voters for their views on Brexit, they returned a hung Parliament. Only the SNP—and the Democratic Unionist party, to be fair—was returned in a majority of the seats in which we stood. But there should be an opportunity to reach out. Some of the SNP’s best policy achievements came during a period of minority Government between 2007 to 2011, when Scottish Government Ministers were required to work constructively with other parties and needed other parties to work constructively with them. No one got everything they wanted in that particular set of circumstances—I know that the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) was in that Parliament—but that is something that we can all learn from. [Interruption.] I hear chuntering from Government Members saying that we lost. Actually, the SNP gained an unprecedented majority having pursued those particular policies.
There has been a particular impact on Ireland—[Interruption.] Government Members would do well to listen to this. The Good Friday agreement has been undermined by Government Members, and right now, we should be listening to Ireland. The best friends anyone can have are honest and we all rely on critical friends. Frankly, right now the UK has no better friend than Ireland. In fact, the UK has benefited from Ireland being a full member state of the EU, as it would if Scotland were a full member state. I have heard so much about how canny the Commission is and how we cannot trust its negotiating position. No one is trying to pull the wool over Brexiteers’ eyes; it is just that they have come up against the brick wall of hard reality, and that is clear two years on.
All this comes at a time when politics in this place, as has been demonstrated today, could not be poorer. Notwithstanding some fine individuals whom I respect on both sides of the House, we have the most ineffective and incompetent Government in living memory, and they are let off the hook only because they are shadowed by the most ineffective Opposition most of us have ever known, and hopefully will ever know. We want Labour Members to be doing better and we rely on them to be doing better, but at just the time when we need an effective Opposition and Government, we have neither. Given the devastating impact that leaving the EU is having on jobs, the economy and those who have made the UK their home, the UK is on the cusp of becoming a failed state that does not represent its constituent parts and, for the first time ever, leaves the following generation worse off than the ones that came before it. One way or another, there is a better way to do this.
I come to the issue that we are currently addressing most vigorously, although there are many, many more to come: our future trading and economic arrangements with the rest of Europe and the world. My views are well known, and I set them out in Committee. I wish to see absolutely no new barriers to trade and investment erected between ourselves and the rest of continental Europe. I do not think such barriers are necessary to fulfil Brexit. I certainly do not go along with some of the more extreme advocates, who seem to be positively relishing the idea that we should erect new barriers of all kinds between ourselves and 27 nation states on the continent, while having the most open and exotic free trade approach to the rest of the world, reducing barriers of every kind to other trading nations. In today’s globalised world and rule-based order, free trade is particularly essential to the British, and we have to minimise the damage that might otherwise be caused when we implement Brexit.
Let me deal briefly with the argument that is bound to be raised by some—“the moment you mention this, you are defying the referendum.” Again, I shall not repeat what I said yesterday, but I do not think the referendum remotely addressed the important subjects we are debating today; it was a yes/no question on a very broad-brush issue. I took part in a lot of debates up and down the country, doing one or two against Dan Hannan MEP, whom I know well. He is a difficult man to debate against. In my opinion, he is one of the most articulate and informed of the Brexiteer campaigners. I disagreed with him, but I got the clear impression that Dan Hannan was not against the single market and the customs union—that was not his view at all. None of that came through in the debate.
Unfortunately, the national media reporting of the referendum debate was pretty pathetic; it was all about Turks and how much money was going to go to the health service and so on. All this argument about trading arrangements was brought to a head only after the referendum, when the Prime Minister was induced by her then special adviser, Mr Timothy, to give the unfortunate speech at Lancaster House. Suddenly, new red lines were introduced: we were leaving the single market, leaving the customs union and rejecting the jurisdiction of the European Court of Justice. I will not go further on that, as I made the same point yesterday.
I do not remember any ordinary member of the public asking me anything during the campaign about the customs union and the single market. To this day, when I go to my constituency nobody is quizzing me about the customs union and the single market. Nobody is following these debates, except when there is reference to the fact that if we get this wrong, we could do immense damage to the livelihood and wellbeing of very many people. If we do get it wrong and unintentionally create borders to trade, we will make the prospects for future generations even more difficult. In this debate we have heard great vehemence about the customs union and “the single market” and how appalling they are, but the arguments used against them are very narrow.
The Prime Minister has been absolutely consistent for months. She does not say, “Oh, we’re against the single market”—and not surprisingly, because it was the Thatcher Government who created the whole institution in the first place. Although the Prime Minister is not a Thatcherite entirely, on economic policy she and I both believe in open, free markets. There is nothing undesirable about the single market arrangement, except that it allows the freedom of movement of labour. That is the only objection to it that most Conservative Brexiteers ever raised, unless they are of the hard-line head-banging variety, who go much further than that. That is the only objection that they have.
Let us address freedom of movement. Personally, I do not have any hang-ups about freedom of movement—people coming to work here, contribute to the economy, provide skills that we do not have or do unskilled work that British people will not do—but it could be tightened up. People should not come here for benefits and so on, or hang around if they have lost their job. I am sure that we could start to negotiate on the basis of tightening that up.
Similarly, on trade deals with the rest of the world, if anybody can devise a method of trading with other countries on our own that is consistent with a sensible customs arrangement and better than the deals that we have now used very successfully for a long time—with our being the leading nation pushing for EU deals with the rest of the world—that is fine, but let us not accidentally drift into a position in which we are making absurd demands of the EU that mean our leaving not only the customs union and single market, but losing all the advantages that particularly the best and most competitive sectors of our economy have by way of their existing access to the European market.
Some people seem to think that we can have an altogether different and better type of trade deal with other parts of the world. Quite irrelevant statistics are misused to make the case, such as that growth is faster in the rest of the world than it is in Europe. It is an underlying truth that growth in emerging and developing markets, which was very poor until we got going with the rules-based order in the 1990s, is faster than that of developed countries such as our own, and it is always going to be faster. There is also the argument that there is more of the outside world than there is of Europe. That is indeed the case, but for the past 20 years in particular, the United Kingdom has been the most influential player in the European Union in insisting on the steady attempt to negotiate trade deals with the world in general, and the numbers keep growing.
On the British Government’s behalf, I was involved on the fringes of the constant efforts to get an EU deal with the US—the so-called Transatlantic Trade and Investment Partnership. It did not fail because there was something wicked about the EU; the fact is that, unfortunately, protectionist influences in America are very strong, and were even under the Obama Administration. One cannot get any response. I have been involved in all these things—I have talked about trading openings with India and Brazil, which are of course where the population is. It is absolutely absurd to think that there are no protectionist pressures in India and Brazil and that it is simply a question of our present Foreign Secretary walking in, with his bonhomie, and saying, “You will of course now throw your markets open to us”.
It is also absurd to argue that somehow this approach will produce deals with less damage to our sovereignty and fewer constraints. I do not understand those arguments. What is the nature of a treaty embodying a trade deal—or any other treaty, come to that? Both sides agree mutually binding obligations. They agree on tariffs, and remove them where they can. But what is far more important in trade with developed countries, such as the US—I personally think that the few tariffs left there could be abolished both ways with no disadvantage—is talking about regulatory alignment.
In the EU, we have achieved regulatory harmonisation. What one wants is mutual recognition. We agree to say, “We will abide by arrangements on regulatory standards, on which we both agree, and we, the British, will not change them in our House of Commons. We will not go back on them, and you won’t go back on them.” If we listen, again, to the more zealous Eurosceptics, they seem to think that the world will throw open its doors when we arrive saying, “We want a trade deal with you—open trade.” “Fine”, say the Australians. So we say, “The rules are that you agree to this, this and this, and you take this, and we take that.” But then we say, “Of course, we may change the rules—we may change the scope occasionally. We do not, of course, undertake to fetter ourselves by any lasting obligation to what we have agreed with you.”
There are no such deals. It is fanciful, as the Secretary of State for International Trade discovered when he went to America. He no doubt believed, as they all did just after the referendum, that the doors were about to be thrown open and that we would get a deal with the Trump Administration by Christmas. He found, as indeed I did in my dealings with America, that things are different. The current President is hopeless. He wants to reduce the amount that we and others export to America, and he wants to use force in what he says are easy-to-win trade wars to get us to open up more of our markets to exports from the United States in sensitive areas. That is what he is about.
What is a constant in America—it is also true in Australia, New Zealand and Brazil, thinking of some of the bigger and easier markets—is that they are always anxious to have access to our market for their farmers. They produce food on an industrial scale to lower standards of animal welfare and food regulation than we have. President Trump will say, “We are going to sell you our beef and our chicken and some of our cereals on a bigger scale.” What will those countries want us to get rid of? They will want us to abandon the European regulations on animal welfare and food standards and take up theirs. It would cost us the European market if we did that, and we would have to have border guards everywhere because nobody would let us export to the rest of Europe or to Ireland, or be a route for, chlorinated chicken and hormone-treated beef. Australia has hormone-treated beef; it is not just the Americans. I will not go on, because I think I have made my point.
People are of course dismissed any time they try to point out the consequences of our ignoring reality in the modern world and what might happen to our economy—to Scotland and the rest of the UK—if we accidentally put all kinds of new barriers in the way of our trade. Unfortunately, the public have been persuaded by the Eurosceptics to ignore the Bank of England, the Treasury, the CBI, chambers of commerce, and people from key sectors of the economy such as the car industry and pharmaceuticals. It is all scaremongering, apparently —so we are told.
Actually, I do not see how anybody can argue that erecting new barriers between ourselves and the biggest, richest international free trade market in the world can do anything other than make us poorer than we were. That is why I do not understand why the Government are resisting the not very strong or compelling Lords amendment 1, on customs union, at all. They are only being asked to report on what efforts they are making to get there, and I think they are going to have to make efforts to get there.
The amendments in lieu are an attempt to devoid substantial amendments of any meaning. I would not vote with the Government on the meaningful vote yesterday, because I could not see that any commitment had been given; nor could I see any argument against what was on the amendment paper. I was very worried, because I thought that some of my close hon. Friends and colleagues were going to be very angry when they discovered that they had been fobbed off with an agreement just to discuss the possibility of changing the provision. They may yet have the last laugh on me—I am getting to be a cynic in my old age—as this morning they appeared to be getting somewhere in getting a more substantial system put in place, but we have yet to see the Brexiteers mount their full counter-attack. I will wait and see.
I will come back to the subject of this particular debate, as you will want me to do, Mr Speaker. What is being offered as an amendment in lieu, to use the jargon, is pathetic and utterly meaningless. We could save a bit of public money by saving the paper involved in putting it in the amendment paper and printing it. That probably explains why the amendments in lieu have been tabled by an extraordinarily wide range of Conservative MPs. As well as the Secretary of State, the list includes my hon. Friend the Member for Stone (Sir William Cash), my right hon. Friend the Member for Loughborough (Nicky Morgan), my hon. Friend the Member for North East Somerset (Mr Rees-Mogg) and so on. I know all these people and I do not believe that they agree on anything that has anything to do with the European Union, so what has induced them all to do this? I quite accept that there is a sense of deep loyalty to our party, which I assure the House I actually feel in every other way myself. I think that this is an excellent Government if it were not for their policy on leaving the European Union, but there we are.
What are we being asked to sign up to? The amendment says that it is “a customs arrangement”. Well, that covers anything. It is a phrase that the Prime Minister, for reasons that I have always understood, has slipped into several times because she cannot get the members of her Cabinet to agree on her using any other form of words. So for the time being she has been obliged to slip into talking about “a customs arrangement”. But that includes absolutely everything, from the kind of arrangements that would suit my hon. Friend the Member for North East Somerset to those that would suit my right hon. Friend the Member for Loughborough, but everything in between as well. It is a bit of a waste of a statement, coming back to say what efforts they have made to reach that extremely amorphous destination. Of course, that takes us back to the root of the whole problem, which is trying to arrive at a border policy.
To end on a more optimistic note, I think that most of us have noticed that a most important stride was made yesterday, as I have said, with an amendment tabled by the Government that was described as the Irish amendment. It is part of dealing with the argument about the Belfast agreement, and actually embodies the Belfast agreement in law. It goes further by reinforcing what the Prime Minister has actually been saying for some time, if we have been listening to her—that we are going to have a customs union, in effect, in Ireland, because there is going to be nothing new and no checks on the border. We are, in effect, going to be in the single market as far as Ireland is concerned, because we are having regulatory alignment. We agreed that. I think that the Cabinet agreed it—although some of them do not seem to have noticed—not too long ago, back at the time of the draft withdrawal agreement, which the Government are now trying to finalise. I actually think that that is where we should go.
The Government are still talking about frictionless trade. Unfortunately, thanks to the rows there have been, the slogan is now “as frictionless as possible” trade, which no doubt cheers up the Foreign Secretary. The truth is that we will have to have genuinely frictionless trade through arrangements on customs and regulatory alignment that preserve the benefits of all this for Ireland. Actually, the one thing that I think every Member of the House agrees on is that we do not want new barriers down the Irish sea. Northern Ireland is part of the Union—I am as Unionist as anybody here—and we are not putting up new barriers between the mainland and Northern Ireland when we leave.
I was prepared to listen and go along with the idea of a customs partnership, which was meant to be a way of combining customs union with trade deals with other countries, if we can get them. The difficulty is that “customs union”, unlike “customs arrangement”, has a meaning. Put simply, it means that we have no tariffs or other barriers between us; we have a common barrier around the outside, of tariffs and customs procedures for things coming in. That is why, in principle, we cannot have deals with anybody else, because we cannot have each member state punching a hole in the barrier because it wants to have a trade deal with Brazil on different terms. That is why the sensible thing—it is what we have always done whenever I have been in government—would have been to encourage more EU activity to get deals for all 27 member states.
If the customs partnership—all this stuff about collecting different tariffs and refunding British businesses if theirs are lower—can be made to work, fine. I have my doubts about that. I think the “max fac” idea is utterly ridiculous, because it is incompatible with any open border, and it will not even be invented for some years anyway. I might welcome the backstop if I thought that the present system would continue for 10 years while Brexiteers search for the new technology, but I think that they are unlikely to go along with that too happily. Serious negotiations have to be on the basis that we have described, which for some reason the Government are trying to push away in the Bill with their so-called commitment to an absolutely amorphous customs arrangement.
As I said yesterday, in the present situation this House must give some signals, some messages and some steer. It is not only the Government but the country, businesses and our economy that need us to have a policy on exactly what our patterns of trade will be once, sadly, we have left the European Union, which I am afraid we are doomed to do.
Time is running out, not just in the debate this afternoon but for the country. For far too long over the past two years, we have wasted time with a lot of dreaming—dreaming about the easiest trade deal in history, dreaming about us holding all the cards and dreaming that we will get the exact same benefits. The moment when that finally came to an end was when the Prime Minister spoke at the Mansion House and admitted that it was not really going to be like that. This is the moment when we need to tell each other the truth: there are choices that we face; there are trade-offs that we have to accept; and there are decisions that need to be made, which is the point just made by the right hon. and learned Member for Rushcliffe.
If I may use an analogy, it seems to me that we have decided as a country to disembark from a liner in the middle of the ocean, and we have two basic choices: we can jump into the sea, which is what a hard no-deal Brexit would mean, or we can climb down into a lifeboat and decide where we are going. What are those in the Cabinet doing at the moment? They have spent two years arguing, first about how to create a deep and special lifeboat. They are trying to come up with a lifeboat that will not breach their red lines, and they have broken up into working groups, probably discussing the size, colour and shape of the lifeboat. The only thing that has not happened yet is a Minister getting up at the Dispatch Box and announcing that no lifeboat is better than a bad lifeboat. I tell you, Mr Speaker, it is not funny. The truth is that it is extremely serious indeed.
What does all of this mean? It means that we have not yet agreed as a country what we want for the future of the relationship. Not only is the promised White Paper now not going to appear until next month, but we learned this week that there will be a two-day away day in Chequers where the Cabinet tries to thrash things out. That means there will be one European Council left on 18 October—one—at which to sort out all the things we have been debating yesterday and today and to agree the political declaration, which is all about the future of our country. As a result, we have barely begun to discuss what might be in that political declaration at a time when, as the Prime Minister said in her G7 statement on Monday, the international rules-based order is under a threat that it has not been under at any time since it was created at the end of the second world war.
We are in a perilous place. Business is losing patience; we know that. The EU is frankly bewildered about what is going on in this country. The British people, to judge by the polls, think the whole thing is going very badly. The right hon. Member for Broxtowe (Anna Soubry) made the point really well—it is true—that in this place and outside, people have whispered conversations in which we say, “What on earth is going on?”
The consequences of getting this wrong for the country will be deeply damaging for our future and for the jobs, livelihoods and public services that depend upon our economic strength. That is what we are debating. There is so much at stake that it is frankly difficult to overstate it. Let me say it plainly: we have had enough of management in the party interest. What we desperately need now is leadership in the national interest.
That brings me to the EEA amendment and the question of our future relationship with our biggest, nearest and most important trading partner: the 27 countries of the EU. The truth is that on both sides of the House we are all debating, and sometimes disagreeing on, what kind of framework would be best. The Government now accept that we will be staying in a customs union and, in all likelihood, aligning with the rules of the single market for quite some time to come, because nothing has yet been agreed that can possibly replace the benefits we derive from both.
The same outcome will inevitably result from the proposed Northern Ireland backstop, although it is currently silent on the question of regulations and the internal market, which is why I described it last week as half a backstop. That omission will have to be remedied between now and the end of this month, because half a backstop will not do the business when it comes to getting the European Council to agree with it. And by the way, it is ludicrous to debate whether the backstop is time-limited, because the truth is terribly simple: the backstop will remain in place as long as necessary, until something else comes along that can replace it and achieve the same objective, which is maintaining an open border between Northern Ireland and the Republic of Ireland. I am afraid that was about politics, not about policy.
That is also true of the debate about maximum facilitation and the customs partnership, although both ideas strike many people as costly, bureaucratic, burdensome and reliant on technology that is not yet in operation. However, being a generous soul, let me say that even if the Cabinet, on its away day, manages to reach agreement on one or the other, and even if the EU negotiators said, “Okay, let’s give it a go”—I do not think there is any prospect of that whatsoever—we all know that neither of them could be put in place by December 2020. It is too late: too much time has been wasted. That is why the transition period, or a transition period, is going to have to be extended by one means or another, whether that is with the backstop or an agreement on a way forward. That is where we are heading by default, so the question is: what form should the next transition, from January 2021 onwards, take? This is where the EEA comes in, because that would be one way of doing it.
Let me turn to the amendment moved by my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) and Lords amendment 51 on the EEA. Both are about a future framework and the internal market, and the difference here—apart from the free movement issue, which I will say a word about in a moment—is really quite small, and I very much welcome what was said by my right hon. and learned Friend, who leads for the Opposition, about having an open mind. I will of course vote for his amendment, because who could argue with the notion of full access to the single market? If it is not successful, I will vote for the EEA amendment, because we need to keep our options open. To return to my analogy, it has the one great advantage that it at least looks like a lifeboat, and I have to say that the closer we get to October, the less inviting the cold sea appears to those thinking of jumping off the side of the ship.
I am the first to acknowledge that the EEA option is not perfect. I do not want us to be like Norway, and I am not arguing that we should have a deal like Norway’s. Apart from anything else, we want to remain in a customs union. As Michel Barnier repeated yesterday, it would be an option to have the EEA plus a customs union. Let us acknowledge that.
We should seek some changes to the way in which free movement currently operates. Some of those could be made within the current rules of the European Union, which we will be leaving. Others would involve discussion of the emergency brake, which is why my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper) and I have tabled amendment (b), which refers to “safeguard measures”. The Exiting the European Union Committee, which I have the honour to chair, drew attention, in its report on the future UK-EU relationship, to the possibility of additional flexibility on free movement. We need to make sure that our agricultural and fish exports can continue to move freely.
Who knows whether the EEA option may turn out to be a temporary state, but as a potential starting point, with a customs union, it would provide a means of solving the Northern Ireland problem, keep goods flowing freely, ensure common standards, maintain the flow of data, protect employment and environmental rights and enable us to continue to co-operate in really important areas such as aviation, consumer safety, medicines and space research. Crucially, it would also gain us a place in the room when some future decisions are being taken. In the EEA, not all EU legislation has to be transposed, and there are consultation mechanisms and a separate court. When it comes to EU agencies, in many of which UK regulators have led the way, we could continue to influence what happens because we would be part of the conversation, even though we would not have a vote, which is not the case under the transition period that we will shortly be entering.
The EEA option would diminish in part—I acknowledge that it would do so only in part—the rule taker problem. However, given that we are leaving, I see no outcome in which the United Kingdom will be a rule maker. We will have to follow the rules of our biggest export market for goods and services because so much of our prosperity depends on doing so. I think the Solicitor General accepted that in his answer to my earlier question, although he tried to couch it—and I see the argument—in terms of us, as a free sovereign country, being able to choose to follow the rules of other people. Indeed we can, and the same is true of the European Court of Justice and any other part of the agreement that we may seek to reach.
For me, the other attraction of the Lords amendment is that it uses the word “enables”, not the word “requires”, referring to an agreement
In other words, it gives us a choice. Now, that may not be the definitive answer, although I note that several right hon. and hon. Members on the Conservative Benches have tabled a similar amendment to the Trade Bill, which we will come to later in the summer. However, at the moment, when we are not entirely sure what options we have available to us, it would be very unwise to discard this amendment.
I finish by making two points. First, to those who say that this would mean Britain staying in the European Union, I repeat what I said yesterday: we are leaving the European Union, as the right hon. and learned Member for Rushcliffe acknowledged, at the end of March next year—that is what the referendum decided. Secondly, however, is anyone seriously arguing that Iceland, which is an EEA member, is a member of the European Union? It is not. So the argument holds no strength at all.
To finish, I somehow suspect that the EEA amendment may not survive the vote later today, but their lordships may come back with something in its place, and I hope that next time there is a proposal before us all of us who know just how much is at stake—now, here—will have the chance to rally round.
Let me start with the specific matter. We have had a very interesting debate during the passage of this Bill about what we do with retained EU law and human rights. We have felt our way through this, and at the end of his speech my hon. and learned Friend the Solicitor General made some sensible points about the difficulties around the charter of fundamental rights. I do accept that it sits uneasily with a situation in which we bring laws back to this country, although I highlighted to him the inconsistency of having retained EU law without having general principles potentially to override it, because it itself can override other of our domestic laws. That was the justification for it, and I regret that we are not going to keep it, but I welcome the fact that we are at least going to keep it for three years. To that extent, we have made a little progress; I am genuinely grateful to my hon. and learned Friend, and I will accept that.
That still, however, leaves amendment 4—that of Baroness Hayter in the other place—which sought to provide some enhanced protection for certain areas of EU law. These are areas of EU law that I think many Members of this House would recognise as being of special significance, including
“employment entitlements, rights and protection”
and
“equality entitlements, rights and protection”—
something that has featured more and more in our jurisprudence. In the recent case, for example, of Benkharbouche, a lady was discriminated against in an employment setting within an embassy and succeeded, by going to the Supreme Court, in setting aside our existing laws on diplomatic immunity, because they in fact went beyond what was required under the Vienna convention. Those are real areas of progress for our legal system.
Those things will be lost without the charter and the general principles. The worry is that, while I certainly do not think my right hon. and hon. Friends want to diminish areas of equality, employment, health and safety law or consumer standards—we have covered environmental protection, interestingly enough—they have given no protective status whatever to those areas. At some point, the House will have to come back to this and consider whether we should amend the Human Rights Act 1998, which we could do, to do this in a way compatible with our parliamentary tradition and our parliamentary sovereignty. Until we do that, they do not enjoy protection.
Baroness Hayter’s amendment would at least give them this protection: that they could be altered only by primary legislation or by subordinate legislation, which would have to be subject to an enhanced scrutiny procedure to be established by regulations made by the Secretary of State. My hon. and learned Friend the Solicitor General will say that that is massively unwieldy, but actually it is not. All we need is to have a set of regulations that distinguish between technical amendments, which can go through just like that, or other amendments, which would have to be dealt with in a more enhanced form. The flexibility, therefore, is in fact there in the amendment and I do not think it is as unwieldy as the Government suggest. I am afraid that the truth is that, for reasons of their own, the Government just do not want to go down this road. We discussed and debated it at great length in Committee, and although we received delightful and repeated assurances that there was an understanding that these were areas of law that really matter, I am afraid that we did not succeed in getting any further.
I am afraid, because I do not like to have to rebel against the Government line, that I will vote for amendment 4 to retain those protections, when the Government seek to remove them. It is as simple as that. It is, perhaps, a gesture, but it is a gesture designed to put down a marker to say that we cannot ignore this issue for the future. We have pretty consistently ignored them, with the one great exception of what my hon. and learned Friend secured over the three years on the general principles. Respectfully, I will differ from the Government’s approach.
The second issue, which was touched on with great eloquence by the right hon. Member for Leeds Central and my right hon. and learned Friend the Member for Rushcliffe, concerns our future relationship structure with the EU, encapsulated in the EEA Lords amendment, the amendment tabled by those on the Labour Front Bench, and, to an extent, the amendment relating to the customs union or a customs union or a customs arrangement.
Mr Speaker, I do despair. I listen over and over again—every time I stand up in this place, I receive streams of emails—to angry people insisting that the sovereignty of this country is linked to the single issue of being free of the jurisdiction of the European Court of Justice, free of any form of customs union, and free, above all, to keep people we do not like out. That is all very well, and of course one can do those things, but the first thing that completely ignores is the fact that we are subject to myriad international laws, which we observe to the letter—because we are a rule-of-law state—quite cheerfully, and which greatly enhance our commerce, peace and security. We do it all the time because that is the way the world works in a globalised environment, but we have got ourselves so angry and so fixated that we cannot see the wood for the trees anymore.
The consequence of that, which I thought was beautifully put by the right hon. Member for Leeds Central, is that we are careering off trying to do a deal on leaving the EU which entirely ignores the reality of the relationship we have. We have been discussing Ireland’s role. We have dealt with the Irish border issue very well and I am pleased with that. I hesitate to say this here, but I remember once going to Dublin and a very nice Irish economist with the Irish Government said, “Of course, we may not like it here, but the reality is that the subzone we operate in is the British economic zone and it dictates how we operate.” That is of course why we have a common travel area. Similarly, we are—for all our 65 million people, being the fifth largest economy in the world and all the other things we like to trot out, and our pride in our nation state—part of the European economic zone. That is where we trade and where our commerce goes, and although I would love it if we could enhance it, trade elsewhere and encourage the EU to trade elsewhere, that will never be a substitute for where we are.
Last Thursday, I was in Berlin discussing Brexit with a German Government Minister, and he asked me what I thought the Government would do next on customs and trade. It was hard enough to talk about—would it be max fac, buffer zones, double-hatted regulations, backstops, front-stops, any possible customs arrangement or partnership, and so on? What was even more embarrassing, however, was that, even as we were speaking, I had to admit that I did not know whether by the end of the meeting the Brexit Secretary would still be in place—he was in and out of No. 10, apparently about to resign—and the Foreign Secretary was promising meltdown and telling us all, “Don’t panic!”. We are embarrassing ourselves across the world with this “Dad’s Army” version of Brexit. We are in danger of turning ourselves into a national joke by not facing up to the real issues.
The Government say they do not agree with the Lords amendments on the customs union and the EEA, but we still do not know what they want instead. As others have said, the new customs arrangements amendment is a further fudge that just kicks the can down the road again, even though the road is running out.
Ministers should accept that, although they have been wrestling with this issue and with each other for 18 months, none of their customs options works, either for Northern Ireland or, crucially, for manufacturing industry, which is the spine of our economy. The technological max fac will not be ready for years; it does not solve the problem of rules of origin checks, nor can it avoid camera infrastructure at the Northern Ireland border. It will leave businesses with what Her Majesty’s Revenue and Customs now says could be a £20 billion annual bill for the bureaucracy involved in explaining where all the ingredients and components come from in a fully integrated supply chain.
Let me now say something about the single market, because we have not yet debated it properly in the House. I will refer to various Lords amendments, and to both amendment (a) and amendment (b), tabled by my right hon. Friend the Member for Leeds Central (Hilary Benn).
At the heart of the single market is the concept of the level playing field, enabling businesses to compete on equal terms, giving workers proper rights so that they are not undercut, and protecting environmental and health and safety standards. I understand why the hardest of free marketeers will oppose that. It is also the case that people voted to be outside a political union, and outside membership of the EU. However, I still believe that there is a majority across the country and across the House—and there would probably be a majority in the Government if individual Ministers were allowed to be honest about the issue—in favour of a close economic relationship, even from outside the EU. That means some version of single market participation: not just access but participation, or as close to it as we can get in the negotiations.
Some Members on both sides of the House have concluded that they cannot support either the EEA or any single market model, because they believe that we need immigration reform and because of the European Commission’s response that the four freedoms must be indivisible. I understand that position. For many years, as well as calling for more support for refugees, I have called for reform of free movement, even from within the EU. While I believe that immigration is crucially important to our future, I also continue to believe that change is needed. I believe, for example, that we need to tackle the problem of some employers’ use of free movement as a reserve pool of low-skilled labour to undercut terms and conditions; and we need reforms to rebuild consent and consensus around the immigration system. However, instead of turning that into a reason to rule out trying to get as close as we can to full participation in the single market, we should be having a serious debate about what the real options and objectives for our country might be, and the difficult choices and trade-offs that might be involved.
Our Select Committee, the Home Affairs Committee, is trying to do that. It is looking into immigration and trade options and trade-offs. It concerns me greatly that so far we have had nothing from the Government in that respect, although immigration was one of the central issues debated at that time of the referendum.
Yesterday the Committee heard about a range of immigration options that might be compatible with single market participation in some form or other. We heard about safeguarding measures, including emergency brakes under article 112 of the EEA agreement; permanent safeguarding measures and caps negotiated by Liechtenstein; the current measures negotiated by Switzerland, with requirements to advertise jobs locally first; the previous immigration caps operated by Switzerland in 2012 and 2013, based on its 1999 negotiation; the separate arrangements for Ukraine as part of its association agreement with the EU; new options for emergency brakes or safeguards, put forward by Professor Ambühl, himself a former Swiss Foreign Secretary; the registration scheme operated in Belgium; the benefits regime proposed by Germany; reforms on posted workers proposed by France; reforms on agency workers; and labour market measures from Scandinavian countries, Switzerland, and even Germany and France that prevent undercutting.
I am not today advocating any particular measures, because our Select Committee inquiry is still under way. Nor am I claiming that each and any of them is either the answer to British challenges or achievable in negotiation, and I do not pretend that any of them will give any one of us exactly what we want, but compromises are going to be needed, and the point is that those with some of the most experience of negotiating on free movement in Europe told us yesterday that they think these options could potentially be part of a single market deal. That is why my right hon. Friend the Member for Leeds Central, the Chair of the Brexit Committee, and I have tabled our amendment which adds “appropriate safeguard measures” to the EEA amendment to make it clear that the Government’s objectives can and should include both a close single market relationship and immigration reform.
Let me turn now to whether the EEA is the right option or the best model. From the evidence we heard yesterday, it is clear that the EEA as it stands is not the ideal arrangement for Britain, that it would be better to have our own version, and that there are real challenges that have to be addressed on future rule taking. especially on services. But we may have more flexibility, as witnesses recommended to us yesterday, in a bespoke arrangement as Switzerland has, or an association agreement as the European Parliament has suggested. However, this will draw on, and have parallels with, much of the existing EEA regime. I also do not think we should be ruling out the EEA as the backstop, especially if the future partnership takes longer to resolve. It would prevent us from crashing out not just in 2019 but in 2021, without a new deal in place. We accept that we need a backstop for Northern Ireland, but we should be looking at a backstop more widely for all the other issues as well.
I accept that we are not heading towards consent or consensus on this today, however. This reminds me a bit of a 2003 debate we had on reform of the House of Lords. There was an overwhelming majority in favour of reform of the House of Lords, but seven options were put to Parliament and everybody voted in different ways on different ones, and none of them got through, and we have had no reform of the House of Lords since then. That is similar to the situation we are in now, and we are going to have to work harder if we are going to reach consensus among those of us who believe in a close economic relationship and come up with something that can pull us together rather than divide us. I accept that people are interpreting this amendment from the Lords in different ways—either as the objective or as the backstop, as I think it should be—but if we are going to make progress we must work at achieving consensus.
My right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) the shadow spokesperson on Brexit has asked us to abstain. This is a difficult decision for me, and I feel very uncomfortable in doing so. However, in the interests of getting that consensus at the next stage when something comes back from the Lords or when we get to the Trade Bill, I will do as he asks today, although I have huge sympathy with those who will choose to do differently. But I ask my Front-Bench team in return to look very seriously at this issue of the backstop, because this is crucial and the clock is ticking. The Government keep kicking the can down the road; we cannot all keep kicking it down the road as well. We cannot carry on like this; we have a responsibility.
I want to touch on three amendments. The first relates to the customs union or customs agreement. Since the referendum, I have always said that I am not wedded to the customs union. I do not care what it is called as long as we achieve something close to what we have today: frictionless trade, a borderless barrier and free trade with the EU. I do not care whether it is a partnership or an agreement—I really do not care. However, I take great comfort that, when we couple that with yesterday’s successful amendment on Northern Ireland, which we have already spoken about today, that is the ultimate backstop. A commitment to avoid a hard border in Ireland, given that there appear to be no solutions to the technology issues whatsoever, tells me that somehow in all this we will come through with a customs agreement, union or partnership.
I think that the Bill is in better shape than when it was first drafted. We now have in the Bill—potentially after today—a customs union or agreement, and we have no hard border in Northern Ireland. I am therefore fairly happy with the direction of travel; we are finally starting to get there. We also have the Taxation (Cross-border Trade) Bill coming back next month, so let us see how the Prime Minister gets on at the end of the month, because there will undoubtedly be more opportunities to debate that—and many Conservative Members will not shy away from doing so if we need to, because frankly we cannot deliver the Good Friday agreement and ensure that there is no hard border in Northern Ireland without a customs agreement or partnership.
Staying on the customs theme, Lords amendment 51 deals with negotiating continued access to the EEA. I see that, plus joining EFTA, as a sensible lifeboat. It is far inferior to the bespoke customs arrangement that I know the Prime Minister is determined to seek, but if she does not achieve that, we will need this as a plan B. I have already put my name to an amendment to the Trade Bill relating to the EEA, and it is fair to say that I will be keeping my name there and abstaining today to draw a line in the sand to signify that we should not throw this option out. We need to keep every possible option on the table, because I for one am not prepared to plunge into the sea with no lifeboat whatsoever. The majority of Members, and of the British public, do not want to leave the EU with no deal and no lifeboat. That would be absolute economic suicide. The EEA-EFTA option is not my first preference, but it is a possible plan B, so we would be absolute fools to write it off. Let us see where we are with the Trade Bill and find out how the June Council goes, because this could be the lifeboat that we should all grasp with both hands.
Finally, I want to speak briefly to Lords amendment 24—the Dubs amendment. I am pleased that the Government have come a long way on this, thanks in large part to the leadership of Lord Dubs and to the amendment tabled by the right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper). Enshrining in law the inclusion of aunts and uncles in the definition of family members that child refugees can come to is huge, and no one could be prouder than I of what we have achieved as a country in relation to Syria and the region. We have provided unparalleled financial support and taken in large numbers of refugees, and the fact that we are prepared to take on the Dublin regulation, which we would otherwise have lost when we left the EU, is massive.
I cannot begin to imagine the hell and trauma that those children and families have gone through, but I can imagine that family is everything, so I still do not understand the Government’s position on amendment (i) to Government amendment (a) in lieu of Lords amendment 24, which was tabled by the right hon. Member for Normanton, Pontefract and Castleford. Will the Solicitor General look at that again? Why can we not extend the provision to siblings under the age of 18? It would affect so few children, but it would be the final piece of the jigsaw with the Dubs amendment. This is a question of competent government and legislation. When we can legislate for the smallest detail, it can have a real effect on individual people’s lives. The amendment is now near-perfect, and I urge the Solicitor General and the Government to look at this again. In relation to EEA-EFTA, we will have the Trade Bill coming back, and in relation to this question, we will have the immigration Bill, so if we do not succeed today, let there be no doubt that Members on both sides of the House will again push hard to achieve this aim. For me, this is the important missing piece of the jigsaw. One small tweak could make a tremendous difference, and I urge the Government to look at this again.
Crucially, 80% of our economy is accounted for by services—we are a country whose economy is dominated by services—and those are governed by common rules and regulations, not by tariffs. In the west midlands alone, service industries account for £93 billion a year of GDP and 74% of our local economy. In the north-west, services account for 75% of the economy and £125 billion. When it comes to trade, we sell over £100 billion of services to the EU every year at a surplus. It is essential to have an agreement that covers both manufacturing and services. The bottom line is that any serious Government party or any Opposition party that aspires to government must care as much about the creation of wealth as about its fair distribution. That is why these questions are so central.
Let me turn to one or two of the common objections to the EEA agreement. On the rule-taker objection, it is of course true that non-EU members do not have as full a say as those who are members, but as we voted to leave the EU, we voted to leave our seat at the table where many such rules are decided. That is not intrinsic to the EEA agreement; it is intrinsic to the decision to leave the EU, and that applies not just to the EEA. As an example of rule taking, look at what the Government are about to do. Next March, we will engage in a transition period during which we will have to abide by the whole acquis without any say, and all the talk of transitions and backstops have been about that. The Government’s decision and the timetable that they have put in place for next year will form the biggest voluntary surrender of national sovereignty in modern European history. That is rule taking.
The second big objection to the EEA agreement is that there is a customs border between Norway and Sweden, but that exists because those nations have chosen not to be in a customs union. It is our policy to be in a customs union. It is not a matter of irreversible legal necessity; it is a matter of choice. Michel Barnier said just two months ago:
“It was the UK’s decision to leave the EU, but it is not obliged to leave the single market and the customs union because it is leaving the EU.”
As my hon. Friend the Member for Pontypridd (Owen Smith) said, Michel Barnier confirmed yesterday that it is open to us to be in both the EEA and the customs union. If Members are against the EEA, they should be against it because of content, but they should not be against it due to spurious arguments about having to choose between the customs union and the EEA. That is not the case.
The situation in Northern Ireland cannot be dealt with purely by being in a customs union, because it requires regulatory convergence on goods and services that are exported. That fact is clear to our sister party, the Social Democratic and Labour party—sadly it is no longer represented in this House—which wrote to us last night with a heartfelt plea to keep the EEA option available and to vote in favour of Lords amendment 51.
I know that there is a great deal of working-class disaffection behind the Brexit vote, and that people want action on migration and free movement. My right hon. and learned Friend the Member for Holborn and St Pancras read out a list of things we can address, and former Prime Minister Gordon Brown spoke about others in his speech last week. There are things that we can do, and we need to address working-class discontent, but we do not take the first step in doing so by voting for a path of making our country poorer, and of not generating the wealth required for the public services, regeneration, housing, and the better chance in life that our working-class communities need.
My education was very international. I did not return to start my education in this country until the age of 11. I suggest to those who say that Brexiteers tend to be anti-immigration that what many of us want is an immigration system that no longer discriminates against the rest of the world outside the EU. We are getting a little tired of the line that, somehow, we are anti-immigration. We want a controlled immigration policy, but we also want a fair immigration policy.
I suggest to Opposition Members that a controlled immigration policy—one that is fair to all and that no longer discriminates against any particular region—would actually help the wages of many in this country, because wages are a simple function of demand and supply. If we introduce a system of controlled and fair immigration, as Lord Rose admitted just prior to the referendum when questioned by the Treasury Committee, wages would rise faster but big business may not like it. Labour would be well advised to bear thought on that issue.
In addressing Government amendments (a) and (b) in lieu of Lords amendments 1 and 2, I will focus on the nature of the negotiations themselves. We have discovered today from the right hon. and learned Member for Holborn and St Pancras (Keir Starmer) that the price that Labour is prepared to pay to be part of a customs union or the customs union is to sacrifice the right to negotiate trade deals with other countries outside the EU. That came from the Labour Front-Bench spokesman, and I hope that Ministers take that on board, because it is an important deviation from what the Labour party promised at the last general election.
Putting the referendum to one side for a moment, the Labour party’s manifesto actually said that we will be leaving the customs union and the single market. Labour seems to have conveniently forgotten that point, and we must drill that home because Labour is betraying its core support by ignoring what it put in the manifesto on which it stood at the last general election. We should also remember that 85% of those who voted at the general election—the 43% or 44% we got, and the 41% the Labour party got—actually supported that policy.
On the business of tying the Government’s hands in the negotiations, those who have conducted any form of negotiation will understand that that makes for worse outcomes. There is no getting away from that point. It also flies in the face of precedent. It is an accepted practice that Governments negotiate treaties, as was the case at the time of the European Communities Act 1972, and with the Lisbon treaty, the Nice treaty and so on. I do not remember any argument that Parliament should undertake negotiations on those treaties being made by people who today are arguing that Parliament should dictate the Government’s course of action in international negotiations. There is an absolute contradiction on that policy.
We often hear those who campaign on this issue, or who challenge the Government’s position, quoting the EU or Michel Barnier as though their words are gospel. What they should remember is that we are party to a negotiation. What is said publicly in a negotiation does not always translate to reality in the negotiation itself, so I do not think that we should take at face value this talk of, “Oh, Michel Barnier said that and therefore it must be true.” Let us have a bit more questioning, particularly when a negotiation is being undertaken. All too often, the remarks of the EU and Michel Barnier are taken at face value, and that is wrong. It is all part of a negotiation.
Finally, turning to the amendments, my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke)—we agree on many things, but not necessarily on European matters—was absolutely right that this is a pragmatic compromise. A customs arrangement can cover all manner of different scenarios, and we will undoubtedly revisit this topic at a later stage, notably with the Trade Bill. A Bill concerning how the law will apply post Brexit is not best suited for a discussion of our future trade arrangements. He is absolutely right that it is meant to get us to that stage. This is a pragmatic compromise so that we can do that and then discuss these issues in more detail when the time comes. I therefore urge all Members to support the amendments.
First, the watchdog has an enforcement gap, because it cannot start legal proceedings and issue fines, unlike the European Court of Justice, whose threat of fines is the only thing to have galvanised Government action on air quality. Amendment (c), tabled by the right hon. Member for West Dorset (Sir Oliver Letwin), would give it the ability to start legal proceedings against the Government but is silent on the remedy to be applied.
Secondly, there is a climate change gap. The Committee on Climate Change warned that its omission from the watchdog’s remit
“would be artificial and potentially create problems”.
The Committee on Climate Change will hold the Government to account on the Climate Change Act 2008, but there will be no enforcement of our other climate change obligations. Who monitors progress towards our legally binding targets under the EU’s renewable energy directive? What happens to our EU emissions reduction targets? Will there be a gap if we leave the EU’s emissions trading system? Amendment (c) does not address that.
Thirdly, there is a citizen gap, because the watchdog does not provide access to environmental justice for UK citizens, who at present can go to the European Commission when there is a breach of environmental law. They can petition their Member of the European Parliament, who can then ask the Commission to investigate, and ultimately, the European Court of Justice to issue fines. There is nothing in the Government’s proposals or amendment (c) on that, so there are three gaps.
I turn to the environmental principles, which have cleaned up our rivers and beaches and reduced our reliance on landfill and dirty, polluting industry over the last 40 years. Under the Bill as introduced, they would be lost after exit day. Amendment (c) puts the principles back in the Bill—although a very important one, the principle of non-regression, is missing—but the Government would only have to “have regard to” them, rather than act “in accordance with” them. That is a much less stringent legal requirement, thereby creating the legal uncertainty that the Solicitor General said at the Dispatch Box he wished to avoid. It does not mention local government and public bodies, only national Government, and it is silent on how the body’s independence from Government will be guaranteed and how it will be protected from the fate of Thomas à Becket if it is too effective, after the Conservative and Liberal Democrat Government abolished the Royal Commission on Environmental Pollution and the Sustainable Development Commission in 2011. Previous Governments have form on abolishing environmental watchdogs whose criticisms of Government are a little too uncomfortable and tart. We do not want to set something up only for a future Government to shut it down.
The Environmental Audit Committee, which I have the honour of chairing, warned a year ago that one third of EU law cannot be cut and pasted into UK law, and that we would be left with zombie legislation, no longer monitored, updated or enforced—and so it came to pass. Amendment (c) is a valiant attempt, but, after the Government’s attempts at cakeism and cherry-picking, there is a dangerous, new and highly addictive food on the parliamentary scene—fudge. We saw how long yesterday’s fudge lasted. It was delicious at the time and did the job, but was inclined to leave the children bickering on the back seat of the car about who got the biggest piece just one hour later. The Environment Secretary said that the environment needs to be protected from the “unscrupulous, unprincipled or careless”. I wonder who he meant. His proposals will not do that, and amendment (c) will not do that, so I urge the Government to accept amendment (e).
I wish briefly to inject a slight note of reality into the debate and perhaps allow my constituents to contribute to it. I was emailed the other day by a small manufacturer based in my constituency on the subject of how it exports to the European Union. Some 60% of its manufactured goods, with an average price of about £150, go to countries in the EU. It told me that it was not necessarily worried about customs charges, but it is very worried about customs delays. Its customers in Germany and France know that if they order from this firm they get their goods in two or three days. Nevertheless, the costs are real. Its product costs 40% more for Norwegian customers than for Swedish customers, and 50% more for Swiss customers than for German customers. This company sends out 30,000 parcels a month. It is a great British employer, but the punchline is that its new distribution centre is going to be based in the EU, because of the 15% costs that are going to be added to its business by our decision to leave. The reason it has to compete is that its competitors are based not in the United States, Norway or Switzerland, but in Germany, France and Italy, and Brexit has given them an immediate advantage.
That is the reality of what we are talking about. We hear a lot of bluster. Whenever people who urge caution or realism about Brexit stand up, they are told to be optimistic and, indeed, patriotic. One prominent member of the Government compared Brexit to Y2K, which was an issue when, 18 years ago, double-digit computers were switching from the 20th century to the 21st. Apparently, Y2K was a ridiculous scare story and absolutely nothing happened. [Interruption.] This was the millennium bug; sorry, I am so old that I call it Y2K. A constituent emailed me to say that it is true that nothing happened with the millennium bug, but that was because, as he pointed out, thousands of people—he was one of them—delivered millions of lines of code, planned for it for five years and implemented the changes for two years, giving up their nights and weekends. The message to Government Front Benchers—perhaps the Foreign Secretary—is that changes of this nature are complex and difficult, and they take time and require planning. That is why the amendments we are debating are important and why a spirit of compromise and pragmatism must be injected into the debate.
To a certain extent, I am on repeat mode: I always like to have a bit about free trade deals in my Brexit speeches. We have already heard one speech saying that the EU is absolutely rubbish at free trade deals, but if we look at the large trading blocs’ free trade deals, I think it compares pretty well. It certainly compares well at the moment with the United States, which has come out of the Trans-Pacific Partnership and is bitterly renegotiating the North American Free Trade Agreement. The United States does not have a free trade deal with India or China, so we cannot really castigate the EU. The EU has free trade deals lined up with Japan and Singapore. Indeed, as the trade envoy to Vietnam, my instruction from the Department for International Trade is to secure a trade deal between the EU and Vietnam so that we can piggyback off the back of it.
As I have always said, trade deals are not easy to negotiate, but the EU can hold its head up high. We are often told that the EU holds back developing nations; it does have trade deals with developing nations and encourages them, but it quite rightly expects some give and take—for example, high labour standards, so that there is not unfair competition—and perhaps to have a voice in those countries on issues such as human rights.
I am not a dyed-in-the-wool Euro-fanatic, and I echo what my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) said when he cited Dan Hannan, because we all know that as a pragmatic Brexiteer, Dan Hannan has said repeatedly that we should try to stay in certain elements of the single market—that is in black and white. The ideology has to be stopped, and we have to look at things. That is not to say that the EU itself cannot reform. It should take Brexit as a signal of how it should be more flexible, and its legally based approach to the negotiations is unhelpful. Although I appreciate the irony of the Brexiteers who campaigned against Galileo now saying that we should have our own Galileo, for me it is an example of European Union inflexibility. The amendments are important, and I shall continue to listen to the debate. I look forward to further developments.
The arguments for the customs union have been well made by the Opposition Front Benchers, so I shall concentrate on the EEA. It is not the perfect model—I have never claimed otherwise—but it should be the starting point of any discussion if we say, as both main parties do, that we seek in any deal the exact same benefits as the single market. As has been said, the EU is clear—Michel Barnier said it yesterday—that we can be part of the customs union and the EEA. It is true that we would no longer have a vote on EEA rules at the EU Council; rather, we would be a rule shaper that served on the committees that draw up those rules.
Let us be honest, though: none of that really goes to the heart of where most concern about the EEA lies, which is with immigration and the continuation of some form of freedom of movement. Those are the big issues—the two elephants in the room. I am the son of an immigrant and I represent a constituency in which the majority of families are of an immigrant background, but I acknowledge that many of the communities that the Labour party represents are the opposite.
There is concern about immigration out there; we cannot duck it and we cannot ignore it. If we are honest, views are just as strong, if not stronger, in relation to non-EU immigration as they are in relation to EU immigration. There are parallels between the discontent in some of our traditional seats about EU immigration now and the discontent that there was about the Commonwealth immigration in the 1960s of which my late father was a part. There was, after all, a form of free movement from the Commonwealth until 1971, and there is now, of course, a form of EU free movement and would be if we were in the EEA. I do not deny, and I have never denied, that immigration can pose challenges, both economic and cultural, to communities, but it need not be that way if we implement the right policies.
As has been said, our former Prime Minister Gordon Brown has put forward a six-point package to address some of the concerns and better manage immigration, which includes acting to prevent the undercutting of wages by immigrants; removing newcomers after nine months if they fail to find a job; and putting in place a bigger fund to help mitigate the impact of migration on local communities. However, we need to do far more to help immigrants to integrate into their local communities, to speak English, to learn about the culture and so on. My father was so successful at that that he married an English woman and had mixed-heritage children.
All the things I was talking about can be implemented now to better manage migration while we are part of the EEA, and I support them, but what are the real underlying causes of concern here? Not enough decent affordable housing; a shortage of school places; an NHS in crisis; and not enough well-paid and decent jobs. Let us not pretend that all these problems will disappear or be mitigated if we cease participating in the EEA. As hon. Members have said, they will get worse, because there will be less revenue going to the Exchequer to pay for those things.
Those underlying problems are no more the fault of European immigrants now than they were the fault of the Commonwealth citizens who came here in the 1960s and 1970s. Let us make no mistake: people in traditional Labour voting areas were saying exactly the same things about the Windrush generation, about south Asian immigration, and about the likes of my father from west Africa being the cause of our problems way back then, as they do now in respect of EU citizens. Curbing Commonwealth immigration then and ending EU free movement now did not and will not solve these problems, and we know it. That is why Labour Governments have always addressed those problems by properly funding the NHS, by having a national minimum wage, by investing in our schools and so on. That is why I will vote for the amendment tabled by my party’s Front-Bench team, and also for Lords amendment 2.
A colleague came up to me in the Tea Room yesterday. She represents a seat in the north-west and, to my surprise, she told me that she would also be voting for the Lords EEA amendment. I asked her how come she was doing that. Despite the issues and the challenges that I know that she and many of my colleagues have to deal with in respect of that issue, which I do not have to deal with in my own constituency, she said, “Yes, there are big concerns about immigration, certainly compared with your area, Chuka, but the bottom line is that we have nothing like the amount of immigration from the EU or from outside the EU as you do in your constituency. I know that the cause of our problems is not that immigration, so I will not go around saying that I agree with any claim that that is the case, because I know what that will do. It won’t help us deal with any of these problems, but what it will do is deprive people of jobs.” That is why I say to my Labour colleagues that we should not ignore this issue of immigration, but let us deal with the problems and underlying causes in a Labour way. That is what our history dictates.
First, let me put this in context. As hon. Members know, I have been in the European Parliament for many years and witnessed many intense times in European negotiations, including the negotiations on the banking crisis and the eurozone crisis. It is utterly normal that all the discussions intensify and accelerate and that new ideas come forward, as the European Council meeting gets closer. That is to be expected; it is normal.
On Second Reading, I made it clear that I thought the Bill was far from perfect and that it would require many amendments. Many amendments have been made, both in this place and in other place. We should not be scared of the need to make amendments because this is legislation of a kind that has never happened before. I have been very glad to add my name to the amendments on environmental protections, which is a very important issue for many of my constituents, who write to me saying that they want to ensure that we keep a long-term focus on protecting the world’s environment.
On that basis, I am prepared to accept the amendments in lieu of Lords amendment 1 and 2 on customs union that have been tabled today. The amendments call for further work, because this is not the last time that the issue will come back to this House. I am expecting the Government to deliver a truly frictionless border—one that does not just take the friction from the border and put it back in the warehouse and one that does not mean that companies in Britain or Europe have to face silly bureaucracy with rules of origin. That is the type of detail that manufacturers asked me to secure, and that is what I expect the Government to fight and negotiate for. If we do not see it here, we will put it in the customs Bill.
On the EEA and Norway, I wish it were as easy as colleagues say to stay in the EEA, but I remember Norway’s Minister of Finance flying out to meet me in Brussels to ask me to table amendments for Norway. We could not be left in a situation where our Chancellor has to go and ask a French MEP to do that on his behalf. We have to find a bespoke solution. It is fine to be a rule taker in areas where our issues are aligned, but we cannot have it everywhere. I understand the calls from those who say, “Let’s try and find a lifeboat now, because no deal is not a good deal,” but we need to let the Prime Minister go into this round and negotiate, and she is right to fight for a bespoke deal.
The debate on the meaningful vote last night was meaningful. In my eight years of experience in Europe, I saw again and again that a first vote was needed to make a statement, but it was often not actually the final vote. We often need a second chance to have a vote, and that is what we bought with the compromises last night. It was a fudge, but it was a very important and meaningful one.
The right hon. and learned Member for Holborn and St Pancras (Keir Starmer) criticised the Government for adopting the European Research Group-inspired red lines. We have heard from the Minister that, for instance, the EEA does not pass our test. Well, that is the Government’s test. I cannot remember it being a test on 23 June 2016. Those red lines have led the Government into huge difficulties with the customs partnership. “Max fac” will cost business £20 billion. The Government’s current proposal for the customs arrangements appears on the amendment paper alongside the names of Members including the hon. Member for North East Somerset (Mr Rees-Mogg) and the hon. Member for Wimbledon (Stephen Hammond). Clearly, that is a fudge. As the right hon. and learned Member for Rushcliffe (Mr Clarke) said, those two Members never agree on anything. The fact that an amendment stands in both their names suggests that it will not withstand the heat of the kitchen.
Neither do I think that Labour’s amendment—another huge dollop of fudge—will withstand the heat of the kitchen. I hope that at some point Labour will be able to explain how the UK can have full access to the internal market of the European Union with no new impediments to trade and common rights. Well, good luck with that. I think that is completely unachievable, and that it would be intellectually dishonest for anyone to support it today. Labour cannot have its cake and eat it, any more than the Government can, in relation to our departure from the EU.
The logical conclusion of many of the speeches we have heard today, by sensible Government Ministers and Labour Front Benchers, is that we should stay in the customs union and the EEA or, even better, stay in the customs union and the single market. Why not go the whole hog and simply stay in the European Union? Instead, we have this bizarre situation in which the Prime Minister, when I asked her earlier today whether there was any damage that Brexit could inflict that would cause her to change direction, is unable to say “No, there isn’t.” She said that she is committed to doing this, even though she, who was a remainer—many Government Members were remainers—knows that it will cause huge damage. That is something for which they will be held to account in future, as will Labour Front Benchers, who in many respects are equally complicit in delivering Brexit.
Unfortunately, I do not have time to go into any depth on the other amendments. We will be supporting Lords amendment 5, on the charter of fundamental rights; amendment (e) in lieu of Lords amendment 3, which is about environmental principles; and the family reunion proposal, which is amendment (i) to proposed amendment (a) to Lords amendment 24, because I am afraid the Minister gave no explanation at all why he would not support it.
In conclusion, the whole process for scrutinising these amendments brings shame on the House, and I hope that the much-maligned House of Lords will be able to do a much better job and that it will have much more time for scrutiny than we have been allowed in this Chamber.
We must also ensure that we take the full opportunities that leaving the European Union will afford this country. That is why we need to leave the customs union and why we cannot stay in the EEA. The truth is that 90% of future economic growth in this world of ours will come from outside the European Union. In recent decades, the share of global GDP represented by Europe has halved, from about a third to just about 15%. Europe is in relative decline. We do not have to go that way ourselves. We can jump forward to explore, trade and participate in the fast-growing areas of the planet. I am not saying that it will be easy, but it is an instruction that has been given to us by our constituents and by this nation. What is more, when it comes to trade in goods, it is important to remember that the European Union sells us £100 billion more goods than we sell to it. It is therefore in its interests to ensure that there is frictionless trade, more so than it is in our interests.
We need to ensure that we are fully prepared for every eventuality and every single kind of deal that we might do. That is why I am making the case that we need to modernise our systems. We have needed to modernise them for years, so it is no-regrets spending. We should modernise them because the border is no longer as it was in the 1950s, where we checked every lorry; the border is a tax point. With the systems in place that technology now enables, trusted traders could be required to account for their loads and we could ensure that there was no need for any checks at the border whatsoever. That includes Northern Ireland.
Those who are opposed to us leaving the European Union like to cite Northern Ireland, but the truth is that we do not need any infrastructure or any checks at the border. We can have frictionless trade through the border, with audits in workplaces and computer systems that ensure there are proper audits. Singapore has such a single-window system in place, and countries around the world have such systems. We need to take advantage of that, because that is the kind of future we can make, and that is why I have been making the case for that investment to be made.
That is why I am personally confident that we can and should invest in this. That means investing properly in the road infrastructure on the way to the channel ports and investing properly in computer systems. It means investing in systems to ensure that checks can be carried out away from the border. It is no-regrets spending, and that is why the Government should be making that investment now, not waiting for whatever the deal is to do it.
The EEA agreement helped three small countries that could not persuade their people to adopt EU membership and that accepted having no say in return for single market membership. They accepted the role of rule takers, not rule makers, with second-class membership of the European Union. Much has been said about Michel Barnier saying this morning that he will give us membership of the EEA plus the customs union. Of course he would—he would bite off the Prime Minister’s hand for that deal, because apart from leaving without any deal, it is the worst deal for the United Kingdom.
There is no precedent for a country the size of the UK leaving the European Union. It is new ground and demands a new relationship, but that should not be a replication of Norway’s. The terms of EEA membership clearly do not allow the sort of changes to freedom of movement that some of my right hon. and hon. Friends have suggested. The only provision affecting migration is the Liechtenstein solution, which is a temporary brake on immigration in the event of an economic crisis. That was a provision for a country with a population half the size of that of my constituency of Don Valley. This is not an adequate response to the public concern about the lack of control the UK has had over EU migration since 2004.
I say to my hon. Friend the Member for Streatham (Chuka Umunna) that many people from the black and minority ethnic community voted leave and are also concerned about free movement. To move forward, we cannot just cobble together ideas as in the EEA amendment. There has to be an end to freedom of movement, just as my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) has suggested, and after that we can decide what sort of migration we want in the future.
Those of my constituents who voted leave have been insulted, day in and day out, by comments made in the place and outside. They are not against all migration, but they want a sense that we can turn the tap on and off when we choose to do so. They also want us to answer the questions: “Why hasn’t Britain got the workforce it needs, why has social mobility stopped, why do we train fewer doctors than Holland or Ireland, and why are these jobs dominated by those in the middle and upper classes so we don’t get a look in?”
I will be voting for the Labour amendment, because although it is not perfect, it seeks to delete the EEA option; and if that is lost, I will vote against Lords amendment 51. I urge the House to reject that amendment and to begin to face up to the policy challenges of life after Brexit.
I will be voting for the very good amendment—Lords amendment 51—written and beautifully advocated by the noble Lord Kerr. I urge hon. Members to read it, because I agree with everything it says about the value of a customs union. In due course, the Bill about a customs arrangement will come back to the House. I ask British businesses to write to their local MP to explain why it is so important, just as my right hon. Friend the Member for Wantage (Mr Vaizey) said that one of his businesses had explained to him in good, simple, plain terms why having a customs arrangement is so important to his constituents, their jobs and the future of their children and grandchildren.
I will be voting for the EEA amendment because, as I have said many times in this place, I believe in the value of the single market. I say to the right hon. Member for Don Valley that I am appalled that she, as a member of the Labour party, has stood up and shown that she does not understand and appreciate the considerable value that immigrants have brought to our country. These are human beings—[Interruption.] I will take an intervention when I want—I am not afraid of a debate, and I will take one now.
It is true, and I agree, that in some parts of our country a large number of people have come in, but these are invariably Polish people, Latvians and Lithuanians who do the work that, in reality, our own constituents will not do. It is a myth that there is an army of people sitting at home desperately wanting to do jobs. The truth of the matter is that we have full employment, and we do control immigration. How do we control it? It is called the market. Overwhelmingly, people come here to work. When we do not have the jobs, they simply do not come.
Now, it is right, and I agree—this is a sad legacy of previous Labour Governments—that there has not been the investment in skills that this Government are now making, and they have a proud record on apprenticeships, by way of example. However, I say to the right hon. Lady that she must speak to the businesses in her constituency, and she must ask them, “Who are these people? Where have they come from? Why have you not employed locally?” I have done that with the businesses in my constituency, and some have told me that they have probably broken the law. They have gone out deliberately and absolutely clearly to recruit local people, and they have found that, with very few exceptions, they have been unable to fill the vacancies. They take grave exception to anybody who says that they undercut in their wages or do not offer people great opportunities. It is a myth, as I say, that there are armies of people wanting to work who cannot work because of immigration.
The huge danger of the argument being advanced by some Opposition Members, as the hon. Member for Streatham (Chuka Umunna) said, is that people play into a narrative that, instead of looking at other factors in life, turns to the stranger and—history tells us the danger of doing this—blames the foreigner, the unknown and the person with a different coloured skin or a different accent, when there are actually other reasons for the discomforts and the problems people have in their lives.
I say to Opposition Members that they should be proud of their fine tradition. What they should be doing is making the case for immigration and then saying this: “Suck it up!” No alternative has been advanced in this place other than the customs union and the single market. Let’s grab it—let’s do it and move on.
The Government and the Labour party are facing some pretty difficult problems, and that is because reality is intruding. Labour is split, as the Secretary of State said the other day, and I am sure we all marvelled yesterday at the bit of negotiation in the Chamber between the Solicitor General and the former Attorney General, the right hon. and learned Member for Beaconsfield (Mr Grieve). That shows me that both parties are intent on pursuing their own internal conversations as well as the matter in hand.
It is not quite one minute to midnight, but it is pretty close. Our European interlocutors are asking us to tell them what we want and they are still not getting an answer. I can say that for industry in Wales, for universities in Wales and for health in Wales, we certainly need an answer, and pretty sharply too. The question for us is this: what is happening in respect of divergence as time progresses? We are getting no real answers.
Last night, I was here late and I took a taxi home. On the way, I asked the taxi driver what he thought of yesterday’s proceedings. His answer, predictably, was, “Why haven’t we left yet? Just get on with it.” I then asked him what he would do about the Land Rover jobs and the problems with the Galileo programme, at which point he said, “You’re from Wales aren’t you? I went up Snowdon once.” That suggests to me that he has a promising career ahead of him as a Brexiteering MP evading the real questions that face us.
As I said in an earlier intervention, the arrangements for the north-south border in Ireland will be very instructive for the arrangements between the EU and the United Kingdom in general. We will see the adoption of certain north-south arrangements, which will inevitably mean that they are adopted in the rest of the UK. I think all Unionists would agree with me in that respect. I asked Pascal Lammy, when he gave evidence to the Brexit Committee, if he knew of any two countries with two customs regimes for different parts of their states. Of course, he said no. To me, that means the arrangements between Dublin and Belfast will be the same as the arrangements between Dublin and Holyhead, and for that matter between Dover and Boulogne. By the way, he was also asked about the effect of having no controls at all, which has been suggested by some Conservative Members. Quite reasonably, he said that abandoning all controls means we would have nothing to bargain with in trade negotiations.
We have heard of a cake Brexit, a red, white and blue Brexit, a hard Brexit, a Brexit for jobs and a green Brexit. My suggestion is for a Welsh cake Brexit, which would entail staying in the single market and the customs union. We have been consistently in favour of that, and it would suit our economy and the requirements we have for health, industry, universities and so on.
Today, the Labour party has an opportunity to defeat the Government. I think we would all love to see that. Instead, however, it seems to have decided to try to water down the Lords amendments and pave the way, eventually, for the Tories to steamroller through a hard Brexit. I do not think we will be supporting them in that.
I rise to talk about environmental measures. In all the weighty subjects discussed today, some may say that is a trivial issue by comparison. I would say that it is not trivial at all: it is about the air we breathe, the rivers from which we get our drinking water and the kind of society we bequeath to future generations. The hon. Member for Wakefield (Mary Creagh), who is sadly not in her place, is a magnificent champion of the environment. She and I started on this issue from exactly the same point: we felt there was a lacuna, a vast hole or governance gap as some have called it, in the Bill.
In my few remarks on Second Reading, I talked about the importance of putting into British law the regulations and laws that have seen our beaches cleaned up and our rivers start to get to a stage where we can be proud of them, where they are achieving what they are supposed to as functioning ecosystems. We are protecting landscapes and doing something to reverse the disaster, the tragedy and the crisis of species decline. We need to replicate, in a bespoke British way, the kind of measures we have benefited from in recent years. The Lords had a pretty good pitch at it, but there were flaws in their amendment.
Not only does new subsection (2) set out the principles on which our environmental protections have been laid, but we have a detailed description of what this public body will look like. The crucial point, however, and the one where I differ from the hon. Member for Wakefield, and perhaps the hon. Member for Brighton, Pavilion (Caroline Lucas), is that the amendment sets a framework on which we can build, as legislators, under future legislation, such as the environmental governance Bill that the Government have announced will soon be laid before Parliament. I think we have got it right, therefore, and I urge Members to support amendment (c) in lieu of Lords amendment 3.
There will be colleagues on the Labour Benches who disagree with my position, and there will be those who still do not know what to think. That is okay—we are all entitled to our views—but there is one opinion that unites Labour Members, the country and perhaps even Government Members: the Government are making a royal mess of Brexit. That is the central fact from which all our decisions must follow.
The Labour Front-Bench amendment to the Lords amendment has many merits, and I sincerely thank my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) and his team for how they have engaged on this issue. They do not have an easy job, but the way they carry it out is a credit to each of them. Their position today would have been an excellent place for a Labour Government to start the negotiations, but I say gently to colleagues that we are not at the start of the negotiations. We are nearly at the end, and our choice will be either to accept or reject a Tory Brexit deal that will tear up many of the economic relationships that have made this country strong, impose new border arrangements in Ireland, pull us out of key agencies and regulations, and leave us scrabbling to put in place new arrangements for which the Government have totally failed to plan.
In rejecting that deal, we will need to propose an alternative that is realistic within the timeframe, and that is where I have a slight difference with Labour Front Benchers, because their amendment is not quite enough. It leaves too many questions unanswered. The EEA as a backstop is appealing not because it is perfect in itself, but because it is infinitely preferable to a Tory deal or no deal. It is just not likely that other options will be deliverable in the time we have.
I turn now to immigration. I am a supporter of immigration and believe it has made us strong. To move to another country to work and live is a fundamentally decent, dignified and brave thing to do—it is the story of my family and the story of our country—but I understand the hesitation of many colleagues. It would be a rare Labour MP who did not understand the strength of feeling that exists in many parts of the country about levels of migration and the perceived lack of controls. I understand that many Members here are just trying to represent their constituents’ views, and that is to their credit, but I would say to those who are hesitating, “Yes, the EEA may be uncomfortable, but it is significantly less uncomfortable than any of the other realistic approaches that are available.” The reality is that a complete red line on free movement will put us on a road that leads to support for either a Tory hard Brexit deal or a no-deal Brexit, and I do not think that that is a road that we want to go down.
Ultimately, this comes down to one question: does concern about immigration trump all other concerns? We must ask ourselves, very honestly, whether it is worth shutting ourselves off from the rest of Europe to deal with the problems of immigration in this country. I do not believe that it is, and that is why I will be supporting Lords amendment 51.
I want to focus on the EEA and the customs union, but first I want to say a little about immigration. A smear has repeatedly been used against my constituents and the people of this country who dared to vote against the political class and against the establishment by voting leave. That smear is that the people who voted leave did so on the basis of some racist, anti-foreigner sentiment. My constituents voted leave, and my constituents are not racists. They are not people who have a problem with immigration; they are people who have been subjected to, and have been at the receiving end of, large amounts of immigration—particularly from the European Union—over a very short period, and that has had a big impact on our community.
My constituents do not resent those who have come to this country. If I walk through Goole, for instance, they say to me, “The people who have come here have worked really hard, but there is no doubt that immigration has put pressure on our housing, has made it easier to employ people in the gig economy”—there is no doubt about that—“and has put huge pressure on our health services.” My constituents do not want to see those people leave the United Kingdom, but they want to know that there is a system that controls immigration properly.
I want us to go out and make the argument for immigration once we have left the European Union. As the right hon. Member for Don Valley (Caroline Flint) pointed out, we can make the case for it only once we have some control over it, so that the public know that their elected representatives are the people who will determine the appropriate net migration and immigration figures for each year. That is what countries such as Canada, Australia or New Zealand manage to do.
I am sick of hearing the suggestion—we have heard it again today—that people who voted for Brexit only did so because of immigration, and that that was only because they were racist. I am also sick of hearing the suggestion—we have heard this today as well—that they did not know what they were voting for. That is a complete and utter insult to the good, hard-working, decent people of the north of England, and particularly to my constituents, who voted leave for very good reasons. One of those reasons was to do with control of our laws and our parliamentary sovereignty.
The one argument that I think the remain campaigners won was that leaving the European Union also meant leaving the single market. That is why I think that the EEA model is not acceptable. Before the referendum, some leave campaigners suggested that the two were separate, but by the end of the campaign that had ceased, and we heard what I thought was an honest debate about the fact that leaving the European Union meant leaving the single market.
I want to say something about the customs union. In this instance, I think that things are a little bit more nuanced. There is no doubt that customs arrangements were not a big part of the referendum campaign. Let me say this in the 30 seconds that are left: I am not a hard Brexiteer, and I am sick of hearing from people who are at both extremes of this debate. Let me associate myself with my parliamentary neighbour, the right hon. Member for Don Valley. I agree that we need to reach a sensible customs arrangement, and the two tests we should apply are, “What is in the economic interests of the UK?” and, “What is in the best interests of maintaining the integrity of the UK?” There should be less debate at the extremes, and more common sense in the middle.
In Knowsley we voted to leave in almost exactly the same proportion as the rest of the country. However, over the past week or so, constituents who have contacted me have wanted me to vote for all the Lords amendments, which I do not intend to do. Some wanted me to vote down all the Lords amendments, although there was a slight majority on this occasion for supporting the Lords amendments, and therefore presumably for a remain-type position.
I have consulted businesses. A business roundtable organised by the Knowsley chamber of commerce last Friday was a really interesting event. Most of the 10 businesses that attended were involved in trade with Europe, in one way or another—either by exporting or by importing raw materials. What they had to say was fascinating.
I will say a word about immigration. I almost always agree with my right hon. Friend the Member for Don Valley (Caroline Flint)—
Having listened to what businesses and my constituents say, I now must make a choice about which, if any, of the amendments to support. I agree with my hon. Friend the Member for Wirral South (Alison McGovern) about the amendment on the customs union tabled by my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer). I am happy and comfortable to support it, and that fulfils one of my obligations to my constituents and businesses in my constituency. However, I also feel that I need to go further and support the EEA Lords amendment. I will refrain from using the analogy employed by my right hon. Friend the Member for Leeds Central (Hilary Benn) about sinking boats and lifeboats, because I am supporting it on a slightly more practical belt-and-braces basis—if one approach does not succeed, we might have the other to fall back on.
I believe that there are practical implications for businesses, and therefore for jobs, if we do not address some of the concerns that businesses have. All we have at the moment are aspirations from the Government. Some of them are lofty aspirations, but we need more than that—we need hard solutions to the real problems that we are going to be confronted with.
On that basis, I accept that now is not the time to be mandating the Government to join the EEA under the terms of Lords amendment 51. If negotiations fail, or if they seem to be going nowhere after the June EU meeting, this would be an appropriate issue to be decided in the Trade Bill. Until that point, however, the Prime Minister should be given the chance to negotiate fully and to come back with her proposals for us to consider.
The Lords amendment on the customs union is a more complicated scenario, as it does not mandate us to join a customs union, as the amendment to the Trade Bill would. Rather, the Lords’ proposal in this Bill is simply that a Minister should lay a report outlining the steps taken to negotiate a customs union. In theory, therefore, the Minister could comply simply by reporting that steps had been taken, even though they were leading nowhere. On the other hand, I appreciate that having this amendment would give some comfort that the Government had not written off a customs union as a fall-back if Brussels were to reject the Prime Minister’s proposals. It also makes a statement that this House rejects the concept of a hard Brexit—a lesson that needs to be understood by many Members of this House.
However, it has been put to us by the Prime Minister that any vote on this issue will, in her opinion, seriously undermine her negotiating position in Brussels. I was told directly that such an amendment could lead Mr Barnier to throw out the Government’s negotiating proposals on the basis that the EU could say that it was being manipulated by them. I would dispute that interpretation, but I also accept that it is ultimately the Prime Minister who is going to negotiate for us on what I believe will be a fair basis.
Furthermore I recognise the Government’s concession a couple of days ago, after no little debate, in allowing the Lords amendment if the words “customs union” were changed to “customs arrangement”. That also needs to be put into the context of the Government’s concession on Northern Ireland in the amendments to Lords amendment 88. Importantly, those amendments require everyone to act with regard to the December 2017 UK-EU joint report. So I suggest that, if we add the “customs arrangement” wording to the Irish compromise in the joint report, which will need to be applied throughout the UK, and throw in the Irish backstop proposals for good measure, we will be much closer to a customs arrangement resembling a customs union than we were before. I note that the right hon. and learned Member for Holborn and St Pancras (Keir Starmer) and various other hon. Members have made the same point.
For all those reasons, and despite all the confusion, the lack of policy and the Brexiteer antics, I have decided to back the Prime Minister in her June EU meetings, and I will vote with the Government on these amendments.
“a world-leading environmental watchdog, an independent, statutory body, to hold Government to account for upholding environmental standards.”
To me, that means at least a watchdog with a bite as well as a bark, not a toothless, neutered, three-legged mutt of a watchdog that cannot even impose financial penalties, much less launch legal action. However, that was all that the Environment Secretary’s overhyped and deeply underwhelming consultation was able to offer when it was belatedly published on 10 May.
Lords amendment 3 seeks to give the watchdog at least a few teeth by giving effect to the claim repeated by Government Members that withdrawal from the EU will not lead to any dilution of environmental standards. Given that, I genuinely do not understand why the Government are objecting to the Lords amendment and instead supporting amendment (a) in lieu, which represents a significant watering down of what the Lords amendment contains.
The amendment in lieu makes no provision to guarantee the independence of the environment watchdog, so we may well end up with a green poodle, not a green watchdog. We need clear guarantees that the replacements for the Commission and the European Court of Justice will be protected from Ministers’ whims. The amendment in lieu massively limits the watchdog’s remit. By deleting the overarching subsection (1) of the Lords amendment, we will lose all the essential requirements for the Government not to remove or reduce any of the rights, powers, liabilities, obligations, remedies and procedures that currently contribute to the protection and, crucially, the improvement of our environment. For example, there is no explicit guarantee that we will have a freely accessible citizens’ complaint mechanism. All such things are all vital components of an effective governance system for protecting the environment. They are not optional add-ons to this lazy attempt at standing up for nature.
As I mentioned earlier, the amendment in lieu limits the scope of the watchdog to central Government, which is absurd given that local authorities are so much responsible for areas of compliance. Ministers would be compelled only to have regard to vital environmental principles, not to act in accordance with them. All those things are good reasons to have grave concerns about this weakening of Lords amendment 3 and to say to the Government that we are running out of time to get the joined-up approach to the environment that they have promised us.
In the minute I have left, I want to make a comment about the single market and customs union. It is notable that every single economic scenario that the Government have produced shows a country that will be worse off by leaving the EU. The only real protection for jobs and the economy is staying inside the single market and the customs union, which is also the only way of achieving a frictionless border in Northern Ireland. It is quite extraordinary to see the Government proudly and loudly leading the country to a poorer future, and it is almost as extraordinary to see the shadow Front-Bench team pretty much complicit in that. The Opposition’s amendment (a) to Lords amendment 51 would not be accepted by the EU and they know it, so I make this plea: do not give this shambles of a Tory Government a free pass to a hard Brexit. It is not too late to reconsider and to back Lords amendment 51. History will not judge kindly those who put party politics first at this crucial moment, when it is precisely those with the least who most need their politicians to be brave.
I have listened to a number of contributions. Those who think the European Union will fundamentally renegotiate free movement are living in another world. I worked closely with the former Prime Minister David Cameron when he tried to renegotiate the terms of our membership, and he worked incredibly hard with every single European leader to try to get some movement on free movement, because he knew how important that would be to the case he was going to argue for our staying in the European Union. I have to tell colleagues on both sides of the House that, frankly, those European leaders were not willing to engage seriously with David Cameron on any meaningful reform. If they had, I suspect the country would have made a different decision. Even with our country having made that decision, European leaders are still not prepared to make any meaningful reform. They might talk about little tiny tweaks here or there that will not make any significant difference, but meaningful reform is not going to happen.
We should not think the EEA is a solution, and we should control our immigration policy. We can then have a generous policy, and we can argue for what we think is the right shape for our immigration policy. That is why I oppose Lords amendment 51 on joining the EEA, and why I support the sensible approach that the Government have set out.
Staying in the single market and the customs union is critical to jobs and prosperity. Trade figures published only last week show that 62.3% of the north-east’s exports go to the EU. The president of the CBI has said today that the UK car industry is facing extinction. Such comments should worry us all, but they should send a chill around every community in the north-east of England. The north-east is home to Nissan, which exports many of the cars it builds. It directly employs around 6,500 people, with more than 25,000 people employed in the supply chain. Everyone in the north-east knows someone who does something for Nissan.
I have never been one of those who say that companies like Nissan will close on Brexit day, but I worry about the long-term investment opportunities in industry in my region. In the north-east we know what happens when an industry is faced with slow but inevitable extinction.
The coal industry once dominated the north-east of England. Today, all the pits have closed, but they did not close overnight. The dozens of collieries that closed did so over several decades because their reserves were depleted and because of the lack of investment.
My father was twice made redundant because the collieries he worked down closed over the space of a decade. Just like Nissan today, and probably more so, back then everyone knew somebody who worked down the pits or at the National Coal Board. With the closure of the coalmines, communities were left behind. Some have not recovered, and the resentments they harbour played into the Brexit vote. There is a message in that for the decisions we are making now on the post-Brexit world. My region has seen industrial extinction in the past, so we have to make sure it does not happen in the future. Therefore, with 62% of our trade being with the EU, it would be a catastrophic mistake to put up barriers to trade if we can avoid it, and I believe the EEA amendment would help to avoid it. The vast majority of Labour MPs in the north-east knew what the economic consequences would be, and the majority of us campaigned to remain in the EU. The vote went the other way, but the economic consequences of leaving remain the same, as do the grievances in some of our communities.
What is the reality of customs union membership? The EU has some of the most complicated trade schedules in the world. Why? Because it is a protectionist organisation. It is there to protect the food producers of France and Spain and the industrialists of Italy and Germany. If we were to join the customs union, we would be accepting in perpetuity whatever the EU decided to do for us. We would no longer ever be able to seek free trade arrangements or new trade deals around the world. We would be dragged into whatever trade war the EU might like to commence around this world, and we would have no voice—we would be able to do nothing about it.
There is a phrase that has not been said this afternoon, and that is vassal state. That is exactly what many Opposition Members would like us to become. We all have a view on the Department for International Development, but one thing is true: aid can work, and it often does, but what really works is trade. It has taken 1 billion people out of poverty around the planet over a generation. Peculiarly, the customs union has managed to do two unique things. It has managed to impoverish the poorest in this world by imposing trade barriers, and it has managed to force the poorest in this country—those on the lowest pay—to pay higher amounts for international goods that we do not produce ourselves, including footwear and food. Let us not slip into the customs union, because the single market will follow and it will mean not leaving the EU.
The truth is that the Government are making a huge mess of Brexit. Two years after the referendum, we still do not know what their position is. The truth is that kicking the can down the road cannot continue to be the Government’s strategy. The clock is ticking and time is running out; we cannot leave everything to the October summit.
I shall vote in favour of the customs union amendments because I believe that to remain in it is vital to manufacturing. Jaguar Land Rover is on the border of my constituency and has recently announced job cuts and the movement of facilities to Slovakia, which I am very concerned about; those announcements were partly down to concerns about Brexit uncertainty.
Today, the CBI president warned that manufacturing sectors, including the car industry, will face extinction if we leave the customs union. He also said:
“There’s zero evidence that independent trade deals will provide any economic benefit to the UK that’s material.”
That is borne out by the Government’s own leaked economic analysis. In trade, geography matters. The EU is on our doorstep and our economy is deeply integrated with its economy.
That brings me to Lords amendment 51 and the Labour Front-Bench amendment (a) to it, both of which I shall support, after careful consideration. These may be complex issues—as a member of the Brexit Select Committee, I have spent many hours hearing evidence about the customs union, the single market, the EEA and the other different models—but my approach to this question is simple: the economy has to come first. The economics are clear, and I feel I have a duty to prioritise jobs, livelihoods and public services for my constituents. I acknowledge that the EEA is not perfect, but, for the minute, the combination of the EEA and the customs union is the only way to avoid a hard border on the island of Ireland.
I acknowledge that my constituents and others have serious and sincere concerns about immigration, but another motivation for voting leave among people in my constituency was a sense that the economy is not working for them. We need a new settlement for working-class communities in our country. We need targeted investment in public services in areas such as mine. We need more teachers in schools and much better early years childcare. Austerity was one reason why we lost the referendum; people really do feel that their economy is not working for them.
The vote to leave the European Union was purely that: a vote to leave the political institutions. That is all that it said on the ballot paper. It said nothing else. I respect that mandate, but it is the right of Parliament, working with the Government, to have a say in how we deliver that and what our future relationship is. My test for that is twofold. First, in every circumstance, we must protect the integrity of the Union of Great Britain and Northern Ireland. As far as I am concerned, that is more important than anything, including referendum results. I believe that the Government have got that message, and the very important step that was taken yesterday meets that test. I support the Government on that, but we must make sure that it is delivered in practice, with no hard border.
Secondly, my other test is to make sure that we look after the economic wellbeing of my constituents and the public services on which they depend. I do not favour some kind of ideological Brexit. There is an attempt to hijack the referendum result in pursuit of a very narrow, ideological version. That is not the pragmatic version that I, as a Conservative, believe in. I am a Conservative because I am a pragmatist. I listen to voices of business and want to put business and jobs at the centre of Brexit.
The customs union is not perfect and I shall not support the EEA amendments tonight, because this is not the Bill for them—this Bill is about process and getting the statute book right—but I say to the Government that the time to have that debate is when we return to the Trade Bill, an amendment to which I have put my name to, along with other Members. If a practical outcome involves something that looks like a union—call it an arrangement; I do not mind—I want to give the Prime Minister the flexibility to achieve that. She is entitled to time to try to achieve that between now and June, so I shall support the Government in all tonight’s votes.
On the legal matters, I am persuaded. It was a great difficulty to have to choose between my right hon. and learned Friend the Member for Beaconsfield (Mr Grieve) and my hon. and learned Friend the Solicitor General. On balance, I am with Lord Judge, Lord Brown of Eaton-under-Heywood and Lord Mackay of Clashfern. The Government have worked hard to improve the legal matters of retained EU law. I have had good and positive conversations with them and hope to continue to do so. The key thing about this is that, for the country’s sake, we have to be pragmatists now. I think that the Prime Minister gets that and I will support her for that reason, but the pragmatist takes nothing off the table, and that is how we should keep it, as of today.
I really wish, Mr Speaker, that I could fly you and Members on both sides of the House north into Scotland, north over the unedifying scenes that we saw earlier today and north into the clear sky of Caithness. I would take you to Scrabster, the small harbour that serves Orkney and Shetland and sits beside Thurso. At Scrabster, I have a constituent, Mr Willie Calder. He and his son, William, run Scrabster Seafoods Ltd, a highly successful company that indirectly employs 100 people in an area where jobs do not grow on trees.
I met Mr Calder and his son a few days ago, and he put the situation to me very clearly. It takes him two days to get his fish products to the markets in the south of France. It takes him one day to get to his markets in the north of France. One day’s extra delay, or even half a day’s extra delay, at customs or a port would ruin him. It is as simple as that. The bottom line—this is where I am keeping it short, Mr Speaker—is this: Mr Calder’s business, Scrabster Seafoods Ltd, matters to me a very great deal. My story is based on first principles, but it explains precisely where I am coming from. I sincerely hope that Members on both sides of the House and both sides of the argument will see where I am coming from. I say to them: please work for the best interests of the people whom I represent. I would be letting them down and betraying them if I did not stand up here and say that.
The reality is that I accept that we are leaving. When I hear myself described in the press as a remainer or a remoaner, or whatever other adjective they want to give me, I have to say that I accept the referendum result, but what I do not accept is the massive damage that would be caused by a hard Brexit. It would damage my constituents’ jobs; it would damage their futures; and I will not support it. I say that loud and clear. For those reasons, I do support the Government’s amendment tonight on the customs agreement. That was something that I stood on in my manifesto. I thought that it was sensible and showed that the Government were willing to negotiate with Europe, build a positive relationship and, more importantly, not junk those economic and cultural ties that are so important to my constituents.
The EEA is not the perfect answer, but it is the framework from which we should work. I know that there are concerns around immigration. The reality is that it is freedom of movement of workers in the EEA and not freedom of movement, so there is already a big shift. We do not as a country apply the immigration controls that we could do. Much of the resentment that has been spoken about by Labour Members was caused by the Labour Government’s failure to apply the brake on the accession countries when they estimated that 12,000 to 15,000 people would come in from Europe; we had just under a million. That is why there has been that big groundswell of resentment.
There are some very sensible and pragmatic solutions out there, and I want to see this Government tackling them and looking at some of the options. The EEA is a framework that Europe understands. We should accept some of that framework and negotiate the opt-outs where we need them, and shape the agreement for the future.
On a further note of honesty, there is nothing that we have debated in the last two days—neither the meaningful vote yesterday, nor indeed the EEA today—that will stop, thwart, block or reverse Brexit. What we have debated in the last two days is how we, as parliamentarians, might properly shape Brexit and try to mitigate some of its worst impacts. That is why so many people have been entirely right to make the basic point that we should not be taking options off the table. The gravest mistake that the Government made in their negotiations was to set those ludicrous red lines right at the beginning, and to strip from the table so many possible options.
The EEA is a realistic, extant treaty that would allow us a safe port in this Brexit storm. It would be a lifeboat for this country. It would have to be amended so as to complement a customs union, in order to guarantee no hard border in Ireland. That is why our sister party is urging Labour Front Benchers, and all of us on these Benches, to support the EEA in conjunction with the customs union, and I will be voting for both tonight. If we allowed it, the EEA is also a means by which—through articles 112 and 113 of the agreement—we might address some of the concerns about immigration that were rightly raised by my right hon. Friend the Member for Don Valley (Caroline Flint).
Ultimately, our job is to try to ensure that we do minimal harm—no harm—to the jobs, opportunities and prosperity of our country and constituents. We cannot do that if we strip away from the negotiating table some of the very few realistic prospects for amending Brexit for the people of this country.
Amendment (c) should not be seen as a stick with which to beat agriculture and industry. It is to hold to account national Government, and rightly so. The Government have an absolute duty to protect the environment for the benefit of our children. This Government, with their 25-year environmental plan, have set a very high bar. We look forward to seeing a lot more meat on the bone, but a public authority looking after the environment will be absolutely essential after Brexit. The amendment clarifies the duty of Ministers: they must take account of, and be held responsible for, the environment.
The Bill is an essential, cast-iron protection that allows us to be ready for Brexit. It is the duty of every Member to ensure that the legislation is in place. It is my duty to represent my constituents in Gordon in the north-east of Scotland, an area dominated by oil and gas; an area that it seeing the highest inward investment in years; and an area of significant environmental beauty, where I am proud to farm and happy to plant my crops despite Brexit. My constituents expect a high level of behaviour from me, and I am proud to represent their interests. I am here to make sure that their voices, and indeed Scotland’s voice, are represented at this vital juncture. I distance myself from the pantomime we saw earlier. I am a Scottish MP and very proud to represent Scotland. The Scottish people want to see sound governance, environmental safeguards and a legal framework that protects the whole United Kingdom.
My constituency is sandwiched between the City of London and Canary Wharf, and although I am no stranger to giving them a hard time for not doing more to create inclusive growth and ensure that the benefits reach everybody, I certainly do not want to see our country’s financial centres, which power our economy, contribute 12% of the taxation that funds our public services and create 2 million jobs, damaged by negotiations that keep us out of the customs union and the single market. If we are serious about dealing with the issues that affect our country, we must recognise the concerns not only about immigration, but about the jobs and livelihoods of the people we have to stand up for.
As other Members have said, the consequences of not being in a customs union and a single market are profound. That is why I will be supporting Lords amendment 51, but with a heavy heart, because I do not want to be in a different position from those on our Front Bench. But I believe that it would be wrong for me not to support it, because that would damage the interests of my constituents and the interests of millions of jobs and livelihoods across our country.
It seems to me that Brexit is in fact quite a simple concept. My constituents knew that they were voting for three things: to have control of our immigration policy, to leave the jurisdiction of the European Court of Justice and to determine our trade policy. That is why it is so essential that we leave both the single market and the customs union. Neither institution is compatible with delivering what my constituents and our country voted for.
That is why I stand in frank disbelief at the nature of some of the comments we have heard this afternoon. I always regret what is called blue-on-blue action, but I cannot stand by the comments made by my right hon. Friend the Member for Broxtowe (Anna Soubry), who said that we have to “suck it up”. My constituents voted to leave the European Union precisely because they were not going to suck it up and because they knew what they wanted, which is for us to leave the European Union.
Fidelity to that vote, to our voters and to the promises that are implicit between the governing and the governed is essential to the health of our democracy, not just in the context of this debate but for the years and centuries that stretch ahead. It is clear to me that, as the right hon. Member for Don Valley (Caroline Flint) said, if we break faith and ignore their voice we will have created the most almighty problem for ourselves. Indeed, we will have lost the chance to have a more sensible debate about issues such as immigration, which have stirred such passions. We will only ever be able to get to a place where we can have a more balanced and constructive conversation once we have accountability in this House for who comes to our country and on what terms.
With that in mind, we have to recognise, when we hear comments about how this is playing to extremists, that the real danger with extremism in our politics is if we ignore what people voted for. We have seen in Germany, in Italy and even in the United States what happens when people believe that their voice is not being respected. That is the danger here—because, my goodness, we will look back on this as the most cataclysmic mistake if we unleash some of the forces which are all too eager for this House to fail to deliver what the British people voted for. That is my warning to colleagues, and that is why I will categorically not vote for any amendment that fails to deliver the Brexit that this country demands.
The truth is that there is no such thing as a jobs-first Brexit outside the single market and the customs union. That presents the Labour party and the Conservative party with some political dilemmas, but we were all sent here to make our constituents’ jobs safer, not to make our jobs easier. The evidence is overwhelming that if this country crashes out with a hard Brexit or, worse, if we are outside the single market and without the benefits that the single market provides, that will damage jobs and hamper livelihoods, and we will not be able to solve all the underlying problems creating the swamp of despair and hopelessness that led to people voting for Brexit.
The European economic area is not perfect, but we should not let perfect be the enemy of good. From listening to what Conservative Members and some of my colleagues have said, I fear that if we continue to kick this down the road and hope that, before the moment of exit, a chance will arise to stop the hardest of hard Brexits, we may find that we have missed the opportunity. I am not going to miss such an opportunity today: I will support their lordships on Lords amendment 51, and I will support our Front-Bench amendment, but I urge every Member of the House to put their country first, not simply pander to the pressure being exerted on all of us.
Both approaches involve significant setbacks, however. Membership of the EEA would mean that we had no control over EU migration, and membership of the customs union would mean that we continued to subcontract our trade policy. This matters because, when it comes to immigration, the hard fact is that we cannot deport a criminal from the European Union unless their sentence is longer than two years, and it is virtually impossible to deport long-term unemployed rough sleepers from the European Union, as the recent European Court of Justice judgment made clear.
I believe that my constituents—indeed, all of our constituents—want their elected representative to take decisions about who can come here and work, and they do not hugely differentiate between individuals from Croatia and those from China or the Commonwealth. They would like us to take such decisions based on the needs of the country, the skills required, and whether the individuals coming here to work have those skills. On that basis, I believe that people in this country do want to see immigrants coming here.
On the customs union, the free trade agreements that the EU has already made are definitely an advantage. For example, we benefit hugely from the agreement with South Korea. However, to say, as some do, that we can never actually do as well as the EU is to underestimate the potential for us out there. Let me highlight the Trans-Pacific Partnership, to which some nine countries have now signed up, because there is a real opportunity for us to become part of that arrangement. Leaving the EU is clearly a risk—it is not a risk that all of us thought was worth the potential return—but if we are to make the most of doing so, membership of the EEA and of a customs union is not the way to satisfy anyone.
Lord Alli, a Labour peer, said on introducing Lords amendment 51 that
“it is up to the elected House to decide on the EEA, not this House.”—[Official Report, House of Lords, 8 May 2018; Vol. 791, c. 58.]
He was right, and I trust tonight that we will vote down Lords amendments 51 and 2, and support the greatest flexibility, which is what the Government need in the negotiations.
On the customs union, I fully support the work that Labour Front Benchers have been doing to secure a proper trading relationship for goods with the European Union once we have left. Our trade deal with South Korea is vital to the ceramics industry, and it is only by continuing those arrangements after exit day that we will be able to sustain growth in that very important industry in my city.
What I do not understand is those who now advocate that we can have some sort of customs union plus EEA membership. I am aware that Monsieur Barnier came out last night and said that that was possible, but as far as I am aware, nobody in this House today has spoken to the members of the European Free Trade Association to ask whether that is something that they are willing to wear. Many Labour Members have recently rightly argued that those who join a club late and then seek to fundamentally change its rules of association should not do so, and it is wrong that we should take that approach into the European Free Trade Association with the intention of trying to change the way it has operated for many years.
No one I have heard this afternoon has advocated joining the EEA without some form of change, whether that be to freedom of movement, the terms and conditions or the way we trade. If we do not believe that the EEA is the right model for us, why do we advocate hitching ourselves to it after exit day? Unpicking ourselves from the EEA will be much more difficult than getting the bespoke deal here and now that practically all of us have spoken about this afternoon. My right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper) made that point when she said that there are elements of the EEA that simply would not work.
There has been much talk about articles 112 and 113 of the treaty around EFTA and the EEA allowing us to put a brake on immigration. Article 112 talks about severe and extreme societal, environmental or economic situations being taken into account for a time-limited period only. It does not address the concerns regarding immigration that were raised with me on the doorstep in Stoke-on-Trent during the general election. I take umbrage at Members who seek to suggest that people such as me and my right hon. Friend the Member for Don Valley (Caroline Flint) raise the issue of immigration simply because we are opposed to it. I want a firm and fair immigration system that allows those from Poland as well as Pakistan to come here, work hard, do their bit and pay their taxes.
I just remind everyone of a key point that we might have overlooked. People say that they would not want free movement to continue after we leave the EU but, whatever happens, it will be continuing through the transition, and we will not even have an emergency brake, a vote or a say. Even an EFTA member will have a say through co-determination rights in the EEA. It also has to be said that the issue would still be under the jurisdiction of the ECJ, rather than the EFTA court, which is a non-political court.
I have always very much argued that we should support the Prime Minister because we want to get that bespoke deal, and I still believe we will get it—it is the best option available to this country, for all the reasons that have been set out, particularly by those who campaigned to leave. It would be very odd if someone took the view that I have and then, just on the eve of an important negotiation, voted to completely change the Government’s negotiating stance. We should be backing the Prime Minister to achieve that deal. The question is what would happen if we did not have one later in the year, and I sincerely hope that we do not get to that point. I simply warn colleagues not to trash this option too much. It is not so much about burning bridges; we could be concreting over the only escape hatch credibly left to us if we get into a crisis.
Let me just address the immigration point, because the hon. Member for Stoke-on-Trent Central (Gareth Snell) raised it in his very good speech. When I intervened on my hon. and learned Friend the Solicitor General, he confirmed that if we end free movement in this country, we also end the fact that we legally restrict unskilled immigration to people from the European Union and, effectively, open it up to 90% of world’s population. That is a legal fact; we will no longer discriminate. Although we will “control” it, it is non-EU immigration that is now rising sharply. EU migration is falling sharply. Why is it falling sharply? In my view, and from what I hear from employers—this is a very welcome thing—it is because the economies of Poland and Romania are growing, and the well-qualified people who have come here to work on farms and so forth are getting good jobs back in their own countries. My hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski), who is of Polish descent, is agreeing, and that is certainly the situation I have found.
We in this Chamber need to debate unskilled immigration: whether we open it up to everyone, whether we have a visa system and whether we ourselves expect to need visas when we travel within Europe. The EEA is a good backstop, but it is not the ideal long-term position, which is why we should vote to support the Prime Minister today.
The idea that we can cherry-pick our relationship with a bespoke British deal, whereby we get the benefits of access to the single market without being a participant in the single market, is an illusion. Whether we have a red cake with great big red cherries or a blue cake with great big blue cherries, the fact is that we will not be able to eat that cake, because we cannot get a better deal or as good a deal as we have in the single market once we have left the European Union.
The reality is that the belief that we could somehow have a bespoke deal that is as good as what we have now was always a fantasy, and the reality is now coming to a head. Because we wasted so much time after triggering article 50, we have ended up in a position where the clock is ticking very, very dangerously. We still have time to stop this process. We still have time to put any deal—if we do get a deal—to the people. But at the end of the day, if we in this Parliament do not assert our control, we will face disaster.
I support Lords amendment 51 on the EEA simply because I think we need a backstop. I predict that we will come back to that issue in the future. I cannot support the Labour Front-Bench amendment to that amendment, because it would take out the EEA, and I will therefore abstain on it.
I support Lords amendment 32, but I would like to clarify what it means for our fishing industry. The amendment does not in any way compromise control over our waters. We will still be leaving the CFP. We will not be subject to the European Fisheries Control Agency and neither will we be required to align with current or future EU fishing regulations. Although the amendment avoids the prevention of the UK replicating EU law if we so require, the UK Government’s ability to diverge from the EU and to pull out of EU agencies, including in areas such as fisheries or agriculture, should not be ignored or forgotten in the wake of the amendment.
The amendment stipulates that nothing in the Bill will prevent the UK from replicating in domestic law any EU law made after Brexit, or from continuing to participate in, or have a formal relationship with, EU agencies. More importantly, it does not require the UK to align with the EU or to participate in new agencies, and nor does it introduce a presumption that the UK will do so. It does not change the fact that the UK will automatically leave the CFP and regain its exclusive economic zone as an independent coastal state when we leave the EU.
In 2017, my vote went up 50%. It did so because I promised to do everything I could to keep us in the single market and the customs union. How do we expect Captain Fox to boldly go where other trade negotiators have not gone before and negotiate better for Britain on its side versus team EU, which is much, much bigger? We need the EU to get the best deal versus China, which has already secured Hinkley and High Speed 2. China will overwhelm us. We can do more deals from the EU, as Germany has done, but alone, faced with the United States, we know that “America First” will overwhelm us. Team EU is the way to get the best trade deals.
I also support the EEA, the off-the-shelf opportunity for the single market. I do not accept the points made about migration. We should introduce and impose the existing EU laws on limiting the right of people to receive benefits or stay here if they do not have a job. What is more, the EU has already decided to equalise wages and allowances, so there will be no undercutting. So-called foreigners contribute 35% more in taxation than they consume in public services.
I also believe that if there is no deal—if the House rejects the deal—the public should have the final say. It would be intolerable to force-feed people a meal that is unfit for consumption and that they did not order. People who voted leave are saying that it is too costly and too complex, that they did not vote for this, that they do not want to become a poorer, divided, isolated, insecure nation. If the deal does not include the single market and customs union, it will be intolerable not to have a public vote. The choice should not be between the cold water and a safety boat; there should be a choice to stay in the good ship EU—to prosper from, and enjoy the strength and security that come with, our membership of the EU.
In 1975, the British people voted to stay in the Common Market, but over time they saw the European Economic Community morph into the European Community and then the European Union. People see the EU’s diplomatic corps’ development of military structures and its attendance at the G7 summit as moves to create a United States of Europe. People saw that happening and rightly wanted to decide: should we stay or should we go? We gave the decision to the people by a margin of six to one, and we have to respect their decision.
Contrary to the opinion of those in some places, people did not ditch strongly held remain views because of a few words on the side of a shiny red bus. They decided to vote leave on the basis of decades of lived experience in the EU. People will look back to the EU’s wine lakes and butter mountains; they will look at the failings of the common agricultural and fisheries policies; they will see billions of British pounds exiting the country when that money could be providing vital services here.
People know that Britain always delivers on international obligations. We pay our full contribution of 0.7% of gross national income towards foreign aid, but Germany manages only 0.41%. Britain meets her NATO obligation by spending 2% of GDP on defence, but Germany spends only 1.2%. Germany fails to meet her international obligations and saves the money for her own people, while the British taxpayer coughs up every penny demanded. People know that the EU’s inability to fix the crisis of youth unemployment in so many EU countries is testimony to its inability to reform and serve the interests of its citizens.
Some people highlight divisions across the country caused by the referendum result, but then suggest that there should be a second referendum, as though the best of three were a good solution.
The idea that Parliament ought to engage in a process that could result in a war of attrition until we end up remaining is repellent. The referendum decision was clear, and we need to leave as soon as possible. Let us negotiate the best deal in the time remaining, but let us also recognise that it is in the interests of the EU as much as those of the UK to win a good deal, not least because of the EU’s desperate need for £40 billion of British taxpayers’ money.
I will be voting for amendment (a) to Lords amendment 51, tabled by my right hon. Friend the Leader of the Opposition, and not for the Lords amendment itself, but I urge the Lords to read the report of this debate and note the range of views expressed by Members who have said that they will support amendment (a). They have also said that they will vote against the Lords amendment, that they will abstain—as I intend to do—or that they will vote for it, but they are aligned on the wording of my right hon. Friend’s amendment.
I have one simple message for the Lords. I urge them to take heed of that fact, and, when they are deliberating on the Bill, to ensure that any amendment that they send back to this House unites all its Members. We need to unite behind an amendment that will influence the Government, and ensure that they take the right approach in future negotiations.
If there is one message that the referendum sent us, it is surely this: that the traditional working-class communities across the United Kingdom will no longer be ignored. The key reason they voted for me and got rid of my Labour predecessor was to ensure that we delivered on Brexit. We must fulfil that promise and reject amendments tabled in the other place.
The people of Stoke-on-Trent want Brexit to refresh the parts of Britain that the EU did not effectively reach, and they want a closer policy focus on how local and regional Britain can benefit from a global trading future. That will be possible only if we leave the customs union, which will allow us to pursue our own independent trade policies, making and enhancing our trade links with countries throughout the world. It will cause a crisis of democracy if we fail to deliver the result that people voted for, to get the best out of Brexit from new trade around the world and to reject the Lords amendments.
It is also critical that we leave the EEA and regain control of our borders. Immigration and ending the free movement of people was a primary reason for people in Stoke-on-Trent voting to leave the EU. They want us to put in place an effective, fair immigration system that will ensure the number of people coming here is at a manageable level that does not put undue pressures on local services, and that those coming here make a meaningful contribution to our country. It is essential that the House rejects amendments that would keep us saddled to the EEA and the continuation of free movement without any control or say. Nothing will lead the electorate to hold Parliament in contempt quite like Parliament holding the electorate in contempt, but that is precisely what the House of Lords is asking us to do. Instead of delivering for the House of Peers, we should be positive about delivering the people’s choice. We must embrace the opportunities that come from taking back control, and, most of all, we must get on with it.
The people have given us an instruction to leave the European Union. We must stop those trying to frustrate and sabotage Brexit. This House must obey the British people, and so must the House of Lords.
That is why I have been arguing for over 18 months for an EEA-based Brexit, in which we would not only retain a very high degree of access to the single market but substantially increase our control over our laws and our borders. EEA countries are not subject to the supremacy of EU law, nor do they fall under the direct jurisdiction of the European Court of Justice. EEA countries can shape legislation through consultation with the EU Commission and have the power to block new single market rules. Moreover, Michel Barnier has made it crystal clear that EEA plus customs union is a perfectly viable and realistic option.
The EEA agreement also offers the suspension and reform of the free movement of labour. Articles 112 and 113 of the agreement are safeguard clauses that would offer significantly greater control over our borders and labour market. We should compare and contrast that solid treaty-based mechanism with the more open-ended framing of the Labour Front-Bench amendment, which makes no mention at all of free movement. The fact is that when it comes to free movement, our Front-Bench amendment is less clear and less tangible than the EEA option.
The overarching purpose of the EEA is
“to promote a continuous and balanced strengthening of trade and economic relations”.
That is very different from the overarching purpose of the EU, which is to form an ever closer union. An EEA Brexit would therefore take us back to the origins of the European economic area, an agreement based on mutually beneficial trade rather than on political union.
If there is one lesson to learn from these Brexit negotiations, it is that the EU operates on the basis of rules, laws, models, treaties and legal precedents. By committing to the EEA, Britain would be joining a set of institutions that for 25 years has helped deliver frictionless trade between the EU and the EEA-EFTA countries, while also protecting those countries’ interests.
I therefore urge Members on both sides of the House to join me in showing their backing for an EEA-based Brexit that strikes the right balance between prosperity and sovereignty. It is the only form of Brexit that can have a hope of reuniting our deeply divided country.
The Brexiteers across the Chamber have been saying for the past two days that we are trying to frustrate the process, but that is Brexiteer-speak for “We don’t have any answers to the questions, so we’ll disregard what you are saying and your attempts to have a debate in the country about what is in the best interests of the people we seek to represent.” The only people who are trying to undermine and frustrate the Brexit negotiations are the Government themselves. How can we possibly allow the European Commission and the 27 other nations of the European Union to negotiate a bespoke deal, or any other deal, with us when the Cabinet themselves cannot even agree? Away day after away day will not sort out the deep divisions within the Government, and the only conclusion is that this will damage the country.
I say to every hon. Member here tonight: let us take the opportunity that is in front of us now. This is the time for the 650 Members of this Parliament to stand up, so that when we look back in 20 or 30 years’ time, we will be able to look our constituents in the eye and say with confidence that we did all we possibly could to save this country from economic armageddon.
UK plc needs to prioritise its largest customer, which is surely the EU customs union, and build its markets elsewhere. That is what the CBI says, and Paul Drechsler said this morning that UK manufacturing would be seriously threatened by a hard Brexit and switching to WTO rules. The public expect us in this place to act in their best interests and in the best interests of the economy, of jobs and of businesses. For that reason, we must stay in a customs union and some form of single market.
In recent months, we have seen the storm clouds gather. We have seen faltering growth, rising inflation and major manufacturing job losses. We have seen not only the prospect but the reality of global trade wars. Protectionism is around us everywhere and racism and hate crime are on the rise. There are faint echoes of the 1930s. Now is not the time to desert our neighbours in Europe. That is why I will be voting with my Front Benchers for Lords amendment 51, to keep all the options on the table and to ensure that we achieve the best negotiated outcome for the public, for our businesses and for our economy.
While a majority voted to leave, no one in this country voted to be worse off, no one voted for instability in Northern Ireland and no one voted for a shortage of NHS staff. A cliff-edge hard Brexit would be too far for most of those who wanted to leave, as well as for my constituents, a majority of whom voted to remain. After two years of Government indecision and distraction by hard Brexiteers, it is time for a sensible way forward. I urge colleagues across the House to consider the issues carefully and to reflect on the many real concerns about the direction in which we are currently heading.
The EEA offers us access to the single market with the greatest flexibility that we are ever going to achieve, and, best of all, it already exists. In two years’ time, we will never be able to set up all the regulatory systems, checks and standards that we need to satisfy the EU that we are a reliable partner in our own right. It is only in this place that we seem to get away with bending the laws of nature or, in this case, common sense to ensure that we can make the argument that that is the case. We will not get the exact same benefits outside of the single market.
The truth is that the Government are not negotiating with the EU; they are negotiating with themselves and pretending that that has the same consequences. The people on the frontline of the economy are watching, and they are increasingly horrified by what they see. After two years of negotiations, the Government have returned with only one bankable promise: we will get another two years of negotiations. This time, however, we will be outside the EU, trying to negotiate exactly the same benefits that we have just given up. Negotiation is the new normal. There will be an ever-ending set of negotiations that are never going to end. People seem to believe that a set of negotiations will end in March or in two years’ time, but we will have a new set of negotiations every time the single market evolves, and that will open up every single one of the wounds that have been on display here today, not just once, not just for the next two years, but indefinitely.
There is a lot I would like to say about the honest challenges raised by my right hon. Friend the Member for Don Valley. She spoke to us in a respectful way, and I hope that she will see that I and others have been respectful to her and always will be.
We are constantly being told what they did not vote to do, and I tell this House today what they did vote to do: they voted to leave the European Union. What we are having is a dress rehearsal for an attempt to reverse the decision they took. The single market and the customs union are the vanguard for keeping Britain in the European Union by the back door.
It is also about ending the vast payments we make to the EU, for which we are somehow supposed to be grateful because we get a little bit of it back.
In short, the British public voted to become an independent, self-governing country again. It is incumbent on this House to deliver on that verdict and to reject the Lords amendments, which have only one aim, which is to thwart the democratic will of the British people.
Question put, That amendment (a) to Lords amendment 51 be made.
The Speaker put forthwith the Questions necessary for the disposal of the business to be concluded at that time (Standing Order No. 83F).
Motion made, and Question put, That this House disagrees with Lords amendment 51.—(Mr Robin Walker.)
The House proceeded to a Division.
Motion made, and Question put, That this House disagrees with Lords amendment 1.—(Mr Robin Walker.)
The House proceeded to a Division.
Motion made, and Question put, That this House disagrees with Lords amendment 2.—[The Solicitor General.]
Lords amendment 2 disagreed to.
Government amendments (a) and (b) made in lieu of Lords amendments 1 and 2.
Motion made, and Question put, That this House disagrees with Lords amendment 5.—(The Solicitor General.)
Lords amendment 5 disagreed to.
Schedule 1
Further provision about exceptions to savings and incorporation
Motion made, and Question put, That this House disagrees with Lords amendment 53.—(The Solicitor General.)
Government amendment (a) made in lieu of Lords amendment 53.
Motion made, and Question put, That this House disagrees with Lords amendment 4.—(The Solicitor General.)
Lords amendment 4 disagreed to.
Motion made, and Question put, That this House disagrees with Lords amendment 3.—(The Solicitor General.)
Lords amendment 3 disagreed to.
Government amendments (c) and (d) made in lieu of Lords amendment 3.
Lords amendment 24 disagreed to.
Government amendment (a) in lieu of Lords amendment 24 proposed.
Government amendment (ii) made to Government amendment (a) in lieu of Lords amendment 24.
Government amendments (a), as amended, and (b) made in lieu of Lords amendment 24.
Lords amendments 32, 6 to 9, 33 to 36, 38, 40 to 42, 159 to 161, 163, 164, 166 to 168, and 170 agreed to.
Motion made, and Question put forthwith (Standing Order No. 83H), That a Committee be appointed to draw up Reasons to be assigned to the Lords for disagreeing to their amendments 4, 5, 10, 20, 37, 39, 43, 45, 51, 52, 110, 125 and 128;
That Mr Steve Baker, Robert Buckland, Emma Hardy, Jessica Morden, Mark Spencer, Keir Starmer and Jeremy Quin be members of the Committee;
That Robert Buckland be the Chair of the Committee;
That three be the quorum of the Committee.
That the Committee do withdraw immediately.—(Paul Maynard.)
Question agreed to.
Committee to withdraw immediately; reasons to be reported and communicated to the Lords.
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