PARLIAMENTARY DEBATE
Leaving the EU - 26 November 2018 (Commons/Commons Chamber)
Debate Detail
At yesterday’s special European Council in Brussels, I reached a deal with the leaders of the other 27 EU member states on a withdrawal agreement that will ensure our smooth and orderly departure on 29 March next year; and, tied to this agreement, a political declaration on an ambitious future partnership that is in our national interest. This is the right deal for Britain because it delivers on the democratic decision of the British people. It takes back control of our borders, and ends the free movement of people in full once and for all, allowing the Government to introduce a new skills-based immigration system. It takes back control of our laws; it ends the jurisdiction of the European Court of Justice in the UK and instead means our laws being made in our Parliaments, enforced by our courts. It takes back control of our money, ending the vast annual payments that we send to Brussels, so that we can instead spend taxpayers’ money on our own priorities, including the £394 million a week of extra investment into our long-term plan for the national health service.
By creating a new free trade area with no tariffs, fees, charges, quantitative restrictions or rules of origin checks, this deal protects jobs, including those that rely on integrated supply chains. It protects our security, with a close relationship on defence and on tackling crime and terrorism, which will help to keep all our people safe. It also protects the integrity of our United Kingdom, meeting our commitments in Northern Ireland and delivering for the whole UK family, including our overseas territories and the Crown dependencies.
On Gibraltar, we have worked constructively with the Governments of Spain and Gibraltar. I want to pay tribute, in particular, to Gibraltar’s Chief Minister, Fabian Picardo, for his statesmanship in these negotiations. We have ensured that Gibraltar is covered by the whole withdrawal agreement and by the implementation period. And for the future partnership, the UK Government will be negotiating for the whole UK family, including Gibraltar. As Fabian Picardo said this weekend:
“Every aspect of the response of the United Kingdom was agreed with the Government of Gibraltar. We have worked seamlessly together in this as we have in all other aspects of this two year period of negotiation. Most importantly, the legal text of the draft Withdrawal Agreement has not been changed. That is what the Spanish Government repeatedly sought. But they have not achieved that. The United Kingdom has not let us down.”
Our message to the people of Gibraltar is clear: we will always stand by you. We are proud that Gibraltar is British, and our position on sovereignty has not and will not change.
The withdrawal agreement will ensure that we leave the European Union on 29 March next year in a smooth and orderly way. It protects the rights of EU citizens living in the UK, and UK citizens living in the EU, so they can carry on living their lives as before. It delivers a time-limited implementation period to give business time to prepare for the new arrangements. During the implementation period, trade will continue on current terms so businesses only have to face one set of changes. It ensures a fair settlement of our financial obligations—less than half of what some originally expected and demanded. It meets our commitment to ensure there is no hard border between Northern Ireland and Ireland—and also no customs border in the Irish sea—in the event that the future relationship is not ready by the end of the implementation period.
I know that some Members remain concerned that we could find ourselves stuck in this backstop, so let me address this directly. First, this is an insurance policy that no one wants to use. Both the UK and the EU are fully committed to having our future relationship in place by 1 January 2021, and the withdrawal agreement has a legal duty on both sides to use best endeavours to avoid the backstop ever coming into force. If, despite this, the future relationship is not ready by the end of 2020, we would not be forced to use the backstop. We would have a clear choice between the backstop or a short extension to the implementation period. If we did choose the backstop, the legal text is clear that it should be temporary and that the article 50 legal base cannot provide for a permanent relationship. And there is now more flexibility that it can be superseded either by the future relationship, or by alternative arrangements which include the potential for facilitative arrangements and technologies to avoid a hard border on the island of Ireland.
There is also a termination clause, which allows the backstop to be turned off when we have fulfilled our commitments on the Northern Ireland border. And there is a unilateral right to trigger a review through the Joint Committee and the ability to seek independent arbitration if the EU does not use good faith in this process. Furthermore, as a result of the changes we have negotiated, the legal text is now also clear that once the backstop has been superseded, it shall “cease to apply”. So if a future Parliament decided to then move from an initially deep trade relationship to a looser one, the backstop could not return.
I do not pretend that either we or the EU are entirely happy with these arrangements. And that is how it must be—were either party entirely happy, that party would have no incentive to move on to the future relationship. But there is no alternative deal that honours our commitments to Northern Ireland which does not involve this insurance policy. And the EU would not have agreed any future partnership without it. Put simply, there is no deal that comes without a backstop, and without a backstop there is no deal.
The withdrawal agreement is accompanied by a political declaration that sets out the scope and terms of an ambitious future relationship between the UK and the EU. It is a detailed set of instructions to negotiators that will be used to deliver a legal agreement on our future relationship after we have left. The linkage clause between the withdrawal agreement and the declaration requires both sides to use best endeavours to get this legal text agreed and implemented by the end of 2020, and both sides are committed to making preparations for an immediate start to the formal negotiations after our withdrawal.
The declaration contains specific detail on our future economic relationship. That includes a new free trade area with no tariffs, fees, quantitative restrictions or rules of origin checks—an unprecedented economic relationship that no other major economy has. It includes liberalisation in trade in services well beyond World Trade Organisation commitments and building on recent EU free trade agreements. It includes new arrangements for our financial services sector, ensuring that market access cannot be withdrawn on a whim and providing stability and certainty for our world-leading industry. And it ensures that we will leave EU programmes that do not work in our interests. So we will be out of the common agricultural policy, which has failed our farmers, and out of the common fisheries policy, which has failed our coastal communities.
Instead, as the political declaration sets out, we will be “an independent coastal state” once again. We will take back full sovereign control over our waters, so we will be able to decide for ourselves who we allow to fish in our waters. The EU has maintained throughout this process that it wanted to link overall access to markets to access to fisheries. It failed in the withdrawal agreement and it failed again in the political declaration. It is no surprise that some are already trying to lay down markers again for the future relationship, but they should be getting used to the answer by now: it is not going to happen.
Finally, the declaration is clear that whatever is agreed in the future partnership must recognise the development of an independent UK trade policy beyond this economic partnership. For the first time in 40 years, the UK will be able to strike new trade deals and open up new markets for our goods and services in the fastest growing economies around the world.
As I set out for the House last week, the future relationship also includes a comprehensive new security partnership, with close reciprocal law enforcement and judicial co-operation to keep all our people safe. At the outset we were told that, being outside of free movement and outside of the Schengen area, we would be treated like any other non-EU state on security. But this deal delivers the broadest security partnership in the EU’s history, including arrangements for effective data exchange on passenger name records, DNA, fingerprints and vehicle registration data, as well as extradition arrangements like those in the European arrest warrant. And it opens the way to sharing the types of information included in the European criminal records information system and Schengen information system II databases on wanted or missing persons and criminal records.
This has been a long and complex negotiation. It has required give and take on both sides, and that is the nature of a negotiation. But this deal honours the result of the referendum, while providing a close economic and security relationship with our nearest neighbours, and in so doing, offers a brighter future for the British people outside of the EU. And I can say to the House with absolute certainty that there is not a better deal available—[Interruption.] My fellow leaders were very clear on that yesterday.
Our duty as a Parliament over these coming weeks is to examine this deal in detail, to debate it respectfully, to listen to our constituents and to decide what is in our national interest. There is a choice which this House will have to make. We can back this deal, deliver on the vote of the referendum and move on to building a brighter future of opportunity and prosperity for all our people, or the House can choose to reject this deal and go back to square one. No one knows what would happen if this deal does not pass. It would open the door to more division and more uncertainty, with all the risks that will entail.
I believe our national interest is clear. The British people want us to get on with a deal that honours the referendum and allows us to come together again as a country, whichever way we voted. This is that deal—a deal that delivers for the British people. I commend this statement to the House.
The Prime Minister may want to try to sell yesterday’s summit as a great success, but, to borrow a phrase, the reality is “nothing has changed”. She says that, if we reject this deal, it will take us back to square one. The truth is that, under this Government, we have never got beyond square one. The botched deal is a bad deal for this country, and all yesterday did was mark the end of this Government’s failed and miserable negotiations.
There can be no doubt that this deal would leave us with the worst of all worlds—no say over future rules and no certainty for the future. Even the Prime Minister’s own Cabinet cannot bring themselves to sell this deal. The Foreign Secretary said yesterday:
“This deal…mitigates most of the negative impacts”.
That is hardly a glowing endorsement. The silence from much of the rest of the Cabinet is telling. They know that these negotiations have failed and they know it will leave Britain worse off. In fact, the National Institute of Economic and Social Research confirmed that today, saying that the Prime Minister’s deal would mean our economy would be 3.9% smaller than it would otherwise be. This is more than our net contribution to the European Union, which is currently £8.9 billion a year—about £170 million per week. So why is the Prime Minister claiming that extra money to the NHS will be due to the Brexit dividend? Of course, we look forward to the official Treasury forecasts, and indeed the legal advice that this House voted to see nearly two weeks ago.
The Prime Minister’s claim that this deal takes back control over our borders, money and laws is, frankly, a fallacy. The reality is the opposite. She says that the political declaration should give us comfort that the Northern Ireland backstop will not be needed. But, in June 2020, this country will be faced with a stark choice: we can agree to extend the transition period, or accept the backstop. So can the Prime Minister confirm that, under her deal, if we are to avoid the backstop, we will have to accept whatever the European Union demands to extend the transition period—leaving a choice of paying more money without a say on the rules, or entering a backstop leading to a regulatory border down the Irish sea? So much for taking back control of our borders, money and laws.
It may not end there. The President of France, President Macron, has already made clear what his priorities will be in negotiating Britain a future deal. On Sunday he said:
“We will concentrate our efforts in order to obtain access to the British waters before the end of the transition period. And of course all of our fishermen will be protected.”
Is it not the case that, under the Prime Minister’s botched deal, we will have to agree to those demands on access to waters and quota shares if we want to finalise a future trade deal or extend the transition—breaking every promise the Prime Minister, the Environment Secretary and the Scotland Secretary have made to our fishing industry and our coastal communities?
There was another climbdown over Gibraltar at the weekend. Is it not the case that Spain now has a role over Gibraltar benefiting from any future relationship? That is still to be negotiated, not something the Prime Minister presented to the Commons last week.
In two weeks’ time, this House will begin voting on a legally binding withdrawal agreement and the vague wish list contained in the political declaration. The Prime Minister would be negotiating that future agreement from a position of profound weakness—threatened with paying more to extend the transition, with no say over our money, laws or borders, and at risk of the utterly unacceptable backstop, which was only made necessary by her own red lines, most of which have since been abandoned by her. Is it in the national interest for the Prime Minister to plough on when it is clear that this deal does not have the support of either side of this House or the country as a whole? Ploughing on is not stoic; it is an act of national self-harm. Instead of threatening this House with a no-deal scenario or a no-Brexit scenario, the Prime Minister now needs to prepare a plan B—something her predecessors failed to do. There is a sensible deal—[Interruption.] There is a sensible deal that could win the support of this House, based—[Interruption.]
There is a sensible deal that could win the support of this House, based on a comprehensive customs union and a strong single market deal that protects rights at work and environmental safeguards.
The Prime Minister may have achieved agreement across 27 Heads of State, but she has lost the support of the country. Many young people and others see opportunities being taken away from them. Many people who voted remain voted for an outward-looking and inclusive society, and they fear this deal and the Prime Minister’s rhetoric in promoting it. Likewise, many people from areas that voted leave feel this deal has betrayed the Brexit they voted for—that it does not take back control, will not make them better off and will not solve the economic deprivation that affects far too many communities, towns and cities across this country. This deal is not a plan for Britain’s future; so, for the good of the nation, the House has very little choice but to reject it.
The right hon. Gentleman said that our deal did not bring back control of our borders, but of course it does because it brings an end to free movement once and for all. I note that the Labour party has never been able to stand up and actually say it wants to bring an end to free movement once and for all, and that is because it is not responding to the real needs and concerns of the British people on these issues. The British people want control of our borders and an end to free movement, and this deal delivers it.
I was very interested to hear that it now appears to be Labour party policy to be in both the single market and the customs union. [Interruption.] I hear yeses from the Labour Front Bench. There was a time when the right hon. Gentleman talked about the importance of an independent trade policy and negotiating our own trade deals. As a full member of the customs union, in which he wants us to remain, we cannot do that, so again he has gone back on his words in relation to these issues.
The right hon. Gentleman talked about President Macron’s comments about access to waters. I recognise that this has raised a question about our being in the backstop. For the benefit of all those who are concerned, and all those who have commented on this, it is important to recall that if we were in the backstop, we would be outside the common fisheries policy and we would be deciding who had access to fish in our waters.
The right hon. Gentleman mentioned Gibraltar. I quoted the Chief Minister of Gibraltar, who made it very clear, as I did, that this Government stood by Gibraltar and resisted changes to the withdrawal agreement that the Spanish Government wished to make. We are clear that Gibraltar’s sovereignty will not change. It has not changed and will not change. We are proud that Gibraltar is British.
Finally, the right hon. Gentleman talked about dealing with issues with our economy in those parts of the country where we need to enhance and improve our economy. It is absolutely clear that the one thing that will never deliver for our economy is his policy on borrowing, taxing and spending. It is a balanced approach to the economy that delivers.
My question for my right hon. Friend is this: if the Government, going down the road to a negotiation, are heading toward that point when the backstop is invoked, does that not mean that Mr Macron is right and we will come under intolerable pressure to agree to almost anything to avoid our entry into what my right hon. Friend rightly says is something we never want to be in?
While I recognise the depth of concern that this is not a situation that the UK wants to be in, nor is it a situation that the European Union wants us to be in. That is because—strange though it may seem to some Members of this House—there are members of the European Union who actively think that the backstop would be a good place for the UK because of its access to the EU markets without having financial obligations and without free movement. That is why they do not want us to be in the backstop either. Neither of us wants to invoke it—the Taoiseach has been clear about that. We want to ensure that the future relationship replaces it and delivers our commitment to the people of Northern Ireland.
The Prime Minister’s deal carries no majority in this House and has split those on her own Benches. It means that a blindfold Brexit is now certain. There is no long-term agreement on our trading relationship with Europe; it is a deal full of ifs and buts. Crucially, here we are again with another sell-out of the Scottish fishing industry by a Tory Government. We have been here before: we were sold out by Ted Heath and we have been sold out repeatedly by Tory Governments. Under this agreement, fishing boats registered in Northern Ireland would continue to gain zero-tariff access to the EU and UK markets, but fishing boats registered in Scotland and other parts of the UK would not.
We now know that the EU will start negotiations based on existing quota shares. That is not taking back control of our waters; it is the EU exercising an effective veto. Scottish fishing communities have been duped once again by the Conservatives. The Scottish National party will not—we cannot—accept this sell-out by the Conservatives. I call upon the Secretary of State for Scotland and the Secretary of State for Environment, Food and Rural Affairs to search their consciences, because their fingerprints are all over this.
The agreed declaration states that the transition period after leaving the EU could be extended by one or two years. Does the Prime Minister accept that that means that the UK would almost certainly be in the CFP with no voting rights for another one or two years, totally contrary to what the Scottish Secretary has said? The Prime Minister says the deal ends uncertainty. It does not end uncertainty for Scotland’s fishing sector or for the future state of the economy, which faces years of turbulence in a bureaucratic tangle.
There is talk of a Brexit TV debate. Will the Prime Minister debate with the First Minister of Scotland? The ways that Scotland’s interests have been dismissed by the UK Government throughout this process demonstrate the real cost of not being an independent country able to take our own decisions. The day will come when Scotland will be an independent country. We on the Scottish National party Benches will continue to work across parties to put in place a deal that works for Scotland and we will support another referendum on EU membership.
The right hon. Gentleman devoted the majority of his comments to the common fisheries policy. He talked about a sell-out of Scottish fishermen. The real sell-out of Scottish fishermen is the SNP’s policy to stay in a common fisheries policy. Who has been standing up for Scottish fishermen in this House? Conservative Scottish Back Benchers have been. All the SNP wants to do is stay in the common fisheries policy and that would indeed be a sell-out of Scottish fishermen.
“in whole or in part”
and
“shall cease to apply…in whole or in part.”
We need accuracy, because it is the legal text that matters, and that is what will bind the country. As the Chancellor has rightly said that the backstop is bad for the Union and bad for the economy—that is what he has said—can she tell us what bits are so bad for the Union?
I recognise the concern that has been expressed about our ability to negotiate free trade deals with other countries on the basis of the arrangement that we are putting in place with the EU for our future relationship. We will be able to negotiate those free trade deals, but I think every Member of the House should be aware that when they are being considered, there will be issues that the House will want to consider, which will be nothing to do with whether or not we have a particular relationship with the European Union. The House will want to consider animal welfare standards. The House will want to consider environmental standards. Those are the issues that Members will wish to consider when it looks at the free trade deals, but it is absolutely clear that we will be able to negotiate those deals with the relationship that is being proposed.
“it is the clear intent of both Parties to develop in good faith agreements giving effect to this relationship”.
This is not about some other sort of relationship; it is about what is in this document.
The right hon. Lady asked whether it was Canada or Norway. I said right at the beginning of this process that we should get away from thinking of “on the shelf” models that already exist. What is being proposed here, and what is acknowledged from the European Union, is a relationship of unprecedented depth which has not been offered to any other major advanced economy. It is a relationship which shows that we are not just another third country.
I have responded before to questions about the second referendum issue, and it is very simple: I think that it is absolutely right that this House and politicians should see it as a duty to implement the vote the British people gave to leave the European Union.
I repeat the point I have made previously in relation to the £39 billion: I think it would be wrong for this House to believe that, on leaving, the United Kingdom will have no legal obligations to pay money to the European Union. There are legal obligations to pay money to the European Union, and I think it is important that we abide by those obligations.
“Anything which looks like one half of the country ‘winning’ and the other half ‘losing’ is disastrous”.
In that case, does the Prime Minister agree with him? If so, what was the point of holding the referendum in the first place?
Most people here in the United Kingdom want to see people coming to this country with skills and wanting to make a contribution—the hon. Lady’s husband has made a contribution as a GP here in this country—and they want people to be judged, as we will, on their skills and on their contribution to our economy, rather than simply on where they come from.
“a fisheries agreement is a matter of priority, and should build on, inter alia, existing reciprocal access and quota shares.”
When one compares that with the Prime Minister’s statement today, one can understand why our fishermen are anxious. This situation arises only because the Prime Minister agreed to include fisheries in the transitional arrangements. With the benefit of hindsight, does she now agree that that was a mistake?
“have been settled together on the basis that nothing is agreed until everything is agreed.”
In the light of the Prime Minister’s responses to my right hon. Friends the Members for Sevenoaks (Sir Michael Fallon) and for Haltemprice and Howden (Mr Davis), why—if that sentence is correct—does it not mean that the £39 billion is contingent upon us getting agreement on the future arrangements?
“a deep and special partnership”
and “a comprehensive…customs agreement” with Europe? Does this deal deliver on that?
“ensure that…no new barriers to living and doing business within our own Union are created”.
She went on to say that
“we will…bring an end to the jurisdiction of the European Court of Justice in Britain… Because we will not have truly left the European Union if we are not in control of our own laws.”
We are now facing a situation where part of our country is likely to be treated differently—Northern Ireland. And is it not the case that, under article 175 and the dispute mechanism, if both sides cannot agree, the ECJ will be the final arbiter?
“the United Kingdom shall refrain, during the transition period, from any action…which is likely to be prejudicial to the Union’s interest”.
Does this mean that the UK will be unable, for example, to cut taxes, regulate businesses such as Uber and disagree with EU foreign policy in the United Nations, and why is this clause not reciprocated by the EU?
“deep regulatory and customs cooperation”
covering goods—probably the very goods that people want to sell to us?
“I am clear that we will become an independent coastal state and that we will be able to take back that control. We will be able to make those decisions and negotiate on our own behalf on those issues, rather than it being done by the European Union.”—[Official Report, 22 October 2018; Vol. 648, c. 72.]
There is no capability to carry out this function in the draft withdrawal agreement. Indeed, French and Spanish fishermen are already boasting of their continued ability to fish as they currently do in our waters. Can the Prime Minister explain exactly how our fishing sector will enjoy the benefits of an independent coastal state with control through this so-called deal, or is this just another, “Well, it’s the best they will offer us, so we will have to take it and sell off the fishing industry”—as you have Northern Ireland—“and for good measure throw in a £39 billion repayment to the EU as well”?
“will…work together to identify the terms for the United Kingdom’s cooperation via Europol and Eurojust.”
We have always said that we recognise, for example, that payment may be needed for us to act as a member of, or have some participation in, Europol and Eurojust, but the important point is that the concept of our being part of that, despite being a third country, is in there.
I believe it is important that we have had this exchange before in the House, and I believe it is important that we have within this the terms for ensuring that we have surrender arrangements like the European arrest warrant. Of course, the issue of the determination of courts in relation to the surrender matters is one that we will be considering, but we are clear that jurisdiction in these matters is for the UK courts.
I spent much of the weekend talking to businesses in my constituency. They urged me to support the Prime Minister’s deal, as indeed I shall. However, I broke off to listen to what was happening about Gibraltar, because I—along with many other Members on both sides of the House and on both sides of the Brexit debate—have sought earnestly to secure the good interests of its people. I appreciate what the Prime Minister said about the way in which the Gibraltar Government and Chief Minister have negotiated and assisted in this matter.
The Chief Minister has thanked the Prime Minister personally for
“her stalwart and unflinching defence of Gibraltar”
and its interests. Those are his words. He has also said:
“The Withdrawal Agreement she has achieved today protects all of those interests and is the best way for the United Kingdom and Gibraltar to leave behind us 46 years of membership of the European Union in a managed and orderly fashion.”
Does the Prime Minister agree that those words should weigh very heavily indeed with any Member who is committed to the good interests of Gibraltar and the whole British family?
“protects the rights of EU citizens living in the UK, and UK citizens living in the EU, so they can carry on living their lives as before.”
Does that mean that UK citizens in receipt of state pensions in the EU will have those uprated annually, as state pension holders in this country will, and will that continue after the transition period?
“an independent Coastal State with full, unfettered sovereignty over our waters and natural resources.”
Whom should I tell my constituents to believe?
“associated rights and privileges can continue…in particular with respect to free movement for Union citizens and their family members, irrespective of their nationality, to, from and within Ireland.”
Surely, this either means that free movement will continue via Northern Ireland, or there will be a border in the Irish sea and people travelling from Northern Ireland will be subjected to extra checks.
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