Leaving the EU: Implications for Scotland

(Limited Text - Ministerial Extracts only)

Tuesday 3rd July 2018 Westminster Hall

[The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Robin Walker)]

It is a pleasure to serve under your chairmanship, Sir Roger. I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson) on securing this important debate. It is an important opportunity to reflect on a wide range of matters relating to EU exit and the implications for Scotland. I congratulate my many hon. Friends who have contributed powerfully to the debate, as well as those who have spoken from parties across the House.

I turn first to our negotiations with the European Union. The Government are clear that we want a deal that works for the whole United Kingdom. We have built on the significant progress we made in March by locking down the text of the majority of the withdrawal agreement. Taken with the agreement that we reached in March on the implementation period—something that Scottish businesses have been very clear in meetings with me that they want to see—on citizens’ rights and on the financial settlement, we have now reached agreement on many of the most important issues. That provides certainty for businesses and individuals across the UK, including in Scotland.

The hon. Member for North Ayrshire and Arran spoke passionately about the impact on EEA nationals. As my hon. Friend the Member for Ochil and South Perthshire (Luke Graham) pointed out, we have reached agreement on the crucial areas of citizens’ rights. The agreement is fully reciprocal between the UK and the EU. The Prime Minister has said consistently to those people that we want them to stay. We have now reached an agreement that means that we are providing the certainty and the mechanism for them to stay.

[Patricia Gibson]

Whether an agreement has been reached or not, the point is that the hostile environment that has been created will drive EU citizens, who contribute so much to our communities, to simply leave the UK. Does the Minister not accept that that is an issue and that there is evidence of it?

[Mr Walker]

I disagree with the hon. Lady completely. I think the environment has been welcoming. The Prime Minister’s own words were that we value the contribution of EEA citizens to the UK and we want them to stay—she has repeated that time and again.

The hon. Member for Glasgow North East (Mr Sweeney) referred to 150,000 EU citizens who work in Scotland. Just like with those who live in my own constituency, we want them to stay and we want them to enjoy the same pensions, healthcare and social security benefits. We have reached agreement on the legal text to ensure that that will be the case. The Government will continue to work closely with the devolved Administrations to ensure that the future arrangement for co-operation with the EU in this area takes account of the distinct justice systems in Scotland and Northern Ireland, and delivers legal certainly and clarity for everyone in the UK.

I listened closely to the points made by the hon. and learned Member for Edinburgh South West (Joanna Cherry). My Department and the Home Office have engaged with the Scottish Government on security and judicial co-operation, and we routinely share papers with the devolved Administrations prior to publication. Indeed, we discussed civil judicial co-operation with them last week at the second meeting of the ministerial forum, which I will return to in a moment. We recognise that Scotland and Northern Ireland have distinct legal systems, and that the Scottish Government engage directly with EU agencies such as Europol.

[Joanna Cherry]

A couple of weeks ago, the former Cabinet Secretary for Justice, my colleague Michael Matheson, to whom I pay tribute, and the new Cabinet Secretary for Justice, Humza Yousaf, published a paper entitled “Scotland’s Place in Europe” on justice and home affairs. It clearly states in the foreword that there has not been engagement of the kind I described in my speech. Does the Minister accept that the first paper that I mentioned does not deal with Scotland at all, and that there was no engagement on the slides that were produced in May?

[Mr Walker]

There has been engagement—I have just referred to engagement at the ministerial forum—and I assure the hon. and learned Lady that there will be more. Although some questions about the withdrawal agreement remain to be resolved, our negotiating teams are working hard to ensure that they are finalised. We are confident that we will reach an agreement by October.

The most important issue for us now across the UK is to focus on negotiating the right future relationship. Jointly with the Commission, we published the topics for discussion on the future framework. They incorporate economic and security partnerships, as the Prime Minister outlined, the institutional framework that will underpin them and other cross-cutting issues. The joint publication reflects both sides’ determination to achieve a broad partnership that stands the test of time after the UK leaves the EU.

We have committed to engaging the devolved Administrations on the negotiations, and they have had input into the development of the UK’s negotiating position. I have appeared before three Committees of the devolved legislatures to give evidence on the UK Government’s preparations for EU exit. The Joint Ministerial Committee on EU negotiations has now met 10 times, most recently at the British-Irish Council in Guernsey a couple of weeks ago, which I attended to provide an update on the negotiations.

Following our commitment to increase our engagement with the devolved Administrations, the UK Government established a ministerial forum on EU negotiations to discuss regularly a range of issues relating to the EU negotiations and the UK’s future relationship with the EU.

[Joanna Cherry]

Does the Minister accept that the most genuine way in which the British Government could show that they are engaging with the Scottish Government and Parliament would be to acknowledge that the Scottish Parliament withheld legislative consent to the European Union (Withdrawal) Bill and, as my hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) said, to introduce emergency legislation to deal with that issue? All this talking and engagement means nothing if that single fact is not acknowledged.

[Mr Walker]

I will come back to the hon. and learned Lady’s point about the withdrawal Bill and the debate about legislative consent, but there is constructive engagement between the UK and Scottish Governments. I welcome the input we have had from the Scottish Government, both at a ministerial level and an official level, into the work of the new ministerial forum, which I co-chair with the Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Norwich North (Chloe Smith). The conversations we have had so far with the devolved Administrations have been constructive and useful. The inaugural meeting of the forum was held in Edinburgh on 24 May, and the second meeting was on 27 June in London. We use the meetings to have in-depth discussions about the proposed content of the UK Government’s forthcoming White Paper. Sections of the White Paper have been shared with the Scottish Government and the other devolved Administrations confidentially. I want to express my gratitude for the hard work of the Scottish Government officials who have worked with us on the White Paper and on other issues.

Discussions at the Joint Ministerial Committee and the ministerial forum have covered a wide range of areas. It is clear that we and the Scottish Government agree on much, including the need to ensure that Scottish universities and businesses have access to the best of European talent. We have also addressed other issues relating to attracting talent and skills. I note that the issues that have been raised in conversations I have had with growers in Scotland, including the Fife growers, about the importance of seasonal work are similar to the issues that have been raised with me in my own part of England—Worcestershire—by growers in the vale of Evesham.

Crucially, Scotland’s two Governments agree that EU exit should not create any new barriers to living and doing business in our Union. That has been one of our guiding principles and is a key priority for Scottish business. I have heard directly from Scottish business on many visits to Scotland of the issues and opportunities that EU exit creates for them. I have met representatives of a wide variety of Scottish businesses and business associations, including a number of chambers of commerce, the Scottish Retail Consortium, the Scottish Fishermen’s Federation, the Scottish Seafood Association, and of course the world-famous Scotch Whisky Association, which, as a number of my hon. Friends pointed out, is very excited about the international opportunities to be pursued as a result of the UK’s having an independent trade policy.

The Scottish Retail Consortium said:

“Scotland’s businesses benefit enormously from the existing and largely unfettered UK single market”.

Its interests and those of sectors across Scotland are actively informing our negotiating position. As the Prime Minister set out in her Mansion House speech, we want to remain part of bodies such as the European Medicines Agency and the European Chemicals Agency, which are vital for organisations in areas such as the Scottish life sciences sector and the oil and gas sector, representatives of which I met in Aberdeen in April. I have also had detailed discussions with Scottish businesses about the global opportunities for them. In any deal that we negotiate, we must ensure that we have the flexibility to take these opportunities.

The hon. Member for North Ayrshire and Arran spoke about food standards and animal welfare. The Government and I are clear that we want the highest standards of food and animal welfare for the UK, not just to ensure that we can continue to sell into European markets, but so we can make the most of the opportunities in the wider global market and ensure that British and Scottish products reach the widest range of markets and represent quality.

However, it is essential to remember that four times as much of Scotland’s business is with the UK as with the rest of Europe, as a number of hon. Members said. Indeed, the worst thing for Scottish jobs and businesses would be to split from our United Kingdom. As the hon. Member for Strangford (Jim Shannon) said, we are better together. We want to continue working together now to deliver EU exit for the UK in a smooth and certain fashion. That includes designing and implementing replacement frameworks, which the Scottish Government agree we will need, where we have a significant opportunity to work together to improve policy making across the UK.

As hon. Members know, EU exit will result in a significant increase in the devolved Administrations’ decision-making powers. New responsibilities will transfer to Edinburgh, Cardiff and, once a new Executive is formed, Belfast. We have published our provisional frameworks analysis of the 107 returning EU powers that intersect with devolved competence in Scotland across a wide range of policy areas. It shows that there are only 24 policy areas, such as food labelling, that are now subject to more detailed discussion to explore whether legislative common framework arrangements are needed in whole or in part.

At the moment, foods placed on the market across the EU have common labelling requirements that are set by EU legislation. If we do not agree to continue a common legislative approach to labelling, it is possible that different requirements will spring up, which would increase production costs for Scottish businesses and discourage cross-border trading within the UK. Divergent food labelling requirements would make it more difficult to enter into trade deals. That is why we are working together to consider a common food labelling framework.

Our frameworks, which will be designed together, can be lighter touch and UK-specific, offering bespoke policy arrangements that will ensure that power sits closer to the people than ever before. As we set up those arrangements one thing is clear: the success of each framework will rely on the strength of our relationships. It is vital that we work closely together to put arrangements in place that will stand the test of time and provide certainty for people and businesses living and operating up and down the UK.

A number of Members have mentioned the European Union (Withdrawal) Bill—now the European Union (Withdrawal) Act 2018. I remind them that the UK Government made substantial and reasonable modifications to provisions in the Act during its passage. Those changes were the result of joint working that we undertook with the Scottish and Welsh Governments.

As the Welsh Government acknowledged, the legislation respects the devolution settlement. We are, of course, disappointed that the Scottish Parliament did not choose to give consent. We will continue to offer the full provisions of the intergovernmental agreement, which was agreed with the Welsh Government, and to meet all of the UK Government’s commitments on frameworks. Those are open to the Scottish Government and Parliament. We believe that, throughout this process, the UK Government have acted in line with the Sewel convention. We worked with the Scottish Government to reach agreement in the hope that we would be able to achieve consent for the Bill.

I again thank the hon. Member for North Ayrshire and Arran for securing this debate, to which there have been many valuable contributions. We recognise that Scotland has two Governments, and that the interests of the people of Scotland are best served when they work together. We will proceed in that spirit. The hon. Member for Strangford spoke powerfully about the deep links between Northern Ireland and Scotland, and a number of other hon. Members spoke powerfully about the importance of this United Kingdom.

As the hon. Member for Glasgow North East pointed out, we have been members of the European Union together for 45 years, but for more than 400 years Scotland has worked with England on our international relations, and for more than 300 years we have been part of a United Kingdom that has served the people of Scotland and all other parts of the United Kingdom well. The implications of our EU exit mean that we must work more closely together in the years ahead.

Motion lapsed (Standing Order No. 10(6)).