European Union (Notification of Withdrawal) Bill

Debate between Andrew Murrison and Patrick Grady

Committee: 2nd sitting: House of Commons
Tuesday 7th February 2017 Commons Chamber

[Patrick Grady]

Indeed. That is covered in amendment 72, in which we ask the Department for Work and Pensions to provide an assessment. I hope that there will be time for the House to discuss that measure in more detail later on.

[Dr Murrison]

Will the hon. Gentleman give way?

[Patrick Grady]

No, I want to make a little progress.

We have seen the leaked reports of the Government’s assessment that a hard Brexit could cost the UK economy up to £66 billion a year—9.5% of GDP—if we revert to WTO terms. The hon. Member for Bishop Auckland (Helen Goodman), with whom I serve on the Procedure Committee, said earlier that analysis in the Financial Times shows that the cost of simply leaving is up to €20 billion due to the shared assets that we are a part of, and that there are up to €300 billion of payment liabilities that need to be settled in the negotiations. Even after all that, there will be ongoing costs, as well as funds that we might wish to continue to contribute to. That is covered in amendment 58, which is about the European development fund. The European development fund is the main method for providing European community aid for development co-operation in African, Caribbean and Pacific countries and the overseas countries and territories of EU member states.

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[Patrick Grady]

Absolutely. The European development fund saves and changes lives in developing countries. I would have thought that there would be a little consensus—[Interruption.] If the hon. Member for South West Wiltshire (Dr Murrison) wants to talk to me about the EDF, I am happy to take an intervention.

[Dr Murrison]

Would the hon. Gentleman’s constituents rather that development aid from this country was spent by the UK and overseen by the Independent Commission for Aid Impact, or spent by the EDF, which has none of that oversight?

[Patrick Grady]

The EDF is highly respected around the world for its effective use of international development aid. Indeed, I have pursued that with Ministers. I have received equivocal answers, but they have recognised from time to time that the EDF is actually quite an important part of the suite of European institutions and that we do make important contributions. If those contributions were ripped away, that would have a devastating effect on the EDF, so we must explore this area and understand it.

Over the years, the UK has contributed around £10 billion to the EDF, which has been a crucial component, as my hon. Friend the Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) says, of our meeting the 0.7% aid commitment. According to the Government’s timetable, Brexit will happen before the end of the current 2020 commitment period, so what will happen after Brexit? The other important thing about the EDF is that it is one of the main instruments for providing development capacity to British overseas territories, so how will they be affected? What plans are being made for them? We are trying to test such things through the amendments.

The Government have indicated from time to time that they ought to continue funding the EDF, so perhaps there are European institutions that they will have to continue to fund and support, and to have some kind of retained membership of. That makes me wonder. We hear about hard Brexit and soft Brexit, but perhaps this is some sort of hokey-cokey Brexit whereby we leave everything and then have to start joining things again: “You put your left wing in; Your right wing out; In, out, in, out”—I do not want to think about anything being shaken all about.

Amendment 49 calls for a report from the Secretary of State for Environment, Food and Rural Affairs on the level of agricultural maintenance support grants beyond 2020.