Department for Exiting the European Union

Baroness Chapman of Darlington Excerpts
Monday 26th February 2018

(6 years, 4 months ago)

Commons Chamber
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Tommy Sheppard Portrait Tommy Sheppard
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I am going to be uncharacteristically kind to the Labour party and take the right hon. Member for Leeds Central at his word. He seemed to be suggesting that we were moving towards a situation in which the difference between “a customs union” and “the customs union” might not be that great. In fact, I think he said that he viewed “a customs union” as having to replicate the procedures of “the customs union”.

Baroness Chapman of Darlington Portrait Jenny Chapman (Darlington) (Lab)
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This is becoming one of the most pointless, tedious and repetitive conversations. May I help the hon. Gentleman out? There is not really any difference; it is all about how it is embedded in the treaty. We cannot be part of “the customs union” because it is part of the treaty that we are leaving, so we will need a new one. Therefore it will be “a customs union”. There is, in essence, no difference.

Tommy Sheppard Portrait Tommy Sheppard
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Well, if there is no difference, welcome to the party! It is good to have the hon. Lady on board, and we look forward to her walking through the Lobby with us next time this comes to a decision.

The debate about customs arrangements is relevant to the budget because the clock is ticking and we are now only just over a year away from Brexit day. We still do not know what customs arrangements we are going to have with the EU27, yet the Department for International Trade is allowed to run round the world meeting everyone and talking about all manner of global trading arrangements, even though everyone knows that if there is a set of legacy arrangements involving the European Union that will probably place conditions on or compromise any arrangements we can make with anyone else. What a waste of money it is to engage in the process of pretending that we are going to have unfettered global trading arrangements with the rest of the world while at the same time discussing the need for preferential trading arrangements with the European Union.

Let me just take one more minute to talk about the second aspect of Brexit and DExEU that illustrates the lack of co-ordination and the financial waste involved in this process—namely, clause 11 of the European Union (Withdrawal) Bill. Unless that clause is corrected, it will drive a coach and horses through the principle of devolution to Scotland, Wales and Northern Ireland, yet at the 11th hour we still do not have the amendments that the Government admitted in debates in this Chamber were necessary to make the Bill work.

The question is this: who is at fault for that? Is it the Secretary of State for Scotland, the Secretary of State for Exiting the European Union, the Minister for the Cabinet Office or the Prime Minister? Someone needs to tell us why they could not achieve the simple thing of preparing legislation that would allow a coherent withdrawal Bill to be presented to the House. That is not something that we can blame on Brussels. Michel Barnier does not really care what clause 11 of our European Union (Withdrawal) Bill is or what the post-Brexit arrangements for devolution are. This problem is self-made and self-inflicted, because the Government are so incoherent and unable to plan. I hope that in the months and years to come we will have rather more coherence in Government policy and therefore rather better financial coherence as a result.

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Baroness Chapman of Darlington Portrait Jenny Chapman (Darlington) (Lab)
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Today, Parliament is asked to consider an underspend by the Department for Exiting the European Union. We might as well, as it is far from clear what we have been getting for our money anyway. The Government wasted £1.4 million on fighting Parliament’s right to vote on the decision to trigger article 50. Around 75% of the cost derived from the Supreme Court appeal that Labour opposed at the time as a waste of money.

It gets worse. The Government decided that, for show, it would look good if Sir Tim Barrow could be photographed hand-delivering the article 50 letter from the Prime Minister to the European Council. The two business-premier class return tickets cost around £1,000. Apparently, it took two people to deliver the letter, which is surprising given how understaffed the Department is.

Will the Minister comment on the Department’s unusually large staff churn? The National Audit Office recently found that churn at the Department is running at 9% per quarter. The civil service average is 9% per year. As my right hon. Friend the Member for Leeds Central (Hilary Benn) said in his, as ever, excellent speech, the Institute for Government thinks that that degree of churn in the Department at the forefront of co-ordinating the complicated task of leaving the EU should cause concern both within and outside the Department. It certainly causes me concerns.

Perhaps the Department is not so much at the centre of co-ordinating this complicated task after all. In December 2017, Oliver Robbins left his role as permanent secretary at the Department to focus on his role as the Prime Minister’s European adviser. Robbins was joined at the Cabinet Office by his own team and a unit of around 30 staff. An answer to a Labour written question revealed that Robbins’ new unit includes five deputy directors, on up to £118,000 each; six Cabinet Office band As, on up to £60,500 each; and seven Cabinet Office band Bs, on up to £38,500 each.

In December, we found out that one in four DExEU posts was unfilled, including 81 policy roles, and that 44% of DExEU staff plan to leave within the next year. Jill Rutter, programme director at the Institute for Government, put it like this:

“They’ve been losing people at a higher rate than any civil service department. It obviously makes your task harder of filling up that bucket, it’s like filling up a bucket with a bit of a leak”.

Can the Minister explain how much of the Department’s underspend is because of an inability to recruit and retain staff? Why is it that the Department struggles to find and keep hold of good staff? What is it about the Department that is so off-putting to talented civil servants? Perhaps it is because there is a Whitehall turf war over Brexit, leaving the Department effectively neutered and paralysed by the division in government.

With such excess resources available, how is it that the Department made such a pathetic job of pretending that it had conducted sectoral analyses of Brexit’s impact on the economy? When they were finally made available, they were an embarrassing copy-and-paste waste of paper. I will not go over the whole shoddy tale again, but it proved just how disorganised and under-powered the Government’s Brexit operation is. It is chaotic.

The worst part of all of this is that amid the chaos, the Secretary of State for Exiting the European Union has turned his face away from one of the most important issues that his Government faces: the impact of Brexit on the border in Northern Ireland. I have visited Northern Ireland on three occasions in the past three months, because the impact of the reintroduction of a hard border would be a catastrophe for all communities in Northern Ireland. I agree with the Government’s assertion that Northern Ireland should be treated the same as the rest of the UK, but Labour will never support a Brexit deal that results in any customs infrastructure whatsoever on the Northern Ireland border.

The Secretary of State has not visited Northern Ireland once since September 2016, and I do not think he has ever visited the border. That is neglectful. He ought to go there so that he can correct the Tory former Secretary of State for Northern Ireland, the right hon. Member for North Shropshire (Mr Paterson), when he says that the Good Friday agreement has outlived its use. Such outrageous, casual ignorance is frightening. Will the Minister assure the House that there is no circumstance in which the Government would countenance establishing any infrastructure on the Northern Ireland border?

Can the Minister identify for the House a single example of an open border between two countries operating different customs regimes? Anywhere—Norway and Sweden, or the USA and Canada? It cannot be done. Therefore, because there are no credible alternatives that would safeguard the Good Friday agreement, and because of the need to support manufacturers throughout the UK, the Labour party has said that it would seek to negotiate a new customs union with the EU.

The Government are failing in so many of their responsibilities, and the excuse that is so often given is that they are focused on Brexit. Maybe if Brexit was going well, if the Department was not so unstable, if there was clarity of position or a sense of energy and purpose, or if the Prime Minister could articulate with any certainty where the country is heading, Ministers might be forgiven for their lack of progress on so many issues. The hon. Member for Edinburgh East (Tommy Sheppard) and the right hon. Member for East Antrim (Sammy Wilson) spoke of metaphors, but sadly an apt metaphor for the entire Government can be found in the Department’s rapid decline into chaos, division, irrelevance and incompetence.

John Bercow Portrait Mr Speaker
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We are joined this evening by the Prime Minister of Kosovo, who is supported by the hon. Member for Cleethorpes (Martin Vickers). We are most grateful to the Prime Minister for his attendance at the House of Commons and we wish him and his country all the best.

Oral Answers to Questions

Baroness Chapman of Darlington Excerpts
Thursday 1st February 2018

(6 years, 4 months ago)

Commons Chamber
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Steve Baker Portrait Mr Baker
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I can give my hon. Friend that assurance. It is in all our mutual interests to ensure that aviation continues to be open and liberal. The Secretary of State for Transport is well apprised of the issues and is pursuing them.

Baroness Chapman of Darlington Portrait Jenny Chapman (Darlington) (Lab)
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The BuzzFeed papers tell us that the regions most damaged by a no-deal Brexit would be the west midlands, Northern Ireland, and the north-east. The people of these regions deserve better. Will the Minister take the opportunity to make it clear to certain colleagues sitting behind him that they are wrong and irresponsible to be talking up or wishing for a no-deal outcome?

Steve Baker Portrait Mr Baker
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To answer the hon. Lady very directly on her last point, as I said earlier, it is our policy to seek a mutually beneficial, deep and special partnership with the European Union, embracing an economic partnership, among other things, and we are optimistic about achieving that outcome.

Baroness Chapman of Darlington Portrait Jenny Chapman
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The Minister will not say it, but I will: they are wrong and they are irresponsible to be doing so.

As well as certain regions being hit hardest, certain sectors are threatened severely by a no-deal Brexit. For example, the food and drink industry exported £9.8 billion-worth of goods to the EU last year. Once and for all, will the Minister rule out a no-deal outcome, commit to a transition on current terms and give industry the certainty it needs?

Steve Baker Portrait Mr Baker
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I find the hon. Lady’s question peculiar. She seems to be suggesting that I would adopt something other than Government policy. It is the Government’s policy to secure an implementation period on current terms; it is the Government’s policy to secure an economic partnership; and of course it is the Government’s policy to be responsible and prepare to exit the European Union under whatever circumstances may prove necessary.

Leaving the European Union

Baroness Chapman of Darlington Excerpts
Monday 22nd January 2018

(6 years, 5 months ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Baroness Chapman of Darlington Portrait Jenny Chapman (Darlington) (Lab)
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It is a great pleasure to serve again under your chairmanship, Mr Hanson.

We have had a good debate. Much of it has been very familiar in subject and theme, but the petition has succeeded in achieving something that I never thought I would see, which is that everybody who has spoken has been in agreement on the undesirability of accepting the instruction contained in it. I have been in so many Brexit debates during the past year and a half and that has never happened before, so we should at least acknowledge it. We have managed to find many things to disagree about, none the less.

It will not surprise anybody to know that I fundamentally disagree with the petition. The very first line says that we should

“walk away from the Article 50 negotiations and leave the EU immediately with no deal.”

We have agreed to take part in negotiations, as we accepted we would when we triggered article 50. It is suggested that we should walk away and not complete that task. I do not think, and clearly nobody here believes, that that would be the right thing for the United Kingdom to do.

I speak as somebody who campaigned for remain. We all seem to have to tell our little Brexit biography when we make these speeches. I campaigned for remain; my constituency voted 56% to leave. To be completely honest, that caused me to reflect, to think and to listen incredibly hard to what my constituents were telling me through that vote and what they expected me to do about it. Having promised throughout the campaign that I would honour, respect and abide by the outcome of the referendum, that is what I intend to do and what I have done through the triggering of article 50 and the process subsequently. But the listening is two-way. I have had to explain to my constituents that this is a process and it will take far longer and use up far more energy than I think any of us would really like, but it needs that energy, focus and attention from Parliament and the Government in order to result in a good deal.

I have days when I pretty much think, “Oh my goodness, why are we doing this?” You want it to stop. I think the public are bored with much of this, if I am honest. There was a time when Brexit was the first thing that people spoke about, it was the topic of heated conversation down the pub, but I think that for many people that is declining now. Since the general election, the debate has been moving on and there is growing acceptance that Brexit is going to happen, but that makes the responsibility all the more keenly felt by us that we must deliver a deal that is worthy of our country.

Whenever we discuss these things, we inevitably talk a great deal about trade and about WTO tariffs and crashing out. I heard the admonishment from the hon. Member for Sutton and Cheam (Paul Scully) about the term “crashing out”, but his colleagues used it, so I am using it as well; we all know what we mean. We talk about what a disaster that could be for this country, and particularly for certain sectors. It is true that some businesses and sectors and possibly some parts of the country could withstand it, but I do not believe that my region, the north-east, could do so. The National Farmers Union has been clear that farmers would have a lot to say about 30% or 40% tariffs on exports to the EU. The automotive sector would have an awful lot to say. I think that the customs checks that would need to be implemented overnight, for which we are not prepared, would have a disastrous effect on our ports and airports. The port of Dover estimates that even a two-minute delay in the time taken to process each lorry would result in 17 miles of tailbacks. The people of Kent would not thank us for that.

We also talk very often about the impact on financial services and the immediate loss of passporting, which enables banks to do business across the EU without setting up subsidiaries or relocating. The Financial Conduct Authority says that 5,467 firms rely on passporting rights. The immediate loss of that would be a catastrophe for that sector. The UK has a trade surplus of £11 billion in services, and the loss of passporting would be disruptive, expensive and incredibly time consuming.

We really do not know what the impact would be in the wider economy. We suspect that it would probably not be good. It would be good, responsible and transparent government if some impact assessments were conducted and published. I do not intend to go round that whole debate again this evening, but it has not helped confidence in the Government’s handling of this process to have had the row about impact assessments. I am thinking of the misleading statements that were made about whether or not there are impact assessments and what they consist of, and the embarrassment that must surely have been felt by the Department about that whole saga.

Another thing that is said is, “You have voted now. You have triggered article 50. What about the withdrawal Bill?” The reason we are undertaking the whole process of the withdrawal Bill is so that we can align our rules with those of the EU once the Bill has passed. It has not passed yet, so were we to leave before that Bill has passed, we would have massive holes in our book of rules—how we run the country. Even when it has passed, one could say that not much would change in terms of regulation and red tape. The Government have done that, although we think they are doing this process incredibly badly. One could say that the Government are doing it deliberately in this way so that a deal can be made more easily once the withdrawal Bill has passed and we reach the end of negotiations.

All the Bill does is enshrine EU regulations in law, but it does not provide on its own for reciprocal recognition; that would need to be part of a future relationship agreement. It is not properly understood that the withdrawal agreement the Government are negotiating and the future relationship agreement or deal, which is probably of the most interest to our constituents, are separate things. There is a good chance that we will not know the future relationship—the future trade deal or whatever form it happens to take—by March 2019, so it would be very dangerous indeed to leave the European Union now, before that process is complete.

Wera Hobhouse Portrait Wera Hobhouse
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The hon. Lady has admitted that we had a good and constructive debate about how we all need to have a good deal. Is there not a danger that we end up with a good deal that we all agree with, but it will look very much like being a member of the European Union? In the end, everyone who voted, for leave or remain, will look at it all and say, “What was all this about and why did we go through all this pain when the end is similar—just a little bit worse—to what we had as members of the European Union?”

Baroness Chapman of Darlington Portrait Jenny Chapman
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I do not know what deal the Government are going to make. I hope that they are capable of making something better than no deal. If the phrase “No deal is better than a bad deal” ever meant anything, it is losing whatever credence it had. I do not know how little confidence they have in their own negotiators that they would come back with something that bad. It is important that the deal we reach protects jobs and the economy. I think that is what the hon. Lady wants, but the Labour party recognises that it is also important that the deal recognises the outcome of the referendum. That is a difficult thing to achieve and a difficult thing to encapsulate in a single sentence. That is where the negotiations will succeed or fail, because the deal that is reached must settle the relationship we have with the European Union for 20 or 30 years, perhaps longer. We cannot have a perpetual state of negotiation and renegotiation, and referendum after referendum.

Antoinette Sandbach Portrait Antoinette Sandbach
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Does the hon. Lady agree that, from that point of view, EFTA membership is very attractive? One of the big concerns and reservations my constituents have is around ever closer union. EFTA gives us the benefit of a close relationship and a trading relationship without the political institutions, but still delivers that close and special partnership with the European Union.

Baroness Chapman of Darlington Portrait Jenny Chapman
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Well, it could, but we should not be so lacking in imagination that we cannot conceive of alternatives that may also offer benefits, without being tied to an existing form or treaty. Sometimes we disappear down the rabbit hole of the customs union, the single market and existing forms of arrangement. Actually, we might be able to do better than that. Let us keep those on the table, rather than do what the Prime Minister thought she was doing in the Florence speech and take them away. It is conceivable that something else may be possible. The option the hon. Lady outlined does have the benefits she describes and it should never be written off without proper debate and negotiation. I fear that that is what the Government initially attempted to do. Although post-phase 1, one could argue that that is back in play—we shall see.

Another thing that frequently comes up in these debates is the plight of UK citizens in Europe and EU citizens in the UK. People have been described as bargaining chips in this process, so what would happen to those bargaining chips if the negotiations did collapse because we walked away? They would be left in a very precarious situation indeed. They would have no status and no rights, and that is not a situation that we should take lightly. I am pleased that hon. Members have made that point in this debate and it ought to be something we consider very carefully.

There are also the issues of crime, counter-terrorism, exchange of data, the arrangements we have with Europol and the European arrest warrant. We are a member of all of those things by virtue of the fact that we are part of the European Union. It may be that we can have separate deals on those issues—who knows? But we certainly would not if we just walked away, as the petition urges us to do. We would also become less attractive to future trade partners. The public perception of the incompetence of this Government would only be enhanced were they to take that route—so perhaps there is something in it—but it is difficult to imagine a worse outcome for Britain than failing to agree a deal.

The issue of Northern Ireland and the Irish border may be the most difficult to solve. Looking at the approach the Government intend to take, I do not think anybody should have anything to do with these negotiations until they have been to the border and spoken to people who live there, community leaders and business leaders in Northern Ireland, because it is the most critical issue for anybody living in that part of the world that there is no return to any form of infrastructure on the border. One can conceive of any number of possibilities, such as a digital border, light-touch border checks and arrangements for small businesses but not for others. All those things are possible, but I tell the Minister that any kind of infrastructure on that border will make peace and the conduct of daily life in that part of the world impossible, and that must not be allowed to happen.

It is good that phase 1 rules out the prospect of a separate deal for Northern Ireland and some kind of border down the Irish sea. That is welcome. There needs to be a solution that preserves the integrity of the Union, but one cannot then say that we will have any other kind of border infrastructure on the island of Ireland. I am very interested to find out quite how we solve that in the context of what was agreed in phase 1. The statements made on the alignment of regulations are fascinating. Now that those things are going to be put into a legal document, we will have to get some real resolution to these questions and not the fudge and clever use of words we have seen so far.

I have heard other people say, “Oh, you are catastrophising when you talk about Northern Ireland in that way.” We are not. There are still shootings in Northern Ireland—61 incidents last year. There are still people active in that part of the world who are prepared to use those methods. That is not something we should take lightly. Many of my constituents fought in Northern Ireland and they understand what this means. Whether they voted to leave or remain, they understand that this is not a question that can just be skirted over or somehow dismissed. It needs a proper resolution and any outcome that reinstates a hard border would be fought against by my constituents, even those who voted to leave.

Another reason for us to reject the petition is consistency. The Labour manifesto in 2017 said that

“leaving the EU with ‘no deal’ is the worst possible deal for Britain and that it would do damage to our economy and trade. We will reject ‘no deal’ as a viable option and if needs be negotiate transitional arrangements to avoid a ‘cliff-edge’ for the economy.”

Some of the Prime Minister’s words can be interpreted as almost agreeing with that sense of needing a transitional period and being willing to negotiate in that way. That is welcome, and we should say that it is, but she now has to deliver that and keep the confidence of her parliamentary party while she does so—let us hope that she can.

Nobody voted to be poorer, to lose their job, for chaos or to be less safe. That is what would happen if we accepted the petition, as we are urged to do. It is very good indeed that everybody here agrees that that would be a bad outcome. If we can take anything away from today, it is that we accept that a deal is the best outcome and that walking away with no deal would be a disaster for the UK and is something that we should resist as far as we can.

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Suella Braverman Portrait Suella Fernandes
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As my hon. Friend rightly points out, the European Court of Human Rights arises from the European convention on human rights, totally separate from the European Union and its legal structures. It is a source of much of our rights culture here in the UK, transposed through the Human Rights Act 1998. She is right that we are, and will continue to be, bound to honour that document and the decisions of that court.

Baroness Chapman of Darlington Portrait Jenny Chapman
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I am listening to what the Minister is saying, and I have a lot of time for the interventions from the hon. Member for Eddisbury (Antoinette Sandbach). I represent a leave seat and, to be completely candid, nobody has raised concerns with me about the ECJ being involved in issues such as nuclear safeguards or even EU citizens’ rights in this country. In those limited respects, and possibly much more widely, no one has raised it with me. It is slightly misleading to suggest that there is huge outcry and dissent about that particular issue. I do not believe that it is true, and it is not borne out by any of the discussions in my leave seat.

Suella Braverman Portrait Suella Fernandes
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I must disagree with the hon. Lady. I think that sovereignty, whether it is parliamentary or legal sovereignty, were key factors in the referendum.

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Baroness Chapman of Darlington Portrait Jenny Chapman
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On nuclear safeguards?

Suella Braverman Portrait Suella Fernandes
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On many issues. Whether on immigration, on which the ECJ has the final say, or on nuclear safeguards, ending the ECJ’s jurisdiction is integral to leaving the European Union, and the two cannot be divorced.

To resume my point—in the UK, EU citizens’ rights will be upheld by implementing the agreement in UK law. In the interest of the consistent interpretation of citizens’ rights, the UK has agreed that a narrow group of issues will be referred to the ECJ for interpretation, with due regard to whether relevant case law already exists. That will be up to our courts and they will make the final judgment, not the ECJ. In practical terms, that is a very limited role: our courts refer only two or three cases of that kind to the ECJ every year. In any case, there is a sunset clause after which that voluntary reference to the ECJ will come to an end. In short, any continuing role for the ECJ in our legal system will be voluntary, narrowly defined, and time limited.

A further reason why the Government seek to continue their negotiations with the EU rather than to leave before March 2019 is the advantage gained by securing an implementation period, as set out by the Prime Minister in her Florence speech. The implementation period will be strictly time-limited and mutually beneficial —it will be in everyone’s interests. Let me be clear: it is about not delay, but preparation.

An implementation period is essential to make the most of Brexit. We want to leave the EU, but we want to leave successfully. We want to base the long-term trajectory of our country as an independent nation outside the EU on prosperity, growth and taking back control. The best way to achieve that is by causing the least disruption.

An implementation period is important because businesses and public services will have to plan for only one set of changes in the relationship between the UK and the EU. At the end of that period, all our systems, procedures and structure will be in place and ready to go. There will not be one set of changes in 2019 and one at a later date. Many hon. Members have spoken on behalf of the business community, which has been clear about the importance of the implementation period to its planning. An implementation period provides certainty, which is a clear advantage and one of the key reasons why the Government are seeking to make a beneficial deal with the EU, rather than to leave prior to March 2019.

I thank hon. Members for their contributions to this interesting debate. To reiterate, there is no doubt that we are leaving the EU, the customs union and the single market. We are seeking a new future partnership with the EU in the second phase of negotiations, and we neither want nor expect a “no deal” or a “punishment deal”. We are confident that we can achieve a mutually beneficial deal that delivers on the will of the British people.

The next phase will not be easy—far from it. We can expect difficult moments and challenges.

Baroness Chapman of Darlington Portrait Jenny Chapman
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Will the Minister give way?

Suella Braverman Portrait Suella Fernandes
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I will not, because I have been generous in giving way and accepting many interventions.

It is now important for talks to move forward so that we can work towards agreeing the terms of our future relationship. We want to maintain the beneficial trading relationship between the two parties. We aspire to continue to co-operate on an array of areas. We also want to lead the world in global trade by striking trade agreements with countries outside the European Union. We need to devise our own independent immigration policy and restore judicial sovereignty to UK courts. As the Prime Minister set out, we will leave the EU on 29 March 2019 in accordance with article 50. We want to give businesses and the public the certainty that they need to ensure a smooth transition.

As elected representatives, we all have a duty to honour the result of that historic 2016 vote. It was a vote of confidence in Britain, in our democracy, in our country forging a new path, and in a country free to harness its people’s abilities, talents and genius—

Baroness Chapman of Darlington Portrait Jenny Chapman
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On a point of order, Mr Hanson.

David Hanson Portrait David Hanson (in the Chair)
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I very much hope it is a point of order.

Baroness Chapman of Darlington Portrait Jenny Chapman
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I would not let you down, Mr Hanson. Is it in order for a Minister to decline to take an intervention when she has 25 minutes remaining and she has not addressed many issues that have been discussed, including Northern Ireland and the border?

David Hanson Portrait David Hanson (in the Chair)
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I am grateful for the point of order, but the Minister has the Floor. She can give way or not, according to her preference.

Oral Answers to Questions

Baroness Chapman of Darlington Excerpts
Thursday 14th December 2017

(6 years, 6 months ago)

Commons Chamber
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Robin Walker Portrait Mr Walker
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Tourism is a hugely important part of the UK economy, and we have had regular discussions with the tourism sector and with the aviation industry that supports it. It is good to see tourism numbers in the UK hitting record levels this year.

Baroness Chapman of Darlington Portrait Jenny Chapman (Darlington) (Lab)
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The Minister’s sectoral analysis might tell him that the agri-food sector in Northern Ireland depends entirely on an open border, which is to be secured on a promise of regulatory alignment. The Environment Secretary has contradicted the Prime Minister, saying that this is a perpetually open and ongoing discussion, thus placing future regulatory alignment in doubt. Is he not inflicting a lifetime of uncertainty on the agri-food sector and on the people of Northern Ireland?

Robin Walker Portrait Mr Walker
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The short answer to that is no. What we are seeking to do, and what is clearly set out in the joint agreement, is ensure that the first priority for delivering on the soft border in Northern Ireland will be a strong future trade deal between the UK and the EU. Of course it is right that we ensure that where it is necessary to meet our obligations under the Belfast agreement, there will be regulatory alignment, so that we can ensure the continuing free movement of people, goods and animals across that border.

European Union (Withdrawal) Bill

Baroness Chapman of Darlington Excerpts
Baroness Chapman of Darlington Portrait Jenny Chapman (Darlington) (Lab)
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I wish to speak to amendments 338, 346 and 347 in my name and the names of my hon. and right hon. Friends. I also wish to make it clear that my party and I would support new clause 70, should it be put to a vote. I was heartened by the intervention of the hon. Member for Stirling (Stephen Kerr), who said that he also supports the new clause.

As the hon. Member for North Down (Lady Hermon) argued so eloquently and persuasively, new clause 70 protects the Belfast principles throughout and beyond our departure from the European Union, just as Labour’s amendment 338 prevents delegated powers from being used in any way that would undermine the Good Friday agreement. I am grateful to my hon. Friend the Member for Pontypridd (Owen Smith) for his thoughtful guidance in devising amendment 338.

Too many—including, I suspect, many of my constituents—see the Good Friday agreement as an event that took place almost 20 years ago, already consigned to the history books. The agreement was, and is, the result of years of work by too many committed souls to name each one. It is an agreement that is as moving to read now as it was then. Beautifully simple are the words that drew to an end the decades of brutality, misery and conflict that had befallen the island of Ireland and beyond for decades. None of us living on this side of the Irish sea can truly comprehend the opportunity for a new beginning for Northern Ireland that was made possible by the Good Friday agreement. The declaration of support for the agreement says it best:

“The tragedies of the past have left a deep and profoundly regrettable legacy of suffering. We must never forget those who have died or been injured, and their families. But we can best honour them through a fresh start, in which we firmly dedicate ourselves to the achievement of reconciliation, tolerance, and mutual trust, and to the protection and vindication of the human rights of all.”

To say that the Labour party is proud of its role in bringing the agreement into being does not convey sufficiently the time, political and emotional investment made by Tony Blair, Paul Murphy, Mo Mowlam, Jonathan Powell and countless others, by choice, in the process. Peace and security in Northern Ireland mattered to the Labour party then and it matters no less to us now. But it is important to say, too, that the work of John Major and many in this Chamber should be recognised, appreciated and acknowledged.

We have seen this week that all the challenges involved with implementing the UK’s decision to leave the European Union unite and are magnified in the context of Northern Ireland. The separation by sea from the rest of the UK and the joining by land of Northern Ireland to the Republic of Ireland quickly expose the weaknesses of any flippant attempt to provide a single line answer to the question of our future relationship with the EU.

Northern Ireland finds us out. It is the test by which any proposed deals can be said to succeed or to fail. Ruling out the customs union and a changed relationship with the single market before trade talks have even begun fails the Northern Ireland test. Why? Because of the potential reappearance of a hard border, which all parties say they do not wish to see. But we cannot wish away problems. If we have different tariff arrangements from the EU, we will need to collect tariffs from the EU, and the EU will need to collect tariffs from us. If we have different product standards and regulations, goods will need to be inspected to see if they are allowed in each other’s markets, particularly agricultural produce. In Norway and Sweden, that means a hard border. In America and Canada, that also means a hard border. Ambition is not enough to prevent it from meaning a hard border on the island of Ireland too.

Andrew Murrison Portrait Dr Murrison
- Hansard - - - Excerpts

To my knowledge, the United Kingdom Government are not proposing to erect tariff barriers, and they do not want to have regulation. Therefore, there would be no need for a hard border in the way in which the hon. Lady describes. If the European Union wishes to collect tariffs or erect regulatory barriers, the European Union will have to erect a hard border, but the UK Government surely cannot be answerable for that.

Baroness Chapman of Darlington Portrait Jenny Chapman
- Hansard - -

I struggle to see how the originator of the border—who would erect it—is of any consequence to the people of Northern Ireland. A border is a border and it needs to be avoided at all costs.

Ian Murray Portrait Ian Murray (Edinburgh South) (Lab)
- Hansard - - - Excerpts

It is quite clear that the proponents of Scotland remaining in the UK during the 2014 Scottish independence referendum were right to argue that taking Scotland out of the UK single market would mean the erection of a hard border at Berwick. Given what we have just heard from the hon. Member for South West Wiltshire (Dr Murrison), does my hon. Friend think that the situation would be any different in the context of Northern Ireland?

Baroness Chapman of Darlington Portrait Jenny Chapman
- Hansard - -

As earlier contributors have made clear, this issue is the one that finds out the fantasists from the realists. If the Government have the ambition of avoiding a hard border in Northern Ireland, they need to explain exactly how they intend to achieve that.

Stephen Kerr Portrait Stephen Kerr
- Hansard - - - Excerpts

Is not the hon. Lady putting the cart before the horse? The next phase of the negotiations will determine the future relationship between the EU and the UK. Is not she presuming an outcome that very few people would actually be in favour of?

Baroness Chapman of Darlington Portrait Jenny Chapman
- Hansard - -

I am just making it very clear to the Government and all other observers that this matter is not something on which the Labour party is prepared to compromise. That point may need to be made again as we proceed, but it absolutely ought to be made now too.

Anna Soubry Portrait Anna Soubry
- Hansard - - - Excerpts

Perhaps the hon. Lady can help us. Does she agree that it is absolutely agreed by everybody—the EU, Ireland, Northern Ireland and everybody here—that we do not want a hard border, and that the Government have accepted that there will be a hard border unless we get a proper deal, which is why they conceded that point and offered up solutions in their White Paper? Would she further agree that the difficulty is that the solutions that have been offered up are unworkable unless the Prime Minister’s excellent idea is put across the whole United Kingdom? It is a great idea, but it should not apply only to Northern Ireland because we are a Union.

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Baroness Chapman of Darlington Portrait Jenny Chapman
- Hansard - -

I agree with the right hon. Lady, and she can probably guess that I will be making the point later in my speech that we need a solution that works for the whole United Kingdom.

The next issue is north-south co-operation. The Committee will know that strand 2 of the Good Friday agreement sets out a framework under which the Administrations in Belfast and Dublin can establish some common policies across the island of Ireland. I am sorry, Mr Streeter; I have missed out an important section of my speech. I will just go back and ensure that I do not omit any important issues. This is the peril of taking too many interventions.

The point I wanted to make is that we cannot simply wish away problems, that if we have different tariff arrangements from the EU, we will need to collect tariffs from the EU and the EU will need to collect tariffs from us, and that the Government’s ambition is not enough to prevent the reintroduction of a hard border on the island of Ireland. Therefore, the north-south co-operation that has been established is incredibly important, and the United Kingdom has a solemn commitment to support this co-operation.

From strand 2, the island of Ireland has the six north-south implementation bodies, and the co-operative work of the North South Ministerial Council. The European Commission reportedly estimates that there are 142 areas of north-south co-operation that are affected by EU rules and regulations. The Government may quibble with that number, but there can be no doubt that common EU rules and regulations facilitate co-operation in areas such as the environment, health, agriculture, energy, higher education and telecommunications.

It was always envisaged by the parties to the peace process that EU rules and regulations would help to facilitate north-south co-operation. The Belfast agreement states that the North South Ministerial Council will

“consider the European Union dimension of relevant matters, including the implementation of EU policies and programmes and proposals under consideration in the EU framework.”

As Britain leaves the EU, it falls to this generation of political leaders to face up to the challenges that Brexit poses to the Good Friday agreement and make good on the efforts of those who worked so hard to reach agreement in 1998. We must cherish and respect what was achieved almost 20 years ago.

We need to preserve not only the institutions that were set up in relation to strands 1, 2 and 3 of the Good Friday agreement, but human rights and equality, the principle of consent and citizenship rights. The understanding that it is for the people of Northern Ireland, and the people of Northern Ireland alone, to determine their future is the principle that underpins the Good Friday agreement and subsequent agreements. The UK Government and the Irish Government are co-guarantors of the agreement and together must ensure that that promise is kept.

Ian Paisley Portrait Ian Paisley (North Antrim) (DUP)
- Hansard - - - Excerpts

Yes, the Irish Government and Her Majesty’s Government are co-guarantors, but does the hon. Lady agree that the Irish Government have acted in very bad faith by dismissing the views of a vast number of people in Northern Ireland on the issue of Brexit?

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Baroness Chapman of Darlington Portrait Jenny Chapman
- Hansard - -

No, I do not agree with that at all and I will not be tempted into some kind of debate about it. If the hon. Gentleman wants to make a speech to that effect, he is very welcome to do so, but I will not agree with him.

Those elements of the agreement matter not only because they were necessary to bring lasting peace, but because they have enabled the economic rebirth of Northern Ireland. Nothing harms the prospects of young people or businesses like uncertainty and instability. Northern Ireland benefits from natural beauty, the ingenuity, creativity and resilience of its people, and a shared determination to never return to the suffering of the past. As a non-partisan coalition of businesses put it, we must ensure that

“society in Northern Ireland does not become collateral damage in any Brexit discussions.”

The Northern Ireland Committee of the Irish Congress of Trade Unions, the Confederation of British Industry in Northern Ireland, the Northern Ireland Council for Voluntary Action and the Ulster Farmers Union got it right when they produced an agreed position on the Brexit negotiations. They say that an “open frictionless border” must be maintained between Ireland and Northern Ireland, and between Great Britain and the island of Ireland. They say that

“Brexit must not be used as a pretext to dismantle hard won workers’ rights or to drive down employment standards”.

On this and on many other issues, the Labour party is as one with the people of Northern Ireland. There must be no hard border, the preservation of the common travel area between Ireland and the UK, no undermining of the Good Friday agreement, and full involvement of workers’ representatives, business and the community and voluntary sectors in articulating the concerns and protecting the interests of all citizens of Northern Ireland.

Indeed, everybody sensible who examines this issue in any depth soon reaches the conclusion that the Government must do what they have as yet failed to do and answer the question of how they plan to achieve their objective of no physical infrastructure and no customs border, as outlined in their position paper earlier this year. But answer it they must, because a hardening of the border will undoubtedly harm business and the economy. I was left in no doubt about that when I met farmers and business leaders in Northern Ireland recently. It will also harm the everyday lives of those who frequently cross the border for social, cultural, leisure, educational or health reasons. Whether it is because of the outstanding work that has been done by CAWT—co-operation and working together—in recent years to make sure that the border is not a barrier to accessing healthcare or the thriving agri-food trade that makes up 33% of north-south trade, avoiding a hard border must be our ambition.

If we are to have non-negotiable issues, the avoidance of a hard border in Northern Ireland should be the thickest and most indelible of red lines. As the Brexit Select Committee said in its report:

“We also recognise the unique challenges posed by the need to preserve the peace settlement in Northern Ireland, including issues that go far beyond trade and customs.”

Everybody knows that this is not just about moving butter; it is about daily life and identity for thousands of people. The Select Committee goes on to ask: how will the Government avoid a hard border if no deal is reached by 29 March 2019?

Continued progress in Northern Ireland goes hand in hand with prosperity and stability. The Good Friday agreement and subsequent agreements have provided certainty about the continuation of an approach to the future of Northern Ireland that is shared between the British and Irish Governments and the people of Northern Ireland. Putting a commitment to the agreement on the face of the Bill and preventing Ministers from legislating in any way that is contrary to the agreement would provide some of the clarity, certainty and reassurance that the businesses and citizens of Northern Ireland say they need.

Let us pause to reflect on the heart of the issue that the Good Friday agreement settled: the violence between communities and traditions that raged for generations and that took and scarred so many lives in Northern Ireland. Today, the people of Northern Ireland, so many of whom were affected by the troubles, will be watching, waiting and hoping that the Government can offer a cast-iron guarantee that the Good Friday agreement will be protected and preserved in every sense. There has been much talk of red lines as we have debated Brexit since the vote to leave. Maintaining our commitment to the Good Friday agreement and guaranteeing that Ministers cannot legislate incompatibly with it should be a red line for every last one of us in this Parliament.

Robin Walker Portrait The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Robin Walker)
- Hansard - - - Excerpts

It is a pleasure to follow the hon. Member for Darlington (Jenny Chapman) and I echo many of the sentiments she has voiced from the Dispatch Box.

I have reordered my speech so that I can turn quickly to the new clause tabled by the hon. Member for North Down (Lady Hermon) and to the importance of the Belfast/Good Friday agreement. First, I will speak briefly to clause 10 stand part. As those who have studied the Bill will recognise, clause 10 is very short. Schedule 2, which relates to it, is rather more complex and we have a huge number of amendments to schedule 2. I therefore ask whether interventions on those various amendments can wait until we have dealt with the important issue of the Belfast/Good Friday agreement.

Clause 10 and schedule 2 are straightforward but essential. They provide the devolved Administrations with the powers they need to prepare our statute book for leaving the EU by dealing with deficiencies in retained EU law, ensuring ongoing compliance with international obligations and implementing the withdrawal agreement. As we set out in the White Paper, the task of preparing our statute book for exit is one that we share with the devolved Administrations. The law that will be preserved under the Bill has effect in areas that are devolved, as well as those that are not. We will leave the EU as one United Kingdom, but devolution is a vital part of that United Kingdom, and it is right that ensuring that there is certainty and continuity should be a shared and collective endeavour in which every Parliament and Assembly plays its part.

It is absolutely right, therefore, that we equip the devolved Administrations with the powers they need to correct the laws for which they are responsible, just as it is right for the UK Government to have powers to correct those laws that affect the UK as a whole. It is important, as we have, to set the parameters for those powers. We believe that we have achieved the right balance by focusing on the specific aims of the powers and by applying safeguards. That will ensure, for instance, that they are not used in ways that might disrupt the ongoing EU negotiations or the workings of our internal market. Today is an opportunity for the Committee to examine how we have struck that balance, and I will continue to listen with great interest to the views of Members across the Committee.

I am grateful for the contributions that have been made by committees in the devolved legislatures to the debate that we are having today. I am also grateful to those who gave evidence to those committees. These are complex matters and I welcome their engagement and the attention that these issues have been given. We will consider carefully all the evidence that has been put forward by those committees in today’s debate.

We have heard a huge amount in this debate about the importance of the Belfast agreement. I say to the hon. Member for North Down that we appreciate enormously the attention and work she has put into the new clause. Her new clause seeks to clarify that any Ministers using the powers in the Bill would have to have regard to, and abide by, the Belfast agreement. We absolutely recognise the importance of the issue that she raises. I think I can safely say that her opening speech was one of the most powerful evocations of the importance of that agreement. I pay tribute to her for the courage and clarity of her remarks.

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Robin Walker Portrait Mr Walker
- Hansard - - - Excerpts

The Good Friday/Belfast agreement is and will continue to be secure.

I want to move on, and will turn to amendment 89, tabled by the hon. Member for Arfon (Hywel Williams), along with amendments 313 to 316, tabled by the hon. Member for Aberavon (Stephen Kinnock). These amendments would prevent UK Ministers from being able to use powers in the Bill in areas of otherwise devolved competence. Additionally, the hon. Member for North East Fife (Stephen Gethins), whom we have heard from today, has tabled amendments 161 to 163, which would require the consent of devolved Administrations for UK Ministers to exercise their powers in devolved areas.

I would like to take this opportunity to stress a simple but important fact: the concurrent powers in the Bill do not undermine the devolution settlement. Rather they give the UK Government and devolved Administrations the tools required to respond to the shared challenge of ensuring the operability of our statute book in a collaborative way. This reflects current practice. Concurrent functions have always been a normal part of our devolution arrangements and they are an important tool in ensuring that we can work together in the most efficient way. Take, for instance, new schedule 3A to the Government of Wales Act 2006, which lists no fewer than 34 laws containing concurrent functions for UK and Welsh Ministers, including powers to make subordinate legislation. We should not forget that section 2(2) of the European Communities Act 1972 is concurrent and is routinely used to make a single set of regulations to implement directives relating to devolved matters, such as the Marine Strategy Regulations 2010. Removing the concurrent tool would remove the vital flexibility from which we and the devolved Administrations already benefit in preparing our statute book. Such flexibility and greater efficiency will be crucial if we are to achieve the considerable task ahead of having a complete and functioning statute book on exit day.

Amendments 161 to 163, tabled by the hon. Member for North East Fife, would add to the process additional layers that have not previously been needed for equivalent powers by requiring consent from devolved Ministers. This might render the Government and the devolved Administrations unable to ready the statute book for exit day, and they therefore threaten the legal certainty that the Bill is meant to deliver.

Let me remind Members on both sides of the Committee that the Government have already committed that we will not normally legislate to amend EU-derived domestic law relating to devolved matters using any of the powers in the Bill without the agreement of the devolved Administrations. The powers build on the existing successful ways of working between the UK Government and the devolved Administrations, and the Government have committed to this ongoing collaborative working. I therefore urge those hon. Members not to press their amendments.

I now turn to amendments 158, 159, 318, 320 and 321, tabled by the hon. Members for Cardiff South and Penarth (Stephen Doughty) and for Aberavon. Taken together, the amendments would prevent amendment of the devolution statutes using the powers in clauses 7 to 9 and 17. In addition, amendment 160, in the name of the hon. Member for North East Fife, would require the consent of Scottish or Welsh Ministers if the Scotland Act 1998 or the Government of Wales Act 2006 were amended using the power in clause 9.

I want to start by saying that I have listened to and I am grateful for the debate we have already had on these amendments both in this Parliament and in Committees in other Parliaments. The Committee is right to pay careful attention to any changes to the devolution settlements, so I thank the hon. Members who have tabled these amendments and the Committees of the devolved legislatures that have drafted some of them for drawing attention to these issues.

A number of references in the provisions of the devolution statutes will not make sense once we leave the EU and will need correcting to ensure our statute book continues to function. We recognise the standing of these Acts, and for this reason we have corrected as many deficiencies as possible in the Bill—in part 2 of schedule 3. As Members will no doubt have noticed, these corrections are technical and I stress that they are devolution-neutral. They do not substantively change the boundaries of competence; nor will any of the corrections that are still to be made.

I want to reassure the Committee that we intend to correct the remaining deficiencies by working collaboratively and transparently with the devolved Administrations. Where possible, this will include correcting deficiencies using the existing powers such Acts already contain for amending the reservation schedules. This process with the devolved Administrations is already under way.

Specifically on the power to implement the withdrawal agreement—the topic of amendment 320, in the name of the hon. Member for Aberavon—it can be used to modify the devolution statutes only where it is appropriate to implement the agreement that will result from our negotiations with the EU. It cannot be used to modify them in any other way, and it simply is not true that any UK Minister can make any change they like to the devolution settlements. I hope I have reassured the Committee that the Government do understand that concern, but the amendment does not support our aim of a smooth and orderly exit.

Similarly, amendments 159 and 319 seek to restrict the use of the international obligations power to modify the Scotland Act or the Government of Wales Act. I want to be clear that these powers cannot be used to unpick or substantively change the devolution settlements. As I am sure the Committee will recognise, it is quite normal to use delegated powers in such a way. They have previously been used to amend the devolution statutes to ensure that our laws reflect the most accurate position in law, and ultimately to ensure that we fulfil our international obligations.

Baroness Chapman of Darlington Portrait Jenny Chapman
- Hansard - -

I am slightly concerned that the Minister will sit down before he has had a chance to make any comment on amendment 338, in my name and those of my right hon. and hon. Friends, which would prevent Ministers from legislating in any way incompatible with the Good Friday agreement. I am sorry to refer him back to that, but I am concerned that he has not yet said anything about this amendment.

Robin Walker Portrait Mr Walker
- Hansard - - - Excerpts

I apologise to the hon. Lady. I think I mentioned that amendment in the run-up to addressing the detail of new clause 70 in the name of the hon. Member for North Down, but let me say that Ministers will not and cannot legislate incompatibly with the Good Friday agreement. We are bound by that agreement, and I have been very clear that this Government remain absolutely committed to the Good Friday agreement and have already put our obligations under it at the heart of our commitments.

On amendment 160 in the name of the hon. Member for North East Fife, I want to comment on the fact that such powers have previously been used, because it is important to recognise that this issue has already been addressed. For instance, the Treaty of Lisbon (Changes in Terminology) Order 2011, which was made under section 2(2) of the European Communities Act, amended the Scotland Act 1998, the Northern Ireland Act 1998 and the Government of Wales Act 2006 to give effect to new terminology relating to the European Union. Leaving the EU will require changes of a similar technical nature across the settlements, and that is what the powers enable.

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Conor McGinn Portrait Conor McGinn
- Hansard - - - Excerpts

I am an MP from Northern Ireland, but not a Northern Ireland MP, which makes speaking in debates such as this one rather peculiar, because everyone from Northern Ireland has a background or perceived affiliation. I find, when I say something that nationalists agree with, that they say, “Well, he hasn’t forgotten where he has come from.” When I say something with which they disagree, they say, “He should be ashamed of himself, given where he has come from.” Similarly with Unionists, when I say something with which they agree, they say, “Fair play to him, given where he is from.” When I say something with which they disagree, they say, “Well, what would you expect?” I have a knack of annoying everyone, which I hope to continue in the two minutes available to me.

I want to make a couple of quick substantive points, then say something about the Good Friday agreement. First, the only people seeking to change the border, or who have proposed a fundamental change to the border, are those who propose that we leave the single market and the customs union. It was the UK Government who fundamentally altered the nature of the border when they suggested that, not the Irish Government. The principle of consent is firmly enshrined: Northern Ireland will remain part of the United Kingdom until the majority of the people there decide otherwise. Notwithstanding that, there is a unique position, because people born in Northern Ireland have a right to Irish citizenship by virtue of their birth there. My constituents in St Helens do not have a right to be Irish because they are born in St Helens, nor do people in Manchester, Birmingham, Glasgow or Cardiff.

Baroness Chapman of Darlington Portrait Jenny Chapman
- Hansard - -

I thank my hon. Friend for giving way at this late stage. Like him, I am deeply disappointed by the Government’s inadequate response to arguments made today to protect the Good Friday agreement. I am also disappointed that they appear to be prepared to risk a vote that could be perceived as challenging bipartisan support for the agreement, but we are not prepared to do that, so we will not seek to divide the Committee. I thought my hon. Friend should know that before he continues.

Conor McGinn Portrait Conor McGinn
- Hansard - - - Excerpts

I thank my hon. Friend for that; the position is very strong and very clear.

The legacy of the peace process is not a Labour legacy; it is a legacy shared between us all. I hope that the Conservative party will reflect on that in these debates, and I am disappointed that the Government have not accepted the new clause today. It is disingenuous to say that the European Union is not mentioned in the Good Friday agreement. Its writ runs through the Good Friday agreement, which was predicated on the basis that we would both remain members of the European Union, and around strand 2, which is north-south co-operation, and strand 3, on east-west co-operation, it is mentioned specifically in terms of areas we can discuss, and there are shared competences.

I want also to remind the Committee that although we talk a lot about the referendum to leave the European Union and its result, the Good Friday agreement was passed by referendums on both parts of the island of Ireland by a majority of people exercising their democratic right. We need to respect that referendum as well as the referendum on the European Union.

The debate focuses primarily and largely on trade, tariff and regulatory alignment. The Good Friday agreement and the peace process are much more than that. I said in this House in my maiden speech that there was no contradiction in being British and Irish, or to having feelings of loyalty, affinity and affection for both countries. That is being tested by this process, but I stand by it. I plead with the Government: through this Brexit process, do not make people choose.

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Oliver Letwin Portrait Sir Oliver Letwin
- Hansard - - - Excerpts

I do not think there is the slightest chance that a withdrawal agreement will be put before the House that does not specify, or enable one to calculate, an amount of money, because there is no indication that the EU would accept such a thing. Whether or not we should be paying such an amount is a separate matter. In any event, as my right hon. and learned Friend the Member for North East Hertfordshire (Sir Oliver Heald) just said from a sedentary position, if that is a deficiency of a forthcoming money resolution, it is a deficiency shared by new clause 17, which also does not stipulate anything about an amount. One way or the other, I fear that the new clause is otiose. It has given an admirable opportunity for the hon. Gentleman to make an interesting speech, but that is its only virtue. The House should have nothing further to do with it.

Baroness Chapman of Darlington Portrait Jenny Chapman
- Hansard - -

It is a real pleasure to be called to contribute. I wish to speak to new clause 80 and amendments 339 and 340 in my name and the names of my right hon. and hon. Friends.

New clause 80 would require a vote in the House on the financial settlement that the Government agree with the European Union. Further, it would require the House to be informed in its decision on that matter by reports from the Office for Budget Responsibility and the National Audit Office. Amendments 339 and 340 would prevent tax or fee-raising powers from being established via tertiary legislation and limit any fees that are levied by public bodies to the cost of the service that the fee is intended to cover.

I should start by referring Members to the third report of the House of Lords Delegated Powers and Regulatory Reform Committee from September, which examined the Bill before us today. The report draws our intention to the fact that the delegated powers memorandum notes that those powers would enable

“the creation of tax-like charges, which go beyond recovering the direct cost of the provision of a service to a specific firm or individual, including to allow for potential cross-subsidisation or to cover the wider functions and running costs of a public body.”

The report alerts Parliament to the danger of allowing organisations full-cost recovery of their services without parliamentary scrutiny as it could allow them to gold-plate the services that they offer. As the report says:

“A tax-like charge means a tax.”

And it

“should not be allowed in subordinate legislation. They are matters for Parliament, a principle central to the Bill of Rights 1688. Regulations under clauses 7 and 9 cannot impose or increase taxation.33 But regulations under Schedule 4 may.”

The report goes on to make the point that that means that Ministers can tax. They can

“confer powers on public authorities to tax and they can do so in tertiary legislation that has no parliamentary scrutiny whatsoever.”

New clause 80 also addresses this issue of a lack of parliamentary oversight. As we all know, the Government are in the process of attempting to conclude the first phase of negotiations with the European Union. Part of that process is agreeing a financial settlement, which reflects the obligations that the United Kingdom has incurred as a result of its membership of the European Union. Labour has always been clear that Britain should meet its obligations. We cannot seriously hope to make new agreements on the international stage if we are seen to go back on what we have already agreed. Britain is a far better, fairer and more reliable ally than that.

As the Chancellor said when he attended the Treasury Committee today:

“I find it inconceivable that we as a nation would be walking away from an obligation that we recognised as an obligation.”

He continued:

“That is just not a credible scenario. That’s not the kind of country we are and frankly it would not make us a credible partner for future international agreements.”

On that, we are agreed. But we have also been clear that the deal must be fair to the taxpayer. Already the Government are attempting to bypass the scrutiny that should take place in this Chamber. This money belongs to the UK taxpayer and they have a right to know how much, and for what they are paying. It is true that the public interest in discovering more about the financial settlements that the Government intend to make with the EU is great, and that there will inevitably and rightly be extensive media coverage. The details, some certain and some speculative, will be pored over by commentators. Estimates will be made and objections proffered on the basis—sometimes, I venture to say—of inaccurate or incomplete information. That is not a satisfactory way to proceed. The House must get a grip of this process and demand the ability to scrutinise and take a view on the deals reached.

Our new clause argues that this House should have a vote, and also that the vote should be properly informed. Being properly informed means that independent analysis by the OBR and the NAO must be provided to assist this House in its consideration of the deal. We are going to need that, because the financial settlement will not be straightforward, and unvarnished truths will be hard to come by. Crudely speaking, the Government will try to make the amount look as reasonable as possible and the EU will try to show that it has everything that it thinks it is due.

The Government will want to highlight estimates that show how payments will be less than half the €100 billion liability, once UK projects have been taken into account. As Alex Barker in the Financial Times put it last week:

“Ministers are banking on Treasury budget wizards making the exit price look as small as possible.”

The two sides in the negotiation could look at the same agreement and come up with net estimates that are quite different.

Helen Goodman Portrait Helen Goodman
- Hansard - - - Excerpts

I am just puzzling over how the Government think this will work. Has my hon. Friend thought about this: it is highly likely that we will make not one big payment, but a number of payments over a period of time, which means that the payment could be spread into another Parliament? Given that no Parliament can bind its successor, how does she think that the Government can make this agreement?

Baroness Chapman of Darlington Portrait Jenny Chapman
- Hansard - -

That is a very interesting point. As a fellow member of the Select Committee on Procedure for several years, I am not surprised that my hon. Friend has spotted this. I would be fascinated to hear what the Minister has to say about that when he gets to his feet later this evening.

Parliament ought to have the ability to debate, scrutinise and reach its own conclusion on this matter. If we do not, we will be the only people not tussling with it. This Parliament wants to do as the people said we should: take back control. The Chief Secretary to the Treasury said in response to an urgent question from my hon. Friend the Member for Nottingham East (Mr Leslie) that to give Parliament details about the settlement

“would not be in our national interest”—[Official Report, 29 November 2017; Vol. 632, c. 327.]

That is not good enough. She said that she will “update the House” when there is more to say, but we do not want to be updated; we want the ability to decide.

Exiting the EU: Sectoral Analysis

Baroness Chapman of Darlington Excerpts
Tuesday 7th November 2017

(6 years, 7 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Steve Baker Portrait Mr Baker
- Hansard - - - Excerpts

My right hon. Friend is being perhaps unnecessarily unkind to me. I am sure that I did attend the entire debate, although I might have slipped out briefly. Perhaps I should watch the entire video over the weekend, but we will see. I would say to her that there has been no suggestion of redaction from the Treasury Bench, and certainly not during the course of that debate. That came from the Opposition Front Bench, when—

Steve Baker Portrait Mr Baker
- Hansard - - - Excerpts

The hon. Lady says that is not true, but the record will show that when the right hon. and learned Member for Holborn and St Pancras (Keir Starmer) was standing at the Dispatch Box, in dilating on his experience as Director of Public Prosecutions, he offered redaction, gisting and summaries—[Interruption.] He did that in his opening speech, whatever the hon. Lady may say.

Oral Answers to Questions

Baroness Chapman of Darlington Excerpts
Thursday 2nd November 2017

(6 years, 8 months ago)

Commons Chamber
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Steve Baker Portrait Mr Baker
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The hon. Gentleman knows that we wish to have a deep and special partnership with the European Union, including a free trade agreement of unprecedented scale. I very much hope and expect that we will be able to conclude tariff-free trade.

Baroness Chapman of Darlington Portrait Jenny Chapman (Darlington) (Lab)
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The Government are letting farmers down. They cannot even agree on what type of chicken we should allow to be imported after we leave the European Union: the International Trade Secretary says he is relaxed about lowering animal welfare and food standards, and the Environment Secretary has said the opposite. What is the Government’s position on the importation of chlorinated chicken?

Steve Baker Portrait Mr Baker
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In due course, when we have left the European Union and we are fully free to operate our own independent trade policy, I look forward to the debates in this House on all these matters.

Oral Answers to Questions

Baroness Chapman of Darlington Excerpts
Thursday 7th September 2017

(6 years, 9 months ago)

Commons Chamber
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Steve Baker Portrait Mr Baker
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The Government are committed to maintaining food standards, which will be a matter for the House of Commons to decide in future. I remind Members that the European Union (Withdrawal) Bill will bring EU law, as it applies to the UK, into UK law, so that it will continue to apply.

Baroness Chapman of Darlington Portrait Jenny Chapman (Darlington) (Lab)
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The Government know that the UK relies on the EU for 25% of our food and that we grow just 15% of our own fruit and 55% of our own vegetables. The Minister is nostalgic for decades past, but—assuming that the Government do not intend UK households to return to consuming Spam and tinned peaches—can he assure us that he is not considering imposing tariffs on EU food imports?

Steve Baker Portrait Mr Baker
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The House has heard the word “fantasy” since it reconvened after the recess, and the hon. Lady has now put before it a fantastical proposal. We will ensure that the UK continues to enjoy the widest range of products available in our shops.

Oral Answers to Questions

Baroness Chapman of Darlington Excerpts
Thursday 27th April 2017

(7 years, 2 months ago)

Commons Chamber
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David Jones Portrait Mr Jones
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My right hon. Friend has set out the Government’s position admirably.

Baroness Chapman of Darlington Portrait Jenny Chapman (Darlington) (Lab)
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Visiting the north-east is always a good thing to do, and we are very happy to have the Minister, but he does need to listen while he is there. The Engineering Employers Federation has warned that walking away with no deal would condemn north-east manufacturing to

“a painful and costly Brexit.”

The EEF wants the Government, instead of posturing, to focus on obtaining full World Trade Organisation membership, a clear position on customs and a sensible transition period. Why are the Government not listening to the needs of manufacturers in the north?

David Jones Portrait Mr Jones
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On the contrary, we deal regularly with manufacturing industry. Indeed, I recently had a meeting with the EEF that was very successful. The fact of the matter is that we are intending to seek the best possible free trade agreement with the continuing European Union. Our position will be, however, unlike that of Labour, that no deal is better than a bad deal. I find it extraordinary that the Opposition seem to think it sensible to go to the negotiating chamber expecting to have no deal.

Oral Answers to Questions

Baroness Chapman of Darlington Excerpts
Thursday 9th March 2017

(7 years, 3 months ago)

Commons Chamber
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Robin Walker Portrait Mr Walker
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The common travel area is of benefit to the whole UK, including Scotland. The people of Scotland voted decisively less than two years ago to remain part of the UK, and we should all work together to make this process a success for the United Kingdom.

Baroness Chapman of Darlington Portrait Jenny Chapman (Darlington) (Lab)
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It is reassuring to hear the Minister’s words on this issue. He will know the level of concern across this House and out there in the country. If he has not read it, I recommend to him the recent House of Lords report, page 63 in particular, which states that we cannot assume that this matter will become part of the article 50 negotiations. If that does not happen, he must act quickly to reassure the people of Ireland and the UK and ensure that it is done either as part of the article 50 negotiations, or that it happens in time, because certainty is needed more than anything in Northern Ireland.

Robin Walker Portrait Mr Walker
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The hon. Lady is right that we need to do everything we can to provide certainty, and we will take on board the suggestions of the House of Lords report. However, I welcome the statements we have seen from the Commission showing that it is taking a strong interest in this subject.