European Union (Withdrawal Agreement) Bill
Baroness Quin ExcerptsThursday 16th January 2020
(4 years, 3 months ago)
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Lord Lea of Crondall (Non-Afl)
My Lords, the President of the European Commission indicated last week that there was no way that the Government’s open-ended agenda—I stand to be corrected about the detail of the shopping list for the rest of this year—could be dealt with by the end of this year. Indeed, it is seen in Brussels as simple wishful thinking; Boris Johnson will think of another wheeze in time to keep the show on the road.
Instead of “Get Brexit done”, the real question is “Let’s get Brexit real”. At the moment, we assume that the starting point was something like the withdrawal agreement and political declaration of October 2019, but we would like to see a credible programme of what the Government will try to negotiate by the summer or autumn in order to meet the commitment made by the Prime Minister. It is in that connection that we could have something like EEA/EFTA as a point of reference—a tick-box, if you like—for many of the questions that will arise. We have just heard an interesting debate about Erasmus, but there are 20 or 30 such subjects, all of which will need decisions, including in many cases on their compatibility with free trade for the rest of the world—all that work has been done over many years since the Stockholm Convention of the late 1950s and Britain’s participation in EFTA and, eventually, the EEC in 1973-74. We have now therefore to set out where we want to be on the whole range of things where we have alignment at the moment.
The Government often say “We have alignment at the moment”, so why not say the next thing? If we are taking some comfort in the fact that we have alignment at the moment, is not the question surely why we want to move away from it? Do Her Majesty’s Government have some ideological reason for moving away from alignment? At the end of January, we will be putting out the flags to say Brexit is all done—it has hardly started, as we know.
The EFTA and EEA agreements have other consequences as well. I am not suggesting that we would enter into them, given the short title of this Bill, but they include the very important questions of jurisdiction of settlements of disputes, the arbitration panel and so on, all of which are important if we want to continue to attract foreign direct investment into Britain. As the Financial Times charts, this is going down very rapidly, partly because these rather straightforward decisions have yet to be made. If they are not made very soon, there will be an assumption that the Government have not thought through how these Brexit-related issues will be resolved.
To remind ourselves, the EEA agreement provides for a free trade area covering all the EEA states. It does not extend the customs union to the EEA/EFTA states. The free trade area also abolishes tariffs on trade between the parties, but there are still border procedures. This is a model that I hope the Government will not run away from simply because it was not their idea in the first place. To get Brexit real, these become very serious options for consideration, and I hope that the Minister will agree that we should look at all these questions on their merits and at having a framework for the compatibility of them all. Looking at each question one by one is not necessarily the most helpful way to see how a framework can be agreed. Surely, by the end of this year, the notion is not just that we will have a number of separate agreements on everything under the sun but that we will have some sort of framework, because there are consequences between the different silos in any framework. I hope the Minister appreciates that—I say it in a constructive spirit—because it is, unfortunately, against the background that we will have left the European Union, possibly to rejoin the EEA at a later point. That is another question, but it is not something that the Minister should balk at simply because it sounds like a stalking horse for rejoining the EU. It is a perfectly good shopping list for the Government. I would like to know when the Government’s framework concept for the negotiations in the next few months will be published, or will the Government just keep all their cards up their sleeve and not publish such a thing?
Take the question of jurisdiction: it is very odd indeed that we should now want to attach more importance to jurisdictions where we have no judge, as we do in the European Court of Justice at present. During the transition and under the future envisaged in the political declaration, does the Minister agree that we will have to accept that it will be for the ECJ, without a UK judge, to present the authoritative view in any imaginable case between the EU and the UK before the new arbitral tribunal?
We know that there are issues that do not necessarily fit within the framework that I have just described, such as the free movement of persons and mutual recognition of diplomacies. There are limits to how far one wants to go in putting everything in what we might call a framework agreement but, again, a lot of work was done in the EEA negotiations. If we are going to shadow anything to see what works and what does not, that would be an excellent place to start. It would be far more effective than a one-off set of negotiations on a whole range of things one at a time. I hope that, in that spirit, the Minister will agree that there could be value to the Government in looking at such a framework.
Baroness Quin (Lab)
My Lords, I have not spoken on this Bill so far, because I was not able to attend the closing speeches at Second Reading, though I have followed most of the Bill proceedings. I added my name to the amendment moved by my noble friend Lord Lea because I felt that it was a way of raising the issue of how close we manage to stay to the European market after Brexit. The amendment of course raises the importance of alignment. We have already heard several times from Ministers today that we are not leaving Europe even though we are leaving the EU, yet in so many ways we are putting obstacles in the way of our ongoing relationship with Europe. In terms of alignment, there is much emphasis on having freedom to make our own standards, but this seems quite an illusory freedom in many ways, which is probably not in our interests. Obviously, there may be some rules within the EU that we do not particularly like, but most of the rules we have agreed over the years are as part of the single market, which the United Kingdom very much pushed for in its early stages. Most of those standards and rules concern such things as consumer safety, environmental standards and sensible trading arrangements: we must not forget that as we move forward. In many ways, we actually made those rules: we were the prime mover in making those rules in the European market.
One of the arguments against being too close to EFTA was that that would make us rule-takers rather than rule-makers. Of course, that argument already concedes the fact that we have been rule-makers in the past. Within the EFTA arrangements, there are certainly ways in which we can influence the rules, which will not be the case if we do not follow any kind of close alignment after Brexit.
I have been struck in the course of our debates by how the issues I have been raising have been translated into vivid examples in different parts of the UK. I was very struck by the remarkable debate that took place quite late on Monday night about Northern Ireland, about the importance of the single market to Northern Ireland’s relationship with the Republic and how vital unfettered access to the UK market is to Northern Ireland. In particular, my noble friend Lord Hain made that point very powerfully, and there does not seem to be any easy answer. I cannot understand, and nobody has been able to explain it to me so far, why the arrangement consists of trying to assess whether goods that go into Northern Ireland from the UK may, or may be likely to, end up in the Republic of Ireland. I have no idea how that system of assessment is going to work. It seems unworkable and the debate in your Lordships’ House on Monday night underlined that point very strongly.
We also know that Scotland is very keen to keep as close to the European market as possible and is concerned about the Government’s trading stance. In my own part of the country, the north-east of England—the Minister will not be surprised that I mention it, because I always do—a higher proportion of our trade goes to the European market than any other region of the UK. When the Prime Minister visited the north-east recently, before election day, I was very much hoping that someone would ask him whether he accepts the figures of his own Government that the north-east is going to lose out in so many specific ways. He was never asked that but I would have liked to ask him whether he accepted those figures or, if he did not, what his own figures were. Perhaps the Minister will give us some clarification of that now. Certainly, our future trade arrangements will be vital to the future of the north-east economy.
There is a political point that needs to be made. We know that the referendum result in 2016 was narrow and that, despite the Government’s handsome majority of seats in the House of Commons now, none the less those people who voted for parties who either wanted a second vote or were in favour of remain comprised 53% as opposed to 47%. That is a contrary picture to that in 2016 and for that reason, while the Government have a mandate in terms of seats to go ahead with Brexit, they also have a responsibility to work towards a solution that will at least not seem totally antagonistic to what the other part of our population actually thinks. For that reason, a compromise would be to stay as close to the European market in as many constructive ways as we can.
We have just had a fascinating debate about Erasmus: that is a very good example of the kind of thing I am talking about. I urge the Government to look at this whole issue of alignment and staying close to the European market in a much more positive and constructive way than they have up to now.
Lord Callanan
I do not think that I said that. However, the noble Lord is right—although I did not say it on this occasion—that of course we are starting from a position of alignment. I do not have his amendment in front of me, but I think it refers to the EEA: it is the purpose of the amendment he has tabled, which is why I was exploring the issue.
The point I was going to go on to make is that the EEA is an agreement between the European Union member states and a number of EFTA states, and it is not open to the UK just to be able to join that agreement. We will leave it when we leave the EU part of that agreement, but the EU would almost certainly want to renegotiate it, because it was never designed for a country the size of the UK. That is if we did want to join it, but as I will shortly set out, I do not think it is desirable that we should. It is not a simple case, even if we wanted to, of happily trotting off and joining the EEA agreement: there are a number of other countries which are in at the moment that would no doubt have some observations on that.
My point is that attempts to remain in the EEA agreement beyond exit would not deliver control of our borders or our laws—two of the main three pillars of our argument for why we need to leave the EU. On borders, it would mean having to continue to accept all four freedoms of the single market—I take the point made by the noble Lord, Lord Lea, that we could perhaps pick and choose which ones we wanted to abide by or align with, but I suspect that the EU might have something to say about that. However, we would of course have to accept free movement of people. On laws, it would mean that we would have to implement all new EU legislation—as the noble Baroness, Lady Quin, said, we would be rule-takers. The noble Baroness was not in her place last night, but I quoted Mark Carney, the Governor of the Bank of England, who said how dangerous it would be, as we seek to manage one of the largest and most complex financial markets in the world, to turn ourselves into rule-takers, whereby the rules were set by another jurisdiction. Despite Mark Carney’s views on EU exit, which are well known, he made it clear that he thinks that it would be an unacceptable state of affairs for us to proceed with. It would mean that the UK would have to implement all new EU legislation for the whole of the economy, including services, digital and financial services.
We do not believe that that would deliver on the British people’s desire as expressed in the referendum to have more direct control over decisions that affect their daily lives. Rules would be set in the EU that we would then have to abide by. The public want the Government to get on with negotiating this future relationship, which was set out in the political declaration, without any further unnecessary hurdles, and that is what the Government will do.
Baroness Quin
I am listening carefully to what the Minister says, but he is responding to something that the amendment does not say. It does not say “rejoin” or “join” EFTA or the EEA but simply that we should have a look at what is happening in that process and look at areas where we would want to align with it.
Lord Callanan
The amendment refers to the EEA, and the noble Lord, Lord Lea, indicated earlier that he would be in favour of joining it, so I was making the arguments against that. However, we have also explored the arguments on alignment at different times in the past, and it may well be as a result of the negotiations that there are some areas of EU legislation that we may wish to align with or put in place an equivalence procedure. That is all for the future negotiations.
As we have said on many other amendments, we do not believe that it is a sensible tactic to set out our negotiating objectives in statute, or that setting a negotiating objective along the lines of that advocated in the amendment would be what the public voted for in the general election or in the original EU referendum. Our manifesto at the election was explicit about the Government’s intention and determination to keep the UK out of the single market. On that basis, although I suspect that I have probably not satisfied the noble Lord, I hope that he will feel able to withdraw his amendment.
Queen’s Speech
Baroness Quin Excerpts(4 years, 6 months ago)
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Lord Lilley (Con)
My Lords, it is a pleasure to follow the noble Lord, Lord Pendry, and to be able to agree wholeheartedly with so much of what he said, with the importance of the issue he raised and with his final sentiments.
I hope that the British Government and the EU will, over the next 24 or 48 hours, reach an agreement that the United Kingdom can leave the EU on 31 October, with a free trade agreement with the EU, and allowing the UK to negotiate its own trade deals with the rest of the world. However, before discussing those issues, I must make a confession. As a Minister, I misled the British people in two respects pertinent to our discussion of those issues, and I want to set the record straight.
As Secretary of State for Trade and Industry under Margaret Thatcher and then John Major, I was responsible for negotiating the Uruguay round, which halved tariffs, began to pare back non-tariff barriers and, eventually, set up the World Trade Organization. I was also responsible for implementing the single market programme that made us part of the single market. When doing so, I made enthusiastic speeches about how both these agreements would boost Britain’s exports to the world and the EU. As a scientist by training, when I make a prediction, I subsequently try to check whether it has come true. If it has, I claim credit for it. If it has not, I usually keep quiet, though I try to learn from my previous failures, so that I can do better next time.
Looking back on both the Uruguay round or World Trade Organization and the single market, what effect have they had on our exports? In the quarter of a century since the WTO was established, our goods exports to those countries with which we trade just on WTO terms have risen by 87%. That is a fair amount, but anyone looking at it fairly must recognise that, on previous trends, a large amount of that growth would have occurred anyway. A small part of it only can be attributed to the near halving of tariffs between industrial countries and the removal of some non-tariff barriers. Growth of our exports to the EU single market over the last quarter of a century has been even more disappointing—20% barely, over 25 years, which is less than 1% a year, less than the trend before the single market was growing and less than most people would have expected had there been no single market to encourage and promote our exports. It is true that, over that period, our imports from the single market and the rest of the Common Market grew substantially and, as a result, our deficit in goods with Europe rose. All the figures I have referred to are for trade in goods. Our deficit in goods has reached nearly €100 billion, which wipes out the surplus that we earn with the rest of the world on all our trade.
My conclusion is not that trade deals are useless but that they are far less important than both sides of the debate about Brexit realise. Be they free trade agreements or the less conventional, but supposedly much more thorough, single market, they have much less effect on our trade than most of the discussion in this place would lead us to believe. They can be useful. I certainly prefer low or no tariffs to high or rising tariffs. I prefer the removal or reduction of non-tariff barriers, but what drives trade is not trade agreements; it is producing goods and services other people want to buy and getting out and selling them. And what drives that is much more than trade agreements; it is what Keynes called “animal spirits”, which are more likely to be stimulated by creating a competitive domestic environment, by reducing the regulatory burden—without reducing standards, by the way—and by better skills and more investment. It is that rather than trade deals, useful though they can be.
Be that as it may, the core argument of those who have been trying to persuade the people of this country to reverse the decision they took in June 2016 and remain in the EU is that our prosperity depends on us giving up our democratic national control of our trade, regulatory and economic policy. They assume there is a trade-off between prosperity and democracy. I do not think that is true. Prosperity and democracy normally go hand in hand because, in a democracy, if the Government do not deliver prosperity, you chuck them out and replace them with a Government that can do better. Unfortunately, that is not what the EU is like. Its effective Government, the Commission, is not elected and cannot be removed. Its main economic policy is the euro, which has been a disaster, particularly for southern Europe. Some 40% of young people in Spain are unemployed, 45% in Italy and 53% in Greece. Millions of people of all ages have lost their jobs, but no Commissioner has lost his or her job because they are not accountable in the way we expect.
Baroness Quin (Lab)
My Lords, I think I heard the noble Lord say that the Commission cannot be removed. That is not true. The Commission has to be appointed by the European Parliament and sometimes it does not accept the nominee of the particular country, and also each country is itself ultimately responsible for appointing its own Commissioner. Moreover, it is possible for the European Parliament to sack the Commission as a whole. I do not know why the noble Lord has made this claim.
Lord Lilley
Theoretically it can, but de facto it cannot. The European Parliament did once sack the whole of the European Commission because of corruption when Madame Cresson appointed her dentist, but then the Commissioners were virtually all reappointed. If that is the noble Baroness’s idea of democratic accountability, I have to tell her that it is one of the reasons I am in favour of getting out.
It is indeed that lack of accountability which makes me—
Baroness Quin
My Lords, the Queen’s Speech this year was perhaps the strangest one that I have experienced since I entered the House of Commons in 1987. In some ways, it seemed a very odd occasion, with a Government that do not have a majority bringing forward a programme that does not seem to be implementable and a Government, moreover, which have been at odds with Parliament over the illegal Prorogation as well as over one of the central aspects of their Brexit policy. Indeed, the speech read a bit like an election pitch, and I almost wondered whether the whole occasion should perhaps be charged to the Conservatives’ election campaign.
We have heard a couple of very interesting speeches, which makes me want to apologise, like the noble Lord, Lord Butler, for bringing us back to Brexit. We are all grateful in particular to the noble Baroness, Lady Helic, for bringing in so many important foreign policy issues on which we ought to be concentrating, and I certainly hope we have that opportunity in the future. None the less, I do want to speak about Brexit, partly because it is the crucial issue and partly because I was not able to speak in our most recent debate on the subject, on 2 October, which I felt was a remarkable debate marked by some great speeches and some deep knowledge.
In the debate on the Queen’s Speech on Monday, the Leader of the House said that the views of the House of Lords were very important to the Government and to our political system. I would that this Government and their immediate predecessor had taken much more note of the views of the clear majority of this House on the Brexit issue. At the moment, we are all trying to focus on what is happening, on whether or not there will be a deal in the next few days, and what the nature of the deal will be. Will it be as good as Mrs May’s deal? Will it be as good as the deal that we have now? The signs are not very promising.
There are also a lot of questions about timing. Is a deal practicable by 31 October? What about the translation of texts and all the legal processes that have to be gone through? Yesterday, from the Front Bench, my noble friend Lady Hayter raised the question of the provisions of the Constitutional Reform and Governance Act, and I hope the Minister will respond to the point that she raised. If there is a deal, what do the Government envisage as a transition period? Originally, we asked for a two-year transition period and the EU offered us 20 months. What do the Government now envisage? Do they envisage a 20-month transition or, say, just 14 months, which would go on to the end of December 2020? We should be grateful if the Government could clarify this.
I am glad to see that the Minister the noble Lord, Lord Ahmad of Wimbledon, is in his place, because I would like to refer to some of the points he mentioned yesterday which rather alarmed me. He gave a wildly optimistic picture of striking new trade arrangements, helping UK businesses to expand into new markets and maintaining the UK’s leading position as,
“the number one destination in Europe for foreign direct investment”.—[Official Report, 15/10/19; col.37.]
How easy is that going to be while we are exiting the EU and not being part of its single market or customs union?
As regards trade figures, while I am a great fan of India as a country, none the less we export twice as much to Belgium as we do to India. Great play is often made by the Government of seeking new markets, particularly in China. Germany already exports five times as much to China as we do, and it does not need to have left the European Union in order to do that. Why is the European Union apparently such a barrier to expanding our trade?
I was also concerned about the comments on freedom —that, somehow, we will be able to set our own rules and follow without influence. I do not understand how we will continue to export to the European Union unless we adopt their standards of consumer safety, environmental protection and so forth. Some of the freedom that has been talked about seems entirely illusory and worse than that because we will lose our influence in setting those rules. In recent years, industry has made the point very strongly to me that, within the single market, British industry has been very influential in setting the rules and the agenda. I was particularly impressed by the evidence that the Creative Industries Federation gave to me on that subject.
I am also alarmed about the effect on my own area in the north-east of England. Government figures for the past three years show that that part of the country will be more dramatically affected than anywhere else. I know that the noble Lord, Lord Callanan, shares my passion for the north-east of England, but I do not understand how the north-east will flourish if the government figures are anything like accurate for the next few years. That worries me a great deal. When we talk about foreign direct investment, we know that a lot of that investment is linked to the fact that we are part of the European single market. Indeed, Nissan made that position very clear in recent days. That also worries me a great deal.
As well as being very concerned about trading issues, I am also deeply concerned about the consequences for the future of our union if we go down the Brexit approach that we have been pursuing. I do not know the details of the latest proposals for a deal. Some people have said that it means re-erecting a border in the Irish Sea. I hope that that is not the case. But the arrangement that we have at the moment suits the economies of both Northern Ireland and the Republic of Ireland. To change that situation is something that we do at our peril. I worry about the future of Northern Ireland and the peace process as a result of this. I also worry about some of the other measures that the Government have been proposing. For example, how would the immigration Bill announced in the Queen’s Speech that aims to end freedom of movement affect the border between Northern Ireland and the Republic? I would like an answer to that question from the Government.
I am also very concerned about the situation in Scotland. I say that with some emotion. I feel British rather than English, having both English and Scottish forebears—and indeed some Irish forebears, come to that. I campaigned ardently for Better Together in the referendum campaign and I live in Northumberland, not far from the border. The thought of that becoming an international border in the future fills me with absolute dismay. Again, if there were an independent Scotland with its own immigration policy, I do not see how you could avoid some sort of border control in that circumstance, which would be tragic given the history of our union and the fact that so many people, like me, have mixed heritage and therefore a British loyalty rather than simply a loyalty to a country of the UK.
I would like to see the choice given back to the people. I do not like referendums. As far as I know, I have never actually voted in a referendum during my time in Parliament. None the less, the logic of it seems to me that if people had the vote at the beginning of this process, they ought to have the vote on the final option. I do not think it would be particularly easy for either side to win that referendum, so I certainly do not approach it feeling that there would necessarily be a foregone conclusion, but it makes sense.
However, a lot of nonsense is still being talked about the first referendum. The Government frequently say that it was the biggest democratic exercise in our history. My understanding is that that is not correct. There was a bigger turnout in the 1992 general election, and I think more people actually voted in that election, even though the population of the UK was smaller then than now. If we go back even further in time, the turnout was greater also in the 1945 election, so the claim that it was the biggest democratic exercise does not hold water. Also, the result was very narrow and two parts of our union, Northern Ireland and Scotland, both voted remain. That provides a lot of difficulties for the future.
I also hear the argument being made repeatedly that, “Oh, it was in the parties’ manifestos in the 2017 general election, so we must honour the result of the referendum”, but the Government did not win an overall majority as a result of that election. My own part did not win either, so the electorate hardly gave a ringing endorsement to the manifesto of any party in that election. I think the people should be allowed to think again. The idea that we can just say to them “Well, you’ve thought once, but we will never allow you to think again” does not make any sense to me whatever.
As someone who knocked on a lot of doors during the referendum campaign—I will not be alone in this—some issues, such as the Northern Ireland one, were never mentioned at all on the doorstep, even though that issue has taken up so much of the debating time in this House subsequently, and quite rightly so. For all those reasons, the people should be asked to have a think again about it and give their view. We will have to live with the result, which might be one that I will like, but it might be one that I will not. In the meantime, I wish those marching this weekend on 19 October every success. The previous march was a huge success in calling for a people’s vote and I hope that this one will be equally successful.
My final comment is a plea: if we do exit at the end of October or shortly afterwards, I hope we will not enter some phase whereby those on the leave side will be triumphalist about this situation. I was shocked that Jacob Rees-Mogg should talk about “remainiacs”, as he did this week. I am also shocked by some of the language that is being used. I was shocked, perhaps not surprisingly, by a tweet from Nigel Farage, which showed a photograph of a large number of union jacks flying outside Parliament. It said:
“Share this photo to wind a Remainer up”.
As a remainer, I am not wound up by the sight of the union jack. I am proud of it, it is our flag and it belongs to the whole country. I think the false patriotism that is being expounded by some people in this debate is absolutely contemptible.
We all care about the future of our country and the future of the parts of the country which we come from, so I hope that, whatever the outcome, triumphalism will be avoided. If my side won in another referendum and we stayed in the European Union, I can assure Members of this House that I would not be triumphalist. I might heave a huge sigh of relief, but I hope then I would be able to go on and tackle some of the other great issues of the day along with colleagues in this House—issues which have been raised in this debate—and look all together at the challenges and opportunities for our country as we move forward.
No-deal Update
Baroness Quin Excerpts(4 years, 8 months ago)
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Lord Callanan
There were a number of questions there; I think I wrote them all down but I am sure the noble Baroness will remind me if I forget any. On agriculture, I am happy to confirm that the Government have said that all existing CAP payments will be continued after we leave the EU. Indeed, it is possible that additional payments will be available to farmers if required because we recognise that one of the challenges that the farming community will face is the application of the EU’s common external tariff, which, because of the protectionist nature of the EU, is particularly high with regard to farming products. We recognise that agricultural communities face a particular problem.
Of course these guarantees apply across the entire nation. I can say with particular regard to Wales, but also with regard to Scotland, that the devolved authorities have been involved in all our planning. Indeed, Ministers from the Scottish and Welsh Governments, together with Northern Ireland civil servants, were present at our XO Cabinet committee meetings last week. Jeremy Miles from the Welsh Government was there last week.
I have to say that I did not understand the noble Baroness’s question about the settled status scheme. Obviously, EU citizens in Wales can apply to the Home Office for settled status, just as they can in every other part of the UK. I am not sure that there would be any particular benefits in having a separate process for those EU citizens living in Wales. I did not quite understand the point of that. Perhaps the noble Baroness can talk to me afterwards and we will try to resolve that issue.
Baroness Quin (Lab)
My Lords, the Prime Minister famously said earlier this summer that the chances of leaving without a deal were a million to one against. Does the Prime Minister still feel that those are the odds? If not, what is his assessment of what the odds are, faced with current circumstances? Following what has been said about Wales, is Operation Yellowhammer also looking at the regional implications within Britain of a no-deal Brexit? With regard to the point made about publication, it would be very welcome if information about this were to be published.
Lord Callanan
Probably like the noble Baroness, I am not particularly a betting fan, so I will decline the invitation to put odds on the prospect of a deal. I will just say that we are working extensively towards one. I repeat that we want a deal and we think that the EU wants one too, but I have to say that some of the movements in Parliament in another place are not making it any easier to get one.
With regard to local government, yes, we are in extensive consultation with local government across the UK. We fully realise the role that local government will have to play in the preparations. Additional funding has been made available to local resilience forums and to individual local authorities. The Secretary of State for Housing, Communities and Local Government has regular conference calls with leaders and elected mayors. All local authorities have appointed a Brexit lead with funding that has been made available, and we are working extensively with local government in the regions and around the country. The noble Baroness’s points are well made.
Brexit: Petition to Revoke Article 50 Notification
Baroness Quin Excerpts(5 years, 1 month ago)
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Baroness Quin
To ask Her Majesty’s Government when they will respond to the petition created by Margaret Anne Georgiadou to revoke their notification of 29 March 2017 in accordance with Article 50 of the Treaty on European Union and to remain in the European Union.
The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)
My Lords, the Government will respond to the e-petition on revoking Article 50 in due course and within the required 21 days for a government response. It remains government policy that we will not revoke our Article 50 notice.
Baroness Quin (Lab)
My Lords, I have seen the response that the Government have already posted on the website. It is rather dismissive, simply repeats earlier responses and keeps the date of 29 March as a possibility for leaving. May I suggest an amended response to the Minister? It is: “Recognising that a petition which now has the support of pushing towards 6 million signatures cannot simply be dismissed as coming from an out-of-touch elite but represents an impressive swathe of opinion from right across the country, the Government from now on will ensure that the UK does not leave the EU without a deal and that any deal agreed by the Government and Parliament, however long that takes, will be put to the public in a public vote so that they can judge it alongside the option of staying a full member of the European Union”.
Lord Callanan
Of course we respect everybody who signed the petition. It is indeed an impressive number of people, but the noble Baroness was a member of the Blair Government when 750,000 people marched against the Iraq war. We know the result of that. In this country, we have government by the ballot box and by Act of Parliament.
Further Developments in Discussions with the European Union under Article 50 of the Treaty on European Union
Baroness Quin Excerpts(5 years, 1 month ago)
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Baroness Quin (Lab)
My Lords, faced with our likely imminent departure from the European Union, I feel alarmed and concerned about our country’s future. But I should say, too, that I feel great personal sadness as 40 years ago this year, at the beginning of my political life, I was elected to the first directly elected European Parliament. I remember that date as one of hope and idealism—things not always associated with debates on Europe. I also remember with affection and respect some German MEPs who had opposed Hitler and had been in concentration camps. I remember leaders such as Willy Brandt. I also remember our first President of the European Parliament, Simone Veil, one of the most remarkable and inspiring women of the 20th century—courageous, honest, intelligent and compassionate—who herself had, against enormous odds, survived both Auschwitz and Bergen-Belsen.
Furthermore, at the end of my time at the European Parliament, we saw the collapse of the Berlin Wall and the enlargement of the European Union, which Britain had championed. It was an enlargement which, in the days of the Cold War, had seemed an impossible dream. During that time, we also saw and helped the efforts that Britain and others made in creating the European single market, which many people now seem keen to turn their backs on.
So my experience of Europe over the years has been far from the caricature of the EU by some. For example, I do not remember ever being dictated to by faceless bureaucrats, being run by Europe or bullied by Europe. In four years of attending European Council of Ministers meetings in agriculture, justice and home affairs, general affairs and foreign affairs, I do not remember us ever being outvoted. We protected our interests successfully, but we also co-operated with other countries in the interests of all of us.
Furthermore, Britain has shown over the years that flexibility, rather than rigidity, is often the outcome in the EU. We and others did not join the euro; we did not join Schengen. Yet, somehow, we have swallowed the myth that Europe dictates to us and is capable of moving in only one centralist direction. It is interesting to read some of the foreign press, because you get a different impression of Britain, which is often described as being highly successful in pursuing its interests. Of course, we are extra-lucky in that our language is the main means of communication.
Bringing the situation up to date, on 26 February the Government published their statement on the implications for business and trade of a no-deal exit. I am amazed that there has not been more outrage about what that document contains, not least the forecast that no deal would mean the economy in my home area of the north-east of England shrinking by a staggering 10.5%. The figures for other parts of the UK, Scotland, Wales and Northern Ireland, were also dramatic. Even if those figures were only half accurate, they should be enough to take no deal off the table straightaway. I only hope that the House of Commons ensures that this week the idea of leaving the EU without a deal is firmly laid to permanent rest. Surely the EU is not about making regional inequalities, which are already great in our own country, even greater. The figures for the north-east alone would make me oppose Brexit and I hope the Minister, as a fellow north-easterner, agrees with me.
Lord Pearson of Rannoch
I am most grateful to the noble Baroness. Does she not agree that, if the solution were to continue free trade with our friends in the European Union, as we do at the moment, the problems to which she refers will not arise?
Baroness Quin
By far the best way forward would be not to leave the European Union, so that we would continue to benefit from the very good deal we have at present. I am also astonished that industry and the trade unions are being so little heeded at present, and dismissed as being part of some project fear. Yet it is businesses throughout the land that are alarmed at the practical negative economic consequences of Brexit and of making life difficult, in a highly competitive world, with our biggest and nearest market. This simply does not make sense.
The concerns and fears of our universities over research and student exchange programmes, of our health service over access to drugs and life-saving treatments, of our scientists, of those worried about food safety, which was rightly raised in this House earlier today at Question Time—all these serious issues keep being airily waved away as though they were of no consequence. Added to these problems are the political threats to our own union, the United Kingdom, with the dangers of heightening tension in Northern Ireland and the threat of reopening the prospect of Scotland breaking away.
It is true, as the Minister often tells us, that the referendum turnout was impressive, but the result was close and the amount of misinformation—on both sides—was shocking. I recently looked again at the main leave leaflet, which must surely win the prize for the most dishonest leaflet ever issued during a public vote. It struck me that, despite it having been claimed ever since that we voted against being part of the single market, in this main leave leaflet there was not one mention of the single market.
What I would like to see, but have little hope of seeing, is the Prime Minister, Mrs May, firmly putting country before party. She should be honest and say to people that she has tried her very best, as I think she has, to deliver on the referendum, but that her deal or a catastrophic no deal both fall far short of the benefits we currently enjoy as a full EU member and that, in consequence, she would like people to be given the chance to think again in the light of everything that has happened, or failed to happen, in the last two years. I hope, too, that the Commons will this week begin this process of rethinking with a resounding vote against no deal.
Brexit: Withdrawal Agreement and Political Declaration
Baroness Quin Excerpts(5 years, 3 months ago)
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Baroness Quin (Lab)
My Lords, the noble Lord, Lord Dobbs, referred to Project Fear, a theme that has been repeated many times during our debates. I begin by saying that Project Fear is not limited to one side in the debate on this subject. I was due to speak in the debate on 10 December and was one of the casualties unable to do so because of the postponement of business at that time. On that very day, in an article in the Times, David Davis talked about us being,
“trapped indefinitely as a virtual prisoner of the EU, obeying its laws unless it gives permission for us to leave”.
He talked of the EU imposing its will on Gibraltar, imposing unrestricted immigration and having a “whip hand” in the negotiations. That seems to me very much like Project Fear. I urge people on both sides of the debate not to talk about Project Fear and not to rubbish the real concerns expressed by industry, our universities and some of our most important scientists by simply waving them away as Project Fear. That is a disservice to the voters and to democracy.
Our colleagues in the House of Commons have a difficult time ahead. Many of them are challenged by the positions taken by their party leaders and their party Whips, and, importantly, by how their constituencies voted in the referendum two years ago. How much do they simply reflect their constituents’ voting patterns and how much do they try to persuade them of their own views, which may be contrary in whatever direction?
I welcome the vote that took place in the House of Commons yesterday. It is an important step in standing up against a no-deal outcome. Already, however, those MPs who had the courage to vote in the way that they did—particularly the Conservative rebels—have been pilloried in the press. One headline today claimed: “They really do want to steal your Brexit”. In fact, the vote was not against Brexit as such but against a no-deal Brexit, and that ought to be made absolutely clear. As our public representatives, Members of Parliament have the responsibility to say and do what they think is in the best interests of our country. That has to be very much in the forefront of their minds as they approach the votes in the coming days.
I hope that, in the course of those votes, our colleagues in the other place will come out very strongly against no deal. I also hope that they might be willing to consider a delay to the exit date, given the current chaos, which makes the imminence of 29 March very alarming indeed. As others have said, I hope they will consider asking the people to give their view on the outcome of negotiations and whether they want to accept the deal that has been put forward or would prefer to remain in the European Union. It is with a heavy heart I say that. Like many others, I do not like referendums, but I accept the logic that, if the process began with a referendum, it makes sense for it to conclude with a referendum and for people to vote on the situation they are now confronted with.
Interestingly, earlier, the Minister had a go at Nick Clegg for saying that he wanted only one referendum and did not want another one afterwards. My understanding is that John Redwood, David Davis and even Jacob Rees-Mogg have, on occasions in the past, called for two votes. They have not repeated that since the referendum result in 2016, but they are certainly on record before that date calling for two referendums.
I agree strongly with the concluding remarks of the noble and learned Baroness, Lady Butler-Sloss. It is absurd to say that democracy stopped in 2016 at the time of the referendum. Democracy does not have a best-before or use-by date; it is an ongoing process. If circumstances change and if the will of the people changes, that must be expressed, in either a general election or a referendum.
Finally, I hope very much that this House will approve the Motion tabled in the name of my noble friend Lady Smith. It would enable us as a House to express a clear view on this situation, which we are of course entitled to as the debate moves forward to the other place and to the important votes that will take place there.
Brexit: Negotiations
Baroness Quin Excerpts(5 years, 7 months ago)
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Lord Callanan
I thank my noble friend for his questions. Of course the Government share his desire for Brexit to be the success that we know it can be. We remain committed to the Chequers proposals and are negotiating on them. As the Prime Minister has said, the problem with a CETA-style arrangement is that it would mean a significant reduction in the access that we currently enjoy to each other’s markets. Crucially, of course, it would mean customs and regulatory checks at the border, particularly the Northern Ireland border. So we remain committed to our proposals and to making Brexit a success.
Baroness Quin (Lab)
My Lords, will the Minister confirm that we can and do trade globally now; that countries such as Germany and France—which, for example, already export more to China than we do—can do so from within the EU; and that what is being put forward here is a completely false choice between trading with Europe and trading with the rest of the world?
Lord Callanan
We have never said that it is a choice between the two. Our ambition is to do both. Of course we can trade with the rest of the world. The question is whether we can do it more efficiently with trade deals with our partner allies across the world. The EU has been uniquely bad at negotiating trade deals with many of the other big economic blocs across the world—for instance, China, Canada, New Zealand, Australia and so on.
Brexit: UK-EU Relations (EUC Report)
Baroness Quin Excerpts(5 years, 10 months ago)
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Baroness Quin (Lab)
My Lords, as the first Member of your Lordships’ House to speak who is not a member of the European Union Committee or one of its sub-committees, I none the less congratulate the committee and the relevant sub-committees very warmly on this report. It is a concise report that none the less covers a huge amount of ground and many different subjects, and does so in a very straightforward and comprehensible way. Indeed, reading it I wished that similar straightforward material had been put through every door during the referendum campaign over two years ago.
When I look at the speakers’ list and around the Chamber, I see a number of Members with whom I have worked on European issues over a long period of time. Perhaps I could mention those doughty trade unionists—my noble friend Lord Whitty, who has just spoken, and my noble friends Lord Lea of Crondall and Lord Monks. I rather wish that, with their wealth of negotiating experience they were negotiating for us at the moment instead of the current Cabinet, which, unfortunately, seems to be catastrophically divided, and whose squabbling in public has been such a feature of recent days. Indeed, in the report that we have in front of us, there is a very helpful list in different colours—red, green, yellow and white—of the state of negotiations. I imagined when I was reading the report a similar table outlining the positions of the various members of the Cabinet. But I suspect that a tremendous amount of that report would have been covered in bright red.
At the time of the referendum, many prominent people who voted leave were prone to say to people like myself, who voted remain, “What part of the word leave don’t you understand?” At the time, there was a very great deal that we did not understand about the word leave—such as what the result would mean in terms of trade, financial services and the National Health Service, about which there has been much reporting over this past weekend. Then there is security policy, police co-operation, environmental action and so on. What worries me is that, two years on, we still do not know what the Government’s position is on some of the many fundamental issues that confront us. I hope that we will be clearer by the end of this week, with the Chequers away day and the publication of the White Paper—but it worries me that, while a lot of Ministers seem to support the Prime Minister in her undoubted goal of future close co-operation with the European Union in the interests of both Britain and Europe, others seem to want to have almost nothing to do with the EU and contemplate a no-deal scenario with enthusiasm. Some have even gone as far as the Foreign Secretary apparently did when confronted by the economic worries and uncertainties facing both our large and small companies, just to tell business to “Eff off”. Indeed, on the same occasion, apparently he said something to the effect that he imagined that it would be the hard-liners and no-dealers who would win in the forthcoming Cabinet discussions.
So this is a very worrying and alarming situation, but against that situation the committee’s report makes some interesting suggestions about the way in which we can move forward. I agree with the report in its call for a change of tone in the negotiations, with less concentration on red lines and more concentration on those areas where co-operation is undoubtedly needed and in the interests of both sides, and we should try to build on that for the future. I have a feeling that the Prime Minister and her closest supporters would welcome such a change in approach, but I am not sure that is true of the whole Cabinet or of the whole of the Conservative parliamentary party.
I was also struck—the noble Lord, Lord Boswell, referred to this—by the report’s highlighting of the proposal from the European Parliament that some kind of association agreement could come forward from the negotiations, as my noble friend Lord Whitty also mentioned. The relevant section of the committee’s report is paragraph 105. I was interested that this approach was welcomed by people from both sides of the argument, including Daniel Hannan MEP and the excellent North East MEP Jude Kirton-Darling, to whom I would like to pay tribute because she is a very devoted and hard-working MEP. It was interesting that they both welcomed that approach, which also occasioned some warm, or warmish, words from the Secretary of State for Exiting the European Union.
Certainly, I agree with the report that, if we do not manage to get the negotiations on to a more positive footing, the prospects are deeply alarming. Even so, we have to confront very real difficulties. In listening to what has been said so far in this debate about Northern Ireland, and what has been said about Northern Ireland really from the outset of the leave vote, I cannot see how that can be resolved without something that closely resembles the customs union and the single market arrangements that we already have, which are very much in the UK’s interests but also very much in the interests of Northern Ireland and the Republic.
Before I close, I have two questions for the Minister. One is a general question, and one is specific to the north-east of England, to which both the Minister and I belong. The general question relates to paragraph 52 of the report, which quotes Professor Derrick Wyatt, who said that negotiations on free trade agreements,
“used to be mainly about tariffs, but now they are relatively little about tariffs. They are about non-tariff barriers and harmonisation of regulatory standards. They reach deep into the domestic policy-making sphere”.
Does the Minister agree with that statement? Does not that make a nonsense of the claims that we will be free to adopt whatever standards or rules we want after Brexit, either in our relationship with the European Union or in any free trade agreements that we may negotiate with other countries?
My second question, relating to the north-east, arises from an Oral Question that I asked the Minister, about a month ago now, on the impact assessments that the Government had carried out on the likely impact of Brexit on particular regions of the UK. Those showed that the north-east was likely to take by far the biggest hit economically under any of the scenarios but particularly under the scenario of no deal. At the time, the Minister said in response that the assessments were “incomplete”. My question to him is: when will those impact assessments be refined and completed; when will the completed assessments be published; and will they be shared with us here in Parliament and more widely with the public?
I know, as many people tell me, that my region, the north-east, voted by a majority to leave—although it has to be said that the city of Newcastle voted to remain—but none of us wants to see the north-east punished for having voted leave, and yet the Government’s own figures suggest that it will be. Therefore, I want answers to the questions that I have raised. It is such a serious issue that I intend to keep on raising them again and again, as I am sure the Minister will appreciate.
I conclude by warmly congratulating the committee once again. I hope that the Government will listen to the recommendations in the report, that they might, indeed, even be influenced by the report in their deliberations at Chequers and in the publication of the White Paper, and that they will turn their back on the folly of a no-deal outcome to these negotiations, which are so important for the future of our country.
Brexit: North-East of England
Baroness Quin Excerpts(5 years, 11 months ago)
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Baroness Quin
To ask Her Majesty’s Government whether they intend to undertake further work on the impact of Brexit on the economy of the north-east of England.
The Minister of State, Department for Exiting the European Union (Lord Callanan)
My Lords, we are committed to getting the best possible deal for the United Kingdom, a deal that works for all parts of the UK, including the north-east. The Government are undertaking a wide range of analyses, looking at the implications of UK withdrawal from the EU. We continue to engage with businesses and industry bodies from all sectors of the economy and all regions and nations of the UK in order to inform our negotiations.
Baroness Quin (Lab)
My Lords, only a year or so ago the Brexit Secretary was saying that he could get a deal that would deliver exactly the same benefits as those we enjoy under EU membership, yet we now know from the Government’s impact assessments, which they sought to hide from us in February, that the picture is very different. The north-east, in particular, is forecast to be the worst hit, taking an 11% hit to its economy even under the Government’s preferred approach and, if we exit without a deal, incurring an 18% hit. These figures have been backed by the London School of Economics, Birmingham University, the Durham University Business School and others. So the question is very simple and straightforward: does the Minister accept his Government’s assessment of the situation and the consequences of his approach to Brexit on the region of the country that both he and I belong to?
Lord Callanan
Of course, I share with the noble Baroness ambitions for the north-east of England. I thought she was being unduly pessimistic. She might have recognised that unemployment in the north-east is down to 5.2%, the lowest rate for 40 years. The north-east economy is doing extremely well. It is an exporting area: exporting to Europe, yes of course, but also to other parts of the world. We are committed to getting the best possible deal for frictionless trade. The analysis that she referred to was an incomplete analysis. Importantly, it did not analyse the type of deal we are seeking, which is a full and comprehensive free trade agreement, the most ambitious anywhere in the world, with the EU.
Brexit: Trade in Goods (EUC Report)
Baroness Quin Excerpts(6 years, 9 months ago)
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Baroness Quin (Lab)
My Lords, I add my congratulations to the noble Baroness, Lady Verma, and the committee on this report. I join the noble Earl, Lord Sandwich, in having good memories of having served on the committee fairly recently.
As the noble Baroness pointed out, the report was published some time ago. In some ways it is frustrating that it has not been debated before now, but it is very timely, given its subject and given that we are at the beginning of formal negotiations with the EU. This report, together with the other reports on Brexit from this House, shows compellingly how much we benefit from being a member of the European single market and how vital that trading relationship between the UK and the EU is going to continue to be for the future. This is a reality which both remainers and leavers have to come to terms with.
The report highlights the difficulties and challenges that Brexit poses and the possible consequences of Brexit on jobs, living standards and the influence Britain can have in the European and international contexts. This report makes many important points and asks important questions to which, so far, no very clear replies have been forthcoming. The report refers to industries, such as the automotive and aerospace industries, which are part of an integrated European Union supply chain and lists the ways in which UK industries that are part of that supply chain may face increased costs and economic disruption from Brexit.
The report also clearly and correctly states that the manufacturing and primary commodities sectors are important employers in particular regions of the UK. I note that a number of speakers in the debate today are, like me, from the north-east of England, a region which has had a good export record in recent years but whose trade is more heavily dependent on the European market than that of most other parts of the UK. The Newcastle Journal carried out polling during the election campaign. When asked about specific Conservative Government policies only 16.6% of people polled said they backed Conservative plans to leave the EU single market, despite the region having voted overall for Brexit.
There is also concern arising out of the current, very welcome, moves to finalise a free trade agreement between the European Union and Japan, but if the UK leaves the European Union with only WTO rules to fall back on we could end up with a region such as the north-east, which has the tremendously important and successful Nissan car industry, having to face obstacles that cars coming direct from Japan would not have to face. This is causing concern and will continue to do so unless somehow it is resolved in the negotiations that are taking place.
I listened with interest to the comments made by the noble Lord, Lord Howell, about services and the importance of the English language. It is a very important point, but it is verging on the tragic that we are leaving the EU at a time when English is clearly so widely used across the whole European Union. That is an asset that we are turning our back on in the process that we seem to be embarking on at present.
I want to make one point very strongly to the Minister. I know it is a point that was very important to her predecessor, to whom I pay tribute for the open way in which he dealt with Members of this House, which I am sure she will replicate. We need an assurance on how much consultation there will be and on who will be consulted throughout this process. Obviously the devolved Administrations have to be very closely involved from the outset, but all localities and areas of the UK and virtually all industries and local authorities will be affected by Brexit, and I hope that the Government will give us some idea at the end of this debate about the systematic consultation that will take place. People very much need that reassurance at present.
I note that when talking about Britain’s future trade post Brexit, the Government, including the noble Baroness, refer to the fact that the strongest-growing markets at the moment are outside the EU. Mention is made of the Far East in particular. When that argument is made, though, it often creates the false impression that there is a choice between being in the EU and its single market or being outside and trading with markets elsewhere. I am sure the Minister will concede that a country does not need to be outside the EU or the single market to trade with emerging and growing markets across the world, as can be clearly seen from the fact that Germany, from within the EU, exports about four times as much to China as we do. That proves the point, and indeed France too exports more to China than us at present.
As we know, trade takes place in an extremely competitive environment. Even if UK industry faces only modest tariffs or extra customs costs, it may find that that is enough to lose business on a large scale, so we have to be very careful about the arrangements we make in our negotiations with the EU. Also, we are talking not just about the competitiveness of trade. The report makes it very clear that, within the EU, UK industry benefits from collaboration and from funding in lots of joint endeavours with other European countries. The report rightly asks whether that essential co-operation will continue post Brexit.
For all the reasons that I have given, I believe the Government will have to envisage some kind of arrangement for the UK along the lines of the European Economic Area or EFTA. I note with interest the differing views from the noble Lord, Lord Livingston, on the one hand and my noble friend Lord Hain on the other. I must say I incline to my noble friend’s view that we need to maintain those key benefits of being in the single market and the customs union.
I believe the Government have no mandate for breaking the links with the single market and the customs union. The election result did not endorse their approach, nor did it, as the Prime Minister wanted, strengthen the Government’s hand with regard to Parliament, including your Lordships’ House. In the election, Labour, the Liberal Democrats, the SNP, Plaid Cymru and other parties all stressed the importance of the single market to the UK.
The referendum result itself did not include a specific commitment to leaving the single market; again, I agree with my noble friend Lord Hain on that. In any case, if the country is to come together after a narrow victory in the referendum for leave—52% compared to 48%—it has to be recognised that that close margin means that those who did not want to leave the EU should have some of their concerns addressed, in terms of achieving a continuing close relationship with our EU partners. Indeed, the referendum result in different parts of the UK—remain won handsomely in Scotland and Northern Ireland, not to mention in Gibraltar, where there was an overwhelming remain result—means that to keep our union together, compromise, not confrontation, over maintaining our links with Europe should be the order of the day. I hope the Government will take the report to heart, along with all the other excellent reports that have been provided by this House.