Article 50
Debate between David Davis and Lord Field of Birkenhead(8 years ago)
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Frank Field (Birkenhead) (Lab)
Is not the pressure on us, not on the judges? At elections the people give us sovereignty to exercise on their behalf, and at referendums we return that sovereignty to them. Woe betide us if we do not abide by that. Will the right hon. Gentleman hazard a guess as to how many remainers’ turkeys will vote for Christmas in next May’s election?
Parliamentary Scrutiny of Leaving the EU
Debate between David Davis and Lord Field of Birkenhead(8 years, 1 month ago)
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Frank Field (Birkenhead) (Lab)
As a long-standing Brexiteer not wishing to make points, may I take the Secretary of State back to the reasons the Government want to trigger article 50 so early? What is behind that, and is there any possibility that that statement might take on the colour of the Home Secretary’s statement about foreign workers?
Mr Davis
No, I do not think so. The right hon. Gentleman asks a serious question. Part of the reasoning is that the Prime Minister feels, quite reasonably, that the people want the process to be under way. Indeed, if one believes opinion polls, that is what is going on. However, we do not want to do it immediately, unlike the leader of the Labour party, who said on 24 June that we should trigger it immediately—of course, now he has changed his mind. What we are doing is putting together our negotiating strategy, which requires an enormous amount of work—I will come back to that point—and some of it will become public as we go along.
I am determined, as would be expected, that Parliament will be fully and properly engaged in the discussion on how we make a success of Brexit. I therefore broadly welcome the motion, but with important caveats, and that is why the Government’s amendment is necessary. The first key point is that we must ensure that the decision that the people made on 23 June is fully respected. We also need to be explicit that, while we welcome parliamentary scrutiny, it must not be used as a vehicle to undermine the Government’s negotiating position or thwart the process of exit—both are important.
The negotiation will be complex and difficult, and we should do nothing to jeopardise it. As I said in my statement on Monday—the hon. and learned Member for Holborn and St Pancras (Keir Starmer) quoted me several times—the sovereignty of Parliament and its restoration is at the very heart of why the UK is withdrawing from the European Union. For decades, the primacy of the UK Parliament has been superseded by decisions made within EU institutions, but now, following the clear instruction of the voters in the referendum on 23 June, we can finally change that and put Parliament unequivocally in charge.
That is exactly why we announced plans for a great repeal Bill last week; it is a clear commitment to end the primacy of EU law. It will return sovereignty to the institutions of the United Kingdom, because that is what the referendum result was all about: taking control. Naturally, Parliament will oversee the passage of the Bill, which will allow us to ensure that our statute book is fit for purpose on the day we leave the EU. It will then be for Parliament alone to determine what changes to the law best suit the national interest.
Exiting the European Union
Debate between David Davis and Lord Field of Birkenhead(8 years, 2 months ago)
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Frank Field (Birkenhead) (Lab)
May I congratulate the Secretary of State on his return to the Front Bench and, on behalf of all those Labour constituencies that voted to leave, thank him for his statement and for making the control of our borders the cornerstone of any renegotiation? May I take him back to the question from the right hon. Member for Wokingham (John Redwood)? Given Europe’s huge trade surplus with us, how does the Secretary of State think that power position will play out when we are talking about membership of or access to the single market?
Mr Davis
It is early days to forecast the negotiation, but the right hon. Gentleman is right—there is a large trade surplus. The one that was cited time and again during the referendum campaign, which I do not want to revisit, was the surplus in cars from Germany alone, for example. With countries of the European Union facing economic difficulties, I do not think they will want to create problems for themselves by creating bilateral arrangements that hurt them, so the way I think it will play out is that over the period concerned—probably a couple of years or so—people will start to focus on what their own national interest is. My experience of the European Union is that the Commission makes a great deal of public statements, but at the end of the day the national interest of individual countries decides the outcome.
Tax Credits
Debate between David Davis and Lord Field of Birkenhead(9 years ago)
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Frank Field
Well, indeed. Our plea is to have made available the range of analysis that has traditionally accompanied any Budget statement that any Member of this House, however long he or she has served, has come to expect.
The Work and Pensions Committee has emphasised a fourth factor, which is that there may be some wage push as a result of the introduction of the national living wage. Will that be taken into account in the Government’s analysis? I am slightly sceptical about the extent of that wage push—again, it is one of the problems of having been a Member of this House for some time. When I was initiating the Low Pay Unit’s campaign for a statutory minimum wage, the official trade union position was to oppose it on the ground that there would be a mega-bill as we re-established differentials. However, when we look at the impact of the statutory minimum wage, we see a great deal of bunching of wages, and not the big increases that some people feared and expected.
Mr Davis
I can call him my right hon. Friend, because we have known each other for 40 years. On the data the Government provide, because this is an incredibly complicated area, there are elements of data that are important but that would not normally be provided. One of them is the marginal withdrawal rate of any scheme that the Government put into effect. Government spokesmen have previously said that people can work their way out of poverty, but it looks as though some of the effects of the national living wage will result in a 93% withdrawal rate, which will mean that people cannot work their way out of poverty. Will he add that to his list of data for the Government to provide?
Frank Field
I was waiting for those on the Treasury Bench to point out the difficulties involved with all such moves. It is important to say that we are not in the hole; the Government are in the hole. We are trying to make suggestions about how to get out of the hole. It is no use the Government turning round to us and saying, “Did you not realise that this would have this effect and that effect?” I know we will not get that from the Exchequer Secretary, but a suitable sense of humility from the Government would be welcome.
Mr David Davis
Does that point not reinforce the requirement for the changes to be made not with another yes/no measure such as a statutory instrument, but through primary legislation?
Frank Field
There would of course be a tendency for any Chancellor to say, “I’m going to make the Lords agree to my new SI.” If it was an SI that this House cheered on its way down to the other place, that might be wise. If it is an SI on which there was still deep disagreement, particularly among Conservative Members, I think it would be very unwise not to bring forward the proposal in primary legislation.
Mr Davis
Exactly—and before anyone suggests that a person who owns his or her house is better off, let me say that many people in that category have fallen into it and got out of it later. The idea that someone earning less than £20,000 a year, and with two children to support, should lose £2,000 is simply untenable.
The right hon. Member for Birkenhead suggested that there were four possible strategies, but in my view there are three. The first possibility is that we shift the burden elsewhere. The right hon. Gentleman proposed that we should shift it up the income scale, and Lord Lawson said the same during the debate in the House of Lords. I shall not elaborate on that possibility, because I think that there are better ways.
The second strategy is to find savings elsewhere. Here I strongly disagreed with the right hon. Member for Birkenhead, who almost encouraged the Chancellor to go hunting for the pensioner pound. It will not be today’s pensioner pound; it will be tomorrow’s. I think it would be very unwise to remove the tax benefits of investing in pensions and undermine what we have left of our private pension scheme. I am protected, because virtually all my pension is paid for now; it is the next generation that will have to worry.
Frank Field
I thought that my argument would appeal more to Conservative Members, because it was a free-market argument. When Governments have guaranteed a minimum, it is not our business to put our sticky fingers into other people’s lives and tell them how they should save or not save. Once there is a minimum pension agreement for everyone, how and when people save should not be a question for the House.
Mr Davis
I shall not go too far down that road. Let me simply say that middle-class pensioners are now paying one of the highest effective income tax rates in the country. People who have saved a lot for their pensions and gone above the lifetime allowance must pay 55%. I think we ought to be a bit careful, because if we let the Treasury get at that deferred income, it will take as much as it can.
The third option, which I think is probably the winner—although not by itself; it would have to be modified—is to stage the cuts. I believe that the right hon. Member for Birkenhead lit upon this strategy as well. The cuts would be staged to match movements in the minimum wage and the living wage so that people would not lose.
The Government’s figures for 2020 seem broadly to balance, although they are not perfect. We shall have to work through the mitigation carefully, and that is where the impact statement comes in. Those figures do two things. They protect the working poor, but they also achieve the deficit reduction, which is vital. If we hit the deficit reduction target by 2020—this point was made by my hon. Friend the Member for Stevenage (Stephen McPartland)—each saving of £4 billion a year is not critical. It represents less than 1% of the economy. The really critical issue is how the financial markets see the position. The financial markets do not care about the trajectory from here to 2020; the fact that we get there is good enough. We do not need to worry about the £4 billion a year in between, but we do need to worry about the final outcome. My argument, therefore, is that we should cut the tax credits in step with the minimum wage and the living wage.
The criterion is what is important here. The criterion that the Government must meet is that there should be no losses for the least well off in any of the three intervening years. The poorest, the working poor and their dependants cannot afford to lose one pound. I was never a great fan of the minimum wage, but I was persuaded that it was worthwhile.