European Union (Withdrawal) Act

Debate between Lord Redwood and Michael Fallon

Wednesday 5th December 2018 Commons Chamber

[Sir Michael Fallon (Sevenoaks) (Con)]

We would not be having this debate today if Parliament had not asserted, earlier this year, its right to express its views clearly on the deal that has been brought back to us. It does not, however, follow from that that Parliament should have to take on the responsibility of designing or redesigning the deal. I do not believe Parliament should overreach itself in that respect. What Parliament can do is set the boundaries for a deal and express its view on the deal, and I hope we will be able to do that on Tuesday.

Equally, because of the amendment that I supported yesterday, tabled by my right hon. and learned Friend the Member for Beaconsfield (Mr Grieve), it should be very clear what is not acceptable. In my view, no deal is not acceptable. It is my judgment that no deal would be highly irresponsible. Having no agreement on trade and security would be damaging to our business interests, and we must have a deal properly in place before we leave. So I do not support no deal. I also have to say to some of my hon. Friends that I am not convinced by the arguments for having another referendum. Of course referendums are divisive, but that is not the problem. The problem is that I do not see how a referendum could be decisive and could secure a sufficient consensus to put this issue to bed for a decent period of time.

If we are to respect the referendum that we did have, and if, as my neighbour, my hon. Friend the Member for East Surrey (Mr Gyimah), said in an excellent and powerful speech, we are to surrender our vote, our voice and our veto straightaway and immediately pay over this huge sum of £39 billion, we need a deal that is worth all the risks of not knowing how it is going to work out. We do not have that at the moment. Instead, we are confronted with a completely vacuous political declaration. In my view, we need something much better and much firmer if we are to take that decisive step at the end of March.

[John Redwood]

rose—

[Sir Michael Fallon]

I hope my right hon. Friend will forgive me if I continue.

I would like to see the deal improved in four crucial and already well-known respects. First, on the backstop, a sovereign country cannot be placed in a position in which we are denied, in the end, a unilateral right of exit. That is all the more important because the protocol acknowledges that the backstop might remain under “alternative arrangements”, even in part. Others have already made the case as to why a backstop should remain, and I find that argument rather odd. We have been told this week that the European Union does not like the backstop any more than we do and that Ministers in other countries do not actually want the backstop to remain. If that is the case, why should they not agree that it is in everybody’s interests—theirs and ours—to set a date by which the backstop at least falls away? I am not encouraged by all this lawyerly talk of “good faith”, “best endeavours” and endless arbitration. If we are going to have a backstop, which I do not like, let us have a date and set the clock ticking.

Secondly, the absence in the political declaration of any commitment whatsoever to the frictionless trade that the Prime Minister promised us is not acceptable, unless we have some clearer idea of the extent to which some freedom of movement will be required and of the extent to which there will be areas beyond state aid and procurement where we will have to respect European Union competition policy. The Attorney General told us on Monday that this is one of the “outer boundaries” that will have to be considered, but he did not attempt to set those boundaries. We need to be much clearer about exactly what the European Union is likely to accept, in respect of both the skills cap that we are contemplating and the competition policy that we will have to accept.

Thirdly, on the extent to which we will be allowed an independent trade policy, the political declaration is at least clear on this point: our future economic relationship must

“be consistent with the Union’s principles, in particular with respect to the integrity of the Single Market and the Customs Union”.

That does not leave us any clarity on whether we will be allowed to reduce much or even part of our common external tariff. Indeed, the Attorney General told us that we cannot have an independent trade policy and belong to a conventional customs union. Again, that commits us to complying with one boundary set by the European Union without any clear understanding of where the other might be set.

Finally, there is Northern Ireland. If a different regulatory framework is to continue—there are currently some elements of difference—it is clear to me that, inside our own single market, that can be done only with the continuing consent of the Province itself, or in other words of the Executive and the Assembly. The agreement should have been explicit in that regard. There may well be further checks that would enhance the protection of the whole island, but they can be put in place only with the agreement of all communities in Northern Ireland.

Without those improvements, this so-called deal is a gamble: we put all our cards on the table and all our money, and we wait for another two years for the European Union to set the rules of the game. That is a risk too far.

National Shipbuilding Strategy

Debate between Lord Redwood and Michael Fallon

Wednesday 6th September 2017 Commons Chamber

[Sir Michael Fallon]

First, let me make it very clear that it ill behoves members of the Scottish National party to pose as friends of the Clyde when they would decommission our nuclear submarines, which would halt work on the Clyde on the frigates that would protect those submarines.

Secondly, the hon. Gentleman is wrong about the frigate factory. There is a frigate factory on the Clyde, namely the Govan and Scotstoun yards, to which I gave 20 years of work back in July when I cut steel on HMS Glasgow, the first of the heavy anti-submarine warfare frigates. I gave 20 years’ worth of work to the Clyde, and, as a result of today’s announcement, it will be able to bid for the lighter frigate as well. He will clearly never be satisfied. There are 20 years of work and the contract for the first three frigates is worth £3.7 billion, but he is still not satisfied.

As for manning, I have already explained to the House that the Royal Navy, like the other two services, is just over 96%, or 97%, manned. We are spending a lot of money on recruiting to fill the remaining gaps, and to ensure that we can continue to offer a rewarding, highly valued career in the Navy.

[John Redwood (Wokingham) (Con)]

I welcome the statement. Will the Secretary of State confirm that the same model could be applied to other areas of defence procurement to ensure more British content and more export capability? Will he also confirm that when we are out of the European Union we may be able to spread the model beyond defence, because we shall be able to make up our own procurement rules across the board?

[Sir Michael Fallon]

We will indeed be able to set our own procurement rules, free of some of the constraints that have resulted from our membership of the European Union. It is true that we need to improve the way we have procured our naval vessels in the past, and to start sending new-build ships out across the world again. Many other navies in the world are looking for lighter frigates, offshore patrol vessels and new vessels of all kinds as the global picture darkens and they need to do more to protect their maritime interests. There is a huge opportunity, and we shall see now whether the English yards, alongside the yards on the Clyde, are ready to rise to the challenge.