Brexit: Withdrawal Agreement and Political Declaration

Lord Liddle Excerpts

Monday 14th January 2019 Lords Chamber

[Lord Liddle (Lab)]

My Lords, we are living through a political crisis without equal in our post-war history. Labour’s Front Bench in the Commons has to play a decisive role in the outcome. Without its support it will be difficult for any option to carry. Yet its present stance comes across as a supine unwillingness to declare its hand. This will be the focus of my remarks.

Jeremy Corbyn wants a general election but for weeks we have been waiting for the Motion of no confidence. For him, such an election would be as much about issues of class and inequality as it would be about Brexit. He aims to unite working people on a mandate to negotiate a “jobs-first” withdrawal. If his effort to force an election fails, he would still prefer a negotiated Brexit to a people’s vote. A Labour Government could of course abandon the red lines that have so unnecessarily and counterproductively constrained the Prime Minister. Listening to Sir Keir Starmer, with his unequivocal commitment to a customs union and full participation in the single market, might suggest that such a decisive shift would be entirely realistic. However, Mr Corbyn and those closest to him in his office favour a more qualified policy. In their customs union, Britain and the EU would have an equal say on future trade deals. For them, the single market avoids border barriers, except that they want to break free of the competition and the state aid rules which are fundamental to the whole concept of a level playing field.

There would be no willingness in Brussels to entertain what for the EU would be an extraordinary set of propositions: to give a non-member state a veto over the Union’s autonomous trade policy and to license Britain to act as a competitor rogue state. In practice there will be three and a half alternatives to no deal after tomorrow’s Commons vote. The half-choice is full membership of the customs union; it is only a half-choice, for without alignment of single market regulations there will need to be a hard border in Northern lreland. The WTO rules will require that. The customs union therefore requires a Northern Ireland backstop of some kind to be permanent. Norway, or Common Market 2.0 as Nick Boles now calls it, is highly problematic. It requires a level of trust on the EU’s part that Britain has squandered in the last two years. The EU fears that Britain would not behave responsibly like Norway but, as a much larger competitor outside the EU, would constantly push against the limits and loopholes of the EEA rule book. Domestically, for how long could a great nation such as ours live happily as a rule-taker?

The third possibility is that, without decisive progress towards a comprehensive alternative, Mrs May’s deal staggers on, on life support, in the hope that someday, sufficient Labour Back-Benchers from strongly leave constituencies, in fear and fright of no deal, will eventually back her deal as the only option available. This would be a disaster for my party. Whole swathes of progressive opinion would never forgive us for the betrayal of their European commitment. To avoid this, Labour must move decisively to back a people’s vote. Some argue that Labour cannot be seen to betray Labour supporters who voted leave. Frankly, it is the leadership of the leave campaign that has betrayed those voters, with its extravagant promises and lies. Support for remain has strengthened significantly among 2017 Labour voters since the referendum.

In my view—I am sorry to say this—the obstacle to a shift in Labour policy is a different one. The leadership group around Mr Corbyn has an outdated view of the EU as an instrument of global capitalism and United States imperialism. Their political economy is stuck in a 1970s ambition for “socialism in one country”. Unfortunately, I was alive then. It did not work then and it certainly will not work half a century later.

The EU has many faults and needs much reform. But uniquely in the world, and however imperfectly, it offers a means of structured co-operation between countries that can be used to promote progressive values: to promote human rights and democracy; to work for peace; to advance economic justice for poorer nations; to tackle climate change; to not just manage migration but address the injustices that drive its fundamental causes; to ensure that big corporations pay their fair share of taxes; to bring the digital monopolists to heel; and to prevent a race to the bottom in workers’ rights and consumer and environmental standards, which is crucial.

There is a way forward. Labour must back a people’s vote now and must listen to the overwhelming view of Labour members and supporters. We must gain the courage to come out for remain.