Next Steps in Leaving the European Union

Lord Lilley Excerpts

Monday 10th October 2016 Commons Chamber

[Mr Davis]

I will answer that shout from the Front Bench. The answer is as soon as I can get that negotiation concluded with the European Union—full stop. Individuals should not worry people unnecessarily or get them concerned. Bear in mind, five out of six migrants who are here either already have indefinite leave to remain or will have it by the time we depart the Union. It is an important question that I take seriously, and I am determined that we get an outcome that is successful for everyone.

[Mr Peter Lilley (Hitchin and Harpenden) (Con)]

Did my right hon. Friend note the comments by President Hollande that the United Kingdom should be made to pay a price for leaving the EU, presumably by having tariffs imposed on our trade with it? Did he respond to the President that clearly he feels that, in the absence of such punishment, leaving the EU would leave the UK manifestly better off? Such punishment would fall primarily on French exporters, as they export far more to us, whereas our exporters are benefiting from a 14% improvement in their competitiveness—three times the likely tariffs, on average, that may be imposed on them.

[Mr Davis]

My right hon. Friend—and erstwhile Trade Secretary, if I remember correctly—is exactly right. The damage done by a supposed punishment strategy would be primarily to the industries and farmers on the continent who export to this country. I am afraid that Mr Hollande, Mrs Merkel and others will experience pressure from their own constituents that says, “This is not a good strategy to pursue.” In this country, we believe in free trade because it is beneficial to both sides. I do not see the logic in exercising a punishment strategy against one of their strongest and most loyal allies.