Brexit: Negotiations

Lord Newby Excerpts

Thursday 15th November 2018 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I am grateful to the noble Baroness the Leader of the House for repeating the Statement today, although I have to say that I did not detect any great enthusiasm there. I am grateful for her statement at the beginning about timing. Last night, the usual channels agreed the normal arrangements for a Statement, with Back-Bench contributions for 20 minutes today and a more substantive debate of three or four hours on Tuesday, when noble Lords will have had the opportunity to read and consider the detail of the deal and the documents. However, with such significant developments this morning—four resignations so far from the Government, including the Brexit Secretary—it is clear that there is a crisis at the very heart of government. I am disappointed that the Government would not accede to our request for extra Back-Bench time today—I think that was wrong. However, we welcome a longer four-hour debate next week, when we can consider the deal in greater detail. Given the importance of the issue, and because that debate is instead of time today, will the noble Baroness the Leader confirm that she will lead the response next Tuesday?

As the Government descend further into chaos, one thing has remained consistent: the Prime Minister’s approach of living for the moment—getting through today, and worrying about tomorrow later. That has not served her or the country well. But we should not forget that this situation is not entirely of this Prime Minister’s making. The entire Brexit process has been about the internal politics of the Conservative Party. It cost David Cameron and George Osborne their jobs—although the latter has done fairly well for himself since—and it could be about to cost the Prime Minister hers as well.

Last night, outside Downing Street, the Prime Minister claimed that the withdrawal agreement and the outline political declaration had been agreed by “a collective decision of the Cabinet”, and yet this morning, so far, two Cabinet Members have resigned—I do not know whether there is an update on the figure yet. She has failed to unite her Cabinet again. She has failed to unite her party, with MPs reportedly rushing to submit letters to the chairman of the 1922 Committee. Watching the Statement in the other place, we have seen that she is failing to unite Parliament, where there is seemingly no majority for any course of action, other than opposing no deal.

So let us be clear about what is most important: the Prime Minister is failing the people of our country. Families, communities, businesses and workers will not be able to understand why the Conservative Party is behaving in this way, putting the economic well-being of the country behind petty infighting and personal ambition. As Frances O’Grady, the general secretary of the TUC, said this morning, we need Parliament and the country to come together and find a real alternative to this agreement—a deal that the Prime Minister’s former adviser has labelled a “capitulation”.

Those who have welcomed the deal have either said it is “the best we can get”—faint praise indeed—or, as the CBI made clear, support the very measures that the Brexiteers have opposed: a long-term transition and frictionless trade. The draft agreement and political declaration published last night are exactly what we expected: vague promises of a future trade deal, but no clear road map as to how, or when, this will be achieved.

So, what has our sovereign Parliament been offered? The documents contain no commitment to a permanent customs union, despite the support of business and the trade unions; no detail on our future relationship with the single market, despite the EU being our biggest single trade partner; and no clarity regarding the terms on which the UK will continue to participate in EU agencies and internal security systems.

Your Lordships’ House worked hard to secure a meaningful vote for the other place, but the Government are telling parliamentarians that they must decide between this bad deal or no deal at all. It is a Hobson’s choice—that is, no choice. As many predicted, last night’s Cabinet marathon meeting has become a disappointing sequel to July’s Chequers summit. An agreement that has been toiled over for many months has yet again unravelled overnight.

On social media, I am known as @Lady Basildon. It is not just about my former constituency and my home, it is after a character in an Oscar Wilde play. As I watched the news of resignations unfold, a Wildean phrase came to mind: to lose one Brexit Secretary may be regarded as a misfortune, to lose two looks like carelessness. We now understand why the Prime Minister was not prepared to allow a vote in Cabinet. She could not because she did not have the support of her colleagues. She must have known how fragile the position was when she made her statement last night.

I have little time for David Davis and Boris Johnson. They failed in Cabinet to convince their colleagues of their so-called vision for Brexit or to come up with any viable alternative. They now stand back and attack the Prime Minister from the sidelines. Dominic Raab has criticised the deal but, again, offers no credible alternative. While many in the Cabinet, including, apparently, the noble Baroness the Leader of the House, voiced their concerns about the draft agreement last night, no alternative was offered at the meeting. It remains unclear exactly what Brexiteers want, other than to lead this great country off a cliff edge in a few short months’ time.

The situation will undoubtedly evolve in the coming hours and days. Noble Lords will use the expertise of this House to track developments. We will have our debate on Tuesday, but today, it would be helpful if your Lordships’ House were left in no doubt about the noble Baroness’s position. Does the Leader of the House give the Prime Minister and the draft withdrawal agreement her full support?

[Lord Newby (LD)]

My Lords, I commiserate with the noble Baroness who had to repeat this Statement, because we know that she does not agree with it. It appears that she was one of 10 Cabinet Ministers who expressed severe reservations about the agreement. Will she explain her reservations in her reply? I think that the House would like to know.

There is a lot of real and mock surprise and indignation about the contents of the withdrawal agreement. Yet how could anybody reasonably expect it to be materially different from what has emerged? Once you accept a frictionless border in Northern Ireland, provisions such as those now in the agreement become inevitable. That was recognised by the Government in the agreement they reached with the EU last December and, incidentally, which they have spent the last 10 months denying. They have now reaffirmed that December commitment.

If the outcome on the transitional period and the backstop are predictable, I am genuinely shocked at the outline of the political declaration. In some ways, this is a much more important document because it covers our long-term relationship with the EU, not just the position during the transitional phase. I had expected the document to be layered with fudge, but I could not imagine that it would be so vague and unspecific—a mere seven pages.

It is vastly less detailed than the Chequers agreement, which listed some 68 programmes or bodies by name of which the UK wished to remain a member post Brexit. This document mentions hardly any. I believe that we are to get a somewhat extended version next week but, based on the seven pages we have before us today, it is unlikely to answer any of the difficult issues which remain. Fisheries and the European arrest warrant are but two of the myriad tricky issues that are clearly nowhere near being resolved. I cannot believe that the country would accept this pig-in-a-poke Brexit.

However, it is clear that we are not going to get to the point where these things matter, because the agreement document bears all the hallmarks of Monty Python’s dead parrot. It is bereft of life. In her statement last night, and again this morning, the Prime Minister admitted for the first time that there are three possible outcomes to the Brexit process. We can accept her deal, we can crash out without a deal, or we can remain. The noble Baroness has said many times that remain was not an option. The noble Lord, Lord Callanan, has probably said it hundreds of times.

[Lord Foulkes of Cumnock (Lab)]

Thousands.

[Lord Newby]

Or thousands, I stand corrected. That was never true. At least the Prime Minister now accepts reality. I am not by nature an avid reader of the Daily Express, but I caught its front page today and I agree with its headline: “It’s a deal—or no Brexit”. I agree. And given that it is now abundantly clear that the current deal has zero chance of passing through the Commons, and we know of course that the Commons would never vote for a ruinous no-deal outcome, remain is now the only viable option. This will of course require a referendum to get the endorsement of the people.

The Government are spending hundreds of millions of pounds preparing for a no-deal outcome, which they know will not happen. Will they now spend the extremely modest amount needed to prepare for a referendum, to be held next spring, which will put the Government’s deal to the people with an option to reject it and remain in the EU? Given that we have been told from the Dispatch Box umpteen times that a prudent Government prepare for all possible contingencies, and that they now accept that this is a possibility, would a failure to do so now not be a dereliction of duty on the Government’s part?

[Baroness Evans of Bowes Park]

First, I am very happy to tell the House that I fully support the Prime Minister and I back this deal. I would not be standing here if I did not—and I am very grateful that everyone seems so happy to see me.

The noble Lord and the noble Baroness asked about the outline political declaration. Negotiations will now continue to finalise the full political declaration, focusing on adding detail, defining further what balance of rights and obligations should apply in the context of trading goods and identifying which additional operational capabilities should be prioritised for consideration in the context of internal security. We are determined to conclude a full political declaration by the end of November, bringing the Article 50 negotiations to a close. Once agreed, we will bring that deal to Parliament. We have agreed, as the outline document shows, the scope of a future relationship, signalling the ambition on both sides. We have agreed to the creation of a free trade area for goods, combining deep regulatory and customs co-operation with zero tariffs and no fees, charges or quantitative restrictions across all goods sectors—the first such agreement between an advanced economy and the EU. Common ground has been reached on our intention to have a close relationship on services and investment, including financial services; on the desire for wide-ranging sectoral co-operation, including on transport and energy; and on fisheries, recognising that the UK will be an independent coastal state.

The noble Lord asked about the European arrest warrant. He is correct that it is still under negotiation, but the EU and UK have agreed to swift and effective arrangements enabling the UK and member states to extradite suspected and convicted persons efficiently and expeditiously. Both the UK and EU recognise the continued importance of close and effective operational co-operation and recognise the risks of reverting to the Council of Europe conventions. I am afraid to say to the noble Lord that we will not be holding a second referendum.