European Union (Future Relationship) Bill

Lord Newby Excerpts

3rd reading & 2nd reading & Committee negatived & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords & 3rd reading (Hansard) & 3rd reading (Hansard): House of Lords & Committee negatived (Hansard) & Committee negatived (Hansard): House of Lords
Wednesday 30th December 2020 Lords Chamber

[Lord Newby (LD)]

My Lords, some four and a half years after the referendum result, we can now see in the treaty that we are discussing today the outline shape of the UK’s future relationship with the EU, yet we have had no real opportunity to read it and no chance to consider its implications. It is the single most important treaty that this Parliament has had to consider since we joined the European Community in 1973, yet today we are invited simply to rubber-stamp it in a matter of hours.

A treaty which the Prime Minister claims restores our sovereignty begins its life by mocking parliamentary sovereignty. The Prime Minister of course disdains the convention that we call a constitution. If he can break any of those conventions to make his own life easier, he will, as he tried to do with Prorogation last year and as he did with his list of Peers last week. He has done so again in this case.

Today’s debate is a case not of Parliament weighing the arguments and forming a view but of it waving through hundreds of pages of law unread, unanalysed and unquestioned. There is no scope today to discuss the details of the Bill or, because of tomorrow’s deadline, to contemplate amending it, despite the extraordinarily broad Henry VIII powers which it contains and on which your Lordships’ House may wish to express a view.

The country will have many months and years to find out what the treaty means in practice, but that does not mean that we cannot assess it against the key purposes of any Government in any country at any time. Does it make us more secure? Does it make us more prosperous? Does it help to unite the country? And does it strengthen our position in the world? In each case, the answer is no.

On security, the EU has, over many years, built up a series of measures which has made it easier to identify criminals and terrorists and bring them to justice. Its crown jewels are the European arrest warrant and the real-time European crime-fighting databases, such as Schengen II. We are now outside all of those. The warm words of the treaty on security co-operation seek to make the best of a bad job, but it is a major step backwards, leaving us with literally zero prospect of establishing as effective a system for fighting crime and terrorism as the one we are leaving.

On the economy, the treaty provides for tariff and quota-free trade in goods, but literally hundreds of new impediments on trade in services. The Canadian agreement, to which the Prime Minister refers glowingly, has, by the Government’s own admission, more than 400 restraints on free trade in services, and we see that reflected in this treaty—whether it is ending mutual recognition of most professional qualifications or the end of passporting for financial services. Yet the UK has a big balance of trade deficit in goods and a big balance of trade surplus in services, so we are penalising the sector where we are strongest and favouring the EU in the sector where we are weakest. This is a massive win for the EU at our expense.

Even in trade in goods, exporters are faced with a massive increase in bureaucracy and red tape: some 200 million new customs forms to be completed each year and an extra 50,000 customs officials required to process them. Those who favoured Brexit made much of Brussels bureaucracy—just wait until they see how many new layers of form-filling they have imposed on British businesses.

We are told that any trade losses with the EU will be more than matched by our new global trading partnerships, but who are these to be with? Not the US, unless we capitulate on food standards. Not China, where our exports are actually falling, unless we stop criticising its human rights record—ask the Australians. Not India, unless we allow many more Indian immigrants —ask Priti Patel of the likelihood of that. And ask any small business about the relative costs of exporting to the EU and to the Far East and you will find that there is only one answer—and it does not support the Government’s argument.

On maintaining the unity of the United Kingdom—the third test for any Government—it is to me almost incredible that the Conservative and Unionist Party has erected a border down the Irish Sea and allowed the EU to dictate what goods we can trade across it. Seed potatoes have become the only good which will not encounter friction in moving west across the Irish Sea, and this is because Brussels has banned internal UK trade in them entirely.

As it becomes increasingly apparent that the economy of Northern Ireland has closer links with that of the Irish Republic than that of Great Britain, it seems to me that people in the Province will, inevitably, increasingly prioritise their relationship with the south over that across the Irish Sea. The Irish Government’s decision to fund Erasmus students from Northern Ireland as our Government shamefully exit the scheme shows just how aware the Republic is of this new reality. No wonder some in the Province who so enthusiastically supported Brexit now realise just what a price they are having to pay.

On our global influence—the final test of government —the world has looked askance as the Brexit saga has played out. People have not been patting us on the back and congratulating us on our pluck and resolve; they have all asked, “Why on earth are you shooting yourselves in the foot?” Incoming President Biden has certainly made it clear where his priorities lie, and it is not with the UK. As of today, the UK has no foreign policy and no capacity to influence international events, or even standards-setting, as part of a single EU response. With a weakened economy, a decimated aid budget and a new reputation for untrustworthiness, our soft and hard power will be less than at any point since before the Napoleonic wars.

Your Lordships’ House is being asked today to vote for a treaty which makes us less secure, less prosperous, less united and less influential. It has passed the Commons with acclaim and will pass your Lordships’ House with ease. On these Benches, however, we simply cannot join in what is, in effect, for many people, a collective sigh of relief that we are at least not leaving with no deal at all. Clearly, no deal would have been completely disastrous, but by choosing a deal which prioritises a two-dimensional view of sovereignty over what is best for our prosperity, the Government have made a deliberate choice for which responsibility rests with them alone. This is a Conservative Party treaty, the culmination of a process which began when a Conservative Prime Minister decided to hold a referendum to manage splits in his own party. The Conservatives, with their majority in the Commons, would, even without Labour support, have secured a majority for the treaty and the Bill, and they will be judged on the consequences.

As people in your Lordships’ House know, we on these Benches have opposed Brexit, as we oppose this Bill, because we believe that, on all counts, it is bad for our country. We did not win the argument with the electorate in 2016, but in a democracy, you do not change your fundamental views because at a particular time more people hold different views. You continue to argue for them, in the hope that you might eventually prevail. We continue to believe that, in every respect, Britain is better off at the centre of Europe. This treaty removes us from that position. We will therefore be voting against the Motion that this Bill do now pass, and invite all those across the House who share our vision of Britain’s place at the centre of Europe to join us.

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Moved by

[Lord Newby]

Leave out from “that” to the end and insert “this House declines to allow the Bill to pass because it fails to meet the undertakings given to the people of the United Kingdom by the Prime Minister and other members of Her Majesty’s Government as it (1) implements the first free trade deal in history to put up new barriers to trade that will harm businesses and impose additional costs on consumers in the United Kingdom, (2) ends the mutual recognition of professional qualifications, (3) deprives the United Kingdom’s financial services sector of passporting rights, (4) deprives police in the United Kingdom of direct, real-time access to European Union law enforcement databases, (5) ends the United Kingdom’s participation in the Erasmus+ student exchange programme, (6) does not provide a grace period for businesses to prepare for and adapt to the new rules, and (7) will result in lower economic growth and less revenue for key public services; and because Her Majesty’s Government has failed to provide sufficient opportunity for Parliament or the public to scrutinise it properly.”

[Lord Newby (LD)]

My Lords, as I indicated at Second Reading and in the light of the arguments I advanced then, I beg to move the amendment standing in my name on the Order Paper and wish to test the opinion of the House.

[The Deputy Speaker (Baroness Barker) (LD)]

The original Question was that this Bill do now pass since when an amendment has been moved by the noble Lord, Lord Newby, as set out on the Order Paper. The Question I now have to put is that the amendment in the name of the noble Lord be agreed to. The Question will be decided by a remote Division; I instruct the clerk to start it.