European Union (Notification of Withdrawal) Bill

Debate between Lord Tyrie and Andrew Murrison

Tuesday 31st January 2017 Commons Chamber

[Mr Tyrie]

I agree. Other states have an opportunity to agree a deal, because it would be obtainable under qualified majority voting, and does not require unanimity, as a careful look at article 50 shows, although that point was not initially understood.

If the UK leaves the customs union, a huge amount of work will be required to develop and enforce rules of origin. Despite the extra bureaucracy, I still think there is merit in leaving. If the greatest opportunities turn out to be in Asia in the medium to long term, as many forecast, we should put the country in a position to benefit. I strongly agree with my hon. Friend the Member for Gainsborough (Sir Edward Leigh), who is no longer in his place, that a liberal economic internationalism should underpin everything we try to develop in our trade relations.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

I agree with much of what my hon. Friend has had to say. Does he agree that TheCityUK’s analysis has, it would appear, changed dramatically? Like him, it can see the advantages that might come from Brexit, having once been of the opinion that Brexit would be the worst possible thing for this country’s financial sector.

[Mr Tyrie]

TheCityUK did say that it was the worst possible thing for the financial sector, and it has clearly decided that the best thing to do is to look for the opportunities rather than spend time moaning about where we are. On the basis of what I read on my iPad on my way to the debate, it has focused on the point about the customs union.

The Treasury Committee has heard convincing evidence that both parties in the negotiations—both the EU and ourselves—have a lot to gain from maintaining a high degree of access to the single market, and a lot to lose from the absence of such access. We should bear it in mind that the EU, like the UK, benefits from our integration with European supply chains in the automotive and aerospace sectors, for example, and we all benefit from access to London’s deep and liquid financial markets, which lowers the cost of capital to European firms, and of course to British firms. Restructuring manufacturing supply chains would cost both sides a lot; so, too, would the fragmentation of the financial markets.