G20 Summit

Lord Wallace of Tankerness Excerpts

Wednesday 7th September 2016 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I thank the noble Baroness for repeating the Statement today. It was always going to be difficult following the Brexit vote, but as the new Prime Minister, Theresa May appeared confident. She met with most of the other world leaders who were interested to meet her—partly, I think, because they are keen to understand what the post-EU era means for them and their relationship with us in the UK. So this was, by any standards, a crucial summit. We are all aware that the vote to leave the EU has created considerable uncertainty here in the UK, but in paragraph 42 of the communiqué the international uncertainty is also clear. Despite some promising recent manufacturing statistics, the long-term uncertainties remain.

What is clear is that the Government are still thinking through the implications, what our negotiating position is going to be and what outcomes we seek. It is now common knowledge that no advance preparation had been undertaken, which makes the job of the Prime Minister even harder. She had to attend this summit knowing that she would be expected to discuss with other world leaders how the decision would affect them and their relationship with the EU and the UK. Countries such as Japan were seeking some degree of predictability for their investments and businesses in the UK, but she was unable to provide reassurance or answers—not because she does not want to be helpful or make the best case for the British economy but because we are still in the “don’t know” zone. While I appreciate what lies behind the statement “Brexit means Brexit”, I have to admit that I do not know what it means—and neither, apparently, do other members of the G20.

Following the Prime Minister’s meeting with her old university friend, the Australian Prime Minister, Malcolm Turnbull, I think that we were all left with the impression—I certainly was—of exciting new trade and economic agreements. But the clarification from Mr Ciobo, the Australian Trade Minister, has dampened that excitement. It almost sounded like a “Yes, Prime Minister” sketch as we heard him say on the “Today” programme that a UK-Australia deal could happen only,

“when the time is right”.

Sir Humphrey might have added “in the fullness of time” or “in due course”.

We cannot sign deals with other countries while we are still in the EU and we do not know when we will be leaving it. Meanwhile, negotiations between Australia and the EU will be completed probably before we even start. To heap humiliation upon embarrassment, the Australian Minister added that because the UK has no trained negotiators of our own, he has offered to lend us Australian experts for the initial talks. Can the noble Baroness confirm that what is really on offer is talks about talks? Will we accept their kind and generous offer to use their experts for our discussions with them?

Is the noble Baroness also able to say anything more about the meeting with the Japanese Prime Minister, following his 15-page memo on Japan’s specific concerns, and whether they discussed car manufacturing remaining in the UK whatever the Brexit terms are?

We understand why our allies are uncertain. I fear that there is a danger of us becoming marginalised. Meetings took place without us that in the past we might have expected to be part of, such as President Obama’s meeting with Angela Merkel and Francois Hollande. What is encouraging, though, is that these countries are not hostile. I think that they genuinely want to make their economic relationship with us work—but we have to get moving to create the certainty and clarity that they need.

It is not just our international friends who are uncertain. So are we—even, it appears, members of the Cabinet. On Monday, the Secretary of State for Exiting the EU, David Davis, responded to a question from Anna Soubry MP about whether, in light of the concerns raised at the G20 about the impact on the economy,

“the Government are prepared to abandon that membership of the single market”.

He told the House of Commons that,

“the simple truth is that if a requirement of our membership is giving up control of our borders, then I think that makes it very improbable”.—[Official Report, Commons, 5/9/16; col. 54.]

Those were the Secretary of State’s words: “very improbable”.

Now, I am not clear how he defines,

“giving up control of our borders”,

but he was quickly slapped down by No. 10, which said that this was his “opinion” and not “policy”. Yet, in your Lordships’ House yesterday, the noble Lord, Lord Bridges, responded to my noble friend Lord Wood, that the Government,

“are not in a position to go into detail on this other than to say that we are not looking at an off-the-shelf response”.—[Official Report, 5/9/16; col. 889.]

I am confused, and I do not think I am the only one. I thought that the Secretary of State was articulating government policy from the Dispatch Box—but apparently not. Can the noble Baroness confirm whether, when Ministers make statements in either House, the statements should be regarded as government policy—or can we now expect to hear private opinion as well? How will we be able to tell the difference?

Finally, the summit also discussed other issues, included terrorism and refugees, as referenced in the Statement. Paragraph 44 of the communiqué deals with refugees. I welcome that the Government signed up to the communiqué quote:

“We call for strengthening humanitarian assistance for refugees and refugee resettlement”.

The noble Baroness will have heard the exchanges in your Lordships’ House yesterday and again today about the grave disappointment with the Government’s actions to date on resettling those unaccompanied children who qualify to come to the UK under family reunification laws yet remain in the camps in Calais—in the Jungle.

Is she aware of the report today from UNICEF, which is highly critical of the UK Government because of the danger that these children are in? They are often traumatised by both the journey from their home country and by what they witnessed or suffered there. As the author of the UN report states, they are,

“at risk of the worst forms of abuse and harm and can easily fall victim to traffickers and other criminals”.

What can be more important than ensuring that these children, who are legally as well as morally entitled to safety and refuge in the UK, have that refuge? Does the noble Baroness consider that the Government now need to take faster and more effective action to fulfil both the Dubs amendment on child refugees, passed by this House while Theresa May was Home Secretary, and the agreement reached at the G20 summit?

I hope that the noble Baroness will be able to address these questions and that the Government truly understand how important clarity is and that uncertainty is the enemy of good government.

[Lord Wallace of Tankerness (LD)]

My Lords, I too thank the noble Baroness the Leader of the House for repeating the Statement this afternoon. The Prime Minister’s Statement and the G20 leaders’ communiqué clearly set out the challenges facing the global economy at this time. As the noble Baroness, Lady Smith, quoted, it goes on to state clearly:

“The outcome of the referendum on the UK’s membership of the EU adds to the uncertainty in the global economy”.

One wonders whether any of that uncertainty was dispelled by the numerous meetings that the Prime Minister had. She says that “Brexit means Brexit”, but I rather suspect that none of the other G20 leaders knows what it means; and as the noble Baroness, Lady Smith, indicated, it appears that some members of the Cabinet do not know what it means either. When one hears that Downing Street spokespersons are dismissing a Secretary of State’s quotes as being personal rather than a statement of government policy, it suggests that the collective responsibility that we had in the coalition was a model that this Government ought to follow. Perhaps the noble Baroness the Leader of the House will take the opportunity now, and not rely on a No. 10 spokesperson, to make the position very clear with regard to the comments of the Secretary of State for Exiting the EU on Monday.

Since the result of the referendum in June, a number of Conservative Ministers have sought to give the impression that they could agree new trade deals in time for tea. The clear evidence from this summit is that that will simply not be the case. Although a number of world leaders have talked about maintaining good relations with the United Kingdom—which is very welcome—few gave the impression that a trade deal with the United Kingdom was a top priority for them. President Obama made it clear that a trade deal between the EU and the USA was a much greater priority. He was not the only world leader to take that position. The Japanese Government have released a detailed document setting out their concerns. Prime Minister Shinzo Abe has warned the Prime Minister that Japanese companies need more certainty in order to stay in the United Kingdom, and Japan’s ambassador to the United Kingdom has highlighted that Japanese companies could disinvest from our country.

The Prime Minister’s statement refers to the leaders of Mexico, South Korea, India and Singapore, who said that they would welcome talks on removing barriers to trade between our countries. That is very welcome, but can the Leader of the House give the House some context? What percentage of goods are exported from the UK to these four countries in total, compared with the percentage exported to one country, Germany, with which we would inevitably be raising trade barriers unless we enjoy full membership of the single market? Even Australia, the country from which the Prime Minister had the warmest welcome at the G20, has been clear that any post-Brexit deal with the UK would have to wait until Australia had completed parallel negotiations with the European Union, a process which will not even begin for another two and a half years at the earliest. I fear it is a long time since Britain has stood so alone on the world stage. Can the Leader of the House confirm that, at the summit, the Prime Minister did not hold a single bilateral meeting with any other Europe Union leader?

Will the noble Baroness take this opportunity to end the current uncertainty? Do we not owe it, globally and to companies here at home, to indicate what our position will be with regard to membership of the single market? Does she agree that securing such membership should be the Government’s priority rather than burdening British companies with additional red tape and compromising our position as a global economic nation?

We on these Benches are also deeply disappointed that the Prime Minister failed to raise the issue of steel exports with China during her bilateral meeting with President Xi Jinping. Thousands of jobs at Port Talbot, and across our steel industry, are facing an uncertain future because of dumping of steel on the EU market by China, but although it was raised in plenary, it does not appear that the Prime Minister took the opportunity to make the case in a bilateral meeting.

Although there has been much aspirational talk by Ministers of preferential trade deals, one is conscious that the only concrete, substantive trade deal that we have heard about since Parliament returned on Monday is the continuing supply of military equipment to Saudi Arabia. Can the noble Baroness tell the House what discussions the Prime Minister had with Saudi Ministers at the G20 regarding the position in Yemen and international humanitarian law? Will she clarify her Government’s definition of a “serious” breach of international humanitarian law?

With regard to other matters, the communiqué states a clear commitment to,

“usher in a new era of global growth and sustainable development, taking into account … the Paris Agreement”.

Given the news that China and the USA have now ratified the Paris Agreement, will the noble Baroness commit to the UK ratifying that agreement in line with our international partners? Will she also confirm whether or not it will require parliamentary approval under Section 20 of the Constitutional Reform and Governance Act 2010 and, at the same time, whether the same parliamentary requirement applies to any Brexit agreement with the remaining EU?

The communiqué also states a clear commitment to,

“taking into account the 2030 Agenda for Sustainable Development”.

What action are this Government taking to ensure that the sustainable development goals are truly universal and that each government department is working towards these goals?

We on these Benches remain very concerned at the global refugee crisis. Given the attention given at the conference to the refugee crisis, will the noble Baroness be more specific about the Government’s objectives at the upcoming high-level meeting on refugees and migrants in New York later this month? Can she also answer the points raised by the noble Baroness, Lady Smith, in relation to the some 380 children eligible to come to the UK who are currently in Calais?

We have heard in recent weeks that Brexit is Brexit, but we seem to be no closer to knowing what it actually means. From the briefings given on the Prime Minister’s plane, we know that it does not mean a points-based immigration system or that £350 million a week will be given to the National Health Service—that promise, given by those who are now senior members of the Conservative Government, is no longer worth the bus it was written on. There is much confusion from the Conservative Government, and in the face of that confusion, we on these Benches will continue to fight to keep Britain open, tolerant and united.

[Baroness Evans of Bowes Park]

I am grateful to the noble Baroness and the noble and learned Lord for their remarks. Before I address some of the specific points, I will touch on some of the key elements of last week’s summit. First, as I said, we saw that the UK has, and will continue to have, a leading role in the international community, whether in championing work on antimicrobial resistance or pushing to deliver an economy that works for everyone. The summit showed that we are shaping the global agenda on many of the important challenges facing the world, and we will continue to do so.

Secondly, we saw that world leaders want to work constructively with us to make a success of Brexit. The Prime Minister outlined her vision for the UK as a global leader on free trade, and it was clear that there is a shared desire to build and maintain strong relationships with our international partners. Our priority now has to be to work through the issues posed by Brexit to deliver on that vision, and to get the right deal for Britain.

The noble Baroness and the noble and learned Lord asked about the shape of this. We are looking at negotiating a new relationship with Britain. Noble Lords are right that the process will not be brief or straightforward, but we are looking to achieve the best deal. What the British people told us with their vote was that it must be a priority for us to regain more control over the numbers of people who come here from Europe, but also that we must allow British companies to trade with the single market in goods and services.

Both noble Lords asked about Japan’s approach. Of course we continue to listen to and engage with Japanese business and investors as we plan for our exit. In fact, since the G20 the Japanese ambassador has praised the,

“cautious and very patient”,

approach of the Prime Minister, and said that what is needed are,

“well-thought through considerations before you start any negotiations”.

That is exactly the approach that the Prime Minister has taken. The relationship between the UK and Japan has gone from strength to strength in recent years, and we believe it will continue to do so. The PM and the Prime Minister of Japan spoke and were both clear that they would work together to build our relationship. As was said in the Statement, as a member of the EU we will continue to support a swift conclusion to the EU-Japan free trade agreement, and co-operation on security with our European and global allies will be undiminished.

The noble Baroness and the noble and learned Lord asked about unaccompanied children. I assure noble Lords that we began to work to implement the Dubs amendment immediately after the Immigration Bill gained Royal Assent. Discussions are happening with local authorities because this is a UK matter rather than a G20 one, but of course we are working with Greece, France, Italy and NGO partners to speed up existing processes and implement new ones where necessary.

The noble and learned Lord commented that the Prime Minister did not meet other EU leaders. As he will be well aware, over the summer she visited France, Germany and some of the key leaders. This was her first opportunity to meet President Obama, for example, so she took such opportunities at the G20 and that was the right approach.

The noble and learned Lord questioned the fact that the Prime Minister did not specifically raise steel with China. In fact she raised it with everyone; this was a key concern of ours, and in fact we were delighted to have secured a commitment from the G20 steel-producing nations to bring forward a global response to address overcapacity, including through the OECD Steel Committee, which will meet next week. That will provide the first opportunity, following the summit, to take stock of response efforts and discuss the feasibility of forming a global forum for dialogue and information sharing on overcapacity.

The noble and learned Lord asked about the Paris agreement. We are fully committed to ratifying it, and of course we were very pleased to see the commitment from both the United States and China during the course of the summit. We are already playing our part in delivering this through our domestic climate framework and we will ratify it as soon as possible, but all necessary work to implement the agreement is under way. I am sure we will refer to some of the other issues that the noble Lords raised later in the debate, but if there is anything else I can add subsequently I will do so.

To conclude, I reinforce what the Prime Minister said in the other place: the best route to prosperity for this country is as a global leader in free trade, but to carry people along with us we must deliver and demonstrate the benefits of that approach for people right across the country. As a Government, that is exactly what we will do. We will act boldly at home so that our economy works for everyone, and we will work with our international partners abroad, shaping an ambitious global role for this country that will deliver prosperity for our citizens and those around the world in years to come.