(6 years, 2 months ago)
Commons ChamberNow that we have honoured the wishes of the British people and got Brexit done, we will publish later today detailed aspects of our future relationship with the European Union, and I shall be making a statement after these questions. Formal negotiations will begin next week.
When it comes to the negotiations that will begin next week, no one knows what the Government’s bottom line is, and we will not find out until later this year, but will the Minister explain to the House today why on earth the Government believe that the reputational damage that will be inflicted, not just in EU capitals but around the world, by our casual reneging on a number of commitments set out in the political declaration, which was signed in good faith with the EU after the recent general election, is a price worth paying?
I have great respect for the hon. Gentleman, but I am afraid that his question is wholly misconceived. We have absolutely no intention of doing anything other than honouring the withdrawal agreement, honouring the protocol that we have signed, and making sure that we achieve the political declaration’s aim of ensuring that we have a comprehensive free trade agreement with no tariffs, no quotas and no quantitative restrictions.
Does my right hon. Friend think the EU has spotted that we have actually left and no longer need to negotiate our terms of release?
My right hon. Friend has made a very good point. There are a range of views—a spectrum of opinions—in European capitals, but I think that the pennies, the pfennigs and the centimes are dropping as a result of the Prime Minister’s speeches and the lecture given recently by the Prime Minister’s sherpa David Frost.
I have regular meetings with my right hon. Friend the Secretary of State for International Trade covering a number of issues, not the least of which is our border arrangements. Import controls are necessary to keep our borders safe and secure, and to ensure that we treat all partners equally, especially when it involves collecting the right customs, VAT and other excise duties.
I am grateful to the Minister for answering this question. During the referendum, he said that we would be part of a
“free trade zone…from Iceland to the Russian border”,
with
“full access to the European market”.
However, this month he has been clear that we will lose frictionless trade, and that will introduce red tape and vast impacts on our businesses. How can businesses trust his future pronouncements? Will he clarify when he abandoned the idea of frictionless trade?
The whole point of our negotiations with the European Union, now that we have left, is to ensure that we do have a comprehensive free trade agreement that will ensure there are no tariffs, quotas or quantitative restrictions. That is entirely consistent with the broader approach towards free trade, which does indeed exist from Iceland to the Russian border.
As the Minister will be aware, my country of Wales has, along with Scotland, already passed legislation to give young people aged 16 the vote. It is a positive move and the right thing to do; it will enable young people to engage in the political process and influence decisions that affect their lives. Surely it is time that the Minister followed our excellent lead and listened to what young people want; it is their future, after all.
I am very grateful to the hon. Lady for making that point, but I am afraid it is a no.
If it is good enough for the Welsh and the Scottish, why on earth are 16 and 17-year-olds in England and, indeed, Northern Ireland not entitled to the vote? It is a question of equality. If someone can go to war for their country and pay their taxes for the country, we should extend the franchise to them. From Peterloo to the extension of the franchise to women through the women’s suffrage movement, the north-west has a proud history of extending the franchise. Come on: do the right thing for the English, Minister, and give 16 and 17-year-olds the right to vote and, indeed, those in Northern Ireland as well.
That was a brilliant question in the style of orator Henry Hunt at Peterloo, but I am afraid we have to accept that in the United Kingdom the devolved Administrations quite rightly make decisions within their competence but the UK Government have no intention of altering the franchise in the way that the hon. Gentleman suggests. We are getting on with the people’s priorities: investing in our NHS and fighting crime, improving education and levelling up the economy. Those things are more important than constitutional changes.
Next week, we will start negotiations with the EU on our future relationship, and I will shortly make a statement to the House on our approach. Whatever the outcome of the negotiations, the transition period will end at the end of this year. We are working closely with businesses and border groups on preparations for the end of the transition period, and I will be meeting representatives from our ports, freight and haulage sectors later today.
I take this opportunity to welcome to the Front Bench my strengthened and hugely talented ministerial team. I look forward to working with them to deliver on our priorities in the months ahead: overseeing the transition period, strengthening the integrity of our precious Union, ensuring that our constitution is fit for the 21st century, and reforming our civil service and public sector in line with the people’s priorities.
The SNP Scottish Government’s groundbreaking legislation ensures that everyone who chooses to make their home in Scotland, including refugees and EU citizens, can vote. That follows up on the enabling of votes at 16, which the Government here continue to oppose. Will the Minister now look to follow the lead of the Scottish Government and Scottish Parliament towards a more inclusive democracy, or have this Government given up entirely on democracy?
I am grateful to the hon. Gentleman for outlining the approach to the franchise that the Scottish Government take, but one of the most important lessons that democracy teaches us is that we must respect votes. Of course, Scotland voted to remain part of the United Kingdom in the referendum in 2014, and I am afraid his party still refuses to acknowledge the legitimacy of that referendum.
I thank my hon. Friend for asking that question. The truth is that our United Kingdom is proof positive that a union of nations is stronger together, and it is important that we ensure that the benefits of our Union are spread equally. That means making sure that public sector jobs are deployed effectively in Northern Ireland, Wales and Scotland. It also means that the strength of our Exchequer is the foundation that our economy provides for human flourishing across these islands. All these things are reflective of the strength of our Union, the single most successful political union and enterprise that anyone has seen on this earth, and that is why it is so important that we fight for it from Fermanagh to Forfar and to every part of England and Wales as well.
Why is the Secretary of State scared of 16 and 17-year-olds?
As the father of a 16 and a 17-year-old, I can assure the hon. Lady that I am not in the least scared of them.
May I ask the Secretary of State, and explicitly him on this question, what role does Dominic Cummings have in the Cabinet Office, and will he outline his professional and personal relationship with him?
The gentleman concerned is a special adviser who works for the Prime Minister. All special advisers work for the Prime Minister. I have the highest regard for the special advisers who do such a wonderful job, supporting the Government in the delivery of the people’s priorities.
Yesterday, the former Chancellor said that he had resigned because of the interference of Dominic Cummings and the working arrangements of what is the second office of state. Never before has such a senior member of the Government resigned because of the dictates of an unelected official. Is it now Mr Cummings and his weirdos and misfits who are running this Government? How many other Sabiskys are lurking around in Departments, and how does the right hon. Gentleman now fit in to the operation and mechanics of government?
Again, I thank the right hon. Gentleman for his question. [Interruption.] Forgive me. It is only a matter of time, I suspect. The broader point is that the Cabinet Office, the Treasury and No. 10 work seamlessly together to ensure that the wishes of the British people, as expressed in the last general election, to strengthen our United Kingdom, to level up our economy and to make sure that people have the opportunity to excel in every sphere are carried out with harmony, unity and energy.
My right hon. Friend makes a characteristically acute point. It is the case that the European Union exports more in goods to the UK than we export to the EU. Were some voices—I stress that it is a minority of voices in the European Union—to prevail and were they not to progress these negotiations in the way that, I am sure, we would all want to see, there would be damage to the EU’s economy, and that is the last thing that I want to see.
Does the Chancellor of the Duchy of Lancaster not think it odd that the very people who want votes at the age of 16 changed the law so that 16-year-olds cannot buy cigarettes or go into a tanning salon, and does that not reveal just how empty their aspirations are?
My hon. Friend, in typically pithy fashion, draws attention to the fact that when we consider the whole question of when people reach the age of maturity, the landscape is complicated. The previous Labour Government—this was led by Ed Balls—raised the participation age in education to ensure that 17 and 18-year-olds had to be in employment, education or training. That was a welcome recognition of the need to support young people to be everything they can be at the appropriate moment. This Government are committed to ensuring that young people have the right opportunities, but it is important to acknowledge that, for example, even though young people can apply to join the armed forces at 16, they cannot be deployed in a battlefield situation until they are at least 18. It is important, when discussing 16, 17 and 18-year-olds, to appreciate the complexity of the situation and to show sensitivity.
As my hon. Friend the Minister of State, Cabinet Office, pointed out earlier, there is a difference between special advisers, who are appointed by and work for the Prime Minister, and contractors, who exist in all Departments.
I am grateful to the hon. Lady for raising that question. Civil servants must of course abide by the civil service code, and we deprecate the leaking of any Government information. I will reflect hard on the point behind her question.
I declare an interest as a vice-president of Combat Stress. May I point out that Combat Stress is facing a crisis because the Government are withdrawing funding for the 1,200 or so veterans who use its services every year? There is now an instance of a veteran taking their own life because they were refused treatment by Combat Stress and referred back to their GP. This is a very serious situation. Will my hon. Friend please ensure that Combat Stress gets the funding it needs to deliver the care to the veterans it looks after?
The Chancellor of the Duchy of Lancaster might want to be very careful with the answers he gives to the House about Mr Sabisky in relation to the defence and security review—a point raised by my hon. Friend the Member for Sefton Central (Bill Esterson) a moment ago—because he well knows that teams of civil servants have been working on that review for some time; it did not just start yesterday, when the Prime Minister announced it. Can he answer this question: did Mr Sabisky meet any of the officials working on the defence and security review—yes or no?
I welcome the veterans interview guarantee, but I have spoken to veterans in Stoke-on-Trent Central, where we have quite a number, and sometimes the issue relates to pre-employment in that they need help to prepare for being ready for an interview. Will the Minister give some idea of whether we can support them on that?
(6 years, 2 months ago)
Written StatementsThe Cabinet Office has sought a repayable cash advance from the Contingencies Fund of £82,663,000.
This routine requirement arises each year because the Cabinet Office receives a high proportion of its voted funding at supplementary estimate, and as a consequence may only draw the related cash from the Consolidated Fund after the Supply and Appropriation Act has received Royal Assent in March 2020.
The cash advance will pay for programmes which will generate Government-wide benefits or savings and are urgent in the public interest.
Parliamentary approval for additional resources of £53,885,000 and capital of £27,903,000 and cash of £875,000 will be sought in a supplementary estimate for the Cabinet Office. Pending that approval, urgent expenditure estimated at £82,663,000 will be met by repayable cash advances from the Contingencies Fund.
[HCWS134]
(6 years, 2 months ago)
Commons ChamberWith your permission, Mr Speaker, I would like to make a statement on the Government’s approach to our future relationship with the European Union.
Now that Britain has left the EU, we are entering a new chapter in the history of these islands. This Government have honoured the clearly expressed wish of the British people. Their instruction to us, their servants, to secure our departure from the EU has been followed. The votes of 17.4 million people—more than have ever voted for any democratic proposition in our history—were implemented on 31 January and we are now on a new journey. As a sovereign, self-governing, independent nation, we will have the freedom to frame our own laws, control our own borders, lower all our taxes, set our own tariffs, determine our own trade relationships, and ensure that we follow the people’s priorities on security, the economy, and democratic accountability. Over the next nine months, we will negotiate a new relationship with our friends and partners in the EU based on free trade and friendly co-operation. We have today published the approach for these negotiations, and copies of the document, “The Future Relationship with the EU”, were made available to Members in the Vote Office from 9.30 am.
Talks with the EU on our future relationship begin next week. It is our aim to secure a comprehensive free trade agreement as well as agreement on questions such as fisheries, internal security and aviation. We are confident that those negotiations will lead to outcomes that work for both the UK and the EU, but this House, our European partners, and, above all, the British people should be in no doubt: at the end of the transition period on 31 December, the United Kingdom will fully recover its economic and political independence. We want the best possible trading relationship with the EU, but in pursuit of a deal, we will not trade away our sovereignty.
The Government’s vision for the UK’s future relationship with the EU was outlined with crystal clarity by the Prime Minister during the general election campaign, and the election result comprehensively confirmed public support for our direction of travel. In his speech in the Painted Hall in Greenwich on 3 February, the Prime Minister laid out in detail how we will reach our destination. The first principle of our approach is that we wish to secure a relationship based on friendly co-operation between sovereign equals. We respect the EU’s sovereignty, autonomy and distinctive legal order, and we expect it to respect ours. We will not accept or agree to any obligations where our laws are aligned with the EU or the EU’s institutions, including the Court of Justice. Instead, each party will respect the other’s independence and the right to manage its own borders, immigration policy and taxes.
The second and allied principle of our approach is that we will seek to emulate and build on the types of relationship that the EU already has with other independent sovereign states. We will use precedents already well established and well understood to ensure that both sides’ sovereignty is respected. By using already existing precedents, we should be able to expedite agreement. We will seek functional arrangements that the EU will recognise from its many other relationships. Our proposal draws on existing EU agreements such as the comprehensive economic and trade agreement with Canada, the EU-Japan economic partnership agreement and the EU-South Korea free trade agreement. That approach should enable us to move swiftly towards the goal envisaged in the political declaration agreed last October, in which both sides set the aim of concluding a zero-tariff, zero-quota free trade agreement.
As well as concluding a full FTA, we will require a wholly separate agreement on fisheries. We will take back control of our waters as an independent coastal state, and we will not link access to our waters to access to EU markets. Our fishing waters are our sovereign resource, and we will determine other countries’ access to our resources on our terms. We also hope to conclude an agreement on law enforcement and judicial co-operation in criminal matters, so that we can work with the EU to protect their citizens and ours from shared threats, but we will not allow our own legal order to be compromised. By taking back full control of our borders, we can implement measures to make the British people even safer, and we can tackle terrorism and organised crime even more effectively. We also wish to conclude a number of technical agreements covering aviation and civil nuclear co-operation, which will help to ensure continuity for the UK on its new footing as an independent sovereign nation.
Securing agreement on all those questions should not, in principle, be difficult. We are, after all, only seeking relationships with the EU that it has with other nations—relationships that respect the interests and the sovereignty of both partners. It is in that light that we should view discussions about what has been termed the “level playing field”. It has been argued that EU demands in this area will make full agreement difficult, yet there is no intrinsic reason why requirements that both parties uphold desirable standards should prejudice any deal.
The United Kingdom has a proud record when it comes to environmental enhancement, workers’ rights and social protection. In a number of key areas, we either exceed EU standards or have led the way to improve standards. On workers’ rights, for example, the UK offers a year of maternity leave, with the option to convert it to parental leave, so that both parents can share care. The EU minimum is just 14 weeks. On environmental standards, we were the first country in the world to introduce legally binding greenhouse gas emission reduction targets through the Climate Change Act 2008. We were also the first major global economy to set a legally binding target to achieve net-zero greenhouse gas emissions across the economy by 2050.
We will not dilute any existing protections. Indeed, as the Environment Bill debated yesterday demonstrates, we wish to go further and faster than the EU in improving the natural environment. We do not need the EU’s permission to be a liberal nation leading the world in the fight against climate change and for social progress. That is why the UK Government seek an FTA with robust protections for the environment and labour standards, but we do not see why the test of suitability in those areas should be adherence to EU law and submission to EU models of governance. The EU does not apply those principles to free trade agreements with other sovereign nations, and they should not apply to a sovereign United Kingdom.
Some argue that we must accept EU procedures as the benchmark because of the scale of UK trade with the EU, but the volume of UK trade with the EU is no greater than the volume of US trade with the EU, and the EU was more than willing to offer zero-tariff access to the US without the application of EU procedures to US standard setting. The EU has also argued that the UK is a unique case, owing to its geographical location, but proximity is not a determining factor in any other FTA between neighbouring states with large economies. It is not a reason for us to accept EU rules and regulations. We need only look at the United States-Mexico-Canada agreement for an example of a trade agreement that does not require regulatory alignment to one side’s rules or demand a role for one side’s court. Geography is no reason to undermine democracy.
To be clear, we will not be seeking to align dynamically with EU rules on EU terms governed by EU laws and EU institutions. The British people voted to take back control, to bring power home and to have the rules governing this country made by those who are directly accountable to the people of this country, and that is what we are delivering.
The negotiations are due to begin next week, led by the Prime Minister’s sherpa, David Frost, and I would like to end by looking ahead optimistically to the coming months. There is ample time during the transition period to strike the right deal for the UK. We hope to reach a broad agreement ahead of the EU Council’s high-level summit in June, whereupon we will take stock.
We know that our proposals are measured and our approach is fair. We know what we want to achieve. We are ready to go, and this Government are committed to establishing a future relationship in ways that benefit the whole UK and strengthen the Union. We are committed to working with the devolved Administrations to deliver a future relationship with the EU that works for the whole UK, and I take this opportunity to reassure colleagues that our negotiation that will be undertaken without prejudice and with full respect to the Northern Ireland protocol.
This Government will act in these negotiations on behalf of all of the territories for whose international relations the UK is responsible. In negotiating the future relationship between these territories and the EU, the UK Government will seek outcomes that support the territories’ security and economic interests, and reflect their unique characteristics. As the Prime Minister committed to do on Second Reading of the European Union (Withdrawal Agreement) Act 2020, we will keep Parliament fully informed about the negotiations, and colleagues will be able to scrutinise our progress.
This Government are delivering on our manifesto commitments with energy and determination. This Government got Brexit done, and we will use our recovered sovereignty to be a force for good in the world and a fairer nation at home. We want and we will always seek the best possible relationship with our friends and allies in Europe, but we will always put the welfare of the British people first. That means ensuring the British people exercise the democratic control over our destiny for which they voted so decisively. That compact with the people is the most important deal of all, and in that spirit, I commend this statement to the House.
I thank the Minister for the Cabinet Office for prior sight of his statement. He talks about having got Brexit done, but he knows that is not the case. We have taken the first step in leaving the European Union, but Brexit, as he knows, is far from done. The Government’s ambition for our new relationship with our most important trading partner is, frankly, underwhelming. They started with a commitment to securing the exact same benefits; then scaled it back to frictionless trade to protect our vital supply chains; then it was Canada-plus-plus-plus; and now it is Canada so long as that does not get in the way of ending our alignment with the standards that we have previously enjoyed.
The Minister talked about the Government’s mandate in the general election, which was based on a withdrawal agreement and a political declaration that says the free trade agreement will be
“underpinned by provisions ensuring a level playing field”.
They now apparently reject that. The Minister spoke of higher UK standards than are required within the EU, and he is right—there are some examples; there are also contrary examples—but EU standards are a floor, not a ceiling. May I ask the Minister: if the Government have no intention of falling below those standards, why are they unwilling to make that commitment?
I spent Monday evening with manufacturing companies from across the north of England, and they are not worried by alignment; indeed, they want it. They are concerned about the barriers to trade undermining their position in the crucial European market. I know that the Prime Minister has made his contempt for the views of business well known, but will the Government not think again at this crucial moment, because they are taking serious risks with our economy, people’s jobs and their livelihoods?
The Treasury analysis from November 2018 predicted that a Canada-style FTA would shrink the economy by up to 6.4%. I know the Government have rubbished their own analysis already, but what new analysis have they done? May I ask the Minister: will the Government publish a full economic impact assessment of the deal that they are seeking? Will they also publish the assessment of the other trade deals that he mentioned? A recent freedom of information request revealed that the Department for International Trade has commissioned and received, but not yet published, assessments of the impact on the UK economy of the FTA with the US, of that with Japan and of the Trans-Pacific Partnership. Will he commit to publishing those impact assessments immediately?
The Prime Minister has told us time and again that his Brexit deal
“represents stability and certainty for business.”—[Official Report, 19 October 2019; Vol. 666, c. 594.]
But in ruling out extending the transition period, the Government are taking business from one set of uncertainties to a new set. They are expecting to complete enormously complex negotiations in just 10 months, with a cavalier disregard for the consequences of failing to do so. The Minister’s warning to business that customs checks are “inevitable” and that “almost everybody” will face extra barriers at the border is deeply concerning. Indeed, the one place where the Government claim that there will not be checks—for GB trade with Northern Ireland—is the only place where they have actually so far committed to having them: down the Irish sea. In light of the conflicting statements from so many of his colleagues, will the Minister clarify the extent of checks along the border that the Government have created down the Irish sea?
Labour wants the best deal for Britain in trade, security and all the other areas mentioned by the Minister. That means maintaining the closest possible relationship with our most important trading partner, and it is on that that we will hold the Government to account.
I am grateful to the hon. Gentleman for his questions and for the constructive way in which he approaches these matters. This Government are wholly committed to implementing the withdrawal agreement, to respecting and enacting the Northern Ireland protocol, and to giving effect to the political declaration and its aim of securing a comprehensive free trade agreement without tariffs, quotas or quantitative restrictions. He asked specifically about the maintenance of standards, and the requirement that we follow EU law and ECJ judgments in order to secure workers’ rights and environmental protections. We do not believe that is necessary, and the EU does not require submission to its legal order from any other sovereign independent state. Ultimately, the best guarantor of environmental protections and workers’ rights is a sovereign UK Parliament that is determined to lead in the world, just as this Government are doing in those areas.
It is vital to ensure that our manufacturing sector, like all sectors of our economy, is equipped to take advantage of new economic opportunities. That is what the Government are doing, and my right hon. Friend the Chancellor of the Exchequer will say more about how we can supercharge every part of our economy when he delivers the Budget statement on 11 March. The free trade agreement that we seek should ensure tariff-free access to markets, and provisions on rules of origin that will allow the manufacturing sector to flourish in the future.
The hon. Gentleman pointed out that the need to ensure that negotiations are concluded by the end of the transition period on 31 December necessarily means that they will have to proceed at pace. They will, but as I pointed out, and as he acknowledges, because we are seeking relationships for which there is already a precedent between the EU and other countries—precedents such as those between the EU and Canada, Japan, South Korea and others—it should be possible to make rapid progress. I note that my good friend, Dr Martin Selmayr—he is now the EU’s permanent representative to Austria, and he previously worked for the President of the Commission—has said that it would be entirely possible to conclude those negotiations in a timely fashion, and not for the last time, Dr Selmayr and I are in complete agreement on that.
The hon. Gentleman made a point about customs checks and a border down the Irish sea. There will be no border down the Irish sea, and we will ensure that there is unfettered access for Northern Ireland businesses to the rest of the United Kingdom.
I acknowledge the hon. Gentleman’s sincere beliefs and his commitment to appropriate scrutiny, but the problem for the Labour party more broadly is that its approach to Europe would mean that we would have no control over our fishing borders, no effective control over our borders, and no way of charting our own independent economic destiny. Looking at that proposal, I am afraid all I can say, as someone once said, is, “No, no, no.”
Several hon. Members rose—
I congratulate my right hon. Friend on his clear statement, and on his view that since the standards we set are higher than those in the EU, he will therefore not be demanding that the EU aligns with our standards as we go forward. That is refreshing. The settlement on Northern Ireland in the withdrawal agreement included provision on state aid, and since then, the EU has interpreted that as bringing the whole UK under state aid provisions. Will he confirm that in any future agreement with the EU, we will not accept that the UK leaves itself under the jurisdiction of the European Court of Justice when it comes to state aid provision?
My right hon. Friend makes an important point. Of course we must respect the integrity of that protocol, but it is not the case that the CJEU should be governing the application of state aid in the way that some have envisaged, which would be quite wrong.
What a load of bunkum, baloney and codswallop! This is nothing other than a route map to the cherished no deal, which is the real ambition of the Brexit zealots on the Conservative Benches. They are, even now, prepared to break international law to achieve that outcome.
Let us dispense with the unicornism and see if we can start to make sense of the real world and what we are actually dealing with. The EU expects nothing other than the political declaration to be implemented in full. It expects that level playing field to be realised and it will not accept anything else. How many times do the Government need to be told that the UK will not leave with a better deal and arrangement than that which is currently enjoyed? It does not matter if it is Canada-plus. It does not matter if it is Australia. It does not even matter if it is outer space-minus-minus-minus. The Government will have an inferior product at the end of the day when we finally get an agreement with the EU. Look at who we are up against: it is the clown-shoe UK up against the efficient, effective EU, with its negotiating experience—[Laughter.] Conservative Members are laughing, sitting there with their proposals which mean absolutely nothing. They will be trounced by the EU in the negotiating process. Their hard Brexit will do nothing but hurt my nation. Even with one of these free trade agreements, our GDP will be hit by 6.1%. If they get their cherished no deal, the consequences will be absolutely catastrophic for my nation of Scotland.
Scotland wanted nothing whatever to do with this ruinous Brexit and we will not accept it. I am sure the hon. Gentlemen who have been laughing and scoffing have seen the opinion polls in Scotland. There is now sustained majority support for independence for Scotland. One of the things driving that is all of them saying no to Scotland and pursuing their hard Brexit. Scotland is not going to be a part of this, Secretary of State. We will not accept it. When will you allow us to have a referendum, so we can get out of this mad Brexit?
I am very grateful to the hon. Gentleman for his remarks. First, may I use this opportunity to place on the record my thanks to Mike Russell MSP from the Scottish Government for the work he has done, along with leaders from other devolved Administrations, in helping to shape our approach?
Of course, the Scottish Government and the Welsh Assembly Government will in some areas take a different view from the UK Government, but it is undoubtedly the case that our negotiating position is enhanced as a result of the conversations we have with our colleagues in the Scottish National party and the Scottish Government. Indeed, a number of changes have been made to our approach and to this document, following conversations I have had with the Scottish Government over the course of the past week.
It is also the case, however, that Scotland, like every part of the United Kingdom, will benefit hugely not just from our departure from the European Union but from the new trading relationships we will develop with other countries. It is the case, for example, that when we conclude a new free trade agreement with the United States, Scotland will be one of the sectors that benefits most from the new trading opportunities. It will also be the case, as the Scottish Government have themselves pointed out, that tens of thousands of new jobs will be created in north-east Scotland in the fishing sector as a direct result of our departure from the European Union—jobs that would not be created if we followed the SNP approach of staying in the common fisheries policy.
Ultimately, the greatest threat to the prosperity and security of the people of Scotland is the reckless approach the Scottish Government take towards the 2014 referendum and their determination to overturn the settled will of the Scottish people to stay in the United Kingdom. Their approach, I am afraid, would mean that we would have border posts at Berwick and they would not be able to use the pound sterling in Stirling. We must give that madness a miss.
I very much welcome my right hon. Friend’s statement. Does he agree that those who continue to peddle the line that we somehow need to tether ourselves to the EU’s rules and standards are in fact making a case to hold Britain back?
Is the Secretary of State aware that 60% of international exports from Wales go to the European Union? The Welsh Government have said that there must be a level playing field and frictionless trade with the EU in the interests of the Welsh economy. Is he aware of that?
I am very well aware of the views of the Welsh Assembly Government, thanks to the excellent work done by Jeremy Miles AM, the Brexit Minister and Counsel General. I enjoy the conversations I have with Jeremy, Mark Drakeford and others to ensure we can work together.
I appreciate that negotiating a comprehensive free trade agreement with the EU is a priority, but will the Minister confirm that we will also look to reach free trade agreements with other countries, that such negotiations are either under way or will be shortly, and that we have the civil service capacity to reach them?
My hon. Friend makes a very good point. Yes, we do—the Department for International Trade has a team of trade negotiators, lawyers and other policy experts. There have already been a number of informal and formal contacts with the United States, Australia, New Zealand and other participants in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and we will proceed at pace with negotiations with partners across the globe to forge free trade agreements in the interests of every part of the United Kingdom.
Brexit is clearly far from done. It had cost us £130 billion by January and the average UK household is £900 worse off. Will the Minister tell us what he estimates the price tag will be at the end of this year, and, given the gendered impact of trade, where is the equality impact assessment that the Government have a statutory duty to provide?
Looking at most of the indices of economic performance, such as the measures of increased investment and increased capital expenditure recently, it is the case that the United Kingdom economy, following the Conservative victory in the general election on 12 December, is powering ahead—indeed, powering ahead by comparison with EU nations. I would like to make sure that we get a comprehensive free trade agreement so that other EU nations can benefit from the dynamism of the UK economy and that men and women across Europe can benefit from the right economic relationship.
Financial services are critical to this country’s economy, contributing 11% of our total tax take. Will my right hon. Friend assure my constituents who work in financial services that their interests will be protected during free trade negotiations?
Absolutely—financial services matter not just in the City of London, but in Edinburgh, Perth, Leeds and across the United Kingdom. It is a dynamic and growing sector and it is important that we make sure we have the right arrangements for them. We hope that the EU will report by June on the prospects for equivalency in financial services. That commitment was made in the political declaration. It did not subsequently appear in the EU’s negotiating mandate, but I am confident that by June the EU will have completed those equivalency assessments.
In our future relationship, it is important that musicians, performers and so on can move freely and continue to go to Europe, and that European performers can come here on a reciprocal basis. What is the Minister’s understanding of the Government’s position on that?
The hon. Member makes an important point. He will see that in this document there are details on how we can ensure that those who provide professional services, including artists and musicians, can continue to do so at the end of the transition period. It is critically important that the cultural excellence that so many UK musicians are responsible for continues to be available to European nations. Whether it is the Bayreuth festival or pop concerts in Belgium, we need to make sure that British talent has a chance to shine.
Does my right hon. Friend agree that an agreement on a future relationship by the end of the year is perfectly feasible, and that the EU and its negotiators need to recognise the reality of a sovereign, independent United Kingdom with a strong, dynamic economy?
Yes, that is absolutely right. As I mentioned, a number of EU leaders have said that a deal is doable because we are operating on the basis of precedent, and it should then be possible to conclude all the necessary agreements. Having concluded these agreements by the end of this year, we can then move on to deepening the many bilateral and multilateral relationships that we have with our friends and partners in Europe to the benefit of all.
The right hon. Gentleman referred to other deals that he is hoping to emulate. He will be aware that the EU’s deal with South Korea took eight years from the start of negotiations to implementation and that the Canada deal took seven. Given that the Government are seeking a much more comprehensive arrangement than either of those, his optimism that it can be done and ratified in 10 months remains to be proven, but will he confirm that if it is not possible to conclude a deal, we will exit the transition period on 31 December with no agreement whatsoever?
We already have an agreement—a withdrawal agreement that safeguards the rights of UK and EU citizens, settles our financial obligations and makes provision through the protocol for Northern Ireland’s position. As for the free trade agreements to which the right hon. Gentleman refers, it is more difficult to begin when one is designing a prototype; now that the prototypes exist and have become precedents, it is much easier to replicate their provisions.
Further to the previous question, some two years ago I attended a presentation, complete with slides, given by Mr Michel Barnier, at which he indicated that, as things then stood, the only post-Brexit trading arrangements available to the UK were those enjoyed by South Korea and Canada, which is precisely the arrangement that the Government are seeking. Since then, the EU seems to have resiled from that position. Does my right hon. Friend know why the EU is apparently showing such bad faith?
As my right hon. Friend knows, having served with distinction in government, there is a range of views across the European Union, but the EU mandate has now been concluded, with unanimity, and we are confident that we can negotiate using our approach and that mandate to reach an appropriate deal, similar to the one that he has outlined.
I have often referred in this place to the concerns of the highland tourism industry, in particular hotels, about the continuing employment of EU nationals, many of whom are heading homeward, and the concerns of fish processors about getting their fresh produce to European markets in good time. Will the Secretary of State, who is a good Scot, consider coming to the highlands to meet representatives of those industries? He would be most welcome.
I would be delighted so to do. Any opportunity to visit the hon. Gentleman’s constituency is a welcome one. He is absolutely right that the hospitality industry is integral to the success of the highlands economy. We want to make sure that in the future those who provide such a high standard of hospitality have access to the skilled labour they need.
I thank my right hon. Friend for his statement and his clear message on fisheries. He will know that memories run deep in our fishing communities, and that great concern continues to be felt because of the way the fishing industry was treated previously. Will he make it absolutely to clear to fishermen in Cornwall and around the country that access to our fishing waters will not be used as a bargaining chip to be traded off against other priorities?
My hon. Friend is absolutely right: memories of what happened in the 1970s certainly do run deep, and for very good reason. That is why I sought to stress that we, as an independent sovereign state, regard control of our own resources as something we cannot barter away. Of course we want to co-operate in the management of stocks with our neighbours, but the approach we take will be similar to that of other sovereign states or regimes such as Norway, Iceland and the Faroes. As an independent coastal state, we will regulate access to our own waters on our terms.
I welcome the right hon. Gentleman’s commitment to trying to secure a comprehensive free trade agreement, but does he accept that many of my constituents who work in the automotive industry are seriously worried about the impact of a potential 10% tariff on motor vehicles? Will he give a firm commitment to making sure that their interests are as protected as possible?
I am grateful to the right hon. Gentleman for making that point. Throughout his time in the House, he has been a strong, consistent and powerful voice for the rights of workers. He is absolutely right that those who work in our automotive sector deserve the best possible future, and it is for that reason that we will seek to avoid any tariffs on cars or automotive products.
British farmers are proud to produce food to the highest standards, and the British consumer benefits from that. Will my right hon. Friend reassure the farmers and consumers of my constituency that those high standards will be maintained in any free trade agreement?
Absolutely. The Agriculture Bill, which was introduced by my right hon. Friend the Member for Chipping Barnet (Theresa Villiers) during her outstanding tenure as Environment Secretary and which is being carried forward by her successor, will ensure that farmers have a firm foundation on which to plan for the future. In all our trading relationships, we will make sure that there are appropriate protections for the environment and for animal welfare, to ensure that the peerless standards set by our farmers are used as a badge of excellence to enable them to do even better in the future.
Can the Secretary of State confirm that fishing fleets and fish processors in Portavogie in my constituency, Ardglass, Kilkeel and elsewhere will have the same rights as their fellow fleets and processors in Scotland, Wales and England, and that Northern Ireland will not be disadvantaged by the border down the Irish sea?
There will be no border down the Irish sea, and the fishing fleets of Northern Ireland will enjoy all the rights that they deserve, similar—indeed, identical—to those of other fishermen, and fishers, throughout the United Kingdom.
Striking a deal is far easier and far more likely from a position of strength. Does my right hon. Friend agree that, in contrast to what happened in 2017, going into these negotiations with clarity and unity, backed up by a strong electoral mandate, should give us all reasons for optimism, not pessimism?
My right hon. Friend is absolutely right. As I have said before from this Dispatch Box, given a 52-48 referendum result and 650 different views in the House, not everyone will be satisfied with every aspect of our negotiating approach; but with a united Government, a clear approach and a general election mandate, and given that this document is underpinned by clear work by lawyers, trade negotiators and others, I believe that we can secure a deal, and I am sure Members throughout the House recognise that we should not make our own personal perfect the enemy of the common good.
The Minister’s statement and the document published today show that the Government have made a fundamental choice, which is to prioritise sovereignty over any economic argument or consequence for either goods or services. Is there not a danger, however, that having made that choice, the Government will impose long-term economic consequences on the country in pursuit of the prize of a sovereignty that they will end up not using very much, because at the end of the day good standards in the environmental, labour market and consumer sectors actually make sense?
The right hon. Gentleman always makes thoughtful contributions to our debates, and I take his point. It will be for this Parliament and future Parliaments to decide how our sovereignty is exercised in accordance with the wish of the British people, but the experience of history tells us that the countries with the maximum amount of control over their own destinies are the best equipped to succeed economically and, indeed, to secure a greater degree of equity for all their citizens.
Does my right hon. Friend recognise the distinction between EU regulations and European technical standards? The latter are set outside the EU, and without a loss of sovereignty, by expert bodies of which the British Standards Institution is one of the most respected and admired in the world. Does my right hon. Friend share my hope that British standards expertise will continue to be able to influence European and international standards?
My right hon. Friend has made an excellent point, which reflects the brilliant work that he did as Business Secretary. It is absolutely the case that there are common technical standards in which British experts play a distinguished part. We will want to ensure—and I know that others will want to ensure—that those common standards can help to underpin successful commerce and trade.
The Minister began by saying that the Government were not asking for anything that was not already in an existing agreement between the EU and another country, but then gave an answer on financial services which the document backs up, saying that the Government were seeking an enhanced, comprehensive equivalence regime for our major sector. I must respectfully say to him that those statements cannot both be true. There is no single equivalence regime—it is a patchwork of regulations—and there are major bits of legislation that contain no equivalence provisions at all, such as cross-border payments regulation, the motor insurance distribution directive and the single euro payments area. So, with respect, we are asking for something additional, and one of the answers that the Minister has given is not really correct.
I am grateful to the hon. Gentleman for his thoughtful intervention, but all that we are seeking is straightforward equivalence in financial services. The European Union has said that it will review that, and we will know the conclusions of its review by June.
What an excellent statement the Minister made, outlining our principles, but can he assure me that the principles will not change when the EU says no to something? Over the last few years I have listened to excellent speeches from that Dispatch Box, only to find that our principles change when the EU says no.
I am a restless seeker after consensus wherever it can be found, but, more important than that, I am a democrat. The British people made it clear in the referendum and again in the general election that they wanted us to leave the European Union, and the Prime Minister made it clear in the general election, as he did during the referendum campaign, that that meant leaving the single market, leaving the customs union and leaving the jurisdiction of the European Court of Justice. We will not move from those principles.
Regrettably, the British Government, through this statement, have decided to take a belligerent approach to the second phase of Brexit negotiations. Their opening move is to try to reopen the agreement reached after the first phase of Brexit, and to set further arbitrary deadlines for the infinitely more complicated second phase of Brexit dealing with trade. Rather than playing Russian roulette with people’s jobs and economic wellbeing, would it not be better for the Government to take a grown-up approach to these negotiations and remove any arbitrary deadlines for the conclusions of the negotiations?
There are no arbitrary deadlines. The deadline of 31 December for agreement is in the political declaration. If we were to take that out, we would be altering the political declaration. However, we are honouring the political declaration, and far from being belligerent, all we are doing is simply setting a deadline. When I was an editor in the world of newspapers, setting a deadline for correspondents was not an exercise in belligerence; it was a way of making sure that we could serve the people.
Does my right hon. Friend agree that we have higher standards than the EU in a number of areas, particularly in maternity, and that it might be useful for the EU to recognise that in some of its discourse?
My hon. Friend is absolutely bang on. Across the nations and countries of the continent of Europe, there are different approaches to some of these questions. There are also countries outside the European Union, such as Norway, that have exemplary standards in environmental protection, as well as in maternity and social rights. The UK, like Norway, is a progressive, liberal, modern country, and that is something that we should celebrate across the House. Outside the European Union, we can aim even higher.
The Minister knows that Canada, South Korea and Japan are not in the single market or the customs union, so we are starting from a different position. Will he therefore accept that if we diverge from EU environmental standards and workers’ rights, there will inevitably be restrictions? Is it not really his plan to lose British jobs and simply blame the EU? Would it not be better to keep up the standards and keep up the trade, because people did not vote to lose their jobs when they voted to leave the EU?
I completely understand where the hon. Gentleman is coming from, but we have had a referendum and a general election, and in both it was very clear that we were going to leave the single market and the customs union and take back control in the interests of the British people.
I very much welcome the statement, and the document to which my right hon. Friend refers. I particularly welcome the clarification and increased detail on the subject of fisheries, and not least the point that, as he said in his statement, “we will require a wholly separate agreement on fisheries. We will take back control of our waters as an independent coastal state, and we will not link access to our waters to access to EU markets.” Will he confirm to the House and to the constituents of Banff and Buchan, particularly those in the seafood sector—the catchers and those on the processing side—that we will retain sovereignty and get the best deal for our fishermen across the United Kingdom, despite the assertions from the EU and the seemingly wishful thinking of Scottish National party Members?
My hon. Friend is absolutely right. For folk in Banff and Buchan, Moray and across the United Kingdom, a sea of opportunity beckons when we leave the European Union, and it is a great pity that the SNP and the Scottish Government, despite the many talented Members that they enjoy, still want us to remain in the EU and the common fisheries policy. This is one of a number of ways in which they would sell Scotland short, and it breaks my heart.
This Government have today ignored the voice of Scotland in the referendum and ignored the compromise proposals from the Scottish Government. They are showing that they are willing to ride roughshod over a Sewel convention. Now the right hon. Gentleman has reneged on his offer as chair of Vote Leave for Scotland to have its own immigration policy. Which one of these aspects will strengthen his so-called precious Union?
We are respecting the referendum result. In 2014, the people of Scotland voted to remain in the United Kingdom. This is a settled decision that, sadly, the Scottish Government seek to unpick to the detriment of all. After Scotland voted to be in the United Kingdom, the United Kingdom, whole and entire, voted to leave the European Union, and we are working to ensure that that democratic decision works in the interests of all.
I welcome my right hon. Friend’s statement. The UK’s economy is primarily service based, and while I hear that taking back our borders means a separate treaty for fishing, which many people in coastal communities will welcome, many of my constituents are in financial services and probably represent more people than are employed by fishing in the entire UK. We have talked about taking back control of our money, so why not have a separate treaty for financial services? If not—I have heard his comments on equivalence—will he set out the Government’s position on equivalence when it comes to the derivation period?
As my hon. Friend makes clear, financial services matter not just in Wimbledon, but across the United Kingdom, which is why, as stated in the document published today, we wish to conclude an agreement that will make provision for financial stability, market integrity and investor and consumer protection for financial services. We also want to secure mutual recognition of professional qualifications to ensure that everyone in our service sector can continue to have access to opportunities in every market in which they currently work.
May I ask the Minister for further information to the chapter on digital in the report, which refers to an
“open, secure and trustworthy online environment”
and encouraging regulatory co-operation? With the Government moving to tackle online harms on various platforms, will he set out in more detail what he means by ensuring that there is co-operation on regulation in any future trading agreement?
Yes. As the hon. Gentleman knows, we are compliant with the general data protection regulation that the EU introduced, and we want to ensure that we get an equivalency judgment from the EU on data adequacy, so that we can continue to ensure that data flows, which are so integral to business and others, can continue in an appropriate way.
I welcome my right hon. Friend’s statement for its clarity and optimism, which people of Montgomeryshire and, indeed, the majority of people in Wales will welcome. To tackle some of the scaremongering, will he meet with the Welsh farming unions to outline again that we will not seek to lower food standards? Indeed, if my hon. Friend wants a Welsh farmhouse breakfast, we can certainly do that in Montgomeryshire.
I am grateful to my hon. Friend for making that point. Whether it is from the Farmers’ Union of Wales, NFU Cymru or my hon. Friend, farmers in Wales have brilliant representation. There is nothing nicer than a Welsh farmhouse breakfast, apart from possibly an Ulster fry, or a bacon sandwich in Peterhead harbour.
The Minister states that the negotiation will take place without prejudice to the Northern Irish protocol. However, there is confusion in Northern Ireland. We hear from the EU that there will be no derogation from the rules, but reports over the weekend suggested that the Government seek to find ways around the protocol, yet the Minister and his colleagues say that there will still be unfettered access and no border in the Irish sea. Will the Minister please describe in detail, with the crystal clarity he referred to, how those irreconcilable aims will be married up, and how people in Northern Ireland will finally get certainty after three and a half years of bluster and stalled investment? Will he also clarify what form the negotiation with the devolved Administration will take?
Far from there being confusion, I hope that there is clarity that we will implement the withdrawal agreement, respect the Northern Ireland protocol, and then conclude a comprehensive free trade agreement with the European Union that will work in the interests of the people of Northern Ireland and people across the United Kingdom. I have had profitable conversations with both the First Minister and the Deputy First Minister in the preparation of our approach today. We will not always agree with every party in Northern Ireland, but all parties in Northern Ireland, including the hon. Lady’s, have an important role to play in ensuring that we deliver for all the people of the United Kingdom.
I am grateful to my right hon. Friend for his reassurances to our fisheries. Those reassurances are particularly relevant to the fisheries in my beautiful constituency. Does he agree that the point of leaving the EU is to enable us to make our own laws in our own way through politicians whom we elect, and who are accountable to the British people?
My hon. Friend gets to the heart of the matter. Democratic accountability, as outlined brilliantly and eloquently by the father of the right hon. Member for Leeds Central (Hilary Benn) in this House and elsewhere, is something that all of us should celebrate, and that leaving the European Union allows us to enhance.
The document rightly acknowledges the importance of the second-generation Schengen information system—SIS II —database, which holds millions of pieces of data on wanted or missing persons, including vulnerable children. The document also says that if by June insufficient progress has been made on ensuring the basis of an agreement by September, the Government will begin to make their own preparations for domestic priorities. Will the Chancellor of the Duchy of Lancaster explain how he will protect this country properly if we have to sacrifice our access to millions of pieces of vital data and rely on an Interpol database that contains only a few hundred thousand records?
The hon. Lady makes an important point. We would like to continue having access not just to the Schengen information system II database, but to Prüm, ECRIS and a number of other law enforcement and criminal justice tools. Of course, we will have to see what approach the European Union takes. I am hopeful it will take a pragmatic approach, because it benefits just as much as we do, if not more, from our participation in these databases. Leaving the European Union allows us, through our controlling our own borders and laws, to improve homeland security in a number of ways, and we will always act in the interests of the British people.
Can my right hon. Friend confirm that the UK and the EU will trade together under an Australian-style agreement if an agreement cannot be reached by the end of the year?
My hon. Friend is absolutely right. We want to have a comprehensive free trade agreement on the model I outlined in my statement, but if we do not, there are other great countries, including Australia, New Zealand and, of course, the United States, that have a huge volume of trade with the EU without having an agreement of that kind.
We cannot level up by damaging the foundations, but that is exactly what would happen to the economy if we walked away in June, as the Government have this morning been briefing that we will. As my hon. Friend the Member for Stretford and Urmston (Kate Green) said, it would also do damage to our security. The document clearly says there should be no
“role for the CJEU in resolving UK-EU disputes”.
Does that mean that the Government are happy potentially to lose access to not only databases that are crucial to our security, but the European arrest warrant?
That is ultimately a question for the EU. We are clear that we want a relationship of sovereign equals. If the EU attaches to that relationship a requirement that we follow the jurisdiction of its courts, it is not a relationship of sovereign equals. The security of the EU would be impinged as well, and I am sure that no European politician would want to sacrifice the security of their people by taking anything other than a constructive approach.
Before I came to this place I had a job, in the wake of the Brexit referendum, representing the banking industry in negotiations with the EU, the European Parliament, the Commission and the European Council, and in discussions with the Bank of England and the Treasury on what sort of relationship we want with the EU after Brexit. We came to realise quite quickly, as did the Bank of England—Mark Carney has spoken on this point—that, as a global financial centre, being a rule taker and having no say on our financial regulation would be a threat to the UK’s financial stability. Does my right hon. Friend agree that we have to be very careful, as becoming a rule taker would be a real threat to our financial services?
Yesterday, as a member of the Select Committee on Defence, I heard from Professor Malcolm Chalmers of the Royal United Services Institute that
“the risks to the UK’s essential alliance relationships are greater now than they have been for many decades.”
Can the Chancellor of the Duchy of Lancaster advise the House on why the statement on our future relationship with the European Union says absolutely nothing about maintaining and improving defence?
When it comes to maintaining and improving defence, we have a network of relationships, including, of course, our membership of NATO—the strongest and most durable alliance for freedom the world has ever known. When it comes to defending this country, one of most perilous things we could do would be to follow the Scottish Government’s approach of breaking up the United Kingdom and of unilateral nuclear disarmament. I am afraid that the SNP’s position on defence, like its position on so many other issues, would mean the Scottish people were less safe. That is the direct result of its ideological attachment to separation.
In the light of the Minister’s remarks on a level playing field, can I ask him about competition policy and governance arrangements? Would the Government accept commitments on workers’ rights, environmental protections and consumer and social standards being subject to any dispute resolution mechanism agreed to as part of the wider agreement?
The hon. Gentleman has given a list, and I will come back to each of them in correspondence. Some will be covered by dispute resolution mechanisms, and others may not.
Scotland cast its biggest ever vote on a proposition when it voted by 62% to remain in the EU. More people in Scotland voted to remain in the EU than voted to remain in the United Kingdom—and that was using the UK Government’s franchise; had the Government trusted 16 and 17-year-olds in the way we trust them in Scotland, a bigger proportion of voters would have voted to remain in the EU. Does the right hon. Gentleman truly believe that withholding the sovereign right of the Scottish people is a sustainable position? While protecting the sovereignty of the UK, is he prepared to deny the sovereignty of Scotland?
It is the case that the Scottish nationalist party—[Hon. Members: “National!”] I am sorry, but as Robert Burns said,
“facts are chiels that winna ding”.
I am afraid that the representatives on that Bench are nationalists. They put separation—the smashing up of the United Kingdom—ahead of anything else. Some of them are decent and kind people, but they are nationalists. The reason they object so much is that when the mask comes off and we recognise the ideological heart of the SNP, they dinnae like it up ’em.
It is estimated that if agreement is reached, there will be a need for about 50,000 new customs officers. Is it feasible to recruit and train that many people in less than six months, and who is going to foot the bill for it?
Does the Minister recognise that even the most far-reaching and comprehensive free trade agreement will sadly still mean regulatory and rules of origin checks down the Irish sea. As such, beyond simply giving a rhetorical commitment on the implementation of the protocol, will he assure not just the House, but his negotiating partners in the EU, that the Government are preparing to implement that protocol?
We will ensure that the protocol is appropriately implemented, and we will also ensure unfettered access for businesses in Northern Ireland to the rest of the UK market.
Brexit will be extremely damaging for Scotland in a range of ways. The difference between me and the Minister is that he is a British nationalist, whereas I am a Scottish nationalist. Does he think that Brexit imposed on Scotland will increase or decrease constitutional tensions across the UK?
Britain leaving the EU will mean that there is a greater degree of harmony between every part of the United Kingdom. I recognise that that will be a disappointment to the SNP in its restless search for grievance, dissension and division, but one thing I cannot help saying is that even though I profoundly disagree with the SNP, it is so lovely to have so many SNP Members here in the Westminster Parliament. I know that for many, many years to come, there will be representation for Scotland here in Westminster, and that is a lovely thing.
(6 years, 3 months ago)
Written StatementsThis Government was elected with a clear mandate to deliver the result of the 2016 referendum, and to ensure that the UK ratifies the deal reached by the Prime Minister, before the UK leaves the European Union on the 31 January.
The Government have sought, in line with the Sewel convention, legislative consent from the devolved legislatures of Scotland, Wales and Northern Ireland for the European Union (Withdrawal Agreement) Bill.
It is important to note that despite the argument of some, the devolved legislatures have not been asked to consent to Brexit overall. In line with the devolution settlements, they have been asked to consent to the specific parts of the Bill that fall within devolved competence, or otherwise engage the legislative consent process.
It is therefore disappointing that the three devolved legislatures have refused to agree a legislative consent motion (LCM) for the European Union (Withdrawal Agreement) Bill.
We recognise that taking the Bill to Royal Assent without the consent of the devolved legislatures is a significant decision and it is one that we have not taken lightly. However, it is in line with the Sewel convention. It is also necessary in order to ensure that all parts of the UK have the powers required to meet our obligations in the withdrawal agreement. These include important protections for EU and UK citizens’ rights as we leave the EU.
The Sewel convention—to which the Government remain committed—states that the UK Parliament “will not normally legislate with regard to devolved matters without the consent” of the relevant devolved legislatures. The circumstances of our departure from the EU, following the 2016 referendum, are not normal; they are unique.
At every stage of the European Union (Withdrawal Agreement) Bill, the UK Government have demonstrated their enduring commitment and respect for the Sewel convention and the principles that underpin our constitutional arrangements.
The practices and procedures that have developed to deliver the Sewel convention encourage the UK Government to consult with the devolved administrations on legislation at an early stage to ensure their views are taken into account.
Through extensive consultation and engagement it has respected the spirit and the letter of the devolution settlement. Changes have been made to recognise the valid concerns of our partners in the Scottish and Welsh Governments. We have also, during the absence of the Executive, worked closely with the Northern Ireland civil service.
Despite the Government’s efforts, it is unfortunate that common ground could not be found on all elements.
We will continue to respect and uphold the Sewel convention and the devolution settlements going forward.
We will also continue to engage with the Scottish and Welsh Governments, as well as the newly formed Northern Ireland Executive, as we negotiate our future relationship with the EU.
[HCWS60]
(6 years, 3 months ago)
Commons ChamberI welcome you to the Chair, Mr Speaker.
In 10 days the United Kingdom will once more be an independent nation and ready to assert our international role with renewed confidence. Departments across Government are undertaking all the necessary work to embrace these new opportunities, and we will continue to do so during the implementation period, which ends on 31 December.
One of the most important things we can do as we approach independence day is to have a highly skilled workforce. Will my right hon. Friend ensure that, when businesses and organisations bid for Government contracts, apprentices make up a high proportion of their workforce?
My right hon. Friend is right that one of the many benefits of leaving the EU is the chance to overhaul Government procurement to make it more efficient, more responsive and more flexible, and to ensure that British talent takes its place at the forefront of wealth creation, and at the heart of that must be more young British apprentices. This will develop the skills we need to succeed in the 21st century.
I am very grateful to the right hon. Gentleman for making the case that was made so eloquently by Vote Leave in 2016. There is more joy in heaven over one Member for Warley who repenteth than over many others who still take a different view. He is absolutely right; one of the many benefits of Brexit is that we can buy British and put British firms, British workers and the whole United Kingdom first.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
The year 2020 will be one of growth and opportunity for our entire United Kingdom. The year has started positively with the restoration of devolved government in Northern Ireland, and I pay particular tribute to all the parties involved. I am delighted to say that the Prime Minister has ruled out a divisive rerun of the Scottish independence referendum and has encouraged our colleagues in the Scottish Government to concentrate on the day job and ensure that they improve health and education for the citizens of Scotland. I am glad that the political division and uncertainty that a referendum would cause have been ruled out, and I look forward to meeting Ministers from the devolved Administrations in Cardiff next week to see how we can work together in the interests of all.
Margaret Ferrier
Can the Minister take the necessary steps to confirm Heather Anderson as the new MEP for Scotland following the election of my hon. Friend the Member for Stirling (Alyn Smith) to this House, and can he confirm that the UK Government will not allow the voters of Scotland to be under-represented in their European Parliament when it votes on the withdrawal agreement that they have overwhelmingly rejected?
The hon. Lady has made a fair point, and it gives me an opportunity to congratulate the new hon. Member for Stirling (Alyn Smith), who served with distinction in the European Parliament. We will, of course, do everything we can to ensure that there is appropriate representation for every part of the United Kingdom for the remaining 10 days of our membership.
It was one of the joys of my previous job as Environment Secretary to visit farmers in North Devon. Theirs is some of the finest produce in the United Kingdom, and as we leave the European Union there will be an opportunity for us, on a global stage, to ensure that that Devonian produce reaches all the customers that it deserves to reach.
What plans have the Government to bring the House of Lords into the 21st century? If, as I suspect, the answer is none, may I remind the Chancellor of the Duchy of Lancaster that it was the House of Lancaster that won the Wars of the Roses, and may I suggest, if the Government are looking to relocate their lordships, that we have a fine mediaeval castle in the city of Lancaster which has recently been vacated by the Ministry of Justice?
I yield to no one in my admiration for the Duchy of Lancaster. I recognise that as the Government decide where agencies of both Government and Parliament should go we should think fondly of the north-west as well as Yorkshire and the north-east, but I cannot help saying to the hon. Lady that when she talks about fratricidal conflict in mediaeval times, when people were putting each other to the sword, she reminds me of nothing so much as the deputy leadership contest of the Labour party.
(6 years, 6 months ago)
Written StatementsI am today laying before Parliament a report, the “European Union (Withdrawal) Act and Common Frameworks - 26 June 2019 to 25 September 2019” as required by paragraph 4 of schedule 3 to the European Union (Withdrawal) Act 2018. The report is available on gov.uk and details the progress made in discussions between the UK Government and devolved Administrations regarding common frameworks in the fifth reporting period covered under the legislation, and sets out that no “freezing” regulations have been brought forward under section 12 of the European Union (Withdrawal) Act. A copy of “The European Union (Withdrawal) Act and Common Frameworks - 26 June to 25 September 2019” report has been placed in the Libraries of both Houses. The publication of the report reflects the Government’s continued commitment to transparency.
Attachments can be viewed online at
http://www.parliament.uk/business/publications/written-questionsanswers-statements/written-statement/Commons/2019-10-24/HCWS41/.
[HCWS41]
(6 years, 6 months ago)
Commons ChamberIt is my responsibility to prepare this country for Brexit. I am delighted that so many democrats across the House voted for the Second Reading of the withdrawal agreement Bill last night, and the universal cry from across this country is: please, get Brexit done.
It depends on which nation of this country we are talking about. At a recent meeting of the Scottish Parliament’s Finance and Constitution Committee, the Chancellor of the Duchy of Lancaster confirmed that, as part of his Government’s deal, Northern Irish businesses would have easier access to the European single market than Scottish businesses. Can he confirm how much this clear competitive disadvantage will cost Scottish business?
Scotland’s businesses benefit from being part of our United Kingdom. I gently remind the hon. Lady, as the Minister for the Cabinet Office and Paymaster General pointed out earlier, that more Scots voted to leave the European Union than voted for the Scottish nationalist party at the last general election.
It is very interesting to hear from the hon. Gentleman. He does not believe in devolution; he believes in smashing up our United Kingdom, so I will take no lectures from him on making our UK institutions work in the interests of all.
Derby is only a short train ride from London and is a welcoming city for business. Will the Minister see which Departments could be moved out of expensive accommodation in London to much better value-for-money offices in Derby?
I am very grateful to the hon. Lady. I know how seriously she takes these issues. Through the XO Committee, we are working with local resilience forums and with the Department for Education, the Department of Health and Social Care and the Department for Work and Pensions to ensure that vulnerable groups are protected come what may.
Existing electoral law seeks to control the spending and supervise the message whenever we go into elections. Does the Minister share my concern that it might not be adequate to control and supervise the advertising and campaigning that takes place on social media, where most of our constituents are more likely to get the message and where it is so important to ensure adequate controls?
(6 years, 6 months ago)
Commons ChamberWith permission, Mr Speaker, I will make a further statement on our preparations to leave the European Union on 31 October. Before I do, however, I want to underline the gratitude of Members on both sides of the House to the efforts on Saturday not just of the House authorities, but of the police, as you pointed out earlier. I particularly want to thank the hon. Member for Manchester Central (Lucy Powell) and other Opposition Members for the kind words they uttered on the behalf of all Members.
The Government are determined to do everything they can to leave the EU with a deal. The agreement that the Prime Minister concluded at last week’s European Council gives this House the opportunity to honour the votes of the 17.4 million people who voted to leave the EU by doing so on time and in an orderly fashion. Parliament had the opportunity on Saturday to support a meaningful vote that would have allowed us to proceed smoothly to ratification of our deal and exit on 31 October, but the House instead voted in such a way as to put an orderly exit on that date in doubt.
I appreciate and understand the honest intentions and genuinely sincere motives of many of those who voted for the amendment in the name of my right hon. Friend the Member for West Dorset (Sir Oliver Letwin). Let me place on the record once more the high personal regard in which I hold him. I know that he always acts in what he believes to be the national interest, and I deeply deprecate the personal criticism directed towards him. However, the House’s decision to request that a letter seeking an extension to article 50 be sent creates no certainty about our exit in an orderly fashion on 31 October.
Before Saturday’s proceedings in the House, European leaders, including the President of the European Commission, the President of France and the Taoiseach, deliberately and explicitly explained that Members should not cast their vote on the assumption that the EU Council will offer an extension. There is no certainty in this matter. Furthermore, no formal response from the EU has yet been received to the two letters sent by the Prime Minister on the evening of Saturday 19 October: the first requesting an extension to the 31 October deadline as required under the European Union (Withdrawal) (No. 2) Act 2019, and the second setting out the Government’s position that a delay to Brexit would be corrosive, a view shared by the leaders of the EU27.
With no clear agreement yet in this House to ratify our withdrawal agreement and no certainty that an extension will be granted by 31 October, I must take the appropriate steps now to prepare for the increased possibility that the legal default position will follow and that we will leave on 31 October without a deal. The clear advice to me from officials is that we must now intensify contingency arrangements. That is why the Cabinet’s XO Committee met yesterday to agree that Government Brexit preparations now move into their final, most intensive phase, and that Operation Yellowhammer should be triggered.
Let me be clear that no one would be happier than me to turn off those preparations and stand down planning for no deal. I do not think anyone in this House can doubt my desire to see a deal concluded. However, if we are to be certain to avoid a no-deal outcome on 31 October, we must vote for the Prime Minister’s deal, we must ensure that the vessel that brings certainty passes expeditiously through this Parliament and we must avoid attempts to delay, capsize or hole it below the waterline.
In that spirit, I thank the many parliamentarians across the House who have indicated they will be backing the Prime Minister’s deal, which, until he brought it home, many people thought would be impossible to negotiate. The deal ensures that we can leave the EU, and it is entirely consistent with the Belfast agreement and all our other domestic and international obligations. I can also underline that, once a withdrawal agreement has been ratified, the whole House will be involved in agreeing the mandate for negotiations on our future partnership arrangements with the EU, and we will work particularly closely with all parties to ensure that vital protections for workers and the environment are secure.
In underlining the vital role that all MPs will play in securing a strong future partnership, I emphasise that we want business, trade unions and civil society to help shape a bright future outside the EU. It is striking how organisations such as the Chemicals Industries Association, UK Finance, the Country Land and Business Association and the Federation of Small Businesses have welcomed progress on the deal and have asked parliamentarians to end the uncertainty by supporting an agreement. However, as I have explained, in the absence of that certainty, preparations for the risk of no deal must be intensified.
We will now accelerate our efforts to help businesses and individuals mitigate any dislocation and disruption that may ensue. From today, the XO Committee will meet seven days a week to provide strong ministerial focus across the Government. Hundreds of public servants across the UK will have to be redeployed. They will transfer to work in operations centres, ready to identify challenges, work together to resolve problems swiftly and implement contingency plans as required. Government, local resilience bodies and operational partners will be working together, ready to respond 24 hours a day according to need. We are also finalising the latest update of our reasonable worst-case planning assumptions and will share them with the House shortly.
Of course, we must maintain our public information campaign, which, from tomorrow, will reflect the renewed urgency of preparation. The advice will help businesses and individuals appreciate what they must do to prepare, given the uncertainty that still unfortunately prevails. I again urge everyone to check the information relevant to their situation on gov.uk and also the comprehensive summary of actions to take contained in the Government’s “No-Deal Readiness Report” published on 8 October.
We are complementing the information campaign with hands-on advice and assistance. The Department for Transport is continuing to give personal advice to hauliers at sites across the UK and the European Union and working with local resilience forums to finalise traffic management plans, ensuring the smooth flow of people and goods across the short straits. In addition, it was announced on 11 October that four operators— Brittany Ferries, DFDS, P&O Ferries and Stena Line—had been successful in their bids to deliver freight capacity for a six-month period from 31 October to 30 April 2020. They will operate over 13 routes and from eight ports in England: Teesport, Hull, Killingholme, Felixstowe, Harwich, Tilbury, Poole, and Portsmouth. I commend my right hon. Friend the Secretary of State for Transport for the smooth, effective way in which that extra freight capacity has been secured.
Her Majesty’s Revenue and Customs is stepping up work to deliver its export webinar programme to thousands of firms. The Department for Environment, Food and Rural Affairs is distributing a farming Brexit advice guide to agriculture businesses. And the Department for Business, Energy and Industrial Strategy is reaching hundreds of companies at readiness roadshows.
We have help desk capacity in place at all key Departments, with advisers ready to give the direct support required. This will build on the estimated 850 recorded engagements with business by the Department for Exiting the European Union and other Government Departments.
We are taking note of all the comments and feedback left on gov.uk by people who seek advice, and we are passing on details of specific issues of concern to the relevant Government Departments. We are also accelerating our programmes of key policy and legislative decisions to ensure full readiness, including making and tabling secondary legislation. We will be tabling the final statutory instruments to ensure that all critical Brexit-related legislation necessary for day one is in force by 31 October. This includes legislation for the new temporary tariff regime for customs and the legislation for avoiding a hard border in Ireland.
It remains the case that Northern Ireland would face unique challenges in a no-deal Brexit, and we will need to take steps to ensure effective governance and to give direction to the Northern Ireland civil service. In the absence of devolved government—today’s sitting of the Northern Ireland Assembly being a rare exception in the past two years—my right hon. Friend the Secretary of State for Northern Ireland has made alternative arrangements for governance. Legislation and guidance have been introduced to empower Northern Ireland’s superb civil servants to continue taking decisions that are in the public interest. Once again, I record my gratitude to the Northern Ireland civil service, to the Police Service of Northern Ireland and to all those who work in public service in Northern Ireland for their unstinting commitment to safeguarding the welfare of all our citizens.
The arrangement in Northern Ireland has been sustainable to date, but leaving without a deal would represent a formidable challenge to the current position. In that case, we would have to start formal engagement with the Irish Government on further arrangements for providing strengthened decision making, which would include the real possibility of restoring a form of direct rule. We would, of course, do everything to ensure that the interests of all communities across Ireland are safeguarded in any arrangements, but we must all recognise that this would be a grave step from which experience shows us it would be hard to return, particularly in the context of leaving without a deal.
Even as we prepare for the challenges of a no deal, we will make the case at every forum we can for leaving with a good deal. Parliament has previously shown determination and a focused resolve to pass laws expeditiously when the occasion warrants. The deal we have secured honours the referendum mandate this House pledged to uphold and allows the UK to leave the EU whole and entire, and it puts in place the pathway to a new partnership with the EU based on free trade and friendly co-operation.
That is why I, again, urge my colleagues in this House—all of us democrats, first and foremost—now to support the Prime Minister’s deal. I commend this statement to the House.
I thank the Minister for his courtesy in providing me with a copy of his statement 30 minutes ago. I join him in thanking everyone who serves the House for the arrangements on Saturday, and I pay particular tribute to the civil servants who are working under huge stress to prepare for this remarkable event at midnight a week on Thursday. The House hardly needs reminding, but we are right on the edge of a potential precipice.
The Minister has told us that the Cabinet XO Committee will be meeting daily, and I hope he will be able to keep the House fully informed of its further decisions, as and when appropriate. When the Prime Minister appointed him as Minister for a no-deal Brexit, I think the idea was that he would try to avoid such a situation rather than try to make it possible. His statement fills me with foreboding for the country, because it appears as if the Government really do think that 31 October is a date this House will tolerate. I have to tell him that I do not believe that will be the case. In any event, the Prime Minister himself sent a letter to the European Union—he forgot to sign it, apparently—saying that he will pursue a delay, so 31 October seems to be an artificial date.
I will be brief, as there is still much to do this evening. The Government’s own assessment shows that a no-deal Brexit would be a disaster for jobs, for industry and for living standards. Their own assessment says there will be a 10% loss of GDP over the next 15 years, and the Institute for Fiscal Studies says that a no-deal outcome would result in Government borrowing rising by up to £100 billion, debt escalating to 90% of national income and growth flatlining. None of those is just a number on a spreadsheet, as I am sure he understands. These are real people’s jobs, livelihoods, communities and even family businesses, often built up over generations—all of them are now at risk.
This is not “Project Fear.” It is already happening here and now. Is the Minister aware that the manufacturing trade body, Make UK, has warned that even the prospect of a no-deal Brexit has meant that exporters are already suffering losses? The most deprived regions of the country would be hit hardest by a no deal, and the Government’s own figures show that people on the lowest incomes will suffer the most. [Interruption.] Many people are shouting from a sedentary position, "Vote for the deal." The Prime Minister’s free trade Brexit deal will result in every person in our country being £2,250 worse off, which is why we will not support the deal.
Instead of taking a no deal off the table, the Government are continuing to spend billions of pounds of taxpayers’ money on Operation Yellowhammer, and they are probably diverting thousands of civil servants. How much money does the Minister estimate will be spent on this futile project? Surely the money would be better spent on rebuilding our country. Can he confirm that Operation Yellowhammer would not even come close to managing the economic disaster the whole country will face if we crash out with a no deal? That is not to mention the problems facing Ireland.
Operation Yellowhammer shows the disastrous impact of no deal on medical, food and energy supplies, which is why Members on both sides—this is a very important point—have repeatedly shown there is no will in this House to turn for a no deal. It will not happen.
Some have argued that a no deal was really just a negotiating tactic, a ruse to force concessions from the EU, but the Government have now finished their negotiations with the EU. Why, then, have they continued to place this sword of Damocles over the whole country?
The Minister claimed this weekend that the risk of leaving without a deal has increased, but how can that be? The opposite is the case, because the House has voted repeatedly to stop the Government crashing us out with no deal. The truth is that the Prime Minister thinks the only way to get legislation for this sell-out deal through this House of Commons is to bully and blackmail MPs with the threat of a no deal, but he has lost the consent of the House. He double-crossed the DUP, and he has taken a bulldozer to most of our procedures. His behaviour has thrown away the good will of hon. and right hon. Members. More than anything else, he has disposed of the good will of the House in the manner of the Godfather casting confetti at a mafia family wedding.
Even at this late stage, I press the Government to change course. A no deal would damage our country, injure our economy and inflict lasting damage on the nation. Abandoning a no deal might have the inadvertent and, some might say, lamentable consequence of placing the Minister for no deal on the Back Benches. Regrettable as that might be, some of us might think it a price worth paying.
I thank the hon. Gentleman for his questions and, in particular, I am grateful for his kind words about the civil service. One of the many things we have in common, as well as representing constituencies that voted leave and being opposed to a second referendum, is that both of us are huge fans of the civil service and appreciate the great work done by civil servants every day for all of us in this country.
The hon. Gentleman asked me to keep the House informed even as the XO Committee sits every day, and I will do my best to do so. I am certain there will be an opportunity for at least one more statement, and I will be happy to respond to any urgent questions in his or any other Member’s name that relate to our Brexit preparations.
The hon. Gentleman asked about 31 October and suggested that the date is artificial. I fear it is not, as the date is fixed in legislation as a result of the article 50 process and has been agreed with the European Union. One of the important things that all of us in this House need to bear in mind is that EU leaders have made it crystal clear that they want the deal done, and they want it done by 31 October. The reason why the risk of no deal has increased materially is that EU leaders have said we cannot be certain that an extension will be granted. In those circumstances, there is one way to bring certainty, and I know that the hon. Gentleman knows this in his heart. The way in which we can bring certainty is by voting for the Prime Minister’s deal.
The hon. Gentleman asked about the cost of preparation. One thing the Prime Minister has stressed, and which is absolutely true, is that once we leave with a deal, we will be outside the customs union and the single market, and much of the preparation that will have been done in advance of 31 October will enable businesses to benefit from the free trade agreement that we hope to conclude with the EU and the new trade agreements we will conclude with other nations. There is a bright future ahead but it requires all of us to listen to the voice of this country and get Brexit done.
I thank the Chancellor of the Duchy of Lancaster, and his colleagues and officials, for all the work they have done to help minimise any potential disruption in Kent. Can he also reassure the House that the security agreement with the EU that will be needed to help protect us against any further vulnerability to terrorism or organised crime will be put in place as soon as possible? Can he say what that timetable might be?
My right hon. Friend makes a good point. It is the case that we co-operate with EU nations in a variety of forums, not just through the EU; that the security of all benefits as a result; and that many of the shared tools for law enforcement and national security that we have allow EU citizens to benefit from intelligence gathered by our agencies. We hope to conclude a new arrangement as quickly as possible, as part of our future partnership with the EU. My right hon. Friend the Home Secretary has written to Frans Timmermans, the Commissioner responsible for security, to say that in the event of no deal we continue to share access to tools such as ECRIS—the European Criminal Records Information System—SIS II and Prüm. So far, Frans Timmermans has not indicated that he would collaborate, but we believe it is in everyone’s interests to ensure that we would.
I thank the Chancellor of the Duchy of Lancaster for advance sight of the statement. It leads me to my first question, which is: what is he not telling us? What does he know that we do not know about this entire process? He must know something, otherwise I do not understand why he continues to commit hundreds of extremely highly qualified civil servants and to waste hundreds of millions of pounds of taxpayers’ money in the service of an objective that we have consistently ruled out. He himself said as recently as March that no deal is something that must be avoided, the Benn Act has made no deal illegal unless this House agrees to it and now the Prime Minister has sought an extension to the process from the EU in order that no deal can be avoided. I admit that the Prime Minister has acted with the maximum bad faith and with all the enthusiasm of a petulant schoolboy, but none the less he has written the letter, and the letter has been received and accepted. That means that the only way the scenario that he is planning for can unfold is if this House fails to pass the Government’s withdrawal Bill, which I hope it will, and the EU then declines to extend beyond 31 October. Is Government policy therefore now based on the assumption that the EU will refuse to extend the article 50 deadline beyond 31 October? If it is not, why does he continue with this wasteful exercise?
I agree with the right hon. and learned Member for Rushcliffe (Mr Clarke): how come this date of 31 October has become elevated to the extent it has? The Government have this Halloween fetish now. The only reason 31 October matters—rather than, say, a week, month or year later—is to save face for this Prime Minister. It is a rum day indeed when the Government of the day are more concerned about the vanity of the Prime Minister than they are about making good legislation and doing what is good for the country. Is the truth not that all this talk of Yellowhammer and no-deal preparations is a propaganda exercise, trying to whip up fear and anxiety to drive people into the welcoming arms of the Prime Minister’s deal, in relief and thankfulness? It won’t work, Chancellor.
One of the many reasons I had hoped the hon. Gentleman would have become deputy leader of the Scottish National party was shown in the way in which he delivered his questions without notes, with great fluency and authority. All of us in this House recognise what a great speaker he is. What a pity, however, that a very well delivered speech got one or two fundamental aspects of the position in which this House finds itself wrong. He asked about the money that is being spent. As I pointed out in response to my opposite number, the hon. Member for Hemsworth (Jon Trickett), this money will be wisely spent come what may, because we needed to make sure that businesses across the country, including in Scotland, are prepared for life outside the single market and the customs union. That money, which the Scottish Government have asked for, has been given to the Scottish Government and they have spent it. If they and the SNP believe there was no point in spending that money, I imagine they would have returned the cheque to the Chancellor of the Exchequer saying “Not required here.” That was not the case, so they clearly do feel, as we all feel, that it is important to make preparations.
The hon. Gentleman made two other points. He asked why fetishise the date of 31 October. That is the date in law that has been passed in this House and by the EU as the date by which we must leave, following the extension of article 50. It is not a date that was chosen by my right hon. Friend the Prime Minister and it was certainly not one chosen by me. It was a date that this House accepted, following negotiation with the EU, and that is the law. It is also the case that, in law, any extension has to be granted by all EU27 member states. We are sometimes accused in this House of being insular, but the President of the Commission, the Taoiseach and the French President have all made it clear that there is no guarantee that any extension will be issued. All those of us who value relationships with our friends and neighbours in Europe should take heed of what they say; no extension is guaranteed, and no certainty exists. That is why we must back this deal, and I hope that SNP Members, who have done so much to say why no deal is unwelcome, will, at this late stage, repent and recognise that the interests of our United Kingdom are served by their presence in the Lobby supporting this deal.
There is no such thing as a no-deal exit; if we leave without the withdrawal agreement, there would be all sorts of agreements and arrangements in place. So will the Government do more to tell the country about the 2017 facilitation of trade agreement between all World Trade Organisation members to ensure smooth borders, the government international procurement agreement to allow Governments to transact business, and the customs, haulage and aviation arrangements and agreements, which are all in place. People should stop scaremongering.
My right hon. Friend makes a very fair point. If we leave without the withdrawal agreement being ratified, we will leave without that deal. “No deal” is sometimes used to cover that specific outcome, and it is with respect to that widely accepted description that I use the term. He is right to say there are other agreements, and there will continue to be agreements, that we have concluded, both with individual EU member states and with the EU overall, which will govern our relationship. However, I am strongly of the view that a withdrawal agreement which has been ratified in this place will be the best possible way in which we can ensure both that we recognise the Brexit referendum vote and that we continue to have free trade and friendly co-operation.
One of the main concerns that has been expressed about the consequences of leaving without an agreement is the potential for delay for lorries moving across the channel, an issue on which the Chancellor of the Duchy of Lancaster has given evidence to the Brexit Select Committee. Will he tell the House what the Government’s latest assessment is of the percentage of lorries leaving the United Kingdom that would have the correct paperwork on 1 November if this eventuality, which none of us wants to see happen, comes to pass, and therefore what kind of delay we might be looking at in those circumstances?
I will share with the House the revised planning assumptions in Yellowhammer very shortly. It is the case that the level of business readiness has increased, and we expect that a significantly increased number of vehicles will be ready. That obviously has an effect on flow at the border, but we are being deliberately cautious. We are copper-fastening those assumptions and I hope to share them with the House very, very shortly.
Following on from the comments made by my right hon. Friend the Member for Wokingham (John Redwood), I entirely agree that there is no such thing as no deal; there is not leaving with a formal withdrawal agreement and with a whole lot of side deals. Will my right hon. Friend the Chancellor of the Duchy of Lancaster make a point of publicising those deals to educate the Opposition? Will he inform the House of what further meetings he has planned with the French authorities? They have been bullish that traffic at Calais/Boulogne will flow and that they have made the necessary preparations. Contrary to what the right hon. Member for Leeds Central (Hilary Benn) said in his question, the lorries do not need paperwork; it is all done electronically.
My right hon. Friend makes a number of good points. The first is that in the no-deal preparation document, which was shared with the House on 8 October and runs to some 150 pages, we ran through many of the arrangements that have been put in place—some agreed and some the unilateral decision of the EU—to make sure that if we leave without an agreement, we can mitigate the risks in all our interests. It was interesting that on that occasion the right hon. and learned Member for Holborn and St Pancras (Keir Starmer) did not ask any questions about that document; he asked about other process questions. I am always available to answer questions about those provisions.
My right hon. Friend is right that significant investment has been made by the French Government to ensure that, exactly as he says, electronic information can be exchanged before trucks arrive in Calais, to allow them to move smoothly through the green lane and, if they are carrying fish or shellfish, to move smoothly to the border inspection post at Boulogne-sur-Mer.
On a recent trip to a pharmacy in Birstall, the staff and I had a conversation about their anxiety about generic drugs becoming more expensive because of delays and tariffs, and also because pharmaceutical companies might not want to launch their drugs in the UK because they are now more expensive. With 81% of pharmacists saying in a recent survey that they are worried that drugs are going to be delayed because of a no-deal Brexit, I asked the Chancellor of the Duchy of Lancaster directly a couple of weeks ago whether he believed that anyone would die because of a no-deal Brexit. He was robust in his answer and said no unequivocally; is that still the case?
First, I thank the hon. Lady for her question, because it gives me the opportunity to echo her in saying how much we value the work of local pharmacists and how critical they are to the effective operation of our NHS in providing all our constituents with the treatments that they need in an effective and timely way. Talking of the effective and timely delivery of medicine, it is the case that the freight transport that my right hon. Friend the Secretary of State for Transport has secured is enough for more than 120% of our category 1 priority medical goods needs. It is also the case that the steps we have taken to ensure business readiness and to improve flow over the short straits should ensure that there will not be the shortages or delays about which the hon. Lady is concerned.
Crispin Blunt (Reigate) (Con)
Does my right hon Friend agree that uncertainty has a price, and that price is growing not only in the United Kingdom but, importantly, in the European Union? It is absolutely in the EU’s interests to bring this uncertainty to a close by declining our formal request for an extension and forcing the House to a decision. It was as true on 29 March as it is for 31 October: the only way the House is going to vote for a deal negotiated by the Government with the membership of this House as it is constructed today is if there is a straight choice between deal and no deal. The rhetoric from the Opposition about the unacceptability of no deal will then be called out, we will get the deal, we will have the certainty of a transition period and a proper place to negotiate our future relationship, and 14 months in which to do it. If the EU delays, we are pitched into further uncertainty and further cost.
My hon. Friend is 100% spot on and I am completely in agreement with him.
Further to the question from the right hon. Member for Leeds Central (Hilary Benn), I want to be clear that the Brexit Secretary revealed today that article 271 of the deal would institute exit summary declarations for goods being sent from Northern Ireland into Great Britain. Just to be absolutely clear, that is goods being transferred within the United Kingdom. Will the Chancellor of the Duchy of Lancaster confirm that those plans are being put in place, potentially for 1 November? Is he content with those declarations being put in place, or is there a chance that they will not happen? What has he estimated the cost of administering those declarations will be? How many does he anticipate that there would be?
If we leave without a deal and that is the situation that prevails on 1 November, no such checks would be required at all.
I wholeheartedly congratulate my right hon. Friend and officials right across Government for the magnificent public information campaign that he is running. I hope he will not mind my saying that it is the campaign I would have dreamed of securing from the autumn of 2017 when I first started asking for one. Will he confirm that he has had adequate discussions with business groups to ensure that businesses are properly prepared?
That gives me the opportunity to say a profound thank you to my hon. Friend who, as a Minister in the Department for Exiting the European Union, undertook heroic efforts to ensure that we were as well prepared as possible. In so far as we were not well prepared, it was because of other factors, because his own efforts in that regard were focused, public spirited and highly effective.
It is the case that we have had conversations with lots of business organisations to ensure that they are as well prepared as possible. As I have said before, the impacts of leaving without a deal will depend on different economic sectors reacting in different ways.
Whether we leave with a deal or without one, I am sure the right hon. Gentleman will agree that children’s best interests must always be protected. Will he say whether the Government will either continue or replicate the arrangements under Dublin III that ensure that unaccompanied asylum-seeking children can come to this country and be reunited with their family members?
Charlie Elphicke (Dover) (Ind)
I thank my right hon. Friend the Chancellor of the Duchy of Lancaster, the Secretary of State for Transport, their teams and officials, and particularly the hard-working civil servants and officials in Kent who have worked tirelessly on this important project to make sure that we are ready. I have had blood-curdling warnings of chaos at Dover and the channel ports and of gridlock on Kent’s roads in the event of a no-deal Brexit. Will my right hon. Friend assure me that if the deal goes through, there will not be problems on Kent roads or at the channel ports?
My hon. Friend is absolutely right. We have an opportunity. There have been various different projections—reasonable worst-case scenarios and other projections—in respect of what might happen in the event of no deal. I absolutely assure him that if the House takes the opportunity it now has to vote for the deal, none of those scenarios will materialise and we will be able to move to the next stage of our relationship with the EU, based on free trade and friendly partnership.
Although I find it difficult to believe, I appreciate that the right hon. Gentleman is not familiar, as apparently many Cabinet Ministers are not familiar, with the deal that they have negotiated with the EU, but others have looked at it in detail. I refer back to the question from my hon. Friend the Member for Nottingham East (Mr Leslie). Article 271 of the deal specifically says that goods leaving Northern Ireland and coming into Great Britain must provide an exiting summary declaration. Is the right hon. Gentleman familiar with that? Will he confirm that that is the case? In that event, are the procedures in place and have businesses in Northern Ireland been fully apprised of the impact that will have on them and on those receiving the goods? This is the deal—his deal.
The right hon. Lady’s parliamentary colleague, the hon. Member for Nottingham East (Mr Leslie), asked about arrangements on 1 November. We would only need to have different arrangements on 1 November—
I am answering the question. We can have a nice conversation outside, but I will take this opportunity to answer the question before the right hon. Lady comes back. The hon. Gentleman’s question related to events and provisions on 1 November. I note that the right hon. Lady is referring to the deal and yes, it is the case that those provisions would come into effect if we had the deal, but of course we will make sure that they are seamless.
Several hon. Members rose—
Operation Yellowhammer documents previously revealed that a no-deal Brexit would affect food provision, and that those on low incomes in the UK would be most affected. Food banks are increasingly concerned about the impact of a no-deal Brexit on their food supplies, so have the Government issued any guidance or undertaken any preparation with food bank providers to ensure that their operations are not severely affected by no deal?
As it happens, the hon. Gentleman’s question gives me an opportunity to pay particular tribute to the hon. Member for Leicester West (Liz Kendall), who came to see me with a representative selection of organisations that run food banks. We had a good conversation about making sure that we can continue to support them in the future come what may. I am absolutely confident that the successful operation of food banks and all the wonderful people who work in them will not be affected by Brexit, whether it is deal or no deal.
With or without a deal, my right hon. Friend is aware of the fact that I believe there is woefully inadequate provision for the healthcare and pensions of expat UK citizens. I would like to be able to support the withdrawal Bill. Can he give me an assurance that this matter is under active and positive consideration?
It absolutely is. If we secure the withdrawal agreement Bill, there will be absolutely no need for us to worry about those particular circumstances, but for the reasons that I outlined earlier, we are negotiating hard with individual EU member states. I particularly commend Spain, where we have the largest number of UK expats, for making sure that there will be fully reciprocal arrangements on healthcare.
Will the Minister confirm that, in a no-deal scenario, no patient will have their treatment delayed or cancelled if they are dependent on radioisotopes?
Yes, and there is a specific arrangement to ensure that radioisotopes can be flown into East Midlands airport.
May I offer my sympathy to my right hon. Friend and other colleagues who were subjected to the thuggish behaviour on Saturday? Does he agree that the sooner this deal is done, the better, and that there should be no more delay?
I completely agree, and I am very grateful to my hon. Friend for everything that he says. He is a model of civility inside and outside this House, and I do hope that the standard of debate across the country can match the standard of debate that he always indulges in.
In one response, the right hon. Gentleman confirmed that there is, as yet, no agreement on reciprocal security arrangements for the data that we need to make sure that we can keep our borders safe. What is the Secretary of State doing to make sure that we will still be safe on 1 November?
The first thing, of course, is promoting a deal. The second thing to say is that there are tried and tested alternatives that we can use to make sure that we keep people in this country safe. The third thing is that, once we leave the European Union, there are a number of things that we can do, which the Home Secretary has outlined, that will allow us to be even safer. There are steps that the Border Force can take, steps that we can take on the border to no longer recognise ID cards, and steps that we can take to increase the criminality threshold for entry.
Hampshire’s local resilience forum is playing a key role in preparations for Brexit. Will my right hon. Friend ensure that it has the right resources and support to make a success of those preparations?
My hon. Friend is right. Hampshire LRF attended a meeting of the EU Exit Operations Committee last week, and I was incredibly impressed with the work that it is doing. We will continue to work closely with it.
If this House passes the Government’s withdrawal Bill with amendments, will the Government take those amendments back to the EU and seek its agreement to them, or in that situation will they simply try to pursue a no-deal Brexit?
I think the EU has been very clear that we need to ratify the treaty as agreed. To be fair to the other 27 EU member states, they have laboured long and hard to come to an agreement. If this House were now to say that it did not like the agreement, I think that their patience would be sorely tested.
Will my right hon. Friend update the House on the discussions that he has had with European leaders and what their view is as to another extension?
Earlier today, I was talking to Ministers in the Irish Government, and I have been talking to representatives of other EU member states over the course of the past week or so. They are clear: they do not want an extension. They want this done by 31 October. There are many people in the House who admire other European nations, but, on this occasion, they seem curiously deaf to the plea, which is a unified plea across the EU, to get this deal done.
The Secretary of State has been a long-term supporter of the Union and of Northern Ireland. He must know in his heart of hearts that this is actually driving a wedge between Northern Ireland and Great Britain. The issue of unfettered access to goods for small businesses is going to absolutely destroy that relationship. Can he really say that this is actually good for Northern Ireland?
I am very grateful to the hon. Lady for her comments. Having worked in Northern Ireland and having so many friends in Northern Ireland, I can absolutely say that its position in the Union is very dear to me, and therefore it is of concern to me that there are people in Northern Ireland, particularly within the Unionist community, who feel heartsore about what they perceive to be the consequences of this deal. In every hour of every day ahead I will be doing everything that I can to provide reassurance and to ensure that we can put provisions in place that will make sure that people in Northern Ireland appreciate that we love them and want them to stay.
The shadow Minister cites Make UK, but it is clear that endless extensions are hugely damaging to its members’ interests. Is my right hon. Friend aware of any major business or organisation that is calling for yet more delays?
Dr Sarah Wollaston (Totnes) (LD)
Very serious concerns have been raised by shellfisheries about no-deal preparations for their sector. The Secretary of State will know that they have to have an aquatic animal health certificate alongside a raft of other red tape for each consignment. Mussel fishermen in my constituency are very concerned about that, because they have been told that they will need to give five days’ notice, but their customers do not order with five days’ notice. Will he ensure that officials from the Department for Environment, Food and Rural Affairs will meet me and my constituents to ensure that the problems that are arising will be addressed?
The Government’s Yellowhammer papers, as we have already heard, state that low-income groups will be disproportionately affected by any price rises in food and fuel. What does the Minister suggest I say to the families on low incomes in my constituency of Newport West to reassure them that their plight has been recognised, and what will the Government do to mitigate this disproportionate impact on poorer families across the UK?
I am grateful to the hon. Lady for raising this issue. Across this House, we are concerned, obviously, about the welfare of the most vulnerable in our own constituencies and across the country. I respectfully say to her that, when people say that they are worried about the consequences of no deal, as indeed I am, the thing to do is to support the deal, and I hope that she will.
I am very grateful to you, Mr Speaker, for calling me to speak. If the United Kingdom were to leave the European Union on 31 October, and on that date we still had no functioning Assembly at Stormont, what are the Government planning for the good governance of Northern Ireland? Will it, or will it not, be direct rule? It is a straightforward question, and I would very much appreciate a straight answer.
We want the Assembly to be up and running. We recognise that time is short. In those circumstances, we will talk to the Government of Ireland, but direct rule, which I know is a step that no one should take lightly, will be required in order to ensure that the Northern Ireland civil service gets the political and ministerial direction that it needs.
At 5 o’clock this evening, in the Public Accounts Committee, Jim Harra of Her Majesty’s Revenue and Customs informed the Committee, when asked about the transfer of goods from Northern Ireland to GB under the agreement the Chancellor is proposing, that
“an export declaration is required for all movement of all goods from Northern Ireland to GB”
in order to ensure that the EU’s obligations are properly discharged. The Chancellor says that he holds the Union very dear. These arrangements make the Union very expensive.
We will be doing everything we can to ensure that there is unfettered access for goods from Northern Ireland into the rest of the United Kingdom. Deal or no deal, we will also be bringing forward additional steps to ensure that businesses in Northern Ireland are supported and protected come what may.
I have been contacted by Northern Ireland’s fishing sector, which does not want this Government deal, so can the Minister confirm that Northern Ireland’s fishing sector will have the same opportunities and freedom to fish as the fishing sectors of England, Scotland and Wales in the event of no deal?
Yes, absolutely. One of the benefits of leaving the European Union is being outside the common fisheries policy, and I know that the fishing interests that the hon. Gentleman represents were and are looking forward to our leaving the European Union. Let me say again that it is the Government’s absolute intention to ensure that we provide all the financial and administrative support required by all of Northern Ireland’s businesses as we leave—whatever the circumstances. The whole enterprise of leaving the European Union is one that we took as one United Kingdom, and it is very important that we pay particular attention to representatives of Northern Ireland as we try to secure the best possible outcome for all our citizens.
(6 years, 6 months ago)
Ministerial CorrectionsThis morning, my right hon. Friend the Trade Secretary has published the temporary tariff regime, which will apply from 1 November. In all, it liberalises tariffs on 88% of goods entering the UK by value. It maintains a mixture of tariffs and quotas on 12% of goods, such as beef, lamb, pork, poultry and some dairy products, to support farms and producers that have historically been protected through high EU tariffs in the past. I should say that, as a result of cutting these tariffs, we should see a 15% reduction in the cost of honey from New Zealand, a 9% cut in the cost of grapes from South America and of course a 7% reduction in the cost of wine from Argentina.
[Official Report, 8 October 2019, Vol. 664, c. 1659.]
We in this Government have compromised. We in this Government are showing flexibility. We in this Government seek to leave without a deal, but faced with the delaying, disruptive and denying tactics of the Opposition we say, on behalf of the 17.4 million: enough, enough, enough—we need to leave.
[Official Report, 8 October 2019, Vol. 664, c. 1664.]
It is of course possible, for a host of reasons, that we might leave on 31 October without a deal, and it is prudent that this Government—and indeed the Scottish Government and the Welsh Assembly Government, led by Labour—are preparing for that, because that eventuality is a realisable and potential outcome. In the meantime, I am anxious to secure a deal. I argued that we should leave the European Union without a deal, but if it is impossible to leave the European Union without a deal, then, much though I regret it, we have to leave.
[Official Report, 8 October 2019, Vol. 664, c. 1667.]
Letter of correction from the Chancellor of the Duchy of Lancaster (Michael Gove):
Errors have been identified in my statement to the House.
The correct responses should have been:
This morning, my right hon. Friend the Trade Secretary has published the temporary tariff regime, which will apply from 1 November. In all, it liberalises tariffs on 88% of goods entering the UK by value. It maintains a mixture of tariffs and quotas on 12% of goods, such as beef, lamb, pork, poultry and some dairy products, to support farms and producers that have historically been protected through high EU tariffs in the past. I should say that, as a result of cutting these tariffs, the 17% tariff on honey from New Zealand, the 15% tariff on grapes from South America and the 7% tariff on wine from Argentina will all be reduced to zero.
We in this Government have compromised. We in this Government are showing flexibility. We in this Government seek to leave with a deal, but faced with the delaying, disruptive and denying tactics of the Opposition we say, on behalf of the 17.4 million: enough, enough, enough—we need to leave.
It is of course possible, for a host of reasons, that we might leave on 31 October without a deal, and it is prudent that this Government—and indeed the Scottish Government and the Welsh Assembly Government, led by Labour—are preparing for that, because that eventuality is a realisable and potential outcome. In the meantime, I am anxious to secure a deal. I argued that we should leave the European Union with a deal, but if it is impossible to leave the European Union with a deal, then, much though I regret it, we have to leave.
(6 years, 6 months ago)
Commons ChamberMr Speaker, with your permission I would like to make a statement on our preparations to leave the European Union on 31 October and the steps we are taking to get ready.
It is the strong desire of this Government to leave the EU with a deal, and our proposals to replace the backstop were published last week. I commend the Prime Minister and the Exit Secretary for their continued efforts to ensure that we can leave the EU with a withdrawal agreement in place. We have put forward a fair and reasonable compromise for all sides that respects the historic referendum result, and we hope that the EU will engage with us seriously. In setting out these proposals, we have moved. It is now time for the EU to move, too. If it does, there is still every chance that we can leave with a new deal. However, if the EU does not move, this Government are prepared to leave without a deal on the 31st. We must get Brexit done, so that the country can move on and focus on improving the NHS, cutting crime, helping families with the cost of living and further improving school standards.
In preparing for every eventuality, we are today publishing our “No-Deal Readiness Report”. This document is a comprehensive summary of the UK’s preparedness for leaving the EU without a deal. It sets out the preparations that the Government have made and how these have been intensified under the determined leadership of my right hon. Friend the Prime Minister, and it also outlines the steps that third-party organisations need to take to get ready.
The actions in this report reflect our top priority: ensuring that we maintain the smooth and efficient flow of goods and people from the UK into the EU, and vice versa. The actions are also aimed at ensuring that we continue to support citizens, upholding their rights and helping them to prepare for the changes ahead. My right hon. Friend the Chancellor, to prepare for Brexit, has doubled funding from £4 billion to £8 billion. We have published a significant volume of material relating to no-deal planning, including 750 pieces of guidance setting out the steps that businesses, traders and citizens should take to prepare. We have also published 31 country guides for all EU and European Free Trade Association states, setting out what UK nationals living there need to do to get ready for Brexit.
This morning, my right hon. Friend the Trade Secretary has published the temporary tariff regime, which will apply from 1 November. In all, it liberalises tariffs on 88% of goods entering the UK by value. It maintains a mixture of tariffs and quotas on 12% of goods, such as beef, lamb, pork, poultry and some dairy products, to support farms and producers that have historically been protected through high EU tariffs in the past. I should say that, as a result of cutting these tariffs, we should see a 15% reduction in the cost of honey from New Zealand, a 9% cut in the cost of grapes from South America and of course a 7% reduction in the cost of wine from Argentina.[Official Report, 16 October 2019, Vol. 666, c. 3MC.]
Businesses raised a number of points in response to the publication of the tariff schedule in March. The Government listened carefully to these representations and have made three specific changes as a result: we are reducing tariffs on heavy goods vehicles entering the UK; we are adjusting tariffs on bioethanol to retain support for UK producers; and we are also applying tariffs to additional clothing products to ensure that developing countries continue to have preferential access.
But it is not enough just for Government to get ready; we need businesses and citizens to get ready too. Even with every Government project complete and necessary IT systems in place, flow at the border would still be affected if hauliers do not have the right paper- work. If companies do not prepare, they will face challenges in trading their goods and services with the EU. While the Government can of course lobby EU member states to improve their offer to UK nationals who are living in their countries, we need individuals to act as well—to register for residency and to make arrangements for continued access to healthcare. For that reason, the Government have invested £100 million in one of the largest public information campaigns in peacetime. [Interruption.] I am glad hon. Members have noticed.
Through both mass market and targeted advertising, we are alerting business and citizens to the actions they need to take to get ready. We are also providing a further £108 million to support businesses in accessing the information and advice they need. My right hon. Friend the Business Secretary is overseeing a series of events with businesses around the country, designed to provide information on all the steps they need to take to get ready, including actions that will support the flow of trade through the short strait. My right hon. Friend the Health Secretary has also today established a trader readiness support unit for suppliers of medical products. This week, Her Majesty’s Revenue and Customs is writing to 180,000 businesses, setting out the full range of steps that they need to take in order to import and export with the EU after we leave.
Of course, in advance of 31 October, we will continue to use every means at our disposal to communicate to business the need to get ready. I want to pay particular tribute to the automotive, retail and transport sectors, including authorities at the port of Dover and at Calais, as well as Eurotunnel, for the extent of their Brexit preparations. On a recent visit to the west midlands, the heartland of our automotive industry, I was impressed by the steps that manufacturers are taking to prepare. Retail businesses have also made significant strides: Morrisons, for example, now reports it is “prepared for all eventualities” in the UK, while the Co-op says it is
“prepared for the worst case”.
Of course, risks remain and challenges for some businesses cannot be entirely mitigated, even with every possible preparation in place, but the UK economy is in a much better position to meet those risks and challenges, thanks to the efforts of these sectors and companies, and to my right hon. Friend the Chancellor.
It is also the case that the impact of no deal on both the UK and the EU will depend on decisions taken by the EU and its member states. On citizens’ rights, internal security, data protection and of course the vital position of Northern Ireland in the United Kingdom, we have taken decisions that will benefit UK nationals as well as EU citizens. I hope the EU will match the generosity and flexibility that we have shown.
Through the EU settlement scheme, we have ensured that every EU citizen resident here by 31 October can acquire a formal UK immigration status, protecting their right to live and work in the UK. To date, 1.7 million citizens have applied and 1.5 million have been granted a status. Those who have not yet applied have until the end of December 2020 to do so. So far, very few EU member states have made as generous an offer to UK nationals as the UK has made to EU citizens. We do not believe that citizens’ rights should be used as a bargaining chip in any scenario. EU citizens in the UK are our friends and family, and we want them to stay. We now hope that the EU extends the same hand of friendship towards UK nationals as we have to EU nationals.
At the same time, keeping our fellow citizens safe should be a priority. My right hon. Friend the Home Secretary has written to Commission Vice-President Frans Timmermans to ensure effective arrangements are in place on the exchange of passenger name record data, disconnection from Schengen information system II and working arrangements with Europol, as well as the transfer of law enforcement data. We hope the EU will respond positively, in the interests of the shared security of us all. We have also unilaterally ensured that personal data can continue to flow freely and legally from the UK to the EU and the European economic area. A swift adequacy decision from the EU would reciprocate this arrangement, providing legal certainty to EU entities and companies.
With respect to Northern Ireland, to avoid a hard border we have committed not to introduce any checks at the border between Northern Ireland and Ireland. The limited number of checks that do need to take place, due to international obligations, will all be carried out well away from the border and will only affect a very small number of businesses. The Irish Government and the EU have not yet set out how they will manage the Irish border if we leave without a deal. We urge them now to match our commitment.
Let me, finally, turn to the opportunities from Brexit as laid out in this report. For the first time in 50 years, the UK will have an independent trade policy and we will be able to take our own seat at the World Trade Organisation. We will be able to introduce a points-based immigration system that prioritises the skills that we need as a country. We will have autonomy over the rules governing our world-leading services sector, and we will continue our leading role in setting global standards for financial services. We can be a beacon for the world in setting progressive policies on farming, fishing and the wider environment. Outside the jurisdiction of the European Court of Justice, we will set our own rules, putting in place smarter, more responsive regulation.
Of course, no deal will bring challenges. I have been open about that today, as I have been in the past. It is not my preferred outcome, nor the Government’s. We want a good deal. Whatever challenges no deal may create in the short term—and they are significant—they can and will be overcome. Far worse than the disruption of no deal would be the damage to democracy caused by dishonouring the referendum result—17.4 million people voted to leave, many turning up to vote for the first time in their lives. They voted to ensure that the laws by which we are governed are set by the politicians in this place whom they elect. They voted for a fairer migration system that attracts the brightest and the best. They voted to end vast financial contributions to the EU budget, and instead invest in the people’s priorities such as the NHS and our brave police service. That is what the British people voted for, and that is what this Government will deliver. I commend this statement to the House.
The Prime Minister should be here. Talks with the EU are collapsing as we speak. The proposals that the Government introduced last week were never going to work, and instead of reacting to challenge by adapting them they are intent on collapsing the talks and engaging in a reckless blame game. It will be working people who pay the price. The Prime Minister should be here to account for his actions.
It is no good pretending that the proposals would work. That is simply not going to wash. You cannot take the UK and Northern Ireland out of the customs union and avoid customs checks. You cannot have customs checks without infrastructure in Northern Ireland. The Government know that, which is why they refuse to answer the very simple question—where will the checks take place? You cannot give a serious response to the EU’s concerns about protecting the integrity of the single market simply by saying, “We’ll put that question off until later.” You cannot be serious about upholding the Good Friday agreement while proposing what amounts to a veto for one party in Northern Ireland over the all-Ireland regulatory zone. Consent of all communities in Northern Ireland is at the heart of the Good Friday agreement, and the Government have ridden roughshod over that principle.
That is why the proposals were never going to work, but instead of responding to legitimate questions from the EU27 or in this House by actually answering them, the Government appear to be pulling the plug, descending into a reckless blame game, instead of putting the country first. Sources close to No. 10 say that a “deal is overwhelmingly unlikely”. Sources close to No. 10 say that it is “essentially impossible”. Sources close to No. 10 have begun blaming people—it is Parliament’s fault, it is the Opposition’s fault, it is the Benn Act, it is Germany, it is Ireland—absolutely defining the character of the Prime Minister, a man who never takes responsibility for his own actions.
The stark reality is that the Government introduced proposals that were designed to fail, and they still will not take responsibility for their own actions. Last night, there were even reports that the Government were threatening to withdraw security co-operation with the EU. That is an astonishing statement. If true, it is beneath contempt. Will the Minister take this opportunity to denounce those comments and confirm that that is not the Government’s position? Will he echo comments this morning by the Secretary of State for Northern Ireland, who said that
“withdrawing security co-operation with Ireland is unacceptable”
and was
“not in the interests of Northern Ireland or the union”?
I know from last week’s statement that instead of answering serious questions the Minister prefers to revert to pre-prepared attacks and gags, but today is not the day for those tricks. Can he be straight with the House? Is it the Government's official position to end negotiations with the EU, and to seek to leave on 31October without a deal? If not, will the Government either propose a different basis for negotiations with the EU, or make it clear that they will seek an immediate extension, as required under the Benn Act, on 19 October? The House and the country deserve a straight answer.
I appreciate that the Minister speaks as if he is giving a statement or a reassuring bedtime story about preparations for no deal, but I remind the House that he used the same tone last week at the Dispatch box when he said:
“The automotive sector…confirmed that it was ready. The retail sector has confirmed that it is ready”.—[Official Report, 25 September 2019; Vol. 664, c. 722.]
As he knows, while we were in the Chamber debating that, it drew a furious response. Within hours, the British Retail Consortium issued a rebuttal, stating:
“It is impossible to completely mitigate the significant disruption which would be caused by no deal.”
The Society of Motor Manufacturers and Traders did likewise within hours in response to what the Minister said:
“A no deal Brexit would have an immediate and devastating impact on the industry, undermining competitiveness and causing irreversible and severe damage.”
That was only hours after the Minister said that those sectors were ready. What the Minister tells the House in his reassuring tones and what businesses say are two different things, and he knows it. This is no longer a time for games.
The reality is that no deal would be a disaster for the economy and for businesses. That is underlined by today’s figures from Her Majesty’s Revenue and Customs, which estimates additional costs of £15 billion a year for businesses to comply with customs arrangements. The Institute for Fiscal Studies said today that no deal would result in borrowing rising to £100 billion, debt rising to 90% of national income, and growth flatlining. That is why it was essential that the House passed the Benn Act, which was intended as an insurance policy. We did so because we feared that the Government were more focused on delivering no deal than on doing the hard work needed to find a deal. It is clearer now than ever that the Act will be needed.
I am grateful to the shadow Brexit Secretary for his questions. First, he asked where the Prime Minister was. The Prime Minister is talking to our EU partners, attempting to secure a good deal, and he is doing so with the full-hearted support of everyone on the Government Benches. The question that many people will be asking outside the House is why, if the right hon. and learned Member for Holborn and St Pancras (Keir Starmer) says that he is anxious for a deal, he declined to support one on the three opportunities he had to do so. If he wants to be taken seriously as an advocate of compromise and a deal why, in cross-party talks in which we both took part, did he attempt to erect an obstacle at every turn to consensus across the House? That is the conclusion that people will draw.
There is another conclusion that people will draw. The no-deal report was made public three hours before the right hon. and learned Gentleman began asking questions. Having had time to absorb 156 pages, he did not have a single question about no-deal preparation; not a single point to make about how any sector could be better prepared; not a single suggestion, query or contribution about how we can ensure that British business is in a robust position. There was just a series of questions that we have come to expect from him about politics, rather than policy; about positioning, rather than practicalities.
The right hon. and learned Gentleman asked about customs checks in Northern Ireland. He knows—it has been made clear—that those customs checks can take place away from the border, at the manufacturer or other distribution sites. He also asked whether our proposals were serious about maintaining the integrity of the single market. They allow the EU to maintain the integrity of the single market, but is he serious about maintaining the integrity of the United Kingdom, because he and his party are more than willing to see a customs border erected in the Irish sea? We would be the only sovereign nation in the world with such a customs border, but he is more than prepared to dance to the EU’s tune, rather than standing up for the UK.
That is the spirit in which the Benn Act was passed. That Act signals to the EU that there are people in Parliament who do not want to conclude a deal, who do not want to leave by 31 October and who want to delay. Indeed, the right hon. and learned Gentleman is one of them. He has had every opportunity to engage meaningfully with Government, not just on the deal but on no-deal preparations.
When I last spoke to the House, on 25 September—the right hon. and learned Gentleman referred to my statement then—I invited any MP in this House to come to the Cabinet Office and the Department for Exiting the European Union to discuss a deal and our no-deal preparations. Only one Opposition MP, the hon. Member for Leicester West (Liz Kendall), accepted that invitation. Oh sorry—and the hon. Member for North Down (Lady Hermon). Two Opposition MPs. That is the measure of the seriousness with which the Labour party, the SNP and all the Opposition parties take our Brexit negotiations: an open offer, an invitation, to come and talk rejected hands down.
Is there any surprise? The right hon. and learned Gentleman in 2017 said of the referendum:
“We’ve had a decision and we respect that decision.”
He also said that the Labour party cannot spend all its time trying to “rub out yesterday” and not accept a result it is honour-bound to respect. As I mentioned earlier, after voting against the deal three times, he rejected the opportunity to come to a consensus between the Front Benches to get a deal through.
We in this Government have compromised. We in this Government are showing flexibility. We in this Government seek to leave without a deal, but faced with the delaying, disruptive and denying tactics of the Opposition we say, on behalf of the 17.4 million: enough, enough, enough—we need to leave.[Official Report, 16 October 2019, Vol. 666, c. 3MC.]
When Mrs Merkel says that either the UK or Northern Ireland have to stay in the customs union, is she speaking for the EU following consultation with the other 25, or is she just making it up and assuming they will go along with her totally unrealistic and inflexible view?
I do not know what the contents of the telephone call between the Prime Minister and the Bundeskanzlerin were earlier today, but we remain committed to working with the German Government and other EU Governments to find a deal. I am sure we can find a way through.
It saddens me that in the middle of this political crisis what we have is a pathetic masquerade from this Government pretending that they are competently arranging our departure from the European Union, when in fact everyone knows that there is no agreement as to how that departure will take place and that without an agreement it is simply not possible to plan in a proper way how it would take place. The responsibility for that is entirely of the Government’s own making: a mixture of their bellicose intransigence in their negotiations with our European partners and their arrogant contempt in trying to establish a political majority in this Chamber, and using the Brexit vote for their own narrow political ends.
Now the Government are in a situation where the only thing they can possibly do is contemplate crashing out of the EU without a deal. I have to remind the Chancellor of the Duchy of Lancaster that that approach would be illegal, because we have passed a law to say that we will not leave the European Union with no deal. I therefore want to ask him: why is he preparing this document, which is called the “No-Deal Readiness Report”? Perhaps it should be called “Preparedness for Breaking the Law” since that is essentially the course on which he is now engaged. Why is he preparing this, rather than trying to come back to this House properly with proposals we can debate on the negotiations they are having with the European Union? To my eyes, and to those of many colleagues, it looks as if the Government are not in the least bit serious about getting a deal at all, but are in fact engaging in gesture politics, deliberately setting conditions they know cannot be met in order to come back here and try to blame everybody but themselves for the consequences.
I have two specific questions relating to the statement. The Opposition spokesman referred to the IFS report, a damning report that came out this morning. It tears away all credibility for there being an economic case for Brexit. The IFS is saying that the difference between asking for an extension and considering this issue further, or crashing out with a no deal in three weeks’ time, is 4% of GDP over the next three years. I invite the Minister to tell us whether this now means that, as we complete the first decade of Tory austerity, he and his Government are preparing for a second decade, because that is surely the consequence of the course they are on.
Finally, may I ask about the status of EU nationals? The Minister makes much of this, saying that everything is rosy in the garden. The truth is that most of the 1.5 million people he refers to as having some status have got what is called pre-settled status. It is not at all sure that they are going to get settled status. If he genuinely believes, and if it is the Government’s policy, that European nationals living in this country should not suffer any disbenefit to their rights as a result of Brexit, will he commit now to let each and every one of them have a permanent right to remain in this country?
I am very grateful to the hon. Gentleman for his questions. On the first question about the IFS report, we respectfully disagree with some, not all, of its conclusions. An extension would only generate further uncertainty. Not only would that extension involve us continuing to pay money into the European Union, but the uncertainty would mean that the investment decisions that business wants to make would still be put on pause. Business leaders, including many of those who backed remain such as the founder of Carphone Warehouse, now argue that we need to leave, deal or no deal, in order to have the certainty on which to plan for the future. That is what business wants overwhelmingly: to leave with a deal, but at least to ensure that we have certainty.
The hon. Gentleman asked about EU nationals, and he makes a very fair point. The majority of those who have been granted status have been granted settled status. Pre-settled status is for those people who have not been in the country, or cannot demonstrate that they have been in the country, for five years. Once they have been here for five years, however, they move automatically and smoothly to settled status. The number of people who have applied for status is increasing every day. It is also the case that our offer is significantly more generous than that for all save a tiny number of EU member states.
Those were the serious questions that the hon. Gentleman asked. I know that he used to be the proprietor of a comedy club in Scotland. I felt he was trying his hand at some Dadaist and surrealist comedy when he accused my party of trying to establish a majority for political purposes in the House of Commons. That is Scottish National party policy: trying to establish a bogus, broken-backed majority with Jeremy Corbyn as Prime Minister for blatantly political purposes. As for using Brexit for our own ends, it is the Scottish National party that has been attempting to weaponise this argument to push its separatist and sectarian agenda. As for gesture politics, that is the hallmark and stock-in-trade of the SNP. I am afraid the hon. Gentleman was guilty of a psychological phenomenon known as projection, which is accusing your opponents of the sins of which you yourself are guilty.
I thank my right hon. Friend for his statement. I am sure that the 3 million EU citizens who live in our country will very much welcome that their rights to health, education and welfare are being fully protected in the event of no deal. Does he have any hope of being able to secure similar rights for British nationals who are living, working and studying in EU countries, particularly those who may need to secure healthcare benefits?
My right hon. Friend makes a very, very good point. The picture across member states varies. Some member states, Spain in particular, have done an enormous amount. Of course, Spain is the country that has the highest number of UK nationals living abroad. I also have to commend the Government of Denmark for the approach they have taken. We are working with EU member states to ensure that there is access to reciprocal healthcare. We are also ensuring that UK citizens abroad continue to have access to pension uprating and the welfare benefits to which they are entitled. I hope that more EU member states will improve the offer to UK nationals.
Notwithstanding the Chancellor of the Duchy of Lancaster’s beguiling manner at the Dispatch Box, his statement today bears only a passing relationship to reality. No. 10 is briefing that the talks are going nowhere. He knows that if that remains the case, the Prime Minister will be under a legal obligation to write to apply for an extension which, if granted by the European Union, will mean that we will not be leaving the European Union without a deal on 31 October. The right hon. Gentleman wrote in March this year:
“We didn’t vote to leave without a deal.”
Why is he now advocating on behalf of a Government policy that he himself has admitted there is no mandate for?
I am grateful, as ever, for the thoughtful tone in which the right hon. Gentleman asks his questions. I am also grateful for the opportunity, which I hope I will have, to appear in front of his Committee to discuss in detail some of the provisions within the document. We take a different view on the Act that bears his name. I think it weakens the UK Government’s position. He in all conscience believes that it strengthens the UK’s position, but we disagree on that. It is of course possible, for a host of reasons, that we might leave on 31 October without a deal, and it is prudent that this Government—and indeed the Scottish Government and the Welsh Assembly Government, led by Labour—are preparing for that, because that eventuality is a realisable and potential outcome. In the meantime, I am anxious to secure a deal. I argued that we should leave the European Union without a deal, but if it is impossible to leave the European Union without a deal, then, much though I regret it, we have to leave.[Official Report, 16 October 2019, Vol. 666, c. 4MC.]
Several hon. Members rose—
You will recall, Mr Speaker, that some weeks ago you afforded me the opportunity to ask the Prime Minister what provision would be made for pension uprating, healthcare and benefits for expat UK citizens. My letter seeking a clarification of the broad-brush answer awaits a response, but I have had the opportunity to read the no-deal readiness report, and not one word in it offers long-term comfort to the thousands of now increasingly frightened and elderly UK citizens living within the rest of the EU. This is not a matter of reciprocal arrangements; it is within the clear gift of the United Kingdom Government to look after our own people. Will my right hon. Friend give a clear undertaking that that will be done?
I am grateful to my right hon. Friend for raising that issue. He will be aware that on page 43 of the document, we point out:
“With regard to UK state pensions paid to eligible UK state pension recipients living in Member States, in the event of leaving without a deal the UK has now committed to uprate state pensions paid in the EU for a further three years”—
beyond the original guarantee—
until the end of March 2023”.
We have a commitment, of course, to keep this policy under review.
It is reported that a Downing Street adviser has threatened that the UK will withdraw security co-operation if Europe does not do what the Prime Minister wants. Does the right hon. Gentleman agree that given the common threats that we face—extremism, terrorism, trafficking and organised crime—this is extremely irresponsible and dangerous, and that there is no planet on which this is in our national interest? Whatever the Brexit plans, we need countries to work together, so will he condemn those threats from this Downing Street adviser? Will he agree that any adviser who makes such threats in public or private is not fit to hold any post in No. 10 Downing Street? Will he and the Prime Minister take some responsibility for removing anyone who pursues that course and argument from No. 10 Downing Street, because, frankly, when national security is at stake, we desperately need some advisers, some Ministers and a Prime Minister who are capable of behaving like grown-ups?
The right hon. Lady is right that it is vitally important that we maintain security co-operation with our European allies. It is the case that we co-operate with not just the other EU27 nations but nations outside the EU on the exchange of information by security and intelligence agencies to keep us safe. That will continue outside the EU. We will continue to co-operate with the Garda Siochana and other police forces to ensure that our citizens are kept safe and the citizenry in our neighbouring countries is kept safe. One thing that I respectfully say to the right hon. Lady—I know that she take these issues incredibly seriously—is that the Home Secretary has written to Frans Timmermans, who is the member of the EU Commission responsible for these issues, saying that we wish to continue co-operating in a number of areas, and the EU has said that it does not wish to continue co-operation. I absolutely respect the right hon. Lady’s commitment to our co-operation with the EU. It is the case that we want to co-operate with the EU more than it currently wants to co-operate with us.
I thank my right hon. Friend for reaffirming the Government’s preference for leaving with a deal—that, today, is an important commitment to many of us on the Government side of the House—but I draw his attention to page 17 of his report, where he says:
“On both the M20 and at Manston, the Government will deploy resources to establish whether drivers have the necessary border documentation prior to proceeding to their point of departure at the Port of Dover or Eurotunnel.”
May I plead—even at this possibly late stage—that some of the checking, which is essential, can be done before the lorries enter the last few miles of their journeys to the port of Dover or Eurotunnel? If we spread these checks around the country, they need not cause any pain to the local traffic system.
My right hon. Friend is absolutely right. The Secretary of State for Transport has ensured that across the United Kingdom, at service stations and other points on our motorway system where hauliers are likely to pause or pass, we are in a position to provide them not just with the information that they need to know whether they are compliant with EU rules, but with the opportunity—if they need to—to correct the paperwork that they have, or if they are not compliant, to turn back, because we want to do everything possible to ensure that non-compliant vehicles get nowhere near Kent for reasons of maintaining the flow at the border and safeguarding the interests of my right hon. Friend’s citizens and other Kent residents.
The business and local authority organisation representing Devon and Cornwall—the Heart of the South West local enterprise partnership—wrote to the right hon. Gentleman last week telling him that with the wholly inadequate mitigation measures that are already in place, a no-deal Brexit would be as bad for our region as foot and mouth, except that it will go on for a lot longer, will it not? Is the organisation wrong?
Yes, I think it is, but it is also important that if we put to one side the rhetoric that organisations often use to try to secure attention and look in a granular way—[Interruption.]
Thank you, Mr Speaker. If we put aside the rhetoric for one moment, there are granular issues that local resilience forums and local enterprise partnerships address. I would be very grateful to address those and, indeed, to meet the right hon. Gentleman if there are specific questions that he wants to put and specific easements that he wants to see put in place.
I thank my right hon. Friend for his courteous and helpful statement, but I ask the Chancellor of the Duchy of Lancaster and, indeed, former Government Chief Whip: is he proud of the tone and character of quasi-official briefings and language coming out of No. 10? Does he think it is helpful?
My right hon. Friend was kind enough to say that I was courteous; I also thank him for the courtesy and thoughtfulness with which he addresses every issue in this House. He is right: it is important for all of us in public life, whether we are appearing here at the Dispatch Box or working for Government Ministers or Opposition figures, to use language that shows our respect for differing points of view, even as we hold robustly to our own.
This is Brexit reality: £8 billion of taxpayers’ money—the equivalent of 400 brand spanking new state-of-the-art schools—being spent on something that people did not vote for and were not promised. We have just heard about the cost to business—£15 billion—and that is before we have sorted out the tariffs. The leave campaign, of which the right hon. Gentleman was a proud leader, promised that we would not leave the European Union until we had secured a good deal. We were told that it was going to be so easy that it would take somewhere in the matter of a few days. Three and a half years on, the reason why we have not left the EU is that the simple truth is that whichever way we do it, it will harm our economy and cut jobs and the future prosperity of our constituents. He talks about the 17 million people who swallowed many of the falsehoods and fake promises that were made by him and others, forgetting the 29 million who did not vote for us to leave the EU. Is not the only way out of this crisis now to put this matter back to the British people by way of a confirmatory referendum—at last, a people’s vote?
I welcome the publication of the 31 country guides for UK nationals in other EU and EEA countries. I will ask my right hon. Friend a question that I asked our hon. Friend the Member for Worcester (Mr Walker) when he was working on no-deal preparations: is it possible to publish the preparations done by those countries all in the same place so that we can compare countries such as Spain and Denmark, which are doing the right thing for our nationals, with those that perhaps are not?
My right hon. Friend makes a characteristically original, helpful and constructive idea. As well as the individual country guides, we should also publish a guide that allows for the comparisons of the kind he mentions.
Page 104 of the document says that the agricultural support will be continued at the current level until the end of this Parliament. Given that the Chancellor of the Duchy of Lancaster wants an election before Christmas, this is possibly the emptiest promise in the whole document. It is no wonder that the National Farmers Union described the Government’s plans as “catastrophic”. He knows that hill farmers will face 48% tariffs on lamb exports. He has a salary of £140,000 a year. They earn £14,000. How can he stand there and behave as if this is not a serious, critical, existential problem?
I am grateful to the hon. Lady for making those points about hill farmers, whom she represents with such energy and passion. She is right—I have never shied away from this fact—that if we leave without a deal some sectors of our economy will face bigger challenges than others. Sheep farmers, along with the Northern Ireland dairy sector, are perhaps two of the sectors most likely to be most adversely affected. We take very seriously our responsibilities towards those who rear and grow the food on which we depend, and that is why my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs has the necessary comprehensive support package to help anyone who may be adversely affected.
Several hon. Members rose—
My hon. Friend is right. As I mentioned earlier, some member states have been more generous than others. We respect the political constraints under which some Governments operate, but we want to work with them to guarantee the position of UK nationals.
Ministers recognise that the key to the level of chaos at Dover after a no-deal Brexit is the number of non-compliant trucks arriving without customs documents. In June, HMRC estimated that number to be at least 20%, or 2,000 a day. What is HMRC’s current estimate?
We are currently revising those estimates, and we hope to publish that revision. One of the key things is that the HMRC calculation of which companies will be ready depends on translating data it has on the amount of goods exported by value into data on the amount exported by volume, and as I am sure the right hon. Gentleman will be aware, that is not an easy calculation to robustly underpin.
I congratulate my right hon. Friend on this work. There is no incompatibility between being well prepared for no deal and working hard for a deal. Does he share my surprise and disappointment that the Irish Government appear to be preparing to carry out customs checks away from the border in a no-deal scenario but appear less willing to talk about customs checks away from the border in a deal scenario?
I thank my right hon. Friend for the enormous amount of work he did when he was Secretary of State for Transport to prepare us for leaving without a deal and the opportunities of life after Brexit. He worked incredibly hard with tremendous focus, passion and energy, and we in this country are all better off for his service in government. I want to put that on the record and underline my thanks to him. He is absolutely right as well that, while of course we respect the sovereignty of the EU and the Irish Government’s position, it is in the Irish Government’s interests to avoid there being infrastructure near the border by collaborating and co-operating with us to secure a deal.
This so-called no-deal readiness report is no such thing. It does not reflect the readiness of businesses in Newcastle for the devastating impact of a no-deal Brexit, it does not talk about currency fluctuations or how many businesses have got their documentation for imports and exports, and most importantly it does not talk about how many jobs will be lost. How many jobs will be lost in Newcastle?
Businesses in Newcastle and the north-east, and more broadly, are at various different states of readiness. Some companies that are fully ready see opportunities to grow from the moment we leave. I hope we can work together on making sure that all businesses recognise what they need to do. That is why HMRC and others are, for example, automatically authorising EORI—economic operator registration and identification—numbers and making it easier for people to take advantage of transitional simplified procedures.
Does my right hon. Friend recognise that there will be dismay today among the UK oil refining sector at the Government’s announcement of their no-deal tariff plans, which remove the level playing field for its trade with the EU? How do the Government plan to support these important strategic assets for the country?
My right hon. Friend makes a very good point. It was important in looking at our tariffs that we did everything possible to ensure that prices remained low for consumers and industry, but there are bespoke arrangements we can put in place to support our refineries, which do such an important job.
The Prime Minister and his Government will never be forgotten or forgiven for undermining the Belfast/Good Friday agreement, which has guaranteed peace and stability for all of us in the 21 years since it was signed. That agreement was endorsed in two referendums—one in Northern Ireland, one in the Republic of Ireland. Thousands upon thousands of people voted for the agreement in those two referendums. When will the Prime Minister feel honour-bound to respect those referendums?
My hon. Friend knows that I have enormous respect for her, not just as a parliamentarian but because of her distinguished career in public service in Northern Ireland. I do not believe that it is the Prime Minister’s intention for a moment to undermine the Belfast agreement. The hon. Lady and I have talked in and outside the Chamber about the importance of supporting all those who believe in maintaining the gains of peace over the last 21 years. I do not believe it is the Prime Minister’s intention to undermine it at all. Far from it: we believe that our proposal is consistent with the Belfast agreement, but I understand that there will be people of good conscience who disagree.
I draw the Chancellor of the Duchy of Lancaster back to the opening part of his statement, where he talked about the prospects of a deal. If the reports this morning are accurate about the call between the Prime Minister and the Chancellor of Germany, they are very worrying. It cannot be the case that we can only leave the EU by leaving part of our country behind. That will not just mean that we will not get a deal by 31 October; it will mean we will not be able to get a deal at all. If that is the position, can I urge him and his Cabinet colleagues to hold fast to our position and urge our European partners to look at the Prime Minister’s constructive proposals and negotiate them over the next couple of weeks so that we can get a deal? I am sure that all those on the Opposition Benches worried about a no deal would be in the Division Lobby supporting it.
My right hon. Friend makes a very important point. In our proposal we have said that the people of Northern Ireland will be subject to the European acquis as it applies to manufacturing goods and agri-foods. That causes some discomfort for some in Northern Ireland, but we cannot accept the idea of a customs border inside our own country. No country on earth would allow a customs border to be erected between its own people. If it is the case—I have not heard that it is —that any politician says that Northern Ireland must stay in the customs union come what may, they are saying either that we should generate dynamic forces that separate our country or that the UK can only leave the EU on terms that the EU dictates. That cannot be acceptable.
Several hon. Members rose—
Angela Smith (Penistone and Stocksbridge) (LD)
The document makes it clear that environmental standards will be not only maintained but enhanced. Yesterday, a leaked DEFRA paper, written by civil servants, said that the Department for International Trade would push DEFRA to lower UK standards governing animal welfare and pesticide residues. Does that not indicate that the document is not worth the paper it is written on?
We are taking steps to improve animal welfare standards when we leave the EU, not least by taking steps to end the live export of animals to Europe. We are also introducing legislation on everything from puppy farming to banning the use of primates as pets, which means that the UK, as a nation of animal lovers, will lead the world in animal welfare.
Does my right hon. Friend agree that the Benn Act, which was rushed through the House last month, actually makes getting a deal harder for the Government, and that if we are forced to delay, not only will it extend the uncertainty for our businesses, which want this matter resolved, but it will simply mean we are having this same discussion three weeks before the new deadline?
My hon. Friend is absolutely right. I know that there were good people who voted for the right hon. Gentleman’s Act thinking that it would help the country, and I do not cast any aspersions on their motivation, but let us look at the consequences. The consequences are that it is more difficult to secure a deal, and as a result I hope that all those who voted for the Act—and I respect their motivation—reflect on the position in which we now find ourselves.
As 31 October approaches, may I ask when the Government will deliver on their promise to put in place a UK version of the current EU steel safeguards?
Page 49 of the document states:
“The Government has permitted EU airlines to continue to fly to and from the UK until 24 October 2020”.
How does the Minister envisage the situation after that, given the point that he has rightly made about business certainty, and what is the position regarding new routes that may be opened up during that time?
I am confident that we will make progress on aviation, but I understand its importance to my hon. Friend and his constituents.
Figures from the Institute for Fiscal Studies show that after 10 years of austerity we are back to square one, with no discernible global financial crisis to explain the Government’s incompetent handling of the finances. Would any other Government whose finances were in that state consider a no-deal Brexit?
Business takes a variety of views on Brexit, and indeed on a no-deal Brexit, but I have yet to meet a single business man, woman or organisation that thinks that a no-deal Brexit would be worse than a Jeremy Corbyn Government.
According to the feedback from local businesses at a business event that I held in my constituency, the delay created by Opposition Members who are refusing to back the deal that the Government are negotiating is more damaging than the current state of affairs. Does my right hon. Friend agree with that?
Absolutely. We could have been out of the European Union with a deal if Opposition Members had backed the Prime Minister, Theresa May, in her efforts.
Mr Speaker
Order. All these references to named individuals are quite improper. The right hon. Gentleman no doubt luxuriated in the lather of the Oxford Union, in which he excelled, and he excels in this House other than in that respect. He should wash his mouth out, and should refer to Ministers not by name but by title, which he is well able to do.
The Minister is not being straight with us. He has the gall to claim that UK environmental standards post Brexit will be a beacon to the world, but in reality he is planning to cut those standards. The document claims that the carbon price will apply “at a similar level” to that under the EU emissions trading system, but page 64 makes it clear that the new carbon emissions price will be about half the EU price. If the Government are going to cut incentives to tackle the climate crisis, will they at least be honest about it?
This Government were one of the first to commit themselves to net zero by 2050, and we are taking all the appropriate steps to ensure that we shift towards renewables and reduce emissions.
Would it not be better for my farming constituents today if the Government would listen to the concerns of Minette Batters of the National Farmers Union about the tariff regime resulting from no deal, rather than allowing their advisers to blame the EU, blame everyone else, and create new barriers to prevent a deal that the tone of last week was so determined to secure?
My right hon. Friend is absolutely right: Minette Batters is a powerful and effective advocate for farmers in the UK, and she too is right. I know from my previous job, and from my role as a constituency MP, that the sector of our economy that faces some of the biggest challenges in the event of no deal is agriculture, and within that there are particular sectors that face particularly stringent challenges. I think it important that the tariff regime that we published today provides protection for some particularly vulnerable sectors, but more needs to be done. As for my right hon. Friend’s broader point about tone, I believe that positivity and optimism are critical to ensuring that, whatever noises off there may be, we keep our eyes on the prize, which is a deal with the European Union.
May I urge the Minister just to pause and reflect on the deliberate dog-whistle briefing issued this morning by No. 10 against Angela Merkel, the German Chancellor, in respect of the phone call reported to have taken place between her and the Prime Minister? It has sparked a series of frankly racist attacks against the Germans, from Leave.EU and others. This is an extremely dangerous course for the Government to embark on, and I want to hear—right now—the Minister condemn and distance himself from it.
I am grateful to the hon. Gentleman for raising the matter. First, let me say that I was not in on that telephone call. Secondly, let me affirm that the Bundeskanzlerin and the Government of the Federal Republic are good friends of this country. I had the opportunity to speak at the German day of national unity event at the German embassy last week, when I affirmed our commitment to friendship and the respect that we have for the German people for their achievements since 1945 as a democracy that we can all admire. Let me take this opportunity, at the Dispatch Box, to dissociate myself entirely from any sort of racist or demeaning language towards Germany. The Germans are our friends and our allies, and Germany is a great country.
Mr Speaker
I must say to the Chancellor of the Duchy of Lancaster that my sense is that that statement will be very warmly welcomed across the House, but also by a great many people outside this place, whatever their view about Brexit. It is important that decorous language is used, and the right hon. Gentleman has just been an exponent of it.
I agree with my right hon. Friend. As someone who voted for a deal three times, I am pleased to hear that that is still the Government’s policy.
Many people will already have plans for travel beyond 31 October. Notwithstanding point 4 on page 41 of the document, and the answers that he gave my right hon. Friends the Members for Basingstoke (Mrs Miller) and for North Thanet (Sir Roger Gale), will the Minister say how many reciprocal healthcare deals have been signed, and how many memorandums of understanding are likely to be signed, before 31 October?
We have reciprocal healthcare agreements with a number of member states. Spain is the most prominent, but we are working through each of the member states. I will be sure to write to my hon. Friend informing him of not just the details of the arrangements that we have reached with every country, but the steps that we continue to take in order to ensure that our citizens’ rights are protected there.
The Government’s business readiness fund, which sets aside just £15 million to help businesses, will be more than washed away by the cost to business of—according to the Financial Times—an extra £15 billion, 1,000 times more. Is this not just another example of the Prime Minister’s attitude towards business?
The business readiness fund has been well subscribed by organisations such as the Institute of Directors and the Federation of Small Businesses, to make sure that businesses are prepared for life outside the EU.
The leave campaign made the position clear, and people voted for us to leave both the single market and the customs union. Yes, leaving the customs union means new customs procedures with the EU, but it also means that we have opportunities to strike new trade deals with other countries, and to be a champion for freer trade across the world. Freer trade reduces prices for consumers in this country, and also helps the developing world. I should have thought that supporting the poorest in this country, and supporting the poorest globally, would recommend itself to the Liberal Democrats.
What is the cash value of the support that my right hon. Friend plans to make available for agricultural and manufacturing businesses in the event of no deal, specifically in terms of the impact on them of new export tariffs in that scenario?
My hon. Friend has made a very good point. Not just tariffs—which will particularly affect some in the agricultural sector—but other events and other frictions could have an adverse effect on specific businesses and specific sectors. That is why my right hon. Friends the Chancellor of the Exchequer and the Business Secretary have Operation Kingfisher, which is a means of making sure that we can support any company that is fundamentally viable but experiences turbulence for a short period.
Over the years, I have become something of a Gove-watcher. Is it not a fact that, in his heart of hearts, the right hon. Gentleman really now knows that this country is being led to disaster by a man whom he neither likes nor trusts?
No, I do not take that view. The hon. Gentleman is an old friend, and I therefore take his comments in good part, but no: I admire the Prime Minister, and I know that what he is trying to do is what the Government are trying to do, which is to honour the votes of his constituents so that we can leave the EU.
Three million tonnes of the Republic of Ireland’s goods travel to and from the EU via the UK land bridge, and without a deal they will be liable for customs checks, tariffs and quotas. Does the Minister agree that, more than those of any other country, the best interests of the Republic will be served if the UK leaves the EU with a deal?
My hon. Friend and I both want to make sure that the Republic of Ireland is in the strongest possible position after we leave the European Union, and the best thing for the UK, for the Republic of Ireland and for the many interests that we share across these islands is to secure a deal.
The Prime Minister is trying to shift the UK away from EU rules on the environment, safety standards and workers’ rights in order to secure a trade deal with Donald Trump. Has the Prime Minister had any discussions with the Trades Union Congress or with any trade union, and have you had any yourself, Minister?
Both the hon. Gentleman and I have been trade union members. We have both been involved in industrial action and we both know how important it is to uphold workers’ rights. I have had the opportunity to meet not just the TUC but other trade unions. My own view is that workers’ protection matters and that we have higher standards of workers’ protection than the EU mandates, and that will continue.
Although this document shows the considerable work being done on the Chancellor of the Duchy of Lancaster’s watch, it none the less reinforces his stated view that there is no good day for a no-deal Brexit. If the Labour party agrees with him and me on that, is it not time, given that Opposition Members were all elected on a manifesto to respect the referendum, for them to say that they will avoid no deal by supporting the deal, and would that not in turn help the negotiations?
I think it would, and, to be fair, the attitude of EU member states and others towards the proposition that we have put forward would, I hope, be warmer and more flexible if they knew that it had support across the House. The hon. Members for Stoke-on-Trent Central (Gareth Snell) and for Stoke-on-Trent North (Ruth Smeeth) issued a cautious welcome to the deal, as did the hon. Member for Aberavon (Stephen Kinnock). If that were the view of those on the Opposition Front Bench, it would be better for the whole country.
May I pick up the point about this being a comprehensive summary? There are two sentences referencing border inspection posts, which will seriously impact our food and fish exports. There will be only nine, as I think the Secretary of State understands. That will lead not to hundreds of certain certificates being issued, but to tens or hundreds of thousands. Does he agree that we do not have the capacity in our local authorities or the vets to service that?
The hon. Gentleman makes an important point. The key thing is that we will be taking a continuity approach towards the flow of goods into this country. We will not be administering checks for the EU when EU businesses export to us. The EU will, of course, impose checks under its acquis, although the French authorities, for example, have ensured that the border inspection posts for shellfish will be in Boulogne-sur-Mer. That means that fish caught in Scotland on Tuesday can be on sale in France on Wednesday without any impairment.
Jeremy Lefroy (Stafford) (Con)
On page 71 we see a reference to transitional arrangements for financial services that need to be in place by 31 October. How many of them are in place?
Almost all. There are still one or two statutory instruments that need to be passed.
The Prime Minister assured me on Thursday that he would seek to engage with the Deputy Irish Prime Minister, Simon Coveney, over the Irish Government’s concerns about a minority in Northern Ireland potentially having a veto over the border arrangements. I was unable to get an update yesterday from the Under-Secretary of State for Exiting the European Union. Can the Chancellor of the Duchy of Lancaster provide us with an update on whether the Prime Minister has sought to have those discussion or not?
I know that my hon. Friend the Under-Secretary of State for Exiting the European Union will write to the hon. Gentleman. More broadly, one of the key things that the Prime Minister and others have said is that we need to secure consent in Northern Ireland for the arrangements in our proposals, but how we secure that consent is a matter for discussion.
My right hon. Friend will recall that two weeks ago I and other hon. Members raised our concerns about the no-deal preparations being done by the Scottish Government. Has he had a chance to speak to the Scottish Government about our concerns yet? If he has, can he say how much money that has been sent north has made its way to local authorities in Scotland that need to take relevant action?
The Scottish Government have this afternoon published their own no-deal preparations. I have scanned them in detail and I cannot see that money has gone to the local authorities most in need. A miserly £50,000 has gone to each local authority in Scotland. That is not enough to ensure that local authorities such as Aberdeenshire have the capacity to issue the export health certificates that the fishing industry needs. I am deeply worried that the Scottish Government, despite containing many good Ministers, are not passing on the money that we are giving to them for Scotland’s citizens.
Page 153 is about preventing terrorism, child abuse and criminal gangs. The document says that there will be a mutual loss of capability between the EU and the UK in the event of no deal. The right hon. Gentleman is not going to let that happen, is he?
That is why we have written to Frans Timmermans to ask him to extend access to the databases that we are currently allowed to access. So far, he has said no.
I welcome the Minister’s report and the detail that he has provided. I have a simple question for him. He knows that I have been campaigning for citizens’ rights. In the event of no deal on exit day, British citizens in the middle of treatment will receive treatment only for a further 12 months. Why can we not just provide healthcare costs for people suffering from terminal cancer or motor neurone disease, who, through no fault of their own, find themselves in this position?
My hon. Friend makes a good point. I will take it up with the Health Secretary to ensure that the support that we already give can be extended in precisely the cases that he mentions.
I entirely appreciate the force of the case that the right hon. Gentleman makes, but it is our judgment that we should not impose additional checks or tariffs on goods coming from Ireland into Northern Ireland.
I congratulate my right hon. Friend on his documents and on his crisp and effective chairmanship of the daily XO—EU exit operations—committees. I notice that he talks about the environmental safeguards in great detail. Does he think, therefore, that the current desecration of Cubbington Wood by HS2, despite the moratorium, might be better controlled after Brexit?
As one former Member of this House said to a foreign potentate, I admire my hon. Friend’s courage, his strength and his indefatigability in being able to insert HS2 into every question, and he knows my views on that matter.
We spoke in questions recently about pallets. I raise the issue again today because on page 113 of the recently published report the Government say that there must be compliance with ISPM 15—international standards for phytosanitary measure No. 15—to export into Europe, but on page 115 they suggest that compliance only “may” be needed. To help those trying to export on pallets that will be accepted, which is it?
It would be prudent to ensure that pallets are compliant, but we also point out that individual firms should contact the supplier or the Timber Packaging and Pallet Confederation—TIMCON—if they need more advice.
Without access to tens of thousands of seasonal workers, our soft fruit industry in Angus and across the UK will suffer. Will my right hon. Friend confirm that he recognises the importance of having a mechanism in place to ensure a smooth route for businesses to continue to function by having access to labour in a no-deal situation?
Absolutely, and it is important that we look at the operation of the seasonal agricultural workers scheme and, if necessary, expand the numbers available to people in the soft fruit industry, for which my hon. Friend is such a powerful advocate.
Several hon. Members rose—
Thank you, Mr Speaker. In the light of recent fake news from the Prime Minister about a shiny new hospital in Canterbury, which currently has no A&E or urgent treatment centres, can the Minister please guarantee that, with the possible chaos resulting from Operation Brock, my constituents will still be able to get to the William Harvey Hospital in Ashford for the urgent care that they desperately need?
I thank the hon. Lady for her question and underline your comments, Mr Speaker, about her amazing speech last week. We have been looking to ensure that we can accelerate the roadworks on junction 10A in order to ensure that access to the William Harvey for the hon. Lady’s constituents and others can be uninterrupted. I hope to be able to brief her and other Kent MPs on some of the other steps that we are taking in the next week.
By what date this month does the Secretary of State think it will be necessary to reach an agreement with the EU or notify the country, and in particular business, that there will be a no deal?
I hope we can make sufficient progress this week in order to be able to say at the EU Council that we have secured a deal. If we have not secured a deal, we will have to negotiate the legal framework that the House of Commons has put in place.
Does the fuel supply contingency programme mentioned on page 61 make special allowance for the predicted closure of two refineries, which was outlined in the Yellowhammer document? If not, why not? When will the Government tell us which two refineries they think are at risk?
There are six major refineries across the United Kingdom. There have been representations from the energy sector about our tariff regime. We stand ready—in particular, the Business Secretary stands ready—to support all our refineries and the vital work they do.
As the good people of Walsall North voted overwhelmingly to leave the EU, what role does my right hon. Friend think Walsall Council can play in ensuring that they are as prepared as they can be for Brexit on 31 October?
They should pay attention and do everything they are asked to by the outstanding Member of Parliament for Walsall North.
Mr Speaker
There will come a time when the right hon. Gentleman will want the hon. Gentleman’s vote. I do not know when that will be, but the time will come.
Mr Speaker
Ah, the right hon. Gentleman has a new ambition. It is percolating in my head.
First, may I indicate that, with your permission, Mr Speaker, I intend to raise a point of order at the end of this item of business about comments made by the Chancellor of the Duchy of Lancaster earlier that were deeply offensive to me and many others? However, given the damage that has been done to relationships between the United Kingdom and Germany by the deliberate, malicious and almost certainly inaccurate leaking of a private phone call between the two Heads of Government, will he, the next time he speaks to his very good friend the Minister for the Cabinet Office, ask how quickly we can be given a statement by the Cabinet Office that confirms that the culprit—there are only two possible suspects—has been identified and removed from No. 10 before they can do any more damage?