European Union (Withdrawal) Act 2018 (Exit Day) (Amendment) (No. 2) Regulations 2019

Steve Baker Excerpts
Monday 20th May 2019

(5 years, 6 months ago)

General Committees
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James Cleverly Portrait James Cleverly
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My hon. Friend makes a good point, which I will address. I will try to rattle through, because several specific points have been raised by hon. Members on both sides of the Committee, but predominantly on this side, which I wish to address and for which I have notes.

Parliament has been clear. It voted to extend article 50 beyond 29 March. Both Houses approved the statutory instrument that redefined the exit date in line with the initial extension to 12 April. Despite the Government’s opposition, Parliament supported and passed the Cooper-Letwin Act, formally known as the European Union (Withdrawal) Act 2019, which required the Government to seek a further extension to article 50. Parliament voted in favour of the Government’s motion to seek that further extension and, during the passage of the Cooper-Letwin Act, voted to ensure that any further statutory instrument required to fix the domestic statute book would be subject to the negative procedure. It cannot be said that the statutory instrument goes against the will of Parliament.

Nor can it be said that the Government are going beyond their remit. Seeking a further extension was not just the will of Parliament, but a legal requirement set out by the Cooper-Letwin Act. The Act required the Government to lay a motion to set out their intention to seek a further extension. The Government’s motion was laid on 9 April and approved by a majority of 420 to 110.

Steve Baker Portrait Mr Steve Baker (Wycombe) (Con)
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I will take this opportunity to congratulate the Minister on his appointment—it is a delight to see him in his place. Could he refresh my memory about whether the Cooper-Letwin Bill was introduced after the Prime Minister had chosen to proceed in that way?

James Cleverly Portrait James Cleverly
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I would have to refer to Hansard to make a decisive comment on that. I can only assume from the certainty with which my hon. Friend delivered that intervention that he knows the chronology. The main point is that the Prime Minister was required to act by an Act of Parliament, and as my hon. Friend the Member for Stone highlights, we all—and that includes the Government—have to act within the law.

The agreement reached with the European Council was for an extension until 31 October 2019, but with the important caveat—this was the point made by my hon. Friend the Member for Chelmsford—that it could be ended earlier if the withdrawal agreement is ratified prior to that date. That was agreed by the UK and the EU and the new date of 31 October 2019 was fixed in international law in the early hours of 11 April.

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James Cleverly Portrait James Cleverly
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With the greatest respect to Members, as I said at the start of my speech, my belief, having read through what is my speech rather than someone else’s notes, is that the points my hon. Friend brought up are addressed. If in the short time available I can reach the end of my speech, I am confident that those issues will be covered. If I am cut short, he might be left disappointed.

The Cooper-Letwin Act changed the procedure from affirmative to negative. That was in response to the tight timescales faced and Parliament’s desire that, following an extension, domestic legislation would be updated to avoid unnecessary and widespread confusion. My hon. Friend the Member for Stone highlights the pace of this process. Indeed, the timescales were tight. The extension of article 50 was agreed in the early hours of 11 April. At that point, exit day in our domestic law was still defined as 11 pm on 12 April. Although the agreement with the EU meant that we would remain a member state, if this SI had not come into effect before 11 pm on 12 April there would have been legal confusion.

Steve Baker Portrait Mr Baker
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Will the Minister allow me to intervene on that point?

James Cleverly Portrait James Cleverly
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I am very conscious of the fact that many of the points raised by Members are included in my speech, and if I keep taking interventions I will not be able to get to them. I know that my hon. Friend will be frustrated with this, but I will plough on.

Major changes to the domestic statute book reflecting our exit from the EU are due to take effect on exit day, which at that point was defined as 11 pm on 12 April. Those changes apply across a huge number of policy areas and are designed so that our statute book works when we leave the EU. Once the further extension of article 50 was agreed, we needed to amend the dates to reflect the new point at which EU treaties would cease to apply to the UK, and ensure the correct functioning of our domestic statute book.

The consequences of not changing the definition of exit day would be serious, and would be of benefit to no one. We estimate that tens of thousands of amendments to our domestic legislation will be made in the light of EU exit. Those include changes that relate to the sharing of information, reporting requirements placed on businesses and public institutions, and the role of the European Commission in issuing licences and certificates—those examples are from across the statute book. It is clear that unless exit day is correctly defined, there will be significant confusion and uncertainty for businesses and individuals, including the risk that firms stop trading to avoid legal breaches and given their uncertainty about new customs, excise and VAT regimes that may kick in.

I have slightly lost track of which interventions were shot at me from the Government Benches, but I believe that my hon. Friend the Member for Wycombe asked whether we can confirm that the UK must agree an extension. [Interruption.] In fact, no; it was my right hon. Friend the Member for Rayleigh and Wickford. Any extension needs to be agreed in the UK. The agreement of this House was taken to the EU and expressed by the Prime Minister the last time around, on 11 April. Something similar would have to be done for any future extension.

The SI defines exit day as 31 October 2019, in line with the European Council’s decision, and therefore in line with international law. Hon. Members will be aware that the extension can be terminated before that point if the withdrawal agreement is ratified at an earlier date. Although this SI simply reflects the decision on article 50 in domestic law, it is the Government’s main priority to leave the European Union as soon as possible. The Prime Minister has made it clear that the UK should leave the EU in an orderly way and without undue delay.

European Union (Withdrawal) (No. 5) Bill

Steve Baker Excerpts
Monday 8th April 2019

(5 years, 8 months ago)

Commons Chamber
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Hilary Benn Portrait Hilary Benn
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The Prime Minister will accept an extension because she has asked for one. It is the existence of this Bill that has led her, in advance of the Bill being approved by the House, to write to the President of the European Council seeking an extension, because twice, much to the unhappiness of certain Members on the Government side of the House, she has been faced with this choice: either to take the country over the edge of a no-deal cliff, or to apply for an extension.

The reason I think some Members are very cross about that—I accept that they are cross—is that on both occasions the Prime Minister, facing both this Bill and a revolt by her Ministers, decided to act in the national interest by making that application. I hope very much that on Wednesday the European Council will grant more time, because whatever one thinks about the Prime Minister’s deal, one thing is clear: a no-deal Brexit would be disastrous for our country. That is why I hope the House will vote for the Bill tonight.

Steve Baker Portrait Mr Steve Baker (Wycombe) (Con)
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May I begin by saying how pleased I was to learn, when my hon. Friend the Member for Stone (Sir William Cash) mentioned the European Union (Notification of Withdrawal) Act 2017, that so many Opposition Members voted for that Act on the basis that they took on trust the success of a Conservative Prime Minister? I am pleased that they have so much confidence in us. When they voted for that Act, they either did or did not know the terms of article 50. If they did know the terms, then they voted to leave the European Union potentially without a withdrawal agreement; and if they did not, then clearly they were ignorant of one of the most important matters of the moment. Perhaps instead they were just voting for short-term political expediency. In any event, it is not very credible for Members now to be panicking and seeking to overturn what they previously legislated for, with great care and over a considerable period of time.

I turn my attention to Lords amendment 5, which I find rather surprising, because it seeks to restore the prerogative to the Government, provided they seek a long extension. Of course, this House resoundingly defeated the Government on that very point. I am therefore very pleased that my hon. Friend the Member for Stone has tabled amendment (a) in lieu of Lords amendment 5, to rule out European elections. It states:

“No extension of the period under Article 50(3) of the Treaty on European Union may be agreed by the Prime Minister if as a result the United Kingdom would be required to prepare for or to hold elections to the European Parliament.”

This House united around what was known as the Brady amendment, to replace the backstop with alternative arrangements. I cannot think how many times I and other Members have tabled the so-called Malthouse compromise, to limit the implementation period, replace the backstop and, in the latest incarnation, get rid of the single customs territory. We have tried and tried to give the Government the way to get a deal.

Bernard Jenkin Portrait Sir Bernard Jenkin
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I am listening carefully to what my hon. Friend says about amendment (a) in lieu of Lords amendment 5. Let us be absolutely clear. Is he saying that anyone who votes against amendment (a) will actually be voting for the United Kingdom to take part in the European elections, despite the fact that nearly every Member of this House voted for us to leave long before that date? It is a big reverse, is it not?

Steve Baker Portrait Mr Baker
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It is a big reverse. Do Opposition Members seriously think that we should participate in the European elections after so long? It is a ridiculous escapade. Members should have known what they were doing when they voted to trigger article 50—[Interruption.] I see the right hon. Gentleman the Chair of the Exiting the European Union Committee looking quizzical and shaking his head, or perhaps nodding along.

Hilary Benn Portrait Hilary Benn
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I am listening.

Steve Baker Portrait Mr Baker
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I am delighted that he is, but I think he voted to notify the EU of our withdrawal. If he did, he voted to leave without an agreement.

The fundamental point of the amendments to Lords amendment 5 is that the time has come, after every effort that we have made to enable the Government to secure a withdrawal agreement to which this House could give its assent, to say enough is enough. The Government should reject Lords amendment 5, accept the amendment in lieu from my hon. Friend the Member for Stone and move heaven and earth to get out on Friday without a withdrawal agreement.

Ian Murray Portrait Ian Murray (Edinburgh South) (Lab)
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I start by congratulating my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper) and the right hon. Member for West Dorset (Sir Oliver Letwin) on bringing us this Bill. I had not intended to speak this evening, but I was slightly shocked by the speech from the hon. Member for Stone (Sir William Cash), who started by saying that everything we were doing was undemocratic and then proceeded to give us four or five clearly democratic examples that he was attempting to make undemocratic.

My right hon. Friend the Member for Leeds Central (Hilary Benn) wondered how it could be a democratic outrage, in the words of the hon. Member for Stone, to have both this House and the other place vote for a piece of legislation in the democratic fashion that we have used for many hundreds of years.

European Union (Withdrawal) (No. 5) Bill

Steve Baker Excerpts
Yvette Cooper Portrait Yvette Cooper
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Sadly, this is the consequence of us being nine days away from Brexit day. That is not a situation that any of us wanted to be in—to have the clock run down this far—with no agreement in place. The Prime Minister did not put any withdrawal agreement to Parliament until January, and it has been put back several times since then, so we have not had a clear plan. That is the situation we are in.

Steve Baker Portrait Mr Steve Baker (Wycombe) (Con)
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On a point of order, Sir Lindsay. It may help the House. I have just inquired in the Vote Office, and the correct amendment paper, the one that we should be looking at, is the one with 15 printed pages. There has been some confusion, which would explain the point of order from my hon. Friend the Member for Stone (Sir William Cash).

Lindsay Hoyle Portrait The Chairman
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That is correct.

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Oliver Letwin Portrait Sir Oliver Letwin
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I thought it might be productive to intervene on my hon. Friend’s remarks, with literally all of which I disagree profoundly. On this one point, I think it might be productive because there is a fact about this that he will see if he looks at the amendment paper. The Government have tabled new clause 13, which many of us feel is a very sensible proposal and whose acceptance we therefore recommend. It specifically provides for a negative resolution statutory instrument to be substituted for an affirmative resolution SI, in order that it could be made immediately upon being deposited, rather than awaiting the approval of the House. That could obviously be subject to revision later under the negative resolution prayer procedure, but we would all have to be a gang of lunatics not to keep the exit day in line with international law if, as a matter of fact and for better or worse, the Prime Minister had agreed a given date of exit.

Steve Baker Portrait Mr Baker
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Will my right hon. Friend give way on that point? [Laughter.]

Oliver Letwin Portrait Sir Oliver Letwin
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Alas, my hon. Friend the Member for Stone has the floor. There has been a discussion about all this, and the Government’s new clause 13 is a perfectly sensible way of solving the one serious point that he has raised.

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John Bercow Portrait Mr Speaker
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I note what the right hon. Gentleman has said. He speaks for himself and conceivably for others as well, and there are people who take a different view, but he has put it in a perfectly orderly way. There is, however, nothing disorderly about these proceedings. I absolutely understand his point of view, shared by his hon. Friend the Member for Stone (Sir William Cash) and many others, that this is not a procedure that should be followed, but it is not a disorderly procedure.

Steve Baker Portrait Mr Steve Baker (Wycombe) (Con)
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On a point of order, Mr Speaker. Of course this has been a quality debate, but an altogether too brief one. I know how their Lordships feel about ill-considered and briskly prepared legislation going up to their Lordships’ House in an inadequate state, as I am sure this Bill is, so I place on the record my fervent hope that their Lordships will examine this Bill line by line and explore every possibility for amendment of this legislation for as long as they think is necessary.

John Bercow Portrait Mr Speaker
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I note what the hon. Gentleman has said. I am sure that the other place will become aware of his words and will make its own judgment, as he rightly suggests.

EU Withdrawal Joint Committee: Oversight

Steve Baker Excerpts
Wednesday 20th March 2019

(5 years, 8 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Kwasi Kwarteng Portrait Kwasi Kwarteng
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I disagree with the hon. and learned Lady. The terms of the withdrawal agreement relate largely to the implementation period. I remind the House that during the implementation period, we will technically be a member state. [Interruption.] During the implementation period, that is the case. After that, the CJEU will have some role in interpreting EU law, but we will be outside its jurisdiction.

Steve Baker Portrait Mr Steve Baker (Wycombe) (Con)
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Further to the question asked by my right hon. Friend the Member for North Shropshire (Mr Paterson), and since we are treating of matters that are both controversial and complex, may I invite my hon. Friend to commit today—since he must, if he is going to do it—to lay letters and other papers in the House of Commons Library by the rise of the House tomorrow, setting out what the Government know the Committee shall be able to do and shall not be able to do, and the authority for that statement, so that we can all be perfectly clear on the scope and authority of the Committee, and the Government’s view?

Kwasi Kwarteng Portrait Kwasi Kwarteng
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The scope, the rules, the jurisdiction, if you like, and the powers of the Joint Committee are very ably set out in the withdrawal agreement. I suggest that my hon. Friend peruses those once again.

UK’s Withdrawal from the EU

Steve Baker Excerpts
Thursday 14th February 2019

(5 years, 10 months ago)

Commons Chamber
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John Bercow Portrait Mr Speaker
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A Member from Ealing who will be well known to colleagues—the hon. Member for Ealing North (Stephen Pound)—has just chuntered in the background that that is beyond even the Speaker’s power. Well, it is certainly beyond the Speaker’s power.

What the right hon. Member for Carshalton and Wallington (Tom Brake) has raised is an extremely important matter, but it is a matter of politics. The politics will play out—I use that term in a non-pejorative and neutral sense—in the days and weeks ahead, and we shall have to see where we get to. I think the right hon. Gentleman was mainly concerned, if I understand him correctly, to put his point on the record. I do not think there was really a question mark there, but if there was, I am not able to provide a definitive answer now. However, we will return to these matters ere long.

Steve Baker Portrait Mr Steve Baker (Wycombe) (Con)
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On a point of order, Mr Speaker. What we do know tonight is that there is a majority in this House for replacing the backstop with alternative arrangements and that that majority rests on what is known as the Malthouse compromise. Is there any way to put on the record that the Government should adopt that compromise and enjoy a majority for it?

John Bercow Portrait Mr Speaker
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The hon. Gentleman is a county colleague of mine, but that is a truly monstrous abuse of the point of order procedure, as the puckish grin on the face of the hon. Gentleman demonstrates he is perfectly well aware. He has made his own point and he has found his own salvation. The point was also made by colleagues of like mind to him in the course of the debate, but he has now given it a prominence with which I rather suspect he is satisfied. We will leave it there for now.

I hope there are no further points of order because there is an Arsenal match on television very soon—[Interruption.] But the Chair will always attend to his duties. Hon. Members need be in no doubt on that score.

Oral Answers to Questions

Steve Baker Excerpts
Thursday 25th October 2018

(6 years, 1 month ago)

Commons Chamber
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Dominic Raab Portrait Dominic Raab
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I always listen to the hon. Lady, who is thoughtful and passionate in her views. However, I think that a second referendum would create a huge amount of uncertainty, returning us to square one and eroding public trust in the system.

Steve Baker Portrait Mr Steve Baker (Wycombe) (Con)
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Has my right hon. Friend been able respectfully to persuade our negotiating partners that Northern Ireland is not some enclave of the character of those around the area of the Bodensee, for example, but an integral part of the United Kingdom that is not, in any circumstances, to be split off from our country?

Dominic Raab Portrait Dominic Raab
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My hon. Friend makes an important point. We have made the point that we would never accept any proposals that would threaten the integrity of the United Kingdom, whether constitutional or economic. We have also made the point that a lot of the proposals that we have seen would not be acceptable to many on the EU side, given the separatist pressures in places such as Corsica, Catalonia and other parts of Europe.

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Robin Walker Portrait Mr Walker
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The hon. Lady makes an excellent point. In our White Paper, we have set out a labour mobility framework that includes visa-free travel for tourists and short-term business visits. I think that that would address her constituents’ points.

Steve Baker Portrait Mr Steve Baker (Wycombe) (Con)
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Will the Government ensure that our contingency plans reflect what we know of our European partners’ contingency plans?

Chris Heaton-Harris Portrait The Parliamentary Under-Secretary of State for Exiting the European Union (Chris Heaton-Harris)
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I thank my hon. Friend for his work on no deal when he was the Minister, and the preparations that have been in place for more than two years. As he will know from his experience in the Department, we closely monitor what our European counterparts are saying. If he were to listen to our French counterparts at this point in time, he would be hearing noises about two-minute checks at the border, not longer. France is employing lots of customs guards to ensure the flow of goods and trade, and will increase the number of border posts at Calais.

EU Exit Negotiations

Steve Baker Excerpts
Tuesday 9th October 2018

(6 years, 2 months ago)

Commons Chamber
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Dominic Raab Portrait Dominic Raab
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No, I do not accept that sort of binary choice. The one thing we must all do in this House, as democrats, is respect the result of the referendum. We are seeking to achieve the win-win of retaining our strong trading and security links and co-operation with our EU partners and being free to not just take back control of our own laws but trade more liberally with the growth markets of the future, from Latin America to Asia.

Steve Baker Portrait Mr Steve Baker (Wycombe) (Con)
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Time and again, customs experts from a range of countries in the EU, including Holland and Ireland, tell us that a free trade agreement can be made to work across the Irish border using pragmatic arrangements. When will the Government take the key that has been handed to them in the prison of this negotiation and admit that we can leave on an FTA basis, which would make this a proper, independent country, able to control its domestic regulations as well as its tariffs, so that we can lead the world into a new era of free trade?

Dominic Raab Portrait Dominic Raab
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I respect my hon. Friend and, as ever, I pay tribute to the work he has done, but he will know, because he was in government—indeed, in DExEU—at the time, that while it may be theoretically possible for us to do that, we cannot do it and have a deal with the EU. The EU is not offering us a Canada or super-Canada FTA without our keeping to the commitment we made when he was in government in December to come up with a legally binding backstop. That is a shortcut to no deal. We have always said that we will be ready if that outcome is forced on us, but the optimum aim and objective that we are working towards is a good deal with the EU. We could not get that if we pursued what he suggests.

EU Withdrawal Agreement: Legislation

Steve Baker Excerpts
Tuesday 24th July 2018

(6 years, 4 months ago)

Commons Chamber
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John Bercow Portrait Mr Speaker
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Order. As expected, a very large number of Members are seeking to catch my eye. I would like to accommodate as many as I can, but I remind the House that there is a further ministerial statement to follow, another piece of business that may be short but is uncertain in length, and then a very heavily subscribed summer Adjournment debate. There is therefore a premium on brevity, now to be brilliantly exemplified by Mr Steve Baker.

Steve Baker Portrait Mr Steve Baker (Wycombe) (Con)
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The least worst of the negotiable mechanisms to deliver the implementation period was the one in the White Paper of repealing the European Communities Act 1972 but saving its effect with modifications to the end of the implementation process. Will the Secretary of State confirm that he is going to ask this Parliament—this House—to agree to that mechanism in the same vote that we are asked to sign up to the future relationship through that political statement?

Dominic Raab Portrait Dominic Raab
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I can assure my hon. Friend that that will all be part of the same process, and I am happy to work with him on the detail and substance, as we move forward.

Oral Answers to Questions

Steve Baker Excerpts
Thursday 19th July 2018

(6 years, 4 months ago)

Commons Chamber
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Steve Baker Portrait Mr Steve Baker (Wycombe) (Con)
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I congratulate my hon. Friend on his new position. There is absolutely no one whom I would rather see in his job at this time, and I wish him every possible success.

Papers that are available to my hon. Friend will show that as long ago as October, I was seeking to create a parliamentary moment to galvanise the whole Government to prepare not only for the unwanted contingency of no deal, but for all scenarios, including the end of the implementation period. Will he now use the collective agreement reached at Chequers to go out and galvanise the whole Government to deliver, in the knowledge that that is not something that the Department for Exiting the European Union can direct, and that it will require those at the very top of the Government to mobilise every Department?

Chris Heaton-Harris Portrait Chris Heaton-Harris
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I thank my hon. Friend for his question, and for leaving me an unbelievable quantity of reading to do because of the diligent way in which, as he rightly says, he prepared for every scenario.

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John Bercow Portrait Mr Speaker
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Colleagues are a rum lot, I must say! I was just about to call the hon. Member for Walsall North (Eddie Hughes) but he has beetled out of the Chamber, poor chap. Admittedly, he was not to know that I was going to call him, but had he stayed, I would have done, and I usually do. It is very odd. As for the hon. Member for Clacton (Giles Watling), we always savour his contributions but he has already spoken at topical questions so cannot do so again.

Steve Baker Portrait Mr Steve Baker (Wycombe) (Con)
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Given that HMRC makes available online the documentation for its computable general equilibrium model, will the Department follow suit so that the public can be objectively informed about the shortcomings of such models and so that the model can be fully scrutinised by interested external economists?

Dominic Raab Portrait Dominic Raab
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I thank my hon. Friend for the first in what I am sure will be a series of valuable and important forensic contributions. I shall take a good, long, hard look at the matter.

Future Relationship Between the UK and the EU

Steve Baker Excerpts
Wednesday 18th July 2018

(6 years, 5 months ago)

Commons Chamber
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Wera Hobhouse Portrait Wera Hobhouse (Bath) (LD)
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Will the Secretary of State give way?

Steve Baker Portrait Mr Steve Baker (Wycombe) (Con)
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Will my right hon. Friend give way?

Dominic Raab Portrait Dominic Raab
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May I make some progress? As a result of the further measures that we will be taking, more of the preparations will become public facing. It is important that we talk about that in order to reassure the public that it is the responsible thing to do.

Steve Baker Portrait Mr Baker
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I congratulate my right hon. Friend on taking up his new post. As he knows, I am well familiar with the work that has been done. He may have heard my question at PMQs earlier, but may I put to him what I put to the Prime Minister? When technical notices or any communications related to no deal are released, will he please ensure that they are shaped to ensure that they support the credibility and feasibility of our plans, not only to give comfort and reassurance to business, but to strengthen our negotiating position?

Dominic Raab Portrait Dominic Raab
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This is an opportune moment to pay tribute to my hon. Friend for all his work in the Department, particularly on no-deal planning. He makes an excellent point that will be at the forefront of my mind as we continue to step up our preparations.

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Steve Baker Portrait Mr Steve Baker (Wycombe) (Con)
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A little over a week ago, I appeared on TV and invited colleagues to take stock, so I hope that in this speech I will make some attempt to do that.

The first thing I should like to say is that I believe we should develop

“a special relationship with”

the European Union,

“aiming to establish an area of prosperity and good neighbourliness, founded on the values”

which we share

“and characterised by close and peaceful relations based on cooperation.”

Informed Members of the House will have spotted that in saying that I have transposed article 8 of the treaty on European Union. That should be our common goal.

What kind of character should this co-operation have? I do not want us to build a wall; I want us to remain the closest of friends and partners. In that spirit, I propose, first, that

“as we are confronted with similar security threats…the EU and the UK continue our common fight against terrorism and international crime.”

Secondly, I propose that the UK should

“participate in EU programmes in the fields of research and innovation, as well as in education and culture. This is key to maintain mutually beneficial and enriching personal networks in these…areas, and for our shared common community of values to prosper…in future.”

Thirdly, I would like to

“avoid that particularly absurd consequence of Brexit that is the disruption of flights between the UK and the EU.”

I would also like to make sure that there is no disruption on data, the channel tunnel or roll-on/roll-off ferries. Finally, I

“propose that we aim for a trade agreement covering all sectors and with zero tariffs on goods. Like other free trade agreements, it should address services. And in fisheries, reciprocal access to fishing waters and resources should be maintained.”

In saying that, I have just stuck very closely, with some variations, to quoting President Donald Tusk’s statement on the draft guidelines on the framework for the future relationship with the UK, issued on 7 March 2018.

I have been astonished recently to learn just how many colleagues had not noticed that offer which was placed before us—a wide-ranging offer including free trade and no tariffs in all sectors, including services. We have to ask why we have not taken this path. I have concluded from my experience that it is first and foremost because the establishment, the governing class of this country, does not believe in Brexit. The governing class believes in EU membership and is trying to deliver something as close as possible to the EU—not the EEA and the customs union because it is known that such an arrangement would not be accepted as leaving, but something like the customs union and EEA-lite, if I might call it that. That is what is before us in the Chequers White Paper.

Peter Grant Portrait Peter Grant (Glenrothes) (SNP)
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Will the hon. Gentleman explain who and what is the governing class? If it is not the former Foreign Secretary, what on earth is it?

Steve Baker Portrait Mr Baker
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As you know, Mr Speaker, I have been asked to keep to a time, and that term is sufficiently familiar to people in this House and across the country so I will not spend minutes defining it. It is the great class of people who govern our country, whether in politics, the civil service or the media, and those who govern our large companies.

Owen Smith Portrait Owen Smith
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Will the hon. Gentleman give way?

Steve Baker Portrait Mr Baker
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No. I am making my points gently and trying to do so in a spirit of co-operation. I heard the hon. Gentleman accuse me from a sedentary position of Trumpism, and I am not willing to go down that path with him.

Stephen Gethins Portrait Stephen Gethins (North East Fife) (SNP)
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Will the hon. Gentleman give way to me?

Steve Baker Portrait Mr Baker
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I will not; I will go on.

I will say this, because it is important that it is said—[Interruption.]

John Bercow Portrait Mr Speaker
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Order. There is a rather discordant atmosphere in the House. This is a matter upon which there are passionately held and differing points of view, but Members are entitled to be heard with courtesy. I simply reference the fact that the hon. Gentleman is an immediate-past Minister and he must be heard, and heard with courtesy.

Steve Baker Portrait Mr Baker
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Thank you, Mr Speaker. I will try most sincerely not to be too indiscreet, but before Christmas—I believe it was September or October but my detailed, copious notes are at home and so not available to me—I was asked by a very senior person what the political consequences would be of choosing an EEA-lite deal. I explained that it would be a political cataclysm for the Conservative party and there would be a great political explosion if such a thing were chosen. We discussed it at some length.

Shortly after Christmas, after the Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Fareham (Suella Braverman), joined the Department, I will reveal that we had a ministerial meeting at which all the Ministers looked at the proposals in advice, and we all agreed we should build from a free trade agreement Canada-style rather than take an EEA-lite deal. Yet, despite proceeding on that collective basis in our Department, here we are with a proposal before the House that requires a mandatory degree of high alignment to EU rules. It is an EEA-lite proposal, not a Canada-plus proposal, if I may put it in those terms, despite a long history of Ministers rejecting that.

I have to conclude that it has long been the intention of those providing advice that we should arrive at such a relationship. Those proposing this category of close relationship, with the up-front choice of mandatory alignment, have two profound problems. First, the project of the European Union is in real difficulty. I take no pleasure in that, and no one need take my word for it—Jean-Claude Juncker said on 14 September 2016:

“Our European Union is, at least in part, in an existential crisis.”

Monsieur Macron said in Strasbourg on 17 April this year:

“There is a fascination with the illiberal, and that is growing all the time…Month after month we are seeing views and sensibilities emerge which call into question certain fundamentals. There seems to be a sort of European civil war.”

That is the most of extraordinary thing to have been said, yet it was said by a man who supports the European project. George Soros, who famously supports the project, has said:

“The European Union is mired in an existential crisis. For the past decade, everything that could go wrong has gone wrong.”

Andrew Lewer Portrait Andrew Lewer (Northampton South) (Con)
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I thank my hon. Friend not only for his words today but for the hard work he put into trying to get us to the right place. Does he recall that it was my view as an MEP at the time, and that of the British people, that it was the EU’s very direction of travel and the concept of it not as a static, safe, solid entity with which we are entering some sort of new relationship but an organisation moving in a particular, disturbing direction, that led the British public to make the decision they did, and it is our responsibility to fulfil that?

Steve Baker Portrait Mr Baker
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I agree with my hon. Friend, but I would extend his remarks by saying that it is clear, across the European Union, that the project is running into the problem, as its proponents have said, that it lacks democratic consent for what is being done. This is a profound problem that should alarm all of us.

If we look at Hungary, we see that almost 70% of the vote share is for parties that could be considered populist. In Germany, Alternative für Deutschland has risen from obscurity to be the third largest party, forcing Frau Merkel into a coalition—an unwanted coalition—to keep it out. In the Netherlands, the major parties have announced that they would do everything they could to keep the so-called Freedom party out of power, refusing to form coalitions with it despite the Freedom party getting the second largest share of the vote. I am very grateful to those in the Italian Parliament for passing a helpful motion, but I hope they will not be offended if I say that their parties are not necessarily considered mainstream. The rejection of the status quo in Italy is indicative of a trend right across Europe where, politically, the project is being rejected.

On the economy, I would just say that, according to the House of Commons Library, the European Central Bank has, in total to date, purchased €2.5 trillion of assets, which includes €2 trillion of Government debt. By the end of 2018, the figure is scheduled to be €2.6 trillion. That is equivalent to about 23% of annual eurozone GDP. This is the most extraordinary economic and monetary period in history. I personally believe that the distortions sown by quantitative easing on such a scale will unwind, and will do so in a very harmful way. That is the first problem faced by those who propose a high-alignment scenario such as this one. It seeks to cling on to institutions and a kind of political economy that are running out of public consent and have economic difficulties.

Stephen Gethins Portrait Stephen Gethins
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I thank the hon. Gentleman for the speech he is delivering. I am glad that he is using statistics from the House of Commons Library that he clearly believes. As a former Minister, will he reflect on the statistics that the UK Government put together showing just how disastrous every form of Brexit would be?

Steve Baker Portrait Mr Baker
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I am grateful to the hon. Gentleman, but I am afraid that I will just refer him to the answer to the relevant urgent question, which I will stand by for a very long time.

The second point—I have received some private communications reinforcing my view—is that, unfortunately, the establishment believes that any deal will be voted through by this House and is working on that basis. I have to say it is with some horror that I face the possibility that that consideration is being borne in mind by negotiators, because I do not believe for a moment that it is true. I believe that Scottish National party Members will always vote in a way that reinforces their hopes of secession from the UK, which is bound to mean voting against any agreement. I believe that the Labour party, for all the good faith of the shadow Secretary of State, will in the end vote against any agreement—any agreement. That therefore means that people—whether or not they like it, and however impartial they may be—must bring forward a deal that can be voted through by the Conservative party.

The number 40 has been bandied around in this House in the past few days. I am sorry to say it—it gives me no pleasure to say it, but I must do so—“and the rest”. People who have said 40 are not out by a fraction: when they come to consider the number of Members on the Conservative Benches who do not like this deal and are willing to vote in line with that dislike, they are out by a factor, not by a fraction. That means people must face up to the difficult truth that a high alignment—a Brexit that requires a high degree of permanent alignment to the European Union—will not go through this House of Commons; it will fail. Those are the two difficulties that officials—officials—must face up to.

Stephen Kinnock Portrait Stephen Kinnock
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Will the hon. Gentleman give way?

Steve Baker Portrait Mr Baker
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I will give way briefly, and I then want to try to move to a conclusion.

Stephen Kinnock Portrait Stephen Kinnock
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The hon. Gentleman is being very generous in giving way. Will he confirm that he is in effect saying that Chequers is absolutely dead in the water? The implications of that are enormous for the Secretary of State, who is about to go to Brussels to meet Monsieur Barnier. How is he supposed to do that, and on what basis is he conducting those negotiations? If the hon. Gentleman could also say what his alternative plan is, that would be very useful for the House.

Steve Baker Portrait Mr Baker
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I am about to come on to my alternative, but I will not have words put in my mouth. I said when I appeared on the television last Monday that this was a time for reflection and taking stock, because the choices before this country are grave. Every Member of this House, on whichever Bench they sit, needs to think extremely carefully about how we go forward. I will not have words put in my mouth. What I have said, I have said from my knowledge and I believe it. No one should plan on a high-alignment deal—an EEA-lite style deal—going through this House.

Three key steps should be taken as we go forward. The first is that those in the UK who I would call the establishment, the governing class—those who create the climate of opinion—must accept the referendum result and its consequences. I encourage them to look at President Tusk’s March statement on the guidelines. The red lines that the British public expect us to fulfil imply that the common landing ground of our relationship with the EU, which I spelled out, taking words from his statement, is partnership on security, some participation in research, innovation, culture and education, dealing with the absurd consequences that would otherwise arise, and having a free trade agreement in the style of a normal FTA, not EEA-lite. That must be embraced.

Secondly, I refer the House to the question asked of the Prime Minister by my right hon. Friend the Member for Haltemprice and Howden (Mr Davis) today. The Government should table a legal text that should include a solution for the border in Ireland. We should stand ready, open, to negotiate this common ground set out in March.

Edward Leigh Portrait Sir Edward Leigh
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The Prime Minister appears to be saying that President Tusk’s suggestion of a Canada deal is not acceptable because it would result in some kind of hard border. That is not something I accept, but perhaps my hon. Friend can comment on it. If we have the facilitated customs arrangement, will we not need some tracking device and, if we have a tracking device, could that not be used to alleviate any hard border in Northern Ireland?

Steve Baker Portrait Mr Baker
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Mr Speaker, I am conscious that I am going beyond the guidance that you gave us, and I am very grateful to you for allowing that.

What I would say to my hon. Friend the Member for Gainsborough (Sir Edward Leigh) is that I believe that the problems of the Irish border are first and foremost to do with political and administrative will. A great deal has been said about technology, which is in fact a distraction from the reality that there is already a border, particularly in relation to excise. It is necessary to have an element of political and administrative fudge on the border, if I may say so, but to do it in a way that works for both sides. I believe that it really is political and administrative will that stands in the way, and that there are no insurmountable problems on the border. I also believe that there are no insurmountable problems with customs declarations or rules of origin. I very much hope that my hon. Friend the Member for Yeovil (Mr Fysh) might touch on that, as I know that he is an expert on the subject.

The second point is to table legal text to stand ready in good faith to negotiate the landing zone set out by the President and Council and to be ready to deliver in the spirit of article 8.

The third thing we must do is that thing which the Cabinet resolved collectively at Chequers. We must accelerate the delivery of our plans to leave the European Union in the unwanted eventuality that nothing can be agreed. We must be ready. We cannot allow ourselves to be in a position where complacency means that the Government machine goes forward thinking that any deal will go through Parliament, when I feel confident that deals that are, for want of a better term, too soft will be rejected by this House. We cannot allow ourselves to be put in a position in which we are perhaps not as ready as we should be and a deal is unexpectedly voted down.

Tom Brake Portrait Tom Brake (Carshalton and Wallington) (LD)
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Will the hon. Gentleman give way?

Steve Baker Portrait Mr Baker
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I want to wrap up. The right hon. Gentleman intervened on me so many times when I was in another role that I hope that he will forgive me for not giving way now.

I am sure that our country is on the cusp of delivering a catalysing transformation both of global free trade and corresponding political institutions in delivering democratic self-government that can deliver on the aspirations of the British people. There is a greater future ahead for the UK, Europe and the world if we do it, but if those who set the climate of opinion and decide what we shall do persist in turning their face against accepting the democratic decision and the red lines that people expect us to fulfil, and thus rejecting President Tusk’s vision of where we should land together, it will be their fault if we end up exiting this European Union with nothing agreed.

--- Later in debate ---
Peter Grant Portrait Peter Grant
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No, I really cannot, given that one of the hon. Gentleman’s own colleagues has complained that I am going on for too long. I am sorry, but other Members want to speak.

In return for that, it is not at all unreasonable to ask that the Government who lead the negotiations should have proper regard to the fact that two of the four nations in this partnership of equals voted for a different result. Clearly we cannot have an arrangement whereby some parts of the United Kingdom are in the EU and some parts are not, but—with political will, with a willingness to be flexible, with a willingness to do the unprecedented because these are unprecedented times—there are ways in which the Government could present proposals to the EU that would come much closer to respecting the will of the people of Scotland and the will of the people of Northern Ireland than anything that they have been prepared to put forward in the past.

I do not accept the analysis of the hon. Member for Wycombe (Mr Baker), who is trying to tell us that there is a huge and building majority in the House for a hard Brexit, or a Brexit that respects the European Research Group’s eight red lines. These are the people who do not want us to tie the Prime Minister’s hands. They have put down eight red lines, and if she violates any one of them, she would face of vote of no confidence.

Steve Baker Portrait Mr Baker
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Will the hon. Gentleman give way on that point?

Peter Grant Portrait Peter Grant
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No. The hon. Gentleman spoke for long enough.

Steve Baker Portrait Mr Baker
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Will he give way?

--- Later in debate ---
Hilary Benn Portrait Hilary Benn (Leeds Central) (Lab)
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May I begin by apologising to you, Madam Deputy Speaker, to the Secretary of State and to the shadow Secretary of State for not being present at the start of the debate? As Mr Speaker was aware, I was questioning the Prime Minister as a member of the Liaison Committee on the subject we are debating now.

I listened to the speech by the hon. Member for Wycombe (Mr Baker) and respect the passion with which he advocates his position, although I profoundly disagree with it. I do, however, gently say to him that I think it is unfair to seek to blame civil servants for the situation in which we find ourselves as a nation when for two years they have had to watch the spectacle of Ministers, including Cabinet Ministers, openly arguing among themselves about the right course of action, and it was not until Chequers that the Prime Minister tried to bring them together.

Steve Baker Portrait Mr Baker
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I did not mean to blame civil servants. I mean to blame the broadest governing class, the establishment, which is well represented in here and which clearly does not believe in leaving the European Union. I have paid tribute to civil servants over and over again. The people I have worked with have been the most outstanding professionals and I am proud to have worked with them.