European Union (Withdrawal) Act

Alex Chalk Excerpts

Thursday 10th January 2019 Commons Chamber

[Michael Gove]

My right hon. Friend makes two very important points. It is absolutely right that there have been some lurid and exaggerated stories, both during the referendum and subsequently, about the impact of certain Brexit scenarios, and he is absolutely right that in aviation and the commitments of some of our partners who manage ports there have been welcome signs. It is also important to recognise, however, that the European Commission has made it clear that, in the event of a no-deal Brexit, there will be 100% checks on products of animal origin and live animal exports, which will add significantly to friction.

Tariffs would also be imposed, and while overall tariffs on agricultural produce in the EU are around 11%, which can be discounted by changes in the valuation of sterling, it is also the case that the import duties on some products, such as sheep meat, are more than 40%, and in some cases considerably more. That would certainly impose costs on our farmers and food producers. They are resilient, imaginative, energetic and dynamic, and in the long term, of course, they will flourish, but these are undeniable short-term costs.

[Alex Chalk (Cheltenham) (Con)]

Does the Secretary of State agree that it is important to listen to the likes of GE Aviation, which employs a lot of people in my constituency and says that a

“disorderly ‘no deal’ exit…would prevent…challenges for our operations, supply chains and customers”,

and exhorts me and others to ratify the withdrawal agreement, which would

“provide business with the certainty it needs”?

[Michael Gove]

My hon. Friend makes a very good point. Again, across business there was a range of voices —for remain and leave—during the Brexit referendum, but what is striking is that many prominent voices among those who argued that we should leave have also made it clear that they believe that a no-deal Brexit would be the wrong outcome. They see significant opportunities for Britain outside the EU. Lord Wolfson, one of our most talented entrepreneurs in charge of one of our biggest retail chains, and Richard Walker, the chief executive of Iceland, one of our most dynamic and environmentally friendly supermarkets, both voted to leave the EU. They believe that to be the right choice for Britain and they both—employing thousands of our fellow citizens—also say that a no deal would pose significant challenges.

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[Alex Chalk (Cheltenham) (Con)]

In these difficult times for our country, it is as well to remember the iron rule of politics: no situation is so bad that it is not possible for politicians to make it worse. I fear that we are in such a situation now. Not to vote for the deal would be to fall into precisely that trap.

I was a remainer. I campaigned across Cheltenham for remain, from the high street to the promenade. I did not do so because I thought the European Union was perfect. It had allowed itself, in many ways, to become inflexible and too remote from ordinary people. Even if I would not have suggested joining on the terms that were proffered in 2016, it seemed to me that the process of unravelling that 40-year relationship would be so lengthy, so complex, so expensive and so divisive that the game would not be worth the candle.

I made that argument and others, which are being reheated, such as that that process would act as a headwind against growth, and I was proud of the fact that 56% of people in Cheltenham voted to remain. But we did not vote as constituencies; we voted as a country. We voted as one nation, and I am first and foremost a democrat. I stood on a manifesto in 2015 that read:

“We will honour the result of the referendum, whatever the outcome.”

Parliament then voted for such a referendum. On Second Reading of the Bill that became the European Union Referendum Act 2015, the then Foreign Secretary said that the Bill had

“one clear purpose: to deliver on our promise to give the British people the final say on our EU membership in an in/out referendum”.—[Official Report, 9 June 2015; Vol. 596, c. 1047.]

That was voted for by parties across the House—the Conservatives, Labour and the Liberal Democrats. During the campaign, the Government distributed to every home in Cheltenham a leaflet stating:

“The referendum…is your chance to decide if we should remain in or leave the European Union…The Government will implement what you decide.”

We all know that was the deal. I remember the words of the late and much-missed Paddy Ashdown on the evening of the referendum. Before the result came in, he said:

“I will forgive no one who does not respect the sovereign voice of the British people once it is spoken, whether it is a majority of one per cent or 20 per cent. When the British people have spoken you do what they command. Either you believe in democracy or you don’t.”

Some in the House say the margin of victory does not matter. “In a referendum,” they say, “the winner takes all—one more vote is all you need to impose the most ideologically pure version of what you argued for.” I respectfully suggest there are great dangers in assuming that the 2016 referendum result—just 52:48—was a mandate for a tungsten-hard no-deal Brexit, which is now one of the two obvious alternatives to this deal. Those who advocate that would do well to remember that, had the EU negotiators simply offered David Cameron a genuine emergency brake that did not dismantle the freedom of movement principle but provided a sensible derogation, it is likely we would have voted to remain.

This deal is a compromise. That means it has positives and negatives. The positives are these. On goods, the EU has accepted that the UK should have a bespoke trade deal, with no tariffs, fees or charges and no quotas. On services, the EU has accepted the principle of arrangements for financial services, which, importantly, will be based on equivalence. British nationals will be able to travel freely without a visa, EU directives will no longer have direct effect and so on.

Against that backdrop, is it any surprise that the deal has been loudly welcomed by Rolls-Royce, Siemens, the Association of the British Pharmaceutical Industry and the chief executive of UKHospitality? The BioIndustry Association supports it—I could go on and on. The chief executive of BAE Systems, which employs many people in Cheltenham, welcomed the transition period, and GE Aviation, a significant employer in Gloucestershire, said:

“Ratification of a withdrawal agreement would provide business with the certainty it needs. In contrast, a disorderly ‘no deal’ exit in March would present considerable challenges for our operations, supply chains and customers.”

[Simon Hoare (North Dorset) (Con)]

Does my hon. Friend share my concern that the experts and others he prays in aid, whose views I certainly give great weight to, have been too easily dismissed? People either call them fake news or say, “They would say that,” or, “They don’t know what they’re talking about; we know better.” There is a dangerous anti-business trend in what some people say, and we must resist it.

[Alex Chalk]

And this is the Conservative party, which listens to business and wants to stand on the side of people who create prosperity in our country. By the way, if we want to deliver social mobility, we will do that through jobs and enterprise, and by raising tax revenues so we have the greatest possible public services.

Of course there are negatives to the deal; we have heard about those. Concern is rightly expressed about the Irish backstop, but, as the Secretary of State indicated and the Attorney General has said, it is an instrument of pain for both sides. What is a backstop for us is a back door for them. Northern Ireland would have the advantage of being able to access both the single market of the EU and the single market of the UK. Mainland British businesses would be incentivised to relocate to Northern Ireland to supply their goods into the EU. Meanwhile, the process of negotiating trade deals would become a nightmare for the EU, as it would not be able to clarify the frontiers of its single market and the British taxpayer would not be paying a penny piece.

The fact is that all trade deals require some kind of backstop. Canada-plus and Labour’s suggestion—it wants to be inside the customs union but outside the single market—would require one, too. I have heard much criticism from the Labour party. Some of it is fluent and cogent—we get all that—but, with respect, criticism is easy. As a quote probably misattributed to Teddy Roosevelt goes, complaining about a problem without proposing a solution is called whining. Labour does not want a second referendum, does not want an extension and criticises the Government, saying there is no way they could get meaningful changes to their deal, yet it suggests that it could get a whole new deal by 29 March—a “strong single market deal”, although that is completely lacking in detail and clarity as to what Labour would require. [Interruption.] It is indeed a “unicorn” prospect.

A hard Brexit, I would suggest, is simply not an option. There are concerns about Ireland, and I have real concerns about it. Of course it is necessary to “aim off” with respect to some of the polls, but there is a real risk that if there is a hard Brexit the appetite for a border poll will increase, and there is then a real risk of a united Ireland. There are great risks from a second referendum as well, which I cannot go into now. However, there is an opportunity for us to do something sensible and unlock the wall of investment that is poised over our economy, and I shall be voting for the deal.