Brexit: Withdrawal Agreement and Political Declaration

Baroness Smith of Basildon Excerpts

Wednesday 5th December 2018 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I am grateful to the noble Baroness the Leader of the House for opening a very important debate, and to the usual channels for facilitating what is effectively four days of debate across three days to ensure we have the opportunity to conclude our discussions prior to the vote in the other place.

Since the result of the referendum, as the noble Baroness referenced, this House has been constructive in examining the detail and implications of the UK’s departure from the EU. The clearest evidence of this is the many Select Committee reports on a range of subjects, such as trade and financial services, judicial and security co-operation, and Northern Ireland, which have brought enormous clarity to complex matters. When the Government were forced by the High Court to secure Parliament’s approval to trigger Article 50, your Lordships’ House passed just two amendments—on the position of EU nationals and the need for parliamentary debate—with a vote for MPs on the eventual deal. Although the Government opposed the amendments, they conceded the principle on both.

Our constructive approach has also been evident in later legislation. On the withdrawal Bill, some 160 hours of scrutiny led your Lordships’ House to pass an unprecedented 15 amendments for consideration by MPs. Despite the over-the-top protestations from some, this was clearly useful work. Our EU agencies amendment was accepted in full and others, including those on Northern Ireland and the meaningful vote, were accepted with some changes.

Your Lordships’ House, working across party lines to improve the legislation, secured almost 200 concessions, including crucial restrictions on delegated powers. We considered that there should be parliamentary oversight of the final arrangements, rather than our future relationship with the EU being approved with the stroke of a ministerial pen. This House agreed that we should debate the Prime Minister’s Brexit deal, but that the meaningful vote should be for the elected House. Any vote we have is an expression of our opinion as a second Chamber, and our debate over the coming days is in that context. It provides an opportunity for your Lordships’ House to continue to be constructive, analytical and forensic in consideration of the withdrawal agreement and the political declaration.

Following discussions and consultations, we have tabled a Motion in my name to provide an opportunity for your Lordships’ House to express its opinion on the outcome of the Prime Minister’s negotiations. I will speak to it now, but it will not be formally moved until the conclusion of our debate on Monday. I have just been informed that an amendment to my Motion has been tabled, although I have not had sight of it yet. I do not know what it says, but I hope that might become clearer in the next few days.

The aim of my amendment is to frame the next few days around three key issues that are at stake. First, as noted, it is for the elected House of Commons to determine this matter. When we debated the withdrawal Bill in this House, my noble friend Lord Monks tabled a successful amendment saying that the Prime Minister should obtain a mandate from Parliament for her deliberations with the EU. At that time the Government were adamant that Mrs May could not be constrained by Parliament, yet had she sought a parliamentary mandate then, even just for the basic principles, she might not be facing such an uphill and perhaps even impossible struggle. Yet as we heard from her last night, she has again conceded that principle. While it is exceptional, the Government are—probably as I speak—releasing their own legal advice, having been forced to do so by MPs. The House of Commons faces its most important Division for 75 years, so how could it have been against the national interest, as the Government then claimed, to provide MPs with vital legal information? I am pleased that, following last night’s vote, the Government have had to accept that they were wrong, but the Prime Minister just made her job harder.

Secondly, the Motion is clear that the option—or indeed the threat—of a no-deal exit is emphatically rejected. While some may fondly imagine that the only consequence of no deal is that we step back in time and pick up where we left off 45 years ago, the reality is so very different. The world outside has not been static, just waiting for us. To crash out of the EU without arrangements in place for co-operation on trade, agriculture and fisheries, crime and security, consumer and employment protections, energy and the environment would be grossly reckless and irresponsible. It would leave the country in the curious position of being outside the EU but having essentially to accept free movement, due to a lack of alternative immigration arrangements. It would leave our UK citizens in the EU without security in employment or in retirement. Initially, planes would be grounded and, regardless of the number of lorry parking spaces made available on our motorways, major ports would experience tailbacks and costly delays, with huge implications for the nation’s food security and exports. Our already overstretched police forces would no longer have access to EU databases but would be left to rely on patchy, outdated and cumbersome procedures for exchanging vital information on cross-border crime. The lack of certainty for businesses would have a hugely detrimental effect on our economy and investment. There are no circumstances in which a no-deal scenario could be of any benefit to the UK.

Thirdly, the Motion regrets that the Prime Minister’s negotiated settlement is inadequate. The Government initially argued against a transition or implementation period, claiming they had everything in place: it would all be done by March 2019. This deal proves how empty a boast that was. The Government are now forced to accept that such a breathing space is essential as they have not been able to reach agreement on multiple issues. The declaration outlines what both sides hope can be achieved, but it offers zero certainty. Should the deal we are debating be accepted by the other place, the Government would then bring forward what they call an implementation Bill, but nobody has any idea what it will be implementing. Our future economic prosperity, our security and our place in the world are all weakened by this agreement.

Since the publication of the political declaration, it has become clear that the envisaged trade and security relationship is below par. Even if the Prime Minister had got everything on her Chequers shopping list—and we should be clear that she is nowhere near—the result would be slower economic growth. There is no provision for a permanent UK-EU customs union, nor for continued participation in the European arrest warrant. While the EU has stated that the UK can enjoy an unprecedented level of third-country security co-operation, we have no idea whether we will have access to databases such as the second-generation Schengen Information System. On Northern Ireland, the Prime Minister produced a backstop that literally nobody is happy with—not her Back Benchers, not the DUP and certainly not the Labour Party.

What does the Prime Minister’s deal offer us? It is a wish list, with decisions to be made later. In the words of the latest Brexit Secretary,

“we have agreed to strike an ambitious new flexible and scalable relationship that allows us to combine resources worldwide for maximum impact”.

If only there was some existing international organisation that allowed the UK to maximise its contribution to global affairs. The deal before us represents a blind Brexit, with no certainty or clarity for the future. It does not deserve our support.

When the Prime Minister claims it is the best deal, what she means is that it is the best deal she has been able to negotiate. Those red lines Mrs May set at Lancaster House were never a great starting point for a strategy. Throughout, she has sought to appease one or other of the rival factions in her party. In a Statement last week, the Lord Privy Seal described Brexit as,

“building a brighter future of opportunity and prosperity for all our people”.—[Official Report, 26/11/18; col. 503.]

On what basis can that claim be made? What is the evidence? Where is the detail?

The Government’s economic analysis was modelled on a White Paper produced post-Chequers. That is not even government policy any more. We have been told that countries are queueing up to sign trade deals with us. However, the US President clearly thinks otherwise. The Prime Minister’s most positive interaction at the G20 summit was meeting her Japanese counterpart who, echoing our Motion today, pleaded with Mrs May to rule out no deal. The Chancellor of the Exchequer admitted that the deal leaves us worse off, saying:

“There will be a cost to leaving the European Union, because there will impediments to our trade”.


The options being presented by the Prime Minister are her deal—which would leave us worse off—or a catastrophic no deal. That is a Hobson’s choice, and not one that any responsible Government should ever seek to force their Parliament to take.

Let us be very clear: the Government have mismanaged this entire process. Every time there has been a fork in the road with decisions to be made on the direction ahead, the Prime Minister has taken the wrong turn. No responsible Government would ever trigger Article 50 without having some kind of blueprint for negotiations and ensuring buy-in from Parliament. No responsible Government would ever alienate their closest allies before talks had even begun by refusing to protect the rights of their citizens who have made this country their home. Surely, no responsible Government should ever talk up the chance of falling off a cliff-edge, forcing businesses to implement contingency plans that result in the loss of UK jobs.

It is little wonder the Prime Minister is living life on the edge, taking each week—or rather each day—as it comes, or that our country is so divided. That division is not the only tragedy of Brexit. Imagine if that energy, intellect, enthusiasm and money had been channelled into some of the great issues of our time: eradicating homelessness and poverty, tackling climate change, preventing disease and resolving conflict. For the first time since the Second World War, we have generations of young people without the hope, optimism or confidence in the future that their parents and grandparents had. Whatever the eventual outcome of the wider debate on Brexit, there is an obligation on all of us to address that and prove that the current state of our political life is not the norm. Parliament and politics should and must be a force for good.

The public were promised outcomes that were never realistic. Over the next few days, your Lordships’ House will do what it does best: scrutinising the agreements and highlighting the many issues and inconsistences within them. On Monday, before the Commons takes its own binding decision, I will ask your Lordships’ House to vote on the Motion standing in my name. There are just three points: first, it is for MPs to make the decision; secondly, no deal can never be an option; thirdly, even if the Prime Minister thinks it is the best deal she can get, it is inadequate. We hope our debate, the evidence we have already provided through our Select Committees and the work of our EU committee will be useful to MPs as they deliberate. As part of being helpful to the other place, we hope your Lordships’ House will want to express the view that the Prime Minister is wrong to impose this as a choice between her deal or no deal.

[Lord Butler of Brockwell (CB)]

My Lords, before the noble Baroness sits down, I apologise that I was not able to give her more notice of the amendment I have put down to her Motion. For reasons I shall give when I speak, I wholeheartedly go along with the first two legs of her Motion, but I cannot agree with the condemnation of the draft agreement in the last part.

[Baroness Smith of Basildon]

I am sorry that the noble Lord was not able to speak to me before. However, the point I am making does not differ from his, and I stand by it: the deal offered by the Prime Minister is inadequate.