Article 50 Extension
Bill Grant Excerpts(5 years, 7 months ago)
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Peter Grant
I have given way a good number of times and need to make some progress.
When we see the First Ministers of the national Governments of Scotland and Wales being frozen out almost completely and the leader of a non-governmental party effectively being able to pull the strings of half the Conservative party—the leader of a party whose total election vote in 2017 is smaller than the population of Scotland’s second city, not even our biggest city—we have to wonder where the democratic principle in that is.
It became quite clear last weekend that attempts to persuade DUP Members to back the deal were not about persuading them that it was actually better than they had thought, or that the backstop was not as big a threat to them as they had thought; it was about trying to find out how much money could be dug out of the Treasury to buy their support. What kind of an honourable way is that for a Government to work? We know that DUP Members do not agree with the deal, and that they think it will be damaging to their constituents, but the Government are trying to send in money so that their constituents will not notice how damaging it is. In any other context, that practice would be viewed very differently; it would not be considered an honourable practice at all.
Bill Grant (Ayr, Carrick and Cumnock) (Con)
The hon. Gentleman mentioned how minorities can lead a majority. Is it not the case that in Scotland, a small group of six, rather than the Government, has inflicted tax rises on the people of Scotland?
Peter Grant
There is an important difference there. The reason that the Scottish Green party was able to have some influence on the Scottish Government’s business is that when it was invited to talks, it accepted the invitation. Other parties with significantly more political clout, and therefore presumably much more opportunity to influence those talks, choose not to accept their invitations. They went away in a huff. They wanted to have something to complain about, but they could not find anything proper to complain about so they invented something. We heard their bogus outrage about a tax that has actually been legalised and is part of the policy of the hon. Gentleman’s own party within this Government. The Conservative party did not take part in discussions with the Government of Scotland because it turned down the invitation to do so. Our party has often not taken part in discussions with the Government of the United Kingdom because we have not even had an invitation, and neither have any of the other parties represented here apart from the DUP—although it has no representatives here today.
The United Kingdom faces a grim choice between two futures. We are now almost hours, rather than days, away from the time when the only option left will be to revoke article 50 or to plunge off the cliff edge without a deal. We are running out of time for anything else. The Prime Minister has taken us 99% of the way from the referendum to cliff edge day, yet she still has no idea how she is going to avoid the cliff edge.
The people of Scotland are facing a choice between two futures as well. It is becoming increasingly and alarmingly clear what our future will be if we remain tied to this failed and dysfunctional Union of so-called equals. Do we want to be part of a Union that treats elected national leaders with contempt and kowtows to the leaders of parties that in the not-too-distant past have invoked homophobia and bigotry as a way to garner electoral support? Do we want to be part of a true partnership of equals in which half a billion people and their Governments will stand shoulder to shoulder with the Government of a nation of barely 3 million people to ensure that those 3 million cannot be bullied by a bigger neighbour? Or will we remain part of a Union that has made it perfectly clear that, even though our people rejected this disastrous Brexit by a majority of almost 2:1, we will have to take it because we are part of that Union?
I want to see a long extension to article 50, because I want the people of the United Kingdom to have a chance to say, “We made a mistake.” I do not need to hope, because I know with absolute certainty that, before very much longer, the people of Scotland will be given the chance to say, “In 2014, we made a mistake.” This time, there can be no doubt whatever what the choice of the people of Scotland will be. I look forward to seeing the people of Scotland taking our place beside our Irish neighbours and cousins as full, independent sovereign members of the equal partnership of the European Union.
UK’s Withdrawal from the EU
Bill Grant Excerpts(5 years, 8 months ago)
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Angus Brendan MacNeil
The hon. Gentleman should know that we have a deal at the moment with the European Union. It is a good deal, and any other deals we have with the European Union that involve us leaving the customs union and the single market will damage the economy. He should be straight about that. I notice that he will not give small businesses a guarantee—no Conservatives will, but none of them will go to the wall because of their political adventures. They should be aware, and the rest of the country should be aware, of what they are doing.
The chemical industry is very worried about exactly what regulation it will have. It describes itself as the “industry of industries”, underpinning pharmaceuticals and automotive in the UK, and aerospace. If it is outside the REACH regulation and cannot license chemicals, some chemicals might not be available in the United Kingdom.
Angus Brendan MacNeil
I am happy to give way to the hon. Gentleman. Can he guarantee that all chemicals will be available after Brexit?
Bill Grant
I am concerned at the view that businesses in Scotland will go to the wall. Having spoken to businesses in Scotland, I know that they want to work within a deal. Can the hon. Gentleman explain why he will not support a deal for his businesses?
Angus Brendan MacNeil
They have been working within a deal, which is why I want us to revoke article 50. I thank the hon. Gentleman for giving me the opportunity to say that.
I want to say a word or two about the trade continuity agreements. This nails a big lie of Brexit—that we can trade on WTO terms. The reason we want to roll over trade agreements instead of trading on WTO terms is that trading on WTO terms is an expensive way of conducting businesses. It involves tariffs, taxes and—[Interruption.] I hear laughter on the Government Benches. Clearly Tories do not know that that is the case. Other Governments will get in the way and tax business transactions. That is why we want to roll over these trade agreements. Without them, we will trade on WTO terms, which is an expensive way to conduct commerce, and businesses will go to the wall.
The Tories march blithely on, happy to rip up agreements and deals with our biggest customer—the 27-member trade bloc of the European Union. When I spoke recently to Alan Wolff, deputy director general of the WTO, he described the area between trading on WTO terms and within trade deals as the “Brexit gap”. There is an inevitable loss for the United Kingdom from following this crazy way.
As chair of the all-party parliamentary group on the Faroe Islands, I am delighted to see that Poul Michelsen was down last week to sign their deal, which ensures a big slice of trade for them. But these trade deals with the Faroes, Chile and everywhere else are merely standing on the shoulders of what the European Union has already achieved—the European Union that Brexiteers decry so much, but whose trade deals they want to follow.
The Government find themselves in a very funny place indeed. They wanted at one stage to resist having any meaningful votes in Parliament, but they have ended up having so many that they have rendered them all meaningless. A number of people in business have told me that there is a danger in extending article 50 because it extends uncertainty and further postpones investment. It does, however, allow them to move assets more readily to the United Kingdom when nothing seems to be appearing down the line.
The UK is heading for an existential choice: it is either going to revoke article 50 or head for a no-deal catastrophe. We have to get our heads around that fairly quickly, because those will be the choices. The Brexit promises have been reduced by the Prime Minister to jam tomorrow—in fact, it is not even jam tomorrow; it is jam tomorrow if you scrape the mould off the top. It is a shame that that was not on the side of a bus.
Department for Exiting the European Union
Bill Grant Excerpts(6 years, 8 months ago)
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Angus Brendan MacNeil
The hon. Gentleman makes a case for all reports, but the report is the best estimate we have to go with. The report was kept secret for a long time, but it seems that it chimed with more than one person when it had to be leaked in the end.
It has emerged that the UK Government have decided on the middle road. They are looking for a free trade agreement, which is the option of a 5% to 6% hit on GDP—those are the Government’s own estimates—although some of the Tory party would go for the 8% hit of WTO rules. They have made political choices with severe economic consequences that they probably will not personally have to face. In a funny, humorous and ironic twist, they expect the European Union not to respond in kind. They expect the European Union to react with complete economic rationale, even though their politics are ones of irrational economic actions.
As we know, the EU and the UK have already taken actions based on principles, for a higher purpose, and that was in Crimea because of Russia’s annexation of it. The EU’s principle of the four freedoms means that it will take a smaller hit than the UK and a smaller hit than they all took with Crimea, or about the same. The point is that, in the bigger picture, the European Union is going to lose effectively about a toenail here, while the UK debates how many bullets are to go through its feet. That is the difference in the damage that will be done.
From the principal parties, we have had slogans. The slogan from the ruling Conservative party has been the illuminating “Brexit means Brexit”, as well as “It’s going to be a Brexit for Britain” and “It’s going to be the best trade deal possible”. We can look at this as an analogy. The Government have crashed their Rolls-Royce and are going down the second-hand car shop looking for the best second-hand car possible. Will it be a second-hand car that is 2% less good, 5% less good or 8% less good than the one they currently have?
On the other hand, we have the principal Opposition party, Labour, talking about a Brexit for jobs and a Brexit for the people. Labour—or at least its leader—has thrown another variable into the works: it want a customs union. I do not see an estimate for that either. What does that mean? If hon. Members are familiar with national newspapers that run fantasy football activities for statheads and football fans, they will know that readers can pick and choose players from a variety of teams and compose their own team based on that fantasy—perhaps called Team Corbyn; I do not know—but it is notable that this need not bear any relation to the reality of football other than the statistics, and even the players do not need to know that they are in somebody’s fantasy football team. Similarly, what is now emerging is a fantasy customs union—it bears no relation to the views of the 27 other partner countries—and they can pick and choose elements from the newspapers to their heart’s content.
The estimates in the leaked statistics show that this option—it is not the customs union or the single market—will lead to a hit of between 2% and 5% to 6% to the UK economy. The current Labour leadership should be very clear about that.
Bill Grant (Ayr, Carrick and Cumnock) (Con)
I have listened to the very pessimistic overview taken from the part reports. I read them today in the reading room, which was awfully secure, rather bizarrely, I thought. The reports make it clear that they are not finished estimates, but crystal-ball gazing. I take it that the hon. Gentleman has no desire to respect the people by way of referendums. He has never really got to grips with the referendum in 2014 and I am hearing tonight that he has not really got to grips with the referendum of 2017. Does his party disrespect the people and referendums?
Angus Brendan MacNeil
The other referendum was actually in 2016, but in both referendums—of 2014 and 2016—the Scottish people voted clearly to remain in the European Union, so, yes, I do respect the two referendums. I want that opinion to be checked again in the further referendum on Scottish independence within the European Union that, as the hon. Gentleman knows, is coming down the tracks in jig time.
A customs union, as currently suggested by the principal Opposition, can have myriad or infinite permutations. Have no estimates at all been made for that? All in all, this is one of the areas where the estimates are huge, the variabilities are massive and it is very unclear where the chips will fall.
The overall message that should be going out is that when boardrooms and when the people of Scotland look at the two parties in this Chamber—the Government and the principal Opposition—they have to start thinking and, particularly in the boardrooms, they have to start speaking. They do not have to enter into political debate, but they have to start to become very strident indeed in what they are saying. I meet too many of those from companies who come to me with their fears and their estimates of what might happen. In reality, they have to start saying what they want, because otherwise it will be too late.
I am reminded of the book, “On the Psychology of Military Incompetence”. In a number of military events that occurred, whether in Crimea—the charge of the Light Brigade was in Crimea of course—with the Boers in South Africa, in Mesopotamia or in Afghanistan, the common theme running through them all was the fact that the rank and file could not believe their commanders could get it so utterly wrong, and it was only when hot lead ripped through bare flesh that people then understood. There are companies that are too afraid to move and that, for one reason or another, will not say a word, but when they are taken down by the 2%, 5% or the 8% damage of Brexit, I tell those companies now that it will be too late to do anything about it then, so speak now.
Recently, my Committee went to the USA and Canada to look at the possibility of trade deals. The farmers lobby asked us why. Ford said a UK-US deal would be incremental, but that a UK-EU one would be existential. Certainly, when I saw the border with other Committee members, it was not as fast as the border at the moment between Ireland and Northern Ireland or as the border between France and Spain. These are some of the realities that are coming our way.
Hilary Benn
Other Members want to speak. I have given way already, and I am about to bring my remarks to a close.
It seems to me that the estimates we should really be discussing are our best estimates of the economic impact of Brexit. We are now running out of time. It is 19 months since the referendum, and there are nine months to go in the negotiation, but, crucially, there is one month until the European Union draws up its negotiating guidelines for the new economic relationship. If we do not get a move on, we run the risk that options that the House—or, heaven knows, the Government, if they change their view—might want to pursue are closed off by the EU in the negotiating guidelines for want of clarity about what the United Kingdom is seeking.
Bill Grant
I thank the right hon. Gentleman. I am standing up without holding on to the ropes at the moment.
I am thoroughly enjoying the right hon. Gentleman’s balanced and informative speech, but should he not consider the possible thoughts of, for example, the Dutch flower growers, the Italian Prosecco producers, the Italian winemakers and the German car manufacturers? I am sure he agrees that they will wish to do business with the United Kingdom, because we are a good country to do business with.
Hilary Benn
The Prosecco and BMW car analysis of our future economic relationship with the European Union—we heard a lot of it during the referendum—simply fails to understand the sheer complexity of the task that we now face. The customs union, in one sense, is the easy bit. When it comes to our future relationship with the internal market and the whole question of divergence, which we may hear more about from the Prime Minister when she speaks on Friday, I can tell the House, following our discussions in Brussels a week ago with the Select Committee—colleagues who were there can confirm this—that the moment the Government start to talk about divergence, two things happen with the European Union.
First, the EU asks, “Divergence where? How? What will it mean? How will we manage the process?” It has experience of the Swiss-type deal, which is basically 60 deals, which it loathes because of the complexity of the task and the need to continue to negotiate and, in effect, renegotiate with Switzerland how the relationship will work. The second issue that the EU raises is this: it is afraid that we will use freedom to gain the competitive advantage of being able to sail through the door that the Government are asking it to leave open for us when it comes to trading goods and services.
We are now learning that after the simplistic promises—“You can have your cake and eat it”, “There will be a deep and special partnership”, and all that sort of stuff—we have come to the end of that approach to Brexit. Now is the time for choices. The Government will make their choice, and we will have to live with the consequences, but it will be very apparent to Ministers—not least, I am sure, from the exchange of views around that room in Chequers—that there are trade-offs to be made, depending on what it is that we want.
I have argued passionately for remaining in a customs union not only because I think that it is in the best interests of British business, but because of the question of Northern Ireland. Believe you me, if we are to meet the very high bar that the Government have rightly set for maintaining an open border—the Select Committee made this point in its report at the end of last year—I do not see how that can be reconciled with the Government’s current policy of leaving the customs union and the single market. What we need now are clarity and certainty, and we need them with speed. Above all, however, we need the right policies for the economic future of the United Kingdom.
Tommy Sheppard (Edinburgh East) (SNP)
It is a pleasure to follow the right hon. Member for Leeds Central (Hilary Benn). I hope to respond in a minute to some of the points that he made about the customs union. However, before I start to talk about DExEU and Brexit, I want to make some general observations about the process in which we are engaged during our two days of debate on the estimates.
When I, and most of my colleagues, came to the House in 2015, we were quite shocked by the lack of financial scrutiny of the Executive in the Chamber. Since we became the third party, we have pressed for change in the way in which the estimates are considered. I therefore welcome the baby steps taken this year, in that we are at least able to focus on a set of figures that relate to a Government Department and what it is doing, rather than discuss random topics that may or may not be related to budgetary matters. However, we still have a long way to go in holding the Executive to account financially and in terms of their policies.
I firmly believe that if we were the board of a large charitable organisation, the charity regulators would find us wanting in terms of our procedures for financial scrutiny and accountability. I also believe that if we were the board of a large corporation, our shareholders would be demanding action to improve our processes. I therefore hope that the steps we have taken this year are the beginning of a process, and we might one day get to a situation where the Government are required to produce a programme plan charting their future policies and their effects, and then each Department has to produce a programme plan, which each Select Committee can scrutinise along with the budget that goes with it. That is the process that the Scottish Government are engaged in, in terms of how they govern the responsibilities under their remit, and it is one that we could learn from and try to develop here in the years ahead.
What happens when we combine a rudimentary process of programme planning and financial planning with the complete absence of a set of policy objectives in the first place? The answer is DExEU, because here we have combined an absolute lack of planning and a financial mess. DExEU was set up in the summer of 2016 by a shell-shocked Government who frankly did not know what to do in implementing a referendum result that they did not expect. In a desperate desire to be seen to be doing something, they set up a brand, spanking new Department, with lots of new letterheads and people to write memos to each other, and lots of people employed to research and analyse something, the only problem being that there was no plan to be implemented.
In the absence of a plan to be implemented, we have gone from one chaos to another, and I share the Minister’s embarrassment. This must be the only Department in history that underspends its budget not by a couple of percentage points, but by 50% in its first year, and it has had to go to the Treasury to scale down its estimates of spending in the next financial year.
That is a phenomenal metaphor for the Government’s Brexit policy, because they do not know quite what they are doing. In the absence of their being able to play a co-ordination role in planning for Brexit, individual Departments have had to be allowed to do their own thing and try to deal with the consequences as best they can. That is why 90% of the amount of money being spent on Brexit preparations, or the lack of them, is not to be found in the Department supposedly responsible for co-ordinating preparations for Brexit. That is a ridiculous situation.
This, of course, is from a Government who have said not only that they will set up a brand new Department, but that money is no object for that Department. This is a Government who cannot find the money for our health service; a Government who are determined to squeeze down wages by pay restraint in the public sector and reduced living standards; a Government who have, for heaven’s sake, taken £30 a week of employment and support allowance from the most vulnerable people in our community—yet they can find £4 billion over the next few years to spend on preparing for Brexit. The problem is that the plans are so incomplete, and they do not know what they are doing, so they are even unable to spend the money.
Tommy Sheppard
I will certainly give way, and hopefully we will hear what the plan is.
Bill Grant
I remind you, in case you have forgotten, that this Government created and increased the living wage and took millions of people out of tax, and your Government in Scotland asked that the wages cap be lifted in the public sector simply so you could tax people more.
European Union (Withdrawal) Bill
Bill Grant ExcerptsWednesday 6th December 2017
(6 years, 11 months ago)
Commons ChamberRead Full debate European Union (Withdrawal) Act 2018 View all European Union (Withdrawal) Act 2018 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Committee of the whole House Amendments as at 6 December 2017 - (6 Dec 2017)
Tom Brake
I agree absolutely. That is why new clause 17, which the hon. Gentleman moved, is not otiose at all. It would put people on the spot: they would have to vote, hopefully for a figure. I hope the Government will want to do that, in the name of accountability and transparency. We need a figure, because there is a real risk. We have seen press reports that some arrangement will be reached whereby the Government and the leading leave campaigners within the Government will be saved the embarrassment of a very large—£45 billion to £50 billion—figure being put into the public domain. As several Members have said this afternoon, that is the down payment, not the final divorce settlement.
Bill Grant (Ayr, Carrick and Cumnock) (Con)
Speaking as one who voted to remain, I was disappointed on that Friday morning, but I accept the will of the people. Is the right hon. Gentleman suggesting that we ignore that decision made by the people of the United Kingdom?
Tom Brake
I am absolutely not doing that. That is why I just referred to the idea of having a vote on the deal. The whole point of that is to have a public popular vote. We, the Liberal Democrats, have made it clear from the outset that the only way democratically to answer the question posed by the marginal result on 24 June last year—52% to 48%—is through a vote on the deal for everyone in the country. Before the hon. Member for Nottingham East (Mr Leslie) intervened, I was talking about current polling. The Survation poll suggested that 50% of the population now support the idea of a vote on the deal, and only 34% oppose it.
Tom Brake
The British public cannot but note the incompetence that our Government have shown. Whether they were leave or remain supporters, when they see a Government in chaos, conducting negotiations in a cack-handed manner, it is not surprising that they are beginning to worry about the impact of Brexit.
Bill Grant
The right hon. Gentleman mentions impact assessments. I wonder whether our 27 friends in the EU might do a retrospective impact assessment of the time when David Cameron went to Europe to ask for some concessions on our arrangements as a member of the EU. He went for a basket of bread and came back with a basket of crumbs. The impact assessment should be directed at them. We would not be where we are today if things had been different. We should ask ourselves who has brought us to where we are. The answer is our friends in Europe.
Tom Brake
We are here today debating the impact that the hon. Gentleman’s Government will have on every single man, woman and child in this country by pursuing a hard Brexit agenda. I do not think he believed what he was saying when he tried to shift the blame to the EU for what happened to David Cameron’s negotiations. However, I made the point earlier that if the EU had been faced with the realistic prospect of the UK leaving, I think it would have been much more amenable to making more substantial concessions.
Hon. Members may be pleased to hear that I am about to conclude—[hon. Members: “Hooray!] Thank you. Apparently, Brexit is about taking back control. We therefore need to ensure that new clause 17 is put into statute so that Parliament has the opportunity to take back control and demonstrate whether we think that the down payment of £45 billion, £50 billion or £55 billion is a price worth paying for the views of a relatively small number of Brexit-obsessed Conservative Members of Parliament.