UK’s Withdrawal from the EU

Caroline Spelman Excerpts

Wednesday 27th February 2019 Commons Chamber

[Dame Caroline Spelman (Meriden) (Con)]

Thank you, Mr Speaker. To be honest, I was not expecting to be called quite so early in the debate, so I prepared a relatively short speech, having been conditioned by the time limits that have usually pertained in these debates. So I do not expect to detain the House for too long with my observations.

I begin by picking up where the right hon. and learned Member for Holborn and St Pancras (Keir Starmer), speaking for the Opposition, left off. In his final words he acknowledged that something important has changed. Indeed his colleague, the right hon. Member for Birkenhead (Frank Field), intervened earlier in the debate to say that the atmosphere is changing, and I think he is right. The pragmatism and courage the Prime Minister showed yesterday in making her statement is a very important change. I also welcome the Brexit Secretary’s recognition that, when my amendment carried on 29 January, Parliament demonstrated a clear majority against no deal. I listened very carefully to him speaking on the “Today” programme on Radio 4 this morning, when he set out that, if that majority should be restated, and if the meaningful vote did not carry before 12 March, Parliament would have an opportunity to vote on an extension to article 50 the following day. I am pleased to see that the will of Parliament will now be respected.

I absolutely agree with the deputy Prime Minister that the best way to avoid a no-deal Brexit is to vote for a deal. I did just that on 15 January and I will do so again when a deal is next put. I really do appeal to colleagues across the House to do the same. Agreeing a deal would help to ensure an orderly Brexit, which is essential to protect jobs. I have been absolutely consistent on my motivation on this issue, which is to protect the jobs and livelihoods of my constituents and those of my colleagues.

[Peter Grant (Glenrothes) (SNP)]

The Prime Minister has indeed repeated ad nauseam that the way to avoid no deal is to vote for her deal, but is it not the case that the way to avoid Parliament voting against her deal would have been to talk to Parliament a year ago to find out what kind of a deal would be acceptable to the vast majority of Members of this House?

[Dame Caroline Spelman]

As an experienced former commercial negotiator—I know that the hon. Member for Birmingham, Erdington (Jack Dromey) is one of those as well—I have learned that, in difficult negotiations of this kind, it is no good harping on about the past. We have to focus on the future and to be relentlessly optimistic and bring good will to the table.

Getting back to the subject that is closest to my heart, I sounded the alarm months ago about the risks to the car industry of a no-deal Brexit. Many workers in my constituency have already lost their jobs, and more recently we heard the sad news about Nissan and Honda. The loss of jobs is devastating, but far more will be risked if auto manufacturers leave these shores. The chairman of Unipart, John Neill, said in the weekend Financial Times:

“If we lose the automotive industry, we lose one of the most powerful drivers of productivity and a powerful source of industrial innovation”.

The UK is now the ninth biggest manufacturing country in the world and we just cannot afford to lose this critical industry.

A no-deal Brexit threatens not only our car makers. Last night, representatives from the CBI, Next, Bosch, Ford, the TUC, Make UK—formerly the EEF—the Food and Drink Federation, the Investment Association and Virgin Media, to name but a few, spoke to a large number of MPs at an event in Parliament. All those organisations fear the chaos of a no-deal Brexit and implored parliamentarians to come together and agree a deal. Those colleagues who think that leaving without a deal is in the national interest must answer the concerns of the industries that millions of jobs depend on.

Chris Cummings, chief executive of the Investment Association, which represents firms collectively managing around £7 trillion, told MPs last night that £19 billion had left the United Kingdom since the referendum. The Investment Association can measure that, because it involves its members. The current run rate of this capital flight is approximately £2.4 billion each month, so the notion that no deal has already been priced into the markets is simply not true. The full consequences have not yet been accounted for.

The human cost of no deal is not just jobs and livelihoods today, which are very important, especially in constituencies such as mine; it will also impact the value of people’s pensions and savings in the future. Having touched on pensions, I want to make a point that is relevant to amendment (b), which my right hon. Friend the Secretary of State has said that the Government will accept. Colleagues might recall that I have also sounded the alarm about the plight of UK pensioners living in other EU countries, and especially about the provisions for their healthcare. If the United Kingdom were to leave the EU without a deal, there are at present no provisions in place to ensure that their healthcare would be paid for. Given the size of the contingency fund of taxpayers’ money that the Government have had to make available for the risk of a no-deal Brexit, I suggest to my right hon. Friends that some portion of that could be used to bridge the gap for UK citizens in Italy, Germany, France and Spain who are already receiving letters from the authorities warning them that their healthcare costs will not be covered from 29 March. That is a source of real anxiety and human cost to the people concerned.

Businesses cautiously welcomed the Prime Minister’s announcement yesterday, which has the capacity to take away the threat of no deal on 29 March, and the director of the CBI described it as a “glimpse of sanity”. She called on the Government to permanently rule out no deal to provide the certainty that business needs. That would de-risk the situation and create the space to secure a pragmatic deal. People often confuse risk with uncertainty, because a binary choice between a deal or no deal with 15 days to go is a high-risk situation, which creates uncertainty. The Prime Minister’s pragmatic response yesterday helped to reduce that risk and creates the space to secure a deal.

The contingency planning for no deal has already cost business millions and the taxpayer billions. Pfizer alone has spent £90 million on no-deal preparations, and that money cannot then be invested or directed to the frontline, so jobs will be lost in the end. The Federation of Small Businesses reports that 85% of its members are not ready for no deal and, as somebody mentioned earlier, very small businesses do not have the capacity to prepare for a no-deal scenario in the same way as some larger ones can.

Last night’s publication of the Government’s assessment of the state of preparedness for no deal did not provide a lot of reassurance on that, so it is time to be pragmatic—the Prime Minister has taken a lead on that—and to deliver an orderly Brexit. We need to come together across parties to try to get a deal over the line. If we cannot do that, we will fail the nation.

If MPs cannot bring themselves to put the national interest first at a time like this, they should consider the risks we face to security, freight delays, air traffic control, visas, food, medicine and energy shortages, healthcare for UK citizens in the EU, scientific research and educational exchange. We have heard more and more about those things, and all that disruption is having and will have an impact on the people whom we represent. As demonstrated on 29 January, there is a clear majority to rule out no deal, and I expect that that majority will increase at the next opportunity. However, we cannot just stand against something; we must urgently build a consensus for a deal that we stand up for in the British national interest.

It is clear that businesses need a deal to deliver frictionless trade and customs co-operation. Are the parties really so far apart on some form of customs partnership? The 2017 Conservative party manifesto mentioned having a special relationship based on a customs arrangement, and the official Opposition are calling for a customs union, so I feel that we are within touching distance if there is a determined effort to reach a consensus.

[Lady Hermon]

I would be delighted to hear the right hon. Lady encourage those on the Front Bench to confirm that she and her right hon. and hon. Friends will be allowed a free vote in the event that the Prime Minister again does not win the meaningful vote if we have one before the middle of March. Will the Conservative Government allow Conservative Members to have a free vote in the event of a significant decision about taking no deal off the table?

[Dame Caroline Spelman]

I cannot commit the Government to that, but it is clear to the House that these are not normal political times. I do not envy the job of my party’s Chief Whip, which must be one of the most difficult jobs on the planet at the moment. The main parties have difficulty in operating as we normally would, and much of what has been achieved has been achieved by building cross-party alliances. I think the public feel reassured when they see that happen, leastways my constituents and members of my party have told me that they like to see us working together in the national interest to try to bring about a resolution to this process, because we need it sooner rather than later.

With good will and determination, I believe we can get there and secure the new relationship with Europe for which people voted. I believe we will enjoy trading on preferential terms with our largest market, while being outside the constraints of the EU institutions to which many object today. That is what more than 17 million people voted for, and that reality is now within our grasp.

Whether Brexit is delivered on 29 March or is delayed for a few months—I am no great fan of an extended delay, as delay means uncertainty and will cost businesses money—it is up to us to back a deal that delivers certainty and protects prosperity and work. I therefore urge colleagues from all parties carefully to consider the amendments before the House today. More than that, as the debate continues in this place, we must now work more closely together than ever before to deliver Brexit.

[Several hon. Members rose—]

--- Later in debate ---

[Stephen Gethins (North East Fife) (SNP)]

Thank you, Mr Speaker.

Here we are for yet another debate and yet more votes as the clock ticks towards leaving the European Union on 29 March, and towards a no-deal Brexit and a cliff edge that everyone knows will be disastrous and damaging. From day one, this has been a lesson in gross irresponsibility, particularly from the Government.

Our amendment (k) is simple and straightforward: it would take no deal off the table altogether. The Prime Minister was uncharacteristically clear in her statement yesterday when she said we will have a vote on 13 March to take no deal off the table for the end of March. Our amendment simply goes one step further.

We know from public statements and from what we hear—Ministers will be well aware of this—that even members of the Cabinet and officials are warning of the devastation that no deal would bring. Everybody knows. This is not a negotiating tactic; it is simply a tactic to hold a fracturing Conservative party together. We have a Government in peacetime who we know are preparing for medicine shortages and food shortages, and who we know have discussed martial law and civil unrest. That is deeply disconcerting to everyone, and it underlines why no deal must be taken off the table.

Our amendment is not just something that the Scottish National party is calling for, and I am grateful to colleagues from the Green party, Plaid Cymru and the Liberal Democrats for backing it. I know that colleagues from the Labour party and the Conservative party are calling for it, too, including the right hon. Member for Meriden (Dame Caroline Spelman) in the previous speech. We must take no deal off the table altogether, which is why this is such a simple amendment.

[Dame Caroline Spelman]

I should have made it clear to the House that, having been reassured by what the Minister said today and by the consistency with which he said it, I will not be pressing my amendment.

[Stephen Gethins]

I thank the right hon. Lady for that clarification. The amendment standing in my name and that of my colleagues will be pressed to a vote, because we think that as the clock ticks we cannot wait for another two weeks. We have been waiting for “another couple of weeks” or for “another few days” for months and years now. This House needs to take a bit of responsibility for the situation in which we have been left, for which posterity and history will judge us.

On the way that history will judge us, let me talk about the human element of this. I do not want to embarrass the hon. Member for South Leicestershire (Alberto Costa), but I am going to say a few kinds words about him. Three years ago, in Prime Minister’s questions, he asked the Prime Minister not to make him vote against his parents’ interests. We back his amendment about EU citizens, which he has rightly tabled. We back him, and we think he is doing a brave and decent thing. I note the remarks made by former colleagues of his such as Lord Duncan of Springbank about how valuable they thought it was working for him. I hope I have not damaged his future political prospects too much by saying that, but I remark on the decency of what he is trying to do, his own personal situation and the bravery of what he has done today.

What I find incredibly striking is that we have a Government where collective responsibility is breaking down, where a Prime Minister remarks that she does not want a Cabinet full of yes-men because she cannot get collective responsibility and where Ministers have been able to say whatever they like, regardless of what Government policy is, yet you end up sacking a member of Government for agreeing with you. What kind of situation are we in? This is an extraordinary set of circumstances in which the Prime Minister fails to sack Cabinet members for disagreeing with her publicly but sacks a member of the Government whom she has agreed with, whom the Chancellor of the Duchy of Lancaster agreed with at the Dispatch Box, although he is not in his place at the moment, and whom the Home Secretary found himself in agreement with this morning. That is an extraordinary state of affairs. Do not worry; I am sure that the hon. Member for South Leicestershire will return to disagreeing with us on other occasions, but I salute what he has done today and the way in which he has conducted himself, with a common decency that we too rarely see in this Brexit debate.

We get told about “Project Fear”, but it is not that when it is a matter of fact. One in three businesses is planning to relocate some of its operations and one in 10 has done so. The UK is seen as a bad choice for investment. The global chief investment officer at UBS Wealth Management has said:

“The consensus among those investors is that the UK is uninvestable at this point”.

That is not good for anybody. We also have a decline in our public services, where we are seeing a dramatic decline of 87% in the number of applications from European economic area nationals for UK registration, according to the Nursing and Midwifery Council. That is a crucial public service, where EU nationals fill gaps in the workplace to provide it. So much damage is being done by this threat of a no-deal. Our amendment is a simple one and I hope that Members will back it, because it is straightforward and it will help to take this away.

--- Later in debate ---

[Mr Speaker]

We come now to amendment (c) in the name of the right hon. Member for Meriden (Dame Caroline Spelman).

[Dame Caroline Spelman]

Not moved.

Amendment made: (b), at end, add

“; and requires the Prime Minister to seek at the earliest opportunity a joint UK-EU commitment to adopt part two of the Withdrawal Agreement on Citizens’ Rights and ensure its implementation prior to the UK’s exiting the European Union, whatever the outcome of negotiations on other aspects of the Withdrawal Agreement.”—(Alberto Costa.)

Amendment proposed: (f), at end, add

“; and further notes in particular the commitment of the Prime Minister made in this House to hold a second meaningful vote by 12 March and if the House, having rejected leaving with the deal negotiated with the EU, then rejects leaving on 29 March without a withdrawal agreement and future framework, the Government will, on 14 March, bring forward a motion on whether Parliament wants to seek a short limited extension to Article 50, and if the House votes for an extension, seek to agree that extension approved by the House with the EU, and bring forward the necessary legislation to change the exit date commensurate with that extension.”.—(Yvette Cooper.)

Question put, That the amendment be made.