EU Exit: Devolved Governments

Catherine West Excerpts

Thursday 21st July 2016 Westminster Hall

[Catherine West (Hornsey and Wood Green) (Lab)]

It is an honour to contribute under your chairmanship, Mr Bailey.

It is quite right today for the devolved regions of the UK to exert influence, particularly as the democratic mandate in favour of their remaining in the EU is so strong. I do not need to welcome the new Minister—we have already been in this Chamber debating Gibraltar this week, and some of the arguments are not dissimilar—but I would highlight the lack of planning in advance of the vote on 23 June. It seems rather irresponsible for a Government who knew a year in advance that they were going to have a referendum not to put any preparations in place. That is unforgivable.

May I thank my hon. Friend the Member for Edinburgh South (Ian Murray) for securing this debate? I am pleased that it will be followed by one in early September, as soon as we return, so that we can have the argument at greater length, once the team has had some time to establish itself and maybe recruit some negotiators. My hon. Friend was quite right to say that many of us are disappointed to even be having this debate. There certainly was not a “punch the air”, independence day feel following the result in my constituency, where 75% of people voted to remain in the EU.

We know what the impact has been on the economy, in terms of the volatility produced and IMF forecasts being revised downwards. The impact has been felt particularly in low-income parts of the UK, producing the opposite result to what one would have thought. There is a lot more political work for many of us in the House of Commons to do—not necessarily in this place, but in those communities.

My hon. Friend was also right to emphasise the importance of protecting public services and to comment on the currency options, about which there is a lot of uncertainty, and on our future relationship with the EU where young people are concerned, particularly in terms of university funding and in science, research and development. I am pleased that Lord Falconer, who is an expert in these matters, and Lord Kerslake will be trying in the other place to establish a way forward, to help our deliberations not only in the devolved Administrations but here in Westminster, so that we can move forward with some kind of consensus.

I was very pleased to hear the hon. Member for Ross, Skye and Lochaber (Ian Blackford) mention the 173,000 EU residents living in Scotland. Indeed, many Members of Parliament across the UK have been contacted by EU citizens who not only feel a lack of certainty about their jobs and livelihoods, but feel that they were used as a bargaining chip in relation to expats living abroad. This is a quite unsatisfactory situation and one that I am pleased we have debated twice in the Chamber. I am sure we will be debating it again in the autumn.

[Ian Blackford]

What has changed since we had those debates in the Chamber is that we have a new Prime Minister. It would be good if the Government now reflected on the debates that have taken place and the uncertainty that exists for all EU citizens living throughout the UK. Can we not remove that cloud of uncertainty for them, so that they feel welcome, as they are, and can look forward to having a future as part of our communities?

[Catherine West]

The hon. Gentleman makes an excellent point. Sadly, it was the Prime Minister, when she was in her Home Office role, who failed to provide that clarity. It is down to us to put more pressure on the Government in order to create clarity. Does the hon. Gentleman agree that we are seeing a slightly negative climate in relation to EU citizens and those who come from abroad?

[Ian Blackford]

indicated assent.

[Catherine West]

I am an immigrant myself, and there is a slight sense that people are not welcome. Indeed, we have seen an increase in violent abuse against people from abroad. All Members of this House certainly would want to stamp that out; I think we are united on that point.

My hon. Friend the Member for Llanelli (Nia Griffith) made some excellent points about agriculture and fisheries. It is very important for Welsh farmers to be right at the front of these negotiations. I am sure that she, through her offices, will be making the point again and again about the importance of the tariff situation being clarified as soon as possible for basic products such as fish, beef, lamb and other exports. We know what a fragile situation many farming communities find themselves in. It is crucial that we in this House put their case again and again, because a lot of false arguments were made in the debate on the referendum. Farmers were told they were going to get part of the £350 million a week, as were the NHS and a number of other priority areas. We all know that money cannot be spent twice. We seek urgent clarification on agriculture, which is such a precious sector and yet is constantly being eroded and corroded. I look forward to the Minister clarifying his position on that.

I was also pleased to hear my hon. Friend the Member for Llanelli speaking in support of universities in Wales. We know what a crucial area of the economy education is as an export for Wales. There is a question mark over the position of EU nationals throughout Wales, be they teachers, students or in the workforce, where security is desperately needed. There is a delicate balance needed between the workforce not only in slaughterhouses and in fruit picking, but in more skilled occupations—for example, for nurses and doctors in the national health service. In some areas, up to 50% of the workforce are EU nationals—the right hon. Member for North East Bedfordshire (Alistair Burt) could probably tell me the exact figure. We have a very high number of EU workers across the UK, and their position needs clarification.

My hon. Friend the Member for Llanelli mentioned steel investors. We want to know exactly how the UK will replace the high-level negotiations that the EU undertakes on behalf of its members on steel. We would not want any sense of uncertainty to give an excuse to potential investors not to invest in our steel industry in Wales and other regions.

I know you want us to be brief, Mr Bailey, so I will be. The right hon. Member for North East Bedfordshire made a number of important points and was super understanding of the Minister—I am not quite as understanding; I want answers. The shortage of negotiators is appalling. That is what I meant by a lack of planning. If we know we will have to make changes, we should get people on board to do that. The Foreign and Commonwealth Office is very hard-pressed, and I would like to see much more funding for it. I am worried about the separate Departments mushrooming, competing and all saying slightly different things. That is a risk for what the right hon. Gentleman called the plumbing—I used to call it re-wiring—in terms of the way things are done, not only in the Palace but across the piece in the senior civil service. This debate has led, I am afraid, to a shopping list of issues for the Minister, but I know he will be up to the task.

Finally, as a London MP, it was a delight to hear from my hon. Friend the Member for Poplar and Limehouse (Jim Fitzpatrick). We are very proud of our new Mayor, Sadiq Khan, who is quite right to say that taxes raised in London—or a small proportion of them, anyway—could be spent more effectively in London. London Councils, which is now chaired by Councillor Claire Kober from the Borough of Haringey, says that we need to see more money that is raised in London spent on vital infrastructure such as transport and housing, because we know it contributes in the longer term to the prosperity of the whole United Kingdom.

[Mr Adrian Bailey (in the Chair)]

Minister, if you could leave a little time at the end for Mr Murray, that would be helpful.

--- Later in debate ---

[Mr Walker]

The Scottish Secretary, like many interested parties, will of course be consulted and, as part of the Government, feed into the Cabinet process to inform the Prime Minister in her negotiations. The Prime Minister said when she met the First Ministers of Scotland and Wales that, as we prepare for the process, we will fully engage their Administrations to ensure we achieve a shared understanding of their interests and objectives. Detailed discussions have already begun at an official level.

Although I am an inexperienced and new Minister, I am not a complete stranger to the devolved Administrations. As I said earlier, when I served on the Business, Innovation and Skills Committee, we visited Scotland. I also served for a number of years on the Select Committee on Welsh Affairs with the hon. Member for Llanelli—I am grateful for her welcome—and, towards the end of the previous Parliament, I served as Parliamentary Private Secretary to the Minister of State at the Northern Ireland Office. I am looking forward to renewing friendships in each of the devolved Governments over the coming months. I have also enjoyed engaging with Members for all three devolved legislatures as a member of the British-Irish Parliamentary Assembly.

Today, my right hon. Friend the Member for Clwyd West (Mr Jones), the Minister of State in our new Department, is attending the Royal Welsh show, where I have no doubt he will engage widely with the rural and farming interests of Wales mentioned by the hon. Member for Llanelli, and perhaps with some of the exporters she mentioned. The Secretaries of State for Northern Ireland and for Wales, as well as the Minister of State in my Department and the Parliamentary Under-Secretaries of State for Scotland and Northern Ireland, will be attending an extraordinary meeting of the British-Irish Council later this week. That demonstrates the UK Government’s commitment to understanding the priorities of the devolved Administrations, as well as our other partners in the Republic of Ireland and the Crown dependencies. There will be many more ministerial discussions and, I suspect—to reassure my right hon. Friend the Member for North East Bedfordshire—a great deal more parliamentary scrutiny of all sorts in the months to come.

It has been very good to hear hon. Members’ thoughts on potential settlements for Scotland, but the Prime Minister has been clear that the Union is very important to her and to this Government. She was also very clear with the First Minister that some of the ideas being brought forward are, in her view, impractical, but she is willing to listen to options that are proposed, and we will be engaging fully with the devolved Administrations. A number of hon. Members referred to Lord Falconer’s involvement. I can assure them that his suggestions will be given proper consideration.

I heard with interest the five priorities that the hon. Member for Edinburgh South set out. I can assure him that they will all be given consideration and that the Department recognises the urgency of responding on the EU nationals issue. If he consults Hansard, he will see that I asked questions on that before my appointment to this role. We all want to see, as he said, securing the position of EU nationals in this country and UK nationals in the EU right at the top of the list of priorities.

I would like to reiterate the words of the hon. Member for Edinburgh South in an article that he wrote on 4 July:

“We all need to pause and reflect whilst the picture becomes a little clearer in the coming weeks and months.”

There is a long and complex period of analysis ahead of us. That starts now, and there have been very useful contributions to it in this debate.

I want to touch on EU funding, which was particularly mentioned by the hon. Member for Llanelli. I know that many hon. Members have expressed concern about it. Let me reassure them that I recognise how sensitive and important that issue is, and it is one of the Department’s top priorities. UK Government officials have already begun talks with devolved Administrations, and those discussions have started well. Of course, as long as we remain in the EU, those payments will continue, but I recognise that for the long term there is some uncertainty. For the longer term, a whole range of decisions will have to be made, including on funding. I am happy to commit to involving devolved Ministers and officials fully in that work.

I recognise also the points made by the hon. Member for Llanelli on steel. Very importantly, this Government are working closely with Tata, bidders, the Welsh Government and trade unions to support a sale and support a long-term future for the steel industry in Wales and across the UK. The former Prime Minister spoke with Carwyn Jones on 7 July about the situation, and we will continue to work as closely as we can with his Administration.

[Catherine West]

Will the Minister give way?

[Mr Walker]

I will not, as I have only one minute to try to sum up.

As the debate has demonstrated, a range of sensitive and complex issues are involved in the UK’s exit from the EU. It will be the responsibility of myself and ministerial colleagues in the Department, working with colleagues across the UK and in the devolved Governments, to make this process work for all parts of our country. It remains the Government’s position that it is in the best interests of Scotland, Wales and Northern Ireland to remain part of the UK. We are at the start of a process of consultation, analysis and negotiation. I reiterate my commitment to involve the devolved Administrations fully in our preparations. Together, we should be able to realise a bold, positive vision of the future for the whole UK.

I welcome the comments by the hon. Member for Edinburgh South about optimism. In wishing him and all hon. Members in the Chamber the very best for the summer recess, I can assure him that the Department will be setting out optimistically to work through the summer in the interests of all parts of the UK.