European Union (Withdrawal) Act

Charlie Elphicke Excerpts

Monday 14th January 2019 Commons Chamber

[Dr Fox]

I will give way in a moment.

The UK has an excellent economic success story to tell. Since a Conservative-led Government came to power in 2010, exports have grown by 38.1%, at around 6% per year, driven by an increase in services exports of 54.8%. We sold some £618 billion-worth of goods and services in 2017, up 10.9% on the previous year. New figures released last week by the Office for National Statistics revealed that exports of goods and services in the year to November 2018 were worth £630 billion, growing by £13.9 billion since the previous year. There have now been 32 consecutive months of exports growth.

As the UK considers future free trade agreements with the likes of the United States, Australia, New Zealand and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership countries, goods exports to those countries continued to boom. To the USA, they were up to £54.9 billion; to Australia, up to £5.1 billion; to New Zealand, up to £869 million; and to CPTPP countries, up to £28.4 billion. There was other notable goods exports growth to non-EU markets—up 29.2% to Nigeria, up 27.3% to India, and up 18.5% to Thailand. That news comes as London retained its position as the top tech investment destination in Europe earlier this week. According to PitchBook and London & Partners, the capital received £1.8 billion-worth of tech investment in 2018—more than Berlin and Paris combined. So much for the failure that would result from a vote to leave the European Union.

[Charlie Elphicke (Dover) (Con)]

Is not the key prize of leaving the EU that this country will be able to do trade deals around the world? If we adopted the advice of the Labour party, which is not to leave the EU in any meaningful way, we would not be able to do any trade deals across the globe.

[Dr Fox]

I will come to the specifics of the freedom to negotiate free trade agreements and the Opposition’s policy on that. The point I was making was that when we voted to leave the European Union, we were told that the very act of voting to leave would result in massive job losses, a loss of investment in the United Kingdom, a collapse in confidence and a recession in the UK economy. Nothing could be further from the truth. We have created jobs. We have seen record inward investment, and we have seen our exports rise to record levels.

--- Later in debate ---

[Barry Gardiner (Brent North) (Lab)]

For many months, we have been confronted with a series of choices and a series of false choices. The country had to choose whether to leave or remain. Those in the Cabinet had to choose whether to leave or remain in the Cabinet. For many Government Members, the choice has become whether to leave with or without a deal. For many Opposition Members, the choice has been whether to call for a second referendum or to accept the first.

Many famous figures have been quoted since we started our debate back at the beginning of December, but these are the words that keep coming back to me: it is not our abilities in life but our choices that define who we truly are. For all the heart searching and the division that these questions have caused, I am convinced more than ever that the real divide in our country is not between those who voted to remain and those who voted to leave but, as the leader of my party said last week, between the many who do the work, create the wealth and pay the taxes, and the few who set the rules, reap the rewards and so often dodge paying the taxes. The real choice is choosing whose side we are on when we see injustice, unfairness and inequality. In answer to that question, my party—the Labour party—has always throughout its history had one and only one answer. As the party of the many, we seek to heal the appalling divide that we now see in our society.

The speeches that have moved me in the long course of our debate since December were those like that of my hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell), who explained that his constituents were not interested in the processes and the amendments. He said:

“They want to know how they will feed their kids and heat their house, and how they will get to work if there is no bus. How will they make ends meet if they have to move from their current benefit on to universal credit?”

That view was intriguingly echoed from the Government Benches by the hon. Member for Plymouth, Moor View (Johnny Mercer), who said:

“The vote to leave was in no small part a cri de coeur from millions of people who feel that the powers that be in Westminster no longer know, let alone care, what it feels like to walk in their shoes…At every level, there was a direct correlation between household income and the likelihood to vote for leaving the EU.”—[Official Report, 6 December 2018; Vol. 650, c. 1144-1159.]

The social divide in our country is real. I agree with my colleagues who say, “That was not caused by the European Union.” That is true, but nor did the European Union provide a shield against it. It will not be solved if we become poorer by leaving the EU, but while our country has been a member of the EU, the experience of those millions of people has been the loss of secure jobs, the hollowing out of their communities, and years of austerity and harsh social policy. That is why remaining in the EU does not appear to them to be a solution to the inequality we face.

Cri de coeur it may have been, but those people will feel nothing but anger and disgust for us as politicians if we turn around now and patronise them by ignoring and reversing on the message they gave us in the referendum. My good friend the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) expressed that with an eloquence we rarely hear in the Chamber when she said:

“The right to be heard is a key battleground in the history of our country, and it is at the heart of the age-old division between those who labour in silence and those who speak from a gilded platform.”—[Official Report, 4 December 2018; Vol. 650, c. 832.]

My God, I wish I had said that.

When the referendum result came in, those who voted to leave finally felt that their voices had been heard. The House has to understand that despite the social chapter and the good will of our MEPs, the EU did not present itself as a champion of the voiceless. It was against that backdrop that the Prime Minister had an opportunity to put together a future that met the aspirations of those voters. She could and should have recognised that when our fellow citizens are divided 52% to 48%, it is the time not to go back in the political bunker but to reach out. She should have reached out and tried to build a consensus across Parliament that would have united our country. That would have been leadership, but instead she doubled down, put her party interests before the country and tried to appease the European Research Group.

I do not deny that the Prime Minister has shown steel and determination, but there is a point at which steel and determination become obstinacy and recklessness, and she has gone far beyond it. The Labour party consistently argued that before triggering article 50, Parliament must be properly consulted on, and fully involved in, the impact assessments, the right to a meaningful vote, the deal and the financial modelling. We argued that Parliament had the right to see the full legal opinion prepared by the Attorney General. The Prime Minister’s refusal at every stage was a blunder that resulted in an achievement unique in 1,000 years of our history in this place: a Government being held to be in contempt of Parliament. That is ironic, given that Brexit was supposed to be about restoring the sovereignty of Parliament.

[Charlie Elphicke]

The hon. Gentleman talks about the importance of uniting the House. Will he unite with me in rejecting the idea of a second referendum? We need to honour the referendum mandate and leave the European Union.

[Barry Gardiner]

I will conclude on exactly the point that the hon. Gentleman raises, because it is at the heart of the conundrum facing the House and the country. If he gives me time, I will get there.

--- Later in debate ---

[Barry Gardiner]

Of course it was right to look at the 15-year long-term assessment. Nobody is disputing that. Indeed, I will quote later from precisely that analysis. The problem is—and this is not just my criticism but the all-party Treasury Select Committee’s criticism—that these crucial elements of how we will transition to the future relationship have not been analysed or presented to the House.

[Charlie Elphicke]

As a member of that Committee, I share the hon. Gentleman’s concerns about the modelling, and I do believe that the Treasury needs to get better at listening, but would he agree that Labour’s various Brexit tests are not worth the paper they are written on? Indeed, I believe one member of the shadow Cabinet used a profanity in describing Labour’s Brexit policy not so long ago.

[Barry Gardiner]

Oh dear, Mr Speaker!

It is precisely this lack of specificity that has left Members across the House unable to have confidence in the Prime Minister’s deal. I probably should not call it a deal, because the future political framework document is no more than a placeholder for the future trade and security agreements that the Government hope eventually to conclude. It is both this lack of detail and the fact that the Prime Minister has wound down the clock that have significantly reduced the ability of Parliament to be properly involved in the most important decision facing our country.

When my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer), the shadow Brexit Secretary, fought and won the battle for a meaningful vote, which is now scheduled for tomorrow, he made it clear that the word “meaningful” must imply both a level of detail and clarity about what was proposed and a timeliness that would enable Parliament to amend the proposal and the Government to respond appropriately. We should not forget that originally the Government quite correctly wished to pursue the negotiations on the withdrawal agreement and the political framework side by side, but they agreed the chronology set out by the European Union.

That, I believe, was a mistake, but it made it all the more important that the negotiations on phase one be concluded expeditiously. The Government failed to do that. As a consequence, they ended up agreeing to everything that was vital to the EU in the withdrawal agreement and leaving everything about the future trade, security and political agreement that is vital to the UK to fall into a thin wish list, with words such as “the parties envisage”, “the parties will explore”, “the parties will use their best endeavours”.

The truth is that the real negotiations that will affect our economic life and our citizens’ future security have not yet properly begun. Look at the provisions for data protection: we have lost our place on the European Data Protection Board. The Prime Minister said in Munich that staying on it was one of her objectives so that we could continue to influence the rules and development of the general data protection regulation regime that we had been so influential in setting up. We will still have to comply with the scheme, but under the political declaration the EU will “start the assessments” of whether it should recognise the UK as a fit regime and will endeavour to reach a decision by 2020.

It is the same with REACH and the chemicals regulations: these are areas in which the EU is leading the world and in which we were leading the EU. No longer—our chemicals industry has spent more than half a billion pounds registering more than 6,000 chemicals with the EU’s database. The Government are now asking it to re-register every single one with our own Health and Safety Executive because we will no longer have access to that EU database. It is the same for financial services, where we are talking about equivalence, not even mutual recognition: the EU will start assessing whether it can declare our regulatory and supervisory regime is equivalent only after the withdrawal date. Then it says that it will try to reach a decision before the end of June 2020. Well, how very good of it.

The hon. Member for East Surrey (Mr Gyimah) spoke with great clarity and from his own bitter experience of negotiating with the EU when he advised the House:

“We must be clear-eyed as we go into these negotiations because they have been set up for failure. The EU will manage the timetable, it will manage the sequencing of the negotiations, it will set the hurdles and it will tell us when we can progress to the next stage. That is what happened in the first phase of the negotiations and that is what will happen in the second phase. We will always be in a position in which we have to walk away or fold”.

The hon. Gentleman was clear about what he thought would happen, from his own experience of negotiating Galileo. He said:

“we will always fold because the clock will be ticking.”—[Official Report, 5 December 2018; Vol. 650, c. 920.]

I agree. If we give the green light to the Prime Minister’s proposals tomorrow, we will end up not with the unique agreement that the future framework dangles before us, but with a free trade agreement dictated to us by the EU. We will have a long and difficult road to a future trade agreement that will not solve the economic problems we face or heal the divisions in our society. In the weeks since the Government called a halt to this debate, the US ambassador put to bed any idea of a quick and massive trade deal with the Americans. I do not usually find myself in agreement with the Trump Administration, but the assessment made in Washington that there will be little scope for a major trade deal with the United States is one with which I wholly concur.

The future political framework sets out that

“the United Kingdom’s commitments on customs and regulatory cooperation, including with regard to alignment of rules, would be taken into account in the application of related checks and controls”.

There is nothing remarkable there, really—it is what we in the Opposition have been pointing out for a very long time. If we want a strong trade relationship, the facility of market access must be proportionate to regulatory alignment.