European Union (Notification of Withdrawal) Bill

Chris Leslie Excerpts

Committee: 1st sitting: House of Commons
Monday 6th February 2017 Commons Chamber

[Alberto Costa]

I respect the judgments and comments of my right hon. and learned Friend. However, I read his recent article about his own thoughts on his first term in Parliament and how he would have dealt with a similar matter. I will leave it at that.

I have listened carefully to the valuable and honourable comments that have been made on this matter, particularly by Opposition Members, but I will support my Government and I will hold my Government to account in a way that I never see Opposition MPs from Scotland holding their Government to account.

[Chris Leslie (Nottingham East) (Lab/Co-op)]

It was touching to hear the hon. Member for South Leicestershire (Alberto Costa) talk about his hope and aspiration that EU nationals will be allowed to remain indefinitely, and of course he is right on that, yet he betrayed a little bit of fear of offending his Front Benchers were he to go so far as wanting to enshrine those rights in the Bill.

I commend my right hon. and learned Friend the Member for Camberwell and Peckham (Ms Harman) for new clause 57. It is important and would provide the assurances that many tens of thousands, if not hundreds of thousands, of people residing in this country require. I tabled a similar new clause—new clause 14—which I hope the Committee will support.

The context of this debate, for which more than 50 substantive amendments on distinct and specific issues of great importance have been tabled, is the contrast between the desire of Members to raise these issues and the nonsensical four hours in which they have to be considered. There is something like four minutes for each topic. Nothing could demonstrate more clearly to Members in the House of Lords how important it is that they do the due diligence on this Bill that the House of Commons will clearly not be able to do.

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[Stella Creasy]

Is it not worth noting that when it came to debating the Lisbon treaty and the Maastricht treaty, 30 days were allocated to discuss the issues in the House of Commons alone? Five days is a very poor comparison.

[Chris Leslie]

My hon. Friend is completely right. This Bill is far more important than all those treaties wrapped together, because it is about withdrawing from the European Union.

What made the situation worse was the White Paper we had from the Government. Let us not forget that it came the day after the vote on Second Reading. That was pretty shocking and quite contemptuous of the rights that the House of Commons should have. It is a lamentable document because of the lack of information it contains on so many of the important issues on which I and other hon. Members have tabled amendments.

We should use the time we have today to talk about what we need to know and to ask the Government what their plan is. That is why I will briefly go through some of the new clauses I have tabled. For the sake of argument, let us take the first one, new clause 20 on financial services. One could say that it is merely a small corner of Britain’s GDP, but it provides £67 billion of revenue for all our schools and hospitals. If we mess around with that sector in the wrong way, we will all be poorer and our public services will be poorer as a result.

New clause 20 suggests that there should be a report twice a year on where we are going on one of those questions that was not contained in the White Paper: “What is our progress towards a smooth transition from the existing open market access, where we have passports, to the new arrangements, whatever they are going to be?” The White Paper merely says, “We’d quite like to have the freest possible trade,” but it says nothing about what will happen on mutual co-operation, regulation and oversight; whether we will be able to have permanent equivalence rights for some trades; or whether UK firms will have time to adjust.

Those issues already pose a clear and present danger to our economy. HSBC says that 1,000 jobs are going to go, Lloyd’s of London is moving some of its activities, UBS is moving 1,000 jobs, and J.P. Morgan has said that potentially 4,000 jobs will go. Firms are voting with their feet already, yet the White Paper hardly touches on this question.

[Ian Murray (Edinburgh South) (Lab)]

I pay tribute to my hon. Friend for his diligence on this Bill and for tabling these important new clauses. If we boil it all down, this is not about passporting and the complicated legal framework around financial services, but about the tens of thousands of my constituents who are in highly skilled, highly paid jobs in the financial services sector and who are worried about their future employment.

[Chris Leslie]

Absolutely. When hon. Members are asked by their constituents, “What time did you have to debate financial services?”, they will have to say, “There was only a couple of hours or maybe just a few minutes. I didn’t say anything about it because of the ridiculous programme order that we put in place to curtail debate.”

[Ian Paisley (North Antrim) (DUP)]

Is it right that the hon. Gentleman talks down the City of London in this way? We all know about the threats that have been made, but not one of those jobs has left the City of London. The fact is that, given a choice between London, Frankfurt, Dublin or Paris, those companies will choose London every time.

[Chris Leslie]

I really hope that that is the case. I absolutely share the hon. Gentleman’s aspiration, but he should look at the press releases from HSBC, Lloyd’s of London, UBS and J.P. Morgan. These are not alternative facts; this is the real truth. These are people’s jobs and this is revenue for our country that we will potentially lose.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

It is not talking down the City of London to highlight the report by TheCityUK emphasising that the best-case scenario, under the Government’s plan, is for 7,000 jobs losses, but that the worst-case scenario could be more than 70,000 job losses. That is not talking the City down but making the economic case for securing the best deal.

[Chris Leslie]

These are the realities we face.

[Mr David Lammy (Tottenham) (Lab)]

Is it not my hon. Friend’s point that we are now a service economy? The service sector accounts for 88% of London’s economy, and the service sector can move. Prior to our joining the EU, we had things in the ground and we were a great manufacturing nation, but that is not the case today.

[Chris Leslie]

That is another issue that deserves a massive amount of consideration, but we just do not have the time to go through it today.

I will move on, then, to new clause 22, on competition policy—another small area of policy! The White Paper says absolutely nothing about what the UK will do, upon our exit from the EU, in respect of competition policy. It is totally silent. Will we change our attitude towards state aid for industry? What will our state aid rules be? If we make a change, will our trading partners baulk at the idea that we might be subsidising products in a particular way? Will we be undercutting their production? Would we not wish to do that? Will we take on the WTO disciplines on subsidies? Will we join the EEA scheme on subsidies? What about state aid rules, competition policy and the European Free Trade Association? This a big deal. I think of subjects that have come up recently such as Hinkley Point, the British investment bank and British steel. These are all questions we have to consider and decide upon. All I am saying in new clause 22 is that the Government should publish a report in one month on their attitude to competition policy. It is a pretty simple measure.



I have tabled other amendments that would require Ministers to set out their aspirations, within one month of Royal Assent, on other questions that will arise as we extract ourselves from some of these European partnerships, alliances and agencies. On law enforcement, for example, what will we do about Europol? New clause 111 touches on the benefits we currently enjoy from cross-border co-operation on cybercrime, terrorism, combating trafficking and other important activities. We deserve to know the Government’s approach to cross-border crime, as we do with respect to the European Police College, Eurojust, our co-operation with prosecuting authorities, the European Monitoring Centre for Drugs and Drug Addiction and the Agency for Fundamental Rights. The White Paper is totally silent on all those issues. We have no idea what the Government’s plan and negotiating stance will be, and yet we do not have the time to debate these matters properly.

[Mr Jim Cunningham (Coventry South) (Lab)]

I do not know what the Government are worried about. Anybody who knows anything about negotiations knows that each side can report back from time to time without necessarily giving away their negotiating hand. I do not know what they are scared of.

[Chris Leslie]

I think the Government might be scared of the debate. It also reflects their lack of awareness of the issues. The Government have not thought this through but instead are confronting issues as they bubble up, at a fairly random level, while giving a veneer of control—“We must not show our cards”, “I cannot give a running commentary”. Ministers use these phrases, but behind the curtain they are panicking and their feet are moving rapidly, because they do not have a clue.

[Sir Hugo Swire]

By logical extension, the hon. Gentleman wants to unpick almost every single part of EU policy, legislation and co-operation with the UK, bring it to the House and get the Government to set out what they want to do about them. How long does he think it would take to dissociate ourselves from the EU if we were to take that line—two years or 20 years?

[Chris Leslie]

It would take more than the three days that the right hon. Gentleman and his hon. Friends have given us to debate these questions. We are leaving the EU—that is what the Bill is for. He and his hon. Friends might be happy to trust the Prime Minister entirely, but Parliament is sovereign. The Supreme Court gave us this duty and said that we should do our due diligence, but the time constraints will prevent us from doing so.

I wish to raise a couple of other law enforcement issues. The big one, in new clause 177, concerns the Government’s policy on the European arrest warrant. The EAW, of course, is there to make sure we can transfer criminal suspects or sentenced persons from other countries and put them on trial here, and vice versa. The UK has extradited more than 8,000 individuals accused or convicted of criminal offences to the rest of the EU. I think of the case of Hussain Osman, found guilty of the Shepherd’s Bush tube bombing in July 2005, captured in Rome, extradited under the EAW and sentenced to 40 years. In 2014, the Prime Minister herself said that ditching the EAW would turn Britain into

“a honeypot for all of Europe’s criminals on the run from justice”.

From the Prime Minister’s own mouth! What will be our attitude towards the current level of participation? Will we want to continue with the EAW? There is nothing in the White Paper about it.

[Dr Philippa Whitford]

Is it not the agencies that will be the biggest problem? The Government describe moving everything over with a great repeal Bill, but what happens where that Bill refers to actions that depend on an EU agency, given that we will not have that agency?

[Chris Leslie]

That is the fallacy behind the reassurances to hon. Members. We are told, “Don’t worry. We can come to this in later legislation. It will all be fine. The great repeal Bill will deal with these things”.

Of course it will not. These are facilities and levels of co-operation and alliances that exist because of our membership of the EU, and yet we will not even have the time to debate the consequences.

I had better move on rapidly. On public health, what is the plan? What do the Government intend to do? Again, the White Paper said virtually nothing about a range of critical alliances, such as the European Centre for Disease Prevention and Control, as dealt with in new clause 113. During the outbreak of SARS in 2003, when the disease rapidly spread across several countries, we knew what to do because these EU-wide institutions and public health authorities were able to provide research and intelligence. There is nothing in the White Paper about the British Government’s attitude to such pan-European questions.

What will we do about the European Medicines Agency, as dealt with in new clause 115? Currently based in London, the EMA harmonises the work of national medical regulatory bodies across a range of issues including the application for marketing authorisations, support for medicines development, patents, monitoring the safety of medicines, providing medical information to healthcare professionals and so forth. Who will take on those responsibilities? What will happen? The White Paper was totally silent on that question.

[Mr Ben Bradshaw (Exeter) (Lab)]

The Health Secretary told the Health Committee the other day that he had already thrown in the towel on the EMA—that we were leaving it and giving up the headquarters in London, along with hundreds of jobs, meaning far slower approval of vital drugs in this country, and the loss of all our influence and all those jobs.

[Chris Leslie]

Yes, and, again, we have heard no strategic alternatives from the Government and have no idea what their plan will be.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

Given that the Government have said that they will pull out of Euratom, because it is part of the EU, is not the logical extension of their position to pull out of all those agencies? If so, why does my hon. Friend think they do not want to face up to it? Is it because they do not want to face up to the cost of duplicating the work of 30-odd agencies?

[Chris Leslie]

I do not think Ministers know what to say about some of these questions. They hope that because the issues are fairly low level and very specialist, nobody will spot them, but they will start to affect very many people. Myriad issues will arise.

[Mr Sheerman]

Is my hon. Friend aware that as a result of our leaving the EMA many jobs in the medical and drugs world will move out of Britain? I met people representing those interests only today, and they are very fearful of what will happen to British jobs.

[Chris Leslie]

I am afraid to say to my hon. Friend not only that he is right, but that the list goes on—the list of the consequences of withdrawing from the EU without Parliament even having the opportunity properly to debate it. Food safety is covered by the European Food Safety Authority, so we will be throwing in the towel on independent scientific advice on food chain issues and research that is currently in place through our involvement in the EFSA—and there is nothing in the White Paper about it.

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[John Redwood (Wokingham) (Con)]

rose—

[Chris Leslie]

Oh, the right hon. Gentleman knows what the plan is for the E111.

[John Redwood]

If the hon. Gentleman had read it, he would understand it perfectly as well as I do. The plan is very simple. All existing laws and requirements will be transferred into good British law. If we need a different adjudicator, that adjudicator can be selected and approved by Parliament. The great news for both of us is that nothing will change legally unless and until this Parliament debates it and wants to change it.

[Chris Leslie]

I do not know whether the right hon. Gentleman has actually left these shores and visited other countries: we do not control the sort of health insurance and health service schemes that happen in those other European countries, but we currently have a reciprocal health insurance arrangement that provides him, his family and his constituents with a certain degree of cover. That could well be ripped up because of the consequences of the legislation that we are potentially passing—without a word from the Government and with nothing in the White Paper.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

My hon. Friend makes a very important point about the E111 scheme, because that will have a practical impact on our constituents. If my hon. Friend does not get a clear answer on that, I fear that many constituents will be forced into buying very expensive travel insurance policies to make sure that they are covered while the scheme is left in limbo.

[Chris Leslie]

The consequences of this aspect and many others are myriad. I hope that the House will begin to wake up and realise that we have been sold a pup with this programme order, which does not give us enough time to discuss all this. I have to move on.

The European Chemicals Agency is another example of something that will be ditched. Companies currently have to provide information about hazards, risks and the safe use of chemicals, but we will potentially leave that agency, with nothing in the White Paper about the alternative.

Another health and safety issue is aviation. What will we do about safe skies, and the regulation of aircraft parts, engines and many other aspects? What will we do about maritime safety? What happens if shipping disasters occur on or around our shores? What is the Government’s alternative? There is nothing in the White Paper.

Another minor issue—he said sarcastically—is the environment, and we will potentially leave the European Environment Agency. New clause 120 simply asks that we have a report within a month on what the Government’s plans should be.

[Caroline Lucas (Brighton, Pavilion) (Green)]

rose—

[Chris Leslie]

I want to move on, if I may.

When it comes to education, science and research issues, we will leave the European Research Council, which is very important. Hon. Members may know about the Erasmus scheme, which means that all our constituents who currently want to study abroad for a few months can have that time recognised as part of their degree, but what will happen to that scheme? There is nothing in the White Paper. It does not say anything about students in our constituencies potentially losing out very significantly. What about satellite issues, plant variety issues, locational training and all sorts of issues?

[Seema Malhotra]

My hon. Friend is indeed making an excellent speech and highlighting the complexity of the challenges we face. He referred to science, and I had a conversation yesterday with my constituent Clare, who is a scientist and was extremely concerned about how our collaboration will work and what projects we will be included in in the future. She was also concerned about the impact on our young people. Their future is ahead of them, and in a sense we are pulling the rug out from under their feet.

[Chris Leslie]

We should have the time, the space and the opportunity to discuss the consequences for my hon. Friend’s constituent, but we will not. My hon. Friend will have to tell her constituent that we did not have enough time in the House of Commons. Fingers crossed, there might be time for the House of Lords to do some of this work and put their concerns to Ministers in the other place.

[Liz Kendall (Leicester West) (Lab)]

My hon. Friend is doing an excellent job of trying to scrutinise the implications of this Bill, yet we have less time on the Floor of the House to debate it than we would have in Committee for much less important Bills. Does my hon. Friend agree that while we want all these issues to be sorted out within two years, that might not happen, which is why we need transitional arrangements as well as a vote on the final deal, so that this House can see whether the Government have done their job properly and truly got the best deal for Britain?

[Chris Leslie]

Exactly. We need to use the two-year negotiation period wisely. We shall come on in Committee tomorrow to some of those particular issues.

[Caroline Lucas]

Does the hon. Gentleman agree that as well as having an environment policy, we need to make sure that it is enforceable? It is no good just moving it across, if we cannot bring enforcement to bear. Does he also agree with me that the European Investment Bank is a crucial issue, because it is a massive investor in renewable energy in this country? We need to know where we stand on that.

[Chris Leslie]

In that case, I will move on to new clause 122, which references the European Investment Bank. It deals with a series of economic and trade co-operation issues, which are again not referenced at all in the White Paper. Can you imagine, Mr Howarth, the Government producing a White Paper about the consequences of withdrawing from the European Union without even mentioning the European Investment Bank, in which, by the way, we currently have a 16% stake? It part-funds Crossrail and the Manchester Metrolink. This is a massively important institution, yet we are simply shrugging it off in a blasé way, saying “Trust the Prime Minister; it will all be fine”.

We should at least ask Ministers about the attitude of the British Government towards it, so I ask the Minister directly: what is the British Government’s attitude to our continued participation in the European Investment Bank? He needs to address that and other issues.

I had better move on and talk about a couple of other new clauses. I know that other hon. Members want to contribute to the debate, and it is frustrating that we do not have enough time properly to debate the issues. I am glad to see in their place a couple of hon. Members who might be interested in these things. New clauses 128 to 130 deal with the issue of the protected designation of the origins of goods and services—specifically, their protected geographical indication.

Hon. Members might well have relevant businesses within their constituencies. This is sometimes known as “the Stilton amendment”, so I am looking at the hon. Member for North West Cambridgeshire (Mr Vara). I understand that Stilton is not necessarily made in North West Cambridgeshire, but the hon. Gentleman has the village of Stilton in his constituency. Similarly, the hon. Member for Truro and Falmouth (Sarah Newton) will be well aware of the wonders of Fal oysters, which are protected under the protected geographical indication—PGI—scheme that applies to European trade. Whether they are called “the Stilton amendment” or “the Scotch whisky amendment”, the new clauses simply ask what the Government’s plan is for those protected products—much-cherished and much-valued not just where they are produced, but where they are consumed worldwide—if they lose their protected status? We could end up having knock-off Scotch whisky sold around the world without that protection. The same might apply to Scotch beef, Welsh lamb, Melton Mowbray pork pies, Arbroath smokies, Yorkshire Wensleydale, Newcastle Brown Ale and the Cornish pasty.

[Mr Vara]

As it happens, the protected status of Stilton cheese prohibits people living in the village of Stilton in my constituency from making it. They researched the cheese and found that it was originally made in the village, but they are prohibited from making it by the protected status to which the hon. Gentleman refers. When we leave the European Union, they will be able to make Stilton cheese in Stilton.

[Chris Leslie]

Finally, we get some sign of life from Conservative Members. They are finally interested in the consequences of withdrawing from the European Union. This is an issue that the House should have the opportunity to discuss. Many firms, industries and producers, on both sides of this question, will either benefit or—probably—lose out, as a result of our exiting from the European Union in this way.

[Mary Creagh (Wakefield) (Lab)]

Blessed are the cheesemakers, wherever they happen to live, but may I return my hon. Friend to new clause 112, which deals with the European Chemicals Agency, and alert him to the fact that the Environmental Audit Committee is looking into the issue? I have the 200 pages of evidence on what withdrawing from the European chemicals regulations will mean for the motor industry, the defence industry and the pharmaceuticals industry in this country, and it does not make pretty reading.

[Chris Leslie]

As my hon. Friend says, there are serious questions about hazards that could affect our constituents and substances that pose dangers because, for instance, they may be carcinogenic.

We are disappointed in the Government not only because of their White Paper, but because they are trying to gag Parliament and prevent it from debating these issues. Muzzling Members on both sides of the House on these questions means that we will end up far poorer and far worse off, and it sends a message to the Lords that they will have to do the job of scrutiny and due diligence that we were unable to do. This is our only substantive opportunity to debate the Bill. Parliament deserves more respect than the Government have shown in their insubstantial, inadequate White Paper, which does not touch on many of the questions in our new clauses. We simply want to know what they plan to do, and I sincerely hope that the Minister will answer our questions when he responds to the debate.

[Heidi Allen]

I want to speak briefly about new clauses 171, 173 and, principally, 57.

I am proud to represent my constituency, which is home to some of the most impressive academic and scientific research in the world. We attract and grow the most innovative brains, and we do that by looking outwards rather than inwards. I know that the Government have confirmed that all EU legislation will simply be transferred to UK law on the day of exit, but I feel that particular attention should be paid to planning our future academic and scientific collaborations.

New clauses 171 and 173 request reports from the Government on the future of the Erasmus+ scheme and participation in the European research area. Given that our academic and research industries are two of our greatest exports and feature heavily in the business, energy and industrial strategy, such reports should be very straightforward. We need to give clarity and reassurance to those sectors, which I know are exceptionally worried about the future. The University of Cambridge, the Babraham Institute, the Wellcome Genome Campus and the Laboratory of Molecular Biology, to mention just a few institutions in my constituency, are extremely important to national prosperity, and they deserve priority in the Government’s thinking.

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[Mr Jones]

The British people have had their say very clearly: they have instructed this Parliament that they wish to leave the European Union. I know that the hon. Gentleman does not like that result, but that is the hard fact.

We have aimed at all times scrupulously to fulfil Parliament’s legitimate need for information, and we will continue to do so. As well as keeping Parliament informed, we will pay regard to all the motions passed on the outcome of negotiations associated with the Bill—as proposed in new clause 176—just as we have already paid regard to the motions passed on Opposition days on 12 October and 7 December.

On the provisions of new clause 3 concerning information sharing, the Secretary of State has been clear since the very early days following the referendum that he will keep Parliament at least as well informed as the European Parliament as the negotiations progress. The new clause asks us to reaffirm that position so that Parliament receives the same documents that the European Parliament or any of its committees receive from the Council or the Commission.

The Government are absolutely resolute that the House will not be at an information disadvantage compared with the European Parliament, but the new clause is flawed, simply because the United Kingdom Government may not be privy to what information is passed confidentially between the Commission, or the other EU institutions, and the Parliament. In the same way, the House would not expect the Government to pass all our documents relating to a highly sensitive negotiation to the other side.

What I can do, however, is confirm that the Government will keep Parliament well informed, and as soon as we know how the EU institutions will share their information, we will give more information on what Parliament will receive and on the mechanisms for that, including on the provision of arrangements for the scrutiny of confidential documents.

The second category of amendments and new clauses, which, again, I must resist, because they pre-judge the negotiations to follow, ask for formal reporting on myriad subjects or for votes on unilateral commitments. The exact structure of the negotiations has not yet been determined and may very well be a matter for negotiation itself. Therefore, setting an arbitrary reporting framework makes no sense at all. There will be times when there is a great deal to report on, and times when there is very little. The Prime Minister and the Secretary of State have already made serious undertakings as to how they will report to the House.

[Chris Leslie]

I am grateful to the Minister for giving way, because I know there are a lot of issues to be covered. However, to take just the example of the European arrest warrant, could he at least give us an indication of what the Government’s objectives are? Does he want us to stay part of it?

[Mr Jones]

Clearly, we require, and we are looking to achieve, close co-operation with the European Union on security matters, but, again, these will be a matter for negotiation, and as the negotiations progress, we will keep the House informed.

The commitments that the Prime Minister and the Secretary of State have given are important. That is why the Government published the White Paper on our negotiating position last week, with an introduction by the Prime Minister, once again stating our clear aims for the negotiations. That includes, for example, the implementation phases referred to by hon. Member for Brighton, Pavilion (Caroline Lucas)—those are part of our objectives.

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20:48

Division 137

Ayes: 284

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Labour: 214
Scottish National Party: 53
Liberal Democrat: 8
Social Democratic & Labour Party: 3
Plaid Cymru: 3
Independent: 3
Conservative: 1
Green Party: 1

Noes: 333

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Conservative: 319
Democratic Unionist Party: 7
Labour: 4
Ulster Unionist Party: 2
UK Independence Party: 1

[Chris Leslie]

On a point of order, Ms Engel. I seek your guidance on how right hon. and hon. Members can divide on some of these incredibly crucial issues. The knife in proceedings has curtailed not just debate but our opportunity to vote on such incredibly important matters as the European arrest warrant and the single market. What can be done? Why could we not have more votes on these new clauses?

[The Second Deputy Chairman of Ways and Means (Natascha Engel)]

Before I answer the hon. Gentleman’s point of order, I should say that any further points of order will bite into the next group of amendments.

The Chairs, the Temporary Chairs and the Clerks spent a long time looking at every amendment in detail over three days, and we decided that we would put the lead new clause to a Division today and then move on to the second group. I also just want to take this opportunity to say that the Committee will vote on the issue of EU nationals on Wednesday. It is not for the Chair to explain why a decision has been taken. It has been taken, and there will be no explanation of it.