Covid-19: Future UK-EU Relationship Debate

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Department: HM Treasury

Covid-19: Future UK-EU Relationship

Christine Jardine Excerpts
Wednesday 15th July 2020

(4 years, 3 months ago)

Commons Chamber
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John Lamont Portrait John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
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It is an absolute honour and a privilege to see you in the Chair, Madam Deputy Speaker, and I am very grateful to have the opportunity to speak in this SNP Opposition day debate. The SNP motion calls for an extension to the transition period for negotiations with the European Union. It is important that we are absolutely clear what the motives are for the SNP calling for that extension to the transition period. It is not about protecting Scotland’s economy. It is not about assisting the economic recovery after the coronavirus pandemic. It is all about creating further uncertainty and constitutional chaos to assist in the nationalist dream of breaking up the United Kingdom. That is the SNP’s top priority. That is its only priority. That, in fact, is the only reason that many SNP Members got involved in politics in the first place—[Interruption.] I am pleased that they are nodding in agreement. I am pleased that they are agreeing with me—we agree on something at last. Any proposal from the separatists should be considered in that context. The SNP is aggravating on Brexit simply to push its independence obsession.

There is no doubt that the impact of the coronavirus will be significant on Scotland’s and the UK’s economy, but the answer is not to add further uncertainty to Scotland’s businesses with further dither and delay on Brexit. Businesses want certainty so that they can plan for Scotland’s and the UK’s future outside the European Union. Businesses are already preparing for life outside the EU at the end of 2020. The last thing they need or want is the further uncertainty that has been advocated by the SNP today, so I fully support the UK Government’s commitment not to extend the transition period at the end of 2020, because that would simply risk further economic damage to Scotland’s economy.

I also fully endorse the massive support of more than £13 billion that this UK Government have pumped into Scotland so far during the covid-19 outbreak. This includes nearly £5 billion in furlough payments, £1 billion for the job retention scheme, the kick-start scheme, the VAT cuts, the eat out to help out scheme, nearly £1 billion in the self-employed income support scheme, hundreds of millions of pounds in business loans and increases to benefits, plus £4.6 billion in Barnett consequentials. That is a £4.6 billion boost to the Scottish Government’s budget during this covid-19 outbreak. I know that some in the SNP, including the Scottish Government’s Finance Minister, Kate Forbes, like to pretend that this support does not exist unless the Scottish Government logo is branded all over it, but if Scotland was no longer in the United Kingdom, the safety net of support that the UK can provide during this pandemic and other crises would not have been there for other parts of these islands or, indeed, for Scotland anymore.

Christine Jardine Portrait Christine Jardine (Edinburgh West) (LD)
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The hon. Member and I have disagreed numerous times about the UK’s place in the European Union and what we should do about that, but does he share my confusion about why a party that is so intent on dragging Scotland from one valuable union—indeed, the most successful economic union in history—is so intent on using another to do it?

John Lamont Portrait John Lamont
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I completely agree. The points that the SNP’s Westminster leader made earlier could have been made by anybody during the campaign about whether we should leave or remain in the EU; Nigel Farage would be proud of the arguments that he articulated. I am pleased that the hon. Lady is nodding wholeheartedly; it was a very good Farage argument that was put forward by Mr Blackford.

Let me move on to reiterate the support that has been made available by the UK Government and what that means from a practical perspective for Scots. These are not abstract sums of money that have no bearing on everyday lives in Scotland; these are people’s jobs and livelihoods, and the economic wellbeing of our families. Some 800,000 jobs in Scotland have been saved so far during the pandemic, highlighting the strength of our Union. The coronavirus job retention scheme has furloughed 628,000 Scottish jobs, and the UK Government have spent £425 million on supporting 146,000 self-employed people in Scotland through the self-employment income support scheme.

Of course, when talking about jobs, it is worth remembering that nearly four times as many jobs in Scotland are linked to trade with the rest of the United Kingdom as with the European Union. The Fraser of Allander Institute estimates that around 545,000 jobs in Scotland are supported by demand for our goods and services from the rest of the UK. That is why it is so important that we do everything we can to protect the strength of the UK single market, ensuring that businesses across the UK can continue to trade easily. Scottish exports to the rest of the UK are worth £51.2 billion, against £16.6 billion in EU exports. Whether they are in my constituency in the Scottish borders or in Eastleigh, West Bromwich, Brecon or Dudley, our businesses should be able to trade freely in every part of Britain.

The importance of the UK internal market is why the suggestion from Scotland’s First Minister, Nicola Sturgeon, that she may close the Scotland-England border or impose quarantine restrictions on people from England is so damaging to Scotland and to our economy. After the First Minister’s announcement, I had tourism businesses, B&Bs and hotels contact me to report that their customers from the rest of the UK had started to cancel their bookings because they were so worried about the border being closed and quarantine restrictions being imposed. That should concern us all, because overnight trips from the rest of the UK were worth nearly £3 billion to Scotland in 2018.

To compound matters, we had the horrific scenes on the Scottish-English border in my constituency, on the A1 north of Berwick, of nationalist protesters shouting—and I quote—“Stay the F out” at English people travelling into Scotland. These racist protesters have admitted taking inspiration from the division stoked by the SNP politicians. They were inspired by comments by SNP politicians. One of the protesters has been pictured with Nicola Sturgeon and other senior SNP figures—

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Brendan O'Hara Portrait Brendan O’Hara
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I thank my right hon. Friend for that intervention, and I absolutely agree.

Numerous opinion polls since the referendum of 2016 have shown that the desire of Scots to remain in the European Union is strengthening and hardening as time goes by, because not only are they being dragged out the European Union against their will, but it is being done by a Government who are seemingly hellbent on doing it in the most damaging and reckless fashion possible, including refusing even to consider extending the transition period. That is why I firmly believe that Scotland is moving towards becoming an independent nation.

The debate in Scotland is not now framed in terms of “should” and “could”. More and more, that debate is framed in terms of how and when Scotland becomes an independent nation. As my right hon. Friend said, the polls bear this out. The highly respected pollster Professor John Curtice of Strathclyde University said just last week:

“Never before have the foundations of public support for the Union looked so weak.”

That is because, increasingly, those Scots with no particular emotional attachment to the United Kingdom who in 2014, after careful consideration, decided against independence for whatever reason are changing their minds. Those Scots who, maybe with a heavy heart but in good faith, decided in 2014 that independence was a step too far and who were perhaps seduced by the idea of being in a partnership of equals or liked the idea of Scotland staying and leading the United Kingdom, who believed the promises that their Parliament in Edinburgh would become the world’s strongest devolved Parliament, or who truly believed that only by sticking with the United Kingdom could their citizenship of the European Union be guaranteed are changing their minds. Opinion poll after opinion poll tells us that they are changing their minds in droves.

That crucial, pragmatic group of people who will look at an issue, weigh up the pros and cons and come to a considered decision based on what is best for them, their families, their communities and the country are increasingly saying that an independent Scotland is the only viable option, particularly when set against the madness they see unfolding here. They are doing it quietly. They will not shout about it. Mercifully, they will not go on Twitter and have a fight about it. They will do it, as they have done in the past, by looking at the available options and doing what they honestly believe is the right thing.

Let us be clear: the United Kingdom, by its actions since 2014, has brought about its own demise. The United Kingdom is the architect of its own downfall. Every bit as much as the SNP, under the exceptional leadership of First Minister Nicola Sturgeon, has been pulling Scotland towards independence, so this Government have been actively pushing Scotland towards the exit door. I am sure that in decades to come, scholars and academics will produce theses on the end days of the United Kingdom. They will debate whether this UK Government were utterly incompetent and arrogant to the point of stupidity or whether this was in fact all part of a great Tory plan.

For what it is worth to students of history reading Hansard decades and centuries in the future, I reckon at the moment that it is probably the former. But I can see how someone could come to conclude that it was the latter. If the United Kingdom Government were serious about preserving the Union in 2014, following the narrow no vote in the referendum, they could have decided to make good on their promises to Scotland. If they were serious about preserving the Union in 2015, they could, following the election of 56 SNP MPs to this place, have decided to ensure that in any future EU referendum Scotland’s voice would be heard and Scotland’s decision respected.

If the Government were serious about preserving the Union in 2016, after every single part of Scotland voted to remain in the European Union, they could have decided that the hard, no-deal Brexit was off the table. If they were serious about preserving the Union in 2019, after they lost more than half their Scottish MPs and saw their vote share in Scotland collapse, they could have decided not to indulge in a shameless power grab, trying to seek back the powers of the Scottish Parliament. If they were serious about preserving the Union in 2020, having seen Scottish public opinion swing towards independence, they could have rowed back from the brink of Brexit calamity, agreed to an extension period and sought to salvage something from the wreckage that is Brexit.

But no, the Government did not. Such is their arrogance and misplaced self-assuredness, and so blind and disdainful are they about what is happening across a border that only last week they told us did not actually exist, that they, like zealots, are ploughing on with the project regardless of the inevitable consequences. It would even appear that their oft-vaunted precious Union is expendable for the project. If someone is a Scottish farmer terrified at being put out of business when the UK is flooded with cheap, low-grade meat and poultry from America, or a Scottish hotelier tearing their hair out wondering where next season’s workers are to come from, or a Scottish health board worker trying to work out how to recruit in subsequent years EU nationals to work in our health and social care sector, or a young Scot seeking to live and work in other European nations and take advantage of the opportunities that every single person in this room today has taken advantage of, then that is just too bad. The bottom line is that their voices do not get to be heard. Their opinions do not get to be counted; their fears and concerns are just not important enough to matter. The only thing that matters to this Government is the project.

Christine Jardine Portrait Christine Jardine
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Will the hon. Gentleman give way on that point?

Brendan O'Hara Portrait Brendan O'Hara
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No, thank you.

The Government’s insane, narrow British nationalism may well involve driving the UK off a cliff and seeing what emerges from the wreckage. I suppose that in that respect they have just the man at the wheel of the bus, skulking around between Downing Street and Barnard Castle, but let me tell the House that Scotland is not coming with them.

This week, I and probably millions of others were left slightly bewildered as the UK Government displayed once again their love of a totally meaningless, utterly vacuous three-word slogan. This week’s classic was “Let’s get going.” But perhaps, on reflection, as three-word slogans go it is not that bad, because that is exactly what Scotland is planning to do—we are going to get going, we are going to get out of this deeply damaging Union, into a future as an independent member state in a Union of equals with the European Union.

I honestly believe that Scottish independence is an idea whose time has come, and thankfully there is precious little that Government Members are going to do about it.

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Drew Hendry Portrait Drew Hendry
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The hon. Gentleman is a former Minister who resigned because his boss’s boss took a trip to Barnard Castle and so broke the covid regulations, so fair play to him, but of course that is the problem. He has left a legacy there and it is now an issue that the Government have to plan for that second wave. To clarify, in Scotland we are planning for elimination of the virus. That is the right thing to do.

We are facing a calamity. The Minister, who is not in her place now, said that she wanted us to focus on the policies of the UK Government—or should we say promises, or rather broken promises. For communities around Scotland, especially in regions such as the highlands and islands, there is another pressure caused by this reckless course. According to research by the Conference of Peripheral Maritime Regions, locally we will lose over £160 million and, Scotland-wide, over £800 million. That is the extra punch that our communities are losing out on in terms of EU structural funding. This is funding that underpinned further education, youth employment, smart cities, connectivity for islands and communities, small and medium-sized enterprises, apprenticeships, regeneration, innovation, productivity, social inclusion, and a whole lot more.

People in Scotland, across our cities, towns, villages and communities, are now seeing that the promises will not be delivered through the so-called shared prosperity fund, because it is not coming. Communities and charities have used the EU funding to benefit people, especially the most vulnerable and disadvantaged. They have been waiting now for years to find out what funding will be available post-Brexit, and in spite of promise after promise it is becoming clear that come January there will be none. The Minister had the opportunity to answer the question from my right hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford) about the shared prosperity fund earlier, and she chose not to do so.

I have been asking for clarification on this point since 2017, as have many others. A succession of Ministers, including the Prime Minister, have all promised details. They said they would consult widely. In 2018, the mantra was: “before the end of the year”. Time and again, they repeated that. In 2019, it turned into “shortly” and “soon”, and in 2020, it is morphing into “in due course”. In fact, we are now at the end point. There is no funding in place. Nobody can bid for anything as we enter 2020. All those promises have been broken, it has all been a glaik.

If the fund ever is established—let us imagine that it could happen somehow—it looks like yet another power grab will be at centre of it, with, ironically, as is proposed, another unelected body telling the devolved Parliaments what to do about the funding. In Scotland’s case, these should be decisions for the Scottish Parliament. It is no wonder—this has been repeated, because people are noticing these things—that polling in Scotland is showing support for independence consistently above 50%. It is no wonder that people who voted no in 2014, who said, “We just can’t do it”, are now coming to me and my colleagues and saying, “You know what? It was a big mistake. We were sold a packet of goods they had no intention of delivering. If they had, we would have had some of it and we have had none of it”.

As this Government ride roughshod over our people’s rights, and ignore the needs of our communities, it is important that they think again. Let me recall the words of the Minister of State, the right hon. Member for Rossendale and Darwen (Jake Berry), during a Backbench Business Committee debate on shared prosperity that I secured in 2019. He twice made the promise that devolution would be respected. Indeed, his second clarification stated:

“To be absolutely clear and to repeat what I said in my contribution, the Government will fully respect the devolution settlement in respect of the UK shared prosperity fund and, I am sure, in all other respects.”—[Official Report, 5 September 2019; Vol. 664, c. 445.]

At that time I told him that he would be judged not on those words, but on the actions of his Government. Let me tell hon. Members, and those watching the debate, that the people of Scotland are making that judgment, and seeing that Westminster is not working for them. It is not listening to them or delivering what they need, and that is why more and more people are convinced that Scotland would be better served by taking our place as an independent nation.

There is another unique hit that we will take as a result of this Government’s actions. This is the worst of all possible times for young people across our constituencies for the economic crisis to be coupled with Brexit. That is not in Scotland alone, as it affects all nations of the UK, but it is particularly harsh in places such as the highlands and islands, where we have been working incredibly hard to turn around the demographic of losing our young people.

Christine Jardine Portrait Christine Jardine
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Will the hon. Gentleman give way?

Drew Hendry Portrait Drew Hendry
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I am going to continue. The jobs that will be lost in the coming weeks and months will predominantly be of those in the 16 to 25 age bracket. Why? It is because they are cheaper to make redundant; they are usually on zero-hours contracts, if they have a job, and they normally have a lower length of service than anyone else. Young people will be disproportionately affected, so if for no other reason than to protect the next generation who will want to deliver a lifestyle that is suitable for them and their families to which we should all aspire in this century, surely the Government should now ask for that extension. Nobody would blame them, because everybody understands that this is a unique crisis. They should ask for that extension and protect our young people.

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Douglas Ross Portrait Douglas Ross
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I would say to the hon. Lady that I am her one Conservative Member, because I can explain it to her. When we finally leave the transition period on 31 December, we will become an independent coastal state controlling who fishes what, where and when in our waters—a proud independent state. There are examples of others that are able to do that, and we will follow suit.

Something that is not often considered in this debate is how big a difference a short extension to the transition period would make. Fishing leaders in Scotland have said that a one-day increase in the transition period beyond 31 December this year would be a one-year increase for their industry, because we would go into a whole new round of talks. When the right hon. Member for Ross, Skye and Lochaber suggests that we as a Government and a country should have two years of extra negotiating during the transition period, we should ask what that would mean for our fishing industries, which I am not willing to accept.

I represent the constituency in Scotland that came closer than any other to voting leave in 2016: just 122 votes separated leave and remain. So while I know it is very convenient for Scottish National party Members, the Scottish Government and others to say that Scotland voted to remain, not everyone in Scotland did. One in two people in Moray voted to leave and one in two people in Moray voted to remain. This argument does foster great passion, understandably, but it is not as black and white as the SNP would often like to make it.

I also want to focus on the points about leadership that we have heard during this debate. I tried to intervene on the right hon. Member for Ross, Skye and Lochaber when he highlighted poll ratings that suggest that Nicola Sturgeon’s leadership has been positive during this pandemic. I was going to ask him: was it leadership when Nicola Sturgeon chose not to inform the Scottish people of the first case of covid-19 being identified at the Nike conference? [Interruption.] I am sorry if the hon. Member for Perth and North Perthshire (Pete Wishart) thinks it is funny that the Scottish Government, the First Minister and Scottish Government Ministers withheld information from the Scottish people about the first case of covid-19 in our country, but I do not believe it is a laughing matter. I hope that he will reconsider his actions when I am discussing an important matter about people who have lost their lives.

Is it leadership when the UK Government are carrying out more covid-19 tests in Scotland than the Scottish Government? I am happy that our broad shoulders of the United Kingdom can help the UK Government, but I would have thought that the Scottish Government would be ambitious enough to have the testing facilities in place to do more than the UK Government. I am extremely grateful that the UK Government are there to support the Scottish Government.

Is it really leadership when we have senior members of the Scottish National party, and indeed the First Minister, threatening to put up barriers at the border to stop people coming into our country? Given that the Scottish Tourism Alliance criticised those comments by saying that 70% of tourism in Scotland is from the rest of the United Kingdom, any signal from the First Minister, the Scottish Government or the SNP that we are closed for business is unacceptable. It is not a political issue—it is a financial issue for bed and breakfasts, hotels, restaurants and all those who rely on investment and money from people across the United Kingdom to support them. We need to send an unequivocally clear message that Scotland is open for business. I was grateful to hear that from the right hon. Member for Ross, Skye and Lochaber today. Sadly, I would say that the message has come too late.

Christine Jardine Portrait Christine Jardine
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While the hon. Gentleman and I do not share the same view of the European Union—and I would not wish to leave at this moment—does he share my confusion at hearing an SNP Member say that this was the worst possible time for the economic dislocation of leaving the European Union, without recognising the economic dislocation that would be caused to Scotland by leaving the United Kingdom? [Interruption.]

Douglas Ross Portrait Douglas Ross
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I agree with the hon. Lady. The pathetic actions by some SNP Members in response to a legitimate point made by one of my political opponents show their narrow-mindedness, not just in this debate but every time there is a debate in the House of Commons. It was only one of a number of confusing comments from the SNP in the debate and, sadly, I think we will hear more this afternoon.

I want to come on to a point that I made in my intervention on the right hon. Member for Ross, Skye and Lochaber. It was unbefitting of him and his party not even to recognise the broad shoulders of the United Kingdom during the pandemic. People in Scotland, whether they support the Scottish National party, the Scottish Conservatives, the Scottish Liberal Democrats, the Scottish Labour party or the Scottish Greens, or whether they have no party affiliation at all, recognise that during a pandemic, when people were looking for health and economic responses, the UK Government went above and beyond, with one of the strongest and most comprehensive arrangements anywhere in the world, to support individuals, businesses and communities.

Almost £13 billion was provided to protect hundreds of thousands of jobs, with support for the self-employed. Support from the UK Treasury went to the Scottish Government, which they sent to local government in Scotland to support businesses with grants of £10,000 to £25,000. That is by any measure the broad shoulders of the United Kingdom supporting every part of the UK: Scotland, Wales, Northern Ireland and England. Whether Members disagree with the Government or with the Conservatives more generally, I hope they would all accept that it is because of that that we have got to this stage of the pandemic in as strong a place as possible.

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Christine Jardine Portrait Christine Jardine (Edinburgh West) (LD)
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It is a pleasure to follow the hon. Member for Ynys Môn (Virginia Crosbie), even from this slightly disconcerting and unusual location. That, however, has nothing to do with the fact that I have become increasingly frustrated on the Opposition Benches this afternoon. The debate has been more about political point-scoring than the interests of the people of Scotland, or any other part of the United Kingdom for that matter.

I find myself increasingly torn—torn between my belief that our Government really should have asked for an extension and my recognition that the time when it was possible has passed; between my belief in the European Union and my acceptance that that particular battle has been lost—we are leaving; and between actually supporting the SNP in this last-ditch attempt and turning my back on its frankly hypocritical self-serving, narrow, nationalist argument.

There is no good outcome to this debate for Scotland; the people of Scotland cannot gain anything from it. When I saw that it was a nationalist Opposition day debate, I expected that we would talk about the state of our oil industry, the pressure on our airlines and airports or the state of our health and education. No—we have another process debate aimed at independence. I am tired, so very tired, of listening to the nationalists claim to speak for the people of Scotland. The nationalists speak for fewer than half the people of Scotland. They do not speak for the majority; they speak for 45% at the last count. The people of Scotland deserve so much better than that.

Pete Wishart Portrait Pete Wishart
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Will the hon. Lady give way?

Christine Jardine Portrait Christine Jardine
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I will not, thank you.

We have heard SNP Members claim today that tearing Scotland out of the European Union will be bad for its economy—and yes, I agree that it will be dreadful for its economy—but I am then astonished that they can keep a straight face and tell the people of Scotland that tearing Scotland out of the UK will not be just as bad, if not worse, for its economy. Please, give the people of Scotland the credit we deserve.

The hon. Member for Argyll and Bute (Brendan O’Hara) had a lot to say about democracy, but what about the democratic decision in 2014? Did the nationalists not turn a deaf ear to those 55% of the people of Scotland —the same 55% who did not vote for them in 2019? There is a familiar ring to that: 45% and 55% against.

We have been warned from the SNP Benches about zealots with no thought for anything but the project, and I have to ask myself: which zealots are they talking about? Perhaps they are pointing in the wrong direction. I also have to ask myself about the amount of time that we are wasting in talking about process. I am tired of listening to this vision of British politics that has no Scots in it. There are Scots in the current Government and there were in the last Government, and there are Scots on the Opposition Benches and in Committees throughout this House. Can a party obsessed with Scottish history not stretch their minds back a decade to when a Scottish Prime Minister was standing at the Dispatch Box?

At the conclusion of this debate, I will in all probability —in fact, I shall—support the SNP in the Lobby, but not because of anything that they have said today: not a single word. It will be in spite of every word that they have said today. I believe that our Government should have asked for an extension, but I also believe that it will be in the best interests of every person in this country—I mean the United Kingdom, of which I will argue to my last breath for Scotland to remain part—that we put the argument behind us and move on to building a stronger economy, creating a better society and getting us through what we are told will be the worst recession in 300 years. Those of us north of the border will need all our friends in the south to help us through it together.