Leaving the EU: Implications for Scotland

Debate between Colin Clark and Patricia Gibson

Tuesday 3rd July 2018 Westminster Hall

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

I beg to move,

That this House has considered the implications for Scotland of leaving the EU.

It is a pleasure to serve under your chairmanship, Sir Roger. I am delighted to have secured this debate and I thank my colleagues on the Backbench Business Committee for supporting my application. I begin this debate in the hope that we can have a measured, clear analysis of the facts and challenges that lie ahead, which are of material importance to Scotland and her prosperity.

The implications for Scotland of leaving the European Union are profound and significant. First, we need to consider the damaging effect that leaving the EU will have on Scotland’s vital interests both at home and abroad. Nobody can deny that the UK’s governing party is hopelessly divided against itself, as the UK faces arguably the biggest challenge and upheaval since the second world war. The Cabinet speaks not with one voice, but with several confused and contradictory voices. How can it enter into negotiations with the EU and inspire confidence from any quarter?

[Colin Clark (Gordon) (Con)]

Does the hon. Lady accept that almost a third of Scottish National party voters also voted to leave the EU and that, therefore, the SNP is divided on this issue too?

[Patricia Gibson]

That is quite an interesting point. I hope to maintain a respectful dialogue in this debate. I gently remind the hon. Gentleman that the former Tory leader and Prime Minister, John Major, has called the handling of Brexit “bad politics” and a “grand folly” dictated by “ultra Brexiteers”. He has also said:

“Many electors know they were misled”.

How people voted in the EU referendum, therefore, is beside the point. I want to focus on the damage that is being done to Scotland, because a lot of people have watched the unfolding of the Brexit process with horror and alarm.

The UK Government’s own leaked analysis has shown that Scotland’s GDP could face a hit of up to 9%, with analysis from the Fraser of Allander Institute showing that a hard Brexit could cost Scotland up to 80,000 jobs. The final figure could be higher or lower—we have no idea at the moment. The Governor of the Bank of England, Mark Carney, has revealed that Brexit has already cost each household £900.

--- Later in debate ---

[Colin Clark]

I thank the hon. Gentleman very much for that question; I absolutely respect that point, and I covered it in the first line of my speech. People voted to stay in the United Kingdom, and we had a United Kingdom vote in the European Union referendum.

[Patricia Gibson]

rose—

[Colin Clark]

I will make some progress.

The Scottish people now expect politicians to carry out their wishes. I was disappointed to hear the hon. Member for North Ayrshire and Arran take quite such a negative tone. Nobody on the Government Benches is denying the challenges that surround our exit from the EU, nor are we naive to the scale of the work still to be completed, and much work has been done.

However, the situation is not doom and gloom—far from it, in fact. Done correctly, Brexit can provide many exciting opportunities for Scotland. Overnight, the Scottish Parliament will become considerably more powerful as a result of our exit from the EU. Sovereignty and control over our own laws was a major driver of the leave vote, and I am delighted that the Government, through the European Union (Withdrawal) Act 2018, have already taken steps to bring powers home to the United Kingdom. Brexit will give us the opportunity to bring decision making closer to people, not only through Westminster but through the devolved institutions in Edinburgh, Cardiff and Stormont.

[Patricia Gibson]

As the hon. Gentleman was speaking, one thought occurred to me that I would like to ask him about, because I am sure he has thoughts on it. He talked about the importance of respecting democracy, and I am sure we all agree with that, but does he share the concerns that many in his party have about the lack of transparency regarding the funding for the EU leave campaign, the dirty money that appears to have been involved and the lack of ability to trace the source of that money? Does he have any concerns about how that might have influenced the result?

[Colin Clark]

I thank the hon. Lady for the question, but I have an absolute respect for the institutions of this country, including the Electoral Commission, which will investigate funding, whether in Scottish elections or the EU referendum. I will respect its findings, because I have respect for UK institutions.

On day one after exit, more than 80 new powers will go directly from Brussels to Edinburgh—80 areas in which Scottish politicians can make decisions in the best interests of the Scottish people. The UK Government have rightly confirmed that they will presume devolution for all returning powers, meaning that only in exceptional circumstances will powers be temporarily held at UK level so that we can have some sort of framework, which Scottish industry and United Kingdom industry want. I believe that to be sensible and pragmatic. The UK Government travelled a significant distance from their original proposal, and we are now in a place where we can guarantee that Brexit will be to the advantage of the devolution settlement.

Of course, another upside of leaving the EU will be the ability to send more Scottish goods out to new markets, as we take control over our trade and chart a new course in the world. Scottish economic growth has been driven by exports, and the north-east of Scotland, where my constituency is located, is the largest exporting region in Scotland. In 2015, total exports from the north-east amounted to more than £8 billion—21.3% of total Scottish exports, in an area with 8% of the population. Leaving the EU will allow our exporting businesses to reach new markets and customers, and to grow those numbers further.

The hon. Member for North Ayrshire and Arran mentioned the food and drink sector and agriculture. It is a significant part of the north-east’s economy. It directly employs 22,000 people; 51% of those jobs are in agriculture, and a further 11% are in fishing. Leaving the EU will bring huge benefits to those people. We can finally design an agriculture policy that works for Scotland, and it will not be a DEFRA-centric, top-down policy. It will be a policy set by the Scottish Government for the unique needs of Scottish farmers—Members can see from my entry in the Register of Members’ Financial Interests that I am one myself.

Fisheries policy will also escape the clutches of the EU, and I am delighted that we are already having conversations on that. It is amazing that the Scottish Government wish to receive powers and then immediately hand them back to the EU, particularly on the common fisheries policy, which would not go down well in our fishing communities.

Leaving, therefore, provides opportunities and hope to some of Scotland’s key industries. It will allow us to be part of an internationalist United Kingdom and to embrace new trading opportunities.