UK’s Withdrawal from the European Union

Crispin Blunt Excerpts

Wednesday 13th March 2019 Commons Chamber

[Keir Starmer]

I will give way in a moment, but I have given way a lot, and I need to make progress. I am aware that others want to contribute to the debate.

I was dealing with the impact on manufacturing. Some of the large manufacturers have told us what the impact of no deal will be on them. Ford was clear that it

“would be catastrophic for the UK auto industry and Ford’s manufacturing operations in the country”.

Airbus used similar language, saying that it would be “absolutely catastrophic for us”. More recently, Honda said:

“If we end up with WTO tariffs, we’d have something like 10% of costs in addition on products shipped back into Europe”,

which would impact its “productivity” and “competitiveness”. This is not exaggeration. These are companies speaking about their businesses. This will impact on their businesses, and real people’s livelihoods will be at stake.

We do not have to only take the word of businesses and the trade unions, though it is a powerful voice. We can also look at the Government Benches. The hon. Member for Richmond (Yorks) (Rishi Sunak), who I believe is still a Business Minister in the Government, said that no deal

“would be completely disastrous for business in this country”—

no doubt because, like me, he has been talking to those businesses. He then took a novel approach to collective responsibility by saying:

“I am very happy to be public about”

the dangers of no deal

“and very happy if the Prime Minister decides I am not the right person to do the business industry job.”

He was backed up by the Business Secretary, who said

“no deal is fully acknowledged—certainly by me and the industry—as being ruinous for our prospects”—[Official Report, 4 February 2019; Vol. 654, c. 68.]

The Government’s own figures show that no deal would mean a reduction in the economy of between 6.3% and 9% over 15 years, and every region would be poorer—Wales by 8.1%, Scotland by 8% and the north-east of England by 10.5%. Anybody who votes tonight to keep no deal on the table needs to explain to their constituents why they are taking that risk with jobs and our economy.

[Crispin Blunt (Reigate) (Con)]

I think the right hon. and learned Gentleman has mistaken my hon. Friend the Member for Richmond (Yorks) with my hon. Friend the Member for Watford (Richard Harrington), the Under-Secretary of State for Business, Energy and Industrial Strategy. It is important to make that correction.

What businesses are saying to me is that their key enemy is uncertainty. If they do not have certainty over the future terms of trade, investment decisions will continue to be postponed. There is certainty over those terms of trade if we leave the European Union on 29 March either with the Prime Minister’s agreement or moving to World Trade Organisation terms.

[Keir Starmer]

As for the anxiety of businesses over uncertainty, and their yearning for certainty and the impact it is having on their decision making and investment, that is absolutely true. It should be a cause of great concern to all of us. None of the businesses I have spoken to—I have spoken to thousands in the last two years—has suggested that the certainty they want is no deal. They all say to me that they do not want no deal, and they normally point out the consequences of no deal.

--- Later in debate ---

[Stephen Gethins]

The hon. Lady makes a good point. Staying in the EU is the best deal. The best deal is the one we currently have as a member of the European Union.

On public services, this Government are spending £4.2 billion on preparation for a no-deal exit, which we could have taken off the table 1,000 days ago. That is £4.2 billion that is not going into hard-pressed public services. It is £4.2 billion that is going into Government mess-ups—ferry contracts that we do not need. Public services will be further hit by a no-deal Brexit and overall by Brexit. This will hit the most vulnerable people in society. It will hit our public services, which have already been dealt a blow by a decade of austerity from parties of every colour in this House.

[Crispin Blunt]

rose—

[Stephen Gethins]

Before I conclude, I will give way one final time, to the hon. Gentleman, because I respect him.

[Crispin Blunt]

Having said that this should have been taken off the table 1,000 days ago, perhaps the hon. Gentleman could explain why he put his name to a conclusion of the Foreign Affairs Committee report published two years and a day ago, which said:

“Making an equivalent mistake”—

and not preparing for no deal—

“would constitute a serious dereliction of duty by the present Administration.”

[Stephen Gethins]

Just how much could we have saved had we taken that off the table; the Government had not taken the responsibility of taking no deal off the table as they should have done. If the hon. Gentleman wants to refer to that report, I should point out that it was also the report that said that, yes, a no-deal exit would be bad for our European partners but it would be worse for the UK. That is something he put his name to, as did other Brexiteer colleagues from across the House. This said that they would be prepared to hit the UK economy—they would be prepared for that hit—and he signed up to that very report. I know what was in that report.

It is strange that all we hear about now is not the benefits of Brexit; rather, we are limited to Ministers telling us that it will not be that bad. I heard one of the increasingly poor excuses last night, which was that we are in a Parliament of remainers. I am a remainer whose constituency and nation voted to remain, and it certainly does not feel like a Parliament of remainers to me. The extremists will never be happy.

This is about damage limitation. The Brexiteers, including the Secretary of State for International Trade and the Secretary of State for Environment, Food and Rural Affairs, have blown it. I will not vote to make my constituents poorer and less well off because of their mistakes. Let me remind them that it is through the single market that we are wealthier, through its rules in areas such as workers’ rights and parental rights that we are fairer, through joint action on climate change that we are greener and through work with the European Medicines Agency, sadly departed, and air-quality agreements that we are healthier.

The impact is being felt now. Even yesterday, a report showed that £1.2 trillion—an eye-watering sum—had been relocated from the UK, mainly to areas like Dublin. It is no wonder that similar-sized independent and sovereign states such as Denmark, Ireland and Finland see their futures as part of the European Union.

I hope that the right hon. Member for Meriden (Dame Caroline Spelman) will press her amendment to a vote tonight. That is important because we need to have no deal taken off the table, given the untold damage that it will do to public services and to our democracy. We have two different views. One is of a state being like our neighbours, and being joined, pooling our sovereignty and working together as an independent sovereign state. The other is of a UK that is isolationist, poorer, more remote and going backwards. Nothing emphasises that more than the fact that the Government have not taken no deal off the table. Let us push the amendment and take no deal off the table tonight.

--- Later in debate ---

[Hilary Benn (Leeds Central) (Lab)]

Yesterday, the House rejected the Prime Minister’s deal for the second time. Today, we must reject leaving with no deal, and tomorrow, assuming that we vote that way tonight, we will have to ask the European Union for an extension to article 50.

Today is the moment when two and a half years of repetition of that nonsensical slogan “No deal is better than a bad deal” will finally be defeated in its fight against reality. It was always a slogan; it was never a policy. That is why the Prime Minister will have to vote against her own slogan when she comes to the Division Lobby tonight.

The arguments for rejecting no deal are really very simple: it would inflict the greatest damage on our economy; it is strongly opposed by businesses and trade unions; and it would mean a huge step into the unknown, the chaotic and the potentially dangerous.

[Crispin Blunt]

rose—

[Hilary Benn]

I will give way once.

[Crispin Blunt]

Perhaps the right hon. Gentleman can explain why five of his remainer colleagues serving on the Foreign Affairs Committee signed up to this conclusion two years ago:

“It is possible to envisage scenarios in which ‘no deal’ might be better than a bad deal, as the Government has suggested; such as, for example, if the eventual proposed agreement only involves payment of a large sum to the EU in settlement of UK liabilities, with no provisions for any preferential trade arrangements or transitional arrangements towards a mutually beneficial future relationship.”

[Hilary Benn]

All I can say to the hon. Gentleman is that I cannot speak for those colleagues. My view has consistently been clear that no deal cannot be a policy for this country. By the way, no deal is not what those who campaigned for leave in the referendum ever argued for, so I do not quite understand why someone should now be arguing for it when they did not argue for it then. No one who has spoken so far—I am not talking about intervening—has stood up and argued why no deal would be a good idea. It is not surprising why they have not. In responding to the schedules that have been published, Carolyn Fairbairn said this morning:

“This tells us everything that is wrong with a no-deal scenario…This is no way to run a country.”

The Society of Motor Manufacturers and Traders said:

“No-deal would be catastrophic for the automotive industry. It would end frictionless trade, add billions to the cost of manufacturing and cost jobs.”

We know why.