Oral Answers to Questions

David Davis Excerpts

Thursday 9th March 2017 Commons Chamber

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

15. What discussions he has had with the Secretary of State for Scotland on the potential devolution of further powers to the Scottish Parliament as a result of the UK leaving the EU.

[The Secretary of State for Exiting the European Union (Mr David Davis)]

I will group this question with questions 11 and 16.

[Mr Speaker]

Order. I believe that the Secretary of State seeks to group it with questions 10 and 15.

[Mr Davis]

It is questions 11 and 16 on the old listing, Mr Speaker.

[Mr Speaker]

It is now questions 10 and 15. That will assist the Secretary of State. We have to keep up with the development of events.

[Mr Davis]

When you get to my age, Mr Speaker, it is so difficult.

As the Prime Minister said in Glasgow last week, as we bring powers and control back to the United Kingdom we must ensure that they are the right powers, at the right level, so that the UK can operate effectively in the interests of all its citizens, including the people of Scotland. Where powers should best sit will be a matter for further consultation and discussion across the United Kingdom.

[Drew Hendry]

I remind the Secretary of State that on 27 November, in The Sunday Times, the Secretary of State for Scotland stated:

“Whatever the circumstances, no powers will be re-reserved to Westminster.”

In Scotland, we know that such vows are not worth the paper they are printed on. Will the Secretary of State give the House a guarantee that powers currently exercised by the European Union will be devolved to the Scottish Parliament?

[Mr Davis]

Those are two different questions, if I may say so. It is unfortunate that the right hon. Member for Gordon (Alex Salmond) is not present, because he would have been able to tell his colleagues in the Scottish National party that for many years I have been a strong advocate of devolution. Indeed, I was the first Conservative Member, and probably the only Member outside the SNP, to call for fiscal autonomy for Scotland back in the days of the first devolution Bill. I take this issue very seriously indeed, but there is a distinction between the current exercise of powers over matters such as agriculture, fisheries and the environment by the Scottish Parliament and matters that are dealt with by the United Kingdom Government in the EU on behalf of the whole United Kingdom, with heavy consultation.

[Gavin Newlands]

Talking of devolved powers, last month the Prime Minister ventured north to tell Scotland just how poor the Scottish NHS is, despite all evidence to the contrary, including information about public satisfaction and A&E waiting times. If the situation is so bad, will the Secretary of State tell us when we will receive our share of the £350 million a week so that we can fix it?

[Mr Davis]

I have generally exercised a self-denying ordinance about not attacking the domestic policies of the Scottish Government, because I think that those are matters for them to worry about, and their day job should be their main interest. The aim here will be to secure the best outcome for the whole United Kingdom, including Scotland, and for Scotland not to lose in any way.

[Margaret Ferrier]

Because we are so generous on these Benches, I shall give the Secretary of State another chance to answer the question. Notwithstanding the key principle of the Scotland Act 1998 and what he said that the Prime Minister had said at the Scottish Tory conference on 3 March, will he please assure us categorically that when non-reserved powers are repatriated from Brussels, they will come directly to Scotland?

[Mr Davis]

I think that the Scottish National party needs a bit more originality in its questions as well.

The simple fact is that no powers that are currently exercised by the Scottish Government will be removed from the Scottish Government. As for other powers coming back from the EU, we will consider—in conjunction with representatives of the Scottish Government, the Welsh Government and the Northern Ireland Executive, when they are back in place—what is best for the United Kingdom and the constituent nations thereof. It is very important for us to have as much devolution as possible, but it is also very important for us not to damage the United Kingdom single market, which is four times as valuable to the Scots as the EU single market.

[Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I wonder whether, during the discussions and negotiations, my right hon. Friend raises an issue that the Scottish National party is constantly putting on the table, namely a special arrangement for being in the single market. Recently, the Partido Popular in Spain made it absolutely clear—I wonder whether my right hon. Friend has translated this for the Scottish National party and its leader in particular—that its policy, and that of the other parties in Spain, was that there would be no special arrangement for the SNP, and that, should the SNP seek to leave the United Kingdom and rejoin the European Union, it would be vetoed by Spain on both counts.

[Mr Davis]

My right hon. Friend has made his point as well as ever. I believe that this issue will arise again in a later question on the Order Paper. The simple truth is that it is not solely a technical matter within the United Kingdom; it is also something that we must deliver diplomatically.

[Mr Peter Lilley (Hitchin and Harpenden) (Con)]

Is my right hon. Friend as puzzled as I am that the Scottish nationalists appear to oppose any devolution of powers from Europe back to the United Kingdom and Scotland? It seems that they would rather be governed entirely from Brussels than see some of those powers returned to this place, where they have a great influence, and others returned to Holyrood, where, temporarily, they have a near majority.

[Mr Davis]

My right hon. Friend points exactly at the incredible inconsistency at the heart of the Scottish National party: it believes that it is fine to be ruled from Brussels, but not to be ruled from anywhere else.

[Sir Desmond Swayne (New Forest West) (Con)]

Given the huge identity of mutual interests that Scotland shares with the rest of the United Kingdom, will not a good deal for the United Kingdom shower all sorts of benefits that can be devolved on Scotland?

[Mr Davis]

My right hon. Friend highlights an important point: what matters in this negotiation is the outcome, not the mechanism. The Scottish Government have laid a great deal of emphasis on their own preferred policy of separate membership of the single market, but the simple truth is that what we want is a good outcome in terms of access to the single market for everybody in the United Kingdom, and that will achieve exactly the same aim in a different way.

[Stephen Gethins (North East Fife) (SNP)]

In terms of powers for the Scottish Parliament, the people of Scotland were promised a week before the vote that Scotland would decide its own immigration policy in the event of Brexit. Next week we have a crucial vote on EU nationals—we have another opportunity. If this Government will not use their powers to give EU nationals the certainty they require, will they give those powers to the Scottish Parliament?

[Mr Davis]

Again, we are talking about aims, ends and means. On the Joint Ministerial Committee, the Scottish Government have raised the very important issue of the immigration needs of Scotland. I have relayed their questions to the Home Secretary and I expect that when we come to a UK immigration policy, it will reflect the needs of every part of the United Kingdom.

[Stephen Gethins]

I look forward to having the Secretary of State’s support for his leave campaign’s promises on immigration power being given to Scotland. As part of that and on the issue of EU nationals, will he consider the 2012 European Court of Justice judgment in the case of Zambrano v. Office national de l’emploi, which gave EU nationals with primary caring responsibilities the right to reside in the member state of which their dependent child or adult is a national?

[Mr Davis]

I am not familiar with the individual case the hon. Gentleman raises. I will look at it in detail and come back to him, as is my normal approach. I say this, however: the European Court of Justice will not rule over the United Kingdom after the date of Brexit. That does not mean that we will not have a very humane, sensible and straightforward policy with respect to things such as family relationships, which the hon. Gentleman talks about.

[Daniel Zeichner (Cambridge) (Lab)]

2. What recent discussions he has had with Cabinet colleagues on transitional arrangements for the UK leaving the EU.

[Nick Smith (Blaenau Gwent) (Lab)]

17. What recent discussions he has had with Cabinet colleagues on transitional arrangements for the UK leaving the EU.

[The Secretary of State for Exiting the European Union (Mr David Davis)]

We will want to have reached agreement on our future partnership within two years of the article 50 process. Article 50 is clear—we did not write it—that it should take two years to negotiate the withdrawal, and any deal must take into account the new relationship. We recognise that a cliff edge for business or a threat to stability would be in neither side’s interest. A phased process of implementation in which both Britain and the EU institutions and member states prepare for the new relationship is likely to be in our mutual interest, and that will be to everyone’s benefit if that is what we agree.

[Daniel Zeichner]

The tech sector is clear that the UK needs a watertight legal agreement on international data flows from the day we leave the EU; transitional arrangements just will not do. The best route will be an adequacy agreement, as other means are currently under legal challenge. As it took seven years to negotiate an adequacy agreement with Bermuda, what is the Secretary of State doing, with colleagues, to ensure that we avoid a cliff edge on data flows?

[Mr Davis]

The hon. Gentleman raises a very important point, because that is central not just to IT and database industries, but to every industry now. The difference with Bermuda is that it was not at a point of identity of data standards when it started its negotiations. We will be at a point of identity at the point of departure, and we will undoubtedly have to agree some regime whereby we maintain equivalence—not identity, but equivalence—thereafter. It is unlikely that we will need transitional arrangements on that; it is much more likely that we will need an ongoing relationship on it.

[Nick Smith]

Blaenau Gwent has relied on EU structural funding in recent years and, though we are leaving the EU, the need for infrastructure investment remains really high. Infrastructure has a long lead-in, so will the Secretary of State tell me what transitional arrangements will be in place to ensure that Blaenau Gwent gets the best deal to boost its economy after 2020?

[Mr Davis]

The Treasury made it clear, very rapidly at the beginning of this process, that it would underwrite agreements made with the European Union that carried on beyond the point of Brexit as long as they met value-for-money requirements. The responsibility for making that judgment in the case of the hon. Gentleman’s constituency will lie with the Welsh Government, so I do not see that there is a risk there. Beyond 2020, the EU will have its own budget arrangements anyway, and we will be in the same position.

[Sir Oliver Letwin (West Dorset) (Con)]

Will my right hon. Friend guarantee that the very last thing he is going to do is to accept any blandishments from those on the other side of the House, and that he is going to start discussing in detail—in this House or elsewhere—the transitional arrangements with the EU?

[Mr Davis]

Of course my right hon. Friend is right. This is not about some arrangement to extend the discussions or the negotiations; it is about practical implementation issues that may well turn out to be in the interests of both sides, and it is in those circumstances that we would achieve them.

[Mrs Theresa Villiers (Chipping Barnet) (Con)]

Does my right hon. Friend agree that it will be important to encourage co-operation between the regulators during any transition period for financial services, to ensure that we have an orderly transition to the new arrangements with Europe?

[Mr Davis]

My right hon. Friend is absolutely right. One of the ongoing streams of work in Whitehall involves arranging to talk to the regulators, and some of those discussions have already happened. The Governor of the Bank of England has commented on the need to maintain stability after Brexit, and that will be an important part of our negotiations.

[Hilary Benn (Leeds Central) (Lab)]

Because of the Government’s decision to leave the single market, lots of agreements will cease to have effect the day after we leave. One of those is the agreement that allows British airlines to fly to any airport in the European Union. Given that airlines sell tickets up to 11 months in advance, what assurance can the Secretary of State give to passengers that the tickets they buy before we leave the European Union will still be valid after we leave?

[Mr Davis]

The right hon. Gentleman is partly right. Many of the arrangements for European routes are partly dependent on the EU, but there are also bilateral and other arrangements. He is exactly right to suggest that we will be setting out to ensure that those forward contracts stand.

[Jeremy Lefroy (Stafford) (Con)]

Further to what the Chair of the Select Committee, the right hon. Member for Leeds Central (Hilary Benn), has just said, will the Secretary of State tell us whether the transitional arrangements will be discussed right from the beginning of the negotiations? Transitional arrangements cannot be left until the last moment; they need to be hard-wired into negotiations from the very beginning.

[Mr Davis]

They will undoubtedly be part of the early discussions, but the need for transitional arrangements will depend on what the final arrangements will be. If we do not know where we are going to end up, we cannot have a transitional arrangement. Also, our overarching offer of a comprehensive free trade arrangement will remove the need for transition in some areas, although not in the highly regulated ones. The Chairman of the Select Committee was exactly right to suggest that aviation is one of those areas, and it is not the only one. The original questioner, the hon. Member for Cambridge (Daniel Zeichner), mentioned data, which is another area in which regulation will matter. In many cases, however, such arrangements will not be necessary.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

Will the Secretary of State tell the House what he sees as the main differences between agreed interim arrangements as part of a phased process of implementing our future relationship with the EU, as sought by the Government, and a negotiated transitional deal?

[Mr Davis]

The reason that we have specified this in detail was that the term “transitional arrangements” meant several different things to different people. For example, some thought that it would be good to have a departure deal and then to spend years in a transitional arrangement carrying on the negotiations. We have specifically differentiated that from what we are talking about; that is not what we want. We want the decisions to be concluded within two years, but implementation might take longer in a whole series of areas, including customs and financial services regulations.

[Nigel Mills (Amber Valley) (Con)]

3. What steps he is taking to maintain the Common Travel Area with the Republic of Ireland after the UK leaves the EU.

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

8. What steps he is taking to ensure that maintaining human rights protections is included in negotiations on the UK leaving the EU.

[The Secretary of State for Exiting the European Union (Mr David Davis)]

The UK has a long-standing tradition of ensuring that our rights and traditional liberties are protected domestically and of fulfilling our international human rights obligations. The decision to leave the European Union does not change any of that. That is the approach we will take as we enter negotiations, and I can confirm that the Government have no plans to withdraw from the European convention on human rights.

[Mr Cunningham]

Given that answer, will the Secretary of State set out a full and detailed list of all fundamental rights currently guaranteed under EU law and what approach the Government intend to take towards them?

[Mr Davis]

We will be putting the great repeal Bill in front of the House at some point in the near future. That will carry into British law the existing law of the European Union and the case law that goes with it. But British human rights have not depended on the European Union; they have been intrinsic to our history and our tradition, and we—I most of all—will continue to defend them.

[Dame Rosie Winterton (Doncaster Central) (Lab)]

I very much welcome what the Secretary of State said about the Council of Europe and the European Court of Human Rights. With that in mind, will he consider giving his support to a fourth summit of the Council of Europe to look at the way forward for the Council and how human rights could be strengthened through the European Court of Human Rights?

[Mr Davis]

The right hon. Lady knows about my ongoing passion for human rights. That is the first I have heard of a proposal for a fourth summit, but I will certainly look at it. She can guess what my sentiments will be.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Is it not a human right to have some certainty about the future? Is the Secretary of State not aware of how many talented, hard-working and entrepreneurial people who have come to this country have no idea whether they can stay here? The Government are now demanding that to be able to stay, people must have full health insurance for life.

[Mr Sheerman]

At least I’ve got my own hair!

[Mr Davis]

I am not sure whether certainty about the future is a human right—

[Mr Speaker]

Order. I am not sure whether we should have all these hairist remarks—they are rather unseemly. The hon. Member for Huddersfield (Mr Sheerman) is a distinguished senior statesman in the House.

[Mr Davis]

As I was saying, Mr Speaker, I am not sure whether certainty about the future is a human right, and I am certainly not sure whether the House would necessarily extend it to the hon. Gentleman. The simple truth is that we have a large group of people—some of them European citizens and some of them British citizens abroad—to whom we want to give certainty across the board about their right to remain, their right to healthcare, their right to welfare, and so on. I have now seen, one way or another, representatives of around half the member states, and it is plain to me that they all treat this issue seriously and want to see it dealt with early in the negotiations. That is the Government’s policy—to ensure certainty for everybody.

[Roger Mullin (Kirkcaldy and Cowdenbeath) (SNP)]

11. Whether the Government plan to refer to the recommendations of “Scotland’s Place in Europe”, published by the Scottish Government on 20 December 2016, in their notification to the European Council of the invocation of article 50.

[Hannah Bardell (Livingston) (SNP)]

14. If the Government will respond to “Scotland’s Place in Europe”, published by the Scottish Government on 20 December 2016, before invoking article 50.

[The Secretary of State for Exiting the European Union (Mr David Davis)]

I am going to get the hang of this, Mr Speaker. I ask to group questions 11 and 14. In a few years, I will get used to this place—then I will retire.

[Chris Bryant (Rhondda) (Lab)]

Resign?

[Mr Davis]

I said retire, not resign.

We are working closely with the Scottish Government to ensure the best deal for Scotland and the rest of the UK as we leave the European Union. We share many objectives, including having an open and outward-looking country, ensuring access to labour, collaborating on science and research, protecting workers’ rights, having a smooth and orderly exit process, and guaranteeing the rights of EU nationals in the UK and of UK nationals in the European Union. We should also agree that there should be no new barriers to living and doing business within our own Union. They should not be created.

[Roger Mullin]

Who knows what the Scottish people will think of such an imprecise answer to a specific question? Let me try something else that may help the Secretary of State. How many trade negotiators have been recruited to deal with matters such as the very specific and unique needs of some sectors of the Scottish economy?

[Mr Davis]

Many trade negotiators have been recruited, particularly by the Department for International Trade. I recommend that the hon. Gentleman raises the question with that Department, because it has been very busy at that in recent months. The simple truth is that the British Government share the hon. Gentleman’s aims for his constituents and for the people of Scotland—namely, we want the best possible deal, which will be best for the Scottish economy, for Scottish business and, most of all, for Scottish people.

[Hannah Bardell]

Following on from the question of my hon. Friend the Member for Kirkcaldy and Cowdenbeath (Roger Mullin), I am glad to inform the Secretary of State and, indeed, the House that an STV poll shows that support for independence has gone up to 50:50. Given the Secretary of State’s intransigence and his Government’s determination for a hard right-wing Tory Brexit, which way does he think that poll will tip as he continues in his intransigence?

[Mr Davis]

First, I do not recognise the phrase “hard Brexit” or, for that matter, “right-wing Tory Brexit”. Secondly, I am not a great believer in polls when it comes to referendums; they do not exactly work very well. If the hon. Lady wants to go with polls, perhaps she should go with the poll of the Scottish people, who say they do not want another referendum.

[Andrew Stephenson (Pendle) (Con)]

I respect the desire of the Scottish Government to contribute to the Brexit process, and that of the Welsh, Northern Irish and some English regions. May I urge the Government to reflect on all representations made and proceed with a policy that works for the whole United Kingdom?

[Mr Davis]

My hon. Friend is exactly right, and that is the intention of the Government, which is why we are going for a comprehensive, overarching free trade agreement that will deliver extremely beneficial results for Britain and—I stress this point—for the European Union as well.

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

12. How he plans to involve the devolved Administrations in negotiations on the UK leaving the EU.

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[Nigel Mills (Amber Valley) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Exiting the European Union (Mr David Davis)]

The Prime Minister is today meeting other EU leaders at the European Council in Brussels. They will be discussing issues such as migration, jobs and competitiveness. The Prime Minister will be telling them that we remain strong advocates for free trade, and I expect her also to take the opportunity to underline our desire to see a strong and stable European Union even after we leave. Indeed, that has been a centrepiece of my message during my recent trips to meet counterparts in Europe. We want to see a strong UK and a strong EU. Rather than aiming to divide and conquer, as some have suggested, we want the EU to be strong and successful. That is why we are aiming for a comprehensive new partnership between the UK and the EU, which we are clear will be beneficial to all.

[Nigel Mills]

Can the Secretary of State update the House on what response he has had from across Europe to the Government’s recent Brexit White Paper?

[Mr Davis]

Yes, I can. I went to—I think—nine of our fellow member states in three weeks, and others have come to see me. The overarching response has been a positive one; it has been one of support for the general approach, and it has been one that seeks a constructive outcome, not the penalty outcome that was talked about by some earlier. It is certainly true that they also think of our approach as very logical, so I think that gives us great cause for optimism in the negotiations.

[Keir Starmer (Holborn and St Pancras) (Lab)]

Clearly, the Government want to trigger article 50 next Wednesday or next Thursday. They will then have to set out their proposals in detail so that the EU can respond. For months, they have hidden behind the bland phrases “frictionless borders” and “frictionless trade”. This is the last opportunity before triggering for the Secretary of State to spell out what those phrases actually mean.

[Mr Davis]

The hon. and learned Gentleman is a very erudite chap and I would have thought that he would know what “frictionless” meant. It means trade with the minimum possible barriers and the minimum possible impediment, and that is what we will seek to achieve.

[Keir Starmer]

The Prime Minister has said that the approval of Parliament will be required for the final terms of our withdrawal agreement with the EU. She has also promised that that will occur before the withdrawal agreement is sent to the European Parliament for its consent. The House of Lords has now voted by a large majority to amend the article 50 Bill to reflect those commitments. All very straightforward. If the Prime Minister intends to keep to her commitments, why would the Government not support that amendment when it returns to this House on Monday?

[Mr Davis]

Because it is unnecessary.

[Edward Argar (Charnwood) (Con)]

T8. Businesses and individuals in my constituency are eager to see the greatest degree of certainty possible about the Brexit process. Does my right hon. Friend share my concern that amendment 3 to the European Union (Notification of Withdrawal) Bill passed in the other place risks adding further uncertainty and further complexity—the exact opposite of what my constituents want?

[Mr Davis]

My hon. Friend is right. Indeed, I go further. This House made an undertaking, without opposition at all, on an Opposition day, to do nothing to undermine the negotiating capacity of the United Kingdom, and I am afraid that that is what the amendment would do.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

T2. In response to the question from my hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer), the Secretary of State implied that there was some difference between frictionless trade arrangements and tariff and barrier-free arrangements. What exactly are those differences?

[Mr Davis]

It is pretty straightforward. If we have a comprehensive free trade agreement, then there will be no tariffs, one hopes, and very few non-tariff barriers, certainly no new ones. That makes it easier for the customs arrangements—the administrative arrangements —to be straightforward and simple.

[Rebecca Pow (Taunton Deane) (Con)]

I am sure that my right hon. Friend will agree that reform of the common agricultural policy represents a positive opportunity for the farming industry. Does he agree that, among other measures, rewarding farmers with payment for acting for the public good—for example, storing water on land as a flood resilience measure, which would be very beneficial in Somerset—would be very helpful?

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[Tim Loughton (East Worthing and Shoreham) (Con)]

The new owners of Vauxhall have suggested that the takeover will be good news for the UK motor parts supply chain post-Brexit. Is it not the case that far from multinationals being deterred from using the UK as a springboard into Europe within the EU, European multinationals will be using the UK as a springboard for exports to the rest of the world?

[Mr David Davis]

My hon. Friend is exactly right. The comments from the head of Peugeot were fascinating in what they show about what a business that is seeking opportunity can do. We are seeking to create the maximum possible opportunities for our own companies domestically and European countries that want to come here.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

T4. Last week the all-party parliamentary group on Africa, which I chair, published its report on relations with Africa post-Brexit. A recent delegation highlighted the opportunities of Brexit but also the uncertainty over the relationship with the UK and between the European Union and Africa. May I urge the Minister and the Secretary of State to read the report and ensure that our exiting of the European Union supports positive relations with Africa?

[Mr Davis]

I certainly will do that. I have not read the report yet, but if the hon. Lady will send it to me or give me the contact details, I will read it. She is dead right; the departure from the European Union does open up opportunities for stronger relationships with Africa, both economic and otherwise.

[James Berry (Kingston and Surbiton) (Con)]

The EU Commissioner for Security and the head of Europol have both made it clear in evidence to the Select Committee on Home Affairs how important it is to maintain our current policing and security co-operation with Europe. I know that my right hon. Friend is committed to continuing that co-operation. Are his counterparts in Europe as committed as he is?

[Mr Davis]

After the issue of European migrants—European citizens—in the UK, that is the second issue that has come up among the Nordic and Baltic groups in particular, and with Germany and the eastern Europeans. It seems to me that we have a great deal to continue to offer the European Union, and we absolutely intend to do so, because we intend to meet our responsibilities as a global citizen and country.

[Paula Sherriff (Dewsbury) (Lab)]

T5. Given that yesterday was International Women’s Day, can the Secretary of State tell us whether his discussions in Europe have brought us any closer to seeing an end, finally, to the tampon tax?

[Mr Davis]

We have not yet seen an end to the tampon tax, but the moment we leave, I am sure it will be one of the first things I have on the agenda for talking to the Chancellor about. The hon. Lady should bear in mind that we are using the funding from the tampon tax for all sorts of incredibly important causes, which she will know better than I do. We will continue with that until the moment we can repeal it.

[Sir Oliver Letwin (West Dorset) (Con)]

Will my right hon. Friend ensure that the Government tread warily regarding the possibility of any resurrection of the merger between the London stock exchange and Deutsche Börse while we are engaged in complex negotiations about equivalence regimes in financial services?

[Mr Davis]

Yes.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

T6. The manufacturers’ organisation EEF last week highlighted the difficulties that manufacturers are having in filling skilled engineering posts. Manufacturers warn that if the situation is not to get worse post-Brexit, they will need the flexibility to employ and deploy people across Europe. What consideration has the Secretary of State given to the representations from EEF, and what reassurance can he give?

[Robert Neill (Bromley and Chislehurst) (Con)]

The UK legal services sector is worth some £21 billion to our economy. A good percentage of that comes from legal services provided into the European Union. Will my right hon. Friend meet the Bar Council and the Law Society to discuss what they need to retain access to that key market?

[Mr David Davis]

The short answer is that the Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Worcester (Mr Walker), has already met them, but we will do so again. This is a very important sector. People sometimes underestimate the size of the general services sector, which is as big as the City. We have to keep that in mind.

[Wes Streeting (Ilford North) (Lab)]

T7. The success of our economy is riding on the successful negotiation of our exit from the European Union, but the former Chancellor, the right hon. Member for Tatton (Mr Osborne), has told the House: “the Government have chosen…not to make the economy the priority”.—[Official Report, 1 February 2017; Vol. 620, c. 1034.]He was right, was he not?

[Mr Davis]

Not at all. I cannot see how one can make the economy more of a priority than to make it a centrepiece of the negotiation. We seek a comprehensive free trade agreement, and the purpose of that is nothing but economic. Of course, out of it will flow other things, but it is economic first and centre.

[Mr Peter Bone (Wellingborough) (Con)]

Following on from that question, is it not a fact that the Office for Budget Responsibility has increased the growth forecast for this year by nearly 50%? Surely, that is a vote in favour of coming out of the EU, and not what the hon. Member for Ilford North (Wes Streeting) said.

[Mr Davis]

I think, frankly, the whole economics profession is beginning to take a lesson in predictions about the effects of Brexit. My hon. Friend is right. There has been a dramatic uptick in the current year’s growth, and in the forecasts for ’19, ’20 and ’21, as it turns out. The simple point is that many companies are coming here now, such as McDonald’s, WhatsApp, Google—I could go through a whole list—[Interruption.] I will not do that, Mr Speaker. Those companies are showing what they believe by voting with their feet.

[Mary Glindon (North Tyneside) (Lab)]

T9. In the north-east, the voluntary sector relies heavily on the European Social Fund to carry out its fantastic work. As the region receives the highest per-head funding from the ESF, how will the Minister address the sector’s concerns about funding post-Brexit?

[Mr Davis]

These concerns have been met pre-Brexit by the Treasury underwriting the commitments up to and through Brexit. Of course, the hon. Lady has to remember that the European Union will have a complete budgetary review in 2020. We will be giving clear attention to priorities such as this when we come to write our own budgets after 2019.

[Jeremy Lefroy (Stafford) (Con)]

While all EU regulation will be transferred into UK law at the outset, divergence will inevitably begin over the years. What is my right hon. Friend doing to prepare British businesses so that they are aware of all the changes that will be made and can continue to export to and trade with the European Union?

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[Mr David Davis]

I repeat to the hon. Gentleman what I said earlier: no powers exercised by the Scottish Parliament or the Scottish Government will be taken away. We will debate with all the devolved Administrations—not simply Scotland—the level at which it is appropriate to exercise these powers after exit.

[Andrew Stephenson (Pendle) (Con)]

What discussions has the Department had with representatives of the tourism sector on the implications of the UK leaving the EU?

[Clive Efford (Eltham) (Lab)]

The Government have said that they want to secure the rights of British nationals living in Europe, but what about British nationals living in this country who are married to European nationals whose futures have been thrown into doubt by the repugnant position that the Government have adopted? Is it not time to end the doubt for those people?

[Mr David Davis]

Of course we do not want any doubt on the part of any citizen in Europe, British or otherwise, in Britain or on the continent. The simple truth is that most of the people I have seen in the decision-making tier, as it were, of European Governments agree with us: the issue of British citizens and European citizens has to be dealt with together, and will be dealt with as a matter of priority.

[Mr David Nuttall (Bury North) (Con)]

Does my right hon. Friend agree that the huge investment by Dyson in research and development facilities in the UK is a sign of confidence in the UK economy outside the EU?

[Rachael Maskell (York Central) (Lab/Co-op)]

May I push the Secretary of State further on the answer he gave my hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) regarding frictionless trade? Is the Secretary of State saying that trade tariffs remain on the negotiating table?

[Mr David Davis]

No, what I am saying—or what I was saying to the hon. Lady’s hon. and learned Friend—is that plenty of countries around the world have very light-touch customs arrangements, which would be consistent with a comprehensive free trade agreement.

[Several hon. Members rose—]

[Stephen Timms (East Ham) (Lab)]

From my recent discussions with senior Members of the German Parliament, it is very clear that we are not going to get barrier-free access to the single market if we no longer operate free movement. Do Ministers yet recognise that reality?

[Mr Davis]

That is not the response I am getting from the Ministers I have spoken to around Europe. What they have come back with is that they want a constructive outcome, and the only way to get a constructive outcome is to have a comprehensive free trade arrangement.

[Chris Bryant (Rhondda) (Lab)]

Under the common agricultural policy, some of the richest people in this country get millions of pounds in handouts from the taxpayer, which must surely be wrong. When we are in charge of our own agricultural policy, would it not be a good idea to put a cap on how much people get, just as we have a benefits cap?

[Mr Davis]

I welcome a sinner who repenteth, because after 2019 the hon. Gentleman will have a say on that.

[Mr Speaker]

Before we come to the business question, I want to mention that today is the birthday of the hon. Member for Perth and North Perthshire (Pete Wishart). I am sure there will be veritable rejoicing in the streets on this happy occasion—at any rate, at least in Perth and North Perthshire. Happy birthday to the hon. Gentleman.