European Union (Withdrawal) Bill

Lord Hanson of Flint Excerpts

Committee: 5th sitting: House of Commons
Wednesday 6th December 2017 Commons Chamber

[Mr Leslie]

New clause 17 relates to clause 12 —[Interruption.]

[The Temporary Chair (David Hanson)]

Order. Will Members leaving the Chamber please do so quietly so that the hon. Member for Nottingham East (Mr Leslie) can continue?

[Mr Leslie]

Clause 12 relates to the financial provisions of Brexit. New clause 17 seeks to clarify that a specific legislative instrument is needed to authorise payment in relation to a withdrawal agreement settlement and that that can be permitted only if approved by a resolution of the House of Commons.

It is important that we do not glide by some of the big aspects of Brexit. It has massive ramifications, one of which is the fabled “divorce bill” as it is sometimes characterised. Some people say that it is simply the settlement of obligations and liabilities, but phase 1 of the discussions, which the Government have agreed with Michel Barnier to conduct before we move on to phase 2 on the framework of future trade relations, has to include a financial settlement. It is therefore important that Members of Parliament understand it, approve it and enter into the arrangement with their eyes wide open.

We are not considering small sums of money. Last week, it was widely reported that the financial deal had been made, but we can never be absolutely sure about such reports. It was also reported that the Prime Minister had a deal with the Republic of Ireland and the rest of the EU on the Northern Ireland border, and we all know what happened to that in recent days. However, it feels as though Ministers, the European Commission and others have sort of agreed a financial settlement, so last week we tabled an urgent question to press the Government. The Chief Secretary to the Treasury responded to it, but unfortunately she was a bit coy about the divorce bill. We were not allowed to know how much it would be. We were told that it was still part and parcel of the negotiation process, and how dare we ask? We were also told that it was unreasonable of us to intrude on sensitive negotiating arrangements. It seemed peculiar to me that it was all right for the British Government to tell Michel Barnier, Jean-Claude Juncker and the European Commission how much HM Government and British taxpayers were prepared to pay, but somehow Members of Parliament, never mind the British public, were not grown up enough to know the real sum.

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[Anna Soubry]

The hon. Gentleman is making an extremely important point. Lots of people who had become really fed up and disaffected with politics and politicians took out their frustrations in the referendum. As the hon. Gentleman has said, many of them genuinely believed that if we left the European Union, there would be more money to be spent on our NHS. He is right: not only will we not have that money, but our economy could begin to retreat—and if we do not get a good deal but fall back on WTO rules, it undoubtedly will—and we will have to put aside, by way of example, £3 billion for Brexit, money that could have gone to the NHS. So my question to the hon. Gentleman is this—

[The Temporary Chairman (David Hanson)]

Order. The intervention is too long.

[Anna Soubry]

May I just ask this question? Does the hon. Gentleman not agree that there are many forms in which that disaffection may be manifested as we see our NHS actually—

[The Temporary Chairman]

Order. The right hon. Lady must make short interventions. If the hon. Member for Nottingham East (Mr Leslie) wishes to give way, he can do so again, but the right hon. Lady must make short interventions.

[Mr Leslie]

The right hon. Lady was making an incredibly important point, Mr Hanson. It is not just a question of the divorce bill—the financial settlement—and it is not just a question of the billions to be set aside for Brexit preparations. The bigger issue that the right hon. Lady was raising is what will happen in a dynamic economy if our trade opportunities shrink, and if obstacles and tariffs are put in the way. This is not just our assessment, or opinion. The Chancellor himself published a table in his Red Book which showed what he and the Office for Budget Responsibility expected to happen to tax receipts over the next few years. He anticipates that by 2021 tax receipts will have fallen by not just £10 billion or £15 billion, but by £20 billion. That is £20 billion less revenue for the Exchequer to spend on the vital public services we want. This is a triple whammy, therefore, in terms of the costs of Brexit, and it is a surprise to many members of the public, who were told precisely the opposite.

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[The Temporary Chair (David Hanson)]

Order. I remind Members that we are supposed to be debating the financial provisions. We are straying into the terms of any second referendum.

[Ian Paisley]

I will take your instruction, Mr Hanson, but I think that the right hon. Member for Carshalton and Wallington (Tom Brake) knows where I stand on that point.

I was hoping to hear some clarity from Labour’s Front Bench tonight, instead of more confusion. I was hoping to hear some key arguments about why the Opposition are putting forward some of these amendments to deal with the consequences of the divorce bill. I wanted to hear them deal with who should pay, with freedom of movement and with the single market. I wanted a hard and fast line, but I am afraid that we heard even more confusion.

We have had a diet of this confusion for some time. The right hon. Member for Hayes and Harlington (John McDonnell) said that we must leave the single market and respect the referendum result. The hon. Member for West Bromwich East (Tom Watson) said that we should stay in the single market and the customs union permanently. The hon. Members for Leicester South (Jonathan Ashworth) and for Darlington (Jenny Chapman) said on another occasion that we have to leave the single market. The right hon. Member for Hackney North and Stoke Newington (Ms Abbott) said that we should keep freedom of movement. The right hon. Member for Islington North (Jeremy Corbyn), the Leader of the Opposition, and the right hon. and learned Member for Holborn and St Pancras (Keir Starmer), the shadow Brexit Secretary, have said that freedom of movement ends with Brexit.

We really need more clarity from the Labour party. If it is going to try to persuade us on these key issues, it needs a single position. At least the Government, for all the problems that have been pointed out, have a single position. I think that would be a good starting point.

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[Mike Gapes (Ilford South) (Lab/Co-op)]

rose—

[The Temporary Chair (David Hanson)]

Order. I am happy to call both hon. Members—indeed, I have no discretion not to call the hon. Members for Blackley and Broughton (Graham Stringer) and for Ilford South (Mike Gapes)—but I must point out that they have not been present since the start of the debate. I have no discretion on this matter, so I call Graham Stringer.

[Graham Stringer]

I am grateful for your comments, Mr Hanson. You are right I have not been present in this particular debate for the whole time, but I have been in many of the debates and this is the first time I have stood up to speak on the issue. I shall not detain the Committee for very long.

Following on from the comments made by my hon. Friend the Member for Stockton South (Dr Williams), of course people in every democracy have the right to change their minds. The correct way to do that is through the same means by which the referendum came about in the first place: a political party should say in its general election manifesto that it wants a referendum, win that election and hold another referendum. The Lib Dems tried that at the most recent election; admittedly, they gained seats, but they lost votes. That is the way to do it, not by calling on the most immediate opinion poll.

Opinion polls change. My hon. Friend the Member for Stockton South and other Members may be interested in a poll taken by Lord Ashcroft the day after the referendum. He surveyed all those people who had voted for Brexit and found that 94% of them had not voted for it on economic grounds, so a lot of the arguments about economics do not apply to the people who voted to leave.

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[Mr Baker]

This Bill, first and foremost, is about exiting the European Union successfully, with certainty, continuity and control, as the right hon. Gentleman will know. I draw his attention to schedule 2(7), which makes it very clear that in the event that a provision imposed a fee or charge, or conferred a power to sub-delegate, it would go to the affirmative procedure and this House would have the opportunity to vote on it.

I turn to amendment 339 on sub-delegation. It is right that this House keeps strict control over all financial matters, but this Bill is about ensuring continuity. I remind the Committee that this power is available only if the public authority is taking on a new—[Interruption.]

[The Temporary Chairman (David Hanson)]

I am sorry to interrupt the Minister, but there is quite a lot of hubble and bubble from Members who have not been in the debate. Members who have been here for the past three hours wish to listen to the Minister’s response.

[Mr Baker]

Thank you, Mr Hanson.

The power is available only if the public authority is taking on a new function under this Bill, and the fees and charges must be in connection with that function. The amendment would force Ministers to exercise this power on behalf of public authorities, such as the Financial Conduct Authority, which this House has made statutorily independent from Ministers. The Government believe that it is right that where Parliament has already granted the power to set up rules within these independent regulators, fees and charges of the type envisaged by this power should continue to be exercised by those public authorities. For good reasons, they have been made independent of Government, and Parliament should have the option to maintain that status quo. I stress that the terms on which any public authority would be able to raise fees and other charges will be set in the statutory instrument that delegates the power to them; and that, as I said, any such delegation would trigger the affirmative procedure, ensuring that this House considers and approves any delegation of the power and how it would be exercised.

Amendment 340 on cost recovery has the disadvantage that it would prohibit what I hope Labour Members would consider to be progressive principles of ensuring a spreading of the burden of regulation. It also might not allow regulators to cover the cost of enforcement.

Clause 12 and schedule 4 are about delivering a successful EU exit with certainty, continuity and control. Clause 12 is not about enabling the payment of any negotiated financial settlement, and neither is schedule 4 about subverting the normal process of raising taxation. The amendments muddy the waters of what these provisions are for. These provisions are simply about ensuring that the financial aspects of taking back control and preparing to take a fully independent position on the world stage are put on a sound and proper footing.