Parliamentary Scrutiny of Leaving the EU

Emma Reynolds Excerpts

Wednesday 12th October 2016 Commons Chamber

[Mr Davis]

I will come back to some of that later. I will not allow any party to have a veto on the decision to leave the European Union. That is the first key decision.

[Emma Reynolds (Wolverhampton North East) (Lab)]

I find this argument that Parliament somehow wants to thwart the will of the people a complete straw man. As has already been pointed out, seven out of 10 Labour MPs represent constituencies where a majority of people voted to leave. As a democrat, I cannot ignore that and I accept the result. Therefore, why is the right hon. Gentleman running scared of parliamentary scrutiny?

[Mr Davis]

I am hardly running scared of parliamentary scrutiny. As has already been noted, I have made two statements to the House and appeared twice before Select Committees, and today there is this outing, and all within two and a half weeks of the parliamentary Session.

Let me return to a comment from the hon. and learned Member for Holborn and St Pancras. Let us be clear that we agree that leaving the European Union is a momentous decision. With such a huge turnout—72%, with over 33 million people having their say—there is an overwhelming mandate to put the will of the British people into practice. I have spoken at length about our plan to make a success of Brexit. As I set out in my statement on 5 September—it, too, was quoted by the hon. and learned Gentleman—our plan has four aims.

First, we want to build a national consensus around our position. I have already promised more than once to listen to all sides of the debate and ensure that we fight in our negotiation for the best deal for the country. We cannot do that in an air of secrecy, but I will come back to that later. Secondly, we will put the national interest first and listen carefully to the devolved Administrations. Thirdly, wherever possible—it is not always possible—we should minimise uncertainty. That is what the great repeal Bill is about: bringing existing EU law into domestic law upon exit day, and empowering Parliament to make the changes necessary to reflect our new relationship. Finally, by the end of this process, when we have left the European Union, we will have put the sovereignty and supremacy of this Parliament beyond doubt.

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[Emma Reynolds (Wolverhampton North East) (Lab)]

It is a pleasure to follow the right hon. Member for Loughborough (Nicky Morgan), who gave a powerful speech. I agreed with everything she said, and I want to reiterate something that she said at the end and the beginning of her speech.

Like the right hon. Lady, I campaigned to remain in the European Union but, like her, I accept the result of the referendum. Although the Prime Minister and her Ministers have spent the past few months parroting the mantra “Brexit means Brexit”, that is simply meaningless tautology. People voted leave for many different reasons, and Brexit could take many different forms. A majority of my constituents voted leave for various reasons, but they did not vote leave to become poorer, they did not vote leave for their wages to drop, and they did not vote leave to lose their job. I urge the Government to bear that in mind in everything they do.

Members on both sides of the House, from different corners of our country, have a hugely important job to do. Our job is not to rerun the referendum, nor is it to block our exit from the EU. It is to hold the Government to account and make sure that they secure the best possible deal for the country and our constituents.

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

My hon. Friend makes an important point. She, like me, represents a midlands constituency, and therefore she, like me, will want some answers on what the Government’s future relationship with the single market will be, bearing in mind that it was a previous Conservative Government who took us into it. More importantly, companies such as Jaguar Land Rover and Nissan want to know those answers for the purpose of future investment, because Jaguar Land Rover has invested a lot of money in the midlands. Years ago Nissan was going to invest in Coventry but could not get regional aid, and that is why we went into the single market.

[Emma Reynolds]

I agree entirely. Jaguar Land Rover is also a very important company in my constituency. Those companies want clarity from the Government. The Brexit Minister told the House earlier today that he has made several statements and appeared before several Select Committees, but he has said almost entirely nothing. We need clarity and proper parliamentary scrutiny. That does not mean seeking to thwart the will of the people, as the right hon. Member for Loughborough said so powerfully.

I will focus my remarks on three tests that I want to put to the Government. First, are they driven by the national interest or their party’s interest? So far, regrettably, their record is not good. Was it purely a coincidence that the Prime Minister’s announcement that we would invoke article 50 by the end of March 2017 happened to be on the first day of the Conservative party conference? Was it just a coincidence that she wanted to reassure her party faithful that she, having been a lukewarm remainer, actually thinks that we should leave the EU?

Equally, the Conservative party’s interest was uppermost in the Prime Minister’s mind when she claimed that

‘there is no such thing as a choice between ‘soft Brexit’ and ‘hard Brexit’’,

because she knows that her party is divided on the issue. That is not only bizarre, but wrong. If there was no such distinction, why did the pound slump to a 31-year low days after the Tory party conference, due to fears of a hard Brexit? If there is no such distinction, why has the Treasury said that a hard Brexit could cost £66 billion a year in lost revenue and that the economy will be between 5% and 9% smaller than it would be if we stay in the single market? If there is no such distinction, why has Nissan said that there will be no further investment in its UK plants if it does not know whether in future it will face tariffs on its exports to the rest of the EU?

It is clear to me that some Tory Members—we have heard it already today—are happy to trade with the rest of the EU, which is still our main trading partner, on WTO terms. Worryingly, the International Development Secretary seems to be in that category. However, other right hon. and hon. Members on the Conservative Benches disagree. The right hon. Member for Broxtowe (Anna Soubry) called it “bonkers.” She is right, because it would mean tariffs on our exports: 10% on cars, 20% on beer and whisky, and obviously non-tariff barriers on trade.

The Conservative party’s 2015 manifesto—the right hon. Member for Loughborough has already mentioned this, but it is worth repeating—stressed:

“We benefit from the Single Market…We are clear about what we want from Europe. We say: yes to the Single Market.”

That is the basis on which the Conservatives were elected to government. They were right last year, which is why the Government must push to retain access to the single market.

Secondly—this is a really difficult test—can the Government mitigate the risks of leaving and maximise the opportunities? Again, so far the record is not good. Many right hon. and hon. Members on the Conservative Benches seem to believe that there are only upsides to leaving the EU, but it is obvious that there are some fundamental risks to our economy if we get this wrong. The Government should level with people and say, “Exiting the EU will not be straightforward; it will be difficult, sensitive and, indeed, risky.”

I believe that the Government must aim for a soft Brexit. That means having the best possible access to the single market without tariff and non-tariff barriers, and retaining workers’ rights, environmental and consumer protections and the security measures that are so vital to keeping our country safe. But I also believe that we need to look at some restrictions on free movement. I had many conversations with constituents in Wolverhampton who voted to leave the EU. They did so for a variety of reasons, but one of those was immigration. Some say that reconciling the two issues is impossible, but within the European economic area Norway has an emergency brake on free movement and Liechtenstein has controls over it, and within the four freedoms of people, capital, goods and services in the EU, there is not absolute free movement of services.

My third test—I will be brief, as I am going to run out of time—is that the Government should not be in denial about the point made by my right hon. Friend the Member for Leeds Central (Hilary Benn). We need to negotiate a transition period. If we are to negotiate a free trade deal with the rest of the EU, there is going to be a cliff edge between exiting, including closing the article 50 negotiations, and the conclusion of that free trade deal. That will take years; it will be a mixed deal and national Parliaments throughout the 27 member states will have to ratify it. I hope that the Brexit Secretary of State will not be in denial about that issue, which is one of the most important aspects of our renegotiation. I also hope that the Government will start to do a lot better.

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[Anna Soubry]

My hon. Friend is absolutely right, and I accept what he says, but let me say here and now that we have to abandon that target; we cannot keep it. We know the reality: people come here to work. In simple terms, Sir, who is going to do the jobs of those people who come here? There seems to be some nonsensical idea that, with a bit of upskilling here and a bit of upskilling there, we will replace the millions and millions of people who come and work not just in those low-skilled jobs, but right the way through to the highest levels of research and development—the great entrepreneurs. We should be singing out about this great country of ours; we should be making it clear that we are open for business and that we are open to people, as we always have been, because they contribute to our country in not only economic but cultural terms. We are in grave danger if we extrapolate in a way that I believe is not at the core of being British.

[Emma Reynolds]

I agree with a lot of what the right hon. Lady has said, and I made the same arguments to people during the referendum campaign. All I would say is that there is a spectrum here; there is a space between no free movement and free movement in its entirety. I am not arguing for no European immigration—I think these people have made great contributions to our country—but I do think we need to look at restrictions in some sectors and some areas. I think that would be respecting the mandate.

[Anna Soubry]

I am not going to demur from what the hon. Lady says.

What all this really proves is the absolute need for this place to do what the motion and the Government amendment say, which is to have these debates as we go forward, to shape our new relationship with Europe. All these issues have to be debated, so I fully agree with everything that has been said, and I will go one step further: the more I hear, and the more I think about this and listen to the learned and wise words of people such as my right hon. and learned Friend the Member for Beaconsfield, the more I am coming to the perhaps very quick conclusion that this place must vote on article 50. I really think that it is imperative that we do that.

In the short time that is available to me, I just want to add one thing. We do not come here just to have these rather esoterical debates. A lot of people listening to this debate might think that, yet again, this is politicians talking in terms and in ways that do not relate to what is really happening out there in the real world. What is happening out there in the real world is that British business is in a very difficult and serious predicament. We have heard about the value of the pound, which is at this record 30-year low. What does that mean? It means that a friend of mine sent me a text last night to say that her small business is now on the verge of going under—that is the reality of what is happening. It means that a great company such as Freshcut Foods in my constituency is seeing its best EU workers leaving; they feel, as my right hon. Friend the Member for Loughborough says, that they have no place here. People are finding, as the University of Nottingham has said to me, that they can no longer recruit. The university has lost some of its best academics because those people no longer feel welcome and valued in our country. I am sorry, but it has to be said: we should be hanging our heads in shame that that is the feeling of real people—real constituents of mine—and I will continue to speak out on their behalf.