The Government's Plan for Brexit

Emma Reynolds Excerpts

Wednesday 7th December 2016 Commons Chamber

[Mr Davis]

What was on the ballot paper, and what I think a million Scots voted for, was leaving the European Union—[Interruption.] I will come back, do not worry. I am not going to sidestep the question; I never do.

The simple truth is that, as the Prime Minister said—I am a Minister of the Government, remember—this is not a binary option. There are about four different possibilities, and we are still assessing them. I have given an undertaking to the Opposition spokesman that I will notify the House in detail when we come to that decision.

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

rose—

[Mr Davis]

I will make some progress and then I will give way again in a moment. There are some among the Labour party who think that leaving the jurisdiction of the ECJ will undermine employment law. Again, that shows a sorry ignorance—employment protection in the UK does not derive principally from the ECJ.

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[Mr Davis]

My right hon. Friend was not listening; she probably made up her question before she heard the last paragraph. I said that there would be no law changed in this country without the approval of the House of Commons.

Let me come back to the issue of customs union, since it is important. There are several options on customs union. One is shown by Norway, which is in the single market but not in the customs union. One is shown by Switzerland, which is neither in the customs union nor in the single market, but has a customs agreement. A whole series of options exists, and we will come back to the House about that when we are ready.

On my right hon. Friend’s other point, she intimated that because I gave the undertaking to the Opposition spokesman, it was somehow to the Opposition, not the House of Commons. Any undertaking made from this Dispatch Box is to the whole House of Commons, and she should understand that.

A further area in which our aims have been made very clear is justice and home affairs. As I said in the House last week, our aim is to preserve the current relationship as best we can, consistent with our broader aims. That clearly extends to areas such as security and law enforcement. Even after we leave the EU, the UK and the EU will face common threats, from terrorism to organised crime. As such, I believe that there is a clear mutual interest in continued co-operation in these areas. The security of Europe will remain of paramount importance to us, meaning that we will continue to co-operate as we do now with our European partners to help to maintain it.

As for the area that has dominated the debate so far—trade and the European market—the Government have been as clear as is sensible at this stage. We have said that we seek the freest possible trading arrangements, in respect of both tariffs and non-tariff barriers. The Government’s view is that the best deal is most likely to be achieved by a negotiated outcome.

[Emma Reynolds]

rose—

[Mr Davis]

One moment. There is a range of means of arriving at a deal and there is a range of outcomes, and it does not make sense to box ourselves in. I am a believer in free trade, and I want to see the freest trade possible with the European Union and also with the rest of the world. We will be a global and outward-looking nation and a leading advocate for free trade. We want to be able to embrace the opportunities of Brexit—I know that the shadow Chancellor agrees with that, although it apparently makes my opposite number “furious”—but we want to maintain the best relationship possible with the European Union.

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[Hilary Benn]

No, I do not. First, we have no idea what the legislation will look like. I would just make the point that, when I last checked, Norway is not a member of the European Union. Unless any hon. Members wish to contradict me, it is not a member. It is outside the EU and it is a member of the single market. What that demonstrates is that there are choices to be made about our future relationship with the EU.

All any unreasonable delay in bringing forward the plan will do is create further uncertainty. The hon. Member for Bedford (Richard Fuller) is no longer in his place, but he said that it might consist of hints. I merely remind the House that when Moses came down from the mountain bearing the tablets, they did not contain the 10 hints. He was pretty clear about what he was telling people to do. I remind the House that the Secretary of State has got up eight times to enlighten us not a great deal about the Government’s objectives, and I have never heard Parliament described as “elbow joggers” before, although I did like the analogy. We are not elbow joggers, but participants in the process and we intend to scrutinise the Government as they undertake it. Apart from anything else, it would have been quite unacceptable for the Government to have told the 27 member states what their objectives were before they told Parliament and the British people. It is therefore really important that we get the plan and that the Government publish one with substance.

To be fair to the Government, in some areas, we know what the plan is. That has been set out very clearly for the car industry. We know what the Government want: no tariffs and no bureaucratic impediments. Those were the words of the Business Secretary. They do not want anything to happen that would make it more difficult to trade. I am sure the rest of the manufacturing sector says, in all the meetings the Secretary of State is having, “Okay, that’s great for cars, but what about us?” Is it unreasonable for the Government then to say what their objectives are for the rest of manufacturing industry? I think that is perfectly reasonable.

There is then the curious case of the customs union, which got even curiouser during the Secretary of State’s speech. The Prime Minister has now told us twice that it is not a binary choice. Now we understand it is a four- way choice. The Secretary of State said there are four different models. The right hon. Member for Broxtowe (Anna Soubry), who unfortunately is no longer in her place, asked a perfectly reasonable question: whether he could at least tell us what the four different options are, so that we can all join in the conversation on which of the four the Government might eventually decide to choose.

Presumably, we are going to seek maximum access to the single market. For financial services, and the jobs and the tax revenue that depend on it, it is really important that we are able to keep access to the single market. I am sure that causes the Chancellor to lie awake at night, worrying about it. How will those controls on free movement, which the Secretary of State reminded us of, work in practice? How will they affect lecturers at universities, doctors and nurses, people picking and processing vegetables, chefs, care workers, highly skilled engineers, technicians and IT specialists? Will companies—this is a question we have heard a lot in the Select Committee—continue to be able to move their staff within their companies to another base elsewhere in Europe to repair a product, solve a problem or create a new business opportunity? When will we be able to offer clarity to EU citizens about their position here? We now know from the Home Secretary that they will all have to be documented. It is a fair question: how many civil servants will that take, how much will it cost and when will it be completed?

What about our universities? Young people from the rest of Europe will be asking themselves whether they are still going to apply to come to Britain, and when will they stop being treated as a home student and become an overseas student? They need to know and the universities need to be able to plan. Will we continue to participate in the Erasmus programme that allows young people in Britain from low-income backgrounds to study elsewhere in Europe? Will we continue to be a part of Horizon 2020?

What about the whole range of agencies? I will pick one: the European Medicines Agency. Now, one could say that wanting to remain a member of the EMA is cherry-picking. However, working with our European neighbours to agree on how quickly and safely we can bring new medicines to market is good for patients in Britain as well as patients in Europe. I plead with the Government to be just a bit more enthusiastic—I do not say this so much about the Secretary of State—and clear that they are determined to find a way of continuing to co-operate on foreign policy, defence, security and the fight against terrorism, because that is so important to us all.

Finally, on transitional arrangements, the cliff edge and the negotiating plan, previous Governments, in respect of a whole host of treaties, including the Lisbon treaty, the constitutional treaty, the Nice treaty, and the Amsterdam treaty, and even when we sought to join the common market in 1967, all set out what they were trying to achieve. George Brown talked about the need for considerable adaptations and an adequate period. If it was sensible to admit the need for transitional arrangements when joining the common market, which was a much simpler organisation, is it not sensible for the Government to admit now that, if they cannot negotiate everything within 18 months—listen to what Michel Barnier said yesterday—they will be prepared, if necessary—

[Emma Reynolds]

Will my right hon. Friend give way?

[Hilary Benn]

Will I get more injury time, Mr Speaker?

[Hilary Benn]

Then of course I give way.

[Emma Reynolds]

My right hon. Friend is very generous. Does he agree that businesses have expressed concern about the uncertainty created by the cliff edge in March 2019, about how we might fall back on WTO rules and tariffs and about how bad that would be not only for businesses but for jobs, our constituents and the broader economy?

[Hilary Benn]

My hon. Friend is absolutely right. We have heard a lot of evidence before the Select Committee, of which she is a valued member, saying precisely that. As she said, we have heard much about bureaucracy, rules of origin, delays and so on. Whole businesses have been created on the basis of goods moving back and forth four, five, six times before finally being added to the product being sold. People need to understand that the way business works in the Europe of which we have been a part creates and sustains jobs. To say, “We will walk away. It doesn’t matter. We can cope,” really misses the point about why business is worried about the implications.

The last point I want to make to the Secretary of State concerns the question of a vote on the final deal. I heard him say today, “I expect there will be a vote”. Well, I expect that the District line will turn up within five minutes, but today there were longer delays. He said, as I understood it, that it was inconceivable that there would not be a vote. Well, some people would have said it was inconceivable that Donald Trump would be elected President of the United States. It does not fill me with a great deal of confidence. I gently say to him that the simple response to the question, “Will there be a vote when the deal comes before us after the negotiation?”, is to stand up, look the House direct in the eye, and say, “Yes, there will be a vote.”