Covid-19: Future UK-EU Relationship

Debate between Gareth Johnson and Ian Blackford

Wednesday 15th July 2020 Commons Chamber

[Gareth Johnson (Dartford) (Con)]

Is the right hon. Gentleman aware that the CBI—hardly the biggest fan of Brexit—says that if we extend the implementation period it will create uncertainty for business and completely advises against it? What does he know that the CBI doesn’t?

[Ian Blackford]

I could read out statistics from all sorts of business organisations that are, quite frankly, scared stiff about what ending the transition will mean.

A survey by the Institute of Directors tells us that three out of four business leaders believe that their organisation is not ready for the end of the transition period and that one in seven says that dealing with the pandemic has taken up bandwidth that would have been devoted to preparing for Brexit. The Institute for Government says that in normal circumstances meeting

“the 31 December deadline would have been heroic: doing so in the midst of an international health crisis, with the energies of governments across Europe focused on their handling of the outbreak, seems out of reach.”

Jimmy Buchan, chief executive of the Scottish Seafood Association, said:

“We are within six months of Brexit and we still do not know what the future holds for us.”

That is the uncertainty that businesses are facing. For many businesses that manage to survive the coronavirus crisis, this second, Brexit shock would hit them at their weakest and could be the final straw that puts them out of business—more jobs lost, more households in desperate situations, and all because of the intransigence of the Tory Government.

It does not have to be like this. We on the SNP Benches welcome the EU’s openness to extending the transition period for negotiations. Six political parties from every nation of the United Kingdom wrote to Michel Barnier calling for the UK and the EU to agree a two-year extension. In a letter to me, representing the SNP, along with the Lib Dems, Plaid Cymru, the Social Democratic and Labour party, the Green party and the Alliance party, the EU’s chief negotiator confirmed:

“an extension of up to one or two years can be agreed jointly by the two parties. The European Union has always said that we remain open on this matter.”

Mr Barnier said that any extension decision should have been taken by the Joint Committee “before 1 July”. We have been given an olive branch—a get-out-of-jail-free card—but the Prime Minister has failed to grasp it. The UK Government have set themselves to crash out of the EU with a devastating bad deal or a catastrophic no-deal.

All the while, EU leaders have highlighted the lack of progress in negotiations. Angela Merkel recently said:

“To put it mildly, progress in the negotiations has been very limited. I will continue to press for a good solution. But we in the EU and also in Germany must and should prepare for the event that an agreement is not reached after all.”

That should deeply worry all of us.

There is still time to change course. The Institute for Government has made it clear that there are mechanisms for an extension. It cites four legal options for extending the transition period: amend the end date of the transition period in the withdrawal agreement; create a new transition period to begin on 1 January 2021, which would mean striking a new agreement alongside future relationship negotiations; include an implementation phase as part of the future relationship treaty; or create an implementation phase to prepare for a potential no-deal exit.

The Scottish Government have set out the evidence to back up the arguments for an extension to the transition. Their analysis has revealed that ending the transition period in 2020 could remove £3 billion from the Scottish economy in just two years—£3 billion in just two years. Are our colleagues from Scottish Tory constituencies prepared to sit back and see that self-harm take place against their constituents, or for once, are they going to stand up for us, stand up with us and stand up for Scotland?

The Scottish Government’s analysis revealed that ending the transition period will be calamitous—a £3 billion hit to Scotland made in Westminster and delivered by this Prime Minister and his Government. A no-deal Brexit scenario has greater economic implications and could see the economy 8.5% smaller by 2030 compared with the scenario of continued EU membership. That is the price that Scotland will have to pay if we stay in the Union of the United Kingdom. Those are eye-watering numbers, but behind the statistics is the human cost: unemployment, hardship, poverty—Scotland paying the price for Tory dogma.

I take no pleasure in saying that UK relations with the Scottish Government are worse than ever under this Prime Minister’s leadership. We have been increasingly concerned at the lack of any meaningful consultation with the Scottish Government and other devolved nations on the Brexit talks and at the growing threat of a Tory power grab in devolved areas, including agriculture and food standards—all for a Brexit fantasy that Scotland never gave its consent to and that is now being used as a power grab from the Scottish Parliament, and for a future that we never voted for.

It is worth reminding folk in Scotland of the promises that were made in 2014 during the independence campaign. If we stayed in the UK, we would be staying in Europe. Well, we stayed in the UK, and we have been taken out against our will. All the way through this process, the Scottish Government have sought to achieve a compromise to best protect jobs. [Interruption.] We talk about compromise, and the Tory MPs laugh at Scotland. That is the way that Scotland is treated by the Tories in this House. They ought to be ashamed of themselves. Carry on, because people in Scotland will be listening.

We have said that staying in the single market and the customs union is the least worst option for jobs and our communities. At every turn, we have been shut out, shouted down and disregarded. It is little wonder that so many who voted to stay in the UK in 2014 now recognise the UK they voted to remain in no longer exists. It is little wonder that poll after poll shows a majority for independence. So many see our future as an independent country in Europe—an outward-looking Scotland, working constructively with others—and see this as a choice of a progressive future with independence, or one of staying with an increasingly inward-looking UK. [Interruption.] The Under-Secretary of State for Scotland, the hon. Member for Banff and Buchan (David Duguid) keeps chuntering away from a sedentary position. If he wants to say something, I will allow him to get in. [Interruption.] Well, perhaps he would not continue to shout and chunter; it is most disrespectful to everybody, including his own constituents.