European Union (Withdrawal) Bill

Geraint Davies Excerpts

Committee: 7th sitting: House of Commons
Wednesday 13th December 2017 Commons Chamber

[Matthew Pennycook]

I wish to make a little progress.

That is why we tabled new clause 66, which would guarantee, by means of prescribing when exit day for the purposes of this Bill can be appointed, that both Houses have a meaningful vote on the terms of the UK’s withdrawal from the EU and, just as critically, a vote in the event that no such agreement is reached and the Government are determined to take us out of the EU without a deal—a catastrophic scenario that would result in legal chaos, significant damage to our economy, the erection of a hard border in Northern Ireland and serious harm to Britain’s standing in the world. We have consistently called for the Government to make it clear that no deal is not a viable outcome.

[Geraint Davies (Swansea West) (Lab/Co-op)]

In the event of a no deal, people are concerned about falling into World Trade Organisation rules and tariffs, but will my hon. Friend confirm that, of course, the WTO does not cover services, which are the majority—in fact, 80%—of our exports and which require intricate, detailed negotiations? In the case of a car, two thirds of it are now services and often parts of the car go across borders. Therefore, does he not accept that having no deal would not be a disaster—it would be a catastrophe?

[Matthew Pennycook]

I agree with my hon. Friend’s point about services. I say to all hon. Members who are happy to contemplate a scenario in which the Government walk away from the negotiations and this House is merely a spectator in that outcome, that that is not acceptable and this House should not accept it.

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[Dominic Raab]

No, I am not going to give way again.

Amendment 47, tabled by the Chair of the Exiting the European Union Committee, is slightly different in that it would make the use of clause 9 dependent on approval of the withdrawal agreement by both Houses without specifying statute. Similar timing concerns apply. We would need to retain the option to ready statutory instruments before such approval, but I have made clear, and I make clear again, that they would not enter into force until Parliament had held its meaningful vote.

New clause 68 replicates the provisions of amendment 47, with the addition that the Government must seek the approval of Parliament no later than three months before the date of exit. We cannot bind ourselves to such strict sequencing constraints when the latter stages of the negotiations remain unknown. To do so, in fact, would be irresponsible. It is also a vague and arguably defective new clause, I say with the greatest respect, because it is not clear whether by the “conclusion” of the agreement the hon. Member for Swansea West (Geraint Davies) means finalisation of the text, signature, ratification or entry into force. For those reasons, I hope hon. Members will not press their new clauses and amendments.

[Geraint Davies]

Will the Minister give way?

[Dominic Raab]

I am going to make some progress.

Amendment 116 would require a referendum on accepting the deal or remaining in the EU before the clause 9 power could be used. I do not think that is feasible, and it is not desirable. The Government are clear that the British people have voted to leave the EU. We will deliver on their direction. We will deliver on their mandate. Frankly, this is a pretty thinly veiled attempt to block Brexit and defy the result of the referendum, in contrast to some of the other, legitimate, concerns raised across the House. If hon. Members wanted to hold a second referendum on the terms agreed with the EU, the proper time and place to argue for such a requirement was when the EU Referendum Act 2015 was passed. I therefore urge that the amendment not be pressed.

New clause 4 would require separate legislation to set the exit day, and new clause 66 states that the exit day cannot be set before Parliament has given its approval for the terms of the withdrawal agreement. The Government accept the case for legislative prescription of the exit day for the sake of finality and legal certainty, so I hope that the new clause has been rendered unnecessary.

New clause 19 and amendment 55 mandate that the power in clause 9 cannot be used until the publication of the withdrawal agreement, and that it should not be available until all other exit Bills have passed. It is clear that regulations cannot be made under clause 9 until an agreement exists and its contents are known. It is not necessary, then, to require on top of that that the agreement be published and placed in the House of Commons and House of Lords Libraries before the power can be relied on. It is of course standard practice to lay international treaties before Parliament under the Constitutional Reform and Governance Act 2010. Equally, it is not right to tie the use of this power to the publication of other primary legislation passed in this Session. I therefore urge the hon. Member for Nottingham East (Mr Leslie) not to press the amendment.

Amendment 361 was tabled by my hon. Friend the Member for Bromley and Chislehurst (Robert Neill), who is the Chair of the Justice Committee.

The amendment would create a separate power to legislate for the implementation period. I hope that the Government’s announcement of a separate Bill—primary legislation—covering the withdrawal agreement and the implementation period addresses his concern.

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[Mr Leslie]

Let us think about all the important priorities for our constituents, including public service reform and living standards. This is one of the most frustrating things: we are treading water just to keep up what we already have. Indeed, things will not be as good as the arrangements we already have. What annoys me most is when Ministers try to gloss over this and pretend that it is all going to be fine, saying, “There’s no problem here. There’s nothing to see.” Lord Price, who used to be a International Trade Minister, tweeted about the 36 free trade agreements, saying that they were all fine and that:

“All have agreed roll over.”

The current Minister of State at the Department, the Minister for Trade Policy, retweeted that. However, when we ask the Secretary of State whether countries have agreed that they all roll over, we are told, “Well, we haven’t had any objections from them to suggest they might not roll over.” Will they want to renegotiate? We are told, “Well, we haven’t heard from them yet.” This is an incredible example of trying to put the best possible gloss on the situation, and to get past exit day and worry about it all afterwards. The Government will then pretend that everybody knew about this beforehand.

I will finish my remarks now because I want to hear the speech of my hon. Friend the Member for Swansea West (Geraint Davies); we need an assessment of these treaties and of what could be lost; we need an assessment of the risks and of what is at stake; and we need honesty and transparency from Ministers about the consequences. This is not what the public expected when they voted in the referendum, and that is why I urge Members to support new clause 20.

[Geraint Davies]

I shall speak to amendment 352, which seeks to maintain for future trade deals the EU rights and protections that are currently enjoyed in other trade deals. A problem that has already been mentioned is that we are going to move away from the comfort zone of the EU, a massive trading bloc which, on 8 December, agreed the key provisions for a trade deal with Japan that will embrace 30% of global GDP and 600 million people and that has integrated in it the Paris agreement. It does not have investor-state dispute settlement, but it does have various protections. One of my key fears about that particular agreement, which will come into effect in March 2019, is that such agreements take a long time to put together. If we want to come along after the event and say, “Can we join in?” the chances are that the terms will not be as good.

As for our negotiations with other countries, if we exit the EU and expect Chile or Uruguay or some other country to offer us the same trade terms that it has with the EU, which is a much bigger bloc, at a time when we are much weaker, we will be seen among the international trading community as a vulnerable victim of our own self-inflicted harm. They will say, “We will give these terms to the EU, but you are just a small player compared with the critical mass of the EU.” That would undermine not only the financial impact of the terms of trade, but the standards that we currently enjoy.

People will be aware that the REACH arrangements—the registration, evaluation, authorisation and restriction of chemicals—mean that manufacturers in Europe are required to prove that a chemical is safe before it is sold. In America, however, manufacturers can basically sell asbestos and other harmful products, and it is for the United States Environmental Protection Agency to tell them that they cannot. The worry is that our regime and our standards may change as we are thrust into the hands of the United States, and that workers’ rights, human rights and other rights may change due to China.

The Minister will know that the widespread use of hormones in meat production in America is giving rise to premature puberty among children, and that the widespread use of antibiotics is leading to much greater resistance to them. There is also chlorinated chicken, genetically modified food and other things, and we will be under enormous pressure from the United States to accept standards that are below those that we enjoy as a member of the EU. Donald Trump stood up at his inauguration and said that he would protect the American economy from the foreign countries that were taking America’s jobs, and he has already shown in the Bombardier case that he will play tough. The United States is a much bigger player than Britain, and the competition between the EU and the US is a matched fight when it comes to the negotiation of a deal such as the Transatlantic Trade and Investment Partnership. We will be a much smaller player, and we will have left the conditions of the EU.

Ministers currently have quite widespread powers to sign deals. The current International Trade Secretary signed a provisional agreement for the comprehensive economic and trade agreement without parliamentary approval, and we should be drawing such powers in for parliamentary scrutiny, amendment and agreement. There is a risk that a negotiated settlement that reduces the standards that our citizens enjoy will happen outside this place. I therefore tabled amendment 352, which seeks to maintain the same standards, rights and protections that we enjoy in Europe, as protection in case we end up being asked to vote on trade deals that have all sorts of dire consequences beneath the surface for public health, workers’ rights and consumer protection.

[Tom Brake]

The hon. Gentleman rightly mentioned chlorinated chicken, and he should be worried not only that the Americans may seek to impose it on us, but that our International Trade Secretary has said:

“There are no health reasons why you could not eat chicken that had been washed in chlorinated water.”

Our own International Trade Secretary therefore seems to be advocating the consumption of chlorinated chicken.

[Geraint Davies]

It is an interesting idea that foxes have been eating chlorinated chicken.

As the right hon. Gentleman says, the concern is that the International Trade Secretary, even at this early stage, will look to undermine consumer standards, health standards and other standards in order to fix a deal and have something on the table to avoid the humiliation we see coming. As has been pointed out, it is in the interest of other countries to hold back from striking an early deal and to let the UK sweat. We will be in a difficult place if we do not have agreement on tariffs with the EU and elsewhere.

[Alison Thewliss (Glasgow Central) (SNP)]

Is the hon. Gentleman aware that, as well as chlorinated chicken and other items, infant formula is regulated differently in the US from in the EU? There are higher levels of aflatoxins in US infant formula than in EU infant formula, which could prove detrimental to infant health.

[Geraint Davies]

People will know that the EU has enormous capacity for negotiating trade deals, and we have been relying on it for the past 40 years. Over the past few years the EU has had an intricate dialogue with the United States on TTIP and with the Canadians on CETA to try to bring about some sort of harmonisation and agreement. TTIP has hit the buffers and is not going forward, but my point is that we simply do not have that negotiating capacity. If the EU’s huge capacity cannot achieve agreement in a short amount of time—it takes a long time to get these things right—what hope do we have? Very little.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

Does my hon. Friend agree that the EU was able to extract additional protections on the environment and workers’ rights from the Canada deal because the EU worked together as a big bloc? At one moment it looked like the EU would be unable to extract those protections, and it happened only because Belgium and other countries insisted. On our own, we must not be able to be picked off by Canada, the US or any other country—they have already tried to pick off the EU.

[Geraint Davies]

That is precisely right. What we are now seeing with the Japan deal, as with CETA, is that it will now explicitly protect the right of states to set higher regulatory standards than their treaty partners; public services; the precautionary principle; labour rights; and sensitive economic areas. The deal will also make an explicit commitment to the Paris climate agreement and will safeguard policies intended to protect the environment.

With those blueprints for a harmonious future, we are now jumping ship. We will be left on our own, floating around in the sea and striking out to hold on to bits of timber for dear life. This is very frightening. Earlier we discussed the situation of a deal or no deal, but the problem is that when we do strike a deal, the EU is not there to penalise or punish us; it is simply there to respect the interests of the EU27, which it will. The EU27 will tell us what we are getting, and we will have to like it or lump it. Lump it would be much more painful—we would go on to WTO rules, which people often mention in this Chamber. People need to remember that WTO rules apply only to goods, not services. The trade in services agreement is currently being negotiated outside the WTO so, because 80% of our exports are services, a large amount of our exports will not even have trade with tariffs; there will simply be no agreement on trade. As there is ambiguity between goods and services, such as with cars—cars are two thirds services because of subcontracted labour, lawyers, payroll and various other things—it is a complex area.

A no deal situation would be catastrophic, and the Europeans know that, so they will say what they want and we will have to accept it. If that is unacceptable and much worse than the status quo, the people of Britain should have a final say with a vote on the exit deal. That is not in amendment 352—people do not need to worry about that—although the right hon. Member for Carshalton and Wallington (Tom Brake) has tabled amendment 120, which we will consider next week. Half the public already want a vote on the exit deal. Only 34% do not want a vote, and 16% do not know. As it emerges how appalling the future being created at the hands of this Government will be, there will be growth in support for such a vote.

Amendment 352 simply says that we should aim to, and would require us to, enjoy the current protections, rights and standards we have in the EU in future trade agreements, in the knowledge that those standards are going up, as I pointed out is happening in the case of Japan. All I am asking for is that we keep the current parity, so that as Europe moves up we at least stay the same, rather than plunge down into the depths of poverty, lower health standards and so on.

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[Sir Desmond Swayne]

I have a great deal of affection and respect for the hon. Member for Nottingham East (Mr Leslie), and he has drawn attention to a perfectly proper area of concern, to which, strangely, his remedy is merely a report—but then the mask slipped. We have heard all this sanctimonious guff this afternoon about the need for this House to take back control and about proper scrutiny—everything we heard in the earlier debates —but now we see the real motive. Of course he was assisted by others, whom comrade Lenin would have properly referred to as “useful idiots”, but now the mask has slipped.

The real motive—the hon. Gentleman made it absolutely explicit—is to reopen a question that he does not believe was given sufficient attention at the referendum. That has just been confirmed by the hon. Member for Swansea East—

[Geraint Davies]

West.

[Sir Desmond Swayne]

Swansea West. The hon. Member for Nottingham East said that he did not believe that people should not have an opportunity to revisit their decision, and that they have a perfect right to change their mind—I accept that. I am not in favour of some sort of African democracy of one man, one vote, once. People perfectly rightly have an opportunity to do that, but if there was one thing on which both sides in the referendum campaign were agreed it was on the importance of the vote that took place on 23 June 2016. He has every right to campaign for a second referendum, and I am glad that he has made it explicit this evening in advocating for his amendment that that is the real agenda. The purpose is to delay for long enough for something to turn up. An essential ingredient of giving time for something to turn up so that people will change their minds is delay, and that is what the process of all today’s amendments has, in essence, been about.