European Union (Withdrawal) Bill

Geraint Davies Excerpts

3rd reading: House of Commons & Report stage: Second Day: House of Commons
Wednesday 17th January 2018 Commons Chamber

[Matthew Pennycook]

I am not sure that that warranted an intervention, but I await the hon. Gentleman’s contribution with bated breath.

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

Further to the point made by my hon. Friend the Member for Great Grimsby (Melanie Onn), does my hon. Friend agree that either the institutions and agencies that currently enforce EU rights, privileges and protections should be maintained as EU agencies, or a transitional arrangement should involve agencies and institutions that will protect people’s rights in respect of, for instance, work, the environment and consumer issues?

[Matthew Pennycook]

I certainly believe that, when it is appropriate and when the country will derive benefit, we should continue to participate in EU agencies. The important point, however, is that when the functions and powers of EU agencies are transferred to either an existing or a new body, the purpose, scope and effect of the rights and protections that flow from those agencies should continue. That is one of the issues that clause 7 fails to address.

Returning to my earlier train of thought, all of this was why the Prime Minister’s Florence speech of last year was so welcome. It made it clear that Government policy was to seek, semantics about implementation versus transition aside, a time-limited period in which the UK and the EU would continue to have access to one another’s markets on current terms, and with Britain continuing to take part in existing security measures.

Crucially, the Prime Minister made it clear that this bridging arrangement would take place on the basis of

“the existing structure of EU rules and regulations.”

That quite clearly implied the acceptance of the jurisdiction of the ECJ, as confirmed by the Prime Minister in an answer to the hon. Member for North East Somerset (Mr Rees-Mogg) in the weeks following the speech, when she stated:

“that may mean that we start off with the ECJ still governing the rules we are part of”. —[Official Report, 9 October 2017; Vol. 629, c. 53.]

It is also set out in black and white in the phase 1 agreement.

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[Geraint Davies]

Does the right hon. and learned Gentleman accept that we are less likely to catch up with the Germans on penetrating the Chinese market if we are out of the EU? We will have our back to the wall, facing tariffs, if we are not in the EU, and the Chinese will be able to bargain harder against a small player with few resources and little trade.

[Mr Clarke]

That is possible. The idea that the Germans find membership of the European Union a disadvantage in their economic performance in the modern world is, of course, a rather farcical fallacy. If we weaken our attractiveness to inward investment and if we weaken ourselves as a base for trade with the rest of Europe, we will attract less investment and less trade with the wider world, too. I entirely agree that that is a risk.

The Lancaster House speech transformed things by suddenly making the Government’s policy particularly dependent, apparently, on leaving the single market, leaving the common market and, incidentally, repudiating the jurisdiction of the European Court of Justice, which I will not go into because I have never been able to work out why the work of those judges, including the excellent British judges we have had on that Court, is particularly criticised. That is another matter.

I have never heard any Government Front Bencher attack the single market in itself or the customs union. When we hear speeches from Ministers about a bespoke new trade agreement, it sounds very much like an unbroken continuation of all the access we have to the rest of Europe under the single market and the customs union. The only objection to the single market, and the Prime Minister once expressed this to me at Prime Minister’s questions, is the four freedoms that go with it, including the free movement of labour. I still imagine that other countries would quite like to address the free movement of labour.

I think free movement of labour does us good—I would not want to get rid of it—but we do not need to run it in quite the lax way we have been running it for the last 20 years. The only other objection to a customs union, and I do not regard it as an adequate reason—staying in the customs union would solve the Northern Ireland and Irish Republic problem practically overnight—is that it stops the Secretary of State for International Trade going out and negotiating marvellous new trading arrangements with all sorts of places. Negotiating such arrangements would, of course, produce a hole in the common customs barrier that the customs union creates.

If anything, I am afraid the world is more protectionist than it used to be. The last great attempt by those of us who believe in a rules-based order in the global system was the Doha round, in which we tried to get the WTO rules to move on from their present rudimentary condition after what was then the triumph of the Uruguay round. The Doha round went on for years and years, and eventually it went into the sand. It was never completed to the satisfaction of anyone who agrees that there are benefits to all societies from having properly regulated and protected free trade.

I have already addressed the idea that, when we are no longer negotiating as a member of the EU, Trump’s America will be more likely than Obama’s America to throw open its doors to unfettered access to whichever goods and services we wish to send. The Brazilians are ambiguous. The EU has everything to gain from dealing with Brazil, but the difficulties are that Brazil insists on exporting food products on a grand scale and the internal economy of Brazil does not naturally lend itself to free trade. Mercosur, as a group, is almost incapable of agreeing on any common position.

I will not go on but, much though some in the present Administration would wish otherwise, I do not think India is yet ready for free trade agreements with countries such as Britain. I wish I could feel more confident it were otherwise, but I think the Lok Sabha will daunt anyone who tries to take on the various pressures in India in order to have a free trade agreement. I have been to India myself to try to get it to open up to legal services, with considerable support from a lot of Indian businesses that would like some of our countries to provide international quality services in Delhi so that they do not have to come to London to get their advice, but protectionism in every aspect of Indian society is not to be understated. We are not going to get far. I will not go on about China, as I said I would not go country by country.

This is all an absolute illusion. I would prefer to stay where we are, but apparently we are moving out. We are demanding a bespoke arrangement but, as yet, we have not been clear what that bespoke arrangement is, which is a considerable difficulty. This has been debated already and we have got some concessions, although they are not yet good enough, but when we finally reach a stage where the British Government intend to ratify a proposed deal, it is perfectly obvious to me from all our past constitutional conventions that they should come to Parliament to get its approval for that ratification. There was a key vote in 1972 when we joined the European Union. There was approval in principle of the deal that was proposed, which attracted Jenkinsite support to give the then Government a majority over their imperialist rebels, who were voting against it. But we started legislating in 1972 only when we had the approval of the House of Commons, by quite a comfortable majority, to ratify on the terms that were presented and explained. The same should happen here.

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[Geraint Davies]

This Bill is essentially about cutting and pasting the laws, protections and rights of the EU into British law, and the fundamental problems are that clause 9 gives sweeping powers to Ministers to strike out those laws, protections and rights and, quite simply, that we do not have the institutions to enforce those rights. In essence, new clauses 10 and 14 would ensure institutions are in place to enforce those individual, consumer, environmental and workers’ rights and protections.

The European Food Safety Authority, which responded to the horsemeat scandal, or similar agencies should be in place to prevent genetically modified, hormone-impregnated or antibiotic-impregnated meat, and so on, from coming from America. The European Chemicals Agency is charged with protecting us through REACH—the regulation, evaluation, authorisation and restriction of chemicals regulation—which prevents, for example, asbestos from being sold here when they can be sold in America. The European Environment Agency underpins our air quality and is taking the British Government to court. It has delivered blue flag beaches instead of low-tar beaches, and it is involved in ensuring biodiversity, etc. Euratom regulates nuclear power and research across Europe, including Britain. The European Medicines Agency ensures Britain can develop and sell drugs across Europe.

It is critical that institutions are in place to continue those processes, yet the White Paper said, for example, that protected habitats will continue without enforcement agencies after Brexit. In other words, we do not know there will be a guarantee that institutions will be in place to enforce the rights and protections we currently enjoy, which is why new clauses 10 and 14 are important.

We also know that Britain does not have the ready capacity to enforce rights and protections in the way those big institutions do. Enforcement would basically mean fining ourselves for not fulfilling air quality standards, which is meaningless.

New clause 14 essentially says that those rights and protections should also be instilled in new trade agreements, which the Government are hurtling ahead in agreeing in secret. Such rights and protections should therefore be frontloaded, so that people can be secure in the knowledge that Ministers will not sign off agreements that are perhaps in breach of domestic law and that will then be imposed by arbitration courts, whether through investor-state dispute settlements or through the investment court system.

[Mr Speaker]

Order. My gratitude to the hon. Gentleman is almost infinite, but I think he is concluding his peroration.

[Geraint Davies]

I am. I urge people to support new clause 14.

[Tommy Sheppard (Edinburgh East) (SNP)]

Given the shortage of time, I will confine my remarks to amendment 59.

I find it almost unbelievable that, 18 months after the referendum and six months after the Government introduced this Bill, they still have not provided or commissioned any proper economic analysis of what Brexit will mean and of the various options we have. In that information vacuum, it has fallen to others to try to fill the gap. A recent report from the Mayor of London concluded that 500,000 jobs are at risk as £50 billion will be taken out of the economy.

The Fraser of Allander Institute in Scotland, which is no friend of my party or of the Scottish Government, has concluded that Brexit puts 80,000 jobs in Scotland under threat. Just this week, a new analysis from the Scottish Government concluded that each person in Scotland could lose £2,600 if we leave the single market.

If the Government disagree with those analyses, I have to wonder why they do not publish their own. I understand that the Government are, of course, divided at the highest level—God knows they need to find agreement among themselves before they can get agreement with other countries—but that cannot be the whole explanation.

I believe the reason we have not had this analysis from the Government is that they know anything they publish will not support and provide evidence for the path they have chosen. Given that degree of denial and political myopia, it falls to this Parliament to try to save this Government from themselves. We can do that by supporting amendment 59, because the truth is that there are no good options here, only less bad ones. Clearly, the least bad option we can do is remain in the customs union and single market to protect our economy. The time has come to call a halt on what is happening and say, “This is the direction we must go in.”

As the right hon. Member for Carshalton and Wallington (Tom Brake) mentioned, this amendment has the backing of four parties. It is almost a united Opposition amendment, but there is an absentee friend—the Labour party. I say to Labour colleagues, even at this eleventh hour, not to chastise them but to welcome them in this campaign, “Don’t just participate. Come and lead the campaign against this Government. If you do not, you compromise the future.” In a few years’ time, when the consequences are clear, prices are going up and jobs are disappearing, the Leader of the Opposition will try to accuse the Government and they will look back and say, “You didn’t stop it at the time.” So I ask Labour colleagues to come with us and back amendment 59, and let us try to save this Government from themselves.