European Union (Notification of Withdrawal) Bill

Gerald Howarth Excerpts

Tuesday 31st January 2017 Commons Chamber

[Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I rise to follow the right hon. Member for Leeds Central (Hilary Benn)—not that I will agree with much of what he said, but I fully respect his ability and strength of purpose, in line with what my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) said, to stand by his convictions. It is therefore a privilege to follow him.

It is also a privilege for me, as it is for many of my colleagues, to speak on this Bill. It is without doubt that I support the Government and therefore the passage of this Bill. I commend the hon. and learned Member for Holborn and St Pancras (Keir Starmer), the Opposition spokesman, who made a particularly measured speech on what the Bill is and is not about. He was clear in his words, for which I commend him because I actually agreed with them when he said that this is about giving the Government the right to invoke article 50, and nothing more. He said in his interesting speech that no place but here can have the right to change domestic laws, and I agree. That is why I and my hon. Friends have urged that we repeal the European Communities Act 1972 at the same time. Strictly speaking, that is not necessary under article 50, but it is the right thing to do domestically and provides an answer to those who say, “But what will we do about all these issues?” Every element of our membership of the European Union is within that Act, and I am certain that the House will debate that for many hours and reach a decision.

I have a huge amount of respect for my right hon. and learned Friend the Member for Rushcliffe. We served together in the same Government and have debated this issue for a long time. There is nobody whom I respect more in this House than him. He is as constant as the compass. There is absolutely no way in which anyone could have any doubt about where he was going to be not only on this matter, but on many others. I look across the Chamber to my erstwhile right hon. Friend, the right hon. Member for Sheffield, Hallam (Mr Clegg), who will agree that during the coalition Government we absolutely knew where my right hon. and learned Friend the Member for Rushcliffe was going to be on many issues in Cabinet—invariably not where the Government were.

[Sir Gerald Howarth (Aldershot) (Con)]

Not only is our right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) to be respected for his views on Europe, about which he has been entirely consistent and courteous, but he was surely one of the most remarkable Chancellors of the Exchequer that our country has seen.

[Mr Duncan Smith]

I do not doubt that at all. In fact, so successful was he that he managed to tie the following Government in all sorts of knots as they sought to pursue his policies without any of the same drive or intelligence in how they were going to do it.

My purpose today is simply to explain that I opposed the Maastricht treaty. In case anybody asks, I did not actually want to leave the European Union. I originally voted to join the European Union, or the Common Market as it was then, but when it came to Maastricht I decided that there was something fundamentally wrong with the direction of travel. I am going to raise the name of an individual whom not many people in this House ever raise in debate: Altiero Spinelli. He was essentially the architect of both the Single European Act and the Maastricht treaty. His purpose was quite clear. He believed that the whole purpose of the European project was the eradication of the nature of the nation state. He said:

“If a post war order is established in which each State retains its complete national sovereignty, the basis for a Third World War would still exist”.

I do not agree with him, and I never did. The reason we fell into the terrible cataclysm of the second world war following the great depression was the absence of democracy and, most importantly, robust democratic institutions in many European states. War will never happen where we have democracy and strong democratic institutions with open trade. Such democracies simply will not do that. My sense was that the European Union’s direction of travel from Maastricht was bound on a course that was going to lead to the UK ultimately deciding that it can no longer stay within it.

I agree with much of what my right hon. and learned Friend the Member for Rushcliffe said. I have come to a different conclusion, but I fully respect anyone who decides to vote against the triggering of article 50. They were sent here to use their judgment. Yes, the British people have made a decision, but the job of an MP is to use judgment on such matters. If somebody chooses to oppose the Bill, I will respect that. I will disagree with them, but they deserve a hearing and we should in no way attempt to shout them down.

--- Later in debate ---

[Mr Tyrie]

TheCityUK did say that it was the worst possible thing for the financial sector, and it has clearly decided that the best thing to do is to look for the opportunities rather than spend time moaning about where we are. On the basis of what I read on my iPad on my way to the debate, it has focused on the point about the customs union.

The Treasury Committee has heard convincing evidence that both parties in the negotiations—both the EU and ourselves—have a lot to gain from maintaining a high degree of access to the single market, and a lot to lose from the absence of such access. We should bear it in mind that the EU, like the UK, benefits from our integration with European supply chains in the automotive and aerospace sectors, for example, and we all benefit from access to London’s deep and liquid financial markets, which lowers the cost of capital to European firms, and of course to British firms. Restructuring manufacturing supply chains would cost both sides a lot; so, too, would the fragmentation of the financial markets.

[Sir Gerald Howarth]

Will my right hon. Friend give way?

[Mr Tyrie]

I will not, if my hon. Friend will forgive me, for the same reason previously mentioned—I will not get any extra injury time.

Unlike the customs union, access to the single market is certainly not a binary choice: a wide variety of options is possible. We do not need to look into the crystal ball; we can read the book. Switzerland has better access than Saudi Arabia; Canada has better access than Columbia. Reverting to WTO rules would be a huge risk for the UK—one that we should do a great deal to avoid.

There is a majority in the country for leaving, and if that means anything it must mean an end to the direct applicability of EU law and the restoration of control over EU migration. We should also bear it in mind that there is certainly a majority in the country for a high degree of continued engagement with our closest neighbours, which many on the continent also want. Huge advantages can flow from maintaining a high degree of political and economic engagement from outside the EU. It can be as economically beneficial as it will be politically expedient to try to construct it. It can help heal the Brexit wounds to which the Prime Minister referred in her outstanding speech, and it can address the deep unease that seems to be developing about Brexit among the young. Many of them are rejecting much of the irrationality of current political discourse coming out of Washington, and many are certainly rejecting the populist economic nationalism that President Trump represents, which some also attribute to Brexit.

In demonstrating that we understand and are responding to those voices of concern, we can win support at home, and we can construct alliances among our counterparties abroad by making it clear that we want to engage deeply with the EU from outside. That is why, if we can avoid the politics of unreason and avoid, too, the divisions at home and abroad that a disorderly and confrontational Brexit could bring, we can still reap considerable opportunities from the Brexit decision.

--- Later in debate ---

[Mr Baker]

I do agree. Since we are having this debate and are passing, I hope, this Bill, I think the Prime Minister will be well equipped to get on with it swiftly.

The more I work in my capacity as chairman of the European research group with Legatum Institute Special Trade Commission, the more I realise that the four points I have described are highly realisable. The more the Government come to realise that, the more confident they will be to trigger article 50 early.

My second point is that we are here today, of course, to agree the principle of this Bill, and it is a simple principle—that we should confer on the Prime Minister the power to see through the referendum result. I consider myself blessed indeed that the Wycombe district voted remain. I say “blessed indeed” because, although my constituency covers only three fifths of the district, I am well aware that, given the position that I have held with my colleagues and the work that I am now doing, if I did not have that constant reminder that we must serve 100% of this country, it would be easy to be too “hard over” on the issues. We must listen to everyone and take account of their concerns, but we must also see through what is in the best interests of this country, and I believe that that is the complete fulfilment of the 12-point plan set out by my right hon. Friend the Prime Minister.

In that context of fulfilling the wishes of the British public—the whole nation—I would say that all choices have consequences. The Lisbon treaty meant that the European Union constitution was booted through against the positive expressed wishes of populations. That drove me into politics, because I thought it important for power always to originate with the people. Similarly, I think that if the House were to refuse the passage of this Bill, we would suffer in this country a political implosion whose nature we can scarcely imagine.

Today, I believe, we can objectively say that only one party is capable of forming a stable Government, although I would prefer there to be two. I believe that if we were to go ahead and refuse to pass the Bill, even our own party would suffer grave consequences. It is in all our interests for it to be passed.

With that in mind, I should like briefly to defend the former Prime Minister, who has been described today—most unfairly, in my view—as reckless. I dare say, and I think that the record will bear it out, that I have done more than any other Conservative Member in the last year to organise opposition to David Cameron, and it is for that reason that I feel able to say that, in my experience, everything he did was motivated by the very highest concerns for this country. He needed to keep our party together so that it could survive a referendum that was necessary, and still be capable, as it is today, of being strong, united and determined to see through the best interests of the country.

Although we differed in the judgment, I am absolutely sure that David Cameron campaigned for remain because he believed that it was in the country’s interest. I believe that far from being reckless, as he was accused of being earlier, he served this country with profound decency, and, above all, with the pragmatic conservatism which—in his view—led him to campaign for remain in the best interests of the country. Of course I disagreed with him, and I am glad that we are where we are. If I have a lament, it is that he is no longer here—

[Sir Gerald Howarth]

Will my hon. Friend give way?

[Mr Baker]

I cannot, because others wish to speak.

If I have a regret, it is that David Cameron is not with us today. [Interruption.] I mean that he is not with us in the House today. [Laughter.] I am grateful for the lighter tone.

I hope very much that in years to come, when future generations look back on this moment—not only on this issue, but on social reform and the reform of our public services—David Cameron will be seen as the great statesman he is.

[Stephen Kinnock (Aberavon) (Lab)]

It is a pleasure to follow the hon. Member for Wycombe (Mr Baker), who made an interesting speech. [Laughter.]

I am a passionate supporter of the European Union, with both my heart and my head. I am married to a Dane, and both my daughters were born in Brussels. I have lived, worked and studied in a number of European countries, and I have first-hand experience of how inspiring and productive international political co-operation and economic solidarity can be. I campaigned passionately for remain, and I am in no doubt that the result of the referendum will eventually weaken our economy, erode our sovereignty, and diminish our place in the world; but I am, above all else, a democrat. The debate in this country was had. The votes were cast, the ballots were counted, and my side of the argument lost. The rules are the rules, and any attempt to frustrate the process will serve only to corrode our democracy further, and to cause deep and lasting damage to our institutions.

The Brexit process will have two phases, as stipulated in section 1 of article 50. The first will be withdrawal. That will be done through the triggering of article 50, a process limited in scope to the detailed terms of the divorce, and to the specific mechanics of disentangling Britain from the European Union. Then comes phase 2, the process through which we establish our post-Brexit relationship with the EU27 as a non-EU member state. That will be conducted through article 218. This second phase will take several years and will require ratification by 38 parliamentary Chambers, from Brussels to Berlin, from Warsaw to Wallonia. It is the article 218 process that will address the core questions that have come to dominate our politics for the last year or so, namely free movement of labour and the status of our relationship with the single market and the customs union. So, in spite of all the sound and fury we have heard today, the success or failure of Brexit will in fact depend on the terms of the article 218 package, not on the details of what is agreed under article 50.

In her Lancaster House speech, the Prime Minister claimed that it would be possible to negotiate both the article 50 deal and the article 218 deal by the spring of 2019. This was a deeply irresponsible and deluded claim; it is absolutely absurd to believe that the 38 Parliaments across the continent will be ready, willing or able to ratify such a complex, politically sensitive and comprehensive package in two years. It is therefore high time that this Government levelled with the British people.

[Sir Gerald Howarth]

Why was it, then, that Michel Barnier, the EU commissioner charged with Brexit negotiations, said he wanted the negotiations finished within 18 months, and then six months for the ratification process to take place? Was he not telling the truth?

[Stephen Kinnock]

Michel Barnier was referring to the article 50 process; the article 218 process, which will define our future end-state relationship with the EU, is a completely different matter. It is worth noting as well that Michel Barnier has quoted a figure of €60 billion as the cost of leaving the EU.

It is therefore time that the Government levelled with the British people. The very best we can hope for is an acceptable article 50 exit deal, alongside an interim transitional package that avoids the disastrous cliff edge of resorting to WTO rules. And what is the most likely form of this interim deal? It is quite clearly the European economic area. The EU will not be minded to do a bespoke interim deal for the United Kingdom. Why should it when the EEA is a ready-made, off-the-shelf solution? It is therefore beyond doubt in my opinion that our EU partners will simply insist that we transfer to the EEA while the article 218 process runs in parallel.

We do not know how long this holding pattern would last, but what we do know is that the EEA, as a halfway house, would be infinitely preferable to the train crash option of a WTO Brexit. A WTO Brexit would mean crippling tariffs, job losses, the decline of our automotive and steel industries, the hobbling of our financial services industry and the probable demise of our entire manufacturing sector. The British people will not stand for that. The Government have a mandate for us to leave the European Union, and this House has an obligation to enable that mandate to be fulfilled, but there is no mandate for this Government to use Brexit as an excuse for wrecking our economy, slashing the minimum wage and sparking a bonfire of workers’ rights, environmental safeguards and hard earned-social protections.

Tomorrow marks the end of the phoney war. Since 23 June, we have had endless debates about process, but once article 50 has been triggered the focus will at long last move to substance. Once article 50 has been invoked the real choice facing this Government, this House and this country will become clear: will we choose an interim deal that truly protects the national interest, or will we tumble head first into a WTO Brexit that will have a catastrophic impact on our economy, our communities and our place in the world?

We know that the currently dominant nationalist wing of the Conservative party will hate the idea of an interim deal, as it will inevitably be based on the EEA model, but surely this country has had its fill of Prime Ministers who place personal ambition and party management ahead of the national interest. I therefore urge this Government to learn from the mistakes of the past and to commit unequivocally to basing their approach to Brexit on securing the safe haven of an interim deal. The alternative would result in the warping of our country into a European version of the Cayman Islands, and that is an alternative that we cannot and will not accept.