European Union (Withdrawal) Act

Greg Hands Excerpts

Monday 14th January 2019 Commons Chamber

[Barry Gardiner]

I think we should look at what actually happened, and it is relevant to the point that the Secretary of State was trying to make back in December. People are very fond of saying, “There were predictions of disaster and financial meltdown, but nothing happened.” Well, actually, something did happen: I think it was called “£70 billion of quantitative easing”, which the Treasury put into the economy in order to stop the problems.

Of course the Secretary of State once believed that his friends in the Anglosphere would be queuing up to do new trade agreements that would replace any lost GDP growth. The Bank of England has quantified the potential value of those deals at just 0.2%—not 2%, but 0.2%, or one fifth of 1%, or £4.25 billion. Nice to have, but by my reckoning the Secretary of State would still owe me about 533 Brexit buses.

The Prime Minister is fond of saying that her deal is the only one on the table. Well, of course it is; she is the Government, and only the Government are able to negotiate with the EU. That does not mean that there could not be a different deal. The Brexit negotiations have been constrained by the Prime Minister’s red lines. We know that had the red lines been different then the deal would have been different also.

The Father of the House, the right hon. and learned Member for Rushcliffe (Mr Clarke), reminded us in his admonishment of the Home Secretary that

“if we are maintaining an open border where there is a land border, it can only be done in a modern economy by having some form of customs union applying to both sides of the border”.—[Official Report, 5 December 2018; Vol. 650, c. 900.]

That is why we on the Labour Benches have been calling for a new permanent customs union with the EU in which we would have a say over future trade agreements.

When the shadow Chancellor mentioned this previously in our debate the Secretary of State was really rather rude and he reinforced that disparagement today. He reminded the House that under article 3 of the treaty on the functioning of the European Union the EU shall have exclusive competence with regard to the customs union. Of course it does: the treaty binds the member states of the EU and gives the Commission that right to negotiate the terms of any agreement with third-party countries. It does not stop the EU concluding agreements with third-party countries where there is joint control.

[Greg Hands (Chelsea and Fulham) (Con)]

Will the hon. Gentleman give way?

[Barry Gardiner]

No.

Perhaps I can read from article 8 of the TFEU:

“The Union shall develop a special relationship with neighbouring countries, aiming to establish an area of prosperity and good neighbourliness, founded on the values of the Union and characterised by close and peaceful relations based on cooperation.

2. For the purposes of paragraph 1, the Union may conclude specific agreements with the countries concerned. These agreements may contain reciprocal rights and obligations as well as the possibility of undertaking activities jointly.”

--- Later in debate ---

[Mr Speaker]

Order. Just before I call the hon. Member for Scunthorpe (Nic Dakin), I must point out what some Members will have noticed—namely that, most unfortunately, the timer display to my right is not functioning, which is gravely to the disadvantage of Opposition Members. I have been advised, I am afraid, that it cannot be repaired while the House is sitting, so I would encourage Members to—

[Greg Hands]

Come over here.

[Mr Speaker]

No, not to cross the Floor of the House—it was a nice try by the right hon. Gentleman, and I do not blame him for making the attempt, although whether they will be inspired by the prospect of sitting near him is a matter for legitimate speculation and conjecture. I was saying that Members should try to take account of exactly when they started speaking, and they may be assisted by their Whip as well. I know that it is imperfect, and I am glad that the right hon. Gentleman has kept his sense of humour at this time of night, but we will have to keep going to the best of our ability.

--- Later in debate ---

[Greg Hands (Chelsea and Fulham) (Con)]

I am not an ideologue on Brexit; I campaigned hard to remain in 2016, and do not regret having led the “Stronger In” campaign in my constituency. My strong family and other links to the continent mean that I have never been what is called a “Brexiteer”. But like my right hon. Friend the Member for Mid Sussex (Sir Nicholas Soames) and unlike my hon. Friend the Member for Totnes (Dr Wollaston), I strongly believe that the referendum in 2016 was a legitimate exercise, with huge voter participation. It did not get the result that I wanted, but the result needs to be respected. I have spent the last two and a half years believing that, with the right deal, Brexit could work. Indeed, the ability to leave the EU is in the treaties themselves.

My view, however, is that as it currently stands, this agreement is one of the worst possible combinations. I am stating today for the first time that, as the deal currently stands, I will vote against it tomorrow night. Brexit is a set of challenges and opportunities, but this deal fails to address the challenges. It kicks the can down the road on EU trade until at least December 2020. It closes down the opportunities: most prominently, there is not going to be an independent trade policy of any consequence.

Some say that there are merits. The Prime Minister lauds and promotes some of them. For example, the deal ends free movement but for me and my inner London constituents, free movement has never been a particular issue. Some 11,000 nationals of EU countries in Chelsea and Fulham are all very welcome to stay—one is even my wife. The Prime Minister’s achievement in ending free movement is not much of one at all for me and my constituency.

The three principal reasons why I oppose the agreement are, first, that it treats Northern Ireland very differently from the rest of the UK; secondly, there is the backstop itself. Both those reasons have featured quite heavily. My third reason is this: I believe that embedded within the agreement is being in a customs union with the European Union for the long term, not just in the backstop. That is the stated goal in the future partnership. It is a myth that the withdrawal agreement plus the future partnership opens up all possible future trade outcomes. No: the economic partnership will

“build and improve on the single customs territory provided for in the Withdrawal Agreement which obviates the need for checks on rules of origin.”

It “builds and improves on”—that is unacceptable. There is not going to be any independent trade policy in a customs union or in any single customs territory. Indeed, Sabine Weyand, Michel Barnier’s No. 2, briefed EU ambassadors that the future partnership

“requires the customs union as the basis of the future relationship”.

That gives rise to all kinds of problems: trade agreements, the Turkey trap, and the contracting out of trade remedies to Brussels, with the effect that will have on key UK industries such steel and ceramics. The UK will lose its say and contract out that policy to Brussels. Then there are trade preferences. How we treat the developing world is incredibly important. Those will now be a matter for Brussels. That will be a huge loss for UK influence in foreign policy.

I talked earlier today about some of the comments made by some senior EU officials. I will not repeat those now, but it is always worth while for us to study what somebody we are negotiating with is saying. Most, maybe all, of the alternatives are preferable to the agreement as it currently stands. Brussels needs a deal too, and Barnier’s mandate is to achieve a deal. Unless the deal can pass the House of Commons, it is not a deal at all.