Oliver Letwin Portrait Sir Oliver Letwin (West Dorset) (Con)
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It was a pleasure to listen to the speech of the hon. Member for Nottingham East (Mr Leslie). It is like a vintage wine—it improves with age as one hears it on repeated occasions, with mild variations.

Oliver Letwin Portrait Sir Oliver Letwin
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Well actually, oddly enough, I intend, as previously in Committee, to attend to one of the amendments—in fact, two—rather than to the general question of whether it is a good idea to leave the EU. I want in particular to speak about amendment 400—a Government amendment now—and amendment 381, the original Government amendment to which it relates, in a sort of package.

There has been a certain amount of confusion in discussion of the amendments in public—although not, I hope, in the House—so I first want to make it quite clear what they do and can do and what they do not and cannot. The issue has often been reported as if it relates to the question of when we withdraw from the EU, which is very interesting but nothing to do with the amendments. Neither is it anything to do with the Bill, because withdrawal from the EU, as all hon. Members present know, is governed by the article 50 process, not by an Act of Parliament. If we could wave a wand and decide how we do these things through an Act of Parliament, how much easier that would be; but there is an article 50 process that is part of international law, to which we subscribe, and that is what will determine when we leave the EU.

What do the amendments do? They govern when clause 1 will become operative. Clause 1 repeals the European Communities Act 1972 and Government amendment 381 sets a date for that. That leads to a question. If the UK Government and the EU, according to the processes laid out by article 50 and by the remainder of the constitutional arrangements of the EU, come to some kind of agreement at a certain point, it would make sense to have a little more time than is allowed under the first clause of the article 50 process. Under the third clause of the article 50 process, we would have an odd situation, because there would be a slight delay in the timing of our withdrawal, where we would still, under amendment 381, be locked into abolishing the 1972 Act on a certain date, namely by 11 pm on 29 March 2019. There would therefore be an odd conflict of laws that obviously could not be allowed to persist.

Incidentally, there would then be perfectly obvious remedy: under Government amendment 400 there would be a need for emergency primary legislation to change the date. That is, of course, perfectly possible and I have no doubt the House and the other place would agree to such a measure, but it is a laborious process and it might jam up the works at just the moment when it is very important for the Government to have the flexibility to make an agreement of that sort. So, very modestly, all Government amendment 400 does is to provide for the ability of Parliament to adjust the date under those circumstances for the repeal of the European Communities Act to match the article 50 process.

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Helen Goodman Portrait Helen Goodman
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Will the right hon. Gentleman give way?

Oliver Letwin Portrait Sir Oliver Letwin
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I will, but it will be for the last time, because I want to bring my remarks to a close. I do not want to detain the Committee for long.

Helen Goodman Portrait Helen Goodman
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We have heard many times from Conservative Members that the date of 29 March 2019 cannot be moved because we have triggered article 50 and the process has a two-year limit. Will the right hon. Gentleman set out for the Committee what he thinks would happen in practice if the powers under amendment 400 were used by the Government?

Oliver Letwin Portrait Sir Oliver Letwin
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I am surprised by the hon. Lady. I have known her a very long time and I know she is extremely assiduous and very intelligent, so she will have read article 50 and observed that it contains an express provision for agreement between the EU and in this case the UK to delay the date which would otherwise pertain. In fact, there are also rules for what is required on the EU side by way of unanimity to permit that to occur. There is no question, therefore, of the Government ever having asserted that they could not change the article 50 date; they have always said and known that it is possible to change it. The question, as my right hon. and learned Friend the Member for Beaconsfield (Mr Grieve) said a moment ago, is how we make sure that UK law marches in step with whatever happens under the article 50 process.

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Oliver Letwin Portrait Sir Oliver Letwin
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That is right. My right hon. and learned Friend and my hon. Friend the Member for North East Somerset have always actually maintained the same point, which is that we need to keep the two sets of law in sync with one another. That is the overriding purpose of the whole Bill: to ensure that UK law matches what is happening in the international law arena and that we then import the whole of EU law into UK law for the starting point of our future.

Helen Goodman Portrait Helen Goodman
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rose

Oliver Letwin Portrait Sir Oliver Letwin
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I am terribly sorry, but I am not going to take any further interventions. I am going to sit down in a second. I only want to say that I am profoundly grateful, not only to my right hon. and hon. Friends who have joined us in this amendment, but to the Government. This is exactly the way to deal with these things: find a sensible compromise that brings everyone on the Government Benches together and makes the Opposition entirely irrelevant to the discussion.

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Steve Baker Portrait Mr Baker
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I am most grateful to the hon. Gentleman for his comments, but I am only just beginning to conclude my opening remarks—I am only eight minutes in. I will come to the new clause in the name of my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) a little later. I will not rush on this occasion.

I turn to amendments 399 to 405 in the name of my right hon. Friend the Member for West Dorset (Sir Oliver Letwin); I am grateful to him for tabling them. I also pay tribute to my hon. and learned Friend the Member for Torridge and West Devon (Mr Cox), my hon. Friend the Member for Harwich and North Essex (Mr Jenkin) and, if I may say so, my hon. Friend the Member for Basildon and Billericay (Mr Baron), who I understand has worked hard behind the scenes to create consensus for these amendments. These amendments are closely linked to amendments 6, 43, 44 and 45, which were discussed on the first day in Committee, and Government amendments 381 to 383.

The Prime Minister has made it clear that the United Kingdom will cease to be a member of the European Union on 29 March 2019 at the conclusion of the article 50 process. The Government have recognised the uncertainty that many people felt as to whether the exit day appointed by this Bill would correspond to the day that the UK leaves the EU at the end of the article 50 process, and that is why we brought forward our own amendments setting out when exit day will be. The purpose of our amendments is straightforward: we want to be clear when exit day is and, in the process, to provide as much certainty as we can to all. In the course of that, we want to align domestic legislation to the international position, as has been set out.

Amendments 399 to 405 build on and complement the Government amendments setting exit day. We have always said that we would listen to the concerns of the House, as we have done throughout the Bill’s passage. As part of that, the Government have had discussions with my right hon. Friend the Member for West Dorset, and we are grateful that he tabled his amendments. They provide the Government with the technical ability to amend the date, but only if the UK and the EU unanimously decide to change the date at which treaties cease to apply to the UK, as set out in article 50.

Only one exit day can be set for the purposes of the Bill, and any statutory instrument amending exit day will be subject to the affirmative procedure. As I said in an intervention, we will bring forward an amendment on Report to make this requirement clear on the face of the Bill.

Helen Goodman Portrait Helen Goodman
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Could the Minister set out for the whole Committee—not just the Conservative Members sitting behind him—what will happen if the legislation provided for in amendment 7, which we passed last week, is not passed? The Minister, using amendment 381—whether or not it is itself amended by amendment 400—will still have the power to set the exit date and withdraw, irrespective of what has gone on. Is that not right?

Steve Baker Portrait Mr Baker
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The hon. Lady is trying to pre-empt some of my remarks. If she will bear with me, I will come to that.

A crucial point is that the Bill does not determine whether the UK leaves the EU; that is a matter of international law under the article 50 process. However, it is important that we have the same position in UK law that is reflected in European Union treaty law. That is why the Government have signed these amendments, and I was glad to do so.

I can assure the Committee we would use this power only in exceptional circumstances to extend the deadline for the shortest period possible, and that we cannot envisage the date being brought forward. As my right hon. Friend the Prime Minister has said many times, we and the EU are planning on the UK leaving the European Union at 11 pm on 29 March 2019.

Steve Baker Portrait Mr Baker
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I am grateful to my hon. Friend. I would also like to say thank you to him for the role he has played in bridging the spectrum of opinion on this issue.

Helen Goodman Portrait Helen Goodman
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How can it be right to tell the House that the exit date is being set by the House, when the amendments give the power to the Executive to set the exit date?

Steve Baker Portrait Mr Baker
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It is an interesting question that the hon. Lady asks, but how does she think that exit day would be set by the House? If it is not set on the face of the Bill and immovable other than by primary legislation, it must be set in secondary legislation. I would have thought that that was plain to the hon. Lady. We have done the right and pragmatic thing, which is to align UK law with the international treaty position. That enjoys wide support across a spectrum of opinion, and I am glad to support these amendments in the way I have set out.

Let me turn to the issue of the customs union, and I particularly noted what my right hon. Friend the Member for West Dorset said about it. The issue has been widely aired, and I do not intend to be tempted into a broader debate on trade policy. We are confident that we will negotiate a deep and special partnership with the EU, spanning a new economic relationship and a new relationship on security. Businesses and public services should only have to plan for one set of changes in the relationship between the UK and the EU, so we are seeking a time-limited implementation period during which access to one another’s markets should continue on current terms. During this implementation period, EU nationals will continue to be able to come and live and work in the UK, but there will be a registration system. The details of the implementation period are of course a matter for negotiations, and we have been clear that we will bring forward the necessary implementing legislation in due course. However, it would not be right to sign up now to membership of the customs union and the single market pending the outcome of negotiations, as new clause 52 would have us do.

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Helen Goodman Portrait Helen Goodman
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I would like to speak first about new clause 13, because, for my constituency, the customs union is absolutely vital. I have a lot of constituents involved in manufacturing—pharmaceuticals and the automotive industry, for example. On pharmaceuticals, I think Glaxo told the Health Committee yesterday that the cost it has already faced in making plans for how to deal with Brexit is £70 million. We keep asking Ministers for certainty, and there is none.

For farmers, this issue is also absolutely crucial. There is a big risk with the free trade agreements Conservative Members are arguing for that we get floods of cheap lamb imports coming in. That will destroy the uplands. It will destroy not just farming livelihoods but the British countryside.

On the automotive industry, my hon. Friends have spoken about the importance of having shared regulation. How do Conservative Members think the European Union will agree with them to have no tariffs if it thinks that we are going to compete on different regulatory standards? It is not going to agree that. Conservative Members need to get into the real world.

Let us look also at the scope for these new great, fantastic free trade agreements, taking New Zealand as an example. Its economy is the same size as the Greek economy. This is not some great, fabulous opportunity. All that the New Zealanders and the Australians want to do—whatever sentimentality people have about the Commonwealth—is to sell their agricultural produce into the British market.

Conservative Members were enthusiastic about the idea that they could do these deals quickly. In fact, because other parts of the world also have regional trading blocs, that is highly unlikely. Latin American countries, for example, belong to a regional trading block called Mercosur. They are going to be going at the pace of the slowest, not the fastest.

The reason why I think there is a distinction to be drawn between the customs union and the single market is the Irish border. Membership of the customs union is vital for the maintenance of the soft border, in a way that membership of the single market is not. That is because of the nature of free movement. What does free movement mean? It does not mean being able to go somewhere on holiday. It does not mean Schengen—we are not in Schengen now. Free movement means being able to have a job and to take part in the social security system elsewhere.

The way to deal with the free movement problem, which is undoubtedly the immigration problem that has been raised by our constituents on the doorsteps over the last two years, is to change the rules about who can work and who can be eligible for social security in this country; it is to stop giving out national insurance numbers like confetti, as we do at the moment. I am therefore pleased that we have had this separate moment to look at the customs union, and I hope that hon. Members will reflect more carefully on the great significance of the customs union for achieving what we want in Ireland.

I must say that I am not yet reassured by what the Minister said at the Dispatch Box about amendments 381 and 400. When amendment 7 was passed last week, there was a shift in power from the Executive to Parliament. With amendment 381, whether or not it is amended by amendment 400, we are seeing the Executive yank back control to set the exit date. What Ministers have not been able to explain to us this afternoon is what happens if the legislation under amendment 7 is not passed. They can still set the exit date.

I was going to say that Opposition Members see the Tory party as extremely unstable. We are not convinced that this Government, in their current form, will last the course. However, I could not say that nearly as fluently or as lucidly as the right hon. Member for Broxtowe (Anna Soubry) said it. She laid out the problems and the divisions far more fully than I ever could. But even if we do not look into the future, we can all be alarmed by what the Prime Minister said to the Liaison Committee this afternoon. That is why we cannot be confident in what this Government are doing, and that is why amendments 381 and 400 fatally undermine amendment 7.

Huw Merriman Portrait Huw Merriman
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It is a great pleasure to speak in the last half hour of the 64 hours of the Committee stage of the EU (Withdrawal) Bill. I am absolutely delighted to speak in support of amendment 400. I congratulate my hon. Friends on putting it forward. We now have a position akin to article 50, whereby we leave no later than two years from the trigger date. We know when that date will be, but we retain the flexibility should it be required. That shows a great compromise across the House, demonstrating to us and to the public at large that we are capable of finding a way through where we had some discord previously.

I listened intently to the points made by Opposition Members about requiring the Government to honour their commitment on amendment 7. The Government have done so. I therefore ask all those Members that the rest of the Bill that has not been amended be honoured on that basis as well. I very much hope that they have accepted that reciprocal commitment.

I have sat through eight hours in this Committee, and the key thing that strikes me is the lack of optimism and ambition that I have heard. That in no way reflects the country at large, this being the day when it has been announced that, for the very first time, the UK ranks first in the Forbes annual survey of the best countries for doing business. If Forbes had been tuning into this debate, it may well have been wondering if it had got the right country.

The reality is that the world is changing. We must of course look for trade with our European partners. The Prime Minister has set out quite clearly that we want to continue to trade with mainland Europe and to purchase the goods that we have always purchased from it, and we will continue to do so. However, let us take Africa, for example. Germany and Spain have declining populations. Africa has 1.2 billion people at present; by 2050, that will have doubled to 2.4 billion. There are trade opportunities for us to take advantage of. Remaining inside the customs union, as new clause 13 would have it, would not allow us to take advantage of those opportunities.