European Union (Withdrawal) Bill

Debate between Helen Goodman and Wes Streeting

Committee: 1st sitting: House of Commons
Tuesday 14th November 2017 Commons Chamber

[Helen Goodman]

I am pleased to follow the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith), because his remarks about a new arbitration system relate very much to the points I wish to address.

When I consider the Bill, my overriding concern is the impact on the economic wellbeing of my constituents. Members know that the north-east is a successful exporting region. Part of the reason why we have been so successful is that we have had a stable legal framework over the past 40 years. The Bill’s purpose is obviously to provide continuing legal certainty, but it seems to me that the combination of the Government’s proposal to set the exit date before the transition period is over, and their red line on the ECJ, will have the rather remarkable effect of minimising the flexibility for negotiation and maximising the legal uncertainty.

I very much support amendments 278 and 306, to which my hon. Friend the Member for Sheffield Central (Paul Blomfield) spoke, and new clause 14, tabled by my hon. Friend the Member for Nottingham East (Mr Leslie).

Earlier, I asked the Under-Secretary of State for Exiting the European Union, the hon. Member for Wycombe (Mr Baker): if the 1972 Act is repealed before the end of the transition or implementation period, what will be the legal basis of our relations with the EU in that period and of the 57 free trade agreements that the EU negotiated with third countries? He said, “Don’t worry, it will all be set out in the next Bill, which will come in perhaps a year or 18 months.” I am sorry to say that I do not find that very reassuring. I am conscious that businesses want an element of legal certainty about the transition period as soon as possible. Waiting for another 12 months, or another 18 months, does not give them that legal certainty, which means that they can continue to close plants and divest. We are already beginning to see that. Frequently, it is not being flagged up as being about Brexit, but it is happening rather too often.

[Wes Streeting (Ilford North) (Lab)]

Does my hon. Friend not find it extraordinary that so many Government Members, including those on the Treasury Bench and at the Dispatch Box, have deviated from the position set out so clearly by the Prime Minister in her Florence speech? She said that during the implementation period—transition in everyone else’s terms—the existing structure of EU rules and regulations would be in place to provide the certainty that she has described. That is not what we have been hearing this evening.

[Helen Goodman]

No, my hon. Friend is absolutely right. The problem is this dissonance between the content of the rules and the enforceability of the rules.

I just want to stress this point about the impact on exporters. In the Minister’s description of how the transition period and the future might pan out, there seemed to be no acknowledgement that, in addition to some of these disputes and rights that citizens will be claiming, whether they are under competition law or in the single market, there will also be citizens in this country making claims in the other European countries, or the other 57 third-party countries. In order to export, these countries need to have more certainty about their data protection—we will come on to that another day—about professional recognition, particularly the services, about licensing and about passporting. If those rights are not enforceable, they will be losing that certainty.

At the moment, we have a situation in which half the exports of this country go to the European Union, and 30% go to the other 57 countries in which the EU has negotiated the legal framework. We are talking about 80% of this country’s trade and this Government are not able to tell us what the legally enforceable base will be during the transition period.

The right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) said that it would be very nice if we could have a new arbitration system. Well, I am sorry, but that does not seem to be on offer. At the moment, there are three possibilities. One possibility is continuing with the ECJ, but the Government have set their face against that. Another possibility is to join the European economic area, but the Government have set their face against that. The third possibility is to crash out. The option of the bespoke arbitration system with the European Union will be extremely difficult to negotiate in the 15 months that we have left before the transition period begins.