European Union (Withdrawal) Bill

Hilary Benn Excerpts

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

[Mr Leslie]

Don’t say “Hear, hear” in that way.

New clause 5 addresses a massive topic. It simply says, almost in the words of the Secretary of State for Exiting the European Union, that after we have left the EU, we should have the exact same benefits for the service industries in our country—including financial, legal and professional services—as we have now. The service sector accounts for some 80% of the British economy. During our consideration of the Bill, we have not yet really debated the implications for the service sector. It is often easier to talk about the trade in goods, because goods are tangible—they are physical, and we can imagine them crossing borders, going through ports and so forth—but in many ways we excel in our service sector, so new clause 5 would simply put into the Bill the commitment that Ministers have previously given that they would seek the exact same benefits.

[Hilary Benn (Leeds Central) (Lab)]

rose—

[Mr Leslie]

I do not have much time to go into new clause 5 and I shall try not to take too many interventions, but how can I resist my right hon. Friend?

[Hilary Benn]

Does my hon. Friend agree that on the question of services, never mind goods, this is probably going to be the first negotiation in human history in which a Government have gone into the process knowing that they will come out with a worse deal than the one currently enjoyed? The reason for that is the red lines that the Government have set for themselves. Does not that demonstrate what a profound error this has been, especially when we now know that the decisions on those red lines were taken without any assessment at all of their economic impact?

[Mr Leslie]

Absolutely; I could not have put it better myself. We currently have, in the shape of the single market, one of the finest free trade agreements available to any country anywhere in the world. It is frictionless and tariff-free and, of course, it offers great opportunities for those in the UK service sector to sell their services to 500 million customers. There was nothing about departing from the single market on the referendum ballot paper, so this is a ridiculous red line that the Government should not have put in place. I take this opportunity to gently ask my right hon. and hon. Friends on the Opposition Front Bench please not to acquiesce to the red lines. The fact that the Government have set them does not necessarily mean that they are correct. I want the Labour party to fight for permanent access to and membership of the single market, and I will not stop making that point.

New clause 2 might look a bit lengthy, but it sets out what we should hope to expect to see in the withdrawal agreement that is currently being negotiated by the Prime Minister and the European Commission. I think that a lot of people expected, having passed phase 1, that this was going to be the moment to talk about trade and the sort of deal we were going to get. That is not where we are in the negotiation. We have entered a period of talks about talks—that is simply where we are in this phase 2 arrangement. The article 50 process specifies that, after we have buttoned down a transition arrangement—I shall come to that in a minute—we can perhaps hope to get a framework for our future relationship. That could easily be a single side of A4 with very warm words saying, “Let’s all work together,” and we would then be supposed to depart on our one-way journey without knowing for sure where we were heading.

--- Later in debate ---

[Hilary Benn]

This Bill is necessary but, as my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) so eloquently pointed out, deeply flawed. Despite the changes that have been made, it remains deeply flawed, and their lordships will have a lot of work to do as it passes down the corridor. I welcome the Government’s move to accept the need for primary legislation to implement the withdrawal agreement, but the task now for the House as we watch the Bill depart is to think about the future.

The hon. Member for Gainsborough (Sir Edward Leigh) talked about a vision, but let us tell each other the truth. At the moment, we have no idea what is going to go into the withdrawal agreement, partly because it has not yet been negotiated, but mainly because the Cabinet is yet to decide what it wishes to ask for, and the House should be really rather anxious about the position that we find ourselves in. The referendum result was 19 months ago, but there are only nine months to go until the negotiations are meant to end, and the discussions on our future trading arrangements may not begin until March. The House will be very concerned about that position.

The truth is that the Government cannot reach agreement. The truth is that they are probably the first Government in history to go into negotiations knowing that they will almost certainly end up with a worse deal than we currently have because of the red lines that they have chosen to put in place, and knowing that it will not therefore be possible to honour the promise that has been made to the people of Northern Ireland and indeed of the Republic about an open border. Therefore, if I have one plea, as we see this Bill depart for now, it is that the Government will, very quickly, do their job and set out for this House and for the British people what it is that they are seeking, because when we come to that meaningful vote, believe you me, this House will ensure that it is meaningful when it comes to decisions about our future.