Parliamentary Scrutiny of Leaving the EU

Hilary Benn Excerpts

Wednesday 12th October 2016 Commons Chamber

[Hilary Benn (Leeds Central) (Lab)]

I say gently to the right hon. Member for Wokingham (John Redwood) that, listening to what he just said about the single market, one could easily forget that the late Baroness Thatcher was one of its great advocates.

The debate thus far has demonstrated that some Members find it rather difficult to leave behind the arguments and stances taken during the referendum. We must, as my right hon. Friend the Member for Doncaster North (Edward Miliband) pointed out, respect the decision of the British people. We have to implement it and negotiate an agreement that works for the whole country. In seeking to do that, we have to try to heal the wounds and calm the fears that have been created, in particular on the part of the 48%.

[John Redwood]

The right hon. Gentleman said that the late Baroness Thatcher was a fan of the single market. He should know that, as her adviser, I advised her not to give up the veto in order to create it. She did not accept my advice, and I think she came to regret that.

[Hilary Benn]

I think the House is grateful for that history lesson. I hope the right hon. Gentleman will forgive me if I do not take his advice either on some of the arguments that he has advanced in his speech this afternoon, although I respect the position that he has long held.

I support the calls from all parts of the House for proper scrutiny and accountability, especially given the scale of the task that we face, which was set out very clearly by my hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer). I am talking about the basis on which we will trigger article 50, continued access to European markets for our industries, future arrangements for immigration and maintaining co-operation with our European neighbours in areas where that co-operation has benefited both of us.

There are four things that we need to consider as we undertake that task. One is to minimise uncertainty—a word that we have heard a great deal of in this debate. The second is to be clear about the timing and the content of the negotiation. The third is to protect the things that we value that have come from Europe, and the fourth is to think creatively about how we build a new kind of relationship with Europe as we leave the institutions.

[Paul Farrelly (Newcastle-under-Lyme) (Lab)]

The Secretary of State said that he wanted to minimise uncertainty. He must reflect on that and give himself marks out of 10 on how he thinks he is doing at the moment. Let me take one example: the British Chambers of Commerce in Germany is hosting a conference here in Westminster tomorrow on the impact of Brexit on the City of London and the financial services sector. One issue preoccupying them is that of passporting. It is uncertainty on that issue that is already creating a situation in which bad decisions are being made on employment and investment in this country. Does my right hon. Friend agree that, in these crucial areas, the Government must address uncertainty?

[Hilary Benn]

I am grateful to my hon. Friend for that point. I shall come on to address it in a moment.

I was just going to say that some of the uncertainty is inevitable and will not be resolved until the negotiating process has been concluded, but some of it is the result of different things being said by different members of the Government—one has to acknowledge that—as well as the things that have been left unsaid, which may lead others to draw conclusions and then act on them in the absence of clarity.

The announcement by Nissan that it will not invest any more in this country without guarantees from the Government is indeed unwelcome, but it is entirely understandable. What car manufacturer—my hon. Friend the Member for Birmingham, Erdington (Jack Dromey) talked about Jaguar Land Rover—will invest in additional capacity if there is still some doubt that we might leave with no agreement on trade and tumble out on World Trade Organisation terms, which would lead to those cars facing a tariff? I accept that, in the end, we are likely to get an agreement in which there are no tariffs on manufactured goods, and, frankly, the sooner that that can be made clear, the better. There are those who argue that it would be perfectly possible within the two years provided by article 50 not only to negotiate the mechanics of our withdrawal—and that is quite a task—but to conclude a new trading agreement that will give access to the single market for our goods and our services, which have not been much talked about but my hon. Friend made the point that 80% of our economy depends on services. Those who argue that may be right, but I somehow doubt it.

[Mr Jenkin]

rose—

[Hilary Benn]

I will not take any more interventions, because there are many other colleagues who wish to speak.

If that is the case, we will clearly need a transitional agreement to cover the time after we have left the European Union until the moment when a final agreement on trade and market access has been reached. I listened very carefully to what the Secretary of State had to say about that when I asked him a question on Monday. The Government need to say now, explicitly, that if we have not been able to conclude such an agreement by the end of the two years—there is absolutely no guarantee that all 27 member states will agree to extend the period—we will seek that transitional arrangement, because that would help to boost business confidence.

The second aspect of uncertainty is its impact on people. Unfortunately, in the past couple of weeks, a number of statements have been made about EU nationals and overseas workers here in the UK. I welcome the fact that it now appears that there will not be a requirement on companies to publish lists of overseas workers, but a reference was made to overseas doctors, who make a huge and important contribution to the NHS, being able to stay here for an interim period until such time as we have trained more doctors in Britain, which is a good thing. It was unwise to talk about overseas students as if they are a problem to be cracked down on, and it was a mistake to describe EU citizens who are living here, working here and paying tax here as a card to be used in negotiations. Words matter. They are not a card; they are people; and they listen intently to what is said because they realise Ministers are talking about them, and they take it personally and they feel unwanted. That is very damaging to our reputation as a country that has always welcomed people who want to come here to work, to study and to contribute.

I accept that the 52% of people who voted to leave sent us a message about their wish to control immigration from the EU, although many of the people I spoke to during the referendum campaign who made that argument accepted that there would be a continuing need for workers to come, to bring their skills and to contribute to our society in so many different businesses and sectors. So I encourage Ministers to offer as much reassurance as possible now to those EU citizens about their likely future status, while recognising, because it is in our self-interest to do so, that the way in which we approach that matter will have an impact on the spirit in which the other 27 member states, from which those people come, approach the negotiations that we are about to embark on, and to provide some clarity about how the Government plan to balance the desire to control free movement with continued access—

[Anna Soubry]

Will the right hon. Gentleman give way for just a minute?

[Hilary Benn]

I think that I have run out of my minutes, so I hope that the right hon. Lady will forgive me if I do not.

We need clarity about how the Government propose to handle that trade-off in relation to access to the single market, given that we know from statements that have been made and signals that have been sent that the EU wants to set its face against any change to the four freedoms, and it has also made it pretty clear that it wishes to demonstrate to us and, through our experience, to others that there is a cost to leaving the EU.

[Anna Soubry]

Does the right hon. Gentleman agree that there is a very grave danger when we talk about immigration of extrapolating from the referendum result that there is a desire to reduce immigration? The two great cities that have benefited and have overwhelming immigrant populations—London and Leicester—voted to remain.

[Hilary Benn]

The right hon. Lady is absolutely right and brings me neatly to the point that I was about to make about one of the great industries in our capital city: the impact on the services sector, including financial services, and the City of London, which is a network built on relationships, technology and agreements with the EU and, through it, with other countries. I would describe it as a delicate ecosystem, part of which is built on managing risk. Members should not be terribly surprised if those who manage risk for a living, looking at the risks that they think that they might face from not getting an agreement that would allow them to carry on what they have been doing, draw their own conclusions about where they will put their business, where they will do their business and where they will employ their staff in future.

On the great repeal Bill, mentioned by my right hon. Friend the Member for Doncaster North, I have christened it the great incorporation Bill. Entrenchment, incorporation —are there any more suggestions? I trust that the Bill will make it clear to workers that their employment rights will be protected and to people who care passionately about the environment that the environmental protections that have come from our membership of the EU will be maintained in future.

Now, in all this, there must be transparency. I accept the argument that it would be unreasonable for the Government to reveal their detailed negotiating plan and their tactics before advancing their case in those negotiations, but that is not the same as being unwilling to answer questions about what our negotiating objectives are, and it is not the same as being unwilling to share the assessments that the Government have made about the possible consequences of leaving the EU.

On the first, the questions are very simple. Do the Government intend to remain in the Euratom treaty? Do they wish to continue to be part of the European Medicines Agency—which, by the way, is based in London—Europol and the European arrest warrant? What about the European Aviation Safety Authority, the European Patent Office and the European Banking Authority? Those are very straight questions about the Government’s negotiating objective when they talk to the other 27 member states.

On the second, we all saw the story on the front pages of The Times and The Guardian yesterday about the alleged draft Cabinet Committee paper that talks about the loss of GDP that we can expect and the detrimental impact on tax revenues. It is good that the Government are making assessments; it would be nice if they could be shared with the House, as well as with The Guardian and The Times, because we need to know the consequences of the different options that are being looked at.

My final point is about a new relationship with the European Union in the areas where co-operation has been to our mutual benefit—in particular, security, defence and foreign policy. It is essential—think of the debate that we had on Aleppo and Syria yesterday—that we continue to co-operate closely with our European neighbours, even though we are leaving the institutions of the European Union. This will be a very complex and daunting process, and I do not envy Ministers, because having to do this on top of meeting all the other demands of a ministerial job is not something that any of us would relish, but it is the responsibility of Members in all parts of the Chamber to make sure that we scrutinise and hold the Government to account as they give effect to the decision that the British people have made.

The point has been made that as one of the main reasons advanced by those who said that we should leave was that it would restore the sovereignty of the House, Ministers cannot now argue that exercising sovereignty should not extend to the biggest challenge that the country has faced since the end of the second world war. Ministers need to understand that when we get to the end of the negotiations, this House will and must take a view on the nature of the agreement that the Government have negotiated, because it will affect every single one of us, our children, and all the generations that will come after us.