Covid-19: Future UK-EU Relationship Debate

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Department: HM Treasury

Covid-19: Future UK-EU Relationship

Jacob Young Excerpts
Wednesday 15th July 2020

(4 years ago)

Commons Chamber
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Paul Blomfield Portrait Paul Blomfield (Sheffield Central) (Lab)
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Thank you very much, Madam Deputy Speaker. I am just reflecting on “something else”.

I am pleased to be able to respond to the debate and remind the House that when we debated the withdrawal agreement Bill in January, the Opposition warned of the foolishness of the Government tying their hands by committing the date for the end of transition to law. We argued that unforeseen events might result in the Government needing some flexibility, although clearly no one expected a crisis on the scale that we face with covid-19. However, our amendment was rejected and the departure date was locked in law. Clearly, the Government could have changed that before 1 July, but they did not and they must live with the consequences.

We are now past the date when an extension could have been agreed. The Government did not seek one and nor did the EU propose one. That ship has sailed and, frankly, it is the wrong focus for a debate on the negotiations that we need today. The issue is not the time available to the Government, but their approach to the talks. If, instead of the motion, the SNP had tabled something seeking to protect Scottish whisky or Welsh lamb, or to avoid non-tariff barriers in manufacturing, we could have worked together on it, because the country needs the best possible agreement—now more than ever—and we hope the Government will secure that, but it is now five months since we left the European Union. We have had four rounds of formal negotiations. We have had a high-level summit between the Prime Minister and the Presidents of the European Commission, the European Council and the European Parliament. We are into our third week of intensified talks. But judging by the Government’s own statements, we have seen very little progress.

It was not supposed to be like this. Remember the election campaign? Time and again, the nation was told by the Prime Minister that he had an “oven-ready deal”. That is what the people voted for: a deal negotiated by the Prime Minister himself and signed off last October —the withdrawal agreement and the political declaration. The withdrawal agreement delivered our departure from the European Union and the political declaration set out the principles for our future relationship. The two went together: a single package. As the Prime Minister said:

“The ambition for our future friendship is contained in the revised political declaration”.—[Official Report, 19 October 2019; Vol. 666, c. 572.]

That was the deal promised to the British people. I quote from it:

“an ambitious, wide-ranging and balanced economic partnership”

with

“no tariffs, fees, charges or quantitative restrictions across all sectors”.

It was a deal that would safeguard

“workers’ rights, consumer and environmental protection”

and keep people safe with a

“broad, comprehensive and balanced security partnership”.

There was a promise that the Good Friday agreement would be protected through the proper implementation of the Northern Ireland protocol.

Those are the promises against which the Government’s deal will be measured, but it is not going well. The Chancellor of the Duchy of Lancaster chilled British business when he warned that the UK may accept tariffs on some goods if that is the price we have to pay to avoid the level playing field provisions. And let us not forget what exactly the level playing field is about: food standards, workers’ rights, environmental protection and consumer protection.

The Government’s proposals in this area have been described as “a giant step away” from the political declaration. The UK’s chief negotiator, David Frost, has said there is “fundamental disagreement” in most of the important areas. He went on to say:

“there is a big gap”.

The former Prime Minister, the right hon. Member for Maidenhead (Mrs May), warned her successor that he will not be able to keep our people safe without access to the quantity and quality of data that is currently available through Prüm, passenger name records, the European Criminal Records Information System and SIS II, but her successor will not commit to that. Just yesterday, the Met police Brexit lead said that UK police forces’ ability to detain criminal suspects from the EU will become slower and less effective if the Government fail to secure a Brexit security deal. At the same time, Northern Ireland businesses are saying:

“we are really in a quandary as to what way to turn…We need a bit of clarity because we haven’t a clue where we’re heading—It’s like walking out into the fog.”

The Government have not even managed to negotiate the continuation of the pet passport.

The weeks ahead are crucial. The Government need to double their efforts to deliver the deal that they promised to the British people. They need to listen to business, whose voice, the CBI, said recently:

“A good deal with the EU will be just one strand of a national recovery plan as the UK responds to the coronavirus pandemic, but it will be one of the most important for the future of our economy, jobs and livelihoods.”

They need to listen to those reeling from the Government’s announcement on the border arrangements, which left the chief executive of the Road Haulage Association saying that he was

“completely at a loss to understand how this framework can be achieved by 1 January 2021.”

They should listen to the TUC, which has called on the Government to

“prioritise negotiating a deal with the EU that guarantees good jobs, rights and other protections rather than a deal with the US that stands to undermine these standards.”

Jacob Young Portrait Jacob Young (Redcar) (Con)
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We have already heard how important this decision is, so will the hon. Gentleman elaborate on where the Labour party is? Why are the Labour Benches empty? Where are his Back Benchers? Why are they silent on this important issue?

Paul Blomfield Portrait Paul Blomfield
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I have elaborated our position clearly: we expect the Government to deliver on the deal that they promised the British people. I understand the anxiety among those on the Conservative Benches when they see how the talks are going and see that they—those who were elected on that pledge—may not be able to turn to their constituents and say that they have done that job.

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Brendan O'Hara Portrait Brendan O’Hara
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I will give way in a moment, but first I will thank my right hon. Friend for the thoughtful way in which he opened the debate. He laid out clearly why we believe that it is the best interests of everyone across these islands that the UK Government, even at this late stage, seek an extension to the transition period. He is absolutely correct that at a time of economic crisis, in the middle of a global pandemic for which there is currently no vaccine and when no one knows where or when the next wave will come or how severe it will be, it is beyond madness for this Government to believe that it will be possible to conduct and conclude all the necessary negotiations and implement the results within the next five months. The reality is that the Government know it—they know that cannot happen.

Without an extension to the transition period, the UK will almost certainly crash out of the European Union at the end of the year, with all the economic chaos that will inevitably follow, and those who in 2016 were regarded as the not to be taken seriously, wide-eyed extremists on the fringes of the Conservative party will have won. They will have achieved their goal.

My right hon. Friend was also absolutely right when he reminded the House that this is being done to Scotland by a Government we did not elect who are pursuing a policy that we overwhelmingly rejected. In the 2016 EU referendum, the people of Scotland said unequivocally that we wished to remain part of the European Union. That message has been reinforced time and again since 2016, in both general elections and in last year’s European elections.

Jacob Young Portrait Jacob Young
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Does the hon. Gentleman concede that in the 2014 independence referendum, the people of Scotland voted overwhelmingly to stay in the UK?

Brendan O'Hara Portrait Brendan O’Hara
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I respectfully say to the hon. Gentleman that democracy is a constantly evolving process—it is not a one-off event. I know that this will be a problem for many Government Members, but people have the right to change their minds. Politicians have the right to bring back ideas for themselves and for the public to decide upon. In fact, the Tories’ deputy leader in Holyrood has been beaten more times than my granny’s old carpet, but he comes back time and again, as is perfectly his right so to do. It ill behoves the hon. Member for Redcar (Jacob Young) to stand there like some kind of imperial overlord telling Scotland that it can only go so far and no further. This Tory Government will not decide Scotland’s future. The people of Scotland will decide Scotland’s future.

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Douglas Ross Portrait Douglas Ross
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It is not. I was very clear, but I will try to be clearer for SNP Members if they need me to be. Can any SNP Member explain just one—not 10 or hundreds—power that the 129 MSPs and the Scottish Government currently have that during this “power grab” the UK Government will somehow take away? [Interruption.] None can; SNP Members simply cannot do it, because there is no power grab. As I said in my intervention, this and successive Conservative UK Governments have given more powers to the Scottish Parliament than any other and it is now one of the most powerful devolved Administrations anywhere in the world. The problem, more often than not, is not the lack of powers in the Scottish Parliament, but the lack of desire, will and vision on the part of the Scottish Government to use those powers to the best of their abilities. That is really the crux of the argument.

I am sorry that the right hon. Member for Ross, Skye and Lochaber missed my opening remarks, but I want to come back to his motion, on which the House will divide later. It is about the transition period, the EU and the UK Government. It seems strange to have this debate after the deadline set by the EU and the UK to decide whether to have an extension to the transition period. A decision was taken by the UK Government not to seek an extension and the EU Commissioner said of that decision:

“I take this as a definite conclusion of this discussion”.

The EU Commissioner who responded to the UK Government’s decision has decided that that is a definitive conclusion of this matter and I wish the SNP would accept it as such.

Jacob Young Portrait Jacob Young
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Will my hon. Friend join me in congratulating Liberal Democrat, Plaid Cymru and the Democratic Unionist party Members on outnumbering the Labour party Members on the Opposition Benches, with not one Labour Back Bencher to speak in this important debate?

Douglas Ross Portrait Douglas Ross
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I am always happy to agree with my hon. Friend. Let me add that Scottish Conservatives in the Chamber today would outnumber, if he were here, the one Scottish Labour Member by five or six to one. We continue to be a strong force in Scotland and in this Chamber.

Let me return to the title of this debate and what we are discussing generally this afternoon, because there have been a number of omissions in the SNP speeches we have heard so far—I am sure this will be rectified later. We have not heard the F-word at all during this debate. I represent Moray and the Minister on the Front Bench represents Banff and Buchan. In a debate about the EU, I expect to hear about fishing, particularly from the SNP. So why, would we surmise, would SNP Members and their leader here, who represents a constituency that has many fishing interests, not mention fishing once during this debate? Is it perhaps that they are ashamed of their policy towards Scottish fishermen?

During this debate, we are speaking about an extension, but what the SNP have not spoken about is what they would do at the end of that extension, because of course they just want to prolong this period of instability for our businesses, communities and individuals. At the end of it, they do not want another extension or a deal with the EU to be granted by the UK Government; they want to stop us leaving the EU. That is a perfectly acceptable policy for them to hold, but they therefore have to explain to fishing communities in Moray, in Banff and Buchan, and around Scotland, including those that they currently represent here and at Holyrood, what their plans are for the fishing industry in Scotland. It is very clear: they would say to the 1 million people in Scotland who voted to leave the European Union, many of them in fishing communities: “We don’t need you, we don’t trust you, we think you were wrong, and we’re going to take you straight back into the European Union and straight back into the common fisheries policy, which you have campaigned against throughout your lives and has been damaging to your business, because we don’t trust the result you gave in 2016.” That is a shameful position for Scottish National party Members to hold. Maybe it is not surprising, then, that they have not once mentioned the word “fishing” in this debate.

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Liz Saville Roberts Portrait Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
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I am grateful to my right hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford) for securing this debate, and it is a pleasure to follow the hon. Member for Dewsbury (Mark Eastwood). I noted his use of the term “take back control”, which I might use as well, but possibly running in a different direction. I would also like to inform the House that our Senedd in Wales is today holding the first ever debate on annibyniaeth—independence. In the light of the fact that we are also holding this debate here, and of the tenor in which it is being conducted, it is fair to say that the scaffolding of the UK is being strained to breaking by the unprecedented circumstances in which we find ourselves.

One of the dominant themes of our public debate since the 2016 EU referendum has been that power should lie closer to the people. The campaign was largely won on the emotional appeal of autonomy and control. “Vote leave and take back control” was the mantra that was repeated ad nauseam in debates inside this House and elsewhere. There was, and there remains, a clear emotional appeal to that message, and while I regretted Wales’s decision to vote to leave, back in 2016, I recognise that that vote reflected a genuine and justified dissatisfaction with our distance from where decisions are taken in our politics. Therefore, 2016 should have been a turning point and the beginning of a new process of truly bringing power closer to the people. We should have seen more devolution, not only to our national Parliaments but to local authority level. That vote should have started a process of bringing disengaged voters back into the democratic process, and of giving people real control over the decisions affecting their real lives.

The UK Government themselves acknowledged the need for that. The Brexit White Paper released in March 2017 proclaimed:

“As the powers to make these rules are repatriated to the UK from the EU, we have an opportunity to determine the level best placed to make new laws and policies on these issues, ensuring power sits closer to the people of the UK than ever before.”

Instead, what we have had is a centralisation of power—centralisation to these corridors here in Whitehall, standing in the way of powers that should have been in transit from Europe to our national Parliaments rather than empowering Whitehall further. If this were a true Union of equals, these former EU powers would have gone equally, naturally, to all our Parliaments. The process started with the EU withdrawal Act, which ensures that the only Parliament that will take back control is the one most removed from the lives of the ordinary people who many of us in the Opposition represent.

The UK internal market Bill threatens our powers further, by allowing Westminster to dictate trade, environmental, food and animal welfare standards and provisions and by giving Westminster control over state aid—a clear breach of devolution in spirit and actuality.

Westminster once again undermines our nations when it comes to an extension of the transition. The Welsh Government, as well as the Scottish Government, last month called for the transition period to be extended. They were ignored.

Jacob Young Portrait Jacob Young
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The right hon. Lady mentioned the Welsh Government. Labour is in power in Wales, of course, yet Labour have not bothered to turn up to this debate. I congratulate the right hon. Lady and my hon. Friend the Member for Brecon and Radnorshire (Fay Jones) on representing Wales on both sides of the House when Labour do not care.

Liz Saville Roberts Portrait Liz Saville Roberts
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In these extraordinary circumstances, I will agree with the hon. Gentleman. I am deeply disappointed that where Labour are in power and when they have made a clear statement to an effect that is relevant to the title of this debate, they do not have people here to push that argument.

I turn back to the UK internal market Bill and beyond. The Westminster Government, in this matter and others, not only disregarded the approaches from the Scottish and Welsh Governments, but did not consult them when they gave official notice to extend the transition.

Now, of course, the coronavirus has affected every nation badly, Wales among them. A recent Office for National Statistics survey found that 46% of Welsh businesses have six months or less of cash reserves—the highest percentage among the UK nations. In just five months’ time, businesses that export to the EU will be subject to customs declarations regardless of whether or not a deal is struck, adding increased costs and immense red tape to businesses that are already struggling.

In 2018, HMRC estimated that each customs declaration form would cost an average of £32.50 to complete. The Government expect that about 400 million additional customs declarations a year will have to be made from next year. The 46% of Welsh businesses that do not have the cash reserves to see them beyond this year will simply be unable to afford the added costs, and we fear that Welsh exports will be deeply affected, even to the point of collapse.

Thousands of job losses have already been announced in Wales: in aerospace, manufacturing, media, and—most recently, today, with the announcement that 80 full-time jobs and 70 casual workers’ jobs are at risk—at the Urdd. The Urdd is a 90-year-old organisation that runs the largest youth festival in Europe. It is critical to Welsh cultural survival, and we have heard today that there is that threat to 150 jobs out of 320. That is deeply concerning.

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Owen Thompson Portrait Owen Thompson (Midlothian) (SNP)
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Mr Deputy Speaker, you would think it would be a no-brainer for the Government to extend the timetable for our Brexit transition. Given the global crisis that has engulfed all of our lives, to do anything else would be ludicrous—it would be like someone driving 30 miles to test their eyesight.

Trade agreements are long and complex processes, and the transition period was already tight before the covid crisis put a spanner in the works. Now any decent deal is looking beyond reach and there is not enough parliamentary time to properly scrutinise whatever might be agreed. Yet we have a Government who do not care about doing decent deals in the full light of day and have set their face against the scrutiny of their actions. Nailing the detail on even far easier questions is not a strength of this Administration. On the covid-19 strategy, for example, you would have thought that they would have had an angle on what they actually wanted to achieve by now. Yet when I asked the Government whether elimination was part of their plan, I received a holding reply on 6 July, telling me that the Government could not answer the question within the normal timeframe. How can we trust them with the timeframe for Brexit when they still do not even know what they expect to achieve from this situation?

This is not a principled Government, but a reckless one. We know that they were reckless with public health advice: Dominic Cummings’ hazy drive to Durham during lockdown is testimony to that. Public anger over the hypocrisy was brushed off and we were told to move on. It was another case of, “Do as we say, not as we do”.

The signs do not look good for post-Brexit decision either. Refusal to negotiate sensibly with our European partners has locked the UK out of the successful Galileo satellite programme. The Government have recently gambled £500 million in a share of a bankrupt satellite company, OneWeb, hoping that they can tack navigation capabilities on to the wrong type of satellites. I say £500 million, because that is what has been reported in the media, but when I asked the question formally, I was told that the figure could not be disclosed as it was commercially sensitive. There is no public scrutiny, no business plan and no risk assessment published for this decision, which, by all accounts, goes against the better judgment of experts such as those in the UK Space Agency. With activities such as these, is it any wonder that many people question whether this Government can even tell their arse from their elbow?

In 1995, George Robertson, the then shadow Secretary of State for Scotland, famously said:

“Devolution will kill Scottish nationalism stone dead.”

Here we are 25 years later, and the Scottish independence cause is very much alive and stronger than ever. Meanwhile, the uncompromising actions of British Brexiteers look like the actual move that will kill the Union stone dead. Devolution, albeit in its limited present form, has allowed the people of Scotland, Wales and Northern Ireland to develop their own solutions, rather than toeing the line from the Tories. It has let people across these isles know that their voices matter and that we can aspire to more, instead of just simply taking what we are given.

With Scotland’s modern, transparent Parliament in Holyrood, people have elected a Government who better reflect their views, respect evidence, listen to experts and care about the poor, but this current Tory Administration cannot allow such a thing. They seek to put us back in our box. They will dismantle the democratic structures, which were so hard won by the people of Scotland. Lord Robertson may not have had the most honourable intentions in backing a Scottish Parliament, but there were many in the Labour party who recognised and cherished its role. We, in the SNP, were together with Labour at that time, and we must stand together again now as the institutions are disgracefully disrespected by the actions of this Government.

As recently as 2015, Gordon Brown was promising greater devolution and home rule. It is unfortunate, therefore, that the party of home rule has apparently forgotten its roots, and that is certainly shown by the fact that there are so few of them here today, which is a pity.

Owen Thompson Portrait Owen Thompson
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Well, few.

This is a Government who have torn up the respect agenda, which was at least given lip service by their predecessors. The growing culture of disrespect has been brought into sharp focus with Brexit. Scotland voted to stay in the European Union by a strong majority in every constituent part. The hostility displayed towards Europe by Brexiteers—there was a thinly veiled xenophobia from some—was as abhorrent to those on these Benches as it was to the people whom we represent.

After the Brexit vote, the Scottish Government tried to find the least damaging compromise, yet it was rejected. On devolved competences, this Government have seen no need to negotiate and reach agreement with the Scottish Parliament and they just press ahead regardless. Their actions have not gone unnoticed. Now is the time for Scotland to rejoin our European cousins as an equal independent nation.

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Jacob Young Portrait Jacob Young (Redcar) (Con)
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It is a pleasure to follow the hon. Member for Aberdeen South (Stephen Flynn). He speaks passionately for Aberdeen, and I commend him for that. I am grateful to the Scottish National party for tabling this motion to extend the transition period, as it allows me to remind my constituents why they voted for me last year. On 31 January, the UK left the EU nearly three years after article 50 was triggered, and the people of Redcar and Cleveland celebrated with a great party at the Citz Club in Redcar. They celebrated this passage into the new Europe with a deep sense of relief because, time and again during those three years, their choice had been questioned, their will ignored and their views belittled. They were told that they did not know what they were voting for, that the people should not have had a say, or that a decision that big should not have been left to the public. So they were asked again, and in December last year, the public backed the Conservatives and gave them their biggest majority since 1987 on a promise that we would deliver on the mandate from the 2016 referendum.

Until now, Redcar has never had a Tory MP, and neither have West Bromwich West, Heywood and Middleton, Dudley North and Rother Valley. I and many of my colleagues on the Government Benches are here because people trusted us to make their voice heard. They put their faith in the Prime Minister and a Conservative Government for the first time ever in our constituencies, because they felt let down by a Labour party that had ignored them for so long. I draw the attention of the House to the empty Labour Benches. Tonight, the Labour party looks set to ignore them once again. Here we are, nearly six months since we left, debating yet another motion aimed at extending the transition period, put forward again by those who refuse to accept the result simply because they did not want it.

It is no surprise to anyone on the Government Benches, or to the public at large, that those who still reject the result of the EU referendum are the very same ones who still refuse to acknowledge that the people of Scotland rejected independence in the 2014 referendum. It seems that the Scottish separatists simply cannot accept the result of any referendum. Well, we on the Conservative Benches trust the people of the United Kingdom, wherever they may be, to make the right choices for them. They put their trust in us to deliver on those choices.

As we count down the days towards the end of the transition period, all the motion would do is add yet more delay and betray that unprecedented trust. What we still do not know, however, is how Sir Keir will vote tonight. We know that he was the architect of Labour’s failed Brexit policy, a rigged second referendum between staying in the EU or staying in the EU without calling it that, but what is his position now? Will he jump on this delaying Brexit bandwagon, or will he respect the result of the referendum? Will he return to blocking, delaying, preventing and doing all he can to stop Brexit, or will he show true leadership and listen to the voice of the people who used to vote for his party?

There is no doubt that the Scottish independence party, the illiberal un-democrats and whatever is left of the Labour party are still hoping for Brexit to be reversed. They are still hoping that it will never properly happen. They do not trust the people of this country, just like the SNP still refuse to trust the people in Scotland in the 2014 referendum. The Opposition parties tonight are revealing their true colours and we must do everything in our power to stand strong while they turn their backs.

I am under no illusion that the principal reason I was elected in December was to get Brexit done for the people of Redcar and Cleveland, which is why I was so proud, as one of my first votes in Parliament, to vote Brexit through. It is why I will proudly walk through the Lobby tonight against any extension to the transition period. We want to reach an agreement with the EU by the end of December, based on a Canada-style free trade agreement. We can achieve that in the time ahead. We are not asking for anything that the EU has not already given to other countries, but if they do not want to extend that to us, we must do what is best for Britain and leave without.

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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Just a gentle reminder—I did not want to interrupt the full flow—but please do not refer to current sitting Members by their names. Thank you very much.

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Rosie Winterton Portrait Madam Deputy Speaker (Dame Rosie Winterton)
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I thank the right hon. Gentleman for his point of order, and for giving me notice of it. I certainly got the impression that he made his feelings known about this during the course of the debate. I think the House is not unaware of that. With regard to a Minister coming to the House this evening, I have no notice of that, but I believe there is certainly going to be a statement tomorrow on this issue, and I am sure at that point he will have the opportunity to reiterate his views. In the meantime, those on the Treasury Bench have heard what he had to say, and will have noted it and will, I am sure, report back.

Jacob Young Portrait Jacob Young
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On a point of order, Madam Deputy Speaker. I believe it was the right hon. Member for Walsall South (Valerie Vaz) who previously claimed it was “jaw-dropping” that the Government had not voted on an Opposition day motion, and she described abstaining as cynical. Given that the Labour party has chosen not even to show up to today’s Opposition day debate, can I seek your advice on how the House can know the right hon. Lady’s thoughts on the Labour party hiding from tonight’s vote?

Rosie Winterton Portrait Madam Deputy Speaker
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First, I hope that the hon. Gentleman will have given notice that he is referring to another Member before raising a point of order. Has he done that?

Jacob Young Portrait Jacob Young
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No, I have not.