European Union (Withdrawal) Bill

Debate between John Baron and Antoinette Sandbach

Committee: 7th sitting: House of Commons
Wednesday 13th December 2017 Commons Chamber

[Mr Baron]

The hon. Gentleman is absolutely right. We are trying to negotiate a good deal, but it takes two to tango. The amendment leaves open the door for the other side not to try to negotiate a good deal, knowing that it could drag out the negotiations and therefore prevent, at least until this Parliament were to accept the deal, our leaving the EU. If that was the case—

[Antoinette Sandbach]

Will my hon. Friend give way?

[Mr Baron]

I will in a second if I can just finish my point.

If that was the case, it would be an outrage with regard to the result of the EU referendum, in which over 17 million people voted to leave with the best possible deal. Those 17 million people had no third option on the ballot paper. There was not an option of staying in a semi-permanent state of negotiating limbo while talks progressed over a period of months and maybe years; it was a very clear yes or no. In addition, such a limbo—

[Antoinette Sandbach]

Will my hon. Friend give way?

[Mr Baron]

In a second; I will tell my hon. Friend when I am ready.

Such a limbo would not be business-friendly as it would continue to create uncertainty when business wants certainty on a deal for making investment decisions. I now give way to my hon. Friend.

[Antoinette Sandbach]

I am slightly confused by the point that my hon. Friend is making. I thought that taking back control meant taking back control to this Parliament, but that is clearly not his argument. In fact, he almost seems to distrust parliamentarians, despite the fact that we voted for the referendum and to trigger article 50.

[Mr Baron]

I can help my hon. Friend with her confusion, because the point is very simple. If an amendment suggests that the option is left open for the other side in any negotiation not to negotiate in good faith, so that this Parliament does not sanction the deal because it is not a good deal, that will delay our exit. It is very straightforward. It takes two to tango in a negotiation. I suggest that she reflects on that.

While most of us want a deal, those who criticise the Prime Minister’s position that no deal is better than a bad deal create a series of straw men to support their case. The term “no deal” itself is something of a misnomer, because it creates the idea of some sort of cliff edge. Nothing could be further from the truth. Trade flows regardless of trade deals. The UK would simply revert to using the same WTO rules that govern its trade with countries such as the United States, China, Australia, New Zealand and Brazil—hardly unimportant countries.

As for the trade deals themselves, the next straw man is the suggestion that the UK would find it difficult to negotiate them in sufficient time. If Australia can negotiate trade deals with China, South Korea and Japan within 18 months, there is no reason why the UK cannot do likewise. If anything, a trade deal with the EU will be easy to negotiate because many of the trade barriers have already been removed.

The suggestion that inward investment would suffer without a trade deal is another straw man. That is to ignore the fact that investment is about relative advantage, as anybody who has worked in the City or in industry will understand. Our much lower corporation tax rates, our more flexible labour market practices and policies, the strength of our R and D and science, our language and our time zone more than compensate for having to pay an average WTO tariff of 3% to 5%, particularly given that the currency has already depreciated.

Tonight I will be supporting the Government and rejecting amendment 7. The Prime Minister has been very clear that we will be leaving the EU—that includes the customs union and the single market—in March 2019, and that the European Court of Justice will have no further jurisdiction over British law. I support the stance that no deal is better than a bad deal, and that nothing is agreed until everything is agreed. That includes any proposed financial settlement.

My final point is that there is another reason why I support the Government, and it relates to trust. We are not privy to the ups and downs or the ins and outs of the negotiations, so one has to make a judgment as to whether the individuals concerned are honourable. I believe the Prime Minister to be honourable in what she has said. Having known the Ministers involved for many years, I also trust them to deliver the best possible deal. I suggest that those who support proposals such as amendment 7 should trust the EU a little less and their own Government a little more. Our Government have, after all, made concessions in good faith.