European Union (Withdrawal Agreement) Bill

John Redwood Excerpts

Committee stage & Committee: 1st sitting: House of Commons & Committee: 1st sitting
Tuesday 7th January 2020 Commons Chamber

[The Secretary of State for Exiting the European Union (Steve Barclay)]

I begin by wishing you, Sir Roger, and all Members of the House a happy new year.

The Bill implements the withdrawal agreement negotiated by the Prime Minister. It fulfils the will of the British people and will set the stage for our bright future outside the European Union. It lets us take back control of our laws, our money, our borders and our trade policy, and it delivers on the overwhelming mandate given to us by the British people to get Brexit done by the end of January.

Sir Roger, as you have just informed the Committee, I am, under your guidance, speaking to this group. I will speak to clauses 1 to 6, clause 33 and new clauses 4 and 36, noting that new clause 19 and amendment 25 have not been selected.

Clause 1 gives legal effect to the implementation period in domestic law. The implementation period ensures that common rules will remain in place until the end of this year, meaning that businesses will be able to trade on the same terms as now until a future relationship has been agreed. This provides certainty and stability for the duration of this time. During the implementation period, the effect of the European Communities Act 1972 will be saved and modified on a temporary basis to provide the necessary continuity. It will have a new purpose: to give effect to EU law as set out in the withdrawal agreement, to provide for the implementation period. As a result, businesses and citizens need prepare for only one set of changes as we move into our future relationship with the EU.

[John Redwood (Wokingham) (Con)]

Can my right hon. Friend give us an estimate of how much the implementation period will cost us, and will he reassure us that once we are out properly at the end of this year, there will be no future payments thereafter?

[Steve Barclay]

This will secure our membership for the period. One of the costs for businesses—one of the greater costs—would result from two sets of changes, without the comfort of an implementation period. The business community itself—of which I know my right hon. Friend is a great champion—said that it wanted an implementation period while the negotiation on the trade deal was being conducted to avoid the higher cost of two sets of changes.

The saving of the ECA will be repealed at the end of the implementation period, at which point the repurposed ECA will cease to have effect. Clause 1 is essential to achieving the terms agreed in the withdrawal agreement and ensuring the proper functioning of European Union law during the implementation period, and for that reason it must stand part of the Bill.

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[Paul Blomfield]

My hon. Friend is right to focus on the issue. The Government have seemed reluctant to embrace the idea of scrutiny and accountability since October in so very many ways. I hope they will think seriously and quite genuinely over the period ahead to ensure that there is a proper opportunity for this House to question and debate the direction of travel.

[John Redwood]

I am glad that we have this opportunity for the Opposition to make their points, but can they not see that trying to take away the proposition that we leave at the end of the year, come what may, completely undermines the British negotiating position? Every time they have tabled an amendment over the past three and a half years, it has always been to do Britain down and leave us in a weak position.

[Paul Blomfield]

The right hon. Gentleman and I have had previous exchanges about comments that he might have made about doing Britain down. The position we have taken is that possibly it is not always the best idea to jump off a cliff—that if we find ourselves in a position where we are, for the sake of weeks or months, unable to secure a deal that is in the interests of the British economy, the sensible thing to do is to give ourselves a little bit of flexibility. He may think otherwise, but that is not our view.

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[John Redwood]

I rise particularly to support clause 33. I think it is essential that we are finally out of the EU in every proper way by the end of this year. Some three and a half years have passed since the British people made their decision that they wished to leave. Many of us voted to leave because we think the world is going to be better once we have left. We do not regard it as some kind of disease or problem that has to be managed; we see it as full of opportunities. We want to rebuild our fishing industry under British regulations and British control. We wish to get all our money back and to spend it on our priorities in health and education. We wish to make sure that we can make the laws we wish, and which the people recommend to us in elections and in the normal dialogue between constituents and Members of Parliament. We are extremely optimistic about our opportunities as a leader of free trade worldwide once we have regained our full vote and voice in the World Trade Organisation and are able to do our own deals with all those parts of the world that the EU has not got round to doing deals with all the time we have been a member.

We are very optimistic. We think we are going to be better off economically. I have always said that, and anyone who suggests otherwise is deliberately misrepresenting my position. I share the frustration of many leave voters that three and a half years on and with a new Parliament with a very clear mandate we are still facing demands that we are going too quickly and that three and a half years plus another year—four and a half years—is still not long enough, and why not six and a half years?

[Daniel Kawczynski]

Does my right hon. Friend agree that, unlike the Opposition spokesman, who seems to paint a very gloomy picture about our moving away from European regulations, this Parliament and this country are perfectly capable of regulating our own domestic affairs, and protecting the environment and workers’ rights in the British way, without always acquiescing to EU laws?

[John Redwood]

I, in particular, think we can do a lot better on taxation. I do not want tax on all these green products that the EU makes us tax. I would not have thought that the Green party really wanted those. However, I suspect that if I or others moved amendments to the forthcoming Budget this March to take out those unnecessary taxes, we would be told we are still not allowed to because we are in the implementation period and have to accept European law. It has also interfered in our corporate taxes in a way that actually reduces the revenues we gain from big business. I would have thought Labour and the Liberal Democrats rather oppose that, but because it comes from the EU, they are completely quiet on the subject. They do not seem to mind that the EU interferes with our revenue raising.

[Michael Tomlinson]

Is my right hon. Friend surprised, as I am, that the official Opposition and the Liberal Democrats, with their new clauses, are seeking yet further delays? Despite what the hon. Member for Sheffield Central (Paul Blomfield) says, that is the effect of new clause 4. It would mean a lack of the certainty that the British people voted for at the recent general election.

[John Redwood]

I do think it is almost unbelievable that the Opposition are talking about adding to four and a half years of delay, under the Government model now, another two years—six and a half years. Six and a half years at £12 billion a year is a huge sum, and I would like to tease this out a bit more with those on our Front Bench because I think my right hon. Friend the Secretary of State misunderstood me. He thought I was talking about the cost to business, but I am talking about the cost to British taxpayers. This extra implementation period in itself—I really rather regret it, but I see it is a necessity from where we currently are, given the forces in this House—must be costing £11 billion or £12 billion, in tax revenue forgone, that we have to pay.

I would like some reassurance from Front Benchers that once we are properly out at the end of December, under clause 33, there will not be further bills. I want us to be able to say to the British people, “We now do control our own money. We are not going to carry on paying for this show.” I think it might be quite a good negotiating tactic to suggest to the EU that perhaps there is not a strong legal basis for some of the claims it wishes to make, because we need to put some countervailing pressure on the EU during this remaining negotiation period on the free trade agreement. I do not think we have to pay for a free trade agreement. I think it is massively in the interests of the rest of the European Union, because it sells us more than we sell it, but we have to be firm, otherwise it will walk all over us again and demand more concessions.

[Sir Desmond Swayne (New Forest West) (Con)]

Is not the lesson of the prolonged, tortuous seven years of negotiation on the Canadian deal the very fact that it was an open-ended process that did not come to an end? The effect of new clause 4 is basically to ensure, in providing for an extension, that it makes that extension certain, because the knowledge that the extension can take place will take away the very pressure to make an agreement within the time that is available.

[John Redwood]

Those of us who have had to study European Union affairs for all too long, because they affect our own country so much, have learned from bitter experience that deals nearly always happen at the last minute under artificial or genuine deadlines that the EU has often imposed on itself. All we are trying to do, in supporting a Government in doing this, is to say to the EU that there is a deadline on this negotiation: “If you, O EU, really want a free trade deal with us, as you have said you do in the partnership agreement, hurry now while stocks last.” It is not all about us; it is about the EU as well. It needs this free trade agreement, and we need to keep the pressure up. Let us tell it that there needs to be significant progress by the middle of this year so that it is realistic to finalise the text.

I do think it should be relatively straightforward, if there is good will on the EU side as well as on our own side, because we have been party to its international negotiations. If we take the best of the Japanese deal and the best of the Canadian deal—it is already there in text—it should be relatively easy to say that we can at least have that. The EU has already offered that to non-members of the European Union, and we should be able to add a bit more because by being a member we already have agreements to things that are in our mutual interest to continue.

I would be very optimistic about the negotiations, but I am quite conscious that if we negotiate as, unfortunately, the previous Government did before the change of leadership and the general election, we will end up making more concessions to get something that the EU has already promised in the political declaration. I do not want the fish at risk, and I do not want the money at risk. I do want to take full control of the money, the fish, the law making and the taxes from the beginning of next year, as we are promised by this Bill, and clause 33 is a very important part of trying to deliver that.

I wish the Government every success. I am optimistic on their behalf because of the promises the EU has made. My message to the EU is: “Do not underestimate the British people. You may have been right to believe that many of their political representatives in the last Parliament were on the EU’s side, not on the UK’s side, but the British people are altogether a more serious proposition, and the British people have spoken loud and clear.” The British people have had enough of the delay, enough of the dither, enough of the concessions and enough of the idea that Brexit is a problem. We believe in Brexit; we want the freedoms; and we want to choose our own taxes, our own laws and to spend our own money. Bring it on—the sooner, the better.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

The Prime Minister and some members of the Conservative party call on everyone to “move on” from Brexit. It is as if he expects those of us who see the disadvantages of leaving the EU simply to put our brain in a box and forget about the impacts on our constituents and communities. He expects us not to speak up for the colleagues, friends and, in my case, loved ones who have come here from the EU, made their home here and improved our society. He expects us not to mourn our loss of EU citizenship and to be silent about the damage to healthcare, manufacturing, the food and drink industry, farming, and even fishing—yes, fishing, that oft-quoted supposed beneficiary of Brexit.

The trouble is that the Prime Minister thinks there is only one fishing industry, and one Scottish fishing industry, and he completely ignores inshore fishing, such as that in my constituency on the west coast of Scotland. Eighty-five per cent. of that catch goes to the EU, but with extra bureaucracy, delays and the threat of tariffs, the industry will struggle to compete with Northern Irish fishermen, who share the same waters but will land their catch directly into the single market. To save their boats, some fishermen have even mooted registering them in Northern Ireland, but that would destroy the viability of our fishing harbours, fish markets and onshore processing. It is certainly not a “sea of opportunity” for coastal communities.

Despite his hollow demand to “let the healing begin”, the Prime Minister has produced a worse deal than his predecessor. Like her, he made no attempt to seek common ground across the Chamber, or across the nations of the UK, and he ignored the Scottish Government’s compromise of enabling both Northern Ireland and Scotland to stay inside the single market and customs union, which would have respected the fact that both nations voted to remain in the EU. Even the supposed triumph of the Northern Ireland protocol is sketched on the back of a fag packet, with almost everything left for the Joint Committee to work out and enact through sweeping and unlimited delegated powers.

The changes made to the October version of the European Union (Withdrawal Agreement) Bill set the tone for what we can expect from this Government in future. The deletion of clause 34 and schedule 4 removes the protection of workers’ rights from this legally binding treaty, while clause 37 abandons the commitment to family reunification for unaccompanied child refugees. Particularly concerning are the Government’s plans for a ridiculously short transition period of only 11 months—despite the former Prime Minister taking two and a half years just to get the withdrawal agreement. The Tory manifesto revealed the Government’s aim of changing the balance between Government, Parliament and the courts, and in this Bill we see that begin. There is little input for the devolved Governments, despite the impact that Brexit will have on their devolved policies. This debate has been limited to just three days in the House of Commons, as opposed to 30 days to debate the treaties of Rome or Maastricht.

We hear much about sovereignty as an argument for Brexit. The rather pointless clause 36 simply restates parliamentary sovereignty, yet clauses 5 and 6 give the withdrawal agreement supremacy over all domestic UK law. This Bill is not “getting Brexit done”; it is the beginning of the beginning. The former Prime Minister tried to have her cake and eat it, while painting herself into a corner with her own red lines. This Prime Minister clearly does not care if he only manages a few crumbs of a basic, bare-bones trade deal, and the loss of 50-plus EU free trade deals with other countries in the world. Such is the obsession with a short transition—there is certainly no more talk of frictionless trade!

The long wish list of aspirations in the political declaration is way beyond a trade deal; it is the future relationship with the EU. The political declaration makes it clear that the more the UK diverges, the less there will be on the table, and the outcome of that will affect the wellbeing of people in all our constituencies. By deleting clause 31, and by removing parliamentary oversight of negotiations on the future relationship, MPs are losing the ability to influence the terms of that relationship on behalf of our constituents and local industries. We are also losing the possibility of scrutinising the Government’s proposals and holding them to account on their progress. This is a blind Brexit. As others have said, we are expected to jump off a cliff at the end of this month, and we are meant just to trust that somehow the Government will knit a parachute on the way down.

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[Sammy Wilson]

Of course that will be the opening negotiating position. He is not going to say, “Yes, and by the way, we do not have to have close alignment.” There will still be a desire on the part of the EU to keep us as close as possible. However, one way of ensuring that we get a deal, and get the kind of deal that we want, is to make it clear that we will not engage in protracted negotiations. We must say, “We will not allow you to use all the tactics that you have used before. You must come to a conclusion. If you want access to our UK market—and you need access to it because you sell more to us than we sell to you—and if you want the future trading relationship and the co-operation that the Government have offered time and again, you must reach a deal quickly.”

[John Redwood]

Has the right hon. Gentleman noticed, in the three and a half years of these endless debates, that the Labour and Liberal Opposition have always tabled proposals that strengthen the EU and undermine the UK? Has he noticed that they only ever put the EU case, and never put the UK case?

[Sammy Wilson]

That was the whole point of extending the implementation period, to allow that tactic to be used, even in this Parliament, with different arithmetic. It is one of the reasons why I think the Government are right to draw a line and say, “We have a year in which to do this. Now let us get on with it, and let us get the deal.” I just hope that during that period, the Government will also be cognisant of the fact that the protocol on Northern Ireland is damaging to the Union, and will seek to ensure in the negotiations that that protocol is weakened and the differences between Northern Ireland and the rest of the UK are changed, so that we leave the EU along with the rest of the United Kingdom and on the same terms.