Legislating for the Withdrawal Agreement

Debate between John Redwood and Jonathan Edwards

Monday 10th September 2018 Commons Chamber

[John Redwood]

In the model that I am describing, we would get much more power back and we would keep it, and that would then be shared with the devolved Administrations, so they too would be winners. That settlement will be sorted out in the usual democratic way in a unitary country that has recently had a very important democratic event. The Scottish people decided by a decent margin in a referendum that they wished to stay in the United Kingdom, so their way of influencing the trade deals will be through this Parliament. Had they chosen to leave the United Kingdom, they would be having their own trade deals—or more likely they would be having the EU’s trade deals, because the Scottish National party does not seem to want an independent Scotland; they want a Scotland that is dependent on the EU, rather than a very important partner in the United Kingdom enterprise.

My other worry about the two prospective treaties that the Government are mulling over is conditionality. The Government have told us that nothing is agreed until everything is agreed, and I fully approve of that. They also seem to understand that, unless they are prepared to say to the European Union, “We will leave without signing the withdrawal agreement,” they have no negotiating position. We now know that the Government are quickly preparing to be able to leave without signing a withdrawal agreement. I think that that would be a very attractive option for many leave voters because the withdrawal agreement itself is mainly about the United Kingdom paying an extremely large bill. The Government are saying, “Yes, but you need to look at the whole package. You need to see what is in the future partnership”—the association agreement treaty to come, because they think that might persuade Parliament and people to accept the rather unpalatable withdrawal proposal. The Government’s problem, as we have just heard from the Opposition, is that there will not be a majority in this House to put through the current kind of withdrawal proposals the Government have without a very clear, bold and good-looking association agreement/future partnership and we might be looking only at rather vague heads of terms. I suggest that the Government need to introduce rather stronger conditionality than they have done so far in their negotiations. They need to make it crystal clear that there is no £39 billion unless something really impressive is available.

I do not know about the Government—I sometimes worry about how they might go shopping—but when I go shopping I do not go into a shop, put £39 down on the counter and say, very politely, “By the way, I have £39 there for you, which I thought you might like. Do you have something that I might like so that I do not leave the shop as a loser?” It seems to me that that is what the Government did. They put down £39 billion—they have rather more money than I have, lucky them; some of it is money that they took from me, actually—on the counter and said, “By the way, EU, we have these dreadful Eurosceptics back home who want value for money, so it would be quite nice if you could offer us something that might be suitable for us.”

When I look at what the EU has in its shop, I am afraid, oh Government, that I do not see anything that I would pay £39 billion for. Yes, I would like a free trade deal, which I think would be a perfectly good answer in the current situation, but I do not remember Canada paying anything for its free trade deal. A Canada deal would be just fine, with a few extra knobs and whistles—we start from complete compliance with the EU, so it will be easy to have a few extra knobs and whistles—but I do not think that is the kind of thing I would pay £39 billion for. Indeed, the tariff saving would be a small fraction of £39 billion, so it would not make a lot of sense financially. The Government, therefore, have a bit of work to do to persuade friendly, reasonable people like me that the two treaties they have in mind represent a good deal for the British people.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

I am listening to the right hon. Gentleman’s point about the divorce payment. Is he making the case that Nigel Farage should be deprived of his pension pot?

[John Redwood]

I am not suggesting that at all. That gentleman’s pension pot is a liability of the European Union. They entered into it, so I think it is something that they need to sort out. I do not think that the European Union should be the kind of body that stops people getting their pensions. I do not remember when we joined the European Union being given a big pot of money to reflect all the liabilities we inherited, so it is a bit difficult to understand why the reverse has to happen when we leave and we have to pay for the others. We simply were not given a whole load of money at the beginning to reflect the fact that we were going to have to pick up some of the pensions of civil servants who had been working in the EU before we arrived.

European Affairs

Debate between John Redwood and Jonathan Edwards

Thursday 15th March 2018 Commons Chamber

[John Redwood (Wokingham) (Con)]

My business interests are declared in the Register of Members’ Financial Interests, but I do not plan to talk about them today.

Before the referendum, I made a speech in the House saying that we had become a puppet Parliament. All too often, regulations came from the EU that we could do nothing about, because they acted directly. In many other cases, even if we had been outvoted or were not happy about a proposition, a directive instructed the House to put through massive and complex legislation whether it wished to or not. We had a situation in which the Front Benchers of the main parties, alternating in government as they tended to do, went along with this. The convention was that the Opposition did not really oppose, because they knew that Parliament was powerless and that the decision had been made elsewhere, whether the British people liked it or not. That even extended to tax matters, such as a number of VAT issues, including areas where we cannot change VAT as we would like, and to corporation tax issues, which included occasions when we thought that we had levied money on companies fairly, but the EU decided otherwise and made us give it back.

Many British people shared my concern, and that was why we all went out together and voted in large numbers to take back control. The British people wanted to trust their British Parliament again. Of course they will find times when they dislike the Government, individual MPs and whole parties, but they can live with that, because they can get rid of us. They know that come the election, if we cease to please, they can throw one group out and put in place a group who will carry out their wishes. They said very clearly to our Parliament in that referendum, “Take back control; do your job.”

A recent example is that of Her Majesty’s Government presenting a very long and complex piece of legislation to completely transform our data protection legislation. Because it was based entirely on new EU proposals, it went through without any formal opposition. The Opposition obeyed the convention and did not vote against it or try very hard to criticise it. I am sure that if the proposal had been invented in Whitehall and promoted actively by UK Ministers, the Opposition would have done their job, found things to disagree with and made proposals for improvement. We will have this “puppet Parliament” effect all the time that we are under control from Brussels.

[Jonathan Edwards]

Given the scenario that the right hon. Gentleman is putting forward, is it not the truth that the Welsh and Scottish Parliaments will also be puppet Parliaments post Brexit?

[John Redwood]

No, that is not true. In their devolved areas, they have genuine power, which they exercise in accordance with their electors’ wishes, but of course this is the sovereign United Kingdom Parliament, and the devolved powers come from the sovereign Parliament, as the hon. Gentleman well understands, which is presumably why he likes being here.

European Union (Approvals) Bill

Debate between John Redwood and Jonathan Edwards

2nd reading: House of Commons
Tuesday 4th July 2017 Commons Chamber

[John Redwood (Wokingham) (Con)]

Will the Minister give way?

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Will the Minister give way?

European Union (Notification of Withdrawal) Bill

Debate between John Redwood and Jonathan Edwards

3rd reading: House of Commons & Committee: 3rd sitting: House of Commons & Report stage: House of Commons
Wednesday 8th February 2017 Commons Chamber

[John Redwood]

It is quite obvious that Germany will export more at the early stages of development in an emerging market economy, because it tends to export capital equipment of the kind that is needed to industrialise, which is what China bought in the last decade. Now that China is a much richer country, she is going to have a massive expansion of services and that is where we have a strong relative advantage, in that if we have the right kind of arrangement with China we will accelerate the growth of our exports, which China will now want, more rapidly. The hon. Gentleman must understand that the EU imposes massive and, I think, dangerous barriers against the emerging market world for their agricultural produce. The kind of deals we can offer to an emerging market country, saying that we will buy their much cheaper food by taking the tariff barriers off their food products in return for much better access to their service and industrial goods markets where we have products that they might like to buy—[Interruption.] I hear my right hon. Friend the Member for Wantage (Mr Vaizey) express a worry about British farmers, and British farmers, would, of course, have a subsidy regime based on environmental factors, in the main, which we would want to continue.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

What impact does the right hon. Gentleman think that that would have on Welsh agriculture and the rural economy in Wales?

[John Redwood]

I just explained that it should boost it. I am sure that more market opportunities will open up for Welsh farmers, but we will also debate in this House how to have a proper support regime. I hope that it will be a support regime that not only rewards environmental objectives but is friendly to promoting the greater efficiencies that can come from more farm mechanisation and enlargement, which will be an important part of our journey to try to eliminate some of the massive deficit we run in food with the rest of the EU, while being more decent to the emerging world—the poor countries of the world to which we deliberately deny access to our markets.

Parliamentary Scrutiny of Leaving the EU

Debate between John Redwood and Jonathan Edwards

Wednesday 12th October 2016 Commons Chamber

[John Redwood (Wokingham) (Con)]

Some colleagues have already said that it must be our duty now to try to knit our nation together, to put the heat and fury of the referendum campaign behind us and to see how together we can build a prosperous and successful future for the United Kingdom as the country leaves the European Union. I think that that will be easier than the tone of this debate so far would give people to believe, because I have great confidence in the British people. I have spent a lot of time talking to remain voters, both before and after the referendum, as well as obviously encouraging the leave voters, whose cause I helped to champion.

The good news is that the remain voters are not, on the whole, passionate advocates of the European ideal and the European project, and that is why we will be able to put this together. According to polling, around 10% of all voters in Britain really believe in the whole European project—a perfectly noble vision of integration, political union, monetary union, a borderless society and so forth—but they are a very small minority in our country. I am afraid that we cannot easily build a bridge to those who want to be part of a united Europe, because it was clearly the view of both sides in the referendum that Britain did not want to be part of the single currency, the political union, a borderless Europe and so forth.

However, this does mean that an awful lot of the remain voters—the overwhelming majority, in fact—voted remain not to join the full project but because they had genuine fears that when we came out of the union, we would leave the single market. They felt that that could be damaging to trade, investment and business prospects. It is on that narrow point that the House of Commons has to concentrate its activities over the next few months, because it is on that central issue that our discussions with our European partners need to concentrate.

I am conscious that the business community has one aim above all others, which is to reduce or eliminate uncertainty. Having been in business myself, I know that business is about managing uncertainties all the time, but it is of course good if we can get the politicians to make their contribution to lowering uncertainty rather than increasing it. It is important that we all work together to try to reduce the uncertainty and shorten the time in which that uncertainty exists.

I am also conscious that we can lower uncertainty in two ways. As we approach the negotiations, we must first show that we are going to go at a lively pace, because the longer they drag on, the more uncertainty will develop, the more obstacles and confusions will arise, and the longer will be the delays that can hurt. So we need pace. The second thing we can do to reduce the uncertainty is to say that we need only to discuss a limited number of things. We can narrow the framework of the negotiation. There are many consultants and advisers out there saying, “We must scope and chart every aspect of all our relationships with other European countries, be they technically single market or EU or wider. We must put them all on the table, then throw them up in the air and discuss which ones should change and how stable they are going to be.” That would be a disastrous way to proceed. It would take too long, and it would offer too many hostages to fortune.

The Government are right to say that in order to have a successful negotiation that lowers the scope for danger and downside, we need to take those discussions at a pace and ensure that we do not say too much in advance about any possible weaknesses in our negotiating position. We should not open up issues for negotiation that do not need to be negotiated, and we should take on board only those issues that are a genuine worry to those on the other negotiating side and that need to be taken seriously because they have some powers over them.

The United Kingdom has voted to take back control. That was what Vote Leave was all about. That was the slogan throughout the campaign, and when asked to define it more, the leave side said that we were voting to take back control of laws, money and borders. So we know what cannot be negotiated away. We also know that the main area of uncertainty is how we are going to trade with the single market when we cannot technically be part of it because it includes freedom of movement and wide-ranging law codes over things that go well beyond the conduct of trade and commerce. It is not a segregated, integrated whole within the European Union; it is a central part of it and part of a very big consolidated treaty.

[Jonathan Edwards]

The Secretary of State said something very interesting earlier when he said that he hoped to negotiate a better economic deal than membership of the single market. As a prominent Brexiteer, can the right hon. Gentleman explain how that will be possible?

[John Redwood]

I do not recall the Secretary of State saying that at all. He was saying that we could have a better relationship than simply relying on World Trade Organisation rules. I have good news, however. If we were to have to fall back on WTO rules, this country would be able to trade perfectly successfully with the rest of the EU and would be free to have much better trade deals with the rest of the world, which we have been impeded from having all the time we have been in the EU. Should there have to be tariffs, there would be many more tariffs collected on European imports into Britain, so we would have a lot of money to spend. We could give that money back to British people, so they would not actually be worse off as a result of the tariffs. Whereas, if we went the other way, the tariffs would be a great embarrassment to our European partners. I am very optimistic about our European partners. I think that they will want tariff-free trade. I do not see Germany or France queueing up to impose tariffs on us, so I hope that we will be able to get through this quite quickly and reassure them that we do not want to put tariffs on their trade either.

Energy Bill [Lords]

Debate between John Redwood and Jonathan Edwards

Monday 14th March 2016 Commons Chamber

[John Redwood]

Yes, but, as my hon. Friend will agree, when the wind does not blow, Germany has to use more coal. When there is no wind energy, the replacement must come from fossil fuel. A wind system with fossil fuel back-up does not even work on its own terms, and he is right that the German merit order is somewhat different.

I was going on to point out that from an economic point of view, we in this country have managed to damage every kind of power generation. If we insist on giving priority to dear, interruptible, intermittent sources such as wind, the more reliable, cheaper sources such as gas become intermittent, as they are switched off every time the wind blows and switched back on every time the wind is not blowing, which in itself is difficult and expensive. That undermines the economics of what would otherwise be good-value power. It means that we cannot run the plants flat out. We have higher operating costs because of the complications of switching on and off and managing the furnaces accordingly, with much less revenue coming in because less power is generated and power cannot continuously be sold to the market.

The ham-fisted interventions—[Interruption.] The hon. Member for Southampton, Test (Dr Whitehead) does not seem to understand the policy that his party put in place and that the European Union supports. The ham-fisted interventions in our energy market mean that we have less reliable energy, because we deliberately subsidise a lot of intermittent and unreliable energy; that we have dearer energy, because, as is commonly accounted, renewables are considerably dearer; and that we have much dearer energy overall, because of the extra cost, which is not included in the way that the cost of renewables is accounted for, which means that non-renewable power becomes a lot dearer per unit as well.

[Jonathan Edwards]

Has the right hon. Gentleman had an opportunity to reflect on the complete U-turn by Energy UK, which now says that the Government need to promote renewables instead of fossil fuels? Indeed, it says that an energy policy based on fossil fuels is a smartphone equivalent of placing all our bets on Nokia as opposed to Apple and Samsung.

[John Redwood]

No, I have not had the chance to reflect on that, but it does not seem to be a very interesting observation given the fundamental truth that I have just given him, on which the hon. Gentleman has not reflected at all. The truth of our current energy policy—