United Kingdom Internal Market Bill

Debate between John Redwood and Patricia Gibson

Wednesday 16th September 2020 Commons Chamber

[John Redwood]

No, most certainly that is not the point, and that is not my position. I am a democrat, and I have accepted completely the results of the referendums on devolution. It is quite true that I and my party were on the other side in the referendum on devolution. I believed that it would to lead to a big insurgence in unsuccessful Scottish nationalism, which is exactly what it did, and I do not think that that has enriched our public life any. However, I am a democrat and I fully accept the devolution settlement. I am very happy for the devolved authorities and Parliaments to exercise their powers. I also believe that we should co-operate fully with them, and I urge my Friends on the Front Bench to do so. Of course it is as much in our interests as it is in the interests of the Scottish Parliament to define the projects that Scotland most wants and that are most necessary to promote its prosperity.

[Patricia Gibson]

The right hon. Gentleman says he is a democrat. In view of that, does he acknowledge that the Sewel convention says that this Parliament will not normally legislate on areas or matters that are devolved to the Scottish Parliament? We also know that what is not reserved is automatically devolved, so does he think it appropriate to override the Sewel convention and threaten the powers and sovereignty of the Scottish Parliament without the consent of the Scottish Parliament, which is sovereign?

[John Redwood]

I do not accept that it does any of those things. I think we are legislating in a perfectly legal and sensible manner.

I shall go back to the remarks I wish to make as to why it is better that we pay for our own projects rather than doing so with the big discounts on our money through the European Union. The second reason for that is that some of the European schemes required the project to be a marginal one. Part of the terms of giving the money was that it was not a project we would finance for ourselves or not a core, essential project. That did not make a lot of sense. Once that is under United Kingdom control, we will obviously jointly wish to finance the best projects, and of course that will be in full consultation with the devolved Governments around the country.

The third reason that I think we will do better without European Union intrusion is the flagging of these projects. There has been deep resentment in the United Kingdom that whenever a small amount of money came from Europe into a project, it had to show the EU flag but we were not allowed to put a British flag on it to say that all the so-called EU money had actually come from United Kingdom taxpayers. Even worse, we were not even allowed to put a British flag on it to show that a larger proportion of the funding for the scheme had often come directly from the United Kingdom Government. It will be much better when we do not have to false-flag projects in the interest of misleading people about who is actually paying for something.

In this debate on the Bill generally, I know that the Opposition are still very exercised in thinking that these and other powers are illegal because they in some way violate the rules of international law set out in the EU withdrawal agreement. State aid is part of that argument, and these are the two central clauses on state aid. I would like to say that I disagree strongly with my right hon. Friend the Northern Ireland Secretary. I do not think there is any way in which this legislation violates international law. It clearly asserts and upholds United Kingdom law, most notably the sovereignty clause in the European Union (Withdrawal) Act 2018. That Act was a compromise agreement and a halfway house. It was attached to a political agreement to complete a proper negotiation in due course over our future relationship, so it was always rather problematic; because it was like that, it was ambiguous and contradictory. There are perfectly strong clauses in the EU withdrawal agreement and the EU (Withdrawal) Act stating that it is a duty that the single market and customs union of the whole United Kingdom, which expressly includes Northern Ireland, is upheld. That is exactly what this Bill is seeking to do.

The Government and many others hope that there will be a last-minute agreement, because it is quite easy to deal with all the outstanding legal issues in a comprehensive agreement. I am a bit sceptical that that is going to happen, because I see no evidence of good faith in negotiations by the European Union, and I think that, were there to be a breakdown, there would be a second legal argument that there had not been good faith. That is another reason why there is no sense in which we are seeking to break an international agreement, let alone the law.

I am very pleased that the Government are taking crystal clear powers to provide state aid and investment in projects. I hope the Government will also, ere long, issue a very strong statement of the United Kingdom’s state aid policy that should cover this and other matters. We owe it to the international community to have a strong, clear and independent state aid policy that is perfectly compliant with the World Trade Organisation rules on this matter, because we wish to be a global trader with more free trade agreements outside the European Union space. In that respect, we can probably do better than the European Union, because there have been a number of important cases where the European Union has been found to be in violation of state aid rules by the World Trade Organisation, and perhaps an independent Britain can do a bit better.

UK’s Withdrawal from the European Union

Debate between John Redwood and Patricia Gibson

Wednesday 13th March 2019 Commons Chamber

[John Redwood (Wokingham) (Con)]

Some 17.4 million people voted to leave. They were told by both the Government and the remain campaign that that meant leaving the customs union and the single market. They were told that many things would be damaging or wrong if we left. There was a series of very bad short-term forecasts for the first year after the vote, and the public said to the experts, “We don’t believe you”, and they were right about the short-term forecasts: jobs figures went up, not down; growth went up—there was no recession; and house prices performed reasonably well. This was a specific forecast for the year after the vote and before we could conceivably have left.

[Patricia Gibson]

rose—

[John Redwood]

I give way.

[Mr Speaker]

Order. Any interventions from now on are perfectly legitimate, but if Members intervene, they will be preventing others from speaking. I just want them to know that.

[Patricia Gibson]

Will the right hon. Gentleman explain how anyone can trust this Government? We were long told it was the Prime Minister’s deal or no deal, but that is clearly not the case because the House could revoke article 50 if it so chose.

[John Redwood]

I do not agree. I think that that is exactly where we are: either we leave with the withdrawal agreement, or we leave without the withdrawal agreement. That is what the House voted for when it voted to send the article 50 letter, and that is what the House voted for when it enacted the withdrawal Act.

I am not here to recreate the arguments of the referendum. The public are heartily sick of Parliament’s going over and over the same arguments in which we have engaged for three or four years now, in the run-up to the referendum and subsequently. They expect us to be purposeful, serious and sensible, and to sort out the issues and problems arising from the decision to leave the European Union. That is exactly what we should be doing, and I come here in that spirit. I understand that remain voters have real concerns, although I think that some of them are exaggerated. It is up to us, working with the Government, to show that all of them can be managed and that there are many upsides, to which we are looking forward and which leave voters clearly had in their minds.

I want to reassure the House. Calling certain views certain names is not helpful to a grown-up debate. It is not a no-deal exit that we are talking about; it is a many-deals exit. As we have just heard from my hon. Friend the Member for Wycombe (Mr Baker), a series of measures have been enacted recently in the European Parliament. On both sides of the channel, serious work is being done to ensure that lorries can move and planes can fly. Goods will move across borders, and there will be an understanding about what happens in relation to customs and other checks. The drugs will come in, and the food will come in.

I think it is quite wrong to scaremonger and frighten people by pretending that none of that work has taken place—that German pharmaceutical companies will refuse to send their goods any more, or that the workers at Dover will get in the way and block them from coming in. It is not going to happen. We have heard very good news from Calais and Dover about all the work that has been done at both ports to make things work.

So let us come together and be practical, and let us understand that certainly all Conservative and Labour MPs were elected to this 2017 Parliament to get Brexit through. We all stood on national manifestos that said we would do that. The public cannot believe that so many Labour Members in particular are now saying, “We did not really mean it; we do not care about that; we want to stop it; we want to delay it; we want to redefine it in a way that means it is no longer Brexit.”

Brexit means taking control of our own money and then being able to spend it on our priorities, and the sooner we do that, the sooner we will have the boost to our economy which taking that measure would bring about. It means having tariffs that make sense for British industry, and for importers who might like some tariffs to be removed. I am very glad that my right hon. Friend the Secretary of State has slashed tariffs from a load of imported goods that do not involve our competing actively in the United Kingdom. That will be better news for all the consumers who will not have to pay those tariffs any more once we have our own tariff schedule.

I have a big idea for the Government. I entirely understand that very many people in this Parliament want a bigger deal, or more deals, than what is currently on the table. My idea is that, even at this late stage, the Government should offer the European Union a comprehensive free trade agreement based on the best of EU-Canada and EU-Japan, perhaps involving more services, because we already have alignment with services. If the EU would agree just to talk about that—as I suspect it would—we could leave on 29 March without having to impose any new tariffs or non-tariff barriers on each other, and proceed, under GATT 24, to negotiate a free trade agreement. That, I should have thought, would unite a lot of moderate remain voters with most leave voters, and I strongly recommend it to the Government. Parliament must allow us to leave on 29 March, otherwise it will be the people against the Parliament.

Scotland Bill

Debate between John Redwood and Patricia Gibson

Monday 15th June 2015 Commons Chamber

[John Redwood]

That is exactly the problem: Germany is not an independent nation. No member of the eurozone is an independent nation, and that is why those countries are experiencing such trouble. The trouble is not just for Greece, which is very visibly not independent, because it is being told how to conduct its economic policy. Germany is not independent either. Germany did not wish to lend Greece huge sums of money, but the European Central Bank, acting in the name of Germany, has advanced huge sums of money, which it will find very difficult to get back, but which Germany has to stand behind.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

rose—

[John Redwood]

If SNP Members will allow me a little time, I will say things that they will like. I am not trying to make life difficult for them.

This is my analysis. In the referendum the SNP went for something more akin to home rule than what I would regard as full independence, but at that stage the Scottish people said no even to that. They seemed to say yes to the rather larger devolution of powers that the three main Unionist parties were then offering. However, we are now experiencing new circumstances.

Like my hon. Friend the Member for Gainsborough (Sir Edward Leigh), who has tabled a very interesting amendment, I think that this Parliament must listen to the new voice of the Scottish people. It is clear that there has been a shift of opinion towards more home rule than the Unionist parties were offering at the time of the referendum. That is why we are here today, listening very carefully to what the SNP has to say, and that is why I think it extremely important for us to have this debate on full fiscal independence, or fiscal autonomy. It would be one way for our Parliament to respond when the Scottish people have said, “We do not want to be completely independent as a separate country, but we want much more self-government—or home rule—than was envisaged by the Unionist parties at the time of the referendum, because we can see that that was not very popular.”

The Unionist parties collectively did rather badly in Scotland come the general election. [Interruption.] Well, between them, they received just under half the vote, while the Scottish nationalist party received just over half the vote. Because the Unionist vote was split, practically no Unionist Members of Parliament were elected, but it is still the case that Scottish opinion is fairly evenly balanced. The Scottish nationalists did not get 70% or 80% of the vote. If they had done, then, as far as I am concerned, they would really be in a position to tell us the answer, but, as judged by the vote, they speak for only about half the Scottish people. However, as representatives, they speak for practically all the Scottish people because they have most of the Members in this place.

I am listening very carefully and will want to hear more about what SNP Members want, but I am also very conscious that, in parallel with this exercise on powers as set out in this Bill, in some way far more important negotiations are already under way on what the new financial settlement will be, and those are not yet being reported to this House. That is crucial not just to the SNP and its representation of the Scottish people, but to the people of England. I find the more home rule that is on offer and the more we hear the Scottish voice, the more I have to be an advocate not of the Union, but of England, because someone needs to speak for England and to say that the consequences of much enhanced Scottish devolution, and some fiscal devolution as well, are serious for England. England needs to be in the discussion just as Scotland does, as this is our joint country and a major change in its arrangements will have a fundamental impact on England.

While I am very attracted to the idea of my hon. Friend the Member for Gainsborough that it would be a shrewd move to, for once, get ahead of the Scottish appetite for home rule and on this occasion to grant full fiscal devolution, we need to ask how feasible that is and what the consequences will be for Scotland and England. If Scotland wishes to be part of common welfare and pension guarantees, some limitation is already imposed on the spending side of full fiscal devolution. We have to think about the position of England if cross-guarantees are being offered for some part of that welfare package. If we are going to proceed in the way the Government currently plan and the way the negotiations are currently being undertaken—as I understand it, there is an attempt to find a way of adjusting the block grant for Scotland to take into account the new Scottish responsibilities, as some items of spending will have to be added in as a result of the devolution of new functions, and there will be a reduction in the block grant to take account of those taxes that are now Scotland’s to fix and collect—therein lies an immediate problem.

--- Later in debate ---

[Patricia Gibson]

Does the right hon. Gentleman not agree that successive Westminster Governments could learn much from the economic management of the Scottish Parliament, which has balanced its budget, in a fixed budget, every year, while Westminster has run up successive debts?

[John Redwood]

That is because all the time that it is a subsidiary Parliament of the Union, and part of our public expenditure and borrowing plans, it has to abide by the remit. The hon. Lady is right in that it has been given a tougher remit than the Union gives itself, but it is not fair to say that that is of no interest or benefit to Scotland, because of course much of the Union expenditure is also being committed proportionately in Scotland and so it is Scotland’s share of the debt as well. I am making a factual statement; I am not trying to make party political points, wind up the SNP, rerun the referendum or anything like that. I am just trying to get this Committee to understand that grave and big issues are being hammered out elsewhere, we are not hearing about them and they impinge very much on this crucial debate that we are now having.

I have intervened in the debate because I want an opportunity to talk about this financial settlement, which matters to England as well as to Scotland. The proposal put forward by my hon. Friend the Member for Gainsborough brings things centre stage. If we went down his route and had full fiscal autonomy, I would want to know what that meant; how much responsibility Scotland would take, for example, for pensions as well as welfare; and what the borrowing settlement would be. The residual is the borrowing, and unless we know what the answer is on that, we still will not have a happy Union or stable expenditure.