(5 years, 7 months ago)
Commons ChamberI will be short and to the point. Let us go back to first principles. What was the referendum question about? It was about our membership of the EU. This country decided to revoke that membership, and therefore we must implement that decision. By doing so, we effectively become a sovereign, independent nation. Any sovereign, independent nation gets involved in international relations. We do so through our membership of NATO, which has obligations and benefits. We are also a member of the United Nations, which has responsibilities and clear benefits, and interestingly, we also make a financial contribution.
As an independent, sovereign nation, we will clearly want to enter into free trade agreements. Logic would dictate that we should start with the 30 closest countries, which are in Europe. They are our main trading partners, making up 55% of our trade. In any agreement, we would want no tariffs, regulatory alignment and access to a market of 500 million people, including some of the richest in the world. We would like agriculture and fisheries to be excluded. We would want to make sure that there was a fair competition policy, and we would want state aid rules to be fair to all participants. What a wonderful opportunity for our businesses, what benefits for our country.
Clearly, there may—and should—be some obligations. What about payments and contributions? Quite rightly, we would make contributions to the institutions, and we might even make contributions to poorer regions to help them develop, but there would be a significant saving on the amount we pay under the present arrangements. What about free movement? Yes, we would have to accept there might be free movement, but we might in fact want that, because we need employees for our NHS, workers during the summer and the opportunity to tap into that employment base in Europe. Under this agreement, however, we would also have an emergency brake, so if circumstances were such that we wanted to curtail immigration, we would be in a position to do so.
What about changing the rules? Clearly, under any agreement, there would have to be the ability to change rules, and we would have to accept them, but we could be right in at the beginning helping to frame those rules and making sure they were ones we could tolerate. If we were an independent sovereign nation, however, those rules could only be implemented through an Act of Parliament passed by this House—no other body could impose those rules on us.
What if any of this is ultimately unacceptable to us? We could say, “We’re not going to enact those policies because we are a sovereign Parliament and we are not willing to do so”; we could enter into a negotiation with those countries and try to come to some arrangement; or, as an independent country, we could give one year’s notice and leave. This is quite clearly the best possible outcome. We would confirm the revocation of our membership of the EU but also be part of what I consider to be the best free trade arrangement there is.
(5 years, 7 months ago)
Commons ChamberFor many months, we have had broadly the same debate on the same subject, with many of the same speakers saying exactly the same things, and what precisely have we achieved? It really is now time for Parliament to find a way forward so that we and the country can return to the daily issues that really matter to people. Let us be honest: our constituents up and down the country are fed up and frustrated, and arguably, so are many Members of Parliament. We as a Parliament really need to step up and make some positive decisions. I therefore welcome today’s debate. We should probably have done this a couple of years ago and got it out of the way.
My starting point is very simple: this country voted to leave the EU. I therefore firmly believe that we must leave the EU institutions. What was unclear from the referendum, however, was the nature of our future relationship with the EU. As we have discovered, this means many different things to different people, which has to some extent created the difficulties that we are now in. There is no clear direction. In my view, sadly, this has also been down to a serious lack of leadership by the Government—an unwillingness to bring people together and to reach some sort of compromise. We cannot go on as we are. This country requires some clear direction and, hopefully, we may achieve that today. We will find out this evening what this House is willing to accept, and perhaps something will start to emerge. To some extent, Parliament has already indicated that it does not want a no-deal scenario nor a second referendum, and there has also been no sign that the PM’s deal will actually achieve a majority, but I have supported it twice and will do so again. Interestingly, and I say this to some fellow Conservative Members, we would be leaving the EU this Friday had the deal passed, so I do have to question their motives.
What should we do? My mother has always remarked that the general view back in the 1970s was that the UK wanted to be part of an economic bloc, not a political union. When I have similar discussions with my mother nearly 50 years on, her view is still exactly the same, and I suspect that that is the view, attitude or outlook of the vast majority of the people of the UK. It is certainly mine.
I am comfortable with the fact that our country will be leaving the EU’s institutions. However, it is in our economic and political interest to be part of a close economic arrangement. For today’s purposes, that would be EFTA and EEA membership under the common market 2.0 approach, which would take us out of the EU but keep us part of the economic market that is Europe. I would have liked to go into the detail of that approach, but that has been well argued by the hon. Member for Aberavon (Stephen Kinnock) and my hon. Friends the Members for Grantham and Stamford (Nick Boles) and for Thirsk and Malton (Kevin Hollinrake).
We have the opportunity today to indicate to the Government what would command the support of this House. That would apply only if the PM’s deal does not succeed, but I hope that we can find some sort of consensus and a way forward. Leaving the EU is central, and being part of a large economic market is vital, so the obvious solution is an EFTA-EEA arrangement. I will be supporting it later today, and I encourage others to do the same.
(6 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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I completely support and endorse my hon. Friend’s comments.
My hon. Friend the Member for South Cambridgeshire (Heidi Allen) raised my question. In the referendum our country was divided between 52% and 48%. Does my hon. Friend the Member for Eddisbury (Antoinette Sandbach) agree that the EFTA solution potentially unifies those two groups?
I certainly do. It delivers what many people voted for, which was to leave the political institutions of the European Union while continuing our prosperity and building on our common links with the European Union. It would enable us to be in that common market that so many people originally voted for, with all the benefits that it entails for our businesses and constituents.
(6 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
In response to the hon. Member for Ealing Central and Acton (Dr Huq), it is, of course, not my decision who is in the high command, but I understand her sentiments. I absolutely hear her point about financial services. That is why I was very pleased to see the Government taking the initiative and offering unilateral passporting to financial services. Of course, that will work to the greater benefit only if we are able to ensure that the European Union agrees the terms as well, but it was a good start. I wholeheartedly agree with her that the Government’s commitment on EU citizens must be made real and be part of the deal.
The hon. Member for Aberavon (Stephen Kinnock) is absolutely right. In terms of my hon. Friends who are Brexiteers—a few of them are in the Chamber today—I was discussing with one of them last night that the EFTA arrangements are something we can build a consensus around in this country. That is a sensible option, suiting both sides of the argument, and I would welcome any of the pragmatic leavers, including a number who advanced this case during the referendum, joining the cause and arguing for EFTA.
This is a really important debate and I congratulate my hon. Friend on securing it. I completely agree with his point that EFTA is understood by all parties; that is one of its great strengths. Does he agree that its true strength, and the one that could be the basis for our negotiations and unite all parts of the debate, is the fact that it has great flexibility within it?
My hon. Friend is absolutely right that it has great flexibility. That is why I am putting it forward. There is not only one option. I had a chunk in my speech about what one colleague said in response to the question last week from my hon. Friend the Member for Eddisbury (Antoinette Sandbach), which cited the Switzerland option. Of course, that still allows for bilaterals, and some of those are still available, but there is a panoply of options within the EFTA arrangements.
There is some misconception about whether we would be welcomed back into EFTA, and I make the point that it is not only a flexible arrangement but one we would be welcomed back into.
(6 years, 11 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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Will the Minister reassure me that when it comes to negotiations with the EU, the Government will pursue a flexible policy that includes the possibility of establishing a model similar to that of Norway or Switzerland, which would undoubtedly benefit the Irish issue?
No, the Prime Minister has made it clear that we are not going to take any off-the-shelf model. We are a very large country in European terms, and we have very great trade reach—and very great reach in other respects—so we will choose a model that is appropriate to us.
(7 years ago)
Commons ChamberI think that there is unanimity, almost, on the issue of the timing. I would add that the benefit of EFTA is that it is not a customs union but a free trade area, thus enabling us to connect with the vital single EU market but also to strike third-country deals with countries including, potentially, the United States.
Does the hon. Gentleman agree that if the United Kingdom became part of EFTA, that could in many respects turbocharge EFTA and make it a far more appealing organisation in respect of trade deals?
That is an excellent point. I think that the current EFTA members recognise the clout that they would potentially have through the addition of a 60-million-person consumer market to their current market, which is a great deal smaller. As we know, global trade negotiations are all about leverage and clout.
First, I congratulate the hon. Member for Aberavon (Stephen Kinnock) on securing this important and much needed debate. It is important because it is very relevant to our relationship with the EU. We see a lot of discussion going on in the media about the remain and leave debate, and the vote we had. In my view, that is over: the referendum decided that we should leave the EU, and that should now be a given—we have just to get on and accept it.
However, the referendum did not decide our future relationship between the UK and the EU. That is for the Government and Parliament to determine. It is our responsibility to achieve the best possible arrangement for the UK in our relationships with the EU. When we are doing that, we must recognise the views of both the 52% and the 48% from the referendum. It is important that we get the arrangement right and that it balances the different views in the best possible way, acknowledging that that will be difficult and we will have to compromise—that is a very important word.
I accept that there are two clear and different views: the “WTO view” and the “hardly any change at all” view. All of us would agree that in a perfect world there would be a perfect free trade agreement, but we need to have a reality check. At the moment there is a huge amount of uncertainty, which affects Parliament, Government activity, individuals and, most importantly, industry and commerce, where it is leading to decisions about investment not being taken or being postponed. To some extent, damage is already happening and it will continue to happen. For example, in my constituency a tyre factory was going to go ahead prior to the vote, but this has now been postponed and may never happen, so we are seeing the loss of £155 million of investment.
Two key decisions have been made. The first is that we are leaving the EU in March 2019. Secondly, there is a general acceptance that there has to be a transitional arrangement until 2021. I have watched the debate so far, and my conclusions are simple. We are leaving, as that was the decision of the people in the referendum. We all accept that there is a need for a transition, and we must also recognise the huge amount of uncertainty and the need to minimise it as soon as possible. We should look for the most practical, sensible and easy option to deal with that uncertainty—one that is easy to understand and well established. We do not need to invent the wheel once more. That solution is simply that we base our future on rejoining EFTA, thereby retaining membership of the EEA.
The advantages of such an approach have already been set out: we would leave the EU, as set out in the referendum; we would be out of the ECJ; agricultural and fisheries policies would be returned to us; we would have our own trade agreement opportunities; and, most importantly, we are talking about something that is established and understood by all concerned, and is a compromise.
When my hon. Friend’s constituents voted to leave the EU, did they really vote to ensure that our borders remained open for ever more through European immigration? That would be the consequence of his proposal that we stay in the EEA.
I am going on to talk about that very issue. I fully accept that my constituency voted to leave, and I totally respect that. I also understand that many of the reasons revolved around immigration.
By rejoining EFTA, we would eliminate a huge amount of the uncertainty almost immediately and we could very well turbo-charge EFTA in the future; a country of 65 million people would be coming in to support and help improve the prospects of additional agreements with other countries. But we have to acknowledge that there are certain compromises involved in our rejoining EFTA: free movement would continue—although, as the hon. Member for Aberavon has pointed out, there is article 112. We must also remember that we will need some sort of free movement if we are to make sure that we have people coming into this country with the right skills to support our industries.
Does my hon. Friend agree that it is clear that if David Cameron had been able to secure a form of emergency brake, it is more likely than not that the UK would have voted to remain? If EFTA does allow for third-party trade deals plus the introduction of an emergency brake, while ousting the jurisdiction of the ECJ, it should merit the closest consideration.
Hindsight is always a wonderful thing, but I very much sympathise with the point my hon. Friend puts forward.
Continued EFTA membership does mean access to the single market. Some people have commented that we would be a rule-taker. While we are going through the transition, that is likely to be true, but one can make the argument that we are already a rule-taker, because under the EU a lot of the decisions are made via a majority and we are sometimes in a minority and still have to accept those decisions. There would also undoubtedly be a requirement for us to continue to make a payment into the EU.
I accept that at present this approach is not perfect, but it is a compromise that we could have now. It would still allow us time to go for further negotiations to modify things such as immigration, access to the single market and the rules that we have to accept, and to have a debate about the amount of money we contribute to the EU. Today, politics would appear to have drifted to the political wings. The voice of the centre is struggling to be heard. It is as though the centre is no longer seen as appealing or as a place to be. However, I remind this House that life is not black and white; it is shades of grey. Compromise is required and certainty is urgently needed.
By rejoining EFTA, we would, to some extent, end the uncertainty now; business would be able to plan for the future more confidently. Negotiations would be able to continue with all parties, understanding the transition and the nature of the institutions, and in the long run we would hope to achieve a bespoke UK-EU agreement through the auspices of EFTA. I may be a centrist willing to be pragmatic and to compromise, but I firmly believe that such an approach is in the best interests of the people I represent and of the future of the United Kingdom.
(7 years, 2 months ago)
Commons Chamber8. What steps his Department is taking to ensure a flexible approach in the Government’s negotiations on the UK leaving the EU.
Both sides in the negotiation are clear about the fact that we want to achieve the best possible outcome and the strongest possible partnership. We have said repeatedly that, to achieve that end, both sides must demonstrate a dynamic and flexible approach to negotiations. In papers published by the Government, for instance, we have made it clear that we stand ready to protect the voting rights of EU nationals living in the UK. There will be give and take as the negotiations progress, but the destination is clear: a deep and special partnership that sees both parties emerge strong and prosperous, capable of projecting our shared values, leading in the world and demonstrating our resolve to protect the security of our citizens.
Given that a transitional arrangement is likely to be required, and if the Government are to be flexible, a simple solution to consider is an off-the-shelf arrangement with some modifications. Would the Government be willing to consider rejoining the European Free Trade Association and then the European economic area, with suitable and appropriate amendments and modifications?
As my hon. Friend will understand—he heard me say this earlier—we considered that in some detail before the Lancaster House speech. We concluded that it did not meet the requirements for which the British people voted and that it would not be as easy to negotiate as an alternative bespoke transitional arrangement might be.