European Union (Withdrawal) Bill

Jonathan Edwards Excerpts

Committee: 2nd sitting: House of Commons
Wednesday 15th November 2017 Commons Chamber

[Mr Jim Cunningham (Coventry South) (Lab)]

rose—

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

rose—

[Heidi Alexander (Lewisham East) (Lab)]

rose—

--- Later in debate ---

[Mr Jones]

That may well be so, but I invite the hon. Lady to digest the terms of article 126 of the EEA agreement and then consider whether at the moment of our departure from the EU we will still be subject to the EEA agreement. I believe we will not.

For the reasons I have outlined, I invite the hon. Member for Carmarthen East and Dinefwr not to press amendment 217, too.

[Jonathan Edwards]

It is a pleasure to follow the right hon. Member for Clwyd West (Mr Jones). In the normal course of events he would be responding to our amendments, but I must say that much of what he said today went completely over my head; I will have to read it tomorrow in Hansard and try to dissect it. Perhaps we can debate it on another occasion.

I rise to speak to amendments 217 and 87, tabled in my name and those of my hon. Friends. They are probing amendments, so I do not aim to detain the House for a protracted time. Along with amendment 64, amendment 217 would exclude the EEA agreement from the Bill, allowing the UK to keep open the option of remaining in the EEA as the negotiations proceed. Currently, the Bill seeks to repeal the domestic effects of the EEA agreement, but the British Government have given no explicit notice to withdraw under article 127 of the EEA agreement. Our departure from the single market is therefore not inevitable, and there is still time to change to a path that puts the economy first, as many hon. Members have said.

Our continued membership of the single market and the customs union is absolutely crucial to the viability of the Welsh economy beyond Brexit. In wanting to leave the single market and the customs union, the Government are contradicting themselves. The European red tape that the Brexiteers belittle as a regulatory burden also safeguards the environment, keeps our food safe and our rights upheld. By taking the UK outside of the EEA and the customs union, the Government would be generating a gratuitous amount of red tape for our key exporters. Employers in my constituency would face unnecessary logistical and financial barriers to sell to their European markets, which are by far the most important for our exporters.

We have been told again and again that a hard Brexit will reinstate the UK as global power. Despite sounding appetising, that is wholly illogical. It is counter-intuitive to say that removing the UK from the most successful and richest economic bloc will in any way make the UK more global. In reality, the Tories are reverting to their 19th-century policy of splendid isolationism. To leave the single market and the customs union is to voluntarily exclude ourselves from having unencumbered access to the markets necessary for the post-Brexit longevity and viability of the economies of Wales and the UK.

The statistics do not lie. Wales exports some £16 billion-worth of goods every year—more than the Welsh Government’s entire budget. Despite reducing access to our main markets in Europe, the Government have no guarantee of any access to new markets after exit day. Some 200,000 jobs across Wales are sustained by the single market and the customs union. By wrenching us out of both frameworks, the British Government will be rolling the dice on the livelihoods of these 200,000 Welsh people.

[Angus Brendan MacNeil]

The UK Government are not content with raising trade barriers with the 27 countries in the world with which we do half our trade. By fact of the 38 other agreements that the European Union has with other countries, that means another 67, so there will be 94 countries with which trade would involve higher barriers. When Ministers are asked about the number of countries, they have no idea how the dice will roll.

[Jonathan Edwards]

The Chairman of the International Trade Committee speaks with great expertise. That was one of the first questions that I asked the Secretary of State for International Trade when he was appointed, and it has been forgotten in this debate. The Government informed us at the time that the transition would be seamless, but it appears that that might not be the case.

These are not idle threats; this is the reality. Only yesterday, Aston Martin’s CEO came here and told Members directly that a no-deal Brexit would mean the cessation of production of their cars in the UK. That means their new flagship plant in the Welsh Secretary’s backyard in the Vale of Glamorgan could be pulled even before it begins production of the first car.

My concerns, and those of my Plaid Cymru colleagues, are entirely predicated on Wales’s national interests. That means ensuring full and unconstrained access to our important European markets, which are the destination for 67% of all Welsh exports and 90% of our food and drink exports. It means our NHS, universities and industries being able to recruit skilled workers from across Europe. It means putting Welsh jobs, wages and, fundamentally, my nation’s future first. It is not feasible that trade deals with Australia, New Zealand and other far-flung nations will replace the level of economic activity that the EU trade sustains in Wales.

Leaving the single market and the customs union does not mean going back to some comfortable status quo. We need a reliable and effective system in place to prevent potential catastrophe on exit day. We have the option of remaining in the single market and the customs union, as has been made clear by chief negotiator Michel Barnier during the discussions to date. Maintaining those vital economic frameworks would be the most prudent economic path to take, instead of endeavouring to create something new and untested that could not possibly replicate the benefits of EEA status.

[Mr David Jones]

Before the hon. Gentleman leaves his discussion of EEA membership, does he not accept that article 126 of the EEA agreement provides explicitly that it applies only to members of the European Union and to the relevant members of EFTA? Given that we will be neither, how can it possibly apply to us?

[Jonathan Edwards]

That point was also made by the First Minister of Wales when he was against this position, before he changed to agreeing with Plaid Cymru. Surely we should be endeavouring to achieve what was promised by Brexiteers such as Daniel Hannan prior to the referendum. He said that the Norway solution would be the most applicable and best solution for the UK.

[Stephen Kinnock]

I will try to assist the hon. Gentleman. The United Kingdom signed the EEA agreement in 1993 as a sovereign country. The United Kingdom is a single and separate contracting party. The body of legal opinion is very divided on this issue. Eminent experts such as Charles Marquand and George Yarrow have made it clear that they believe that to leave the EEA, the United Kingdom must trigger article 127 of the EEA agreement. Given that legal opinion is divided, this is surely a political issue that needs to be brought to this sovereign House so that we can take back control and have a proper debate and a vote.

[Jonathan Edwards]

I am always grateful for the hon. Gentleman’s assistance. He also speaks with great authority on these issues.

From where I approach these negotiations, it seems that the British Government’s decision to be outside the single market and customs union has created huge friction in the negotiations with the European Union. If we were to say that we wanted to stay inside the single market and customs union, I hazard a guess that the negotiations would proceed at a far greater pace and would reach a far more amicable destination.

Amendment 87 would alter the definition of EU retained law so as to include only reserved areas of legislation, which would allow the National Assembly for Wales and other devolved Administrations to legislate for themselves on areas of EU-derived law that fall under devolved competency.

After two referendums and hundreds of thousands of votes cast, the people of Wales chose to create a primary law-making Parliament in Cardiff that decides on the policies that matter most to the people of Wales in their day-to-day lives, such as education, health and the environment, to name but a few. The latest round of devolution saw the creation of the reserved powers model, stripping away the unnecessary jargon and constitutional complexity, which in effect means that the National Assembly for Wales has control over everything that is not explicitly listed as a matter kept by Westminster. It was meant to simplify matters and create clarity. In fact, the current Secretary of State for Wales went as far as saying that the change would settle the constitutional question in Wales for a generation. We can only assume that he was talking in terms of fruit flies, as before April 2018, when the newest devolution settlement comes into full force, we face nothing short of a constitutional crisis.

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

Is that not the crux for both Scotland and Wales? The basis of the Scotland Act 1998 was that everything not reserved was devolved. Bringing powers to Westminster instead of to where the competencies lie reverses that principle.

[Jonathan Edwards]

That is why the Scottish and Welsh Governments, in a joint declaration, said that this Bill is a naked power grab. That is what amendment 87 seeks to address.

The UK Government’s withdrawal Bill flies in the face of the reserved powers model. Rather than the new powers brought about by Brexit flowing straight to Wales, as would be the case under the reserved powers model, they will be kept under lock and key in Westminster in what the UK Government are calling a “holding pattern.” All we have is the UK Government’s boy scout promise that one day we might get back those powers, as well as the ones we have lost for that matter. If devolution is a process, why should we assume that centralisation is not?

[Angus Brendan MacNeil]

Ironically, the hon. Gentleman is describing the creation of the British superstate of the United Kingdom. The Government have taken to the centre all the powers that should be devolved. The supreme irony is that they were complaining that Europe is a superstate—it is not, it is a trade bloc. To get out of that trade bloc, the Government themselves are now creating a superstate.

[Jonathan Edwards]

That is the fear we face. Brexit is being used as a tool to reassert Westminster control over the British state, as opposed to the devolution settlement we have had since 1999. There is nothing to say that, come Brexit day, Westminster will not decide that all powers must make their way back to the corridors of SW1. It has come to the point where my party is proposing legislation in the National Assembly simply to defend the lacklustre devolution settlement we already have. My colleague, Steffan Lewis AM, has proposed a Welsh continuity Bill that would give the Welsh Parliament the legislative might it needs to take on Westminster and the power grab contained in this Bill.

Last night, the House blocked Wales’s voice on Brexit. My voice, and that of Plaid Cymru, cannot be silenced, and we will do everything we can to stop the constitutional and economic chaos that the Bill would impose on our nation.