European Union (Notification of Withdrawal) Bill Debate

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Department: Department for Exiting the European Union
George Osborne Portrait Mr Osborne
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I wish to make some progress, and I want others to have a chance to speak, so I will not take interventions.

There is a mandate to leave the European Union, but that was the only question asked of the British people in the referendum. We cannot assume that the British public gave a set of answers to the questions we now face as a Parliament. Indeed, those questions are now entrusted to us as we approach the negotiations.

I call them negotiations but I do not think they are going to resemble the negotiations that we currently read about in the media. The truth is that although Britain is seeking the maximum possible access to the single market for goods and for services, and we hope that the fact we have a trade deficit and a very important financial centre will count in our favour, the Government have chosen—and I respect this decision—not to make the economy the priority in this negotiation. They have prioritised immigration control, which was a clear message from the referendum campaign, and removing European Court of Justice jurisdiction from the UK and, in that sense, asserting parliamentary sovereignty, although I would point out that Parliament can choose to leave the EU, as indeed we are choosing to do in the coming days.

So we are not prioritising the economy, although we hope for the best possible arrangement, and the European Union is not prioritising it either in these negotiations. Having spent the past couple of weeks in Berlin and in Paris talking to some French and German political leaders, it is clear to me that although they understand that Britain is a very important market for their businesses, their priority is to maintain the integrity of the remaining 27 members of the European Union; they are not interested in a long and complex hybrid agreement with the UK. Therefore, both sides are heading for a clean break from the EU for the UK.

The only thing I think the negotiation will come down to in the end is how that break is achieved. The Prime Minister, in her speech of a couple of weeks ago, made it clear that Britain is seeking a transition agreement, and that is obvious because it is simply not possible for this Parliament to introduce all the domestic legislation that is going to be required to replicate the arrangements we currently have with the EU, even with the great repeal Act. We will also need to have some kind of bridge to the free trade agreement that we seek with the EU. At the same time, the EU needs from us financial commitments that it believes we entered into to pay for European projects that were undertaken while we were a member. In practice, that means the negotiation will be a trade-off, as all divorces are, between access and money. We will try to scale down our payments to the EU, while scaling down our commitment to EU rules and access, until we reach that free trade agreement which we hope to negotiate.

Kevin Brennan Portrait Kevin Brennan (Cardiff West) (Lab)
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Will the right hon. Gentleman give way on that point?

George Osborne Portrait Mr Osborne
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I will just finish my speech and then others can speak.

That is what the negotiation is going to be like. I suspect it will be rather bitter. I spent four years negotiating with Michel Barnier, and I advise my right hon. Friend the Secretary of State for Exiting the European Union to be well briefed, as he always is, and to pack a packet of Pro Plus, because there will be many long nights ahead.

It is very important that in the bitterness of that discussion we do not forget that there are some fundamental reasons why Britain wanted to be part of a European Common Market in the first place; nor should we allow the Europeans to forget that there was a fundamental reason why they created a European Community, which was to bring the nations of Europe together. We must try to keep those thoughts and hopes alive as we exit the EU.

The final thing I want to say is this: we have made a decision to leave the EU and, as the successful leave campaign put it, to take back control, but that means a series of issues are going to come to this Parliament that completely divide Brexiteers from each other, remainers from each other, Conservatives from each other and members of other parties from each other. We are going to have very lively debates about free trade, as we are beginning to see at Prime Minister’s questions; these are debates about what kind of agricultural produce we want to allow into this country or the kind of public procurement contracts we want. We are going to have a very lively debate about immigration, how many people we want to let into this country, how we welcome skilled people into this country, and how we support our universities and scientific research institutions. We are going to have an argument about agricultural subsidies and whether we are happy for the poorest people in this country to pay taxes to support subsidies to some of the richest. We are also going to have an argument about state aid and whether we should be able to bail out failing commercial enterprises. I will be in those fights in the couple of years ahead.

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Angus Brendan MacNeil Portrait Mr MacNeil
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The right hon. Gentleman makes precisely my point, and I am grateful to him for doing so. He may be able to tell me how many member states of the United Nations are not in a regional trade agreement. Anybody? [Interruption.] The hon. Member for Braintree (James Cleverly) knows: he was at my Committee session today. There are only six member states of the United Nations that are not in a regional trade agreement.

Kevin Brennan Portrait Kevin Brennan
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Name them.

Angus Brendan MacNeil Portrait Mr MacNeil
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I will. They are Mauritania, Palau, São Tomé and Principe, Somalia, South Sudan and East Timor, and soon to join this illustrious group is the United Kingdom. This is playing fast and loose; it is “Cross your fingers and hope it works out for the best.” The UK will find itself, for the first time since 1960, not in a free trade agreement. It joined the European Free Trade Association, the original free trade agreement, in 1960, and that is how it has been since then. I have been told by the Library that every member of the OECD is in a regional trade agreement, and even North Korea signed up to one in 1988. The UK is boldly going where even North Korea fails to go.

If that does not give Members pause for thought, what will? As they head over the edge of the cliff, they will take their constituents and the poorest people of society with them. Let us remember who paid for the bankers: the poorest in society. Who will pay for this fashion of Brexit? The poorest in society will be paying for it. We are feeling our way and crossing our fingers. It is not the best deal for the UK.

Let us remember that the best deal that the UK will now have with Europe will be after we have smashed up the Rolls-Royce. We will head down to the second-hand car dealer and ask him for the best motor he has got, because we have smashed up our Rolls-Royce and thrown it to one side. Having refused to travel in the best possible transport, we are now going for the best after we have smashed up the Rolls-Royce.

This House has to come to its senses, as it did on Iraq, the poll tax, the bedroom tax and numerous other matters. Unfortunately, the people who will pay for this are not here. Members are hellbent on going to any destination so long as it involves leaving the EU. That is gross irresponsibility. There is only thing—I repeat, one thing—that can save Scotland, and that is independence, and independence very soon.

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Jim Dowd Portrait Jim Dowd (Lewisham West and Penge) (Lab)
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I shall be as brief as I can. It is slightly depressing when, because of collusion between the Front Benchers, the result is, as everybody knows, a foregone conclusion. Eric Forth, whom many of us will remember, always used to say that when the Front Benchers agree with each other, it is time for the House to be at its most active in examining precisely what that alliance means.

My hon. Friend the Member for Sheffield South East (Mr Betts) mentioned the fact that yesterday my hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) said this is a very difficult issue for the Labour party—and indeed it is. I think it is a very difficult issue for every Member, presenting us with a paradox in knowing what is the right thing to do. Some say the result of the referendum means that supporting the Bill is the right thing to do, while others disagree, saying that their duty to their constituents transcends even party loyalties.

Let me make my position perfectly clear. I am in a very fortunate position. As I told the Prime Minister during her statement on the Monday after the referendum, on 27 June, my constituents voted by about 2:1 to remain in the European Union. As I said then, I always regard my prime responsibility to be towards my constituents.

My constituents have written to me in unprecedented numbers—I am sure that most Members will have had more contact with, and information from, constituents over this issue than just about any other; it certainly applies to me in my 25 years in this place—urging me to support the constituency’s vote. I will support their objection to leaving the European Union, and I will vote against Second Reading tonight. I will vote for the SNP amendment and against the programme motion—and I will continue to do so. I say to my Front-Bench team that I will be active next week, when the Bill is in Committee. I will seek to amend it, but I will vote against Third Reading as well. I will not be complicit in something that I know and feel to be wrong, and to be against the best interests not just of my constituents or this city, of which my constituency is a small part, but of the whole country and all its people. Anything else—whatever negotiations take place, whatever agreements are made—will be sub-optimal. Reform of the European Union, staying in the European Union and leading the campaign of reform was in the best interests of the British people, and I will do nothing now to undermine their position.

People have mentioned the status of European Union citizens in this country. I am sure that the Prime Minister is in earnest, and is being genuine, when she says that she wants to secure early agreement on reciprocal arrangements in Europe for British nationals living in EU countries. I say, as do others, that the answer is in her own hands. She can reassure EU nationals living in this country now by saying that their future, and that of their families, is secure. She can then go, quite rightly, to the chambers and the councils of Europe, and say, “We demand the same from you.” [Hon. Members: “What if they say no?”] There is only one reason why I would ever turn my back on the European Union and agree that we should leave. I would only do that if members of the EU denied British citizens the right that we can give to EU nationals.

Kevin Brennan Portrait Kevin Brennan
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Conservative Members shouted “What if they say no?” Surely that is the point. Is the Prime Minister seriously suggesting that if the other countries said no, she would ask the European Union citizens who are currently resident in this country to leave?

Jim Dowd Portrait Jim Dowd
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That is indeed precisely the point. We can do that, and we can do it now.

The reason UKIP has so little traction in London, for example, is that most Londoners, within a generation or two, are immigrants themselves—not necessarily from overseas, but from other parts of the United Kingdom: from Scotland, Wales, Northern Ireland, the north or the south-west. The idea of “the other” is nothing new to Londoners. I agree with what Members have said about the pace of social change. People need to feel that they are in control of it, that there is a role for them, and that they understand the nature of the change that is being effected.

I will vote as I have indicated because I believe it to be right. That might, in the fullness of time, prove to be a mistake on my part, but I nevertheless believe it to be right. What worries and depresses me about today’s proceedings is that I fear that many Members will vote tonight for something that they know is not right, because it is expedient for them to do so. I shall not join those ranks. I shall do whatever I can to ensure that the deal that will inevitably follow is the best it can possibly be, but I will not be complicit in undermining the position of the British people.

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Mike Gapes Portrait Mike Gapes
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I am not replaying the arguments. I am dealing with realities. It is interesting to note that, at the last general election in 2015, the hon. Gentleman may have stood on a manifesto in which his party said yes to the single market. It also said that it would hold a referendum: it had a mandate to do that. But as the former Europe Minister, the right hon. Member for Aylesbury (Mr Lidington), said in June 2015:

“The referendum is advisory, as was the case for both the 1975 referendum on Europe and the Scottish independence vote last year.”—[Official Report, 16 June 2015; Vol. 597, c. 231.]

This Parliament must decide how, when and if the referendum should be implemented. The problem with the position that is being taken by both Front Benches is that triggering article 50 early will place us on an escalator travelling in one direction, with no ability to get off. A legal process is taking place in the Irish courts at this moment about whether—about the possibilities, the implications—article 50 is reversible. We do not know the judgment yet. Why on earth are we triggering before we know the legal position on article 50? Why have our Government decided to go for the hardest possible leaving of the EU—no customs union, no Euratom, problems for Gibraltar, and problems for the Northern Ireland peace process and the Good Friday agreement? All those things have been done before we know whether we could decide in a year’s time, or perhaps in two years’ time, before this process is complete.

We need not be on this escalator. We need a means to stop this process, and that is why we need clarity before we start triggering it. We did not need to trigger it in March this year; we could have waited. This did not need to be done before the French election and the German election.

The reality is that the ratification process requires decisions in 27 national Parliaments, in the regional Parliaments of Wallonia and elsewhere in Belgium, and in the European Parliament. If we have that process, we will have a narrow window of opportunity—perhaps just about a year from the autumn of this year to the autumn of 2018—and then there will have to be a ratification process. We will not get a good agreement. We could be in the disastrous position of going off the cliff with no agreement at all—with the terrible economic consequences of World Trade Organisation terms only. That would be an unmitigated disaster for my constituents and for the country.

I am doing what the right hon. and learned Member for Rushcliffe (Mr Clarke) talked about yesterday: I am voting as Members of Parliament should—I am following my own judgment and I am listening to my constituents and to the country.

Kevin Brennan Portrait Kevin Brennan
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Will my hon. Friend give way?

Mike Gapes Portrait Mike Gapes
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No, I have to conclude.

I will not be voting to trigger article 50 at any stage.

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Madeleine Moon Portrait Mrs Madeleine Moon (Bridgend) (Lab)
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We as a Parliament and a democracy have not done that well by the people who elected us. We took the country into a referendum that had nothing to do with the best interests of Britain and everything to do with attempting to heal deep divisions in the Conservative party.

Labour Members did not oppose the referendum, because we did not wish to appear not to trust the voters, and I have to admit that we had some divisions of our own. However, all of us failed to set the rules for the referendum. We did not impose a super-majority, and we did not have a requirement for a road map showing the implications of a leave or a remain vote and the cost implications of the two alternatives. Then came the shockingly irresponsible referendum campaign, which was full of lies, misinformation, dog-whistle politics, fear and xenophobia.

When the people of Bridgend voted by a majority to leave the EU, they did so for a variety of reasons. They wanted the money back that the battle bus told them was going to Europe while, apparently, nothing came back to the UK, and they wanted it spent on the NHS. They are not going to get it. They wanted control of immigration and spending. They wanted an end to austerity, and they wanted to wipe the smug look off the faces of the Prime Minister and the Chancellor—well, they achieved that one.

On the doorstep, people did not tell me they would be happy to lose their workers’ rights, to lose their jobs, to have lower standards of living or goods, or to have reduced opportunities for their children and grandchildren. Nor did they talk about wanting to leave the single market or the customs union, or to pursue a bold and ambitious free trade agreement. Somehow, we as politicians were to square the circle: stop immigration, get our money back, get control back and become more affluent. I cannot keep on voting for a process that gives the people of Bridgend no assurance of a secure future for them and their children. I will not be voting to trigger article 50.

Kevin Brennan Portrait Kevin Brennan
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I have taken the unusual step of listening to the debate, rather than contributing to it. Having listened for many hours over the last two days, I will join my hon. Friend in voting against Second Reading this evening.