European Union (Withdrawal) Bill

Kirsty Blackman Excerpts

Committee: 5th sitting: House of Commons
Wednesday 6th December 2017 Commons Chamber

This evening, the Committee has the opportunity to vote for transparency and accountability—to give “taking back control” its true meaning. This Parliament needs to step up and do its job.

[Kirsty Blackman (Aberdeen North) (SNP)]

I was slightly not expecting to be called to speak then. I am very glad that I have been—honestly. It is good to have the opportunity to speak in this debate, particularly on the financial aspects of the Bill. Given the rumours that we heard last week in the press about the divorce bill, which have not yet been substantiated by the UK Government, this is a good time to be having this discussion.

As a number of hon. Members have said, it is clear that the divorce bill is likely to be significant. But the reason that we are making assumptions—or trying to come up with ideas about what the divorce bill might look like—is because there are no solid facts coming out of the Government. It would be incredibly useful for all of us if the Government were to say, “This is how we expect the divorce bill to be structured. This is what we expect the money to be spent on. This is how we expect it to be allocated.” We would then be able to provide appropriate scrutiny, which is the job not just of the Opposition, but of Back-Bench Government Members. It would be useful if we were able to do that.

The Government say that they have not pinned down exactly how much money we are talking about, but they have not even said that they will tell us the breakdown of the money in the end. They have not promised that level of certainty. It is all well and good for Conservative Members to say, “I’m sure that the Government will give us this information.” It would be a positive step forward if the Government actually committed to doing that.

We cannot have the devolved Administrations having to pay money towards the divorce bill. It is ridiculous that this Parliament would in any circumstances suggest that the devolved Administrations should have to pay towards something that Scotland and Northern Ireland did not vote for as those countries. It would be incredibly galling if it were suggested that we had to use the money that we would spend on public services, over which the devolved authorities have discretion, to pay any portion of the divorce bill. We would completely disagree with that.

My best guess, given the lack of information from the Government, is that the divorce bill that is being spoken about is not for future trade access, or to allow us to get into the single market or to use the customs union. In fact, the Government have been clear that they do not want us to be in the single market or the customs union. This £50 billion or €50 billion or up to €100 billion—who knows how much it will actually be—is just for our ongoing liabilities. It is not to give us access. As I have said, if the Government said what it was actually for, we would throw less accusations across the House at them about it.

New clause 80 on the transparency of the financial settlement pretty well covers what we are seeking from the Government. We need to see all that detail and it would be good to see it as soon as possible.

We have seen how the Government have behaved. The Prime Minister’s speeches have not been made to this House and she has had to come to the House afterwards to make statements. I think that, when the divorce bill is agreed—when there is a signature on the dotted line—the UK Government should have to come to tell the House first. If we are talking about bringing about sovereignty, that is the way in which such things should be undertaken. There should not just be an announcement or a speech; there should be a proper announcement to this House so that the divorce bill can be effectively scrutinised. That would be the best way to do business.

I will move on to parliamentary scrutiny and the issue of sovereignty. The hon. Member for Darlington (Jenny Chapman) spoke about fees and levies being put into statutory instruments. She was absolutely correct that, if something is a tax-like charge, it is a tax. Therefore, it should not go through a Delegated Legislation Committee; it should be in primary legislation that is discussed on the Floor of the House.

The statutory instrument system we have is already pretty rubbish. We are given the SI without much notice. When we go into the Committee, we do not know how things will go. It tends to be made up of a number of MPs who are pretty disinterested, most of whom have not read the legislation. I have been on two SI Committees over the past couple of weeks. One took about five minutes and the other took much longer and involved a much more in-depth discussion. Before we go into an SI Committee, we do not know which one of those it is likely to be, because no measure of priority or importance is given to them in advance. If we are going to put everything, from taxes to the replacement of EU workers legislation, through an SI Committee, we need a better SI system in this House to ensure that there is proper scrutiny.

To have another slight rant about proper scrutiny, the estimates process in this House is utter nonsense and does not provide proper scrutiny. I have been shouting about that for a very long time and I will not stop. If the UK Government decide that the £50 billion will go through the estimates process and will not, therefore, be properly scrutinised, there will be an awful lot of incredibly upset Members in this House, and not just on the Opposition Benches. I would like the Government, if possible, to be very clear that if there is to be a vote on this money in Parliament, there will be a proper vote—not a vote as part of the estimates process, during which we are not allowed to discuss things in great detail.

[Martin Whitfield]

As well as upset Members in this House, does the hon. Lady not envisage thousands of upset people outside this place—namely, our constituents?

[Kirsty Blackman]

I absolutely agree. If the incredibly inadequate estimates procedure were used, an awful lot of my constituents would say to me, “Why did you not talk about this?”, and I would have to say, “Because it didn’t happen to be picked by the Liaison Committee and therefore we had to talk about something else and couldn’t vote on specifically amending this matter.” That would be a major concern to people here and people outside. It would be great if the Government could give the commitment today that any vote on the divorce bill will not happen through the estimates procedure and will be properly scrutinised on the Floor of the House.

It is really important that we do get House of Commons approval for any financial settlement that is agreed on. It absolutely has to be agreed by this House. I would prefer it also to be agreed by the House of Lords. It would be sensible for it to have as much scrutiny as possible before any agreement happens. We are making it very clear that that is very important to us.

Last week, I called for the Chancellor to bring forward an emergency Budget. The Budget that we had the week before last made no mention of payments in relation to a withdrawal settlement, but the Chancellor must have had some idea about this. I can only assume that he did, but given that the DUP did not know what was going on with the agreement that had been made on Monday, perhaps he did not. He should have had some idea of the ballpark figure that was going to come out in the news the following week, and therefore it should have been in the Budget. As it was not in this year’s Budget, the Chancellor needs to come to the House and introduce an emergency Budget explaining how he is going to pay this bill—which taxes he is going to raise, perhaps—and where the money is going to come from, and then this House should properly debate the matter.

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

I agree with the hon. Lady to a large extent. We do not want hidden protocols whereby certain secret agreements about expenditure do not come before the House. We want full exposure and a comprehensive view of this.

[Kirsty Blackman]

I absolutely agree with the hon. Gentleman, with whom I used to serve on the Scottish Affairs Committee. This does need to be as transparent as possible. Every bit of money that is agreed between the UK Government and the EU as part of the withdrawal settlement needs to be itemised. We need to know what the UK is agreeing to pay for and the timescale over which we will be paying it.

[Wes Streeting]

I entirely agree with the points that the hon. Lady is making. It was interesting that this afternoon in the Treasury Committee, the Chancellor acknowledged that the cost to the UK of settling any outstanding debts with the European Union will be small beer compared with the costs if we do not get a good long-term trading relationship with the EU. There are two issues: the short-term cost and the impact on the scorecard, and the long-term cost to the economy and the damage that that will do if we cannot move on to phase 2 of these talks.

[Kirsty Blackman]

I absolutely agree. I will come on to the more indirect costs in a moment, but first I want to mention one more thing in relation to direct costs.

There is still ongoing uncertainty about the replacements, or possible replacements, for EU structural funds—for example, the Horizon 2020 money, the social fund and the common agricultural policy payments. We have a level of certainty on some of those in the very short term, but what happens after April 2019? What happens to the projects that currently receive money, or are likely to be bidding for money in future? What are the UK Government going to do to replace those funds? We do not have any certainty on the replacements for most of the direct funding.

I now move on to the indirect costs of Brexit. I am totally baffled as to whether or not there are economic impact assessments. The UK Government told us that there were impact assessments. They were incredibly clear that there were impact assessments and so they definitely knew how this was going to impact on the economy. Then, at the Brexit Committee, the Secretary of State said that there are no economic impact assessments. Any kind of responsible organisation does an economic impact assessment—before it takes an action, preferably. If an organisation is in this crazy situation where it has signed up to an action and drawn all these ridiculous red lines, it will probably be wise to do the economic impact assessments then so that it has an idea of quite how much of a mess it has got itself into.

[Tom Brake]

I do not know whether the hon. Lady is one of a number of MPs, including me, who put in a freedom of information request to access these reports. The response we got was that they could not be released because the information contained therein would damage the UK’s negotiating position. I do not know whether she has been to see the reports, but frankly there is nothing in them that could not be obtained by googling different sectors. I am not quite sure why that was used as an excuse for not releasing them to Members of Parliament.

[Kirsty Blackman]

I thank the right hon. Gentleman for his comments. I have heard that pretty insubstantial information has been provided, particularly on the numbers.

I was concerned to note that the UK Government have made a call for evidence on trade remedies. They want information from companies, organisations and sectors about which trade remedies are important to their sector. The UK Government do not know which remedies are important, because they have not done the work. They do not have a good enough understanding of the sectoral impact of Brexit.

I shall highlight a few things in relation to that. The Bank of England recently asked what would happen to cross-border derivative contracts and insurance policies after Brexit. The UK Government have not answered the question. I asked them what would happen to rules of origin and what would happen to companies that, for example, made cars in the UK. What would happen to free trade arrangements that call for cars to have 55% or 60% UK content? Currently, it is EU content, but in the event of Brexit we would seek 55% or 60% UK content. Our cars do not have that much UK content, so I asked the UK Government for their position on rules of origin and what they were doing about that. Basically, the answer was “We don’t really know.”

There has been a complete lack of understanding. An awful lot of companies and organisations are going to the Government and saying, “This is our problem. You need to fix it—and you can do it this way.” Most of them have come up with solutions and have suggested ways to fix things. Insurance organisations, for example, have a huge problem. If they sell insurance to someone in an EU country, after exit date they will no longer be able to collect premiums or pay out in the event that someone makes a claim, and they will not be allowed to write to those people to tell them that they cannot do those things, because that is how the rules work.

The UK Government could attempt to give certainty now on a number of such issues, including customs. The economic impacts of this are unbelievable, and the regulatory impacts are baffling even the Government. The impacts are going to be too big for anyone to comprehend. Most of the stuff that we will look at in future, according to how the Bill is drawn up, will be dealt with in SI Committees. It is totally inadequate to discuss incredibly important regulatory regimes, levies and taxes in such Committees. That is not how the Government should proceed. They should change their mind on that and look at the amendments that have been tabled, particularly by the hon. Member for Nottingham East (Mr Leslie). The SNP is willing to endorse them, and we thank him for introducing them.

[Stephen Timms (East Ham) (Lab)]

I am pleased to follow the hon. Member for Aberdeen North (Kirsty Blackman). I share her bemusement at where we have got to on the impact assessments, which we have now been told do not exist. Like her, I would have thought that that work would have been done—it certainly should be done. If it has not been done—we have been told that it has not been done—it urgently needs to be done so that the Government and the House can take an informed view about where we are heading.

I wish to speak briefly to my amendments 152 and 153 to schedule 4, which touch on the matter raised by my hon. Friend the Member for Darlington (Jenny Chapman). She pointed out that while it was a good thing that Ministers could assure us that no new taxes would be introduced as a result of the sweeping powers that the Bill gives to Ministers—I am glad that new taxes are not going to be imposed on us through the use of these powers—nevertheless the Bill gives them the powers to impose charges. My hon. Friend is absolutely right to make the point, which was also made by the hon. Member for Aberdeen North, that there is frankly precious little difference between taxes and charges. There are wide powers in the Bill to impose new charges, so my amendments 152 and 153 are intended to constrain the power of Ministers to impose charges, which could be almost limitless in scope. I hope that the Minister, in winding up the debate, will be able to give assurances to the Committee that these powers will not be used in ways that none of us would want. I hope that by probing the Minister’s intentions through my amendments I will receive the assurances I seek.

Amendment 152 would amend line 35 of schedule 4, on page 32. The schedule is slightly alarmingly worded, and the amendment is to part 1, which deals with the power to provide for fees or charges. Paragraph 1(3) lists various things that Ministers can introduce regulations to do: to prescribe fees or charges; to provide for recovery of any sums payable; and to confer power on public authorities to do rather similar things. The sub-paragraph explicitly allows Ministers to introduce regulations on those three things, but its first line also reads:

“Regulations under this paragraph may (among other things)”.

Apart from the three specific things, which, frankly, sound rather alarming, it seems that there are some other, non-specified things that the schedule would empower Ministers to do. Amendment 152 simply proposes the deletion of the words “among other things”, so that at least Ministers can do only three things to demand money from taxpayers or charge payers.