European Union (Notification of Withdrawal) Bill

Lisa Cameron Excerpts

Committee: 2nd sitting: House of Commons
Tuesday 7th February 2017 Commons Chamber

[Patrick Grady]

No, I want to make a little progress.

We have seen the leaked reports of the Government’s assessment that a hard Brexit could cost the UK economy up to £66 billion a year—9.5% of GDP—if we revert to WTO terms. The hon. Member for Bishop Auckland (Helen Goodman), with whom I serve on the Procedure Committee, said earlier that analysis in the Financial Times shows that the cost of simply leaving is up to €20 billion due to the shared assets that we are a part of, and that there are up to €300 billion of payment liabilities that need to be settled in the negotiations. Even after all that, there will be ongoing costs, as well as funds that we might wish to continue to contribute to. That is covered in amendment 58, which is about the European development fund. The European development fund is the main method for providing European community aid for development co-operation in African, Caribbean and Pacific countries and the overseas countries and territories of EU member states.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

Will my hon. Friend give way?

[Patrick Grady]

I am happy to give way to my hon. Friend, who sits on the International Development Committee.

[Dr Cameron]

Does my hon. Friend agree that the European development fund is crucial not only to achieving our commitment to the sustainable development goals, but to providing long-term sustainable funding for projects, rather than letting them fall at the first hurdle?

[Patrick Grady]

Absolutely. The European development fund saves and changes lives in developing countries. I would have thought that there would be a little consensus—[Interruption.] If the hon. Member for South West Wiltshire (Dr Murrison) wants to talk to me about the EDF, I am happy to take an intervention.

--- Later in debate ---

[Patrick Grady]

I will make a little progress because, as I said, we have a number of important amendments to discuss, but my hon. Friend can try to intervene later.

Amendment 51 calls for a report on the impact of UK withdrawal on Scottish seaports. The problems caused by Brexit that are facing Scottish seaports are expensive and complex. Concerns for the maritime industry surround general policy areas such as employment law, immigration, border controls and contract law, as well as transport-specific areas such as freedom to trade, safety, the environment, tonnage tax and security. The White Paper offers only more uncertainty.

The UK Government’s stated approach to immigration post-Brexit may create an increased need for border activity at Scottish seaports, and the Government’s preferred arrangements for trading post-Brexit—out of the EU customs arrangements—will necessitate additional customs checks on exports and imports at seaports, and will affect trade volume at seaports, so the Government have to mitigate that uncertainty by publishing a full impact assessment of those complex issues for Scottish seaports before triggering article 50.

Amendment 52 calls for an assessment of financial implications for charities, on which I have a certain amount of experience from my international development portfolio. International development charities across the United Kingdom are already feeling the impact of Brexit and the currency fluctuations. Money that they had raised—money that the UK public had voluntarily donated—is now worth less as a direct result of the Brexit decision, which is having an impact on the day-to-day lives of people in developing countries to whom charities had pledged money that is now not worth what it was when the pledges were made. I hear nothing from the UK Government saying that they want to make up the difference or give the charities any kind of support. UK charities generally receive some £200 million a year from the social fund, through EU structural funds and from the regional development fund.

[Dr Cameron]

Is it not extremely concerning that the chief executive of the UK-based international charity World Child Cancer stated that the fall in the pound had resulted in a 9% to 13% cut in its programme funding?

[Patrick Grady]

I agree entirely. All of us who deal with stakeholders in the third sector will hear stories such as that time and time again. It probably explains why research published by the Association of Chief Executives of Voluntary Organisations, which represents more than 3,000 employees and 15,000 volunteers, revealed that its charity chief executives were increasingly worried about the future. Half of those surveyed receive funding from the EU and 30% confirmed that indirect funding was at risk. As I have said, in the immediate case we have seen the devaluation of currency being spent by those charities.

Amendment 53 calls for a report on the relationship between the Channel Islands and the EU. The Channel Islands are not a member of the EU, but they have access to the single market and now face being denied that by a hard Tory Brexit. That is why our amendment seeks a report that sets out the full implication of the relationship between the Channel Islands and the EU, and the impact that Brexit will have. That is vital because there will be a serious impact on many key Channel Islands industries, including finance and fisheries. Again, that is an example of why we need these impact assessments.

Amendment 57 calls for a revised strategic defence and security review. The last SDSR was based on the 2015 national security risk assessment, which took place before the European referendum and did not consider any post-Brexit scenarios. As such, it is no longer fit for purpose. The SDSR makes no mention of the EU’s common security and defence policy, whereas the White Paper outlines existing UK participation in the CSDP and expresses the intention to continue that co-operation post-Brexit. Again, we see the in and out of the Tories’ Brexit.