EU: Transition Deal

Lord Liddle Excerpts

Thursday 19th October 2017 Lords Chamber

[Lord Liddle (Lab)]

My Lords, my congratulations to the noble Baroness, Lady McIntosh, on getting this debate on this day of all days, given that our Prime Minister has to face her European partners tonight. I will tell the House briefly what I think she ought to say but fear will not.

First, any suggestion of the United Kingdom walking away from these talks would bring about a national catastrophe that anyone who seriously cares for our national interest could never contemplate.

Secondly, the money question has to be settled quickly. The Florence speech accepted not only that the financial obligations will be met to the end of the current financial period but that Britain will honour obligations it had met during its period of membership—that means commitments we have made that have not, as yet, been paid for. A classic example is EU pensions. For the Government to say that they will not contribute to the pensions of British people who have worked in the national interest in the European institutions is, frankly, ignorant xenophobic populism. We have to meet those obligations.

Thirdly, we should set up an objective method of calculating those obligations—probably a Brit and a continental from the European Court of Auditors. We should look for an independent process to make that calculation.

Fourthly, as the noble Lord, Lord Kerr, said, it is not good enough to talk just about a transition; we have to say what we are transitioning to. I would like a transition to the position of Norway. However, I suspect that all Mrs May might be able to say, if she has the courage, is that she wants a transition to a Norway-minus position. What does that mean? It means that we want to maintain frictionless trade with the EU and will adhere to European standards, except in a limited number of cases where we decide to diverge. Where we decide to diverge, we will set up joint consultation machinery with our EU partners. On any question of divergence, they will tell us how they would react to that divergence and then, in the light of that knowledge, we would decide whether we are going to go ahead and exercise the sovereign right. There would have to be a relationship of co-operation.

We have to resolve the question of the final destination. The Prime Minister should say to our partners that if there is any continued dispute in the Cabinet about this, and if the Brexiteers are not prepared to accept it, they should go and enjoy the freedom of the Back Benches because there is a clear majority in the House of Commons for a sensible, long-term deal with the European Union.