(5 years, 4 months ago)
Lords ChamberI thank my noble friend for his comments. He is, of course, absolutely right and that is why we want to move on to the next stage of developing our future relationship with the European Union and start looking at all the other things we can do as a global Britain once we have sorted out leaving the European Union.
My Lords, I too pay tribute to the noble Lord the Chief Whip. He was very kind to Opposition Members when they joined the House, and it is sad to see him go.
My question, to which I want a serious answer, is this: what do the new Government see as the role of expert evidence when they are at the point of making serious policy decisions about the future of the country? This is a question about no deal. We know that the IMF regards no deal as the second biggest risk to the world economy in the coming year. We know that the Office for Budget Responsibility says that the budget deficit consequences of no deal would be extremely serious: £30 billion upwards of extra deficit. We know what the Bank of England says about the short and medium-term costs to economic growth. So, this is a very serious question, not one of party politics. Mrs May took notice of these experts and that is why she was determined that there would not be no deal. What notice do Mr Boris Johnson and his team of sycophants take of expertise?
I say to the noble Lord that we want to leave with a deal and that is what we will aim to do. That is why we want to sit down and talk to the Commission and EU leaders as quickly as possible to try to break the current impasse. But while the situation might be distressing, the House of Commons has rejected the withdrawal agreement three times. We need to ensure that we get a deal that we can get through Parliament; that will be the focus. But we will be legally leaving the EU on 31 October and any responsible Government have to prepare for that. That is why we are ramping up our preparations and taking a new co-ordinated approach, and why we will be building on the progress we have already made.
We have already signed bilateral voting rights agreements with Spain and Portugal, published—as I mentioned previously—750 pieces of communication around no deal and secured air services agreements. We will work hard to ensure that we are as prepared as we can be for no deal but, I repeat, we want to get a deal and that is what we will be trying to do. We will be talking to the EU to see if we can resolve the issues that have meant that the House of Commons has not been able to agree the withdrawal agreement that has been put to it three times.
(5 years, 7 months ago)
Lords ChamberAs the Statement made clear, we are at a particularly difficult time. We need to find compromise. The House of Commons is deadlocked. In the Statement, the Prime Minister acknowledged that this is an unusual situation. However, talks have begun constructively. We are exploring areas of disagreement and areas of agreement. We are looking to move forward in the hope that we can get a common approach. We all want to leave the European Union in an orderly way. We want to ensure that we have a strong future relationship with the European Union. Crucially, any future relationship with the EU needs to be underpinned by a withdrawal agreement. That is needed to take forward the future relationship. If we can agree a withdrawal agreement, we can move forward to tackle the other issues about which noble Lords and, indeed, Members of the other place are particularly concerned and, I hope, develop the relationship with the EU that we want to see in the future.
My Lords, following up on the question from the noble Lord, Lord Howell, does the Minister agree that if cross-party talks are to get anywhere the Government have to start talking with real intellectual clarity? In the other place, the Prime Minister was trying to muddle together the question of a customs arrangement and a customs union just as a starting point. On the customs union, the Labour Party is clear that we are prepared to accept EU tariffs because we think that frictionless trade with the EU is far more important than the chimera of negotiating independent trade deals with the rest of the rest of the world. Will the Minister tell us whether the Prime Minister is prepared to have that degree of clarity about what is necessary if these joint talks are to move forward?
As I say, the talks are constructive and the Government have been very clear that we want to deliver the benefits of a customs union with the ability to deliver a negotiated trade policy. That is what we believe we can achieve. We believe that it is a reasonable place to start and we will be discussing with the Opposition how we might achieve that.
(5 years, 9 months ago)
Lords ChamberAs I have repeatedly said, the Prime Minister is looking at three options and discussing them with the EU. These are: the alternative arrangements, such as technological solutions; a legally binding time commitment to the existing backstop; and a legally binding unilateral exit clause to that backstop. That is what she has been talking to the EU about. The noble Baroness is right that the paper published this afternoon provides an honest assessment of the real challenges that no deal would bring. That is why we are working so hard to achieve a deal, and it would be great if noble Lords across the House would support us in that endeavour.
My Lords, is it not the case that, when the Prime Minister talks about a working party to discuss alternative arrangements to the Northern Ireland backstop, she is fantasising? How is it possible to agree something and put it in place on the Northern Ireland border within the space of a bit over a year and a half before the end of the implementation period? Are the Government serious? How on earth do they expect this to happen?
As I have said, the alternative arrangements are not a novel concept; they are mentioned and referred to in the political declaration, and discussions have happened. Many of the existing technologies that could be used to avoid a hard border are already developed. However, many of them have not been used together, which is why further work needs to be done. We have to make sure that they are workable and, importantly, operate in the specific circumstances of Northern Ireland. It is doable and we are working together to try to achieve it.
(5 years, 11 months ago)
Lords ChamberI have been very clear that there is no deal available that does not include a backstop. Concerns have been expressed about the perceived indefinite nature of the backstop. That is what the Prime Minister will discuss further over the coming days.
My Lords, would not the Government giving some idea of what they think might replace the backstop in the long run be more helpful? Will the Prime Minister tell the many Brexiteers in the other place that their proposal for a Canada-plus-plus or whatever free trade agreement will not resolve the problem of a hard border in Northern Ireland and so the Government will have to think of something else? Of course, that something else might be staying in the European Union, which is the best way to avoid the Northern Irish problem.
I agreed with the first part of the noble Lord’s questions but I am afraid that he had lost me slightly by the end. He is absolutely right that a Canada-style deal would mean a hard border in Ireland, which we have consistently raised concerns about. He is also right that there are other options; for example, there is potential for a short extension of the implementation period. We have also got agreement to look at facilitative arrangements and how they could be used instead. The backstop is not something that either side wants to use, but it is an insurance policy. The noble Lord is right that there are other options but no other deal on the table will deal with this issue. The Irish Government and the EU have been clear that there will be no deal without a backstop. That is what we have to address now.
(5 years, 11 months ago)
Lords ChamberMy Lords, I first place on record my personal thanks to the clerks and advisers of the EU Select Committee, of which I am a member, and to the noble Lord, Lord Boswell, who chairs it extremely well, for producing an excellent analysis of the withdrawal agreement and the political declaration. We all owe them thanks. Of course, we now have to come to a political view of where we go next.
The diminishing band of supporters of the Prime Minister’s deal are essentially repeating that Victorian ditty “cling to nurse for fear of something worse”. That is the best argument they think they can give. Last week, they were saying, “It’s this deal, no deal or no Brexit”. After yesterday, it looks as though the choice is becoming, “No deal, no Brexit, or something we will cobble together in the next fortnight or so”.
The fact is that, despite months, or even years, of interminable debate in the Government, there is no clarity in this deal about the future economic relationship, or the security relationship. I do not know how the noble Baroness, Lady Evans, is able to describe it as presenting a clear vision; there is no clear vision. There is tremendous confusion about the Northern Ireland backstop. At one point we are told it is temporary and will never happen, then we are told it is wonderful because it gives us tariff-free access to the single market without any of the obligations. Let us be clear: what the EU is offering in the declaration is tariff-free access, but that is not the frictionless trade on which our manufacturers depend. The fact is that if there is any regulatory divergence we will face full inspections and border checks: this is what the Brexiteers call taking back control.
Some think that we can move to a Canada-plus agreement, but I think that is impossible. For the EU 27, that now conjures up a bad joke: Boris Johnson, in some cartoonist’s pose, trying to have his cake and eat it. They are fed up with that. They have had their fill of this British attempt to have it both ways.
Is a better exit deal possible? There is a lot of talk about EEA membership at the moment. I am a bit of a sceptic as to whether it can be done now. If the Government—and indeed the Opposition Front Bench, I have to say—had come out for Norway as soon as we had had the referendum, then the EU might have welcomed that with open arms and on the back of that solid economic foundation we could have built a strong vision of co-operation and partnership. But now, after two years having had to deal with this Government and all its divisions, they think that half the party opposite is not interested in a long-term relationship of co-operation and partnership, so the chance that they are going to pay heed to Michael Gove’s idea of, “Let’s have Norway for now”, is frankly laughable.
The choice comes down to no deal or a referendum with a clear choice to remain as the only way to draw a line under this ghastly episode in our history. Some say that this would be a defiance of democracy. I do not see how putting something to the people is a defiance of democracy—they have a big deficiency of logic to explain. There may be a problem with people who voted to leave being disillusioned as a result of a second referendum that voted to remain. For me, that is a big reason why this next referendum, if it happens, cannot simply be a vote for the status quo: it also has to be a vote for a new deal for the left-behind communities of Britain and a new push for real reform in Europe—not the Europe we have, but the Europe that could be.
Some of my Labour colleagues worry about this because their constituents voted to leave. I want to address a few remarks to them. How can you meet an obligation to your constituents if you know that what you are voting for will damage their economic prospects, their life prospects, and destroy decent jobs? It will put a future Labour Government in a position where there is far less money to spend on vital public services. People say, what about free movement? Again, while there may be some short-term political benefit in low-skilled migration being cut, in the longer term, in an ageing society with a contracting workforce, this will mean fewer people to tend to the sick and helpless. How will we make our ambitious plans for the NHS work if we cannot get the labour to do the caring? We have to think again.
How can social democrats in this country betray all those young people, of all social classes, who see Europe as part of their destiny, who regard free movement not as a burden but as an immense freedom that they enjoy and who sense that the only wat Britain can play its part in meeting the great global challenges of our time is by close co-operation with those neighbours who share our values and interests? The next days and weeks will test whether Labour remains true to its international heritage or whether it submits to an unthinking populism. I hope very much, and believe, that the representatives of the party of conscience and reform will rise to their responsibilities.
(5 years, 12 months ago)
Lords ChamberMy Lords, I shall return to the point made by the noble Baroness, Lady Ludford, and draw attention again to an entirely new sentence in the Statement that we have not heard before from the Government—that:
“if a future Parliament decided to then move from an initially deep trade relationship to a looser one, the backstop could not return”.
Does the Minister agree that this is the Michael Gove sentence, put in to satisfy him; that it suggests that Conservative MPs will be persuaded to vote for this agreement on the basis that it can later be abandoned without any care for what happens to the situation in Northern Ireland; that looser standards can be introduced—we can have a regulatory competition with the rest of the European Union and do free trade deals with the United States that no one wants—and that the Conservative Party is contemplating reneging on what it is putting before Parliament?
I do not accept that. For instance, we have been clear that we propose to maintain current social and employment standards, that we want an independent trade policy, and that we want a strong economic partnership with the EU—one of the most ambitious that it has had. That is what we will work towards.
(6 years, 1 month ago)
Lords ChamberAs my noble friend will be aware, the vote on the deal will be one for the House of Commons to take, and the Government’s commitments are enshrined by law in the withdrawal Act.
Does the noble Baroness agree that the only basis on which the customs union could be temporary as a means of dealing with the Northern Ireland border issue is if the Government succeed in persuading our EU partners that their proposals in the White Paper for a joint customs territory are feasible? Can she report on the progress of those discussions in Brussels? Have not our partners dismissed this proposal as completely unfeasible? Therefore, the Government face a very tough choice in securing the peace in Northern Ireland through a permanent customs union or pursuing what many of us on this side believe is the fantasy of an independent trade policy and a hard Brexit with a hard border.
As the Statement made clear, when we put forward our proposal for a temporary joint customs territory, the EU was initially sceptical, but it is now actively working with us on our proposal. So positions and discussions in negotiations change, and we move forward together. We have been very clear that we are committed to ensuring that our future economic partnership provides a solution to the unique circumstances of Northern Ireland. The circumstances we are talking about are in the unlikely event that we do not reach that agreement and have our new relationship in place by January 2021. That is what we are working towards and what we believe we will be able to achieve.
(6 years, 1 month ago)
Lords ChamberAs I said, we believe we are not too far apart. We have obviously been discussing some key issues today. We believe we will still get a good deal, but we have been working to prepare for a no-deal scenario, as the EU has and as any responsible Government would. We have published over 106 specific technical notices to help businesses, citizens and consumers prepare for no deal. There is work going across government, but I repeat that a good deal for the EU and the UK remains our focus and we believe that we will get that deal.
My Lords, does the noble Baroness agree that if we are to meet the commitment we made in December—that under no circumstances would there be a hard border between north and south in Ireland—the talk of the backstop being time-limited is a logical impossibility? How can an insurance policy be time limited?
As we have said, we do not want to see the backstop used at all. We anticipate that we will be able to move seamlessly from the implementation period through to our future partnership but, to have this insurance policy, we need a backstop. We have been very clear about what that backstop must not do. We have put forward proposals to make sure that we can offer a solution to that and we will continue to discuss with the EU how to ensure that we achieve that outcome.
(6 years, 4 months ago)
Lords ChamberIn relation to financial services, we will be proposing arrangements that preserve the mutual benefits of integrated markets and protect financial stability.
My Lords, on non-financial services, does the noble Baroness accept that this sector of the economy, one of the most dynamic, creative, innovative sectors of the economy, has simply been thrown to the Brexit wolves? Why have the Government wilfully ignored the evidence and report of your Lordships’ Select Committee, which took extensive evidence on the non-financial services sector, which proved conclusively that membership of the single market was key to its success and business model? Finally, does she accept that not doing anything for services also means that the Government are contemplating what I would regard as unacceptable restrictions on the freedom of movement of British citizens on the continent and of EU citizens in our country, with very negative effects indeed?
First, I say to the noble Lord that we always read the reports from your Lordships’ Select Committees with great care and attention. We may not always agree with their conclusions, but that does not mean that the work and intelligence within them is not taken very seriously by the Government. He is absolutely right about the importance of our services-based economy, which is exactly why we want to provide regulatory flexibility, because we believe that this is where potential trading opportunities outside the EU are largest. The UK will be able to negotiate our own trade deals focusing on services and digital, and these are very high in our thoughts.
(6 years, 8 months ago)
Lords ChamberAs my noble friend said, we have been very clear that nothing is agreed until everything is agreed, but we are confident on the basis of developments so far that we will reach a positive relationship with the EU. On the withdrawal and implementation Bill, we will look at publishing the future framework for our relationship with the EU. Our offer in relation to the financial settlement was made in the spirit of our future partnership and depends on a broader agreement being reached, which we are confident it will.
My Lords, I congratulate the Prime Minister on her success in mobilising our EU partners at the Brussels summit on the Russia question. It was notable. The question is how we replicate it in a year’s time.
Following up the question asked by the noble Lord, Lord Lamont, will the Leader confirm that what we will be faced with in the autumn is a framework of principles for the future and not a precise, clear trade agreement, which will take several years to negotiate after we have left the European Union—in other words, that we will be signing up to the withdrawal and implementation agreement without any real knowledge of what our future economic relationship with the European Union will be and that there is no question of being able to link the money that we are paid with that future relationship?
The noble Lord is right that when we discuss the primary legislation on the withdrawal agreement and the implementation period, we will be doing so alongside a framework for the future partnership. We have been very clear, however, that we are committed to an ambitious future economic partnership, which we are confident we will achieve. We also believe we will develop a comprehensive security partnership. That is what we are doing now, moving into this phase of the negotiations.