European Union (Withdrawal) Act Debate

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Department: Department for International Trade

European Union (Withdrawal) Act

Mark Hendrick Excerpts
Monday 14th January 2019

(5 years, 3 months ago)

Commons Chamber
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Liam Fox Portrait Dr Fox
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I will make some progress. I am cognisant of the fact that some 80 Members are down to speak in tonight’s debate.

In coming to these deliberations, the House should also be under no illusion that the United Kingdom could somehow retain the status quo of its EU membership. This is not possible. It was not possible even before the referendum was called, because the EU itself is changing. The EU is committed, let us remember, to ever closer union. Even since the referendum, there have been calls to move to qualified majority voting in areas from VAT to common foreign policy. These may indeed be right for those who wish to move towards greater integration, but they are not the right course for our country. Remaining in the European Union would be either to tie the United Kingdom into a more integrationist future or to create ever more tension and friction between ourselves and our European partners.

Mark Hendrick Portrait Sir Mark Hendrick (Preston) (Lab/Co-op)
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Can the Secretary of State tell the House whether he believes that a deal with the United States would be one of the easiest in human history?

Liam Fox Portrait Dr Fox
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No one who has ever done a negotiation with the United States would use the word “easy” to describe it. That is something that comes across rather quickly to anyone who has had to deal with the United States trade negotiators. It is different, however, from negotiating a trade agreement with the European Union, the difference being that if we are looking at a free trade agreement with the United States, we have to diminish the regulatory and legal differences to get closer to a trade agreement. With the European Union, we begin from identity of regulation and legislation on our trading relationship, which should technically make it much simpler.

What we do not want to do is introduce unnecessary friction and tension. Sadly, that is something that both the Labour leader and the hon. Member for Brent North (Barry Gardiner), the shadow Trade Secretary, as well as the rest of the Opposition, have failed to understand.

As has been made clear on numerous occasions, there could be no joint decision making on trade agreements if the UK is outside the EU in the way that the Labour party pretends there can be. There would be no fully independent trade policy as part of the EU customs union, and the Labour party has absolutely no chance—none, zilch, zero—of negotiating a better deal than the one we have now. There is no need to take my word for it. In response to accusations that Labour’s trade policy was “total fantasy”, Jean-Claude Piris, the long-serving former director general of the EU Council’s legal service, said:

“Obviously this is ruled out. It is contrary to the basic EU principle of autonomy of decision making. Don’t even think about it!”

The Labour party clearly has not thought about it to any satisfactory degree.

Labour’s policy, in so far as I understood it following the Leader of the Opposition’s interview yesterday on “The Andrew Marr Show”, is that Labour intends to hold a general election and potentially another referendum, including all the legislation that would be required for that, all within 72 days of tomorrow’s vote in order to carry out their fantasy policy proposals. It is a total shambles for an Opposition. If they think they could take that to the British public in a general election, they are even more foolish and naive than I had previously considered them to be.

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Mark Hendrick Portrait Sir Mark Hendrick (Preston) (Lab/Co-op)
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The Prime Minister, in interpreting the outcome of the referendum and handling negotiations with the EU, has fought to keep everyone in the dark for most of the past two years. It was only late on in the process, when beginning to look at negotiating the withdrawal agreement, that she came forward with the so-called Chequers plan. The plan was clearly meant to strike a balance between what her Brexiteer Back Benchers would accept and what she felt she could successfully negotiate with the European Union. The final outcome clearly satisfies the latter—hence the deal, which has enraged a large proportion of her own party and certainly the vast majority of Opposition Members, who want a much closer economic and political relationship with the EU. That is not currently on offer.

If the Prime Minister had sought to engage with Parliament over the past two years rather than simply saying what she felt the referendum meant to her, and if she had informed Parliament towards the end about what she was doing, we would not be in the mess we are in today. Any progress on this matter will require consensus across the House, and not the take-it-or-leave-it approach amounting to blackmail that the Prime Minister is trying to pursue. The political declaration following the withdrawal agreement is deficient in terms of its commitment to the UK and the single market, and it also contains no mention of the customs union. To vote for this deal tomorrow would be to approve an approach to the negotiation of a trade deal in which the likely outcome with regard to the single market is unknown and in which the customs union has clearly been ruled out. This is clearly leading to a hard Brexit.

As other Members have said, the clock is running down and we have little time to come up with an alternative before 29 March. It is therefore essential that the Government seek an extension to article 50 to give us more time or, if necessary, even revoke article 50 until Parliament or the people of this country have finally decided what sort of an arrangement with the European Union this country should have. The people of this country who voted in the referendum in June 2016 could not have known all the consequences of their vote at the time, or the likely impact on jobs and prosperity in this country. Any politicians who tried to warn them of this were described as scaremongers or pursuers of “Project Fear”. Much of what the remain campaign said at the time has either become true—including a heavily devalued pound, the flight of capital from the country and job losses in key industries—or it is on the way to becoming true, should we leave on 29 March.

When the Prime Minister’s deal is rejected at the end of this debate tomorrow evening, we will be in a situation in which, in the past, a Prime Minister would have considered resigning or calling a general election. I do not expect either of those events to take place, because this Prime Minister’s track record is one of stubbornness and disregard. However, I do expect her to come forward sometime soon after with her plan B, which must include either the extension or revocation of article 50. In addition, there must be a genuine attempt to involve Parliament in finding a way forward that can form the basis of further discussions with the European Union around realistic arrangements for UK access to the single market and membership of a customs union. The European Union has said that this deal is the final deal and it will not negotiate another one, but it would say that, wouldn’t it? If Parliament can come to a consensus and the Prime Minister can respect that consensus, the EU must give serious consideration to that consensus. The Prime Minister should continue to work on that basis. If she cannot do so, she should call a general election and let the people decide.