Oral Answers to Questions

Debate between Matthew Pennycook and Robin Walker

Thursday 27th April 2017 Commons Chamber

[Mr Walker]

My hon. Friend is absolutely right for drawing attention both to the importance of financial services across the whole of the UK and to the fact that this is about the mutual interests of the UK and the EU. We want a deal that works for both, and access to the global leading financial markets in London will be as important for the other side in these negotiations as it is for us.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

Last month, the Secretary of State confirmed to the Brexit Select Committee that exiting the European Union on World Trade Organisation terms would mean an end to passporting rights. Does the Minister agree that that would be catastrophic for our financial services sector and all those who work in it? If so, does he agree that no deal is not a viable option for the financial services sector?

[Mr Walker]

As a priority, we are pursuing the most ambitious trade agreement that has ever been achieved with the European Union. Its scope and ambition should be greater than that of any agreement before it. The financial services market access—access for European firms to the UK and access for UK firms to Europe—is hugely important. That is what we are focused on achieving. Let me say to the hon. Gentleman that the position of his party that any deal is better than no deal is an absurdity when it comes to defending the national interests of this country. We need to get the right deal and to be able to say to the other side that if they do not offer us the right deal the UK will manage and take the right steps to protect itself. Of course our focus should be on getting the best deal.

[Matthew Pennycook]

The latest draft EU negotiating guidelines discussed on Monday suggest that financial services will be separated from any agreement on our future trade deal. If the Government cannot secure the safety and certainty of the financial services sector as part of any future agreement, what is their back-up plan?

[Mr Walker]

I say gently to the hon. Gentleman that we do not write the guidelines, but we recognise that financial services will be part of a comprehensive deal. We have talked about a comprehensive free trade agreement, and it certainly has not been ruled out. What the EU has said is that it does not want to do separate sectoral deals—well, actually, nor do we. We want the most comprehensive trade agreement available and we think that that should include services, including financial services.

European Union (Notification of Withdrawal) Bill

Debate between Matthew Pennycook and Robin Walker

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

[Mr Walker]

The hon. Lady raises very important points, which we will debate in detail when we come to the great repeal Bill. On Euratom, we absolutely want to continue to collaborate internationally to achieve the best and highest standards of nuclear safety, as well as to continue to work on nuclear research, where our country has been a global leader.

On the environment, the Prime Minister made very clear in her speech that Parliament will have the opportunity to debate and scrutinise any policy changes that result from our exit and the forthcoming negotiations. I have given evidence to the Environmental Audit Committee and have appeared before the House on a number of occasions. I have been clear that the UK will still seek to be an international leader on environmental co-operation. As part of the great repeal Bill, as the hon. Lady says, we will bring current EU law, including the current framework of environmental regulation, into domestic British law. We will ensure that that law has practical effect. This will preserve protections, and any future changes in the law will be subject to full parliamentary scrutiny. This House will therefore have the opportunity to debate this and other topics throughout the process.

That and future debates will no doubt draw on many assessments of what leaving the EU will mean for a wide variety of issues. The Government will also shortly be launching two closely linked Green Papers on food, farming and fisheries, and on the environment. They will be the next important stage in our dialogue on future policy with industry, environmental non-governmental organisations and the wider public.

No one can say what the final elements of the new agreement with the EU will be, and we do not know exactly how the timetable will work after negotiations are concluded. Parliament will have its say, but so too will others. Greater certainty will emerge as we go through the process, but for now there remain unknowns. For these reasons, we do not consider it wise or prudent to fix now in statute what the Government must publish at the end of a process that has not even begun or been timetabled. Doing so would constrain the flexibility of the UK Government at the end of the process and therefore potentially during negotiations. I come back to the simple purpose of the Bill—to allow the process of negotiation to begin and, in so doing, to respect the decision of the people of the UK in the referendum.

New clause 167, on young people, was also tabled by the hon. Member for Feltham and Heston, who unfortunately has had to leave us. I recently participated in a roundtable, along with colleagues from the Department for Culture, Media and Sport, with a wide range of young people from all over the country—from Scotland, Northern Ireland, Wales and England—to talk about their views on Brexit. It was interesting to hear from groups such as Undivided, bringing people together from both sides of the campaign to talk about the future. Every Member wants to focus on delivering a bright future for the young people of the UK, so I welcome the intention behind the new clause, but we can do that by coming together to represent the 100%, focusing on the future, getting the right deal for the UK in a new partnership with the EU and working together to deliver the opportunities those young people want.

Unfortunately, the new clause would require us to produce an economic analysis and so put us in the position of potentially giving information to the other side in the negotiations that could prejudice our position. The new clause also mentions the importance of Erasmus. The Government recognise the value of international exchange for students and are considering all the options for collaboration in education and training post-Brexit. In the spirit of looking to the future, however, we should not use the Bill to publish information that could undermine our negotiating position.

For all the reasons I have set out, I hope that hon. Members concerned will not press their amendments. We will produce careful assessments of the vast majority of these factors as we prepare for and take part in the negotiations, and we will use them as evidence to protect the national interests of the United Kingdom, but we cannot and should not commit to putting that information into the hands of the other side. Well intentioned as the amendments are, I urge the Committee to reject them so that we can get on with the Bill in the interests of the whole United Kingdom.

[Matthew Pennycook]

In responding, I shall be as concise as I was earlier and simply say that although the Minister has said that the Government are internally carrying out rigorous analytical assessments, he has not given us the guarantees we sought on the publication of Her Majesty’s Treasury’s impact assessments of our future trading relations with the EU. For that reason, we will be pushing new clause 5 to a vote.

Question put, That the clause be read a Second time.

Oral Answers to Questions

Debate between Matthew Pennycook and Robin Walker

Thursday 26th January 2017 Commons Chamber

[Mr Walker]

In the light of the Prime Minister’s speech and her ambition to create stability and certainty through this process, the sooner we can come forward with those proposals, the better.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

Far from being a clear exposition of policy, the Prime Minister’s appeal for a hybrid customs arrangement with Europe sadly raised far more questions than it answered. Will the forthcoming White Paper expand on her remarks and provide businesses across the country with the clarity that they need about how the alternative arrangements might affect them?

[Mr Walker]

The Prime Minister’s statement has given welcome clarity to businesses and was welcomed by many business groups, but of course we expect the White Paper to set out more detail. We must also, however, protect our negotiating interests throughout the process, as the House has repeatedly instructed us to do.

Leaving the EU

Debate between Matthew Pennycook and Robin Walker

Wednesday 18th January 2017 Westminster Hall

[Mr Walker]

The hon. Lady expresses an opinion about the past and the arguments that we had during the referendum. I think it is important to focus on the future and the process.

In the time that I have, I will make some brief remarks about the Government’s key objectives. First, in answer to the direct question that my hon. Friend the Member for Sittingbourne and Sheppey asked, I want to clarify that the Government are committed to respecting the will of the British people and delivering on the referendum result. That is why I welcome this debate and the opportunity to focus on the process and how we can get the best deal for the UK. As the Prime Minister has said, we will trigger article 50 and begin the process of leaving the EU by the end of March. That timetable has given us a bit of time to prepare the negotiating strategy and engage constructively with stakeholders. Yesterday’s announcements about our aims were informed by that consultation, which is ongoing.

We want a smooth departure from the EU and a new, positive, constructive and equal partnership for Britain and the EU—a partnership that will be good for Britain and good for the rest of Europe. That is why in her speech yesterday the Prime Minister set out a serious and ambitious vision of a new partnership with the EU for a global Britain, including a comprehensive plan covering our 12 negotiating objectives. I will not repeat them all, because all hon. Members will have followed that speech closely, but it is important that I reiterate their importance and, with the hon. Member for Strangford (Jim Shannon) in the room, say that one of the key principles is to maintain the common travel area with Ireland. In answer to the hon. Member for Livingston’s point—[Interruption.] I will not give way, because I have limited time to deliver quite a lot of detail, but in answer to one of the points that the Scottish National party has made regularly, the Prime Minister put an emphasis on protecting the rights of EU nationals in Britain and British nationals in the EU.

To deliver those objectives, officials in my Department and Ministers have carried out a programme of sectoral regulatory analysis and engaged with every devolved Administration and regions across the whole UK to identify the key factors for businesses, communities and the labour force that will affect our negotiations. We are also building a detailed understanding of how withdrawing from the EU will affect our domestic policies to seize the opportunities and ensure a smooth exit process.

As my hon. Friend the Member for Sittingbourne and Sheppey said clearly, the way to start a negotiation is not to tell the people we are negotiating with exactly what we plan to do. Indeed, the House agreed without a Division on 12 October last year that nothing we do or say should undermine the UK’s negotiating position. That was supported by a majority of more than five to one in a Division on 7 December. I welcome the support of my hon. Friend and the hon. Member for Strangford, and indeed that of the hon. Member for Greenwich and Woolwich (Matthew Pennycook), who sits on the Opposition Front Bench, for the article 50 process. My hon. Friend is right that we must leave the EU in accordance with the process set out in article 50 of the treaty on European Union, which he read out. That is the only lawful route for withdrawal from the EU under the treaties.

We expect the process to follow three stages: notification, negotiation and conclusion. First, we will notify the European Council of our intention to leave the EU under article 50. The Prime Minister has been clear that we will trigger article 50 by the end of March, and the House backed that timetable by a large margin in December. Triggering article 50 is the first step in making the United Kingdom a fully independent, sovereign country, free to make our own decisions. Our position remains that triggering article 50 is a matter for the Government, but as the House knows, we await the Supreme Court’s judgment, which I note is expected to be handed down next Tuesday. I do not want to comment on possible scenarios until that judgment has been made, but let me be clear: whatever the outcome, the Government remain committed to triggering article 50 by the end of March.

Secondly, once article 50 has been triggered, we will then negotiate a withdrawal agreement with the EU. Article 50 makes it clear that there are two years to negotiate such a withdrawal agreement. The Prime Minister has been clear that by the time the two-year period ends we also aim to have reached an agreement about our future partnership. Article 50 itself, as my hon. Friend pointed out, talks about taking account of that relationship in the withdrawal agreement. From that point onwards, we believe a phased process of implementation in which Britain and the EU institutions and member states prepare for the new arrangements will exist between us.

The Government’s priority is to ensure that we get the best deal for the UK. The UK is leaving the EU, but we are not turning our backs on Europe. If we approach the negotiations in a constructive spirit, as we intend to, we can build a partnership for a strong UK and a strong EU. Although we are confident that a fair deal along these lines can be achieved, we are clear that, for the UK, no deal with the EU is better than a bad deal. My hon. Friend has made his support for that approach very clear.

Thirdly, the precise timing, terms and means by which we conclude the process will be determined by the negotiations. However, the Prime Minister has confirmed that the final deal that is agreed between the UK and the EU will be subject to a vote in both Houses of Parliament before it comes into force.

[Matthew Pennycook]

Will the Minister confirm that the vote that Parliament will have will be a take-it-or-leave-it vote, with “leave it” being the hardest possible exit on WTO default terms?

[Mr Walker]

The Prime Minister has made it clear that Parliament will have a vote. There will be plenty of opportunities during the process for Parliament to exert its views and to influence the process. I want to come on to some of those.

As I have already described, we have had a huge amount of parliamentary scrutiny. I do not have the time to run through all of it, but it is important to reiterate the commitment that the Secretary of State has made to keeping this Parliament at least as well informed as the European Parliament as negotiations progress. He has set out that he will provide as much information as possible, subject to that not undermining the national interest. It is clear that negotiations will be fast moving and will cover sensitive material, so we will need to find ways of engaging with Parliament throughout the process. We are working through the practicalities of that and will say more when the work is complete.

Parliament’s role will not be restricted to scrutiny and making recommendations. Leaving the EU will require legislation. In particular, the Government will be bringing forward legislation in the next Session that, when enacted, will repeal the European Communities Act 1972 and ensure a functioning statute book on the day that we leave the EU. In considering that great repeal Bill, Parliament will have a crucial role to play in determining the future legal framework of our country.

My hon. Friend made a very good point about the slang of Brexit and the fact that it should be “UKexit”, and the Prime Minister was very clear in her speech yesterday that we must deliver for the whole United Kingdom. The Government will continue to engage fully with the Scottish Government, Welsh Government and Northern Ireland Executive to get the best possible deal for all parts of our United Kingdom as we leave the EU. We will give the devolved Administrations every appropriate opportunity to have their say, and we will look at any suggestions that they put forward. As my right hon. Friend the Secretary of State for Exiting the European Union confirmed yesterday, and as the hon. Member for Glenrothes (Peter Grant) said, the Joint Ministerial Committee will be discussing Scotland’s plans and proposals when it meets tomorrow.

The UK Government have made it clear that we intend to fully involve Gibraltar, Crown dependencies and overseas territories as we prepare for exit, to ensure that their interests are properly taken into account. As such, the first meeting of the UK-Gibraltar Ministerial Forum took place on 7 December. My very first debate in this Chamber was on Gibraltar. I have committed to quarterly meetings with the Chief Ministers of Jersey, Guernsey and the Isle of Man, and we meet again next week. UK Ministers and leaders of the overseas territories have committed to taking forward future engagement through the creation of a new joint ministerial council. Having those processes in place will ensure that we take into account the views of all parts of the UK and the territories whose interests we represent in the negotiations to come.

It is clear from today’s debate that there remain a wide range of views about the Government’s plans for leaving the EU. However, the process for leaving the EU is clearly set out in article 50. The Government are determined to respect the will of the people by invoking article 50 and beginning the process by March, and we must do that in a way that delivers for 100% of the people of this United Kingdom.

Question put and agreed to.

Resolved,

That this House has considered the process for the UK to leave the EU.