Leaving the EU: Parliamentary Scrutiny

Nick Smith Excerpts

Thursday 28th June 2018 Commons Chamber

[Hilary Benn]

On my hon. Friend’s last point, the Committee does indeed hope and expect that it will receive a response from the Government in the allotted time. We have produced a number of reports, and I think there might be one report on which we are still awaiting a response, but, in fairness to Ministers, they have got a lot on. I see that the Minister smiles, and I am in my most generous mood today: they have indeed got a lot on. I am sure Ministers understand the dynamics of the change in the EU come next year, with the elections and the new Commission being formed, although to be absolutely fair, when we asked Guy Verhofstadt about this last week, as I recall, he expressed the view that he did not really think that would create a great difficulty, but we have heard different evidence from other people.

What I would say is that whether that causes the time to be truncated or not, 21 months to sort out the whole list of things that we are all aware of, and Ministers are more aware of than anybody else, is not very long bearing in mind that the other bit of the process is ratification at the end of it. To the extent that an agreement reached becomes a mixed agreement, the ratification process—unlike the withdrawal agreement, for which the process is the Council by qualified majority voting, this Parliament, the European Parliament—would involve the Parliaments of all of the member states, including regional Parliaments, and we all recall what the Parliament of Wallonia did for about three weeks in respect of the Canada trade deal. So that adds to the uncertainty and to the pressure to try to get these negotiations concluded as quickly as possible.

[Nick Smith (Blaenau Gwent) (Lab)]

Does my right hon. Friend agree that suggestions of an extension of any transition period are likely to be welcomed by many sectors of our economy? In the past few weeks, businesses have lined up to express their concern about the time available to provide business continuity and to safeguard jobs.

[Hilary Benn]

I suspect that that is the case. Why did the Government eventually seek a transitional period? They did so because we all agreed that falling off the edge of a cliff in March next year without an agreement was not sensible for the economy. Picking up on the point that my hon. Friend the Member for Ilford South (Mike Gapes) raised a moment ago, if we have not been able to conclude all the details of a treaty or treaties on the future partnership during the transitional period, what would be the logic of then falling off a cliff 21 months later? There is none. My own view is that it is increasingly likely that there will have to be a further transition period, because we are running out of time.

Let us take as an example the customs arrangements that the Cabinet is currently discussing. I think it is pretty clear that even if it reached agreement on one or other of them, there might not be time to get all of that implemented before the end of December 2020. The indications that I have seen suggest that that might not be possible. If it is not possible, or if it is not possible to reach an agreement, it clearly makes sense to extend the transition period. For that to happen, however, there has to be a clause in the withdrawal agreement to allow for such an extension. The last thing we want is to end up, in December 2020, with everyone agreeing that it would be sensible to have a bit more time, only for someone to say, “I’m really sorry, but this agreement doesn’t allow for that, so you’re out on your ear with whatever you’re holding at the time.” And that is not in the interests of the United Kingdom, is it?