EU Council

Oliver Heald Excerpts

Wednesday 29th June 2016 Commons Chamber

[The Prime Minister]

For once, I have great sympathy with the hon. Gentleman. That was why I chose to aim at the issue by saying that people could come here and work, but could not get full access to our welfare system for four years. That addressed the concern that his and my constituents have that there should not be something for nothing. The point that we have to understand is that European Union countries see the single market as consisting not only of the free movement of goods, people, services and capital. They see those things bound together, but they also see the single market as including the payments that countries make into the EU to strengthen the weakest members and those that have recently recovered from communism. Of course, one can try to negotiate amendments to these movements—and I did—but one has to think about that mindset as we go into the negotiation.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

The Prime Minister will be aware that North Hertfordshire voted to stay in the EU. Many of our businesses rely on the single market, and many of my constituents work in London in insurance, financial services and legal work. Does he agree that part of this negotiation must be about the passporting arrangements that enable these service interests to do so well? I do not know whether that was mentioned at the European Council. May I also thank him for everything he has done?

[The Prime Minister]

I thank my hon. and learned Friend for his remarks. The issue of passporting will loom large in the negotiations because financial services are 7% of our economy and two thirds of the jobs are outside London. We are the financial centre for Europe—40% of financial services are in Europe—and we will be strong in that area whatever the outcome, but it is undoubtedly true that the passport does help British firms, and it helps other countries’ firms come to Britain. One of the reasons why the Swiss banks are here in such large measure is that they do not get passporting rights through Switzerland. This should be a very important feature; it is one of the aspects of what access to the single market actually means.