European Union (Notification of Withdrawal) Bill

Owen Smith Excerpts

2nd reading: House of Commons
Wednesday 1st February 2017 Commons Chamber

[Owen Smith (Pontypridd) (Lab)]

I will vote against triggering article 50 tonight as a patriot who believes in Britain, and as a democrat who believes profoundly in parliamentary democracy. I will do it in the interests of my children, my constituents and my country, and in support of my convictions, because I do not believe that the Brexit course we are set on will make Britain a more prosperous, fairer, more equal and more tolerant country. To the contrary, it will make our politics meaner and our country poorer.

Despite all the optimism and jingoism we have heard from those on the Government Benches in the last two days of debate—there have been many terrific and many difficult speeches—I cannot credit the notion that the best way to make Britain a successful global trading nation is to withdraw from the most sophisticated global market the world has ever created. I cannot believe, standing here in London, in the heart of the most global, cosmopolitan trading city the world has ever seen, that we will enhance our chances of improving our economy by cutting off this city from the other great cities around Europe.

I cannot believe that our economy will improve, and I cannot believe that the constituents I represent will be well served. In fact, if the hard Brexit—the rock-hard Brexit—proposed by the Prime Minister comes to pass, I am convinced that it will be constituents such as mine, in working-class communities in this country, who will be hit hardest. And if the alternative version that she is threatening Europe with comes about, they will be hit harder still.

However, the biggest reason why I will vote against article 50 tonight is not the economy—we have made too much of that—but the values that are in jeopardy in our country and across the world. We are a liberal, plural, tolerant, European enlightenment economy and society, and the great British values that Labour has spoken for for so long are at risk today. This Brexit vote began with immigration. The man in charge of leave said it was their baseball bat, which they simply needed to pick up to win the vote. It has ended with the right hon. and learned Member for Rushcliffe (Mr Clarke) saying that the Tory party is now an anti-immigrant party, and with the Prime Minister hand in hand with a racist President of the United States. Are those my values, or are my values those of Angela Merkel, who had to ring up the President to tell him he was wrong? I know where I think this country stands on that issue, and I know that, unless we think again, we are going down a very, very dangerous path.

European Union (Notification of Withdrawal) Bill

Owen Smith Excerpts

Committee: 1st sitting: House of Commons
Monday 6th February 2017 Commons Chamber

[Mr Harper]

I am pleased that the hon. Gentleman rose to his feet, because I am about to turn away from my first point about the new clauses tabled by Opposition Front-Bench Members and to talk about the ones that I think could be much more damaging. Those include new clause 51, to which the hon. Gentleman has appended his name, and amendment 44.

In the Government’s amendment to the Opposition motion that was passed by the House on 7 December last year, the House agreed by 448 votes to 75 that the Government should indeed ensure that Parliament had the necessary information to scrutinise these matters properly. The instruction from the House also stated, however,

“that there should be no disclosure of material that could be reasonably judged to damage the UK”.—[Official Report, 7 December 2016; Vol. 618, c. 220.]

This is an arguable matter, but my contention is that the detail called for in new clause 51 on, among other things, the terms of proposed trade agreements and the proposed status of citizens are details that we would not want to disclose during our negotiations. For example, we would not wish to disclose whether tariffs were to be introduced or at what level. To do so would be to reveal our negotiating hand, which would be counter to the strongly expressed view of the House. If new clause 51 or amendment 44 are put to a vote, I strongly urge the House to vote against them.

[Owen Smith (Pontypridd) (Lab)]

The right hon. Gentleman has mentioned new clause 51, which has been tabled in my name and those of other Opposition Members. Given that, before the referendum, the Government of which he was a part estimated the damage to the UK’s GDP of our leaving the EU on World Trade Organisation terms at around 7.7% of GDP or perhaps as much as £66 billion, would he not think it sensible for the Government to allay the country’s concerns if they now believe that the effects will be far less serious?

[Mr Harper]

The hon. Gentleman is picking out one aspect of his new clause. I was drawing out an aspect, to which I object, dealing with the effective disclosure of our hand in the discussion on future trading arrangements. That would not be very sensible while we are carrying out negotiations with our trading partners.

[Owen Smith]

rose—

[Mr Harper]

The hon. Gentleman tempts me.

[Owen Smith]

I am grateful to the right hon. Gentleman for being tempted. Another big area in which the Government were very clear, prior to the referendum, was the impact on trade of our leaving the EU, yet now we have no information on whether there will be more or less trade with the EU or with its constituent countries. Does it not seem sensible to tell the country whether we will have more trade with the EU or less?

[Mr Harper]

One of the flaws in the hon. Gentleman’s suggestion is that all the matters to which he refers are forecasts, estimates or guesses. A number of estimates and forecasts were made by both sides of the argument—leave and remain—before the referendum. I am not an expert on these matters, but it seems that not all of those forecasts and assessments have panned out exactly as people thought they would, so I really do not know why producing large documents full of equally erroneous forecasts would be helpful.

--- Later in debate ---

[Dr Wollaston]

I thank my right hon. Friend for that. Like her, I do trust the Prime Minister, and that is why I have taken a very reassuring line with my constituents. However, there is no substitute for a clear statement from our Prime Minister that, come what may, families such as this will not be separated, because that is the reassurance they seek. I hear what my right hon. Friend says, but I think we should get on and make that offer, because it can be nothing but good to do so.

I also hope the Prime Minister will take further action on the issue of those who work in our NHS and social care. One in 10 of the doctors who works in our NHS comes from elsewhere in the EU, and I would like to say thank you, on behalf of the whole House, to all those workers and to all those who are working in social care. It would also be very much a positive move if we could say, up front, that those who are working here will be welcome to stay and make it very clear that we will continue to make it easy to welcome people from across the EU to work in social care and in our NHS.

[Owen Smith]

I shall make a short, pointed speech, because a lot of other Members have been present throughout the debate and wish to speak. It is extraordinary that we are debating one of the most, if not the most, important economic, social and strategic decisions that this House has had to make—certainly in the six years I have been here and arguably for 70 years—in a few short days and hours.

I shall speak to new clause 51, which I tabled. It is a simple, good-hearted new clause that would get the Government to come clean with the country and explain what they think the effect of Brexit is going to be for our constituents and for the national interest. It refers to labour rights, health and safety legislation, environmental protections and, most importantly, the impact we are likely to see on our GDP and balance of trade—the fundamental metrics that dictate whether we succeed or fail as a nation.

I tabled the new clause before we saw the abject, lamentable piece of work that the Government produced last Thursday: the 70-odd skimpy pages of the White Paper, 10% of which is actually white or blocked out. It is the whitest White Paper I think the House has ever seen. I contrast that with the 200-odd page report that the Treasury produced ahead of the referendum, which detailed the minutiae of all the impacts anticipated as a result of the changes in respect of GDP—[Interruption.] They chunter on the Government Front Bench, but when the Prime Minister was sat on that Bench as Home Secretary, she signed up to every line of that Treasury report, so it is entirely legitimate for the country to ask whether she is now living a lie as to what she thinks the impact of Brexit will be. Is she deceiving the country about whether this is going to turn out well for us, or not?

Let us not forget that the Treasury report suggested that the net impact on GDP of our leaving the European Union was going to be in the order of £45 billion per annum within 15 years. That is a third of the NHS budget. It would require a 10p increase in the basic rate of taxation to fill that black hole. It may well be entirely untrue. Perhaps it was just an estimate by experts in the Treasury that we should no longer believe, but if so, the Government need to come clean and tell us the current estimate.

Now that we know what the Government are planning to do—now that we know that we are gunning for the rock-hard Brexit that they hate to hear about on the Government Benches—what will the impact be? What will be the impact on trade? The Government were very clear about that previously. Under any circumstances, leaving the European Union will reduce trade by this country. It will make us “permanently poorer”, according to the Treasury, as a result of reduced trade, reduced activity and reduced receipts, which will force the Government to increase and prolong austerity. Those are the stakes we are playing for on behalf of our constituents in this debate.

It seems to me entirely right that if this House is to be worthy of the name of the Houses of Parliament, and if it is going to do its job as it is meant to and as it has done for centuries, we need to see the detail. We need to be clear about what this is going to mean for my constituents and for my children. If it is anything like the black picture that was previously painted, we must have a final, meaningful vote in this House on the terms.

We cannot allow this country to drift out of the European Union on a bad deal—on World Trade Organisation terms—which would mean that the £45 billion black hole in our public finances was realised. We cannot allow that to happen for future generations, and we will be held accountable by those future generations if this House sits by, supine and pusillanimous, allowing this legislation to be waved through the House for political purposes—that is, to end the 30-year civil war on the Tory Benches. I cannot stand for that, and we should not stand for that in this House. We should see the detail and hold the Government to account, and I will continue to do that throughout this debate.

European Union (Notification of Withdrawal) Bill

Owen Smith Excerpts

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

[Tim Farron]

I will come on to that in a moment, but it is not in any way enacting the will of the British people consistently to refuse the British people the right to have a say on a deal that will affect generations to come and that none of us here knows what it will look like.

[Owen Smith (Pontypridd) (Lab)]

I support the position that the hon. Gentleman articulates with amendment 43 but, in light of the concession we heard from the Government today, does he share my concern that, at the end of the negotiation, the choice that this Parliament will have will be between accepting the deal that the Government offer—possibly a bad deal—or falling out of the European Union on WTO terms at a cost of £45 billion to our gross domestic product? Does he not think the British people might be worried about that and might want to have a say?

[Tim Farron]

The hon. Gentleman continues to make a strong case, and he is bold in putting it across, and not just today. There is no doubt that, whatever the British people voted for on 23 June, they certainly did not vote to make themselves poorer. It would be absolutely wrong for that game of poker to end with our dropping off a cliff edge without the British people having the right to have their say.

--- Later in debate ---

[Mr Grieve]

I have to say to the hon. Gentleman that I do not know. I actually think that none of us knows. We can make some broad assumptions that there appears to be some goodwill to try to reach a sensible agreement, and we can see how that could be easily derailed by political pressures and considerations within other EU states. We can also see that the United Kingdom is at a disadvantage in the negotiations for reasons that are plainly obvious. Having embarked on this course, however, we have to try collectively to apply common sense. I regret to say that I often do not hear common sense on this issue. Frequently, I do not hear it from some Conservative Members who seem fixated on ideological considerations that will reduce this country to beggary if we continue with them. We have to be rational in trying to respond to the clearly stated wishes of the electorate until such time as they show—they might, just as they showed between 1975 and last year—that they have changed their mind on the subject. Even then, the view might be of a completely different future and not a return to the past.

I will do my best to support the Government and I welcome the Minister’s comments. In the circumstances, having looked at the amendments, those comments are the best solution we have this evening. However, that does not mean that the Government will not have to continue thinking about how they involve the House. Otherwise, this House will simply involve itself.

[Owen Smith]

It is a genuine pleasure to follow the excellent and characteristically shrewd speech by the right hon. and learned Member for Beaconsfield (Mr Grieve). I agree wholeheartedly with one point he made towards the beginning of his speech: we cannot allow the fact that there has been a referendum to absolve this House of its duty to scrutinise the Government’s progress in the negotiations, and to act in the national interest. I wholeheartedly agree with him on that. That view is conditioning my entire approach to this debate.

I disagreed with the right hon. and learned Gentleman, however, on the substantive point he made in respect of the concession made by the Brexit Minister. I disagree that the Government have made a substantive concession today. I confess that I am far less sanguine than some of my right hon. and hon. Friends about that. It does not feel to me that we have moved much beyond where we were in the Lancaster House speech. What is being offered to the House is a debate right at the end of the process, at a point—we do not know when exactly—seemingly in the dog days of the process. A choice at that point will be between the deal on offer, which in my view is likely to be a bad deal—one predicated on our leaving the single market and the customs union; the rock hard Brexit we all feared—and no deal. If there is no deal, the Minister confirmed today that the country will face exiting the European Union on WTO terms. What does that mean for the country? According to the director general of the WTO, it would mean a reduction in trade of around £9 billion per annum to the UK. Before the referendum, the Treasury thought it would mean an annual reduction in receipts of £45 billion per year. That was the reduction in GDP it foresaw. It is an eye-watering sum, equivalent to putting 10p on the basic rate of income tax. That is why, above all else, we have to consider where we are going incredibly carefully. If we end up there, it will be a disaster for Britain.

I said earlier that I wanted to speak in favour of amendment 43, tabled in the name of the hon. Member for Westmorland and Lonsdale (Tim Farron), but I would have liked to speak to my new clause 52, or even new clause 131, tabled by the Liberal Democrats, which would both have gone further and insisted on there being a second referendum. Apparently we cannot consider those amendments, however, because they would require a money commitment that the Bill does not have. That is ironic, given that the potential cost of falling out of the EU is £45 billion. Spending £100 million to make sure we do not do that seems like a pretty good deal.

[Geraint Davies]

Amendment 44, to be voted on tomorrow, makes provision for a referendum and valuation that does not need to be costed and therefore is in order, so those who want a second referendum on the final deal can vote for that amendment.

[Owen Smith]

I am pleased with that, and I hope that we will vote on it tomorrow.

I am insisting that we consider a second referendum—a confirmatory or ratificatory referendum, or whatever we want to call it—because I sincerely believe that Brexit will be a disaster for our country, and one that will cost us and future generations in lost trade, revenues and opportunities. I equally believe that it is a disaster for us to be dividing the country on this issue, as we have been, in respect of our values and the other crucial things we hold in concert.

[John Redwood]

Will the hon. Gentleman give way?

[Owen Smith]

I will not. The right hon. Gentleman has spoken a lot already.

It was deeply destructive for us to have engaged in Brexit and unleashed a catalytic force of destructive politics, not just in this country but across the west. It is to my eternal regret that Parliament launched down this route without being sufficiently vigilant or diligent with regard to the risks we faced in the referendum or the nature of the referendum we were offering to the country. It was a profoundly flawed referendum in many ways, and one that many across the House feel could have been dramatically improved with greater scrutiny and care. Why did we not offer that scrutiny? I do not think that many Members on either side of the debate seriously thought we would lose. There was a widespread view that the referendum was agreed for ideological reasons—to solve the culture wars that have raged in the Tory party for 30-odd years—and it was not considered carefully enough.

The House has an opportunity to make amends for the mistake that we—not the people—made. The people voted on the terms and the question we offered them, with the information we provided and on the basis of the 50%-plus-1 margin we put into statute. We have an opportunity to rectify some of those mistakes, and I feel that we should. We should follow the view of the Brexit Secretary when he was on the Back Benches, and, as the hon. Member for Westmorland and Lonsdale said, we should have a final confirmatory referendum.

We had a mandate referendum, the result of which was that we should leave the EU, but we do not know what the terms of that leaving will be. It is perfectly legitimate for us to consider what they might be. It would not be to deny democracy to do that; it would be to double down on it. The problem with simply pushing for a vote in this place on the terms of the deal is that we run the risk of leaving the people doubly dissatisfied. It is perfectly possible for this House to reject the prospect of our falling out of the European Union on WTO terms, because of the costs that will become apparent when we see the extra costs for our car production, for chemicals, for financial services and for all the other things that would see their tariff price rise for export out of this country. It is perfectly possible, as the right hon. and learned Member for Beaconsfield said, that we start to see a change in the country’s views in respect of Brexit when those things happen.