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.