Leaving the EU: Implications for Scotland

Patricia Gibson Excerpts

Tuesday 3rd July 2018 Westminster Hall

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

I beg to move,

That this House has considered the implications for Scotland of leaving the EU.

It is a pleasure to serve under your chairmanship, Sir Roger. I am delighted to have secured this debate and I thank my colleagues on the Backbench Business Committee for supporting my application. I begin this debate in the hope that we can have a measured, clear analysis of the facts and challenges that lie ahead, which are of material importance to Scotland and her prosperity.

The implications for Scotland of leaving the European Union are profound and significant. First, we need to consider the damaging effect that leaving the EU will have on Scotland’s vital interests both at home and abroad. Nobody can deny that the UK’s governing party is hopelessly divided against itself, as the UK faces arguably the biggest challenge and upheaval since the second world war. The Cabinet speaks not with one voice, but with several confused and contradictory voices. How can it enter into negotiations with the EU and inspire confidence from any quarter?

[Colin Clark (Gordon) (Con)]

Does the hon. Lady accept that almost a third of Scottish National party voters also voted to leave the EU and that, therefore, the SNP is divided on this issue too?

[Patricia Gibson]

That is quite an interesting point. I hope to maintain a respectful dialogue in this debate. I gently remind the hon. Gentleman that the former Tory leader and Prime Minister, John Major, has called the handling of Brexit “bad politics” and a “grand folly” dictated by “ultra Brexiteers”. He has also said:

“Many electors know they were misled”.

How people voted in the EU referendum, therefore, is beside the point. I want to focus on the damage that is being done to Scotland, because a lot of people have watched the unfolding of the Brexit process with horror and alarm.

The UK Government’s own leaked analysis has shown that Scotland’s GDP could face a hit of up to 9%, with analysis from the Fraser of Allander Institute showing that a hard Brexit could cost Scotland up to 80,000 jobs. The final figure could be higher or lower—we have no idea at the moment. The Governor of the Bank of England, Mark Carney, has revealed that Brexit has already cost each household £900.

[Stephen Kerr (Stirling) (Con)]

The hon. Lady makes an excellent point: we do not really know at the moment. That is true of all forecasts in any context. We do not really know. What we need to do, however, is pull together our Governments, countries and peoples, to make a success of what will inevitably happen, given the passing of the European Union (Withdrawal) Act 2018. We are leaving the European Union, therefore we need to work together. No one knows what will happen, but we are responsible for making our own future. We are the masters of our own fate.

[Patricia Gibson]

The hon. Gentleman is correct. We know that until everything is agreed, nothing is agreed. In that context it is hard to make final predictions. I say to him, however, that we have experts whose minds are more academic on this issue than his or mine, and their opinions matter. Independent forecasters, the UK Government’s own analysis, the Fraser of Allander Institute, Her Majesty’s Revenue and Customs, the Economic and Social Research Institute and the National Farmers Union have all expressed real concern about what Brexit means for Scotland. I direct the hon. Gentleman to those sources, not to what I am saying.

[Joanna Cherry (Edinburgh South West) (SNP)]

My hon. Friend is making a powerful speech and she makes the point, which Government Members cannot bear to hear, that business, the trade unions and all of civic society in Scotland are concerned about the impact of Brexit on Scotland. The hon. Member for Stirling (Stephen Kerr) said that we should be masters of our own fate. Does my hon. Friend agree that the whole point of this debate is that the people of Scotland are not masters of their own fate, because they are being taken out of the European Union against their democratic will?

[Patricia Gibson]

My hon. and learned Friend makes an excellent point, which needs no gilding from myself. I wholeheartedly agree. I will come on to the people of Scotland in a few moments.

An HMRC report showed that in 2013-14, European economic area nationals paid £12.1 billion more in income tax and national insurance than they took out in tax credits and child benefit in the UK as a whole. EU nationals working in Scotland contribute an average of £34,000 to GDP. The rights of Scotland’s current EU community must be protected and guaranteed as a matter of principle. One in 25 GPs in Scotland is an EU citizen. Losing them would affect 226,000 patients. Regardless of whether those GPs are allowed to stay in Scotland, the fact is that Brexit has created something of a hostile environment for those who choose to live and work in the UK. That may create challenges with retaining EU citizens across the UK, who have contributed so much to our communities. Although not necessarily a large sum for some of our EU citizens, asking them to pay £65 per person—the principle of asking people to re-subscribe to their own lives in a country where they have already contributed so much—is something that shames the Government and us as a society. It should be scrapped.

[Christine Jardine (Edinburgh West) (LD)]

I agree with the hon. Lady that we are asking EU citizens to do something unthinkable. Many of them have paid tax and national insurance in this country. If the SNP is so opposed to what is happening, why does it not back the people’s vote, or be straight with the people of Scotland that it is just trying to churn up the argument for independence? It should be straight with the people and tell them that, or back the people’s vote.

--- Later in debate ---

[Patricia Gibson]

Sir Roger, you will forgive me for tittering when a Lib Dem asks me to be straight with the people. We in the SNP are absolutely straight with the people of Scotland, who are waking up to the fact that they have been misled. You do not need to take my word for it; you just need to speak to John Major, your former leader and Prime Minister, who openly says that the people have been misled over Brexit. Of course, the people of Scotland were not misled, because we voted overwhelmingly to remain in the EU, but that appears not to matter to the constituents that you represent.

[Joanna Cherry]

Does my hon. Friend agree that the Liberal Democrats and the Conservatives conveniently choose to ignore the fact that the majority of Scottish voters in 2016 voted for Scottish political parties that said they wanted to hold another independence referendum in the event of Scotland being taken out of the EU against its will? Whether they like it or not, there is a mandate in the Scottish Parliament for that second independence referendum. It is time that they respected the democracy of that vote.

[Sir Roger Gale (in the Chair)]

Order. I ask hon. Members to confine interventions to the length of a proper intervention and not to make speeches.

[Patricia Gibson]

I will simply respond to my hon. and learned Friend by saying that that is why the Lib Dems are increasingly irrelevant in UK and Scottish politics.

[Stephen Kerr]

Will the hon. Lady give way?

[Patricia Gibson]

I will make some progress. We in the SNP believe that the Government should negotiate to stay in the single market and the customs union, not least to protect the exchange of citizens’ rights between the EU and the UK.

Another area of huge concern is the importance of the single market and the customs union to protecting our social, trade and investment partnerships with EU businesses and Governments. The Scottish Government’s impact analysis has shown that a failure to remain in the single market and the customs union, or to secure a free trade agreement, would see Scotland’s GDP around £12.7 billion lower by 2030 than it would be under continued EU membership. That would mean a loss equivalent to £2,300 per person in Scotland. In addition, the impact analysis shows that a so-called Canada-type deal with the EU would still leave Scotland’s GDP £9 billion lower by 2030, or £1,610 per head.

Scotland’s food and drink exports have reached £6 billion—the highest level ever—with the EU being the largest market. However, the Economic and Social Research Institute reported that a hard Brexit would result in up to a 90% fall in exports to the EU from Scotland. Those are important voices from industry, and everybody who cares about Scotland’s economic prospects should listen to them. A hard Brexit would leave the UK isolated on the world stage and expose the country to a regulatory race to the bottom, compromising our trading relationships and consumer standards.

The right hon. Member for Witham (Priti Patel) has said that Brexit was an opportunity for widespread deregulation. The Foreign Secretary has said, “Scrap social Europe”. Daniel Hannan, a Tory MEP, said that all contracts between employers and employees should be “free contracts” with no statutory protection. There is no question but that Brexit will see a bonfire of British workers’ rights, given that those words come from the governing party. I do not claim to speak for the people of England, and nor should I, but we in Scotland are alarmed by those comments, which go against the values and beliefs that the people of Scotland hold dear.

The Secretary of State for International Trade is on the record as being “relaxed” about the diminution of food standards post Brexit, although the Secretary of State for Environment, Food and Rural Affairs has said he is opposed to it. The Prime Minister simply responded that the questions were “hypothetical”. Food standards that are currently banned across the EU may become permissible in the UK post Brexit, which precipitates concerns about the proverbial race to the bottom. More relaxed standards have implications for animal welfare and raise potential environmental and public health concerns. Will Scotland really have to endure such standards post Brexit? Is that what was meant by taking back control?

The UK will seek to pursue new trade deals, particularly with the US. Since we already know that procurement and public contracts are important objectives for the US in negotiating a trade deal, as demonstrated by the Transatlantic Trade and Investment Partnership negotiations, Scotland’s public services are at risk of being bargained off in new agreements. For the people of Scotland, that is simply unacceptable. Hon. Members across the House will know that, because they, too, will have received countless emails from constituents about it. If any hon. Member in the Chamber has not received any emails about the issue, they should feel free to intervene now.

A growing number of people in Scotland are bewildered. In Scotland, we had a referendum on EU membership, which there was no evidence that Scotland wanted. We in Scotland voted to remain in the EU by a convincing majority, but we are now being removed against our will from a family of nations of which we wish to remain part. To add insult to injury, Scotland’s voice in the UK negotiations has been summarily ignored. We all witnessed the farce on 12 June. Despite the implications of Scotland being dragged out of the EU, we were allocated a mere 19 minutes. Not one Scottish MP from any party was permitted to speak and there was no protected time for the debate. We witnessed an unprecedented ripping up of the devolution settlement, with Scotland’s voice silenced.

[Luke Graham (Ochil and South Perthshire) (Con)]

On timing, does the hon. Lady recognise that in this Parliament, we have spent 252 hours debating Brexit, and we will spend several more, whereas the Scottish Parliament has spent only 25 hours on legislation that was rushed through on an emergency basis? It is not right for her to take a high hand when it comes to time.

[Patricia Gibson]

The hon. Gentleman may not be aware of this, so I will enlighten him: Scotland did not vote for Brexit and the Brexit negotiations are being carried out by the UK Government. They are therefore duty-bound to allow Scottish MPs, who represent people who did not vote for Brexit, proper time to debate the implications of Brexit and the fact that the devolution settlement has been torn up, about which he appears to have no concern.

Let us be clear: in the democratically elected Scottish Parliament, every single party save the Tories—the SNP, the Liberal Democrats, Labour and the Greens—voted overwhelmingly against repatriating powers to London, by 95 votes to 32. During the Standing Orders debate in the Commons Chamber on 13 June, I was stunned to hear Scottish Tory MPs dismiss that lack of legislative consent—that power grab—by saying, to paraphrase them, “What does it matter? It is only powers over this, that or the other.” They may say that, but when you ignore the entire concept of consent and ride roughshod over democratic institutions elected by the people of Scotland, to which the Tory Government in Westminster have not listened, you do so at your peril.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

On the issue of a power grab, last week the Scottish Government and the First Minister attempted a Government reshuffle, which created the biggest Scottish Government in history and reflects the Scottish Government’s expanding power base. How can the hon. Lady claim there has been a power grab when there are more Ministers and Cabinet Secretaries in the Scottish Government than ever before, and when 80 new powers are coming to the Scottish Government after Brexit?

[Patricia Gibson]

It is interesting that a Tory Member is concerned about the expanding public purse in these times of austerity and the expanded Scottish Government. That is good. Perhaps he should take up those concerns with the ever-expanding, dripping roast that is the House of Lords. I am sure that the Prime Minister would be happy—

[Several hon. Members rose—]

[Patricia Gibson]

I am dealing with this intervention—one at a time! The hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont) will find that the Prime Minister’s Cabinet has also expanded as she tries to hold together an unholy coalition of Brexiteers and people with a bit of sense, of whom there are increasingly few in the Cabinet.

[Stephen Kerr]

I have a simple question for the hon. Lady: if there has been a power grab, why did Nicola Sturgeon expand her Cabinet? Is it not factually correct that it was because there are new powers now and there are new powers coming?

[Patricia Gibson]

It is that kind of attitude that has seen my party’s membership soar by 10,000 people in a short period of time. The hon. Gentleman says “if there has been a power grab”, which suggests there has not been one—[Interruption.] If you make an intervention, you have to let me answer. That is how the game works. It appears that this is a game for some people, but it is about your country of Scotland and the people you represent. If you let me speak, we might get somewhere.

To dismiss the fact that there has been a power grab shows a breath-taking contempt for devolution and the Scottish Parliament. Under the Scotland Act—

[Christine Jardine]

Will the hon. Lady give way?

[Patricia Gibson]

Can I finish my point?

[Stephen Kerr]

You’re in charge.

[Patricia Gibson]

It doesn’t stop people shouting.

[Joanna Cherry]

Get some manners.

[Patricia Gibson]

They are really lacking. You do not get this in the Scottish Parliament, Sir Roger.

The hon. Member for Stirling (Stephen Kerr) should go back and look at the devolution settlement. Anything that is not reserved is devolved, and should correctly come back to the Scottish Parliament. When you start to ignore legislative consent, which has served that Parliament well for the 20 years it has existed, you cross a Rubicon and get to a point where you do what you like and ignore the Scottish Parliament anyway. I do not think that treats the sovereign people of Scotland with respect.

[Christine Jardine]

Will the hon. Lady give way on that point?

[Patricia Gibson]

I will make some progress.

Holyrood is not Westminster. In Scotland, sovereignty lies with the people of Scotland. Under the constitutional rules, the Government should not proceed with any measure that affects Scotland without the Scottish Parliament’s consent. For the record—there has been some perhaps wilful confusion about this—the kind of powers being clawed back by Westminster are in 24 areas where they want to retain power in the wake of Britain’s exit from the EU, including agriculture, fisheries, food labelling and public procurement. Public procurement is interesting, because that could constitute an attack on our public services. I have listened to Scottish Tory MPs rubbishing concerns about those powers being clawed back as though they do not matter, as we have heard today. They do matter and anyone who doubts it only has to look at the SNP’s soaring membership after the power grab was brought to public attention, as I have already said.

The SNP has been accused of effectively trying to veto Brexit. However, legislative consent was withheld by every party save the Tories, so the argument—

[Christine Jardine]

Will the hon. Lady give way?

[Patricia Gibson]

I am in the middle of a point.

The argument that it is some kind of SNP plot simply does not wash. Let there be no mistake: the Scottish Government and the Scottish Parliament recognise that there may be times—this is the point that Conservative Members really have to listen to because I have heard them rubbish this in the past—when UK-wide frameworks are required post Brexit and when they would be in Scotland’s interests. However, the way to achieve such frameworks is through negotiation. That is what a statesman or stateswoman would do; that is grown-up politics. Achieving UK-wide frameworks should not be achieved by strangling the voice of those who were democratically elected to speak for Scotland.

The stand-off that we have is in no one’s interests and that is why it is important to bring forward emergency legislation to remove section 11 from the European Union (Withdrawal) Act 2018. Devolution cannot operate on the terms of grace and favour. To take powers restricting the competence of Holyrood and to exercise those powers in the face of an explicit decision by Holyrood that they should not be exercised is, whatever way you look at it, a power grab.

Under devolution, that which is not reserved is devolved—it is as simple and as important as that. Make no mistake: this process is about being able to adjust the terms on which devolution operates through delegated legislation without the consent—and even against the wishes—of the Scottish Parliament. I am fleetingly reminded of the fact that we were told how important it was to have English votes for English laws. I wonder when we will have Scottish votes for Scottish laws.

Many who are hostile to the Scottish Parliament have tried to dismiss the concerns that it has raised about a hard Brexit and Scotland’s voice being silenced as a ploy to promote independence, but that is not the case. This is about something, Sir Roger, that some people in this Chamber would do well to remember—it is about standing up for Scotland, and it is supported even by those in the Scottish Parliament who do not support independence and who are not yet convinced of the case for independence.

[Christine Jardine]

rose—

[Patricia Gibson]

I am finishing up.

I say today that those who value the Union should beware the next referendum on Scottish independence—and it will come—because the debate has crystallised. [Interruption.] There is chuntering from a sedentary position, Sir Roger. The debate has crystallised like never before. The people of Scotland will be asked simply, “Who do you trust most to govern in the best interests of Scotland: Westminster or Holyrood?”. Given what we have witnessed over recent weeks and months, it does not take too great a leap of the imagination to guess what the answer will be from the people of Scotland.

The matters that we are discussing today are not just about Brexit or devolution or Scotland’s economic interests; they are ultimately about trust. Every day, this Tory Government demonstrate just a little bit more that they cannot be trusted by the people of Scotland. We are not the “valued and equal” partners we were told we were when we were love-bombed during the 2014 referendum campaign, and the people of Scotland know it. I urge all who care about Scotland to be her voice now and to stand up for her interests. The people of Scotland are sovereign and will not have their voices overridden by Westminster without consequence. Dismiss them at your peril.

[Sir Roger Gale (in the Chair)]

Before we proceed, I understand that in the Scottish Parliament, it is—[Interruption.] Order. I understand that in the Scottish Parliament, it is customary to use the word “you” when referring to another Member. In the Westminster Parliament, “you” refers to the Chair. The Chair has no responsibility for party political matters, so I would be grateful if all hon. Members respected that convention.

We have six Members seeking to make contributions. It should be possible to accommodate everybody, provided that a degree of self-restraint is exercised. That is in your hands, not mine.

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[Colin Clark]

I thank the hon. Gentleman very much for that question; I absolutely respect that point, and I covered it in the first line of my speech. People voted to stay in the United Kingdom, and we had a United Kingdom vote in the European Union referendum.

[Patricia Gibson]

rose—

[Colin Clark]

I will make some progress.

The Scottish people now expect politicians to carry out their wishes. I was disappointed to hear the hon. Member for North Ayrshire and Arran take quite such a negative tone. Nobody on the Government Benches is denying the challenges that surround our exit from the EU, nor are we naive to the scale of the work still to be completed, and much work has been done.

However, the situation is not doom and gloom—far from it, in fact. Done correctly, Brexit can provide many exciting opportunities for Scotland. Overnight, the Scottish Parliament will become considerably more powerful as a result of our exit from the EU. Sovereignty and control over our own laws was a major driver of the leave vote, and I am delighted that the Government, through the European Union (Withdrawal) Act 2018, have already taken steps to bring powers home to the United Kingdom. Brexit will give us the opportunity to bring decision making closer to people, not only through Westminster but through the devolved institutions in Edinburgh, Cardiff and Stormont.

[Patricia Gibson]

As the hon. Gentleman was speaking, one thought occurred to me that I would like to ask him about, because I am sure he has thoughts on it. He talked about the importance of respecting democracy, and I am sure we all agree with that, but does he share the concerns that many in his party have about the lack of transparency regarding the funding for the EU leave campaign, the dirty money that appears to have been involved and the lack of ability to trace the source of that money? Does he have any concerns about how that might have influenced the result?

[Colin Clark]

I thank the hon. Lady for the question, but I have an absolute respect for the institutions of this country, including the Electoral Commission, which will investigate funding, whether in Scottish elections or the EU referendum. I will respect its findings, because I have respect for UK institutions.

On day one after exit, more than 80 new powers will go directly from Brussels to Edinburgh—80 areas in which Scottish politicians can make decisions in the best interests of the Scottish people. The UK Government have rightly confirmed that they will presume devolution for all returning powers, meaning that only in exceptional circumstances will powers be temporarily held at UK level so that we can have some sort of framework, which Scottish industry and United Kingdom industry want. I believe that to be sensible and pragmatic. The UK Government travelled a significant distance from their original proposal, and we are now in a place where we can guarantee that Brexit will be to the advantage of the devolution settlement.

Of course, another upside of leaving the EU will be the ability to send more Scottish goods out to new markets, as we take control over our trade and chart a new course in the world. Scottish economic growth has been driven by exports, and the north-east of Scotland, where my constituency is located, is the largest exporting region in Scotland. In 2015, total exports from the north-east amounted to more than £8 billion—21.3% of total Scottish exports, in an area with 8% of the population. Leaving the EU will allow our exporting businesses to reach new markets and customers, and to grow those numbers further.

The hon. Member for North Ayrshire and Arran mentioned the food and drink sector and agriculture. It is a significant part of the north-east’s economy. It directly employs 22,000 people; 51% of those jobs are in agriculture, and a further 11% are in fishing. Leaving the EU will bring huge benefits to those people. We can finally design an agriculture policy that works for Scotland, and it will not be a DEFRA-centric, top-down policy. It will be a policy set by the Scottish Government for the unique needs of Scottish farmers—Members can see from my entry in the Register of Members’ Financial Interests that I am one myself.

Fisheries policy will also escape the clutches of the EU, and I am delighted that we are already having conversations on that. It is amazing that the Scottish Government wish to receive powers and then immediately hand them back to the EU, particularly on the common fisheries policy, which would not go down well in our fishing communities.

Leaving, therefore, provides opportunities and hope to some of Scotland’s key industries. It will allow us to be part of an internationalist United Kingdom and to embrace new trading opportunities.

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[Stephen Kerr (Stirling) (Con)]

There is a Scottish comedic character, made famous by Rikki Fulton, by the name of the Reverend I.M. Jolly. He is famed because he is miserable. He can never bring himself to be upbeat, positive or optimistic. I am afraid that that caricature is one that the SNP seems to have voluntarily adopted. It is being so cheerful that keeps it going. It fits the SNP’s narrative to spread doom and gloom and to talk down our country’s future. As a Scottish Conservative, I insist that our best days lie ahead of us as part of the United Kingdom, the world’s most successful political and economic union.

The SNP wants to create an air of constitutional crisis, but Scotland is not buying any of that talk, and people are sick and tired of the SNP’s obsession with a second independence referendum. Keith Brown MSP, who was sacked last week by Nicola Sturgeon as Cabinet Secretary for the Economy, was only recently elected deputy leader of the SNP. He now claims to be focusing all his energy on building up readiness for a campaign for a second independence referendum as early as next April. Yet at the weekend Andrew Wilson, the former MSP who produced the so-called growth commission report, the SNP’s blueprint for independence that promised only a generation of misery, said that he was interested only in the softest possible form of independence—presumably in name only. He recognised that people in Scotland were not interested in another independence referendum.

[Patricia Gibson]

The hon. Gentleman is once again trying to make this out to be some kind of SNP plot. What are his views on the fact that the SNP, the Labour party, the Greens and the Liberal Democrats in the Scottish Parliament also withheld consent for Brexit? Are they involved in the SNP plot?

[Stephen Kerr]

I can only imagine that Scottish Labour and the Scottish Liberal Democrats regret deeply ever getting into any kind of alliance with the Scottish National party, but it is not for me to speak for them.

What is important to Scotland and Scottish business? Liz Cameron, the chief executive of the Scottish Chambers of Commerce, has said:

“The ability to trade freely between the constituent parts of the UK without additional compliance measures is absolutely vital to a large proportion of businesses, and we need to see both Governments co-operating and making decisions together, enabling the private sector to create jobs and grow the economy.”

To underline the importance of the UK single market to Scotland, it cannot be said too often that Scotland exports four times as much to the rest of the United Kingdom as it does to the EU. That is £46 billion going to the UK, and only £12 billion going to the EU. No one on the Government Benches is saying that trade with the rest of the European Union is not important—it is vital—but just because we are leaving the European Union does not mean that we are going to cease trading in any scenario. Other countries that are outside full EU membership, the single market and the customs union trade successfully with countries that are members.

We need to forge a new, deep and special relationship that is founded upon the principles of free and fair trade. That will inevitably include an arrangement on customs. Only in the minds of the obsessive and negative SNP is the answer to leaving the EU to break up a Union that is four times more valuable to Scotland. As my hon. Friend the Member for Gordon (Colin Clark) said, just last week we saw that UK exports to India have grown by 31% year on year. That is just a sample of what we can achieve once we leave the EU in March 2019 and have the chance to strike our own trade deals. He also mentioned the Scotch Whisky Association and the opportunity there. In India, Scotch imports account for just 1% of total whisky consumption. There are massive opportunities.

Brexit is seen by too many as only being a challenge. We see it as an opportunity too. Leaving the EU will give more powers to Holyrood and Westminster, yet we have seen little imagination and creativity at Holyrood on how the powers will be used. Indeed, the Scottish nationalists would rather see those powers kept in Brussels. As was said earlier, why on earth would Nicola Sturgeon reshape her Cabinet and add Ministers if it was not to handle increased powers? Leaving the European Union needs to be treated as an opportunity.

In closing, I will quickly mention one thing. If there is one area of professional activity that can change the productivity landscape and enhance our prospects as a nation exporting to the world, it is sales productivity. We need to uplift our commercial proficiency and effectiveness in professional sales and be a nation that values its salespeople. I feel strongly about that. A few weeks ago I had the privilege of welcoming the Secretary of State for International Trade and his ministerial team to Stirling, alongside the Secretary of State for Scotland and other Government officials, for the first meeting of the UK Board of Trade in Scotland for hundreds of years. A reception was held that evening in the great hall of Stirling castle. The room was abuzz with anticipation and excitement for the export opportunities that lie ahead for businesses in my constituency and throughout Scotland as we leave the European Union.

In Stirling we have some fantastic businesses that are ready to take up the challenge and the new opportunities, including Fallen Brewing, which I will be visiting later this week. This brewery in the town of Kippen has been exporting across the UK, and like so many other local businesses, it needs only the slightest encouragement to push into the significant overseas markets for British beers. A great national effort is required to sell our products and services around the world. To summarise, I believe that Scotland’s professional sales talent and capability will be key to a prosperous post-Brexit global Britain.

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[The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Robin Walker)]

It is a pleasure to serve under your chairmanship, Sir Roger. I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson) on securing this important debate. It is an important opportunity to reflect on a wide range of matters relating to EU exit and the implications for Scotland. I congratulate my many hon. Friends who have contributed powerfully to the debate, as well as those who have spoken from parties across the House.

I turn first to our negotiations with the European Union. The Government are clear that we want a deal that works for the whole United Kingdom. We have built on the significant progress we made in March by locking down the text of the majority of the withdrawal agreement. Taken with the agreement that we reached in March on the implementation period—something that Scottish businesses have been very clear in meetings with me that they want to see—on citizens’ rights and on the financial settlement, we have now reached agreement on many of the most important issues. That provides certainty for businesses and individuals across the UK, including in Scotland.

The hon. Member for North Ayrshire and Arran spoke passionately about the impact on EEA nationals. As my hon. Friend the Member for Ochil and South Perthshire (Luke Graham) pointed out, we have reached agreement on the crucial areas of citizens’ rights. The agreement is fully reciprocal between the UK and the EU. The Prime Minister has said consistently to those people that we want them to stay. We have now reached an agreement that means that we are providing the certainty and the mechanism for them to stay.

[Patricia Gibson]

Whether an agreement has been reached or not, the point is that the hostile environment that has been created will drive EU citizens, who contribute so much to our communities, to simply leave the UK. Does the Minister not accept that that is an issue and that there is evidence of it?

[Mr Walker]

I disagree with the hon. Lady completely. I think the environment has been welcoming. The Prime Minister’s own words were that we value the contribution of EEA citizens to the UK and we want them to stay—she has repeated that time and again.

The hon. Member for Glasgow North East (Mr Sweeney) referred to 150,000 EU citizens who work in Scotland. Just like with those who live in my own constituency, we want them to stay and we want them to enjoy the same pensions, healthcare and social security benefits. We have reached agreement on the legal text to ensure that that will be the case. The Government will continue to work closely with the devolved Administrations to ensure that the future arrangement for co-operation with the EU in this area takes account of the distinct justice systems in Scotland and Northern Ireland, and delivers legal certainly and clarity for everyone in the UK.

I listened closely to the points made by the hon. and learned Member for Edinburgh South West (Joanna Cherry). My Department and the Home Office have engaged with the Scottish Government on security and judicial co-operation, and we routinely share papers with the devolved Administrations prior to publication. Indeed, we discussed civil judicial co-operation with them last week at the second meeting of the ministerial forum, which I will return to in a moment. We recognise that Scotland and Northern Ireland have distinct legal systems, and that the Scottish Government engage directly with EU agencies such as Europol.