Leaving the EU: Implications for Scotland

Paul Sweeney Excerpts

Tuesday 3rd July 2018 Westminster Hall

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

As always, 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 debate on what is a fundamentally important issue.

We are leaving the European Union—that much is clear. The discussion that we should be having now—although it has not been entirely possible due to the inability of the Tories to come to an agreement in their own Cabinet—is how we leave, on what terms we leave and how we ensure that when we leave, we do not suffer economically or socially as a result.

Before we get into the detail of today’s debate, I would reflect on one thing: if Brexit has taught us anything at all, it is just how difficult it is for the UK to leave a political and economic union that we have been part of for just 40 years. That should be cause for concern for not only Members of the Scottish National party here today, but also the Scottish Government and the First Minister. As the hon. Member for North Ayrshire and Arran said, she and her colleagues have a desire for Scotland to leave a political and economic union that we have been part of for more than 300 years. I can only begin to imagine the difficulties that would be thrown up were people in Scotland to decide that they agreed with that proposition—thankfully, they do not. The SNP’s own confusion over the matter is laid bare by its recent growth commission, which ironically proposes to leave the UK but to surrender all control of interest rates, inflation and capacity to introduce fiscal stimulus in Scotland. What an absurd, worst-of-all-possible situations that would be.

There are three main areas I want to focus on: the constitutional, social and economic implications. It is undeniable that there are constitutional implications for Scotland arising from the decision to leave the EU. The Scottish devolution settlement was written in 1998 and our membership of the European Union is integral to it. A couple of weeks ago, we saw the UK Government shut down debate in the Commons, leaving a mere 15 minutes to discuss devolution. Not allowing one single Scottish Member of Parliament to speak was disgraceful; it showed nothing but contempt, not only for Scottish Members, but for those we represent.

[Stephen Kerr]

Will the hon. Gentleman give way?

[Luke Graham]

rose—

[Mr Sweeney]

I am happy to give way on that point.

[Luke Graham]

But to which one of us?

[Mr Sweeney]

I give way to the hon. Member for Stirling (Stephen Kerr).

[Stephen Kerr]

I point out to the hon. Gentleman that it was the insistence of his Front Benchers on holding 11 pointless votes that led to that 19 minutes of debate. We agree that it was shameful, but it was because the Labour party—his party—insisted on those 11 stupid votes.

--- Later in debate ---

[Mr Sweeney]

I thank the hon. Gentleman for raising that point. It is important that we scotch that myth once and for all—

[Stephen Kerr]

It is not a myth.

[Mr Sweeney]

It is a myth. Labour proposed to extend the time allowed under the programme motion to provide ample time to discuss all the amendments. I tell the hon. Gentleman that all 11 votes were necessary and vital. He might dismiss them as ridiculous, but they were essential.

[Sir Roger Gale (in the Chair)]

Order. I would be grateful if the Front-Bench spokesperson would stick to the subject in hand, which is Brexit and Scotland.

[Mr Sweeney]

On the topic of the Scottish devolution amendment—

[Luke Graham]

Will the hon. Gentleman give way?

[Mr Sweeney]

I am happy to give way.

[Luke Graham]

The hon. Gentleman is making a point about how fundamental the issue is and how important it is for the UK Parliament and for debates in this place. Does he not feel that the strength of feeling in his party is accurately represented by the number of attendees in this debate?

[Mr Sweeney]

It is a matter of logistics. My hon. Friend the Member for Midlothian (Danielle Rowley) was an observer at the Mexican elections and is still in Mexico. The shadow Secretary of State is at shadow Cabinet. Other hon. Members are at the Scottish Affairs Committee. They are all working hard in other forums for the people of Scotland, and the hon. Gentleman’s accusation is entirely unfair.

The Opposition realise that that incident of shutting down debate is not likely to be the only time that Scotland’s voice is shut out of the Brexit talks. It is definitely not the only time we will witness a fight between the UK Government and the Scottish Government. I would be surprised if we did not see the same approach taken by both Governments when it comes to the Trade Bill, the customs Bill, the agriculture Bill and the fisheries Bill. Each and every one of those pieces of legislation will have implications for people in Scotland and for our constituents, and we must not forget that. What people want is not for the Governments in different parts of the UK to be at each other’s throats, arguing about technicalities; they want the Governments to work together in a collaborative, respectful manner and to find solutions to problems. That is why we see the need for a dispute resolution mechanism to be formally agreed. I refer Members to the speech by the shadow Secretary of State for Scotland in this place on 20 June if they are struggling for ideas on what those mechanisms might be.

Constitutionally, we are in this mess because of the Tory Government. Their complete and utter lack of understanding about devolution has been quite astounding and astonishing to witness. From the original drafting of clause 11 of the European Union (Withdrawal) Bill, all the way through to the shutting down of debate, it is clear that they neither care about nor respect people in Scotland.

Moving on to the social implications, in December 2017, 150,000 European Union nationals were working in Scotland—5.7% of all people in employment in Scotland. Some 18,000 of those EU nationals work in the public sector, predominantly in our education system and our national health service, yet it took the UK Government more than a year to guarantee that they would even be allowed to remain in the UK. Even now, we know that they will have to pay £65 a head to stay in their own homes and continue to work in the vital public services upon which we all rely. It is an utter shambles. I ask the Minister a simple question: what happens to our public services if the EU nationals decide that they no longer want to be subjected to this country’s hostile environment and return to their country of origin, because without them, our national health service would crumble and our schools would grind to a halt? Have the Government made contingency plans for every eventuality?

We have not even got to the economic implications of Scotland leaving the EU. I made clear in my opening remarks that the Labour party respects the result of the referendum and accepts that we will be leaving the European Union. That does not mean that we are giving the Government a blank cheque or a free hand to negotiate any kind of deal they see fit. While we accept the result of the referendum, we must now focus on what our relationship with the European Union will look like. We have been clear throughout that the relationship must be a close and collaborative one that affords us the benefits of membership of the single market and also keeps us in a customs union.

There are many Tory Members who want to have a clean break from the European Union, but the Scottish Government’s analysis shows that Scotland could see its GDP fall by 8.5% by 2030 in a no-deal scenario. If Government Members do not like that analysis, they just need to look closer to home: the UK Government’s analysis shows that Scotland could see its GDP fall by 9% in the same timeframe if we have a no-deal scenario. I am not entirely sure what planet Members on the Government Benches live on, but that would be absolutely devastating for the Scottish economy. I cannot for the life of me see how anyone could advocate that as a policy.

I use this opportunity to issue a plea to Scottish Tory Members: it is time for them to stand up and use their leverage on the UK Government to ensure that the madness is stopped, and that we have a reasonable and logical approach to addressing the shortcomings of negotiations as they currently stand with the European Union. We have heard rhetoric about a deep and special relationship with the European Union for more than two years now, but the timeframe we have left amounts to a mere six weeks of negotiating time. I ask the Minister one question: when will we know what the UK Government’s plans are, from an economic point of view? Time is fast running out and the whole country cannot wait until after the Prime Minister’s Mad Hatter’s tea party at Chequers to get some answers.