(6 years, 9 months ago)
Commons ChamberI agree absolutely with my hon. Friend. On the automotive sector, we know that a WTO-based Brexit would add 10% to the cost of every car we export to the EU. What is more, given the complex, integrated supply chains the automotive industry relies on, there would be tariff and non-tariff barriers on every component that crosses the border. The result would indeed be catastrophic.
The EFTA court exists as a sovereign body. It of course takes some of its guidance from the European Court of Justice. Nevertheless, were the UK to have judges on the EFTA court body, it would clearly have extra clout and the ability to exercise its sovereign right to interpret the guidelines that come from the ECJ in such a way that suits the membership of EEA and EFTA.
Is not the critical issue that many courts may choose to follow decisions of those with similar jurisdictions? Our courts have historically done that, but with the decisions of common law courts. The EFTA court, however, is institutionally separate from the ECJ and therefore not subject to its direct jurisdiction—is that not the important distinction?
The hon. Gentleman hits the nail on the head. I would add that EU member states are required to refer rulings to the ECJ, whereas EEA-EFTA states are not required to refer rulings to the EFTA court. This is a vital distinction, because it has significant implications for the functioning of the two markets. The EU single market is predicated on the treaty of the European Union, with its commitment to ever closer union. The EEA, however, is governed by the EEA agreement, article 1 of which states that the aim of the EEA is to:
“promote a continuous and balanced strengthening of trade and economic relations between the Contracting Parties”.
The fundamental differences between the founding mission of the EU and the founding mission of the EEA mean that for the EU the four freedoms are indivisible, whereas for the EEA they are negotiable. This, in turn, means that the EEA membership would allow a post-Brexit Britain to square the circle between market access and sovereignty when it comes to that most thorny of issues, the free movement of labour.
(6 years, 9 months ago)
Commons ChamberThe hon. Lady makes a good point. I refer her to our future security paper, which makes clear our interest in co-operating on these matters. This House takes children’s rights extremely seriously and we will ensure that we establish the best approach to them in both the negotiations and our own domestic law.
Since the creation of our Department a year ago, my colleagues and I have engaged widely with the financial services industry and others with a stake in London’s euro clearing market. We have received representations from, and had meetings with, a wide variety of stakeholders, including UK Finance, TheCityUK, the Association of Foreign Banks and the Investment Association, and we will continue to do so.
Because of our current ability to access European markets, the London financial services sector processes transactions worth about £880 billion every day. For context, that is about 100 times our net annual contribution to the EU, and about 15 times the highest sum that has been spoken of as a potential financial settlement. Against that background, does not my hon. Friend agree—
Order. I am glad that the question mark is coming. Questions are terribly long-winded today; it really is very poor. Anyway—blurt it out, man!
Against that background, is it not imperative that we secure a deal on leaving the European Union that will protect access to European markets for our financial services?
My hon. Friend draws attention to the huge importance of the global financial centre in London to the whole of Europe. The Government are well aware of the importance of financial services market access. Our access brings benefits to businesses and customers across the UK and Europe, and we are determined to maintain the City’s competitiveness now and into the future. That is why we are working closely with the Treasury to ensure that we have the strongest possible offer on reciprocal market access in this space.
That work is currently ongoing. Departments have set out that, together, they will expect to introduce between 800 and 1,000 statutory instruments in order to carry forward the degree of certainty and continuity that we expect to deliver through the repeal Bill. In due course we will of course put all those instruments before the House.
The president of the European Free Trade Association court will visit London later this month. Will my right hon. Friend the Secretary of State take that opportunity to explore with him the potential that that court might offer a means of resolving potential legal disputes and other matters of resolution in a transitional future arrangement?
Actually, I have already met the president of the EFTA court. He has come to see me before and is a very—how can I say it?—enterprising individual who I think wants to get more business for his court. We will of course look at all options. I do not think the EFTA court is likely to be the one that we land with, but when we go through the whole question of arbitration mechanisms, which we will need to have, we will of course look at all options.
(6 years, 11 months ago)
Commons ChamberI was grateful to the Secretary of State for referring specifically to the progress made on civil and commercial law co-operation. Does he agree, however, that it is imperative that there is early clarity on one specific area—whatever the final outcome of negotiations, there should be early clarity on reciprocal recognition and enforcement of judgments and court orders? Unless that happens, firms will not be willing to enter into contracts for any period that runs over either the date of leaving or any of the likely transition periods that have been posited so far. It would be in both sides’ interests to have that.
(7 years, 4 months ago)
Commons ChamberMy constituents in Bromley and Chislehurst welcome the emphasis given to financial services, our largest employer. Does the Secretary of State also recognise that financial services are important to the Crown dependencies, which require protocol 3 access, which will be lost upon our leaving the EU, and also to the British overseas territory of Gibraltar? Will he make sure that those two key areas also get the full benefit of our ambitious free trade deal?
(7 years, 4 months ago)
Commons ChamberThe hon. Gentleman should know better. The Leader of the House, who was previously a Europe Minister, was here and he made it clear, in terms, that the Prime Minister was talking about the fact that existing treaty arrangements, which will end when we leave the European Union, will fall by the wayside, so we will have to find an alternative—not our internal legal rights and privileges, but the treaty arrangements. That is the important thing.
I very much welcome the pragmatic approach that the Secretary of State has adopted in this document, and particularly his emphasis on legal certainty and continuity, which we all know is vital for continued business confidence and is something the Select Committee on Justice report emphasised. Does he agree that it will be important to maintain the mechanism for ensuring continuing regulatory equivalents, not only in data protection but in important areas such as the financial and other service sectors? How might that be taken forward?
(7 years, 5 months ago)
Commons ChamberAbsolutely. I assure my hon. Friend that we remain committed to preserving the rights of Irish citizens within the UK. Irish citizens have had special status within the UK since well before the establishment of the EU, and that is rooted in the Ireland Act 1949 and reflected in British Nationality Acts. That status provides Irish citizens in the UK with additional rights beyond those associated with common membership of the EU. The family ties and bonds of affection that unite our two countries mean that there will be always be a special relationship between us.
The Crown dependency of the Isle of Man has strong links with Northern Ireland, the Republic, and the rest of the United Kingdom, and when the Justice Committee met representatives of its Government, their No. 1 ask was to ensure that it remains a part of the common travel area between the three. Will the Minister reassure them and us on that point?
Absolutely. We greatly value the work of my hon. Friend and his Committee on such issues and look forward to reading the report of his inquiry into the implications of Brexit for the Crown dependencies. The Crown dependencies, including the Isle of Man, have been part of the common travel area for nearly 100 years, and we are committed to preserving that arrangement. We set out in the White Paper that we will work with the Crown dependencies, as well as with Ireland, on improving the CTA.
We have had such discussions. The right hon. Gentleman is right to say that we need an adequate supply of skilled labour in this country, and the Home Office is working on policies that will achieve just that.
The UK legal services sector is worth some £21 billion to our economy. A good percentage of that comes from legal services provided into the European Union. Will my right hon. Friend meet the Bar Council and the Law Society to discuss what they need to retain access to that key market?
The short answer is that the Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Worcester (Mr Walker), has already met them, but we will do so again. This is a very important sector. People sometimes underestimate the size of the general services sector, which is as big as the City. We have to keep that in mind.
(7 years, 6 months ago)
Commons ChamberI recognise the strength of that point. There are of course other opportunities to examine what has been conceded, and to ensure that it might find its way into the Bill. I think it would be sensible to recognise the significance of what has been said, hear a little more detail if we can, and reflect on that during the course of the afternoon. Of course, the Bill does not complete its passage today, or in this House.
The hon. and learned Gentleman is making a fair point. I think he and I would accept, as advocates, that if somebody says something to us in good faith, we take it on board, bank it, and sometimes do not push too hard—we take a valuable concession and recognise it for what it is.
I am grateful for that intervention. When an assurance is given in a debate such as this, it is a significant assurance. That said, of course having something in statute at some later point would be even better.
I agree fully with the right hon. Member for Gordon (Alex Salmond) that we should not wish to do anything that weakens or undermines the British bargaining position. All the efforts of this House, as we try to knit together remain and leave voters, should be designed to maximise our leverage, as a newly independent nation, in securing the best possible future relationship with our partners in the European Union. That is why I find myself in disagreement with many of the well-intentioned amendments before us today. I think they are all, perhaps inadvertently, trying to undermine or damage the UK’s negotiation—[Interruption.] One of my hon. Friends says, “Nonsense,” but let me explain why it would be dangerous to adopt the amendments.
We are being invited to believe that if the House of Commons decided that it did not like the deal the Government negotiated for our future relationship with the EU and voted it down, the rest of the EU would immediately say sorry and offer us a better deal. I just do not think that that is practical politics. I do not understand how Members believe that that is going to happen. What could happen, however, is that those in the rest of the EU who want to keep the UK and our contributions in the EU might think that it would be a rather good idea to offer a very poor deal to try to tempt Parliament into voting the deal down, meaning that there would then be no deal at all. That might suit their particular agenda.
Why is my right hon. Friend so worried about the House of Commons having a vote? His analysis might be right, but is it not right and proper that we have a choice, informed or otherwise? What is wrong with that? Why is he scared?
I support the Government offering this House a vote. They cannot deny the House a vote—if the House wants to vote, the House will vote—but it is very important that those who want to go further and press the Government even more should understand that this approach could be deeply damaging to the United Kingdom’s negotiating position. It is based on a completely unreal view of how multinational negotiations go when a country is leaving the European Union. I find it very disappointing that passionate advocates of the European Union in this House, who have many fine contacts and networks across our continent, as well as access to the counsel and the wisdom of our European partners, give no explanation in these debates of the attitudes of the other member states, the weaknesses of their negotiating position and what their aims might be. If they did so, they could better inform the Government’s position, meaning that we could do better for them and for us.
My hon. Friend is providing a careful and interesting analysis, but is not the crux of the matter this: if at the end of the day there is no deal and we are forced to leave, perhaps on WTO terms, which many of us believe will be deeply damaging, it will be a scandal if this House does not have the chance to have a say on it? It will be a betrayal. Those who might not support new clause 110 today hope that perhaps the Lords will look more carefully at this, as, for many of us, the Government are on very borrowed time.
I pay tribute to my hon. Friend the Chair of the Justice Committee and I agree that there should be a vote. The challenge is that I have not really heard anyone explain an alternative negotiation strategy to the one advanced by the Government, other than staying indefinitely in some limbo within the EU. That would create more uncertainty for business and greater frustration for the public, and it would devastate, paralyse and eviscerate our negotiating hand.
(7 years, 6 months ago)
Commons ChamberLike my Conservative colleagues, I stood in the general election on a manifesto that promised an in/out referendum and promised to respect the result. I campaigned hard before the referendum for this country to stay in the European Union. It pains me that my side lost, but honour and decency bind me to the pledge I made before the referendum, and I will vote to support the Government tonight.
That said, it is also my duty to my constituents and to the country, as it is for all of us, to make sure that we get the best possible outcome thereafter. To my mind, that means the following. First, in my constituency, some 35% of people work in the financial and professional services sector. That is one of the highest percentages anywhere in the country. It is critical that that key economic interest of the United Kingdom be central to our negotiating objectives. In my judgment, it should not be regarded as secondary to anything. If we have to, we should be prepared to make pragmatic compromises to secure the welfare of that key economic sector.
Secondly, we should not forget the interests of our territory of Gibraltar. It does not have anyone to speak for it here, but I shall take the liberty of doing so. Its economy must be protected and its border flows must be uninterrupted and free. Thirdly, we must make sure that our parliamentary sovereignty is real. We are acting in accordance with the process set down by our highest courts, where the judges acted in accordance with their judicial oaths and constitutional duty. That should be accepted, and they should be commended for having done so. That means that Parliament must now be prepared to have proper control of the process.
I welcome the commitment to publishing the White Paper, and I accept the words and good faith of the Prime Minister and the Secretary of State for Exiting the European Union, but there are two other things we must do. First, it is very important as we go forward that Parliament has the maximum information available to it. In particular, it would be quite wrong if Parliament at any stage had less information than our European counterparts. Secondly, the pledge of a vote in both Houses on the final deal must be a meaningful one. That means it must be a vote before the deal is put to our European counterparts for ratification, otherwise it will be a Hobson’s choice of little value. I hope that Ministers will reflect very carefully on those key points as the Bill makes progress through the House.
(7 years, 8 months ago)
Commons ChamberIt is a pleasure, as always, to follow the hon. Member for Foyle (Mark Durkan). As a Unionist, I share his concern about the need to ensure that whatever arrangements we make will protect and safeguard the Good Friday agreement, the position of Northern Ireland and our relationships with the Republic. As Chairman of the Justice Committee, I also think it is important for us to take account of the position of the Crown dependencies, including the Isle of Man, which has a particular economic relationship with both Northern Ireland and the Republic.
It is no secret that I campaigned and voted to stay in the European Union, and I still believe that that would have been the better outcome. I regret the decision that the majority of the British people took. However, as a democrat, one must live with decisions that one may think were ill-advised. The majority decided otherwise, and we must respect their decision. For that reason, I have no problem with voting for the Government amendment, but neither would I have a problem with the Labour party’s original motion. Let me explain why.
It is perfectly reasonable and sensible to have a plan. Having made a decision, we now need to remove ourselves from the European Union in an orderly fashion, and that requires a high-level set of objectives. It certainly does not mean giving away every bit of the detail of our negotiating tactics on the day. I have complete faith in the ability of the Secretary of State and his team—especially given the Secretary of State’s business background—to handle those matters pragmatically, and pragmatism is, I think, the most important consideration. At the end of the day, the British people voted to leave the European Union, but they did not vote to do so on terms that would make them materially worse off. It is therefore critical that, whatever we achieve, we achieve it in a way that safeguards the economic interests of this country and its people, which I believe will be possible if we are cool-headed and sensible. That must always be the top priority.
It is also appropriate for us to get on with the job of triggering article 50, for the same reason. Both the plan and the move to invoke article 50 are necessary to deal with uncertainty. It is quite right that some of the worst economic predictions made in the referendum campaign have not come about, which is good news, but that is, of course, in part—not wholly—because of investment decisions taken before the referendum. Let us hope things continue that way but, as my old grandmother said, “Don’t always count your chickens until they’re hatched.”
What is crucial, however, is that we continue to have a stable climate for investment. In some areas that has been achieved, but in other sectors, particularly financial services and the property sector, there are clear instances of investment decisions being put on hold. The sooner we have clarity about the timeframe we are working to—hence we have the Government amendment—and a plan that we are working to, the better, as it will then be much easier to reassure business about those key points. I think that that is a perfectly sensible means of reconciling the original motion and the amendment.
The key things with which the plan needs to deal are financial services, legal certainty and, above all, our ability, if necessary, to have a sensible period of transition. The Prime Minister has hinted that we should not face a cliff edge. Our financial and legal services sectors are critical to this country’s economic wellbeing, and because of the complexity of the regulations we have to deal with and re-transpose into our own law, a transitional period might well be needed. Ministers should not be afraid of that; if it is a necessary part of our achieving a practical outcome for this country, we should be happy to have it. We should also have confidence in proper scrutiny by this House of what is in the interests of our nation as a whole. As democrats, we can be optimistic about the future, but only if we are pragmatic and do not allow sloganising to get in the way of common sense in our negotiations.
(7 years, 9 months ago)
Commons ChamberI referred to the Northern Irish case, which the Government won, and the decision about whether to leapfrog it will be made tomorrow. I am entirely aware that this is a very wide constitutional issue that has to be resolved properly. That is one of the reasons I am resisting calls to do something before the Supreme Court rules on the issue. That is the proper place for the decision to be taken.
I am glad that the Secretary of State has characterised the decision as being a judgment. The judges were asked to answer a legal point of significant importance and they did so, rightly and faithfully, in accordance with their oath. Does he, therefore, agree that it is important for our reputation after we have left the European Union that all of us speak up for the independence of the judiciary and, above all, that we do not regard freedom of expression in the press as any excuse for personal, abusive and, frankly, disgraceful innuendo being raised against individual members of Her Majesty’s judiciary? That undermines us all.