Leaving the EU: No Deal

Rushanara Ali Excerpts

Wednesday 19th December 2018 Commons Chamber

[Keir Starmer]

I agree with my hon. Friend. I will take further interventions when I have made some progress.

The point that I am really making is that leaving the EU on 29 March next year without a deal is simply not viable, and I do not think that any responsible Government would do it.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

Will my right hon. and learned Friend give way?

[Keir Starmer]

I will give way in a moment.

Treasury estimates of a no-deal outcome would mean a 9.3% decline in GDP over 15 years. That would be an act of economic self-harm that no responsible Government should take. It would see every region of the UK worse off and would mean that there would be no common security arrangements in place and, of course, a hard border in Northern Ireland. In any event, the truth is that the Government simply have not prepared for it and it is now too late.

Let me give two very specific but obvious examples. Over the summer, the previous Brexit Secretary published 106 technical notices—the Government’s view of what needed to be done in order to prepare for no deal. What comes out of those 106 documents is that, taken together, they commit the Government to the creation or expansion of 15 quangos, further legislation in 51 areas, the negotiation of 40 new international agreements with the EU or others, and the introduction of 55 new systems and processes. That is the Government’s own analysis of what they need to do to prepare for no deal. Let us just stand back and consider that. The meaningful vote is scheduled for the week of 14 January. It is then just over nine weeks to 29 March. It is simply not credible to pretend that even the bare minimum in the Government’s own technical notices can be delivered in that nine weeks.

The second example is just so powerful. Two weeks ago today, the Chancellor answered a question from the hon. Member for Dover (Charlie Elphicke) about preparations at Dover, which is a pretty busy port—the busiest. Some of us have been down there a number of times to talk to the staff and management about what needs to be done, and they are very worried. This is what the Chancellor said:

“if we were to end up having a WTO-type trading arrangement with the European Union”,

that

“would involve some very significant infrastructure works that could not be done in a matter of months; they would take years to complete.”

However much money we throw at it now, how can we get over that problem—that the infrastructure at Dover will take years, not months? The Chancellor did not say that it would take months if there was more money; he said years, not months. The idea that we could somehow manage a no deal nine weeks after the meaningful vote only has to be put against that example to be seen to be ridiculous. This was confirmed by the National Audit Office, which said bluntly in October:

“The government does not have enough time to put in place all of the infrastructure, systems and people required for fully effective border operations on day one”.