Parliamentary Scrutiny of Leaving the EU

Seema Malhotra Excerpts

Wednesday 12th October 2016 Commons Chamber

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

This afternoon has shown that there are still some very sore feelings on both sides of the argument, and that we are slowly moving towards overcoming the hurt, and in some cases bitterness, over what has happened. I recommend to everyone the speech by the right hon. Member for North East Bedfordshire (Alistair Burt), not just because of what he said, but because of the tone in which he delivered it. As the suffragettes would have said, “It is not just words, but deeds.” It is all very well to say, “Now we must all be very friendly together,” but we must deliver it in a tone that recognises there is still a lot of healing to be done. That was also clear in the speech by the hon. Member for Grantham and Stamford (Nick Boles).

I want us to move on to a point where we can start to look beyond the process and at some of the policies. We need to get to a point where there are elements of agreement about what the vote to leave meant. In the context of language, I rather regret that we ended up with the term Brexit. It was a vote to leave. It was a vote to have control of our laws, our taxes and our borders. It was a vote to be able to hold those who make decisions on those three areas accountable and, most importantly, to be able to remove them if we disagree with them. Of course, we all talk to our voters.

I want to raise two things. The first is an initiative that was started today by Change Britain, an organisation that I chair, called “Welcome to stay”. It asks people to sign up to the basic principle that EU citizens who are here have rights. We should recognise those rights as soon as possible and ensure that we continue to be an open, outward-looking and welcoming country. That is important not just for the United Kingdom; it is equally important for UK citizens living in the rest of Europe. The sooner we establish that principle, the better it will be. It will establish a tone for the continuing debate.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Does my right hon. Friend agree that we need to clarify the situation for those who might want to invest or to live here in the next two years? I heard today of a contract that has been lost in my constituency because a German national was going to invest, but is now uncertain about where he will be and what his status will be in two years’ time.

[Ms Stuart]

My hon. Friend is right that overcoming uncertainty must be a priority, but if I had to choose what should come first, I think that people’s status and ability to plan is more important, and that we should then talk about trade arrangements. However, she is right that we have to get the best deal for this country.

Over the past few weeks, I have not only talked to constituents, but gone out with Change Britain and talked to a lot of people across the country. On the subject of immigration, which was so significant and important, what came out of the focus groups was a belief that democracy means that people have a say on what the rules are. People wanted those rules to be fair and to apply equally to every person from outside the United Kingdom, whether they are in the EU or not. Those in working-class communities, many of them Labour voters, who voted in significant numbers to leave, said that politicians should deliver on their promises. A particular challenge for Labour is that if our constituencies voted one way and our party’s position was another, we really should not be going around saying, “Anything bad that happens from now on is the fault of your decision.”

This is a moment when all of us should spend a lot of time listening to what people have said. The referendum has shown us two things. The first is that we need to revisit the basis on which we fight referendums and how they fit in with our parliamentary processes, but let us park that one. The second is a deep disillusionment with the political processes. Those will not be healed by a friendly, or sometimes not so friendly, banter across these Benches. They will be healed only if we start to go out in a non-partisan way, listen to what people are saying in a non-judgmental way and then respond, particularly in those areas that feel they have been left behind. I think we have started to take the first step in that process today, but we must recognise that it is only the first step. When we talk about seeking consensus, there is a responsibility on both sides to try to achieve that. If we want to put the national interest first, we should start by showing it in here, that the nation matters more.

--- Later in debate ---

[Neil Carmichael (Stroud) (Con)]

First, I acknowledge the result and accept that its consequence is that Britain will leave the European Union, as I would have expected people to have done back in 1975 when we last had a referendum on this subject. My second point is that it is really critical to recognise that a binary decision of this nature opens up so many issues, and we have to think carefully about them all. I am going to list a few.

Obviously, one issue is the economy. We must think of some tests to have in our minds over the next two or so years about the value of our pound, the development of our trade, the trends in foreign direct investment, employment characteristics and so on. If we do not have such tests, we will lose sight of a fundamental point: back in June the electorate did not vote to become poorer. They are expecting something different.

The problem is that the clarion calls of hope and confidence that we have heard today, combined with the sense that there is a horizon over there that we will get to, will simply not be enough in terms of setting out our future. We have to think carefully about the detail. As anyone connected with the European Scrutiny Committee should know, we have been listening to detail about what happens in the European Union for years. It cannot be surprising that there must be detail as we leave the European Union. That point needs really to be taken on board.

The question of the single market is imperative. It is all very well saying, “Oh well, we’re going to leave the European Union, so we will leave the single market,” but to leave the world’s freest trade area without rhyme or reason will be verging on an act of national self-harm unless we have some alternative. We have to understand the importance of that issue.

How do we scrutinise? Back in the early 1990s, the Maastricht treaty was thoroughly scrutinised—not by a portion of Parliament, but by the whole of Parliament; various Members who now suggest that we might not want to scrutinise things terribly much were at the forefront of that scrutiny in the 1990s. We should remember that.

[Seema Malhotra]

Does the hon. Gentleman agree that the way in which we deal with the single market is fundamental for a very different reason? It is about not just the sale of goods, but the development and production of goods, as outlined in some earlier speeches, because our economies are far more connected in terms of the production of goods.

[Neil Carmichael]

Absolutely right. I have talked many times in this Chamber about the importance of free movement and the importance of the single market in connection with supply chains, investment and so on. That is central to the single market argument.

That reminds me of an important point made earlier: we have to make sure that we have some friends in the world so that we can deal with them later. We face risks—with Russia and other nation states—and it is imperative to make sure we are friendly with the remaining 27 member states of the European Union post-Brexit. The way in which we conduct ourselves is absolutely essential to building up those friendships and to making sure those bridges are protected and, indeed, strengthened, and, my goodness, we will need them.

This issue is also about something my right hon. Friend the Member for North East Bedfordshire (Alistair Burt) correctly pointed out: we have to think about bringing people together; we have to think about what kind of nation we are creating post-Brexit and how we are going to present ourselves to the world, because we are engaged not just in an internal argument but an external process, and it involves not just Europe but the rest of the world. If we end up being reliant on the World Trade Organisation, 163 nation states will be able to say, “Aha, we might not let them in.” We are busy criticising one or two of those nation states right now, so we need to think carefully about our relationships with some of them.

As regards Select Committees, the Education Committee will be doing a full-scale inquiry into the consequences of Brexit on the university sector, picking up some of the points we have heard about skills. One reason the referendum went the way it did was that we have a mismatch between the skills we have produced and the skills we need. That is one of the things my hon. Friend the Member for Grantham and Stamford (Nick Boles) was referring to when he talked about why we lost, and we must learn from those reasons and make sure that all our Select Committees play their part.