Exiting the European Union

John Bercow Excerpts

Monday 5th September 2016 Commons Chamber

[The Secretary of State for Exiting the European Union (Mr David Davis)]

I thought it would be useful for the House to be brought up to date on the working of my Department after the referendum of 23 June. Our instructions from the British people are clear. Britain is leaving the European Union. The mandate for that course is overwhelming. The referendum of 23 June delivered a bigger vote for Brexit than that won by any UK Government in history. It is a national mandate, and this Government are determined to deliver it in the national interest.

The Prime Minister has made it clear that there will be no attempt to stay in the EU by the back door; no attempt to delay, frustrate or thwart the will of the British people; and no attempt to engineer a second referendum because some people did not like the first answer. The people have spoken in a referendum offered to them by this Government and confirmed by Parliament —by all of us, on both sides of the argument—and we must all respect it. That is a simple matter of democratic politics.

Naturally, people want to know what Brexit will mean. Simply, it means leaving the European Union, so we will decide on our borders, our laws and the taxpayer’s money. It means getting the best deal for Britain: one that is unique to Britain and not an off-the-shelf solution. This must mean controls on the numbers of people who come to Britain from Europe, but also a positive outcome for those who wish to trade in goods and services. This is an historic and positive moment for our nation. Brexit is not about making the best of a bad job; it is about seizing a huge and exciting opportunity that will flow from a new place for Britain in the world. There will be new freedoms, new opportunities and new horizons for our country. We can get the right trade policy for the UK. We can create a more dynamic economy, a beacon for free trade across the world. We want to make sure our regulatory environment helps, rather than hinders, businesses and workers. We can create an immigration system that allows us to control numbers and encourage the brightest and best to come to this country.

I want to be clear to our European friends and allies that we do not see Brexit as ending our relationship with Europe; it is about starting a new one. We want to maintain or even strengthen our co-operation on security and defence. It is in the interests of both the UK and the European Union that we have the freest possible trading relationship. We want a strong European Union, succeeding economically and politically, working with Britain in many areas of common interest, so we should all approach the negotiations to come about our exit with a sense of mutual respect and co-operation.

I know the House will want to be updated about the work of the Department. It is a privilege to have been asked to lead it by the Prime Minister. The challenge we face is exciting and considerable. It will require significant expertise and a consistent approach. Negotiating with the EU has to be got right, and we are going to take the time to get it right. We will strive to build national consensus around our approach.

We start from a position of economic strength. As the Prime Minister said yesterday, there will be challenges ahead, but our economy is robust, thanks in no small part to the work of my right hon. Friend the Member for Tatton (Mr Osborne). The latest data suggest our manufacturing and service industries and consumer confidence are all strong, contrary to some of the earlier predictions. Businesses are putting their faith and their money into this country. Over the summer, SoftBank, GlaxoSmithKline and Siemens all confirmed that they will make major investments in the UK. Countries, including Australia, have already made clear their desire to proceed quickly with a new trade deal for the UK. As other nations see advantages to them, I am confident that they will want to prioritise deals with the UK, too. But we are not complacent. Our task is to build on this success and strength and to negotiate a deal for exiting the European Union that is in the interests of the entire nation.

As I have already indicated, securing a deal that is in our national interest does not and must not mean turning our back on Europe. To do so would not be in our interests, nor Europe’s, so we will work hard to help to establish a future relationship between the EU and the UK that is dynamic, constructive and healthy. We want a steadfast and successful European Union after we depart.

As we proceed, we will be guided by some clear principles. First, as I have said, we wish to build national consensus around our position. Secondly, we will always put the national interest first. We will always act in good faith towards our European partners. Thirdly, wherever possible, we will try to minimise any uncertainty that change will inevitably bring. Fourthly, and crucially, by the end of this process we will have left the European Union and put the sovereignty and supremacy of this Parliament beyond doubt.

The first formal step in the process of leaving the European Union is to invoke article 50, which will start two years of negotiations. Let me briefly update the House on how the machinery of government will support our efforts and on the next steps we will take. First, on responsibilities, the Prime Minister will lead the UK’s exit negotiations and be supported on a day-to-day basis by my Department. We will work closely with all Government Departments to develop our objectives and to negotiate new relationships with the EU and the rest of the world. Supporting me is a first-class ministerial team and some of the brightest and best in Whitehall, who want to engage in this national endeavour. The Department now has over 180 staff in London, plus the expertise of over 120 officials in Brussels. We are still growing rapidly, with first-class support from other Departments.

As to the next steps, the Department’s task is clear. We are undertaking two broad areas of work. First, given that we are determined to build national consensus, we will listen and talk to as many organisations, companies and institutions as possible—from large plcs to small businesses, and from the devolved Administrations to councils, local government associations and major metropolitan bodies.

We are already fully engaged with the Governments of Scotland, Wales and Northern Ireland to ensure a UK-wide approach to our negotiations. The Prime Minister met the First Ministers of Scotland and Wales and the First Minister and Deputy First Minister of Northern Ireland in July. Last week, I visited Northern Ireland for meetings with its political leaders, where I reiterated our determination that there will be no return to the hard borders of the past. I will visit Scotland and Wales soon.

My ministerial colleagues and I have also discussed the next steps with a range of organisations. My first meeting was with the general secretary of the Trades Union Congress, followed by key business groups, representatives of the universities and the charitable sector, and farming and fisheries organisations. But that is just the start. In the weeks ahead, we will speak to as many other firms, organisations and bodies as possible—research institutes, regional and national groups, and businesses up and down the country—to establish their priorities and the opportunities for the whole of the UK. As part of that exercise I can announce that we will be holding roundtables with stakeholders in a series of sectors, to ensure that all views are reflected in our analysis of the options for the UK. [Interruption.]

[Mr Speaker]

Order. Will the right hon. Gentleman resume his seat for just a moment? There is quite a lot of unseemly and, dare I say it, somewhat unstatesmanlike noise from a sedentary position. Someone was muttering, “Too long!” It is not too long at all. The right hon. Gentleman is perfectly in order. Let me remind the House that it has always been my practice to facilitate the fullest and most extensive interrogation of the relevant Minister, and that will happen today. Everyone will have his or her opportunity. But it would be a good thing if people would listen respectfully. If they can manage a beaming countenance reminiscent of that of the Foreign Secretary that will be a bonus, but it is not obligatory.

[Mr Davis]

Those roundtables will include stakeholders from the broadcast, aviation, energy, financial services and automotive sectors, and others.

I will also engage with EU member states. I am beginning with a visit to Dublin this week. I am working particularly closely with the Foreign Secretary and the Secretary of State for International Trade, who have been meeting counterparts in Washington, Brussels and Delhi, and in the capitals of other EU states. While we do that, my officials, supported by officials across Government, are carrying out programme of sectoral analysis and regulatory analysis, which will identify the key factors for some 50 sectors of British business. It is extremely important that the House understands that. We are building a detailed understanding of how the withdrawal from the EU will affect domestic policies, to seize opportunities and ensure a smooth process of exit.

The referendum result was a clear sign that the majority of the British people want to see Parliament’s sovereignty strengthened, and so throughout the process Parliament will be regularly informed, updated and engaged.

Finally, we are determined to ensure that people have as much stability and certainty as possible in the period leading up to our departure from the EU. Until we leave the European Union, we must respect the laws and the obligations that membership requires of us. We also want to ensure certainty when it comes to public funding. The Chancellor has confirmed that structural and investment fund projects signed before the autumn statement and research and innovation projects financed by the European Commission by money granted before we leave the EU will be underwritten by the Treasury after we leave. Agriculture is a vital part of the economy and the Government will match the current level of annual payments that the sector receives through the direct payments scheme until 2020, again providing certainty.

The Prime Minister has been clear that she is determined to protect the status of EU nationals already living in the UK. The only circumstances in which that would not be possible would be if the rights of British citizens in EU member states were not protected in return, something that I frankly find very hard to imagine.

I am confident that together we will be able to deliver on what the country asked us to do through the referendum. I am greatly encouraged by the national mood. Most of those I have met who wanted to remain have accepted the result and now want to make a success of the course Britain has chosen. Indeed, organisations and individuals I have met already who had backed the remain campaign now want to be engaged in the process of exit and in identifying the positive changes that will flow from it as well as the challenges. I want us all to come together as one nation to get the best deal for Britain.

In conclusion, we are confident of negotiating a new position that will mean this country flourishing outside the European Union while keeping EU members as friends, allies and trading partners. We leave the European Union but we will not—[Interruption.]

[Mr Speaker]

Order. The hon. Member for Perth and North Perthshire (Pete Wishart) is an aspiring statesman. His aspiration may be a little way from fulfilment. I want to hear the Secretary of State’s peroration.

[Mr Davis]

It is an aspiration of very long standing, Mr Speaker.

In conclusion, we are confident of negotiating a position that will mean this country flourishing outside the EU, keeping its members as our friends, our allies and our trading partners. We will leave the European Union but will not turn our back on Europe. We will embrace the opportunities and freedoms that will open up for Britain. We will deliver on the national mandate for Brexit, and we will deliver it in the national interest.

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[Several hon. Members rose—]

[Mr Speaker]

A most exotic delicacy in the House, Mr Michael Gove.

[Michael Gove (Surrey Heath) (Con)]

Thank you very much, Mr Speaker. I congratulate my right hon. Friend on his long overdue return to ministerial office. In the seven short weeks he has been in office, alongside our new Foreign Secretary and our new Secretary of State for International Trade, we have seen a record increase in service industries growth, a record increase in manufacturing industry growth and a 3.3% increase in motor car sales. We have also seen the Speaker of the US Congress, the Prime Minister of Australia and the Prime Minister of New Zealand all pressing for free trade deals with this country, while the Deputy Chancellor of Germany has acknowledged that the EU-US trade deal is dead in the water. Does that not confirm that the 17 million people in this country who voted to leave the European Union know a darned sight more about economics than the members of the International Monetary Fund, the OECD and the Institute for Fiscal Studies, and all these other soi-disant “experts” who have oeuf on their face?

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[Mr Davis]

For as long as we are a member of the European Union, which by the sounds of it will be at least two years, we will meet all our obligations and we will take our responsibilities extremely seriously, including the one that my right hon. Friend has outlined.

[Mr Speaker]

May I gently ask the Secretary of State to face the House? Sometimes his answers are not fully heard. They are heard by the person at whom he is looking, but not by the House.

[Mr Davis]

All I can do is plead inexperience.

[Mr Speaker]

Yes! I call Mr Frank Field.

[Frank Field (Birkenhead) (Lab)]

May I congratulate the Secretary of State on his return to the Front Bench and, on behalf of all those Labour constituencies that voted to leave, thank him for his statement and for making the control of our borders the cornerstone of any renegotiation? May I take him back to the question from the right hon. Member for Wokingham (John Redwood)? Given Europe’s huge trade surplus with us, how does the Secretary of State think that power position will play out when we are talking about membership of or access to the single market?

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[Mr Davis]

Somebody on the Front Bench muttered that I should be all right with that; I shall not say who. I demurred from—[Interruption.] I beg your pardon, Mr Speaker. I demurred from second-guessing our own negotiating position for six months in respect of the Labour party, and I am going to demur in this case. I will say this to my hon. Friend: the decision of the British people was, I think, first and foremost about control of our own destiny over and above anything else, and that is what we are seeking to return.

[Mr Speaker]

The Secretary of State is an immensely cerebral denizen of this House, and therefore there is no need for him at any time to imitate a turnstile. That is best avoided.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

I also welcome the Secretary of State to his place, but may I say to him that many of us wanted rather more detail than a few more reheated old soundbites? We know the old slogan “Brexit means Brexit”, and what we got this afternoon was an essay on how waffle means waffle. May I commend to him the approach of the Japanese Government, who have not simply spent the last seven weeks setting up a Brexit commission, but gone to the lengths of reporting its results? I hope that that diligence and speed will inspire his work in his Department over the months to come.

I want to press the Secretary of State on his answer to my hon. Friend the Member for Wallasey (Ms Eagle). He made a big play in his statement of his ambition, which I share, to restore parliamentary sovereignty. Will he therefore give this House a vote on the final package for Brexit, whenever and however it is finally negotiated?

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[Mr Davis]

That is a very good try. I am sure that, in his youth, my hon. Friend was a great seducer, but I am not going to be seduced. [Interruption.]

[Mr Speaker]

I do not think we want too much information on that front.

[Helen Goodman (Bishop Auckland) (Lab)]

The right hon. Gentleman has always been a great defender of parliamentary democracy. Throughout the afternoon he has emphasised that the situation is complex and there are trade-offs to be made. That is why it is so incomprehensible to many of us that he does not want the House to have a vote before the path is chosen for how to trigger article 50. I wonder whether he is aware of the statement made by the former Foreign Secretary, Lord Hague, that it would be sensible

“to endorse the start of negotiations”

as

“a defeat for the terms of exit, after lengthy negotiations…could leave the UK in…limbo”.

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[Several hon. Members rose—]

[Mr Speaker]

Order. I thank the Secretary of State, the Opposition Front-Bench spokespersons, and all 85 Back Benchers who had the opportunity to question the right hon. Gentleman. I am sure that other instalments will follow in due course.