John Bercow
Main Page: John Bercow (Speaker - Buckingham)Department Debates - View all John Bercow's debates with the Cabinet Office
(5 years, 9 months ago)
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The Prime Minister (Mrs Theresa May)
I am sure the House will join me in sending our deepest condolences to the family and friends of Dawn Sturgess, who passed away last night. The police and security services are working urgently to establish the full facts, in what is now a murder investigation. I want to pay tribute to the dedication of staff at Salisbury District Hospital for their tireless work in responding to this appalling crime. Our thoughts are also with the people of Salisbury and Amesbury. My right hon. Friend the Home Secretary will make a statement shortly, including on the support we will continue to provide to the local community throughout this difficult time.
Turning to Brexit, I want to pay tribute to my right hon. Friends the Members for Haltemprice and Howden (Mr Davis) and for Uxbridge and South Ruislip (Boris Johnson) for their work over the last two years. [Interruption.] We do not agree about the best way of delivering our shared commitment to honour the result of the referendum, but I want to recognise the former Secretary of State for Exiting the European Union for the work he did to establish a new Department and steer through Parliament some of the most important legislation for generations, and similarly to recognise the passion that the former Foreign Secretary demonstrated in promoting—[Interruption.]
Mr Speaker
Order. There is a very unseemly atmosphere. I want to hear about these important matters, and I think the House should.
The Prime Minister
Thank you, Mr Speaker. I recognise the passion that the former Foreign Secretary demonstrated in promoting a global Britain to the world as we leave the European Union. I am also pleased to welcome my hon. Friend the Member for Esher and Walton (Dominic Raab) as the new Secretary of State for Exiting the European Union.
On Friday at Chequers, the Cabinet agreed a comprehensive and ambitious proposal that provides a responsible and credible basis for progressing negotiations with the EU towards a new relationship after we leave on 29 March next year. It is a proposal that will take back control of our borders, our money and our laws, but do so in a way that protects jobs, allows us to strike new trade deals through an independent trade policy and keeps our people safe and our Union together.
Before I set out the details of this proposal, I want to start by explaining why we are putting it forward. The negotiations so far have settled virtually all of the withdrawal agreement, and we have agreed an implementation period that will provide businesses and Governments with the time to prepare for our future relationship with the EU. But on the nature of that future relationship, the two models that are on offer from the EU are simply not acceptable.
First, there is what is provided for in the European Council’s guidelines from March this year. This amounts to a standard free trade agreement for Great Britain, with Northern Ireland carved off in the EU’s customs union and parts of the single market, separated through a border in the Irish sea from the UK’s own internal market. No Prime Minister of our United Kingdom could ever accept this; it would be a profound betrayal of our precious Union. And while I know some might propose instead a free trade agreement for the UK as a whole, that is not on the table, because it would not allow us to meet our commitment under the Belfast agreement that there should be no hard border between Northern Ireland and Ireland.
Secondly, there is what some people say is on offer from the EU: a model that is effectively membership of the European economic area, but going further in some places, and the whole of the UK remaining in the customs union. This would mean continued free movement, continued payment of vast sums every year to the EU for market access, a continued obligation to follow the vast bulk of EU law, and no independent trade policy, with no ability to strike our own trade deals around the world. I firmly believe this would not honour the referendum result, so if the EU continues on that course, there is a serious risk it could lead to no deal. This would most likely be a disorderly no deal, for without an agreement on our future relationship, I cannot see that this Parliament would approve the withdrawal agreement with a Northern Ireland protocol and financial commitments, and without those commitments, the EU would not sign a withdrawal agreement.
A responsible Government must prepare for a range of potential outcomes, including the possibility of no deal, and given the short period remaining before the conclusion of negotiations, the Cabinet agreed on Friday that these preparations should be stepped up. But at the same time, we should recognise that such a disorderly no deal would have profound consequences for both the UK and the EU, and I believe that the UK deserves better.
The Cabinet agreed that we need to present the EU with a new model, evolving the position that I had set out in my Mansion House speech, so that we can accelerate negotiations over the summer, secure a new relationship in the autumn, pass the withdrawal and implementation Bill and leave the European Union on 29 March 2019.
The friction-free movement of goods is the only way to avoid a hard border between Northern Ireland and Ireland and between Northern Ireland and Great Britain, and it is the only way to protect the uniquely integrated supply chains and just-in-time processes on which millions of jobs and livelihoods depend. So at the heart of our proposal is a UK-EU free trade area that will avoid the need for customs and regulatory checks at the border and protect those supply chains. Achieving this requires four steps. The first is a commitment to maintaining a common rulebook for industrial goods and agricultural products. To deliver this, the UK would make an up-front sovereign choice to commit to ongoing harmonisation with EU rules on goods, covering only those necessary to provide for frictionless trade at the border. This would not cover services, because that is not necessary to ensure free flow at the border, and it would not include the common agricultural and fisheries policies, which the UK will leave when we leave the EU.
The regulations covered are relatively stable and supported by a large share of our manufacturing businesses. We would continue to play a strong role in shaping the European and international standards that underpin them, and there would be a parliamentary lock on all new rules and regulations, because when we leave the EU we will end the direct effect of EU law in the UK. All laws in the UK will be passed in Westminster, Edinburgh, Cardiff and Belfast. Our Parliament would have the sovereign ability to reject any proposals if it so chose, recognising that there would be consequences, including for market access, if we chose a different approach from the EU.
Secondly, we will ensure a fair trading environment. Under our proposal, the UK and the EU would incorporate strong reciprocal commitments relating to state aid. We would establish co-operative arrangements between regulators on competition and commit to maintaining high regulatory standards for the environment, climate change, social and employment, and consumer protection.
Thirdly, we would need a joint institutional framework to provide for the consistent interpretation and application of UK-EU agreements by both parties. This would be done in the UK by UK courts and in the EU by EU courts, with due regard paid to EU case law in areas where the UK continued to apply a common rulebook. This framework would also provide a robust and appropriate means for the resolution of disputes, including through the establishment of a joint committee of representatives from the UK and the EU. It would respect the autonomy of the UK’s and the EU’s legal orders and be based on the fundamental principle that the court of one party cannot resolve disputes between the two.
Fourthly, the Cabinet also agreed to put forward a new business-friendly customs model—a facilitated customs arrangement—that would remove the need for customs checks and controls between the UK and the EU because we would operate as if a combined customs territory. Crucially, it would also allow the UK to pursue an independent trade policy. The UK would apply the UK’s tariffs and trade policy for goods intended for the UK and the EU’s tariffs and trade policy for goods intended for the EU. Some 96% of businesses would be able to pay the correct tariff or no tariff at the UK border, so there would be no additional burdens for them compared with the status quo and they would be able to benefit from the new trade deals that we will strike. In addition, we will bring forward new technology to make our customs systems as smooth as possible for businesses that trade with the rest of the world.
Some have suggested that under this arrangement the UK would not be able to do trade deals. They are wrong. When we have left the EU, the UK will have its own independent trade policy, with its own seat at the World Trade Organisation and the ability to set tariffs for its trade with the rest of the world. We will be able to pursue trade agreements with key partners, and on Friday the Cabinet agreed that we would consider seeking accession to the comprehensive and progressive agreement for trans-Pacific partnership.
Our Brexit plan for Britain respects what we have heard from businesses about how they want to trade with the EU after we leave and will ensure we are best placed to capitalise on the industries of the future in line with our modern industrial strategy. Finally, as I have set out in this House before, our proposal includes a far-reaching security partnership that will ensure continued close co-operation with our allies across Europe while enabling us to operate an independent foreign and defence policy. So this is a plan that is not just good for British jobs but good for the safety and security of our people at home and in Europe too.
Some have asked whether this proposal is consistent with the commitments made in the Conservative manifesto. It is. The manifesto said:
“As we leave the European Union, we will no longer be members of the single market or customs union but we will seek a deep and special partnership including a comprehensive free trade and customs agreement.”
What we are proposing is challenging for the European Union. It requires the EU to think again, to look beyond the positions that it has taken so far, and to agree a new and fair balance of rights and obligations. That is the only way in which to meet our commitments to avoid a hard border between Northern Ireland and Ireland without damaging the constitutional integrity of the UK and while respecting the result of the referendum. It is a balance that reflects the links that we have established over the last 40 years as some of the world’s largest economies and security partners. It is a bold proposal, which we will set out more fully in a White Paper on Thursday. We now expect the EU to engage seriously with the detail, and to intensify negotiations over the summer so that we can get the future relationship that I firmly believe is in all our interests.
In the two years since the referendum we have had a spirited national debate, with robust views echoing around the Cabinet table, as they have around breakfast tables up and down the country. Over that time I have listened to every possible idea and every possible version of Brexit. This is the right Brexit. It means leaving the European Union on 29 March 2019; a complete end to free movement, and taking back control of our borders; an end to the jurisdiction of the Court of Justice of the European Union in the UK, restoring the supremacy of British courts; no more sending vast sums of money each year to the EU, but instead a Brexit dividend to spend on domestic priorities such as our long-term plan for the NHS; flexibility on services, in which the UK is world-leading; no hard border between Northern Ireland and Ireland, or between Northern Ireland and Great Britain; a parliamentary lock on all new rules and regulations; leaving the common agricultural policy and the common fisheries policy; the freedom to strike new trade deals around the world; an independent foreign and defence policy—but not the most distant relationship possible with our neighbours and friends; instead, a new deep and special partnership. It means frictionless trade in goods; shared commitments to high standards, so that together we continue to promote open and fair trade; and continued security co-operation to keep our people safe.
This is the Brexit that is in our national interest. It is the Brexit that will deliver on the democratic decision of the British people, and it is the right Brexit deal for Britain. I commend this statement to the House.
The Prime Minister
The right hon. Gentleman has been in this House for quite a long time, and I know that he will have heard many statements. The normal response to a statement is to ask some questions. I do not think that there were any questions anywhere in that; nevertheless I will—[Interruption.]
Mr Speaker
Order. Members on both sides of the House should try to calm down. There is a long way to go and, as is my usual custom, I hope to be able to call everybody who wants to ask a question. People do not need to chunter from their seats when they can speak on their feet.
The Prime Minister
Thank you, Mr Speaker. I will comment on a few of the points that the right hon. Gentleman has made. He talks about removing or lowering standards in a number of areas, including employment. As I said in my statement, we will
“commit to maintaining high regulatory standards for the environment, climate change and social and employment and consumer protection.”
He says that there is no plan in what I had said to ensure that there would be no hard border between Northern Ireland and Ireland, but in fact the very opposite is the case. The plan delivers the commitment for no hard border between Northern Ireland and Ireland. At the beginning of his response, he thanked me for giving him early sight of my statement. It is just a pity that he obviously did not bother to read it.
The right hon. Gentleman says that we are two years on. This is the right hon. Gentleman who, immediately after the referendum decision in 2016, said we should have triggered article 50 immediately with no preparation whatsoever. He talks about delivery. Well, I remind him that we delivered the joint report in December, we delivered the implementation plan in March, and now we stand ready to deliver on Brexit for the British people with the negotiations that we are about to enter into. He talks about resignations, but I remind him that he has had, I think, 103 resignations from his Front Bench, so I will take no lectures from him on that.
When it comes to delivering a strong economy and jobs for the future, the one party that would never deliver a strong economy is the Labour party, whose economic policies would lead to a run on the pound, capital flight and the loss of jobs for working people up and down this country.
Several hon. Members rose—
Mr Speaker
In noticing the hon. Member for Elmet and Rothwell (Alec Shelbrooke), I note with approval that the bright shirt he is wearing is more reminiscent of Arsenal than of West Ham.
Alec Shelbrooke (Elmet and Rothwell) (Con)
Thank you for that endorsement, Mr Speaker.
My constituency contributes roughly half a billion pounds to the GDP of this nation, mainly through small and medium-sized manufacturing enterprises. Does my right hon. Friend agree that the most important thing we must achieve is that those small and medium-sized enterprises, which are the lifeblood of this country, are able to supply the big companies, no matter where they are able to trade, and that this deal allows them to expand in all other parts of the world as well?
Anne Marie Morris (Newton Abbot) (Con)
Prime Minister, I have listened very carefully to everything you have said today, and I have read very carefully everything you have circulated. I even went to one of the briefings you organised today, and I was struck by the reply from your presenter every time there was a question about why we could not have something better than what was on the piece of paper presented: we were told that the EU simply would not agree. I have gone carefully through everything, and I cannot see how what was agreed at Chequers will deliver Brexit, either hard or soft. There is much use of “indirect” instead of “direct”, but it will not deliver Brexit. Please, Prime Minister, the people would like you to stand up to Mr Barnier and say “No.” I would like you to bear that in mind when you consider what to put in the White Paper to make Brexit deliver the economic dividend it should.
Mr Speaker
Order. I allowed the hon. Lady to complete her question, but may I gently encourage her to remember that we do not use the word “you” here? She has now been a Member for eight years, and I look to her to set an example to new colleagues who require leadership.
The Prime Minister
It is precisely because we are saying “No” to the proposals put forward by the European Commission that we are putting forward our own proposal, which is much more ambitious and comprehensive than those from the EU and, I believe, is in the best interests of this country.
Mr Speaker
The hon. Gentleman does not have to look quite so surprised to be called. He was standing. It is very good to know that he knows his own name. I called him, and the House, and perhaps the nation, wish to hear him.
James Cartlidge
The largest employer in my constituency is Philips AVENT, the baby care company, which employs 1,500 people. At the weekend, its chief executive made it clear that in the event of a hard Brexit that plant could close, which would be a massive shock to my local economy. May I say to my right hon. Friend that, although there is a lot of excitement about certain jobs being lost in this place, I will be supporting her negotiating position because it prioritises the jobs that matter—those of our constituents?
Several hon. Members rose—
Mr Speaker
Order. I cannot believe that the hon. Member for Gloucester (Richard Graham) is standing up; he was absent from the Chamber for some considerable period—but perhaps he is waiting for the next statement. I call Jeremy Lefroy.
Jeremy Lefroy (Stafford) (Con)
May I join my right hon. Friend in paying tribute to my right hon. Friend the Member for Haltemprice and Howden (Mr Davis) and my hon. Friend the Member for Wycombe (Mr Baker) for all the work that they did on the European Union (Withdrawal) Bill and much else, and to my right hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson) for all his work in representing the United Kingdom? I pay particular tribute to him for his work in Africa.
Will my right hon. Friend the Prime Minister tell me how the association agreement, which is being put forward following the Chequers agreement, will ensure that we put national security, economic prosperity and our United Kingdom at the heart of our negotiating objectives?
The Prime Minister
I thank my hon. Friend for his patience. It is important that we now move forward together as one country, very clear in what we want to see in our future relationship with the European Union, and that we go into the negotiations with that confidence.
Mr Speaker
I am most grateful to the Prime Minister, the Leader of the Opposition and all 95 Back Benchers who questioned the Prime Minister. Whatever people think about this matter, the Prime Minister has clearly scored highly today in terms of productivity. We should be clear about that.