European Union (Withdrawal Agreement) Bill

Stephen Farry Excerpts

3rd reading & 3rd reading: House of Commons
Thursday 9th January 2020 Commons Chamber

[Stephen Farry (North Down) (Alliance)]

Thank you very much, Madam Deputy Speaker, but I should say that I have already had that privilege, before the Christmas break. None the less, thank you for the entreaty.

[Madam Deputy Speaker]

I sincerely apologise to the hon. Gentleman. It will be obvious that I have been absent from the Chair for a few weeks. Given that the hon. Gentleman is not making his maiden speech, he can take lots of interventions and everyone can shout at him.

[Stephen Farry]

Thank you very much, Madam Deputy Speaker, for setting me up in that regard. May I pass on formally our congratulations on your election as Deputy Speaker?

I wish to introduce Northern Ireland into the debate, given the fact that it has been so central to the Brexit process so far. There are still so many unresolved issues and questions and it is important that we reflect on them as the Bill passes Third Reading, because there is still a long journey ahead.

Before I do that, I wish to make some general comments and to share in the concerns expressed by many Opposition Members about where we are with the Bill. There is uncertainty as to whether a trade deal can be done in the next 11 and a half months; there is the risk of no deal; there is the nature of the future relationship to consider; and there are issues of the parliamentary scrutiny, or lack thereof, of where we go from here. Of course, there is also more general regret about the Brexit process, which is going to leave the UK in a worse position overall in terms of the economy, society, security and the environment. That is particularly true of my own region of Northern Ireland.

I wish to focus on the unresolved issues. Brexit throws up a unique set of challenges for Northern Ireland, because, perhaps more than any other part of the UK, we are part of that wider network—that integrated framework across these islands. We are interdependent in terms of our trade and our society, both north-south on the island and in the wider whole-UK context as well. The problem of Brexit is that, whatever way it falls, it entails some degree of new barriers, borders or friction. In the context of Northern Ireland, that creates a sense of win and loss, in terms not only of the economy but of wider society and the emotional and psychological impacts. We also need to be acutely aware of the potential political ramifications in the medium to long term.

That said, we saw this week the almost remarkable situation in which, across the political divide in Northern Ireland, we had all the parties coming together behind a common set of amendments, which were also backed by—and, indeed, in many respects driven by—the local business community in Northern Ireland, which has itself come together in an almost unprecedented way because of the huge importance of the issues before us. I remain very much convinced, as do my colleagues in the Social Democratic and Labour party, that Northern Ireland’s place is as part of the European Union. The Democratic Unionist party comes from a leave, pro-Brexit perspective. Regardless of how we reached this point, we all share the desire to ensure that we have the seamless, unfettered trade between Northern Ireland and Great Britain that was the theme of the amendments, to protect the wider UK internal market and to ensure that the GB-to-Northern Ireland interface can be managed successfully.

Several wider points need to be made about the context. First, we should not see emerging—or indeed being forced on us—a choice or a trade-off between some sort of border or interface on the island of Ireland and a border or interface down the Irish sea. We want to avoid both those possibilities, but there will be a huge challenge in the way things have fallen in that respect. Indeed, the Assembly has almost been set up with this choice to make in four or eight years’ time: whether to maintain ongoing regulatory alignment for goods on an all-island and European basis, or align with the rest of the UK. It is not a choice that anyone particularly relishes and it builds a degree of instability into our political structures. Members will be aware that talks are ongoing back in Belfast as we speak to try to restore the Northern Ireland Executive and Assembly—I pay tribute to the Secretary of State for Northern Ireland for his work in that regard over the past months—but Brexit adds a new layer of complexity to that wider context.

The focus of the debate and the amendments has largely been the interface between Northern Ireland and Great Britain, mainly because that is much more under the control of the UK Government. However, the process from Great Britain into Northern Ireland—and, indeed, beyond into the European Union—is just as important, if not more so. I think that those plans were not tested so much through amendments because that work depends on the outworkings of the future free trade arrangement. In that regard, it is worth stressing that a free trade agreement—even one that is very far reaching and inclusive—is not the same as the arrangements we currently have as part of the European Union; it is not the same as a customs union and a single market. A free trade agreement is a qualitatively different concept. We currently have a free trade arrangement through which we can access trade agreements with the rest of the world, and that is what we are giving up for an untested future.

There is ambiguity about where Northern Ireland will sit with respect to these future trade relations—whether we are part of a wider European Union framework when it comes to goods, or whether we are part of the wider UK trade policy. There was a time, particularly under the proposals of the former Prime Minister, when Northern Ireland could have had a foot in both camps, and the business community was embracing that. The danger now is that Northern Ireland could be marginalised and peripheral in both UK and EU trade terms, with local businesses facing considerable ongoing economic costs. In particular, there may well be barriers to accessing certain markets or attracting investment, because people will just see Northern Ireland as a complicated place and think that it is too difficult to engage with us. Our economy, which is already struggling from a low starting point, will continue to be marginalised.

As we look to a future relationship, it is important that we bear in mind the importance of integrating goods with access to labour; I am particularly thinking about ongoing freedom of movement and the service economy. It is very difficult to uncouple the four freedoms of the European single market. We need some degree of new deal for Northern Ireland because local businesses are going to face considerable economic costs. There will be a need for financial support as mitigation, or to support the transition as local companies adjust to the new arrangements and the new market frameworks.

Let me return to what happens as we look ahead to the next phase. There is a gap between: the rhetoric, declarations and promises of the UK Government and Ministers, particularly the Prime Minister; what we have been told by a range of different experts; and the reality of international and European law on customs and regulatory matters. That is an ongoing challenge which needs to be addressed, but Northern Ireland businesses want to see the commitments to unfettered access being honoured. We want to ensure that there is no discrimination against Northern Ireland goods, and it is important that we assess on an ongoing basis the economic impact of the Northern Ireland protocol.

My final point is that there has been a lot of focus on the joint report as being the almost magic solution to every unresolved question at this stage, as well as on the free trade agreement and negotiations. Given the very particular circumstances faced by Northern Ireland, my appeal would be for Northern Ireland representatives to be integral to those discussions and for there to be a proper feedback loop to the Northern Ireland Assembly, Executive and whatever democratic structures we can put in place back in Northern Ireland.