European Union (Withdrawal Agreement) Bill

Stephen Hammond Excerpts

Committee stage & Committee: 1st sitting: House of Commons & Committee: 1st sitting
Tuesday 7th January 2020 Commons Chamber

[Steve Barclay]

I refer back to the remarks I made a moment ago about this being a win-win for both sides. Let me take a portfolio that I used to deal with as a Minister: financial services. It is in the interests of EU businesses to be able to access capital at the cheapest possible price. I see in his place my hon. Friend the Member for Wimbledon (Stephen Hammond), who has expertise in this regard; he knows that the expertise in respect of the global markets and the liquidity that London offers is of benefit not just to the rest of the world but to colleagues in European businesses. They want access to the talent of the constituents of my hon. Friend the Member for Harrow East (Bob Blackman) and many others, which is why it is in both sides’ interests to reach agreement. That is the discussion that the Prime Minister will have with the President of the Commission tomorrow.

[Stephen Hammond (Wimbledon) (Con)]

For those of us who have been clear about our opposition to no deal, the problem with new clause 4 is that in effect it takes away some of the certainty and benefits to business, because it opens up the possibility of an unended extension, and the problem with new clause 36 is that it is anti-democratic. Any colleagues who think that such provisions may need to be in place should recognise that they would undermine the whole purpose of the withdrawal agreement. The best way to stop no deal is to secure a deal.

[Steve Barclay]

My hon. Friend is absolutely right. I know that he engages extensively with the business community, and what the business community wants is the clarity and certainty that the Bill delivers, and it also wants an implementation period that has a clear demarcation in terms of time. That is what the Bill will deliver.

--- Later in debate ---

[Stephen Hammond]

I do not think that anyone can doubt my credentials as someone who is concerned about and opposed to no deal, but the hon. Member’s remarks would have greater validity if new clause 4 allowed for the potential of a very short extension necessary for the conclusion of a future relationship, as I think he was beginning to say, rather than a completely open-ended extension, which is unsurprisingly being described as an extension to Brexit. If he had wanted to stop no deal, he should have voted for a deal, and he should do that now.

[Paul Blomfield]

I do not question the hon. Member’s credentials in terms of his concern about our leaving without a deal, but I ask him to look carefully at new clause 4. The framing of the new clause in relation to two years builds on the provisions of the withdrawal agreement to which the Government have signed up but includes the capacity for a much shorter transitional period if the Government are successful in concluding a deal or if this House agrees. Our proposal very much addresses the point that he makes. I will come to that in more detail, and he might want to intervene again.

It was because of the risks of a disorderly departure that we were first to argue—it seems like a very long time ago now—for a transition period, which at that stage the Government opposed. We were raising the voice of business and of the trade unions, and we were pleased when the Government accepted that principle, although they saved face by renaming it an implementation period. When the end of the transition was originally set for December 2020, it was on the assumption that we would have left the EU on 29 March last year, leaving 21 months—[Interruption.] The Under-Secretary of State for Exiting the European Union asks, “Why didn’t we?” He could ask that of a number of his colleagues, including the Prime Minister. That would have left 21 months to negotiate our new relationships on trade and, as my hon. Friend the Member for Rhondda (Chris Bryant) pointed out, on security in particular. Twenty-one months was seen as ambitious. Many in the Government sitting around the Cabinet table doubted its deliverability. That is why there was a provision to extend it. But now there is only 11 months, and in trade negotiation terms 11 months is unbelievably short.

The Government say that they want an ambitious, best-in-class free trade agreement. They talk about CETA as a model, but not about the time taken to negotiate CETA, of which they are well aware. They say that it will be easy to negotiate, because we start from the unique position in trade talks of existing alignment; the right hon. Member for Wokingham (John Redwood) is nodding. But it is the Government’s objective to diverge from that alignment, to seek a deal that allows the UK to race to the bottom, undercutting the EU on obligations and regulations and stepping off the level playing field. That will be uniquely difficult to negotiate, and any deal secured in 11 months is highly likely not to be a good deal for the UK.