(4 years, 11 months ago)
Commons ChamberI am pleased to speak in support of clause 7 and part 3, and I support all the comments made by the Minister. When I served as a Minister in the Department for Exiting the European Union, I was responsible for drafting much of the Bill, and I am glad that a lot of it has survived my absence from the Government. I pay tribute to the Front-Bench team, to parliamentary counsel and to the officials for the drafting of a complex and critical piece of legislation. In preparing the Bill, we conducted considerable engagement with the charitable sector, representatives of EU citizens and the legal sector to identify their concerns so that we could design a new framework that would not only command their confidence but, above all, work.
I should say at the outset that with Brexit, free movement will obviously come to an end. That is one reason many people voted to leave the European Union, myself included. I am the child of immigrants, yet I do not have a problem with saying that it is right that our democratic institutions, our UK Government and the British people have control over migration, not Brussels, the EU Commission or the EU Parliament. Everyone in the House should welcome that fundamental aspect of the EU Brexit project if we are truly to reflect the desires and needs of those who send us here.
With the ending of the free movement of people, I do not think we can be in any doubt about the Government’s commitment to safeguarding the position and rights of the 3 million or so EU citizens who are already living and working here. We want them to stay, as has been said so many times; we value their immense contribution; and we want to make Brexit as easy as possible for them.
I am glad about the proposals that provide for the legal rights of EU citizens, their access to healthcare and social security, recognition of their professional qualifications, and their employment and equalities rights. The Bill will enable them to continue to live their lives as they do now. It is this Bill that provides for the groundbreaking Independent Monitoring Authority, which is a hugely important proposal that will reflect our watertight commitment to EU citizens.
First, the scheme is working. The Minister himself has overseen the roll-out of the settled status scheme for years now. As of October 2019, more than 1 million people had been granted settled or pre-settled status under the EU settlement scheme. That milestone came four months after the scheme fully launched in March last year. That is an excellent start, and I pay tribute to the Home Office and all those involved in such an immense administrative task.
Secondly, the scheme is working because it is practical and user friendly. The EU settlement scheme is designed to make it straightforward for EU citizens and their families to stay in the UK after Brexit. They need only to complete three key steps: prove their identity, show that they live in the UK and declare any criminal convictions. A wide range of support is available for EU citizens and their families, including a dedicated settlement resolution centre and 300 assisted digital locations to support those who have limited access to IT, and the Home Office funds a plethora of organisations to help those citizens who are more vulnerable—the homeless, the disabled and the elderly—to navigate the system.
I wonder whether the hon. Lady can do something that the Minister could not. During her time in government, did she see an estimate of the number of EU citizens who, perhaps accidentally or because they did not fully understand their own immigration situation, will have failed to apply for the scheme by the deadline? Was I right to suggest that it will be hundreds of thousands? What should happen to them?
I will come back to that point, but of course any system will have the challenge of reaching everybody affected by it. That is why the Government have not held back at all in coming forward with outreach, engagement and the publicity and advertising campaign, and with the resources made available to the millions of EU citizens who are affected. We need only look at the numbers to see that the uptake rate is so far very encouraging. We should judge it on the evidence, not fear speculative future possibilities.
I accept all that, just as the Opposition spokesperson accepted all that—in general, all is going well—but the difference between us is on the consequences of not applying. Under our system, people could still apply for years to come; under the Government’s proposed system they will not be able to. Overnight, there will be tens—probably hundreds—of thousands of people without status. How many people do the Government expect to be in that situation, and what should happen to them?
It is important for any system to have robust deadlines and to have consequences if deadlines are not met. Importantly, though, there is a grace period in the legislation that allows considerably for people being late or delayed in making their application. That strikes the right balance by ensuring robustness but making allowances for those who might not get there in time.
Thirdly, we know that the system is working because EU citizens and those who work for them have told us so. Charities such as the East European Resource Centre and the Refugee and Migrant Centre, which receives Home Office funding and has helped thousands of EU citizens and their families, have welcomed the operation of the scheme so far.
Lastly, the significance of the Independent Monitoring Authority cannot be diminished. It represents not just the legal protections that are offered and provided for in the Bill, but a cultural change at the Home Office and in Government towards migrants. It represents a culture of protection and safeguarding and of enabling people to know their rights and exercise them.
Much has been said about avoiding the mistakes of Windrush, and I can see exactly why people fear history repeating itself. My parents emigrated to this country from Commonwealth countries at the same time as the Windrush generation and could have easily been caught up in the mistakes and consequent problems. When I was a barrister, I did a lot of work in immigration law, representing the Government in the High Court and in immigration tribunals. Of course, any large administrative exercise of this scale can be vulnerable to mistakes. This policy area is heavily legislated for and therefore very complex. Mistakes are made, but there is also abuse of the rules.
Any system must be light-touch and pragmatic enough to minimise the burdens on those who are directly affected and those who have to go through the system, but at the same time robust enough and sound enough to prevent such abuse. It is okay to live in an ideal world and assume that there is no abuse of immigration rules, but, unfortunately, the reality—the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald) will know this from his experience in the sector—is that there is abuse. In recent times, we have faced unsubstantiated claims and unjustified appeals, and thousands of pounds of taxpayers’ money has been used to perpetuate pointless and vexatious claims through the immigration system and the High Court.
The Government are highly cognisant of their obligations to EU citizens. It has to be said that even without the IMA there would be many avenues of legal redress for EU citizens—appeal rights and judicial review are enshrined not only in the Bill, but in common law—but the Government have gone further. They are committing to setting up an independent watchdog specifically—exclusively—for EU citizens to monitor the application of the rules, carry out inquiries, take up judicial review and represent EU citizens, be their collective voice and ensure that mistakes are remedied swiftly. It will be thanks to the IMA that a Windrush-type scandal will be avoided, EU citizens will have a voice and the system will improve and serve people. That is a step change—a sign of the political will to get it right and drive forward change.
Leaving the European Union presents us with myriad opportunities to take back democratic control of our migration policy—something that we should welcome and see as an opportunity for our country. I commend the Bill and the measures on EU citizens to the Committee.
(5 years, 11 months ago)
Commons ChamberI will happily take interventions from two former Ministers, both of whom served with distinction in the Department for Exiting the European Union.
No, because, as I have said on a number of occasions, whichever deal we have will need the elements we have talked about in respect of the withdrawal agreement, including a backstop. Let us not forget what that is about. It is about asking, because of the unique circumstances of Northern Ireland—because it is the only part of the United Kingdom with a land border, and because of its history in terms of the peace process—how we provide a guarantee. It is like insurance; one does not want to have to call on it, but how do we ensure that there is a guarantee to address the concerns that the hon. Member for North Down (Lady Hermon) set out?
I applaud the Secretary of State and his excellent ministerial team in the Department for Exiting the European Union for all their efforts at this challenging time for the Government. In December, the Attorney General published his legal advice, which contains a statement on the backstop. He wrote that
“despite statements in the Protocol that it is not intended to be permanent…in international law the Protocol would endure indefinitely until a superseding agreement took its place, in whole or in part”.
Is it the Secretary of State’s position that that legal position is unchanged, notwithstanding the reassurances that have been garnered to date, and does he agree that that means that in international law, we still risk being trapped indefinitely in the backstop?
With characteristic aplomb, my hon. Friend alludes to one of the key issues in this debate: how one assesses the balance of risk. The Attorney General said in his statement to the House on 3 December, when these issues were explored in great detail, that how one assesses that balance ultimately is a political decision. In a way, the same point can be made about the concerns Members have expressed about the Union. There is a balance of risk in terms of concerns about the backstop, including the issue of that small section in the backstop where EU competence will continue. What is the risk of that? I have alluded to the safeguards. How does that risk elide with other risks, such as the risk of inaction?
The same is true of the assessment of my predecessor, my right hon. Friend the Member for Esher and Walton (Dominic Raab), whom I hold in the highest regard. The difference there is an issue not of understanding—he understands these issues in great depth—but of how one assesses the balance of risk. The Attorney General dealt with that in some detail in his comments to the House.
(6 years, 1 month ago)
Commons ChamberAfter the UK leaves the EU on 29 March 2019 the implementation period will provide a bridge to our future relationship, ensuring that citizens and businesses only have to plan for one set of changes. During the implementation period the UK will no longer be a member state of the EU, nor will it have MEPs at the European Parliament or a judge at the European Court of Justice. We will have the freedom to negotiate, sign and ratify new trade deals with third countries, although they will not come into force until the end of the implementation period.
I thank my hon. Friend for that answer, but clearly the position should be that on day zero we are a full member of the EU and by the end of the transition period we have no connection other than the future arrangements that we have. It seems to me that instead of a curve as we reduce the transition period, all we have is a postponing of the cliff edge and a delayed departure. Will my hon. Friend comment?
I take note of my hon. Friend’s comments. The aim of the implementation period is to provide certainty for businesses and individuals with access to each other’s markets on terms similar to those today. There will be a number of changes to reflect the UK’s new status as a third country—those I mentioned before—but crucially we have got new opportunities to start taking steps to enjoy our new freedoms, and that time should be used effectively.
We continue to work closely with the Secretary of State for Environment, Food and Rural Affairs on support for fishermen after we leave the European Union. The Fisheries Bill, introduced today, will allow us, for the first time since 1973, to take back control of our waters, set our own fisheries rules and exclusively determine who fishes what in our seas as an independent coastal state. That will ensure a sustainable and profitable fishing industry that will regenerate coastal communities and support future generations of UK fishermen.
Sea fishermen and cocklers are greatly looking forward to our leaving the European Union at 11 o’clock on 29 March 2019, but will my hon. Friend reassure them that their expected increase in living standards will not be damaged by any extension to the transition period?
I fully recognise the importance to fishing communities in Leigh-on-Sea of leaving the common fisheries policy, and my hon. Friend is a strong voice for those communities. We fully expect to negotiate as an independent coastal state in 2020 and, as the Prime Minister set out earlier this week, the interests of UK fishermen are at the forefront of our thinking as we consider the different options that have been proposed. What is clear is that, when EU rules no longer apply, the UK will be making its own decisions. We will control access to our own waters and we will seek to gain a fairer share of quotas.
What discussions has the Minister had with the Secretary of State for Environment, Food and Rural Affairs and with the Scottish Government about replacing the European maritime and fisheries fund and devolving the equivalent budgets?
All European maritime and fisheries fund projects approved before the UK leaves the EU will be fully funded under the Treasury guarantee, even when those projects are not completed by the UK exit date. Work is under way to consider the long-term future of all the programmes that are currently EU funded. Leaving the EU means that we will want to take our own decisions about how to deliver the policy objectives previously supported by EU funding.
With the Fisheries Bill being presented later this morning, and with the Lowestoft fishing industry coming forward with exciting plans to regenerate the industry, will the Minister reconfirm that in December 2020 the UK will negotiate fishing opportunities for 2021 as an independent coastal state?
As I said, we fully expect to be negotiating as an independent coastal state in 2020. Any of the options put forward will take account of all that has been agreed in the draft withdrawal agreement. We have clarified that the UK share of quotas will not change during the implementation period and that the UK can attend international negotiations. I am sure my hon. Friend is aware of the structures that have been agreed to ensure that the UK has a representative voice in those negotiations.
After sustained public debate, a clear majority of the electorate voted to leave the EU in June 2016, with the highest number of votes cast for anything in UK electoral history. We must respect both the will of the British people and the democratic process that delivered that result. As such, it is a matter of Government policy that there will not be a second referendum on our exit from the EU.
I am grateful to the Minister for that response. As someone who voted remain in that referendum, I was naturally disappointed by the result. But I am also a democrat, and it is important that we all respect the results of all elections, regardless of whether we win or lose them. Putting aside the questions on the so-called “people’s vote” and what it would actually achieve and deliver, does she not agree that it would undermine fundamental principles of democracy in this country?
My hon. Friend makes his point skilfully. People trusted that their voices would be heard, and to ask the question all over again would be a betrayal of our democracy and of that trust. Whether on Brexit or on Scottish independence, politicians north and south of the border should think twice before they choose to let people down in this way.
When are this Government going to wake up to the madness of where we are? There is no deal I can see coming from Europe that will look after my constituents better than remaining in the EU. Whether it is through reasserting parliamentary sovereignty or having a second referendum —yes, I was out on the march in Parliament Square on Saturday—can we please have a Government who wake up to their responsibilities and look after the future of this nation?
Looking after the future of this nation means respecting the democratic voice of this nation. Yes, 700,000 people marched on Saturday, but 17.4 million people voted to leave, and we do not simply ignore their voices just because we do not like what they said. I ask the hon. Gentleman, who obviously supports a second referendum and, worse still, one that would have remain as an option, to take a long, hard look in the mirror and ask himself whether he can truly call himself a democrat.
I should say to the hon. Member for Huddersfield (Mr Sheerman) that I was speaking at a theatre in Colchester last night and I referenced him in the course of my remarks. Knowing that he is not altogether averse to a focus upon himself from time to time, I think he would have enjoyed my observations.
Does the Minister agree that, if the 2016 referendum is not honoured, a second referendum would have no credibility whatsoever?
The hon. Gentleman is absolutely right. This is not the best of three. It is not about, “You keep trying until you get the result you want.” This was a historic vote, when millions of people put their faith in democracy. To do anything other than revere that vote would undermine democracy and cause a collapse in that faith.
I am relieved to see that the hon. Member for Redditch (Rachel Maclean), who is a most assiduous attender in the Chamber, has beetled into the Chamber just in time. This is very good news.
We are continuing to put in place the legislative building blocks to deliver our exit, whatever the outcome of the negotiations, including the unlikely event that a deal cannot be agreed. The Government have stated consistently that a wide range of legislation will be required to correct retained EU law and ensure a functioning statute book on exit day. Examples include the recent Nuclear Safeguards Act 2018, which is now law, and statutory instruments on civil aviation and airports.
Greater Manchester has started to draw up plans for the catastrophe of a no-deal Brexit. Council leaders have warned that supermarkets in the north-west do not have warehouse space to stockpile food. Planes from Manchester airport could be grounded. Councils have already faced eight years of austerity, and they will be the ones picking up the pieces after no deal, providing housing and children-and-adult services to people who are out of work because of economic downturn. Will the Minister commit to sharing the Government’s no-deal planning with local authorities?
The Government take very seriously the concerns of local authorities when it comes to Brexit preparations. I have met local government leaders all over the country to talk about the subject. I am glad that the Secretary of State for Housing, Communities and Local Government has set up a Brexit delivery board to co-ordinate the work of local authorities and Government on preparations for Brexit—deal or no deal.
The UK has the world’s third-largest aviation industry, yet there are no WTO defaults in the event of no deal. What discussions are taking place to help the aviation industry to plan for all Brexit scenarios?
My hon. Friend raises an important issue. He will have seen, no doubt, the technical notices that have been issued relating to the aviation sector, which set out very clearly that we would seek to strike the relevant bilateral agreements to ensure that aviation companies and aeroplanes have access to each other’s airspace.
We hear a lot of fighting talk from the Front Bench, but what attempt are the Government making to heal the terrible divisions that still scar our country, and what attempt are they making to listen to the concerns of remain voters such as mine in Bristol West?
(6 years, 3 months ago)
Commons ChamberI beg to move,
That this House has considered legislating for the withdrawal agreement.
It is a great pleasure to open this debate. The Government published the White Paper on legislating for the withdrawal agreement in July, and the Secretary of State made a statement subsequently. Over the summer, we have made further progress in the negotiations, and the vast majority of the withdrawal agreement has now been agreed. Progress has been made across a range of outstanding separation issues. At the same time, we continue to work on backstop arrangements to deal with issues relating to the border between Northern Ireland and Ireland. Let me reiterate: it is unacceptable for a customs border to be drawn along the Irish sea, as that would be a direct threat to the territorial integrity of this country.
On borders, can the Minister enlighten us? What passport queues will British citizens arriving in France, Germany and Spain next year use—EU ones or non-EU ones—and what passport queues will EU citizens use coming into the UK?
As the hon. Gentleman will hear in my speech, we are proposing an implementation period from March 2019 until the end of 2020 under which our immigration and customs rules will continue to operate broadly as they do now. I hope that that satisfies him.
I will make some progress, and if the hon. Gentleman still has outstanding questions, he can raise them with me later.
The House will be aware that the Government have also taken steps to prepare for the unlikely event of being unable to reach a deal with the EU and have published a series of technical notices to inform people, businesses and stakeholders of the steps they would need to take in this event. We do not want a no deal outcome; the Government’s priority is to achieve a deal with the EU, and I remain confident that a deal that the House can support is within our reach. That is what I am here to discuss today.
The Minister says that the Government have published notices. Last week, the Secretary of State for Exiting the European Union told us in this House that the medicine notices covered stockpiling. I looked at them and could see no reference to stockpiling. In which notice is the stockpiling of medicines set out?
I gently remind the hon. Lady that no deal planning and the technical notices are not the subject of this debate. We are here to talk about the contents of the White Paper published before the recess, which covers the implementation period, the proposals for EU citizens and the financial settlement. That is what I am here to talk about, and I ask her gently to keep to the subject of the debate.
I am going to proceed.
The EU withdrawal agreement Bill is a vital part of our exit. Its purpose is simple: to implement the agreement we reach with the EU in domestic law. It is the means by which we will protect the rights of EU citizens in this country, pay the negotiated financial settlement and enter into an implementation period that is strictly time limited to prepare for the future relationship. If Parliament votes in favour of the deal, we will introduce the withdrawal agreement Bill to give the withdrawal agreement domestic legal effect.
The Minister has asked us to focus on the subject of the debate, and she has just mentioned the supposed deal to be put to Parliament. Can she explain how on earth that deal will proceed, given that 80, supposedly, of her own colleagues—including members of her own European Research Group, such as her former ministerial colleague, the hon. Member for Wycombe (Mr Baker), and others—have said that they will vote against it? Is not the reality that the Prime Minister’s Chequers deal is dead, that we are heading for a disastrous no deal and that that is exactly why we need a people’s vote on the deal?
I disagree with the hon. Gentleman about a second referendum—it would be a complete betrayal of the voters, because we had that exercise and it was two years ago—and I am optimistic that we will strike a mutually beneficial free trade agreement with the EU that honours the result of the referendum, retains the territorial integrity of our country and enables a smooth withdrawal from the EU.
I will make some progress and then come back to hon. Members.
If Parliament votes in favour of the deal, we will introduce the withdrawal agreement Bill to give the withdrawal agreement domestic legal effect. Any parliamentarian who is truly committed to delivering the people’s decision to leave the EU will, I believe, find cause to vote in favour of the Bill. The final content of the Bill will, of course, be subject to the outcome of the ongoing negotiations. We intend to introduce it as soon as possible after the negotiations have concluded and the deal has been approved by Parliament.
The Bill will need to be given Royal Assent before exit day if it is to give effect to the withdrawal agreement. It is precisely because this window of passage is constrained that we have published the White Paper. We want to maximise Parliament’s ability to express its views on the Bill, and that includes the period before its introduction.
Would the Bill need to be passed completely unamended? If an amendment were passed, would the British Government have to go back and renegotiate with the European Union?
The Bill will be introduced after Parliament has approved the terms of the final deal with the “meaningful vote”. In that context, the Bill will have a normal passage, like all other legislation. Of course, the views of parliamentarians will be welcome. The Bill can be amended, voted on and scrutinised in the normal way, but it will always be set in the context of Parliament’s approval of the final deal, which includes approval of the withdrawal agreement. Members will, I know, have taken the time over the summer recess to review this substantial document at greater length. Views and questions will have matured and crystallised, and I am therefore delighted to return to the topic today and listen to those views.
The Government’s objective in publishing the White Paper was to set out how we intend to legislate for the parts of the withdrawal agreement that have already been settled in negotiations: those relating to citizens’ rights, the implementation period and the financial settlement.
My hon. Friend has just referred to what has been agreed so far. Am I right in understanding that nothing is agreed until everything is agreed and that that remains an important principle?
My hon. Friend is absolutely right: nothing is agreed until everything is agreed. When I say that we have reached agreement with the EU on those sections—citizens’ rights, implementation and the financial settlement—I am talking about the legal text of the withdrawal agreement, which is in the form of a draft international treaty. Members will be familiar with the screeds of text that have been shaded in green. Progress has been made since the March European Council, which indicates agreement on the legal text and substance between the EU and the UK.
It would not have been appropriate for the White Paper to attempt to cover the parts of the withdrawal agreement on which negotiations have yet to be concluded. We will seek to keep Parliament informed as we make further progress, but let me make it clear that the withdrawal agreement Bill will be the primary means by which we give effect to the agreement, including any backstop arrangements for Northern Ireland and Ireland.
Does the Minister agree that to help these very difficult negotiations with the EU, which does not like the Chequers proposals, it would be an extremely good idea, as a matter of urgency, to publish our tariff schedules for no deal, so that the EU can see what it would look like and so that those of us who want import substitution will know that they have a better opportunity?
I share my right hon. Friend’s passion for the prospect of our country’s leaving the EU and our prospects outside the EU, and he has considerable expertise on this issue. I hope that he will be heartened by the technical notices that have been published over the summer, which take a step forward in setting out how our preparations are evolving in relation to that aspect of a no deal outcome.
The Government are committed to working with the devolved Administrations to ensure that the Bill works for all parts of the UK. The Joint Ministerial Committee on EU negotiations has already discussed proposals for the Bill, and I look forward to continued engagement in the run-up to the Bill’s introduction and throughout its passage. Engagement has been constructive and positive, and we expect and intend that to continue.
We have also begun engagement with organisations and individuals on the Bill over the summer. I have held roundtables with academics, legal practitioners and civil society organisations, and I look forward to further engagement with a range of representative bodies this week. We will continue to work closely with all interested stakeholders to make sure that we get the legislation right, and I look forward to further hearing the views of Members tomorrow.
Let me now turn to the detail of the White Paper. Part 2 of the withdrawal agreement and chapter 2 of the White Paper set out the arrangements for EU citizens living in the UK and for UK nationals residing in the EU. A key step in the provision of a smooth and orderly exit from the EU is the provision of certainty for those individuals and their families. That is why reaching an agreement on citizens’ rights was the UK’s first priority in negotiating its withdrawal.
If no withdrawal agreement is reached, there will be no protection of citizens’ rights. Does the Minister agree that she should take the lead from Labour and remove citizens’ rights from the negotiations and instead make sure these rights will be protected regardless of the final withdrawal decision?
For this Government to take Labour’s lead on anything to do with Brexit would be a serious derogation of our duty, because Labour does not have a plan and would completely let down this country if it was in charge of Brexit negotiations.
We have prioritised the position of EU citizens from day one of these negotiations. This agreement will safeguard these rights, and the withdrawal agreement will be the primary means by which the rights of EU citizens will be underpinned in the UK. Once enshrined in UK law, this agreement will give certainty to citizens on residency, access to healthcare, pensions and other benefits, so that EU citizens will continue to be able to live their lives broadly as they do today. Our message to EU citizens is clear: “We value you; we thank you for your contribution to our country, and we want you to stay.”
Central to the citizens’ rights agreement is the right for EU citizens to continue living in this country: EU citizens lawfully residing in the UK at the end of the implementation period will be able to stay, and I welcome the fact that, since the publication of the White Paper, the EU settlement scheme is now being piloted in the north-west of England. This is an important step in delivering certainty to individuals and their families currently living in the country.
The Bill will ensure that EU citizens can rely on the rights set out in the withdrawal agreement and can enforce them in UK courts. It will also establish an independent monitoring authority to oversee the UK’s implementation of the citizens’ rights deal, thereby providing further reassurance for citizens that their rights will be protected.
The Minister seems to be saying that everything is certain and everything is sorted out and EU citizens should be reassured. Why then do EU citizens living in my constituency tell me that they do not feel so reassured? Could it possibly be the case that the Minister’s engagements over the summer did not include meeting EU citizens living in this country?
Of course I am saddened to hear that, but I do feel that the Government have put this on the record, made it very clear and carried out extensive outreach with diaspora groups and EU citizens’ representative bodies and have worked with our opposite numbers on the continent to ensure that both citizens residing in the EU and those in the UK affected by this are aware of their situations and what their rights are going forward.
The Bill, and the resulting piece of UK law, will cover only the arrangements applying to EU citizens in the UK; it is for the EU and its member states to implement these arrangements as they relate to UK nationals living in the EU. But let me reassure the House and the 800,000 UK nationals who have chosen to make their lives in other EU countries that both the UK Government and the Commission are clear that providing certainty for citizens is a priority. Once fully agreed, the withdrawal agreement will become part of EU law, and the reciprocal commitments and safeguards we have agreed with the EU regarding UK nationals will be upheld through legislation in member states.
Does the Minister share my hope and expectation that responsible Members would take every opportunity to reassure EU citizens living in our constituencies that there is a secure future for them living and working in this country?
My hon. Friend is absolutely right. The Prime Minister herself has said, “We value your contribution; we thank you for your presence in this country; and we want you to stay,” and I am not quite sure which part of that Opposition Members fail to understand.
Under the withdrawal agreement, any administrative procedures introduced for UK nationals are required to be smooth, transparent and simple, to avoid unnecessary administrative burdens. The Government are working closely with the European Commission and individual member states to confirm the processes that will be in place. We will also be running an information campaign to let UK nationals know of any changes—for example, in how they should access services—and I would recommend that all UK nationals resident in the EU sign up for exit-related updates on gov.uk. They can also find a country-specific living-in guide for their member state of residence.
I should like to turn now to the implementation period. The Government are committed to providing certainty—
I am grateful to the Minister for giving way before she goes on to her next paragraph. I want to ask a question about family rights. Quite rightly, EU citizens have asked, “If my mother is very ill, could she come to the United Kingdom to be looked after?” Can the Minister give us clarification on the question of elderly parents who wish to join their children here in the UK who are currently EU citizens?
I encourage the hon. Lady to read the contents of the White Paper, which sets out in extensive detail the exhaustive and wide-ranging provisions covering EU citizens. Any Member who has constituents who are worried or anxious should please direct them to that document. It is agreed with the EU, and it sets out the basis of the immigration status and people’s access to benefits, pensions and healthcare. It should go far in reassuring constituents such as the hon. Lady’s that EU citizens who are currently in this country have the right to stay under the provisions that are agreed and set out clearly in plain English in this document.
I want to ask the Minister a specific question. She talks about the assurances that have been given and why so many people are worried. There are 3.5 million EU citizens in the UK, not including any other family members. The Home Office has told the Home Affairs Committee that the app for registering will be available only on Android and will not be available for iPhones, which half the people in this country use, and that the biometric permits, which are already seriously delayed in the Home Office, are being printed on the same printers that the DVLA uses and are miles behind. How on earth can EU citizens have any confidence, when the Government have not made even the basic practical provisions for registering and for ensuring that those people can get their documentation?
That is precisely why the Home Office is leading a pilot of the settlement scheme in the north-west as we speak, to identify what is working for people and what is not. So far, that is proving to be successful and showing that there is a good uptake of the scheme, but of course it is still in its pilot stage. The Home Office is very much in dialogue with the people who are directly affected, to ensure that we iron out the scheme and make it as simple, as user-friendly and as easy to use as possible.
One of the questions that the 1.2 million British people living in the EU are asking is what their entitlement will be to continuing medical care in the other member states in the event of there being no deal. What answer can the Minister give them?
We are working towards a mutually beneficial agreement. The terms of the withdrawal agreement are mutual, so they will apply equally to EU citizens in the UK and to UK citizens in the EU. In the event of no deal, we would make strenuous efforts to reassure the position of UK citizens in the EU so that they would be able to enjoy the rights that they enjoy today, but we would definitely have to work hard to agree that with individual member states in the EU.
I would now like to turn to the implementation period. The Government are committed to providing certainty and stability to businesses as part of a smooth and orderly exit, and we have been clear that they should only have to plan for one set of changes as the UK moves to the future relationship with our European partners. That is why we have agreed a strictly time-limited—
In the context of the exchanges that we had in the European Scrutiny Committee last Wednesday with the Secretary of State, can the Minister throw some light on how people will know, when there are changes to the rulebook, what those changes are going to be? What certainty will that provide, when in practice those changes will be decided by 27 other member states behind closed doors and without even so much as a transcript?
My hon. Friend raises an important point. He will know as well as I do that Council directives and regulations that will come into effect in the UK during the implementation period are currently going through the scrutiny process in the EU, so we will have played a part in the development of many of those rules that might come into effect—
If I may finish my point, I will then give way. For rules where we feel that there may be an adverse effect or on which we have not had sufficient say, we are committed to enabling parliamentary scrutiny, and we are looking forward to discussing those options with Members.
My hon. Friend has just conceded that there will be a joint committee. She did not specifically say that, but that is how things will work in practice. I am talking about changes to the rulebook. If the 27 member states decide something and we accept it by way of international obligation, I do not see how we can prevent it. The parliamentary lock will simply be a farce.
When it comes to the implementation period, the withdrawal agreement, in its draft treaty form, contains agreed provisions on a joint committee. That committee could be a forum for resolving the issue to which my hon. Friend alludes. I hope that that provides some reassurance that there is an element of governance that commands some confidence and legitimacy in this process.
Significantly, from March 2019 and during the implementation period, the UK will not be a member state of the European Union. As a result, for the first time in 40 years, we will have the freedom we need to strike new trade deals with global partners—a freedom that builds on our long and proud history as a great trading nation and a champion of free trade with all parts of the world. Important work is already under way to maximise such opportunities. In July, the Department for International Trade launched consultations to inform the Government’s approach to trading with the US, Australia, New Zealand and potentially to seeking accession to the comprehensive and progressive agreement for the Trans-Pacific Partnership. I am excited that those opportunities for the UK are drawing ever closer.
To give effect to the implementation period in domestic law, the withdrawal agreement Bill must ensure that EU law continues to have the same effect in the UK as it does now for the duration of the implementation period. The House will be aware that the current mechanism by which EU law is brought into UK law is the European Communities Act 1972, which will be repealed on 29 March 2019 when we leave the EU as prescribed in the European Union (Withdrawal) Act 2018—a vital step in our exit. The Bill will require a strictly time-limited transitional provision so that the legal effect of the ECA is saved until 31 December 2020, at which point the implementation period will end. That will reflect the UK’s unique status as a country that has left the EU but which, for a strictly time-limited period, will continue to apply EU law as it does now, to the benefit of citizens and businesses.
The Minister is talking about an implementation period, but is that not a misnomer? It is far from clear what we will actually be implementing. She is going to ask Parliament to sign off on a process when there is no detail of what our future trading relationship with the EU or anyone else is going to look like and when we will be giving up our negotiating power within the EU. Is it not just a step into the unknown?
I am disappointed that the hon. Lady is not here to welcome the implementation period, which has been welcomed by many businesses not only in her constituency, but throughout the UK, because it provides time and certainty. It is part of the withdrawal agreement, which is part of the final deal package, which is intricately linked to the future framework on the economic partnership. Together, they will be put to Parliament for the meaningful vote.
Does the Minister agree that 90% of future global growth will come from countries outside Europe? Will she therefore clarify that we will be able to start to benefit from that potential growth by signing trade deals during the implementation period?
I welcome my hon. Friend’s optimism. She is absolutely right. During the implementation period, the UK will be able for the first time in 40 years to design and develop its own independent trade policy, with the freedom to sign, negotiate and ratify trade deals with countries outside the EU. That is an important benefit precisely because, as she says, 90% of global growth will come from outside the EU, and we need to maximise that for our businesses and our citizens.
The provisions in the Bill in no way diminish the importance of the EU (Withdrawal) Act, which colleagues on both sides of the House worked so hard to scrutinise. That Act remains vital to the exit process, and any changes made to it by the withdrawal agreement Bill will not change its purpose. It was not appropriate for the EU (Withdrawal) Act to account for an implementation period, as the Act needed to be passed without prejudice to negotiations to ensure a functioning statute book on exit day. Now that we have secured agreement on the implementation period, we must ensure it is given proper domestic legal effect, which includes deferring the point at which some of the Act takes effect.
The negotiated financial settlement covering the UK’s financial commitments to the EU and the EU’s financial commitments to the UK provides predictability to current recipients of EU funding, including farmers, businesses and academics, with the UK continuing to get receipts due under the current EU budget plan. This is an issue of great importance to the House. We are a country that honours its international obligations, but it is important to recognise that the financial settlement was reached on the basis of both sides’ commitment to reaching a deal. If one side fails to live up to its commitments, there will be consequences for the deal as a whole, which includes the financial settlement.
The withdrawal agreement Bill will include a standing service provision that allows the Government to make payments due under the financial settlement. Although the amounts to be paid will vary and are a function of the terms of the settlement, the Bill will only allow payments to meet the financial commitments required by the withdrawal agreement. Parliament will want to monitor those payments, and it will be important to ensure that the payment mechanism balances the Government’s legal responsibility to pay the financial settlement with Parliament’s duty to scrutinise.
On the question of the financial settlement, does the Minister agree that it would be more honest for the Government, at the same time, to set out what the UK’s financial exposure to the European Union will be after the transition period? People would then be able to assess whether this actually represents value for money.
Characteristically, the right hon. Gentleman seeks to focus on the negatives and on the pessimistic view of Brexit for which he is well known. I do not sign up to his view of Brexit; I am very optimistic about the opportunities and the benefits that this country will stand to gain after we leave the EU and after the implementation period. I encourage him to put his pessimism aside and to get behind British businesses, to get behind British exporters and to get behind Britain.
Will the Minister get behind me? We are almost running out of time.
The Minister has just suggested that we might not end up paying the bill that has already been agreed, because nothing is agreed until everything is agreed. That therefore means there is no guarantee that there will be a transition period from next year. It also means that the Government must surely have some idea about which passport controls British citizens will use in Europe and which passport controls European citizens will use here. If not, they are completely irresponsible.
I admire the hon. Gentleman’s doggedness and his interest in passport queues. That information will be made public and will be set out by the Government in due course.
When it comes to the agreement, of course both sides are entering into an international treaty. Under customary international law, and under the convention that regulates international treaties, both parties will be bound by the duties to which they sign up. If one party fails to adhere to its obligations, the other party will have legal freedom to take appropriate countermeasures, which is what the UK retains in this international treaty negotiation. Both sides are committed to agreeing the framework of the future relationship alongside the withdrawal agreement, but it is our firm view that the withdrawal agreement itself must include a commitment requiring the framework for the future relationship to be translated into legal text as soon as possible. I am pleased that is now something we are taking forward in the negotiations, and the Secretary of State for Exiting the European Union has raised this issue personally with Mr Barnier.
I hope that I have made it clear today that the withdrawal agreement Bill is vital in delivering our exit from the EU. It will protect the rights of individuals and families, give effect to the time-limited implementation period, ensuring continuity and certainty for businesses, and provide the appropriate means for paying the financial settlement.
In the trade section of her speech, the Minister talked as though the UK were completely excluded from world trade today, but in fact we are right at the heart of it through 65 bilateral trade deals between the EU and the rest of the world. Can the Minister tell us how many of those the UK will be involved in when we have left the European Union?
If the hon. Gentleman studies the legal text of the withdrawal agreement, he will see that we have agreed with the EU that its international trade agreements will continue to apply to the UK during the implementation period as though we were a member state. The reason that I am so passionate and optimistic about Brexit and proudly campaigned to leave the EU is that, once we leave the customs union and the constraints of the common commercial policy and the common external tariff, it will be for this Parliament and our country to determine the future of our global trade and build on our rich and prosperous history in that regard. I encourage the hon. Gentleman to support that opportunity.
We are committed to getting this right, and I am confident that Members in all parts of the House will be able to support the Government in delivering the next step in leaving the European Union.
(6 years, 5 months ago)
Commons ChamberThe White Paper published last week makes it clear that the Government are committed to high levels of social and employment protection and proposes a reciprocal non-regression requirement for domestic labour standards. The paper also proposes a mutual commitment to individual rights, noting that the UK will remain a party to the European convention on human rights after it has left the EU. This is also reflected in the European Union (Withdrawal) Act 2018, which maintains existing rights protection as part of EU retained law.
The Secretary of State is experienced and has a proven track record not only as a Justice Minister but as a lawyer, and any attempt to undermine his credentials and commitment to the rule of law, civil liberties and now delivering a successful Brexit is fundamentally misguided. The Government have made it clear—not just in the White Paper, but on numerous occasions during the passage of the European Union (Withdrawal) Act—that leaving the EU does not mean a diminution of human rights.
My right hon. Friend the Secretary of State referred earlier to the mooted common rulebook as very narrow, but when we look at what is necessary for free circulation, it is actually extremely wide. I am concerned that the parliamentary lock in the White Paper is actually unworkable, because there will be the sword of Damocles of a hard border in Ireland should we derogate from any of it. Does my hon. Friend remember that decades of Conservative manifestos have committed to retaining or increasing our autonomy over such regulations?
I thank my hon. Friend for his comments. I know what an indefatigable campaigner he is for the UK leaving the European Union, and his expertise on this issue is well known. At the end of the day, the common rulebook is going to be subject to a parliamentary lock, and it also reflects rules on goods that have not changed for many decades.
The Minister rightly points out that the White Paper proposes non-regression clauses on environment regulations and on social and employment protections. In 2016, however, the Secretary of State wrote in The Times that Brexit was an opportunity to
“ditch”
the
“100 most burdensome EU regulations”.
He took exception to the agency workers regulation, for example, on the grounds that it
“gives agency workers the right to the same basic employment and working conditions as full-time staff”.
Does the Minister agree with the White Paper or with her Secretary of State?
The Government have been clear in the White Paper that our commitment to rights protection is unequivocal and that how those rules are applied is ultimately a decision for Parliament. May I remind the hon. Gentleman that rights do not emanate from the EU? We have our own rich and proud tradition of civil liberties, such as the Race Relations Act 1965 or the Equal Pay Act 1970, and we acceded to those critical pieces of legislation before our accession to the European Economic Community.
I understand my hon. Friend’s position on guaranteeing UK rights—indeed, I respect her position, which is that UK rights need no foreign courts to guarantee them. Perhaps she can help me understand how she views the rights of others on our continent. The great achievement of many of our people in the past 50 years has been the extension of those rights, yet today I see lists of Jews being suggested in Vienna, and I hear about the erosion of the rule of law in other parts of eastern Europe. What will be the Government’s position on making sure that those human rights still exist?
I thank my hon. Friend for his question. As I said, we have a long and proud tradition, which predates our membership of the EU, to protecting civil liberties, upholding human rights and enhancing the position of the individual, whether through the rule of law or our commitment to the ECHR. Brexit will not change that.
The Department is working closely with the Department for Digital, Culture, Media and Sport to understand the complexities of the issue relating to broadcasting. Together we are listening to the international broadcasting sector to understand its needs and concerns. I was very pleased to address the Creative Industries Federation in March.
Is the Minister aware that the Commercial Broadcasters Association has expressed its concern about the lack of clarity in the Government’s proposals post Brexit, particularly for international TV channels based in the UK, which are currently worth more than £1 billion to the economy and provide one in five jobs in the broadcasting sector? At the moment, UK-based international TV channels have a licence for the rest of the EU, and the Commercial Broadcasters Association is concerned that it is not clear whether that will continue. We are already seeing international broadcasters moving, so what steps are the Government taking?
The Prime Minister’s Mansion House speech committed to exploring creative options, with an open mind, to replace the country of origin principle enshrined in the audiovisual media services directive. The UK’s position represents the best credible proposal for the future relationship. It reflects the EU’s aim, as stated in Council guidelines, of allowing market access to provide services under host state rules.
I know how experienced the hon. Lady is in the arts sector. The White Paper proposes new arrangements for services and for the creative and digital sectors, recognising that the UK and the EU will not have the current levels of access to each other’s markets. The EU and the UK included broadcasting in the joint list of topics for discussion in the future framework, which reflects our shared understanding of the importance of the sector as a whole. Obviously, it is the responsible duty of the Government to prepare for all outcomes.
We work closely with Ministers and officials from all Departments, including DEFRA, to further our preparations for exit from, and a new partnership with, the EU. This includes discussions on the recently published future framework White Paper and the fisheries White Paper.
I am grateful to the Minister for that answer. Can she confirm that her Department shares the commitment of the Secretary of State for Environment, Food and Rural Affairs to the UK having full control of our territorial waters when we leave the EU, with trade in fish and fish products being a completely separate matter, and that there will be no trade deals linked to access to our fisheries?
The Government are clear that upon our exit from the European Union the UK will be an independent coastal nation free to set our own rules including on access to our waters and fisheries policies, and we seek to agree a process for future annual negotiations with the EU on access and fishing opportunities. I hope that that reassures my hon. Friend that we will be taking back control of this significant sector of our economy.
With our leaving the EU next year, access to European funds that have done a great deal for fishing communities around coastal areas will be lost. Will the Government themselves replace those funds in the same way that they propose to deal with funding for farmers?
I was delighted to visit the hon. Lady’s Grimsby constituency earlier this year and I know how energetic she is as a representative of her constituents. The fundamental principle, as set out in the fisheries White Paper and the future framework, is that we—this Parliament—will be in control of how we distribute funding, how we set the rules and how we empower our fishing communities around the country.
Notwithstanding what the Minister has said and what her colleagues have said on previous occasions, she will be aware that in fishing communities there are still concerns that the Government will use fishing in some way and make further concessions. Can she give an absolute guarantee that there will be no further concessions on fisheries?
Again, I was very happy to visit my hon. Friend’s constituency as part of my travels as a Minister. Like him, I represent a coastal constituency, where we know that our fishermen work very hard to earn their livings. The Government have been absolutely clear that once we leave the EU and no longer abide by the common fisheries policy, we will be an independent coastal state managing our fisheries and controlling access to our own waters. I hope that that reassures my hon. Friend.
The Government have regular and productive dialogue with the international business community, and the DExEU ministerial team has visited 18 EU member states this year alone, meeting businesses to understand their priorities and explain how our proposals enable businesses to thrive. Tomorrow, the Secretary of State and the ministerial team will be meeting business leaders from a number of countries at Chevening House, which is a dedicated opportunity to hear from them.
One issue that the business community has raised is continuing access to the working and investment capital currently supplied through the European Investment Bank. What arrangements are the Government making to ensure that continued flow of capital to our businesses?
My hon. Friend is right to point out that investment is crucial for the economic future of our nation and of the wealth creators in our country. The UK believes it may be mutually beneficial to maintain some form of ongoing relationship with the European Investment Bank, and we are exploring those options now.
What assessment have the Government made of the costs to international and domestic business of preparing, amidst the chaos of this Government, for all the possible outcomes of new relationships with the EU?
As has been set out this morning on many occasions, the Government are carrying out extensive preparations for all outcomes. No deal is not our objective, but we are preparing for that scenario, as is responsible and expected. Our future framework White Paper, however, sets out how we see our economic relationship working with the EU so that UK and EU businesses can continue to trade fruitfully as we leave the EU.
Following on from that question, when will the Minister’s Department properly publish an impact assessment for all sectors on the impact of a no deal scenario, in contrast to the shambles that we saw at the end of last year?
The Government have been clear that we will provide the appropriate analysis at the time that a deal is presented to Parliament. Many predictions of impacts and outcomes were made at the time of the referendum, but let us look at the facts. Manufacturing is at a record high, exports are rising faster than imports, and unemployment is at its lowest in 40 years. Let us base our predictions on the facts, not on scaremongering.
I assure my hon. Friend that I share his and the Environment Secretary’s view that, once we leave the EU, we will be able to control access to our waters by non-UK registered vessels, which will be a matter for negotiation. Access to markets for fish products will be agreed as part of our future economic partnership, just as with other goods and food products.
On citizens’ rights, UK citizens in some EU countries may have to renounce their British citizenship to stay living in those countries. It is unclear whether any of the 1.2 million in the EU will be able to move from living in one country to living in another without making further applications. At the same time, the EU is very reluctant to secure reciprocal voting rights. It is good that our approach is generous, but is my right hon. Friend the Secretary of State concerned about the lack of reciprocity in some areas of citizens’ rights? Will he raise the issue with Michel Barnier later today?
My hon. Friend is right to highlight this issue. The Home Secretary has issued a statement that sets out his disappointment that the EU has not necessarily put into plan the reciprocal arrangements that it agreed to for EU citizens. For our part, we have made it clear that we have agreed the sections of the withdrawal agreement that provide for an exhaustive and comprehensive series of protections for EU citizens. That is on a reciprocal basis and we expect the EU to respond in kind.
This week, the Office for Budget Responsibility followed the Institute for Fiscal Studies in pointing out that there is no such thing as a Brexit dividend. Given that the OBR was set up to provide expert advice to the Government, may we have an assurance that there will be no more talk from Ministers of this fantasy Brexit dividend?
(6 years, 6 months ago)
Commons ChamberThe Department for Exiting the European Union is working with all Departments at both ministerial and official level to ensure that our preparations for exit from, and new partnership with, the EU are on track. We are committed to seeking the best possible deal for the United Kingdom—one that works for all the regions of the country, including the north-west. I was delighted to visit the region earlier this month, and meet local businesses to discuss their views on Brexit.
Despite the very positive work being done by organisations such as the St Helens chamber of commerce, the latest polling shows that confidence among businesses in the north-west has fallen by 22 points, to just 33%. I am intrigued to know to what the Minister attributes that; is it the fact that this Government’s chaotic and shambolic handling of negotiations means that there is a real anxiety among businesses that we will crash out of the single market with no deal?
I very strongly disagree with the hon. Gentleman’s analysis. During my visit to the north-west I was pleased to meet with thriving businesses that are looking forward to the economic opportunities flowing from Brexit, such as trading with an expanded global marketplace. Together with huge investment in the north-west, such as the Mersey Gateway bridge and the northern hub in Manchester, the port of Liverpool, for example, stands potentially to act as an expanded gateway for global trade. This week’s Office for National Statistics trade figures show that exports are rising—by 7% to the end of April—faster than imports. That is good news for ports like Liverpool, good news for the north-west region and good news for the country.
As well as the north-west, all other regions in the UK are important to the Union, including the devolved nations, so can my hon. Friend confirm that no area will be treated unfairly when we leave the EU?
Absolutely; the integrity of the United Kingdom is paramount as we pursue these negotiations. I am very encouraged by the Government’s commitment to securing a unique and mutually beneficial free trade agreement with the European Union that supports our businesses, our jobs and our economy.
Given that all the analyses show that Scottish GDP would fall by 2.9% in the least-worst scenario of our staying in the single market and the customs union when we leave the EU, what GDP figure are the Government working towards with their current negotiating position?
Let us look globally: we have an economy that has increased output—those are the CBI’s figures—we have the OECD upgrading growth forecasts for this year and next, and we have the lowest net borrowing in over a decade. That is a very different picture from that suggested by the predictions that were made two years ago. Let us base our position on facts, not scaremongering about the future.
We have been clear that the UK will be leaving the EU’s customs union and the single market in March 2019. Only by leaving the customs union and establishing a new and ambitious customs arrangement with the EU will we be able to forge new trade relationships with our partners around the world. If the UK were to remain in the customs union, we would be unable to implement our own trade deals or to set our own tariffs. That would not give us control over our trade policy and it would not be respecting the referendum result.
Any policy whereby Britain leaves the European Union but remains in the customs union would mean surrendering our trade policy to a third party, and would mean that we were required to open our markets to other countries without guaranteed reciprocal access to theirs. Does my hon. Friend agree that no independent, self-respecting nation could tolerate such a position?
I agree with my hon. Friend. A customs union creates an asymmetrical relationship. Turkey is an example of a country in a customs union with the EU but not in the customs union with the EU. The effect of that is that if the EU signs a free trade agreement with a third country—let us say, the US or Canada—goods from the US or Canada can enter Turkey tariff-free, but Turkish goods still face a tariff barrier in Canada or America, which puts Turkish businesses and exporters at a significant disadvantage. With free trade as the big prize for Brexit, Labour’s support for a customs union makes no sense at all.
I do not know whether you are a cider drinker, Mr Speaker, but say the word Somerset and you inevitably think of cider. Last week I held an event for the cider industry trade, to which I invited all the cider makers from Somerset. There was a great deal of positivity and emphasis on the fact that we can grow in the world market when we leave Europe. Does my hon. Friend agree that yesterday’s decision will help us negotiate unfettered and that that will benefit our south-west industries?
I agree with my hon. Friend. You may well agree, Mr Speaker, that cider is a delicious drink and, if I may be so bold, like me you may have had many a joyous occasion, perhaps in your teenage or university days, where the memories were enhanced precisely because of the consumption of cider.
I am very pleased that companies, particularly in my hon. Friend’s constituency and her region, have a can-do attitude to Brexit and are looking forward to increased global trading opportunities. Brexit presents those opportunities, especially for the food and drink industry.
When I have met elected representatives from places as far apart as Wellington and Washington, they have been very keen to do trade deals with the United Kingdom post-Brexit. Will the Minister confirm that that would not be possible if we remained part of the customs union?
Yes. Remaining in a customs union or the customs union with the EU would not be compatible with having a meaningful, independent trade policy. It would mean that we would have less control than we have now over our trading relationships with other countries. Neither leave nor remain voters would want that.
The hon. Lady has given an extremely clear and helpful answer, but the problem is that we have a lot of questions to get through and I want to accommodate colleagues. If all Ministers could be brief, that would be great.
Car manufacturing in this country is world leading, but the president of the CBI has said that if we leave the customs union it would become extinct. What contingencies do the Government have to replace the 800,000 jobs affected, including the 30,000 jobs in the north-east of England?
I disagree with the hon. Gentleman’s description. The automotive sector is one of our great success stories and the Government will continue to support it. Just this April, Vauxhall announced an investment of more than £100 million in its UK plant, to build the next generation of Vivaro vans. We are seeing more and more success in the sector. We have to support that, and that will be an ambition of our future trade agreement with the EU.
As well as the motor sector, the food sector has expressed concern that rules of origin in the supply chain could have a real impact post-Brexit if we are not part of a customs union. What is the Department’s approach? Is it considering a broader definition of “local origin”? How else will it help those sectors deal with rules of origin post-Brexit?
The hon. Lady is right to highlight the issue of rules of origin with regard to the sector. We want to ensure as limited friction as possible, with a tariff-free arrangement for goods, so that we have the integrated supply chains that are vital to the success of the sector.
Will the Minister comment on the Foreign Secretary’s analysis that the Government’s EU negotiations are heading for “meltdown”? Is that not just another example of the chaos and division at the heart of Government?
I think that the hon. Lady’s interpretation is incorrect. The Government are making—[Interruption.] Let us look at the progress the Government have made. We have agreed an implementation period. Led by the Prime Minister, we secured agreement in December on EU citizens, and we are now in the phase of talking about the exciting future relationship with the European Union. I am looking forward to the opportunities and success that will be led by this Government, not the predictions of failure.
The ministerial team undertakes regular engagements with the international business community, both in the UK and abroad. In addition to regular visits to Brussels the ministerial team has undertaken 27 trips across EU member states this year. That is supported by business engagement conducted by our embassies.
I am grateful to the Minister for her reply. Over the past 50 years, considerable expertise has been built up in the North sea energy sector, which has led to enormous global export opportunities. What steps are the Government taking to ensure that that continues after we leave the EU, with particular emphasis on the emerging offshore wind sector?
The UK has been an active member of the North sea’s energy co-operation initiative since 2010. The aim is to explore the most cost-effective way of developing offshore grid infrastructure to exploit the considerable renewable energy resources in the North and Irish seas. The UK brings significant experience and expertise to this co-operation. Working together with other countries through this initiative will enable us to maximise the considerable business opportunities in the emerging offshore wind sector.
Business is getting more nervous as it watches the Government negotiating more with themselves than with the European Union. Can the Minister confirm that it is Government policy to ensure that there are no new impediments to trade for our world-leading service industries, such as financial services, education, the creative industries and others?
Considerable amounts of data have been released recently showing an increase in confidence in various sectors, whether it is retail, services, manufacturing or construction. We have to build on that, which is why the Government are committed to reducing barriers to trade to enable our businesses, our exporters, our manufacturers and our service sector to thrive outside the European Union.
The Minister referred to the offshore wind sector. She visited my constituency, the port of Immingham and neighbouring Grimsby a couple of weeks ago. Does she agree that the facilities there for serving the offshore sector, and the wider trade deals that could follow Brexit, are greatly to the advantage of northern Lincolnshire?
I was delighted to visit the ports of Immingham and Grimsby at my hon. Friend’s invitation. I was very impressed by the energy estuary, which is located there, and by the wealth of experience and output. It is the energy powerhouse for our nation.
The Conservatives are already arguing about what promises were made, or not made, at the Dispatch Box on Tuesday night; the Cabinet cannot agree a position on the EU; and the Brexit Secretary threatens to resign every other week. What message does that send to the international business community?
Well, let us look at the facts. As I said, CBI data shows an increase in output generally, the OECD revised its forecasts upwards for this year and next, and there is record low unemployment throughout the country. Those are signs of an economy that is confident and optimistic about the future, not one such as the hon. Gentleman describes.
May I gently say that with ingenuity, the hon. Member for Banff and Buchan (David Duguid) could shoehorn in his question about fisheries policy, which is a matter of significant interest to the international business community? He is not obliged to do so, but we can happily give him a go.
The Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Wycombe (Mr Baker), was pleased to meet the National Federation of Fishermen’s Organisations yesterday. He is keen to keep engaging with the sector. We have been absolutely clear that when we leave the EU, we will leave the common fisheries policy. Indeed, from 2020 we will be negotiating as an independent coastal state. Let me reassure my hon. Friend the Member for Banff and Buchan (David Duguid) that our plans for exit from the common fisheries policy are not affected by the backstop discussions.
My Department continues to work closely with the Ministry of Housing, Communities and Local Government, and with other Departments across Government, to ensure that local government is prepared for the potential effects of EU exit. This work includes assessing any funding issues for local government.
Plymouth City Council’s new Labour council has established a Brexit scrutiny committee to look at the impacts of Brexit on vital public services. What conversations is your Department having directly with local authority leaders to help it to understand the impacts on the vital public services that many millions of people rely on?
I do not have a Department, but the Minister, fortunately, does.
Both the Secretary of State and I have met many local authority leaders around the country. We are keen to engage with them so that we understand their concerns about EU exit. Importantly, the UK will continue to participate in the 2014 to 2020 EU programmes until they close, and, thereafter, EU structural funding will be transferred through a UK shared prosperity fund. Comments from local authorities will be very well received.
Since the referendum, and contrary to the predictions at the time of the referendum, we are seeing an increase in exports outpacing imports, an increase in manufacturing, and an increase in sales in particular sectors, such as the car industry. We must build on those successes. Leaving the customs union will enable us to develop an independent trade policy beyond the EU and with other countries, and leaving the single market will give us power and control over our rules and regulations.
My hon. Friend makes a good point. The green section of the withdrawal agreement includes an express indication that, during the implementation period, we will, for the first time in 40 years, have the freedom to negotiate, sign and ratify trade agreements with third countries, opening our markets for British manufacturers, exporters and businesses, which is a surefire way of generating growth, jobs and prosperity.
Will the Secretary of State join me in appreciating the irony inherent in the news today that even businesses set up by Members of his own party are announcing their intention to move business to Ireland and are warning their investors of the uncertainties of Brexit?
Let us also focus on the recent investment decisions that we are hearing about. We have a record number of foreign direct investment projects in the UK. We have just heard that Amazon will be investing more money to create 2,000 or so jobs in the UK. Multinational global companies in pioneering sectors are choosing the UK, after our decision to leave the European Union, to build their businesses and grow jobs.
The Dutch Government are offering advice on Brexit to Dutch businesses. The Irish Government are offering grants to Irish businesses affected by Brexit. In the absence of anything from this Government, the North East England chamber of commerce has produced a checklist. The Secretary of State seems to think it is unreasonable for businesses to demand greater clarity or progress, but could he at least offer them some advice?
(6 years, 6 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I thank the hon. Member for Blaydon (Liz Twist) for opening and contributing to the debate on behalf of the Petitions Committee, and for speaking for the more than 100,000 people who signed the petition. The petition calls for Parliament’s vote on the Brexit deal to include an option to remain in the European Union. I applaud the way in which she presented the heartfelt views of the many people who took the time to sign the petition.
I thank also all those who spoke, whether in support of or in opposition to the petition. My hon. Friend the Member for Bolton West (Chris Green) provided a balanced speech in which he acknowledged the vibrant democracy and lively debate that Brexit provokes and reflects. He has been a principled campaigner not only for his constituents but for the leave campaign. He made a powerful contribution.
The hon. Members for Bath (Wera Hobhouse) and for Hornsey and Wood Green (Catherine West) made thoughtful contributions, too. I was, however, concerned to hear a high number of negative words; the Labour spokesperson, the hon. Member for Sheffield Central (Paul Blomfield), used the words, “catastrophe”, “disaster” and “warfare”. I must challenge the pessimism of hon. Members—I disagree with it and I will talk about that later.
I echo the sentiment of the hon. Member for Sheffield Central in response to the calls for a second referendum by the hon. Member for Bath and the right hon. Member for Carshalton and Wallington (Tom Brake). It is at odds with what their erstwhile leader Nick Clegg pledged in his now famous leaflet that called for a “real referendum” on the European Union, to settle the question once and for all. I do not know about them, but the events of 2016 looked pretty real and authentic to me. In their call for a second referendum, they are slightly at odds with what their previous leader advocated.
I am not going to comment on the speculative and hypothetical theories that are being circulated, but it is clear that the accusations that the right hon. Gentleman puts are not against the official campaign—the organisation that was nominated to lead the leave campaign in the 2016 referendum.
The hon. Member for Hornsey and Wood Green made an interesting and wide-ranging speech about many aspects of the European Union—not least the economic case for remaining in the EU, if it is fair to describe it in that way—but again, I disagree with her sentiments. Output in the service sector is up, consumer spending is up, output in the manufacturing and construction sectors is up, growth forecasts have been revised up, foreign direct investment projects are up and unemployment is at a 40-year low—all that despite Brexit—so I question what economic picture she refers to.
What does the Minister make of the 90% drop in foreign direct investment, which has been commented on in the financial pages of every major newspaper? I am referring not to projects—I noticed that she qualified what she said by referring to projects—but to the 90% drop in FDI. Further, what does she make of the drop in house prices in high-value areas, which has an impact on supply chains?
The hon. Lady can refer to the Department for International Trade figures that I relied on, which show that foreign direct investment projects have been on the increase since the referendum. More broadly, we can also look at the number of global companies that are choosing the UK as an investment location. Most recently, Amazon announced the creation of 2,500 jobs by the end of this year. If that is not a vote of confidence in the British economy, I do not know what is.
Out of respect for the strength of our democracy and the public’s trust in our democratic institutions, I cannot respond in the way that the 100,000-plus signatories to the petition may wish me to. Simply put, remaining in the EU is not an option. I do not say that lightly, as I recognise the strength of feeling about this issue on both sides of the debate. The Government’s position is clear: we will respect the result of the referendum. The UK will not remain a member of the European Union. We are also clear, as a matter of firm policy, that our notification under article 50 will not be withdrawn. We will leave the European Union on 29 March 2019.
Before I turn to Members’ specific questions, let me set out why that is our policy and how it will be reflected in our approach to the vote on the withdrawal agreement and the terms of our future relationship. When voters walked into polling booths on 23 June 2016, they had received through their doors a leaflet from the Government that set out very clearly, with no room for misunderstanding or misinterpretation:
“This is your decision. The Government will implement what you decide.”
That decision was equally clear. Voters were asked:
“Should the United Kingdom remain a member of the European Union”?
On 23 June 2016, 72% of the electorate voted on that question, and 17.4 million of them—52% of those who voted—made a clear and unambiguous decision. They instructed the Government to take the UK out of the EU—to leave.
Although I do not agree with that decision, I accept that that instruction was given. Can the Minister tell me who instructed the Government to leave the customs union and the single market?
To me and to the millions of people who listened to any of the debate in the run-up to that important vote—as I said, there was a record turnout in many constituencies—it is clear that it was said time and again that leaving the European Union would mean leaving the customs union and the single market. Someone would have had to be pretty isolated and switched off to ignore that central feature of the debate.
That is the biggest democratic mandate for a course of action achieved by any Government in the United Kingdom. After the referendum, the House voted by a clear majority to authorise the Prime Minister to trigger article 50, which provided the legal basis for our withdrawal and commenced the leaving process. In the recent general election, more than 80% of people voted for parties committed to respecting the result of the referendum. That is why I must say at this point that the amendments recently tabled by Labour, and the move in its policy, confirm our worst suspicions. Labour’s policy is now for us to remain in the single market and the customs union, and it seems likely to accept free movement of people. That looks like remain, it sounds like remain—yes, it is a policy in favour of remaining in the EU.
The instruction from the referendum cannot be ignored. The Government are clear that the British people voted to leave the EU, so that is what we must do. As the Secretary of State for Exiting the EU noted,
“the electorate voted for a Government to give them a referendum. Parliament voted to hold the referendum, the people voted in that referendum, and we are now honouring the result of that referendum, as we said we would.”—[Official Report, 31 January 2017; Vol. 620, c. 818.]
The Prime Minister said in October:
“This is about more than the decision to leave the EU; it is about whether the public can trust their politicians to put in place the decision they took.”—[Official Report, 23 October 2017; Vol. 630, c. 45.]
The UK can trust this Government to honour the referendum result. We recognise that to do otherwise would be to undermine the decision of the British people, which would have worrying implications for our democracy.
Right hon. and hon. Members may regret the chain of events I have described, and they may regret that there was not a caveat that the result of the referendum could be overturned by Parliament if it did not like the result of the negotiations, but the time to add that caveat was when the European Union Referendum Act 2015 was passed. I note that many Members in the Chamber—the hon. Member for Hornsey and Wood Green, the right hon. Member for Carshalton and Wallington, and the shadow Minister, for instance—voted in favour of passing that Act. That Act did not say that the referendum result would be the best of three, it did not say that, if we did not like the first result, we could go away and rerun the referendum to get the result we wanted, and it did not say that there had to be a certain result. That was the time to make these suggestions—not now, after the public has voted.
Does the Minister not agree that it is in the best interests of the whole country that we come together behind a decision that most people see as a good way forward that will lead to a good future? Does not her insistence on the result of this one Brexit referendum hide all our difficulties as a country? Is not the best way forward for us all to go to the people again and to clarify and confirm the matter so that we can all move forward together? I absolutely believe that we should get that clarification, in the interests of everyone—including the Government.
The hon. Lady’s point is inherently contradictory. On the one hand, she says, “Isn’t it important that we all come together and unite and put our divisions behind us?” I wholeheartedly agree with that sentiment. I urge every Member present to get behind the referendum result and support the Government’s agenda.
On the other hand, however, the hon. Lady says, “Let’s have another vote”—a divisive vote on a contentious question again. I do not see how that sits easily. We have had a vote and the argument, the people have instructed the Government and we will deliver what they have told us to do.
I do not recognise any of the terms used by the right hon. Gentleman. I do not believe in a hard Brexit or a soft Brexit, a hardest possible Brexit or a softest possible Brexit. I believe in Brexit. We are either in the European Union or out of the European Union. We are either in the customs union or out of the customs union, and either in the single market or out of the single market, with either free movement of people or no free movement of people.
I will not, because I need to get on with my speech and I have given way many times. Those are the objectives of the Government and of the Prime Minister.
As I have said, the Government recognise the strength of feeling on this issue. That is why we know that it is incumbent on us to secure a deal that works for all of the United Kingdom and one that Parliament will want to support. As the Prime Minister has said, our decision to leave the EU does not mark an ending; it marks a new beginning for our relationship with our European allies. This is where I diverge from right hon. and hon. Members and their pessimistic view of negotiations so far: we have made significant progress on the negotiations. We have agreed the terms of a time-limited implementation period.
Will the Minister acknowledge that when Labour, echoing the views of business, the trade unions and many across the country, first floated the idea of a transitional period, the Prime Minister said she did not want that, so she defines progress as embracing Labour’s aspirations?
I do not think the Government have embraced Labour’s aspirations for a long time, and long may that continue. The implementation period was requested by the business community and the Government responded in kind. We have agreed the terms of a time-limited implementation period, and on the wider withdrawal agreement we have locked down entire chapters on citizens’ rights and the financial settlement. As to our future relationship, we are confident that we will secure an ambitious future partnership with the EU, covering both a significant economic relationship and a deep security relationship. I look forward to the forthcoming publication of our White Paper, which will set that out in detail.
On the economic side, we want the broadest and deepest possible partnership, covering more sectors and co-operating more fully than any free trade agreement anywhere in the world today. We want the greatest possible tariff and barrier-free trade with our European neighbours as well as the freedom to negotiate our own trade agreements around the world. That is why we are leaving the customs union and the single market. We want to ensure that UK companies have the maximum freedom to trade with and operate within European markets, and to let European businesses do the same in the UK. We therefore propose a unique and ambitious partnership, based on our rules and regulations being the same at the start and on maintaining our commitment to free trade and high standards while allowing for us both to make changes where we want to in a stable and orderly way.
On security, we have been clear that we must do whatever is most practical and pragmatic to provide security for our citizens. We must not allow competition to inhibit our co-operation and jeopardise the security of our citizens.
To return to the detail of the petition, the Government have committed to holding a vote on the final deal in Parliament as soon as possible after agreement has been reached on the withdrawal agreement and the terms of our future relationship, and the negotiations have concluded. The House will know that the Government have tabled an amendment to the European Union (Withdrawal) Bill for consideration this week, which will write into law our existing commitment on the vote on the final deal.
Some reference has been made to amendment 19—the Hailsham amendment—which is of concern. The Government’s amendment in lieu will write into law our existing commitment on the vote in the final deal. The problem with the Hailsham amendment is that it would remove Parliament’s ability to direct the Government in the negotiations—sorry, the amendment we have tabled will remove Parliament’s ability to direct the Government in the negotiations, which is a dangerous element contained in Viscount Hailsham’s amendment. It is important that I get that right.
The Minister has, on the second attempt, defined what the Government’s amendment seeks to do: to remove from Parliament the opportunity to direct the Government in the event of not accepting the deal. Does she not recognise that that would leave the Parliament of the United Kingdom powerless in the most important negotiations facing our country?
I disagree. The Hailsham amendment would set a dangerous constitutional precedent that would limit the Government’s prerogative in the act of international treaty negotiation. That would reduce the flexibility necessary for a successful negotiation, which is essential for the Government if we are to get the best deal possible.
Will the Minister accept that such language may lead to a groundswell for a further referendum? Parliament is not being given the genuine power to direct the negotiation, which is the original meaning of giving sovereignty to Parliament.
The Government have been clear, and our amendment reiterates that clarity, that Parliament will have the power to have a vote on the final deal. That will be a meaningful vote. The hon. Lady talks about parliamentary sovereignty and encouraging scrutiny, and a meaningful vote on the final deal is the best example and biggest opportunity for Parliament to have the very say she talks about on the deal presented and negotiated by the Government.
No, not at all. The Government amendment writes into law our existing commitment on the vote on the final deal. It makes it clear that that is the case. In no way does it reduce the opportunity for and power of Parliament to have a meaningful vote on the final deal.
The Minister is of course right that the Government’s amendment does not remove Parliament’s power to have a vote. However, will she not accept, addressing her remarks to those behind the petition as well, that the Government’s amendment takes all meaning out of the word “meaningful”? It simply provides for Parliament to have a take it or leave it, like it or lump it, no real choice vote.
The Government will present to both Houses of Parliament the terms of the withdrawal agreement as agreed between the EU and the UK. We will also present the terms of our future economic partnership. There will be considerable opportunity for scrutiny of the terms of our final deal, and the motion will be presented to both Chambers. That will provide Parliament with the opportunity to accept or reject the deal—there is nothing more meaningful than that.
On 25 April, the Secretary of State gave evidence to the Exiting the European Union Committee. Its Chair, the right hon. Member for Leeds Central (Hilary Benn), was trying to tease out what the timing was likely to be and, in relation to the details of the final deal, the Secretary of State told us:
“We will know all of it, to the very last bits of the negotiation, way before we are in a position to put it to the House.”
Will the Minister clarify the Government’s present thinking on timescales? When can we expect to get that detailed statement on what the final deal will look like and on what date does she expect to put that to the House for a vote, so we can have an indication as to how many days, weeks, hours or minutes we will have for consideration before that?
We have been very clear, as has Michel Barnier on behalf of the EU, that we hope that by the time of the October European Council we will be in a position to have a full withdrawal agreement agreed between the EU and the UK, and detail on the terms of our future economic partnership.
I will not, because I am running out of time and the hon. Member for Blaydon needs time to respond. When the vote is held, it will cover both the withdrawal agreement and the terms of our future relationship. We expect and intend to achieve a deal that Parliament will want to vote in favour of. Again, I am confident that a deal that hon. Members will be able to support will be presented to Parliament. At the end of the day, it is mutually beneficial to both the UK and the EU to strike such a constructive economic partnership, one that supports our businesses, our citizens and our countries.
The choice that will be offered is not whether we should stay in the EU. We have had that debate. We have heard those arguments. This year is not the time to look into that issue again. This choice is in line with what the European Parliament is entitled to: a yes or no vote on the final deal.
The Government’s approach, which I have set out today, will no doubt disappoint those who have signed this petition, but that should not be misrepresented as ignoring their views. It should be understood as respecting the view of the majority of voters, who chose to exercise their democratic right in a referendum made possible by Parliament, on terms agreed by Parliament. For those who say a vote under the Government’s approach is not meaningful, I ask: what more meaning can there be than to show that Parliament will faithfully enact a decision that we trusted the public to make?
(6 years, 7 months ago)
Commons ChamberThe UK space industry is a global success story, leveraging our expertise and talent to deliver ground-breaking products and services, and we want a UK space industry that captures 10% of the global market by 2030, creating 100,000 new jobs—astronomical levels! Ministers from across the Government have carried out extensive engagement on EU exit, and this has included engagement with the space sector. We have been clear in our desire to continue our involvement in EU space programmes, including Galileo, provided that the UK and UK companies can continue to participate on a fair and open basis.
I thank the Minister for her answer. Whatever the future holds for us in the UK, we are going to have to play to all our strengths, intellectually and economically. She will be aware that Her Majesty’s Government are currently considering the northern part of Sutherland in my constituency as a possible space launch site. Jobs do not exactly grow on the trees in that part of the world, and I would warmly encourage the Government to go down the route of developing the site there. It would mean a great deal to me, to my constituents and to an area that needs the help.
The hon. Gentleman raises a crucial point relating to the development of our domestic space strategy, and Scotland has a strong heritage in the sector. For example, Glasgow has built more satellites in the past two years compared with other European cities, and we also have the Prestwick aerospace park, Strathclyde University and many companies breaking new frontiers. We want the UK to reach space from our own shores, and we recently passed the Space Industry Act 2018, which is the first key step towards licensing the first missions from the UK into space. Brexit will not pose a barrier to our journey into space.
The ancients named the planets after their gods. In affirming that the United Kingdom will continue to lead geo-galactic enterprise and innovation across the continent, will the Minister explain how, goddess-like, she changed her name and tell us what role she intends to play in promoting the United Kingdom in this place, in the Government, on earth and across the cosmos?
My right hon. Friend sets the bar very high. I thank him for his question, for his stellar contributions and his work with the space sector, and particularly for his work on the Space Industry Act, which, as I said, has paved the way for our domestic policy. His reference to my goddess-like status is slightly exaggerated, but I would expect nothing less of him. Even in this space age, it takes a brave woman to follow tradition and change her name following marriage. He is right to suggest that the UK’s historic strength in the space sector will be secured as we leave the European Union and develop our own new partnership with our allies across the channel. It is in that spirit, boldly going where no woman has gone before, that I can tell the House from the Dispatch Box that, as of today, I am pleased to be known as Suella Braverman.
We are delighted for the hon. Lady, and we congratulate her on that. I would also say that, in the 25 years that I have known the right hon. Member for South Holland and The Deepings (Mr Hayes), he has always inhabited his own galaxy and been the most shining star in it.
I should like to add my congratulations to the Minister. With regard to the Galileo programme, it is reported that the procurement process will freeze out UK participation in the programme. I know that the Science Minister met representatives of the European Space Agency on Monday. Will the Minister provide an update on efforts to freeze the procurement and sort out this mess, because 400 jobs in this country are dependent on getting it sorted out?
I thank the right hon. Gentleman for his question. The Government have been clear that there is mutual benefit in the UK’s involvement in Galileo, and we are working hard with our European partners to deliver this outcome. However, as the Secretary of State for Business, Energy and Industrial Strategy made clear in his letter to Ministers in the other 27 EU member states on 19 April, that involvement must be on terms that the UK considers acceptable, including being fair and open to the UK and UK industry. That is why the Prime Minister has announced that she will task engineering and space experts in the UK to develop options for a British global navigation satellite system that would safeguard our position in terms of navigation and timing information.
Successful space businesses such as Airbus provide thousands of jobs in the UK, and their success has been built on an open, free supply-chain system with the EU. How will the Minister obtain the agreement of EU partners for the continuation of that system?
There has been considerable engagement with Airbus. The Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Worcester (Mr Walker), has met representatives from Airbus, and I have visited its site in Portsmouth. We want full access to Galileo, including the crucial secure elements that will help to guide British missiles should they be needed to keep us all safe. This is a commercial matter for Airbus, so it would be inappropriate for me to comment, but I can say that the Government have been in close contact and will continue to work with the entire UK space sector to do all that we can to ensure that the UK is able to contribute fully to the Galileo programme.
As hon. Members will be aware, we have reached a reciprocal agreement with the EU that safeguards the rights of EU citizens in the UK and the rights of UK nationals in the EU. This agreement, highlighted green in the withdrawal agreement, means that citizens who are resident before the end of the implementation period will be able to continue living their lives broadly as they do now. The Government are now focusing on the successful domestic implementation of this agreement, and we are seeking further details on the steps that member states are taking to protect the status of UK nationals resident in the EU.
Following yesterday’s debate about the Windrush generation and the Prime Minister’s decision to hide the whole business behind a cloak of secrecy, what plans does the Minister have to talk to the Home Secretary to ensure that the process to deal with EU nationals will be open and transparent, and to ensure that their right to remain is fully protected, so they do not fear removal at some unknown date in the future?
Like the new Home Secretary’s parents, my parents came to this country in the 1960s as immigrants from Commonwealth countries, and they too could have been caught up in the Windrush episode. I would not be standing here as a proud Member of the Conservative party and of this Government if I had any doubt whatsoever about the commitment of the Prime Minister and the Government to resolving this issue quickly and ensuring it is not repeated.
It is with that confidence that we are learning and implementing the settlement scheme for EU citizens, which will be efficient, simple, user friendly and reliable, to ensure that the rights of EU citizens post Brexit are safeguarded rigorously and robustly.
I admire the Minister’s confidence, but I wonder whether she has had conversations with her colleagues in the Home Office, which has now declared an amnesty on Commonwealth citizens and is having to implement a helpline and support for the Windrush generation. That will extend to others, and the Home Office is also having to introduce, by November, the new fast-route EU citizens settlement programme. Does she seriously believe that, practically, the Home Office and the Government have the resources to deal with this, and can she reassure my constituents?
The UK has been clear that EU citizens in the UK will be able to enforce their rights directly in UK courts, and that will be fully incorporated into UK law in the withdrawal agreement. We have also agreed there will be an independent monitoring authority to oversee the implementation and application of citizens’ rights and of that agreement in the UK. The authority will be able to receive complaints from EU citizens and their family members, and it will be able to conduct inquiries. Those robust mechanisms, rights and frameworks will be given legal status in the withdrawal agreement and in the implementation Bill.
My constituent is currently working on a five-year project in France, and his Bulgarian wife is staying with him. What is her status, post Brexit, to return to stay in the UK with her husband and their two children?
As an EU national married to a UK citizen, if she has been here for the requisite number of years before the implementation period, her rights will be broadly the same as they are now. We want to ensure that she will have the same abilities and rights as she is able to enjoy today.
We have been clear that we are leaving the EU’s customs union and single market in March 2019. Only by doing so will we be able to set out own tariffs on goods, deliver our own trade policy with the rest of the world and open markets for UK businesses. All of these are golden opportunities for our nation that will enable more growth, prosperity and jobs—I am sure my hon. Friend will be looking forward to this opportunity.
I am delighted I have got the services of the dynamic new young Minister. I am very grateful to her for reinforcing the point that if we stay in the customs union, that will mean that Brussels retains control of our trade policy. Will she tell the House and explain to me why, given that we have the sixth largest economy in the world and English is the language of international trade, some people are so nervous about the UK having its own trade policy?
My hon. Friend makes an excellent point. We have so many strengths in our country, which make us well placed for our future outside the EU and its customs union. Some 90% of future global growth will come from outside the EU. We had record high foreign direct investment last year and exports up by 10%, with unemployment down, inflation down and growth up—all of this is despite Brexit.
Does the Minister agree with this from the Institute for Fiscal Studies:
“Get a sense of scale, throw in some simple arithmetic and sprinkle a basic understanding of trade and it is obvious that the economic costs of leaving the customs union must outweigh the benefits”?
Will the excellent Minister explain something to me? Say we have our own trade policy with Nigeria, or another developing country, and its food is coming into this country with no tariff. If that country is suddenly told that it has to pay a tariff of 30%, 40% or 50% because that is the EU external policy, but that it might get that back at some time in future, is this new customs partnership a good idea?
The Government set out the two options in our policy papers last summer, and one of those options will be adopted in due course. Free trade has brought unprecedented prosperity to some of the poorest countries in the world. My hon. Friend referred to developing countries: free trade has lifted more than 1 billion people out of poverty by increasing choice and lowering prices for consumers. It will enable us to forge trade agreements with some of the poorer countries in the world, thereby incentivising them to capitalise and industrialise, and to be sustainable and not dependent on aid. This is a great opportunity.
Is not the reality that trade deals with, for instance, the US and Australia would require concessions on regulatory standards that would create impenetrable trade barriers with Europe? When it comes to trade policy, surely one bird in the hand is better than two in the bush.
By leaving the single market, we will regain control of our laws and regulatory regimes, which will enable us—Parliament and the Government—to set the terms on which we negotiate any future trade deals with other countries. Let us be clear: we have a trade surplus with countries outside the EU. There is excessive and impressive demand for British goods out there. We need to open our markets so that our businesses can expand their sales and capitalise on this opportunity.
It is one thing to negotiate free trade agreements—I very much support that ambition—but it is a completely different thing to benefit from them. To do that, we need a much stronger trade network around the world, particularly throughout Africa, where that network is potentially declining. Will my hon. Friend speak to the Chancellor and the Secretary of State for International Trade to ensure that our international trade network is enhanced and not diminished?
My hon. Friend raises an important point. All those who work at the Department for International Trade are highly focused on how we can forge better links with new markets and new partners through our trade envoys and working groups. This heralds a new beginning and new opportunities for our country; I cannot understand why the Opposition will not welcome it.
Research into the Government’s own EU exit analysis was carried out last month by the House of Commons Library, and it suggests that leaving the customs union and ruling out a new comprehensive EU-UK customs union will create new customs barriers that could cost the economy billions over the next 15 years. Does the Minister accept that assessment? If not, what does the Department now put the cost at?
That analysis does not represent Government policy—it does not assess the Government’s preferred objectives. We are working towards a free trade agreement with the EU that will be as frictionless as possible, so that our businesses can continue to trade with and sell their goods into the EU, and vice versa. That is going to be good for the economy, good for the hon. Gentleman’s constituents and good for the country.
As we design our independent trade policy, we have the chance to explore many options all around the world. Asia-Pacific is a region of great economic importance for the UK, and the Department for International Trade is closely following the progress of the comprehensive and progressive Trans-Pacific partnership.
The hon. and learned Lady raises an important point. There has been extensive consultation, dialogue and discussion between Ministers at the Department for Exiting the EU and diaspora groups. I met members of the Romanian diaspora at the Romanian embassy, and the Under-Secretary, my hon. Friend the Member for Worcester (Mr Walker), has recently met members of the French diaspora. We have this engagement, and it is important. People can rest assured that the position of EU citizens will be safeguarded through the legislation due to come through Parliament in the autumn.
I declare an interest as a trustee of the Liverpool School of Tropical Medicine. Post-doctoral research fellows are a vital part of this country’s research base, and they come from all over the world, including from the EU. What discussions are my right hon. and hon. Friends having with the Home Office to ensure that our future immigration policy is based not on salaries—post-docs often receive pretty miserly salaries compared with their qualifications—but on the skills that we really need in this country?
Businesses in my constituency tell me that they need the preferential trade rates with 88% of countries in the rest of the world that they currently enjoy as part of the EU. How do the Government propose to equal or exceed those preferential rates before our businesses lose contracts to EU competitors?
The EU currently has many international agreements with third countries, and it is the policy, agreed in the withdrawal agreement, that we will adopt a continuity approach, so that all those international agreements to which we are party by virtue of our membership of the EU will continue to apply after we leave the EU.
In Corby and East Northamptonshire, people voted overwhelmingly to leave and therefore to control our own borders, spend our own money, make our own laws and determine our own trade destiny. At this stage, how would my right hon. Friend judge the negotiations against that scorecard?
British Governments have repeatedly, and quite rightly, gone to European Council meetings and come back having persuaded their colleagues in other countries in favour of strong sanctions against Russia and the Putin regime. How will we be able to do that in the future when we are no longer sitting at the table or in the room?
As the Prime Minister made clear in her speech in Munich, our commitment to collaboration and partnership with our European partners on security and defence is unwavering. We have made it clear that we want to develop a new framework with the EU that ensures we can continue to work together to combat the common threats that we face. Our position in NATO obviously remains unchanged, and that underpins our worldwide influence in security and defence.
One of the key players in discussing and settling the EU financial settlement is the European Court of Auditors. As a member state, we have Phil Wynn Owen as our representative, but as it stands, he is set to leave the European Court of Auditors come 29 March 2019. Will the Secretary of State add to his negotiating list the need to make sure we have a full British representative on the European Court of Auditors during the transition period?
(6 years, 9 months ago)
Commons ChamberThe Prime Minister reaffirmed her commitment to the Northern Ireland-Ireland border in her Mansion House speech, recognising the unique circumstances of Northern Ireland and our shared commitment to avoiding a hard border. The joint report, agreed in December, also made clear our intention to avoid a hard border and physical infrastructure, or related checks and controls, between Northern Ireland and Ireland. We have always been clear that we will not agree anything that threatens the constitutional or economic integrity of the United Kingdom.
Given that the Government have said the border will remain friction free or frictionless, and that there will be no border in the Irish sea, the question many of us continue to ask is how can this happen?
The Government have made clear their unwavering commitment to three guiding principles in relation to Northern Ireland and the Republic: there should be no hard border between north and south; the Belfast agreement must be honoured; and the constitutional and economic integrity of the United Kingdom must remain unimpaired. The Prime Minister set out, most recently in her Mansion House speech, how that might be achieved. We are also building on the options set out in the August position papers, which set out practical options for how we might take this forward.
How do the Government expect to avoid a hard border if they are ruling out any form of customs union?
It is the unwavering commitment of the Government that the economic integrity of the United Kingdom remains intact. If the United Kingdom is leaving the customs union, so is Northern Ireland.
I am certain my hon. Friend has seen the paper “Smart Border 2.0”, which was prepared for the European Parliament’s constitutional affairs committee. It does not provide the whole solution, but it does show how technology will help to solve this problem. Does she agree that this will solve it and ensure the integrity of the United Kingdom?
I thank my hon. Friend for his question. The report to which he refers is an interesting document, but it does not go as far as the commitment made by the United Kingdom. Our unwavering commitment is to not introduce any physical infrastructure at the border. We have explicitly ruled that out. The report is interesting, but it does not go all the way.
May I make a plea to the Minister to recognise that this is about much more than just the movement of goods or services? This is about a cultural issue and the movement of people—it is about all of that. The symbolism is enormous and the Minister needs to ensure that that is recognised, time after time in all the talks she has, to reassure the people of both parts of Ireland.
The common travel agreement is absolutely fundamental to any future arrangement, ensuring and enabling the free flow of people across the border. It is vital that that forms part of any future arrangement.
I do not think that Ministers quite appreciate the level of concern across the House on this issue. Whenever I have visited the Irish border, I have come face to face with the reality of what the installation of any cameras or any infrastructure would mean. It would not last a day, Minister; it would not last a day. Why will the Secretary of State not even visit the border, so that he can appreciate why people are so concerned? I do not know whether she has been, but will she encourage the Secretary of State to do so?
We do not underestimate the importance of this issue. My fellow Minister, the Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Worcester (Mr Walker), has been to the border and engaged regularly with Members from Northern Ireland and those involved in this issue. The Secretary of State has also been to the border, prior to his appointment to this position, and is very much apprised of the sensitivities and importance of this critical issue.
I think that says all we need to hear. What we want to know is how can we ensure an open border without a customs union? We have looked everywhere we can think of to identify a border anywhere on earth that is open and has no customs union. The Prime Minister referred to the border between the United States and Canada. Can the Minister confirm that the Prime Minister has ruled that out as an option, and can she tell us where on earth there is a border that is open with no customs union?
The hon. Lady really needs to go back and listen to what the Prime Minister said at Mansion House. She spent a lot of time looking at this issue and is very much interested in finding solutions. There are many proposals on the table that would be viable and workable, and the Government are in the process of considering them. A trusted trader scheme, exemptions, authorised economic operator arrangements —all these options are on the table and are subject to the negotiations.
If the UK were to remain in the customs union, we would be unable to implement our own trade deals or set our own tariffs. The EU would be able to offer other countries access to our market, but we would not necessarily get access to other countries’ markets in return. This would not give us control over our trade policy and it would not respect the referendum result. We have a great chance for the first time in decades to develop a new trade policy by leaving the EU customs union.
That is one of the big prizes of Brexit: the freedom and chance to develop and sign new free trade deals around the world outside the EU, and it is our commitment that once we leave the EU we will be able to enjoy that freedom to the fullest.
Is the Minister aware that there are a large number of small and medium-sized enterprises in Norfolk that are absolutely determined to increase their exports to new markets? These are dynamic, forward-thinking companies. Further to the question asked by my hon. Friend the Member for Dumfries and Galloway (Mr Jack), what progress is being made with the EU to ensure that we are actually able to negotiate bilateral treaties with third countries during the transition?
It has been the clear commitment of this Government that during the implementation period we will be able to take concrete steps forward in negotiating and signing new free trade agreements with countries outside the EU, although of course they would not come into force until after the end of the implementation period. My hon. Friend is right that leaving the customs union and forging a new trade policy is a chance to open up to British businesses new markets that they have not previously had access to. That will help consumers, increase investment and only lead to prosperity.
I thank my hon. Friend for her answers. India currently enjoys a growth rate of 7.5% and is on course to be the fifth biggest economy in the world. Given our cultural links and shared history with our friends in India, does my right hon. Friend—my hon. Friend; I am getting ahead of myself—agree that we have an opportunity to forge a trade deal with India, which will be excellent news for the UK and India?
My hon. Friend is absolutely right. India represents a great opportunity in trade for Britain and British consumers and for our Indian counterparts. It is no coincidence that the Prime Minister made a point of visiting India early on in her premiership. The Department for International Trade has recently completed a trade audit with India to look at the particular barriers, and the joint economic and trade committee has decided to look at four sectors—food, life sciences, IT and services—to see where opportunities can be explored.
At a recent meeting in this place, the director general of the CBI highlighted that Germany sells 4.7 times more to China than the UK does. Therefore, being in a customs union does not prevent countries from extending trade with global partners. Does the Minister agree with her?
Well, being in the customs union also puts up prices for consumers in food, footwear and clothes. I am often surprised that the Opposition do not champion the benefits of leaving the customs union, which this Government are doing.
I do not often cite the International Trade Secretary favourably, but he was right when he was in China with the Prime Minister in February and accepted that a customs union with the EU “self-evidently” does not prevent us from increasing bilateral trade with countries such as China. What assessment have the Government made of the comparative benefits for the UK of being in a customs union and not being in a customs union when it comes to trade with non-EU countries?
As we have a trade deficit with the EU that is increasing—it is currently £70 billion—and a trade surplus with the rest of the world that is growing, our prospects for increased demand clearly come from the rest of the world, where some of the fastest-growing economies lie. Our future prosperity lies with trade both with the EU but, very importantly, with countries outside the EU.
Last week, I met the chief executive of the Hull and Humber chamber of commerce, Ian Kelly, who expressed support for the concept of exploring free port status for the Humber ports. Is this yet another opportunity that the Government will have after Brexit?
With my fellow Minister, my hon. Friend the Member for Wycombe (Mr Baker), I was pleased to meet my hon. Friend the Member for Cleethorpes (Martin Vickers) to discuss the issue with the local port authority from his constituency. Although this is a very interesting opportunity that flows from taking control of our trade policy, it is one of many options that the Government are considering.
May I ask the Secretary of State directly whether he has seen the investigation from the Department for Business, Energy and Industrial Strategy that apparently shows the disastrous effect that Brexit will have on manufacturing all over the country, but particularly in the north and the regions? Has he seen it, and, if he has, is he colluding to keep it private?
(6 years, 10 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Thank you, Mr Sharma, for your chairmanship of today’s very interesting, fascinating and useful debate. I am grateful to my hon. Friend the Member for Eddisbury (Antoinette Sandbach) for raising this issue and securing a debate on the alternatives to a no-deal outcome in the EU negotiations. She has raised this topic on many occasions in the House, both in Westminster Hall and in the main Chamber. I gladly respond to her points, and those raised by many hon. Friends and hon. Members this morning.
My hon. Friend raised a number of ways in which the UK could leave the EU, including becoming a member of EFTA, having a Canadian-style deal with the EU, the Government’s preferred objective of creating a deep and special partnership with the EU, and the very unlikely scenario where we leave the EU without a deal. The Government are confident that we can negotiate a close relationship with the EU that is mutually beneficial to the UK and the EU. Alternatives, such as EFTA and the EU-Canada comprehensive economic and trade agreement, are not outcomes that the UK is pursuing. As the Prime Minister set out in her Florence speech, we want to
“be creative as well as practical in designing an ambitious economic partnership”
that works for both the UK and the EU. We believe that that is a reasonable expectation.
Does the Minister support the implementation period, or does she back the letter, published this morning by her colleagues, that said that the implementation period should be based on WTO principles?
The hon. Gentleman pre-empts my comments. The implementation period has been set out and explained in considerable detail by the Secretary of State, and I will come to it later. If he will bear with me, I will deal with his point in my later comments.
We believe that it is reasonable to expect that we can secure an ambitious new economic partnership with the EU, because we start from an unprecedented position: one of convergence. We have the same rules, regulations and values as the EU. That starting point is unmatched by any of the other options explored today—a vital distinction, which makes the prospects of securing a mutually beneficial agreement high. That is why the Government continue to seek that new deep and special partnership with the EU.
Given that much of this morning’s debate has centred on the scenario where the UK leaves the EU without a deal, it is worth setting out the Government’s position on that. As the Secretary of State and my colleagues have clearly explained, the Government are not aiming for—nor do we want—a no-deal outcome. We want to secure a new free trade agreement with the European Union that benefits both parties, our citizens and our economies, and that respects the result of the EU referendum.
There are grounds for optimism that that is eminently possible. We have achieved considerable success in the first phase of the negotiations. We have secured joint agreement on issues previously thought to be insoluble. I am confident that we can build on that success with an agreement about the implementation period, as set out recently by the Secretary of State in his speech at Teesside, and agree on the future relationship with the EU.
As my departmental colleague, my hon. Friend the Member for Wycombe (Mr Baker), the Under-Secretary of State, said in response to a question asked by my hon. Friend the Member for Eddisbury in the House:
“We approach the negotiations anticipating success and a good deal for…the UK”.—[Official Report, 1 February 2018; Vol. 635, c. 957.]
However, let me be clear: although it is in the interests of both the UK and the EU to secure that good deal, we have a duty to plan for all outcomes, including one where no agreement is reached. The Government continue to prepare responsibly for a range of results from the negotiation, including the unlikely scenario in which no agreement can be reached. In reflection of those preparations, the Treasury has already given Departments nearly £700 million to prepare for Brexit, and is making an additional £3 billion of funding available over the next two years to ensure that we are prepared for every outcome.
The Minister remarked that the Government are, quite rightly, looking at all potential outcomes. In the unlikely scenario that there is no deal, the Government must surely prepare for what would ameliorate the economic damage that has been shown by the Government’s economic impact studies. Would it not be sensible to make sure that we have preparations for other solutions as well, one of which could be EFTA-EEA?
As I will come on to, the Government do not think that the EFTA-EEA option meets the objectives that my hon. Friend sets out, because it falls short of what we are seeking in our new arrangement with the EU on many fronts. I will elaborate on that in a few moments.
The first alternative to a no-deal scenario, and the Government’s preferred outcome, is a new settlement with the EU, as set out by the Prime Minister in her Lancaster House and Florence speeches. As she explained, we seek
“a new framework that allows for a close economic partnership”
between the two parties and that honours the instruction of the British people to take back control of our laws, borders and money.
As an existing member state, we share fundamental beliefs in fair competition, consumer rights and strong regulatory standards. Our position as the EU’s largest trading partner means that finding a meaningful deal along those lines is in both our interests. As my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) pointed out, the current trade deficit between the UK and the EU means that tariff-free trade benefits not only UK businesses and citizens, but EU businesses and employees who benefit from cross-channel commerce.
Will the Minister explain what the Government’s approach is towards the service sector and non-tariff barriers?
As my hon. Friend rightly pointed out, 80% of the UK economy is based on services, so it is important that we seek an agreement that will further enhance the possibility for our services to be exchanged, and for collaboration to continue. Reducing non-tariff barriers is, of course, a priority in any agreement that we seek with the EU, and is something I believe would be possible.
We will agree a comprehensive economic partnership, underpinned by high standards and a practical approach to regulation, that ensures continued trade and prosperity between the UK and the EU, based on mutual recognition. Again, the Secretary of State set that out in his speech yesterday. That partnership will aim for as frictionless as possible trade between the parties and will ensure access to each other’s markets, so that our consumers and businesses can benefit.
On security, the Prime Minister said last week that we are proposing a new partnership on future security, law enforcement and criminal justice co-operation—a strategic agreement treaty that will allow us to work together with the EU to promote our shared interests globally. That new partnership is ambitious and will not only reflect our history and the practical benefits of co-operation in tackling shared threats, but demonstrate the UK’s genuine commitment to maintaining a secure and prosperous Europe.
We are not pursuing EEA membership or aiming simply to copy the Canada-EU free trade agreement. The Norway option is not for the UK. We seek a collaboration on trade and security. We want to enable control over migration, autonomy over our laws and regulations, and the freedom to implement our own independent trade policy with the rest of the world. Only the deal that this Government are aiming for strikes that balance, which is why that is the best outcome for the UK and the EU.
As part of the deal between the EU and the UK, we are seeking a strictly time-limited implementation period.
The Minister seeks to rule out a Norway option as not satisfactory. Will she also rule out a WTO option?
We are not working towards a no-deal scenario, if that is what my hon. Friend is implying. As I have set out just now, we want an agreement based on tariff-free access, reducing our non-tariff barriers and with the ability to strike our own free trade agreements, but it is clear that we are a founding member of the WTO and plan to take up our seat at that organisation in due course.
The Minister has set out all the reasons why the Norway option does not work, but has also said that the UK wants collaboration on trade and security; access for services, which are a vital part of the economy; the ability to strike our own free trade agreements; and no ECJ jurisdiction. The Norway option ticks every one of those boxes.
I disagree with the hon. Gentleman because Norway, although part of the EEA and EFTA, does not have much say on rules and regulations that come to it through the EEA agreement.
One last time—I am running out of time and need to finish my comments.
Norway does have a say on rules and regulations. It sits in various standard-making bodies, for example, and contributes to legislation. It does not have a full vote, but then we are leaving the single market so we will need to have a new relationship with that single market. It gives market access, which is, as the Minister has said, so attractive. Will she again consider that that may be worth investigating—perhaps not in its entirety, but elements could be of interest?
Norway does not have a seat in the European Parliament. It does not have a vote on whether regulations coming through the EEA agreement apply to it or not. It generally has to follow those obligations in line with its obligations under the EEA agreement. To diverge from that agreement would be a breach and would therefore lead to questions about its membership and subscription to that agreement. That is a fundamental point that makes membership of the EEA and the Norway option not attractive for the UK.
In response to calls from business, the implementation period is there to benefit businesses and individuals, so that they avoid the need for two sets of changes. It will also give them more time to adjust to the new future partnership.
I will not, unfortunately. I have only six minutes and I have quite a lot to get through. I am sorry; I cannot.
The implementation period will also ensure that businesses have time to adapt to the new relationship between the UK and the EU. Crucially, only under a deal with the EU and the UK can this essential period take shape. None of the alternatives suggested in today’s debate can offer that level of continuity and clarity to businesses and citizens in the short term. That is why the deal that the Government are seeking is the best alternative to a no deal and is an alternative that we are confident of securing.
On EFTA—
Will the Minister give way? There is a tradition of accepting an intervention from a shadow Minister.
I must continue because I do not have much time, and EFTA has been a big issue in this debate. I will give way if I have time after my comments—I hope the hon. Gentleman will have patience with me.
Several hon. Members have raised EFTA membership today as the main alternative. Although we recognise the benefits of ensuring continuity in our relationships with the EFTA states, we have no plans to seek membership of the EFTA agreement for four key reasons.
First, EFTA is a trading bloc of four countries. Membership of EFTA does not in itself deliver any market access to the EU. Norway, Iceland and Liechtenstein effectively participate in the EU single market by virtue of the EEA agreement. That would not deliver more direct control over decisions affecting the UK, nor would it deliver control over migration, which is a key aspect of our leaving the EU.
Switzerland participates in some areas of the single market through a series of bilateral agreements with the EU, but many of those do not cover the areas in which the UK has interests. In any case, the Government have made clear on a number of occasions that we are not pursuing an off-the-shelf arrangement; we are not copying and pasting other agreements. We are seeking a particular bespoke agreement relevant to the UK’s economy. The model I have been discussing does not strike the right balance on democratic control and mutual market access that we want in our future partnership with the EU.
Secondly, our ambition as a global trading nation goes beyond the scope of EFTA’s existing free trade agreements with third countries. EFTA’s FTAs are not suited to the size and type of the economy in Britain. They are not with the larger economies of the world—countries and economies with whom we would wish to be pursuing new economic partnerships. They are not in the sectors where our economy has strengths, which are areas in which we would want to pursue new agreements. Leaving the EU offers the opportunity to negotiate our own free trade agreements and to be a positive and powerful force for free trade in the world.
It is also worth mentioning that membership of EFTA would not be the quick and easy solution that some here have argued. Even if EFTA members were to welcome us back into EFTA, we would not have immediate or automatic access to their 27 FTAs. Our entry into each one would need to be negotiated individually with the third countries involved.
Thirdly, membership of EFTA means accepting free movement between EFTA member countries, as the EFTA convention provides for free movement of EFTA nationals. Liechtenstein has been raised as a derogation, but it is not a comparable example. Liechtenstein is a country with a population that numbers less than that in almost every constituency in the UK, at 37,000. It is very difficult to see how the example of Liechtenstein can be applied to the UK, with its population of 65 million.
Finally, although we want to maintain our deep and historic relationships with the EFTA states, the UK is in many ways different from those countries. The EFTA states have a combined population of 14 million people, compared with our population of 65 million. The EFTA bloc’s combined GDP in 2015 was around £710 billion, in comparison with the UK’s £1.9 trillion. The UK’s participation in EFTA would fundamentally change the nature of that group.
Minister, would you bring your remarks to a close?
I note your comments, Mr Sharma. I thank my hon. Friend the Member for Eddisbury for raising this issue for debate today.