European Union (Withdrawal) Bill

Tom Brake Excerpts

Committee: 8th sitting: House of Commons
Wednesday 20th December 2017 Commons Chamber

[Mr Leslie]

We should not assume that those watching our proceedings, or reading them in Hansard, entirely trust the Government or Members of Parliament simply to know and understand what is happening. People outside have a right to know, and of course we expect businesses and members of the public to interpret the legislation we pass.

This is a signal moment, and the right hon. and learned Member for Beaconsfield (Mr Grieve) rightly pointed out on, I think, day 2 in Committee that we are about to copy and paste a phenomenal body of legislation, which has accrued over decades, from the EU corpus of law into the British legal context. That requires us to pause for a moment to think about whether we are properly articulating to our constituents and others what exactly is happening in this process.

[Tom Brake (Carshalton and Wallington) (LD)]

The hon. Gentleman refers to trust in the Government. Does he think our constituents will be reassured by the Prime Minister’s confirmation on Monday that the Cabinet’s discussions on our future trade deals do not involve the Cabinet having any assessment of the impact of different potential models?

[Mr Leslie]

Governments would normally be expected to have information and facts, with evidence being collected and presented and with an assessment made based on information that has been analysed and digested in a professional way, but it appears that, although we were told they exist, the impact assessments do not actually exist but are sectoral analyses. What is the difference between an impact assessment and a sectoral analysis? Well, we have been discussing that for quite some time.

Returning to EU retained legislation, the right hon. and learned Member for Beaconsfield rightly pointed out that we have lived with important legal understandings, such as on equalities law and environmental law, for a number of decades. Those understandings have been tenets of our expectations of the civilised society in which we live. Of course, they will now be transferred from European law into UK law. If they had originated in this House, they would have been enacted in primary legislation and any changes would have had to be made through primary legislation. But the Government’s proposal is to take this new category of EU retained law and bring it into UK law, and it will not have the same status as primary legislation. In many ways, it will be repealable or amendable, often by secondary legislation—by statutory instrument. This is not a point about Brexit; it is about the process of transposition. It is important that the public know what is going on when we are doing this. If a transfer is taking place, information should be set out in the explanatory notes, not just about the technical details, but about the weight that those legal rights will have once they come back into UK law.

There are a number of other aspects to this—

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[Paul Blomfield]

We are probably straying on to dangerous territory if we start talking about the content, such are the rules surrounding the documents until such time as they are made public, but those of us who have been there know that they provide no analysis and no impact assessment. So it was no surprise when the Secretary of State told the Brexit Committee last Wednesday that the Government had undertaken “no quantitative assessment” of the impact of leaving the customs union—just one of the policy choices we face. Yet just a few hours later, in a room just a few yards away, the Chancellor told the Treasury Committee that the Government had

“modelled and analysed a wide range of potential alternative structures between the EU and the UK, potential alternative arrangements and agreements that might be made.”

The Chancellor’s answer was developed in oral questions last Thursday by the Under-Secretary of State for Exiting the European Union, the hon. Member for Worcester (Mr Walker), who is in his place. He said:

“Our sectoral analysis is made up of a wide mix of qualitative and quantitative analyses examining activity across sectors, regulatory and trade frameworks and the views of stakeholders.”—[Official Report, 14 December 2017; Vol. 633, c. 588.]

Let us bear in mind that the Secretary of State had said that no quantitative assessment has been undertaken on the impact of leaving the customs union. So in this

“qualitative and quantitative analysis of regulatory and trade frameworks”

have the Government for some reason exempted the customs union?

[Tom Brake]

Is the hon. Gentleman confused, as I am, about the reasons why the Government seem to have this problem—I do not know whether it is an ideological objection—with conducting impact assessments? We heard from the Prime Minister on Monday that Ministers are sitting down to discuss our future trading relationship with the European Union without having in front of them any impact assessments on what the different economic impacts of these models might be. How irresponsible is that?

[Paul Blomfield]

The worry is that either they are not conducting them or they are conducting them and not sharing them in the way that was required.

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[Mr Dhesi]

I thank the hon. Gentleman for that, but I would point out to him that we already have trade agreements, which is why in a previous exchange in Parliament I pointed out that we need to ensure that we have increased access arrangements and that we continue with the existing access agreements for developing countries.

[Tom Brake]

Does the hon. Gentleman share my concern that Mars is clearly able to make an assessment of the impact of the different types of economic arrangements we might have with the EU after we leave, whereas the Government are not? We heard this in an intervention from the hon. Member for Gloucester (Richard Graham), who is no longer in his place; he completely disregards any value in impact assessments whatsoever. Why can Mars do it but the Government cannot?

[Mr Dhesi]

I thank the right hon. Gentleman for making that intervention, because if Mars can do it, I am sure we can do it within Parliament. The Government’s approach is, in essence, keeping business in the dark.

In conclusion, a cliff edge scenario, with us sleepwalking into no deal, which is where this Government seem to be heading, would be severely damaging to us and our economy. We need to change course and avoid this fate of no deal. A starting point on that would be clear and detailed impact assessments.

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[Mr Leslie]

That is indeed the simple solution. I was building towards that crescendo, but there is always somebody who steals my punchline. That is effectively the conclusion that I have reached. Before I do reach it, there is another important measure, new clause 8, that English local authorities have been keen to see in the Bill. Currently, they have consultative rights on those areas of policy that are currently decided within the European Union framework by virtue of their membership of something called the Committee of the Regions. I know that some Government Members may baulk at that as some sort of bureaucratic committee that has no purpose, but many local authorities value the voice that they have through that committee into the policymaking process at European level. The question they are asking is: will they still have those same consultative rights when those areas of policy are brought back into a UK context? It is a fair question and I hope that the Local Government Association’s points will be addressed.

The main issue that I want to discuss is new clause 13, which relates to the customs union. It would ensure that we do not get past exit day without new legislation that allows the UK the option to remain a member of the customs union—in other words, the EU common customs tariff and common commercial policy. We must be absolutely crystal clear about this: ditching the most efficient tariff-free, frictionless free trade area in the world is what we are on the brink of doing for something that will inevitably—inevitably—be inferior. The referendum ballot paper did not include that question and put it in front of our electors. What we have seen is the Prime Minister’s interpretation of the result of that referendum, but that does not have to be Parliament’s interpretation.

If we find ourselves messing up the way that the UK border operates, the Irish land border, our ports and our airports, then vast swathes of our businesses and our economy face very, very significant disruption. Indeed, customs is, potentially, the overnight cliff-edge issue that will hit the headlines if we get this wrong, particularly if we have no deal—that hard Brexit.

Let us consider the issues at stake: last year, goods worth £382 billion were traded between the UK and the European Union. That is virtually the same amount as the UK traded with the rest of the world, so we are talking about trade of half of our goods. In fact, the system currently works so well across the 28 countries— 500 million people—that professionals talk not about exports and imports, because the movement of goods and services is so seamless and frictionless, but about arrivals and dispatches. It is as simple as that. That is how businesses regard the inventory available to many of them through the warehouses across the European Union. For car manufacturers in the UK, selling a car to a customer in Birmingham is just as simple as selling one in Berlin or Brussels. Fewer than 1% of the lorries that go through Dover or the channel tunnel—the main conduits for goods and traffic—require checks, so it is a smooth and seamless process at present.

[Tom Brake]

It is indeed. I do not know whether the hon. Gentleman has visited Dover port. If he has, he will know that the site has no room available for customs checks. If he has visited the channel tunnel, he will also know that there is no capacity whatever to do any customs checks there.

[Mr Leslie]

Yes, and we all presumed that some of the £3.7 billion of preparations money would be spent on tarmacking fields around those areas in preparation for lorry parks and the overflow from the possible queues on the motorways.

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[Mr Leslie]

Absolutely. If we can maintain full alignment, which was the phrase used in that agreement, that is essentially the same thing as a customs union arrangement. However, there was a caveat in that Ministers said that it would apply unless specific solutions can be found for divergence that they might want to see. That is a bit like the European negotiator’s way of saying, “Come on then, do your best—let’s have a look at what you can dream up.” The worry that I had when the Prime Minister returned was that her interpretation of full alignment was to reference the old list within the Good Friday agreement that merely talked about areas such as agriculture, energy and tourism but excluded trade in goods, which is a pretty big part of the issue at the border. I do not think the European Union signed up to this thinking that there was an exclusion for trade in goods. It is a question of “watch and wait” until the situation unravels.

[Tom Brake]

May I bring the hon. Gentleman back to another border that he referred to, namely that between Norway and Sweden? Our Secretary of State for Transport is on record as saying that that is a completely frictionless border, across which things move with ease. Is the hon. Gentleman aware that that is not the case? I think it was the Swedish trade body that said Norway is the hardest country to trade with.

[Mr Leslie]

I have not seen that information, but there are all sorts of bits of infrastructure involved. There are separate roads and lanes for the processing of different things. As I have said, I am sure that the Minister will have solutions for all those problems.

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[Mr Grieve]

It is a pleasure to participate in this debate, and it was also a pleasure to listen to the hon. Member for Nottingham East (Mr Leslie) opening it. He will not be surprised to hear that I entirely share many of his views about the merits of staying in the customs union, and the lack of advantage of leaving it. However, there is a time and place for everything. The customs union and the merits or otherwise of the single market are all matters that the House will have to debate in due course. In the meantime, we will have to see what the Government come up with in the negotiations, and what they return to the House with at the end of them, but I do not intend to get bogged down in that this afternoon.

[Tom Brake]

Will the right hon. and learned Gentleman give way?

[Mr Grieve]

I will give way in a moment.

I made it quite clear on Second Reading that the purpose of the Bill relates to process, not outcome, and I have tried really rigorously to confine my remarks to the process issue, although the extent to which people have kept interpreting my concerns about process as an intention to sabotage our leaving the EU altogether, which I have never at any stage sought to do, is remarkable. I will now give way to the right hon. Gentleman, but I must tell him that I want to get on to the meat of this subject, rather than talking about those other matters.

[Tom Brake]

I understand the right hon. and learned Gentleman’s point about focusing on process rather than outcome, but does he agree that given that Cabinet Ministers are now sitting down to discuss the outcome, it would be helpful for Parliament also to use the opportunities available to us to express our views about what the outcome should be?

[Mr Grieve]

Parliament should certainly be debating these matters. Individual Members will decide whether they want to use the opportunity of this Committee stage for that purpose, but I want to confine myself strictly to the issues in front of us.

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[Stephen Gethins]

My hon. Friend makes an excellent point, and I agree. Having had a look at these assessments, I am not entirely sure what the fuss is about. As we undergo the biggest economic and constitutional upheaval since the end of the war, we have a flimsy report covering 39 industries, not 51, as I was told more than a year ago. The information I have seen would be pretty accessible to the public, and it strikes me that the only reason we have not seen the assessments is that this is a Government who do not know what they are doing, who have not done their homework and who are prepared to drag us and the industries into the abyss. It strikes me that this is more to do with internal Conservative party feuding and less to do with our economy.

[Tom Brake]

Does the hon. Gentleman agree that perhaps another explanation for all the rigmarole surrounding access to these reports is that the Government want to give the impression that they have actually done a huge amount of work? That is a Trumpian way to describe the amount of effort that has gone into producing these assessments, but, in fact, when we turned up to look at the assessments, they were nothing more than a damp squib and nothing more than could be found by googling for five minutes.

[Stephen Gethins]

The right hon. Gentleman makes a good point. Huge efforts have gone into covering up these assessments and the fact that this is a flimsy job indeed. The point I was making again highlights why we need to protect our place in the single market. That is the primary concern for businesses that benefit from it, and it was not on the ballot. Vote Leave did make a number of promises, one of them being that Scotland would get power over immigration. That would help towards ensuring that Scotland could remain part of the single market. What Scottish National party Members have said is that we are still open to compromise. We have tabled new clause 45 and are clear that the Act must in no way give the UK Government a green light to drag the UK out of the single market—that was never on the ballot, and we have to be clear on that. We were promised powers over immigration and that would go a long way, if the UK does not want to take our compromise as a whole, to Scotland remaining part of the single market. We also support new clause 9, which would have the same effect.

We are about to spend £40 billion for a worse deal with the European Union, at a time when a Tory Government are cutting public services across the UK. Let me touch briefly on a second referendum. We think that people should have a right to look at the outcome of the negotiation. I have a great deal of sympathy for the Liberal Democrat calls for another referendum. However, I say to our Liberal Democrat colleagues in the spirit of friendship that the immediate challenge must be for us to work together and help the UK stay in the single market and customs union. That is the compromise we have suggested. It is not my preferred option—my preferred option would be for Scotland to remain part of the EU—but that is the nature of compromise; we all have a little bit of give and take in this process.

It should be said, however, that a referendum on the terms of the Brexit deal will be difficult to resist if the uncertainty around negotiations persists. Any second referendum must not replicate the 2016 campaign, and it is essential that Scotland’s constitutional place is protected in a second referendum. We do not want to be in circumstances where we are dragged out against our will for a second time.

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[The Temporary Chairman (Sir David Amess)]

Order. The debate will finish at 9.10 pm, and there are still 17 Members wishing to speak. Interventions will shorten the time even further. I very much want to call everyone. I have no powers in this regard, but I appeal to colleagues to try to limit their speeches to five minutes so that everyone can be called. I hope we shall see a good example of that now from Mr Tom Brake.

[Tom Brake]

Thank you, Sir David. Your timing is perfect.

It is a pleasure to follow the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith). It enables me to remind him of the promises that were made during the referendum about the £350 million a week that would be available to the NHS post-Brexit. I am as imbued with the good spirit of Christmas as others, Sir David, and I will therefore seek to limit my comments to the five minutes that you have specified.

A number of Members referred to what the Prime Minister said to the Liaison Committee in connection with amendment 7. I understand that she was asked no fewer than five times to confirm that she would provide a meaningful vote, by which I mean a vote that would take place on a Bill that will be amendable and would allow the debate to take place at a time when the Government could be instructed to go back and negotiate some more.

Let me briefly comment on new clauses 13 and 54. New clause 13 would ensure that we stayed in the customs union. That, I think, remains the only solution to the Ireland-Northern Ireland border issue apart from a border in the Irish Sea, which I do not think the Democratic Unionist party would support.

[Jim Shannon (Strangford) (DUP)]

Never.

[Tom Brake]

As for new clause 54, it would be strange if Ministers did not want to support the Prime Minister’s words. I suspect that, if they did not support them in tonight’s vote, that would amount to a rebellion. We know that had the Foreign Secretary and the Secretary of State for Environment, Food and Rural Affairs been here, they might have led such a rebellion, but I doubt whether junior Ministers would want to be responsible for a rebellion that would set aside what the Prime Minister said in her Florence speech.

My main purpose is to refer to amendment 120, tabled by the Liberal Democrats, which amounts to a request for a vote on the deal. I am sure that, if there were time, I would give way to a great many interventions about the will of the people, but the will of the people as expressed on 23 June last year is not necessarily the will of the people as expressed today. It is because I respect the will of the people that I believe that the people should be given the chance to vote on the final deal that the Prime Minister secures. There is absolutely no doubt that the final deal will look very different from the deal that they were offered on 23 June last year.

I promise not to refer too often to the £350 million that was offered on the side of the bus, but people will remember that pledge, and it is not going to be honoured. They will also remember a pledge about a significant cut in immigration. There has, in fact, been a drop in immigration, but I think that it has happened because the UK economy has shrunk rather than for any other reason. It has certainly not happened in respect of non-EU citizens coming to the United Kingdom, because over many years the level of non-EU immigration has remained consistently high—and, of course, every Member will know that that is something of which our Government are in complete control.

Finally, there were the threats made about the 5 million people who were supposedly going to arrive in the UK as a result of our membership of the EU, and our Foreign Secretary who talked about opening the borders to Turkey and the claim that there would be marauding gangs of armed criminals out and about threatening people in our towns and villages.

I welcome the fact that the hon. Member for North East Fife (Stephen Gethins) used conciliatory language in describing his position on the idea of having a vote on the deal, but I recommend to him, and perhaps others, that the Liberal Democrats are first adopters of this policy, with the Green party, and I hope he will develop an appetite for it—and, indeed, that some Labour Members might as well. It would require legislation, followed by a three-month election campaign, and then a vote that would have to take place before we finally leave the EU, but that is perfectly possible.

I conclude by saying that that would enable the UK population to have a vote on the deal; they would be able to express their views on whether they still want to accept now what they were offered on 23 June last year.