EU Council

William Cash Excerpts

Wednesday 29th June 2016 Commons Chamber

[The Prime Minister]

I thank the right hon. Gentleman for his response and for the way he has gone about it. He is right to say that “constructive” is the correct word. I was pleased that the discussions last night did not have a tone of European Union countries demanding this set of actions while Britain argued for that set of actions. There was a mature and calm understanding that we need each other and that we need this negotiation to proceed well and have a good outcome. That is in all our interests. I think we got off on the right foot, and I will do everything I can—whether in this job or as a Back-Bench MP—to ensure that we keep those strong relationships with our European partners, because we are going to need to.

On the issue of immigration versus the single market, the right hon. Gentleman is right to say that this is the biggest and most difficult issue to deal with, whether we are in the European Union arguing for changes or outside it and trying to secure the best possible access to the single market. My answer to the problem was to bring in the welfare restrictions that I negotiated. It was incredibly tough to negotiate them, and I am sad that they will now fall away as a result of the referendum decision. There is no doubt that the next Government are going to have to work very hard on this. I personally think that access to the single market and the strength of our economy will be the single most important issue that they will have to deal with.

On the question of article 50, that will be a matter for the next Prime Minister, and there is a very good reason for that. Before we go into the tunnel of the article 50 negotiations, which have a two-year time limit, we will want to have made the best possible preparations for the precise blueprint that we want to achieve at the end. That will help Britain, and frankly it will help the other European Union countries to understand what it is that we are shooting for. They have said that there can be no negotiation without notification, but I do not think that that excludes discussions between the new Prime Minister and partners or institutions, so that we can continue to get off on the right foot. That is the strong advice that I would give to them.

The right hon. Gentleman asked about the devolved institutions. I have had conversations with the First Minister of Scotland, the First Minister of Wales and the First Minister and Deputy First Minister of Northern Ireland, and I shall continue to do so. I want them to be as involved as possible and I want their voices to be heard loud and clear.

The right hon. Gentleman also asked about legal advice, and the legal advice that I have seen is that this is a UK decision to be made by the United Kingdom Government and the United Kingdom Parliament. It has to be done in that way. I completely agree with what he said about racism. We should all reiterate the statements that we have made to the EU nationals who are here. We should thank them for their contribution and say that their rights are guaranteed while we remain in the EU and we will be working hard on that question. I am sure that all the contenders in the Conservative leadership campaign will want to make it clear that they want to safeguard for the future the rights of people from the European Union who work here and study here, but that will be a matter for them.

Finally, the right hon. Gentleman asked about suspending the fiscal rule. This feels a little bit like a stuck record. Whatever the problem or issue, his answer always seems to be: more borrowing, more spending, more taxing and more debt. I have to say that you do not get investment unless you have economic stability, and you do not have economic stability if you do not have a plan for dealing with your debts and your deficit. This has been proved the world over, including in some of his favourite countries such as Venezuela, and I really would argue against going down that route.

[Sir William Cash (Stone) (Con)]

My right hon. Friend has quite rightly referred to trade and co-operation with the European Union, and we on the leave side have always argued for that. Will he, however, give us some further advice? He is talking about very precise blueprints and about alternative models. Will he give us an absolute assurance that any such models or blueprints will be exclusively based on the assumption that we are repealing the European Communities Act 1972?

[The Prime Minister]

We are leaving the European Union, so surely that must be the case. The reassurance that I can give my hon. Friend is that I am not saying that there are only four or five blueprints and that Britain has to follow any one of those. Obviously, we can try to amend blueprints and have Norway-plus or Norway-minus or a better trade deal than Canada. It is important for colleagues in the House and people in the country to understand that there are some quite fundamental questions about whether we want full unrestricted access to the single market and the price we might have to pay in return, or whether we will be satisfied to have less than full access along with some other compensating advantages. We have to go through all those questions, and the more we can attach facts and figures to them, the more we will enable people to make an informed choice.