Future Relationship Between the UK and the EU

William Cash Excerpts

Wednesday 18th July 2018 Commons Chamber

[Sir William Cash (Stone) (Con)]

I am glad to follow the right hon. Member for Leeds Central (Hilary Benn) because he talked about sovereignty, although he rather distorted the focus of it, to put it bluntly, and I will explain why in a moment.

Brexit is ultimately about our democracy, our sovereignty and our self-government. All the other issues, including our right to free trade with the rest of the world, are subsidiary to the questions of sovereignty, self-government and democracy because they flow from them. This is the ultimate test. To get our sovereignty and our democracy, and to get it right, we must govern ourselves. I am deeply concerned about the White Paper and the Chequers settlement for that reason, and I will set out what I believe will be the practical outcome.

We have managed to achieve something quite remarkable, which is to turn the gold of democracy into the base metal of subservience—a new kind of alchemy. In other words, we have effectively turned leaving into not leaving in a whole range of areas, despite the repeal of the European Communities Act 1972 and despite the EU withdrawal Act itself, the promises made in the Conservative party manifesto and, of course, the result of the 2016 referendum.

The European Scrutiny Committee, of which I have the honour to be Chairman, unanimously criticised the Government a few months ago. We argued that they are supplicating themselves to the EU and accepting its guidelines, contrary to our lawful departure under article 50, which gives us the legal authority to leave under the treaties. That is a massive strategic mistake. We have summoned Mr Olly Robbins to appear before our Committee and, although the Prime Minister originally was not prepared to allow him to come, he will be appearing before the Committee—that was resolved this morning.

[Simon Hoare]

I hear what my hon. Friend says, but is it not the case that, whenever we enter into a free trade agreement with another country, we will abide by the rules and regulations that it seeks to apply to imported goods? The fact that we choose to do so is our choice, as made either by the Executive or by Parliament. Whether we do a free trade agreement with the EU, New Zealand or Japan is immaterial. We will always have to follow the third party’s guidelines and meet its requirements in order to export to that country.

[Sir William Cash]

My hon. Friend is slightly missing the point. I am talking about the legal framework of the EU itself, which imposes on us a requirement, through the 1972 Act, to accept the rules. I will come on to that in a moment, because I believe that what is happening under the Chequers proposal and under the White Paper will, in many respects, make it worse than it is already.

The big picture is about why we had to leave the EU to regain our democracy. The decisions imposed on us through the 1972 Act—those decisions are imposed through the Council of Ministers—as my Committee exposed a few years ago, will in practice be continued under the common rulebook and will continue to be taken by a majority vote of the 27 without our being there. The Prime Minister even wrote a pamphlet about that in 2007 in which she said

“Parliament is supposed to be Sovereign but in practice it is not.”

That will be made even worse under the White Paper. We will have no voting rights, no blocking minority and a mere useless consultation.

The White Paper mirrors the EEA arrangements, which slavishly follow the decisions of the EU Council of Ministers. Furthermore, given that the Government will already have agreed to the international obligations it will have entered into, it is absurd to suggest that under the “threat of consequences” during the scrutiny process, the MPs appointed to a Committee run by the Whips would ever overturn the Government’s agreed rules. The manner in which the common rulebook will absorb European rules and European jurisdiction through the creation by the UK Government of international obligations binding of itself, with the deliberate connivance of the Government and the Whips, will predetermine the outcome of the parliamentary scrutiny when it reaches the Committee. In other words, it will fictionalise real sovereignty. This White Paper is a sovereignty car crash.

As for the European Court of Justice, the former president of the EFTA court—I have just put this to the Prime Minister in the Liaison Committee—clearly stated only a few days ago:

“the UK would recognise that the European Court of Justice is supreme on the interpretation of EU law.”

He went on to say that under the independent arbitration we would agree

“to refer questions to the ECJ”.

The White Paper itself concedes that the UK makes an

“upfront choice to commit to ongoing harmonisation with the relevant EU rules and requirements”.

Thus, the ECJ will determine not only the interpretation, but the outcome of any disputes, so it will be calling the shots.

I wish briefly to turn to the issues of foreign policy and of Germany, which has been very much underplayed for many, many years in this context. Of course we want to work with other neighbours in Europe—I have no problem with that. However, this problem, which has been with us for so many generations—over the past 20 or 30 years—has simply been ignored to far too great an extent. It is clear that Germany calls the shots, and everybody knows it. To see that we have only to look at what has been going on in Greece; what went on in Ireland when it had the crash; and what happened to Italy, whose EU Affairs Minister recently described the euro as “a German prison”.

The reality is that Germany tore up the Dublin regulation, which led to this incredible surge of refugees, some of which were justified and some of which certainly were not. We have seen how Germany broke the stability and growth pact with impunity, but ensured the manner in which it is applied to other European member states. The result has been that the people of Europe are voting with their feet, and it has also led to the rise of the far right, not only in Germany, but elsewhere. That is one of the things I have argued against ever since I first wrote about this in early 1990. Anyone who believes we could remain in the present EU, from which we have escaped in the nick of time, is simply living in cloud cuckoo land.

I wish to add something about those who would want to reverse this process, although I am not pointing the finger at anybody or any group of people in particular. I have heard of rats leaving a sinking ship but never of rats trying to sink a leaving ship. We really must leave this EU, above all else. We need to regain our democracy and our self-government, and not be dictated to by qualified majority vote, which we have mistakenly accepted for 40-odd years. We live in a world of massive change. We now have the opportunity to decide our own history, our own future, our own economy and our own destiny. People have fought and died for this over generations. We wish to co-operate, but not to be subservient.

--- Later in debate ---

[Paul Blomfield]

I will not, because I have answered the hon. Gentleman’s points and we cannot get into a detailed exchange.

The result of the Prime Minister’s approach has been paralysis, not simply on Brexit but on the other crises facing our country. The Government have neither the authority to deal with Brexit nor the ability to tackle the issues that led to it. There has been a dawning realisation from the Prime Minister that those early red lines were a mistake, but each time she tries to step over them, she has been hauled back by the extremists within her party.

At Chequers, it did seem that the Prime Minister was beginning to face up to the hard facts—to break free from the icy grip of the European Research Group. Not far enough, not soon enough, but tentative steps towards reality, towards a customs settlement and a regulatory alignment demanded by business—a point made by my hon. Friend the Member for Birmingham, Northfield (Richard Burden)—and also necessary to resolve the issue of the Northern Ireland border.

Of course, the former Brexit Secretary was right when he endorsed Donald Trump's view that the plan would “kill” the prospect of a US-UK deal; and of course, it was just a starting point, not the end point of negotiations. It would inevitably involve further movement by the Government. Knowing that, the ERG tore it to shreds, and Monday night’s debacle was the last nail in the coffin. Rather than defeat the amendments—as they could have, overwhelmingly—the Government rolled over and accepted wrecking amendments that left their White Paper dead in the water. The Minister shakes his head, but if there was any doubt about its death, the hon. Member for Wycombe (Mr Baker) laid it to rest today in what was, frankly, a chilling contribution.

While the Prime Minister turns on those in her own party who would welcome the Chequers plan, threatening them, she embraces those who would destroy her, and she continues to bring them into the Government. Having resigned, the hon. Member for Wycombe was succeeded as a Brexit Minister by his predecessor as chair of the ERG, the hon. Member for Daventry (Chris Heaton-Harris) —who, of course, joins another former chair, the hon. Member for Fareham (Suella Braverman). It is beginning to look as if there is a secondment scheme going on between the ERG and the Brexit ministerial team.

[Sir William Cash]

Will the hon. Gentleman give way?

[Paul Blomfield]

No, I will not; I have not the time. I would love to, but I have not the time.

As I say, it is beginning to look as if there is a secondment scheme. So we may yet see the hon. Member for North East Somerset (Mr Rees-Mogg) make his way down to the Front Bench—or perhaps he thinks he has more power where he is.

Sixteen months into the negotiations, the White Paper says that the Government will now

“charge the UK’s negotiating team to engage with the EU’s at pace”.

The time for “pace” was long ago, but better late than never. It is 16 months since the House set the clock ticking, and in three months we need to resolve the deal. Whatever the polls say now, the public will not thank politicians who deliver a damaging Brexit based on false promises.

Without the threats and bullying that Members faced last night, there was a majority across the House in favour of a sensible approach—one that respects the referendum result, one that protects our constituents’ jobs and livelihoods. If the Government are not willing or are not able to deliver that sensible result, in the months ahead it will be the duty of this House to step in.

[The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Robin Walker)]

It is a pleasure to follow the hon. Member for Sheffield Central (Paul Blomfield). He talked about what people had been saying two years ago; of course, the leader of his own party was saying two years ago that we should just trigger article 50 and damn the consequences, and we should not worry about planning and preparing.

The White Paper sets out the right Brexit deal—which will deliver on the result of the referendum, and take back control over our money, laws and borders—and makes detailed proposals for a principled and pragmatic Brexit. I thank Members on both sides of the House for their contributions today, and for the many congratulations to my new Secretary of State, to which I add my own. I pay tribute to my hon. Friend the Member for Wycombe (Mr Baker). He will not be surprised that I disagree with much of his analysis, but I recognise his dedication and his passion for this subject. I thank him for his work in our Department, and for his constant courtesy to all our officials.

My right hon. Friend the Member for Sutton Coldfield (Mr Mitchell)—who notified me that, unfortunately, he would have to leave early—spoke about deep divisions on the referendum, but also about the need for people of good will to work together and come together to deliver a successful outcome. I have always believed in that, and it is exactly what we must do in relation to the constructive proposals in the White Paper.

I listened carefully to the right hon. and learned Member for Holborn and St Pancras (Keir Starmer). Both he and the hon. Member for Pontypridd (Owen Smith) included colourful political commentaries in their speeches, but I think that, coming from a party that has experienced 103 Front-Bench resignations, those should be taken with a pinch of salt. He actually had very little to say about the topic of this debate. What he said about the White Paper was based on taking snippets out of context, which I do not think is a helpful or constructive way to debate.

We talked about the proposal for a free trade area in goods. This would be enabled by a common rulebook for goods, including agri-food; participation in EU agencies that provide authorisation for goods in highly regulated sectors; and the phased introduction of a new facilitated customs arrangement. The arrangement would remove the need for customs checks and controls between the UK and the EU as if they were a combined customs territory, enabling the UK to control its own tariffs to trade with the rest of the world and ensure that businesses pay the right tariff or no tariff. Put simply, it means neither the UK nor the EU imposing tariff barriers on one another that do not exist today.

The hon. Member for Birmingham, Northfield (Richard Burden) spoke passionately about the automotive sector. I believe this is an approach that many in the automotive sector, including those I met over lunch today from Bosch, actually welcome and support. They have said that they would want to get a good hearing in EU member states. In combination with no tariffs on any goods moving between the UK and the EU, these arrangements will avoid new friction at the border and protect integrated supply chains that span both territories. We have heard from a wide range of international and multinational businesses that they would support that approach, but, crucially, as my right hon. Friend the Member for East Devon (Sir Hugo Swire) said, it is one that would deliver for many UK small and medium-sized enterprises that are part of the supply chains. We should never forget the importance of those SMEs.

We heard concerns from Government Members about the common rulebook and parliamentary sovereignty. The UK has played a crucial role in shaping the rules over the past 40 years. They do not change very regularly. They are relatively stable and are supported by a large share of our manufacturing, agricultural and farming businesses.

[Sir William Cash]

Will the Minister give way?

[Mr Walker]

I cannot. I am afraid I do not have the time to give way.

High standards in food and product safety are something all our constituents value. As we saw around debates on the TTIP negotiations, our constituents are unlikely to want any trade deal or arrangement that lowers standards. As my hon. Friend the Member for Basildon and Billericay (Mr Baron) pointed out, both the Government and Opposition parties were elected on a promise that we would be able to strike international trade deals. That is a very important point. Our proposals, unlike those from the Opposition, will allow the UK to negotiate new international trade agreements in line with our priorities and interests, including on goods, services and investment. This could include arrangements with the United States, Australia and New Zealand. The UK will explore accession to the comprehensive and progressive agreement on the Trans-Pacific Partnership, consistent with our future relationship with the EU and domestic priorities. In that context, my right hon. Friend the Trade Secretary recently announced the first public consultations on our future trade agreement negotiations with global partners, which we were not able to do in the TTIP context because that was a negotiation conducted on our behalf by the European Union. I sat on the Business, Innovation and Skills Committee with the hon. Member for Sheffield Central when we scrutinised those proposals at one remove.

I have talked a little about goods. I want to address the important point on services raised by my hon. Friend the Member for Bromley and Chislehurst (Robert Neill). We want a comprehensive but different deal on services and digital, which allows us to exercise greater regulatory freedom in an area where the UK is a world leader. This will not involve adopting a common rulebook for services, as proposed for goods. Instead, we are seeking an ambitious deal for services, which will, among other things, minimise new trade barriers to service provision, allow UK firms to establish in the EU and cover mutual recognition of professional qualifications. On financial services, we are proposing a new economic and regulatory partnership in financial services. That makes sense because, unlike goods, services are not affected by frictions at the border. They are not subject to tariffs or customs. Unlike the vast majority of manufactured goods and agri-food products, most services are not subject to specific standards and regulatory frameworks. The UK is a world leader in services and in the regulation of services. I suspect we will continue to be so.

The Government’s proposals deliver a balance—the right hon. Member for Leeds Central (Hilary Benn) called for a balance—that respects the result of the referendum and the decision of the UK public to take back control of the UK’s laws, borders and money, while supporting growth and maintaining security co-operation. Importantly, they safeguard the constitutional and economic integrity of the UK while reclaiming the UK’s sovereignty. They protect our economic interests, supporting supply chains and jobs all over the UK, and delivering global opportunities for trade.

The UK will leave the European Union in March. The proposals in the White Paper mean that as we leave we will be a close friend, ally and partner of the EU and a major market for it. Our economy will continue to be strong.

Question put and agreed to.

Resolved,

That this House has considered the future relationship between the United Kingdom and the European Union.