Brexit: Negotiations

Statement

My Lords, with the leave of the House, I shall now repeat a Statement made by my right honourable friend the Prime Minister in another place. The Statement is as follows:

“With permission, Mr Speaker, I shall make a Statement on the Government’s proposals for a new agreement with our European friends that would honour the result of the referendum and deliver Brexit on 31 October in an orderly way, with a deal. This Government’s objective has always been to leave with a deal and these constructive and reasonable proposals show our seriousness of purpose. They do not deliver everything we would have wished. They do represent a compromise. But to remain a prisoner of existing positions is to become a cause of deadlock rather than breakthrough. So we have made a genuine attempt to bridge the chasm, to reconcile the apparently irreconcilable and to go the extra mile as time runs short.

Our starting point is that this House promised to respect the referendum before the vote. More people voted to leave than voted for any political party in our history. The referendum must be respected. Both main parties promised at the 2017 election that they would respect the referendum and there would be no second referendum. This House voted to trigger Article 50 and has voted repeatedly to leave. Yet it also voted three times against the previous withdrawal agreement and for repeated delay. And so, as I have emphasised time and again, there can be no path to a deal except by reopening the withdrawal agreement and replacing the so-called backstop.

While, as I stand here today, we are some way from a resolution, it is to the credit of our European friends that they have accepted the need to address these issues. I welcome the constructive calls that I have had over the last 24 hours, including with President Juncker, Chancellor Merkel and Taoiseach Varadkar, and the statement from President Juncker that the Commission will now examine the legal text objectively.

The essence of our new proposal is a new protocol on Ireland and Northern Ireland consisting of five elements. In the first place, all our actions are based on our shared determination to sustain the Belfast Good Friday agreement—the fundamental basis of governance in Northern Ireland—the protection of which is the highest priority of all. From this follows the second principle; namely, that we shall of course uphold all the long-standing areas of co-operation between the UK and our friends in Ireland, including the rights of all those living in Northern Ireland, north/south co-operation, and the common travel area, which predates both the Good Friday agreement and the European Union itself.

Thirdly, we propose the potential creation of a regulatory zone on the island of Ireland covering all goods, including agri-food. For as long as it exists, this zone would eliminate all regulatory checks for trade in goods between Ireland and Northern Ireland. But, fourthly, unlike the so-called backstop, such a regulatory zone would be sustained with the consent of the people of Northern Ireland, as expressed through the Assembly and Executive. They will give their consent during the transition period as a condition for these arrangements entering into force. Thereafter, the Assembly will vote again every four years. If consent were withheld, these arrangements would then lapse after one year.

Fifthly, it has always been a point of principle for this Government that, at the end of the transition period, the UK should leave the EU customs union whole and entire, restoring sovereign control over our trade policy and opening the way for free trade deals with all our friends around the world. That is a fundamental point for us. So, under the proposals in this new protocol, Northern Ireland will be fully part of the UK customs territory and not the EU customs union, but there will be no need for checks—or any infrastructure—at or near the border between Ireland and Northern Ireland. Indeed, I have already given a guarantee that the UK Government will never conduct checks at the border, and we believe that the EU should do the same, so there is absolute clarity on this point.

Instead, under this new protocol, all customs checks between Northern Ireland and Ireland would take place either electronically or, in the small number of cases where physical checks would be necessary, they would happen at traders’ premises or other points in the supply chain. We have put forward a method for achieving this, based on improving and simplifying existing rules, trusting certain traders and strengthening our co-operation with Ireland, in a spirit of friendship and sensitivity to the particular circumstances. While these proposals will mean changes from the situation that prevails today in Ireland and Northern Ireland, it is their driving purpose to minimise any disruption. In order to support the transition further we propose a new deal for Northern Ireland, which will boost economic growth and competitiveness and set in train new infrastructure, particularly with a cross-border focus.

The previous withdrawal agreement and political declaration would have permanently anchored the United Kingdom within the orbit of EU regulation and customs arrangements. An indefinite so-called backstop provided a bridge to that vision of the future. This Government have a different vision, basing our future relationship with our European neighbours on a free trade agreement and allowing the UK to take back control of our trade policy and our regulations. We propose to amend the political declaration to reflect this ambition. Our proposals should now provide the basis for rapid negotiations towards a solution in the short time that remains.

I do not for one moment resile from the fact that we have shown great flexibility, in the interests of reaching an accommodation with our European friends and achieving the resolution for which we all yearn. If our European neighbours choose not to show a corresponding willingness to reach a deal, then we shall have to leave on 31 October without an agreement, and we are ready to do so. But that outcome would be a failure of statecraft for which all parties would be held responsible. When I think of the conflicts that have wracked Europe in the past, of the immense challenges that we have surmounted, of the 74 years of peace and prosperity that we have together achieved, I believe that surely we can summon the collective will to reach a new agreement.

This Government have moved. Our proposals do represent a compromise, and I hope that the House can now come together in the national interest behind this new deal, to open a new chapter of friendship with our European neighbours and move on to our domestic priorities, including education, infrastructure and our NHS. So let us seize this moment to honour our overriding promise to the British people, respect Brexit and get Brexit done. I commend this Statement to the House”.

My Lords, that concludes the Statement.

My Lords, I first thank the noble Baroness for repeating the Statement. I think that most of us listened carefully to what the Prime Minister has said today. The Statement was very different in tone to what we heard last Wednesday, so hopefully her entreaties to the Prime Minister had some impact.

When the Prime Minister took office in July, we were promised a fresh approach to Brexit, and that, despite actions suggesting the opposite, the Government really wanted to strike a deal with the EU. Having patiently awaited the result of the Conservative Party leadership contest, our EU partners were promised certainty by Mr Johnson. The de facto Deputy Prime Minister, Mr Gove, tells us that the new Cabinet Brexit sub-committee has had dozens of meetings over the summer, leading to a new plan for the Irish border being drawn up and dispatched to Brussels.

It is perfectly legitimate for the new Prime Minister to want to put his own plans to Brussels. In doing so, however, he would have been conscious that the Article 50 process was designed to take two years—not just the two weeks before the last European Council summit—for good reason. It was unfortunate that his advisers briefed the media that this would be a take-it-or-leave-it offer. Thankfully the tone has shifted to something much more conciliatory. We welcome that.

We must, however, face facts. Despite being welcomed by the DUP—I am sorry that our DUP colleagues are not here today for the Statement—the plan has been dismissed by all the other major political parties in Northern Ireland, as well by manufacturing and retail bodies. Retail NI’s Glyn Roberts said that the proposal was “worse than no deal”. Trevor Lockhart, the group chief executive of an agri-foods business, said on this morning’s “Today” programme:

“It is ultimately a balance between what works politically and what works economically. The UK backstop, for us, delivered economically but clearly did not work politically, and in the pursuit of getting a political solution the interests of businesses in Northern Ireland to some extent have now been sacrificed”.

My Lords, I too thank the Leader of the House for repeating a Statement that was written in much more measured tones than the one she was required to read last week. It is thanks to the purported Prorogation having been nullified that Parliament can now hold the Government to account on this important development. It is worth reflecting that if that had not happened, these important proposals would have been brought forward without Parliament being in session to examine them.

It is important that we examine these proposals, and the noble Baroness, Lady Smith, has asked a number of detailed questions on their application and how it is proposed that the arrangements will work. It appears that, from having no borders as a full member of the European Union, the Prime Minister’s proposals would give Northern Ireland two borders. Does the Minister believe that these proposals are better for the economy and, above all, for the security of Northern Ireland than what Northern Ireland has at present? It is important, too, that we closely examine the proposal of a “potential”— the word is there in all the documents—regulatory border between Great Britain and Northern Ireland and customs checks between Northern Ireland and Ireland. Simply to state that position must surely suggest that Northern Ireland’s economy would be in a worse position.

The noble Baroness, Lady Smith, quoted a number of businesses that have expressed considerable scepticism about the proposals. The Northern Ireland Chamber of Commerce and Industry said:

“Businesses are telling us that the potential increased costs will seriously damage … supply lines and indeed business survival.”

There are other quotes that could be repeated from spokespersons who have cast doubt on the workability and cost of these proposals. It would be interesting to see whether the Minister, when she comes to reply, can quote any business or business organisation which, in the last 24 hours, has given support to these proposals. The proposals depend on electronic and, in some cases, physical checks—possibly on business premises. What estimate have the Government made of these added costs to businesses as a consequence of such additional surveillance?

I thank the noble Baroness and the noble and learned Lord for their comments. I reiterate once again that we are committed to and focused on getting a deal, which is why we have brought forward these new proposals. I also remind noble Lords, who will be aware of this, that the House of Commons has rejected the previous withdrawal agreement three times; therefore, to get a deal, we have had to come forward with new proposals.

I reassure the noble Baroness that she is absolutely right: we believe that these proposals set out a reasonable compromise and that they are a broad landing zone in which a deal can take shape. We are pleased that our European colleagues have said that they will look at these proposals. Detailed discussions will now have to take place on them. I can reassure her that David Frost, the Prime Minister’s lead negotiator, is back in Brussels today. Intensive talks will be ongoing and we look forward to continuing them to ensure we can get a deal that everybody is happy with. We are committed to supporting the all-Ireland economy by avoiding checks and infrastructure at the border between Northern Ireland and Ireland, keeping Northern Ireland in the same customs territory as Great Britain and ensuring unfettered access for Northern Irish farmers and businesses to the UK.

The noble Baroness and the noble and learned Lord talked about the political declaration. Yes, we are in negotiations on changes to that. Those negotiations are ongoing and as soon as we are in a position to give further details on them, we will of course do so. I am happy to reassure them both that we are committed to strong standards in the areas of environmental protections and workers’ rights, as the noble Baroness set out. We have an excellent record in this country in these areas. There are numerous examples of where we exceed EU minima, such as on the length of maternity leave, shared parental leave, holiday entitlement and greenhouse gas targets. As I hope we have made clear continually at this Dispatch Box, we as a Government intend not only to maintain existing standards but to improve them. We will continue to hold this path.

My Lords, I welcome any step, however tentative, which might possibly produce a resolution. Would the Leader of the House be in a position to clarify the intention of the Government if the EU—and I use it compendiously—were very interested in these proposals but asked for more time, say one month, to consider them?

As I said, I am afraid that I will not prejudge the outcome of the negotiations. Our aim is clear: we want to conclude these negotiations quickly, so that we can have an agreement at the EU Council this month and progress to leave the EU on 31 October. That is our very firm intention; it is where our focus is and what we are working towards. With willingness and compromise on both sides—it will require compromise on both sides; we accept and understand that we still have a way to go, but we believe that the will is there—that is what we will be focused on and working very hard towards.

My Lords, why do not the Government listen to hauliers, businesspeople, trade unions and every Northern Ireland political party except the DUP—including the Ulster Unionists and the cross-party Alliance Party—who all oppose this proposal, which undermines the all-Ireland economy and betrays the Good Friday and Belfast agreement? Surely the noble Baroness must accept that the customs border proposed is unworkable because there are no enforcement measures, leaving it wide open to smuggling and criminality. It is a virtual hard border, not a physical hard border. How could Brussels enforce its own rules, except by erecting infrastructure for security and checks on this external frontier of the European Union, at least to obey World Trade Organization rules? Surely this is the worst of both worlds: customs clearance centres and arrangements, including tariffs, that would be a target for civil disobedience and, perhaps, paramilitary attack, a border that is not even secure, and a shift from no borders to up to four borders. I appeal to every Member of Parliament— certainly every Labour MP—to vote against it to protect the peace process and progress on the island of Ireland.

I fear I cannot agree with the noble Lord’s assessment. We want a deal. We believe that a deal is in our best interests and also, frankly, those of Ireland and Northern Ireland. That is why we are working hard towards it. We made very clear—the Statement made clear, I hope—that our proposal is centred on our commitment to find solutions compatible with the Belfast agreement. We believe it is. We will work very hard and do everything we can to minimise disruption. We have made compromises. We now want to work with the EU to discuss further how to ensure that we come forward with a proposal which can get through the other place and means that we can move on and work together for a strong future relationship. I fear that I do not accept the noble Lord’s view of the proposals. They have been well thought through. We think that they address some of the key issues that have been a problem so far and we will be working very hard to advance them.

My Lords, I welcome this carefully crafted compromise and hope that it will receive serious consideration, because we need to secure a deal. Are not the noble Lord, Lord Hain, and the noble and learned Lord, Lord Wallace, mistaken in saying that there is no border? There is a border between the north and south of Ireland. There are checks, for example, on VAT on both sides of that border. They are done not at the border but away from it. Is it not also wrong to conflate a customs declaration with physical examinations? They are completely different. Can my noble friend confirm what the Prime Minister said in the House of Commons: no physical infrastructure will be required by these changes?

I thank my noble friend for his comments. He is absolutely right. We have been very clear that there will be no further infrastructure—there will be no hard border within Ireland. Any changes to process that happen, will, we believe, be very minor. We will do everything we can to ensure that. That is why we will be working hard with Northern Irish and Irish businesses further to explain our proposals to ensure that they understand that we intend absolutely to minimise any disruption. We all want to achieve a deal that will work in the best interests of the island of Ireland.

My Lords, the EU Select Committee intends to hold a public evidence session next Tuesday morning, based on the documents delivered yesterday. In preparation for that, I wonder whether the noble Baroness the Leader could give us a bit more help on the matter of consent. I should be grateful for clarification of two issues. First, the Assembly has not sat since January 2017. There must therefore be a risk that at some point during a future consent process, it may again not be sitting. Can she tell us how, if it is not sitting, the consent process works and what is the default position? Secondly, this time assuming that the Assembly is sitting, it has special rules for cross-community consent. How will those rules apply?

The principle behind the consent is that we believe any alignment with EU law in Northern Ireland must depend on the consent of those affected by it, which is why we believe this is an important element. As I said in my response to the opening questions, obviously the exact mechanisms will need to involve a discussion between us, Ireland and representatives of the communities in Northern Ireland. We are absolutely clear—I hope this was made clear in my responses to an earlier question—that this must be done to the satisfaction of both communities in Northern Ireland. The details of this are something we will need to talk about with our Irish colleagues and across the Province of Northern Ireland over the coming days.

My Lords, listening to the exchanges in the other place, I was struck that the really important question from Lady Hermon was not actually answered. I put to the noble Baroness this question, which in effect follows on from the one she was just asked but has not answered: can she explain the difference between a coalition Executive and a power-sharing Executive, in the context of Northern Ireland, with respect to this Statement?

I am afraid the noble Lord will not be happy, but I cannot say more than I have said. Some of the details of the exact mechanisms will be open to discussion. I will not pre-empt negotiations or discussions and do not think it would help the process if I did. I am sorry I cannot say any more to the noble Lord.

My Lords, having taken part in the original power-sharing agreement in the 1970s, I can tell the noble Lord, Lord Rooker, that these differences are extremely hard to disentangle in the atmosphere of Irish politics—but it is a pertinent question and I see why he is asking it.

I welcome this protocol very warmly indeed. I was a bit depressed by the question from the noble Lord, Lord Hain, which seemed very negative, but I thought his own Front Bench sounded a shade less negative. I do not know whether I am reading too much optimism into the situation. That is the big question: where are the Opposition on this matter? Will they support the protocol and the deal? The Government do not have a stable majority in the House of Commons. The position of the Opposition is absolutely crucial, so let us please have an answer to that question: will they support it or not? We know that the Lib Dems, of course, are against it all because they do not want this to happen at all. They want some other course, which I cannot quite fathom but which certainly would not benefit the national interest of this country.

Is not one of the missing factors in all this the concept of time? Time is a great solvent. As I understand it from this report, there is the transition period first—during which, we hope, the Northern Ireland Assembly will be recreated and give its consent—then there are four years before the issue comes up again, then a lapse of a year if, at the end of the four years, there is a vote for a change or it has not worked. Surely the enormous ingenuity of the people of Ulster, Northern Ireland, and the tremendous dynamism and creativity of modern Dublin and the modern Republic are between them capable, over all those years, of producing workable solutions in the modern world. Should we not put the concept of time a bit more into this before rushing to judgments?

I thank my noble friend for his more optimistic outlook. He is absolutely right: our proposal is that before the end of the transition period, then for every four years after that, the UK will provide an opportunity for democratic consent in the Northern Ireland Assembly and Executive for the regulatory alignment arrangements, within the framework set out in the Good Friday agreement.

My noble friend is also absolutely right that the reason we have brought forward these new proposals and will be working incredibly hard over the coming weeks is that we need to get agreement in the other place to support them, which we have not managed to do with the backstop in its current state. That is an absolute priority for us. We very much hope that through further discussions and negotiations across all parties and all Benches, both in this House and the other place, we can get to a point where we can get a deal and move on to start talking about the positive relationship we want with the EU. That is what we all want to be talking about, and it feels as if it is time we really tried to get on to that, so that we can move on.