European Council

Statement

My Lords, with the leave of the House, I will now repeat a Statement made by my right honourable friend the Prime Minister in another place.

“With permission, Mr Speaker, I would like to make a Statement on yesterday’s European Council, but before I do, I am sure that the whole House will welcome the news this morning that the Metropolitan Police have arrested Julian Assange for breach of bail, after nearly seven years in the Ecuadorian embassy, and he has also been arrested in relation to an extradition request from the United States authorities.

This is now a legal matter before the courts. My right honourable friend the Home Secretary will make a Statement on this later, but I thank the Metropolitan Police for carrying out their duties with great professionalism and welcome the co-operation of the Ecuadorian Government in bringing this matter to a resolution. This goes to show that in the United Kingdom, no one is above the law.

Turning to the Council, my priority is to deliver Brexit and to do so in an orderly way that does not disrupt people’s lives, so I continue to believe we need to leave the European Union with a deal as soon as possible—and of course this House has voted repeatedly to avoid a no deal. Yet despite the efforts of Members on all sides, we have not so far been able to vote for a deal. So ahead of the Council, I wrote to President Tusk to seek a short extension to the Article 50 period to 30 June. Critically, I also requested that any extension should be terminable, so that whenever this House agrees a deal and ratifies the withdrawal agreement, we can get on and leave. I did this not merely to avoid a further delay beyond ratification of the withdrawal agreement but specifically to retain our ability to leave the EU without having to hold European parliamentary elections on 23 May.

The discussions at the Council were difficult, and unsurprisingly many of our European partners share the deep frustration that I know so many of us feel in this House over the current impasse. There was a range of views about the length of an extension, with a large number of member states preferring a longer extension to the end of this year or even into the next. In the end, what was agreed by the UK and the EU 27 was a compromise: an extension lasting until the end of October. The Council also agreed that we would update on our progress at the next meeting in June. Critically, as I requested, the Council agreed that this extension can be terminated when the withdrawal agreement has been ratified, so, for example, if we were to pass a deal by 22 May, we would not have to take part in European elections, and when the EU has also ratified, we would be able to leave at 11 pm on 31 May. In short, the date of our departure from the EU and our participation in the European parliamentary elections remains a decision for this House. As President Tusk said last night: ‘During this time, the course of action will be entirely in the UK's hands’.

My Lords, I thank the noble Baroness the Leader of the House for repeating this Statement. At the request of my noble friend Lady Smith of Basildon, I am responding.

We are pleased that an extension to the United Kingdom’s exit date has been granted, so that we do not crash out of the European Union tomorrow without a deal, which would put at risk jobs, health, the economy and our security. However, the way it has happened is no cause for pleasure, because its occurrence as a result of a rushed flight to Brussels amid reports of serious disagreements between different member states has led to a further erosion of the credibility of the United Kingdom in the world. It is also a very bad set of conditions in which to continue negotiations with the EU 27 on the political declaration, if we get that far. No doubt there will also be sharp and sustained anger and dismay in the country.

The reason for that is squarely to be placed at the door of the Prime Minister and the Government. She knew, at the latest in early December, when she postponed the first meaningful vote, that her deal was in grave difficulties and unlikely to pass. That became clearer and clearer as we went through later months. Yet still she drove forward to the sharp cliff edge of a no-deal exit in a game of chicken, hoping that either the European Union or Parliament would blink before we got there. She was warned time and again, including by the Labour Party, not to run down the clock in the hope that Parliament would be forced to agree her deal despite its strong dislike of it, instead of looking at alternative routes forward—particularly cross-party discussions, which have at least finally started.

It is now plain to see that her plan has backfired. It is not either the EU that has had to blink and reopen the deal, or Parliament that has had to blink and accept it. It is the Prime Minister who has had to blink and ask for an extension—although we welcome it— apparently then having to sit out the Council meeting itself again in a solitary room, waiting to be summoned back and told her fate, and indeed ours. She now has time, which she must use wisely and productively in the interests of all the people of this country, not solely of the Conservative Party. In progressing cross-party talks but also in looking at all other ways to find a solution—including looking at a public vote—can the Minister therefore answer these questions?

My Lords, I thank the noble Baroness the Leader of the House for repeating the Statement. This is the 15th opportunity we have had to discuss the Government’s withdrawal agreement since it was reached at the back end of last year. During the last four months, and during all these debates, the Government have made absolutely no progress in getting the approval of the Commons for it. I am a great fan of “Groundhog Day”, the film. I am much less a fan of “Groundhog Day”, the lived experience. Yesterday, the Council reiterated that the withdrawal agreement cannot be reopened. The Government have accepted this. How, therefore, are they to get their withdrawal agreement accepted by the Commons? If they cannot, what happens next?

Regarding the first question, the Government are holding talks with the Labour Party. The Prime Minister says that any agreement with Labour will require compromise. That will undoubtedly also involve compromise by the Prime Minister. Could the noble Baroness the Leader of the House give us any indication of any material respect at all in which the Government have signalled a willingness to make any compromise, which they accept will be needed if an agreement with Labour is to be reached? If she cannot, how does she answer the question in many people’s minds: are these talks little more than a charade, a basis on which to get the Government and the Prime Minister through the European Council, which can now be discontinued, having served their purpose?

Of course, there is one way the Government could get the withdrawal agreement through the Commons quickly—by accepting that the agreement and the option to remain should be put to a ballot of the country as a whole. The Government would then have that agreement within a day. It seems they will not do so, despite knowing—because they can read—that an increasing majority of the population now believes that the politicians have failed so dismally in their duty to get a proper outcome that the decision must now go back to them. Is it too cynical to suggest that the only reason the Government will not contemplate such a course is that they know that, if such a vote were held, they would lose it and, arguably, lose it heavily? Or, as Laura Kuenssberg has been reporting over recent hours, is the Prime Minister’s intention to put her deal to the Commons for a fourth time knowing, as she does, that it will lose a fourth time? Having lost, she then intends to pivot towards a referendum, with her deal and remaining in the EU on the ballot paper. That seems an eminently sensible course for the Prime Minister to take. Presumably something has happened to make serious political commentators believe it is now in the Prime Minister’s mind. I am sure the noble Baroness, as a member of the Cabinet, knows what is in the Prime Minister’s mind. Perhaps she could tell us that.

I thank the noble and learned Lord, Lord Goldsmith, and the noble Lord, Lord Newby, for their questions, which I will attempt to answer. The noble and learned Lord asked about the review point in June. It will allow leaders to take stock of progress at the June Council, but the extension will last until 31 October unless the withdrawal agreement is ratified before then.

Both noble Lords asked what happens next. As was made clear in the Statement, further talks will take place between the Government and the Opposition to seek a way forward, but the Prime Minister and the Government are clear that there is no easy way to break the deadlock. The talks are ongoing, so we need to see how things play out, but we are clear that we need to move quickly to conclude a process in everyone’s interests. The ideal outcome of the talks is to agree an approach to a future relationship that delivers on the referendum that both the Prime Minister and the Leader of the Opposition can put to the House of Commons for approval. As the Statement also made clear, if it is not possible to reach an agreement, the Government have said that we will put forward a small number of options for the future relationship, for the House of Commons to determine which course to pursue. These options would need to be agreed by the Opposition. We stand ready to abide by the decision made.

The noble Lord, Lord Newby, once again asked about a second referendum. The Prime Minister has made it clear that we want to deliver the result of the first referendum and we do not want a second referendum. The noble Lord is also aware that the House of Commons has voted against a second referendum on a number of occasions, so this is not a majority view in the House of Commons either.

The noble Lord also asked about compromise. We have compromised during the process. We have attempted to address issues around the backstop, for instance, which Members of the House of Commons have raised. We have also committed to ensuring that Parliament is more closely involved in the next phase of the negotiations. I assure the noble and learned Lord that we will continue to update this House regularly on progress and will, no doubt, be adding significantly to the 15 debates that the noble Lord, Lord Newby, identified that we have had already.

My Lords, this is welcome breathing space. We know that the withdrawal agreement is fixed and cannot be opened, but the cross-party talks have shown differences about the political declaration. Would my noble friend like to have a shot at explaining to some of us the difference between the withdrawal agreement, which offers a transition customs union followed by a customs arrangement, and a permanent customs union? As I understand it, the Labour Party wants a permanent customs union. In practice, what is the difference between the two? Are we ever in practice going to see any agreement from Her Majesty’s Opposition? Their job is to oppose. Why should they ever agree with us? That is not their main motive at all.

As the Statement made clear, we are at a particularly difficult time. We need to find compromise. The House of Commons is deadlocked. In the Statement, the Prime Minister acknowledged that this is an unusual situation. However, talks have begun constructively. We are exploring areas of disagreement and areas of agreement. We are looking to move forward in the hope that we can get a common approach. We all want to leave the European Union in an orderly way. We want to ensure that we have a strong future relationship with the European Union. Crucially, any future relationship with the EU needs to be underpinned by a withdrawal agreement. That is needed to take forward the future relationship. If we can agree a withdrawal agreement, we can move forward to tackle the other issues about which noble Lords and, indeed, Members of the other place are particularly concerned and, I hope, develop the relationship with the EU that we want to see in the future.

My Lords, following up on the question from the noble Lord, Lord Howell, does the Minister agree that if cross-party talks are to get anywhere the Government have to start talking with real intellectual clarity? In the other place, the Prime Minister was trying to muddle together the question of a customs arrangement and a customs union just as a starting point. On the customs union, the Labour Party is clear that we are prepared to accept EU tariffs because we think that frictionless trade with the EU is far more important than the chimera of negotiating independent trade deals with the rest of the rest of the world. Will the Minister tell us whether the Prime Minister is prepared to have that degree of clarity about what is necessary if these joint talks are to move forward?

As I say, the talks are constructive and the Government have been very clear that we want to deliver the benefits of a customs union with the ability to deliver a negotiated trade policy. That is what we believe we can achieve. We believe that it is a reasonable place to start and we will be discussing with the Opposition how we might achieve that.

I think that we have to try to rise to the level of events. The noble and learned Lord, Lord Goldsmith, was quite right to talk about the humiliating spectacle last night. The last time we debated a European Council, the noble Lord, Lord Armstrong of Ilminster, spoke of his shame. I feel that. I think that we should all feel that. This is not the United Kingdom that we know. The twin cements of our parliamentary democracy are Cabinet solidarity and the ability to muster a majority in the House of Commons to deliver on the principal planks of the Government’s programme. Neither of these conditions seems to apply in the case of Brexit. In my view, that means that we need to think about a general election. I do not believe that the Fixed-term Parliaments Act was a good idea. The Prime Minister has demonstrated that it is possible to escape the Act’s confines. That is where I believe we should go. When parliamentary democracy is stuck, one should consult the people. I am disappointed that the Prime Minister referred three times in her Statement to the undesirability of European Parliament elections. What is wrong with consulting the people? That would be quite a good test of where public opinion now is on this issue. What is wrong with having a general election with a view to getting a Government who can take decisions and get them through the House of Commons? What is wrong with a second referendum? It is a long time since the first one. Why do we not check what the will of the people actually is?

I do not believe that there is any certainty that a general election would resolve the issues that this Parliament is grappling with. We need to deliver on the result of the referendum, which is to leave the EU. We have negotiated a good deal. There is a withdrawal agreement which can be agreed, allowing us to move on to discuss our future relationship with the EU. That is what we are focusing on. We are working across the House of Commons to try to find a way that this can be approved and we can start to move forward.

My Lords, at the weekend the Prime Minister said that the choice had boiled down to her withdrawal agreement or no Brexit. Given that we now have until October, the reason for not holding a people’s voice opportunity has gone. There is every possibility of having another referendum on the two choices that the Prime Minister says exist. Why can we not do that?

As I said in response to the noble Lord, Lord Newby, we have had a referendum. We have a result of a referendum and we should be implementing that.

My Lords, I have a technical question. I am slightly puzzled by the part of the Statement that says,

“so, for example, if we were to pass a deal by 22 May, we would not have to take part in European elections, and when the EU has also ratified, we would be able to leave at 11 pm on 31 May”.

I have a particular interest to declare. My 50th birthday is on 1 June, so I would be quite pleased not to be commiserating on having left on 31 May. I cannot understand how, if we ratified a deal on 22 May, we would be able to leave by 31 May. Does the European Parliament not have to ratify? It will cease to sit on, I believe, 22 April and not come back until July. How is it possible that the deal can be ratified in order for us to leave by the end of May if we do not ratify until 22 May?

Paragraph 10 of the EU Council decision states:

“If the United Kingdom is still a Member State on 23-26 May 2019, and if it has not ratified the Withdrawal Agreement by 22 May 2019, it will be under an obligation to hold the elections to the European Parliament in accordance with Union law. In the event that those elections do not take place in the United Kingdom, the extension should cease on 31 May 2019”.

So it is within the conclusions of the European Council decision.

My Lords—