- [6th Allotted Day]
- Debate resumed (Orders 5, 4 December and 9 January).
- Question again proposed,
- That this House approves for the purposes of section 13(1)(b) of the European Union (Withdrawal) Act 2018, the negotiated withdrawal agreement laid before the House on Monday 26 November 2018 with the title ‘Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community’ and the framework for the future relationship laid before the House on Monday 26 November 2018 with the title ‘Political Declaration setting out the framework for the future relationship between the European Union and the United Kingdom’.
- 12:08 pm
- May I begin on a personal note, Mr Speaker? I am very, very grateful to Members on both sides of the House, from all parties, who very kindly contacted me or sent messages over the course of the Christmas holidays following my son’s accident. I am very grateful for the kind words that many sent. My son is recovering well and I just wanted to register my appreciation.A second brief point I want to make is that I want to ensure that as many colleagues as possible have the opportunity to intervene during my remarks. I recognise that we will be addressing a number of important issues today, not least the vital importance of maintaining environmental protection and the protection of workers’ rights, but I also recognise that many colleagues wish to speak, so I will try to keep my answers as brief as possible.It is perhaps appropriate, Mr Speaker, given that this is a debate on European matters, that we should be emulating what happens in European football competitions by having a second leg of this debate following the first one. In hotly contested European matches, strong views are sometimes held, not just about the merits of each side, but about the referee, but all I want to say is that I am personally grateful to you, Mr Speaker. You sat through the whole of the first leg of this debate and intend to sit through the second, which is an indication of how important this debate is and how seriously you take your responsibilities. Across the House, we all owe you thanks for how you have facilitated this debate.I also want to thank the many civil servants in my Department and elsewhere who have worked hard to secure the withdrawal agreement with the European Union. Officials, negotiators and others sometimes find themselves in the firing line but unable to speak for themselves, so let me speak for them: the dedicated public servants in the Department for Environment, Food and Rural Affairs, the Department for Exiting the European Union and other Departments have worked hard to honour the referendum result and to secure the best possible deal for the British people. I place on record my thanks and those of my Government colleagues for their wonderful work.
- The difficulty is that we do not know the extent of the compromise because negotiations on the future agreement have yet to begin, and because we will have paid the money upfront and will be unable to walk away from these negotiations, so we will be in a weak position. Can my right hon. Friend reassure me about the level of compromise that is likely to be made?
- I very much take on board my right hon. Friend’s point. As I will explain in greater detail in my remarks, I think we are in a far stronger position than many allow. The £39 billion that we will be giving to the EU is in part settlement of our obligations and in part a way of ensuring we have a transition period so that we can adjust to life outside the EU. The backstop that has been negotiated—let us all remember that originally the EU wanted a Northern Ireland-only backstop, but we now have a UK-wide backstop—allows us, as a sovereign nation, freedom in critical areas. These are freedoms that honour the referendum result and create real difficulties for European countries, which I will explore in greater detail in a moment.It is critical that we recognise that the agreement the Prime Minister has negotiated will mean that we will be outside the direct jurisdiction of the European Court of Justice, outside the common fisheries policy, outside the common agricultural policy, outside the common foreign and security policy and outside the principle of ever closer union, and that we will have control of our borders and our money. The days of automatic direct debits from this country, at whatever level people might think appropriate, will end, and as a result the referendum verdict will be honoured.
- Earlier, the Secretary of State said that the deal laid out by the Prime Minister was a good deal for everybody in the UK. Can he seriously stand at that Dispatch Box and say that our friends in Northern Ireland are getting a good deal out of this deal?
- I absolutely can. One of the opportunities that the citizens of Northern Ireland would have as a result of the deal is unimpeded access not just to the rest of the UK market, which is essential for the maintenance of our Union, but to the rest of the EU. That is why the Ulster Farmers’ Union, Ulster business and so many in Northern Ireland’s civil society have said that, with all its imperfections, the deal protects not only the integrity of the UK, but their livelihoods, jobs and futures.
- My right hon. Friend mentioned the Ulster Farmers’ Union. Has he had time today to see the letter written by the presidents of all four farmers unions to every Member setting out quite clearly why no deal would be so damaging to the interests of rural communities?
- I have read that letter. It has been sent to every Member, and I would ask every Member to give it close attention. Our farming communities, like our country, were split over whether to leave. A majority of farmers voted to leave, recognising the opportunities that being outside the CAP would present, but I have yet to meet a single farmer who believes that a no-deal Brexit would be the right option for this country when the withdrawal agreement in front of us provides the opportunity for tariff-free and quota-free access for agricultural products to the EU.I will say a bit more about the specific challenges of a no-deal Brexit. It is an intellectually consistent position, but it is important, even as we apprise it and pay respect to its advocates, that we also recognise the real turbulence that would be caused, at least in the short and medium term, to many of our farmers and food producers.
- I find myself in agreement with the Secretary of State about the risks and dangers of a no-deal Brexit, but his claim that people will be better off flies in the face of the Government’s own economic analysis, which suggests that people will be poorer, the economy smaller and economic growth slower. How can he stand at the Dispatch Box and say something the Government have found to be otherwise?
- The report emphatically does not say that people will be poorer. It is important to pay proper respect to projections while also applying the appropriate analytical tools. Some of the economic projections for no deal and Brexit have proved to be unfounded. Projections have been wrong in the past and may well be wrong in the future, but it is the case—here I do agree with the hon. Lady—that, irrespective of projections for different paths, there are certain brute and unalterable facts about no deal, including the imposition of tariffs by the EU, that would create friction and costs, and that would mean, at least in the short term, economic turbulence for parts of the UK economy.
- Will my right hon. Friend welcome the great news from the port of Calais that it will not create any barriers and that our trade will flow perfectly smoothly if we just leave the EU on 29 March, and the news that there will be aviation agreements so that planes will of course fly quite normally? Does this not show that “Project Fear” is just a caricature of itself and a disgrace in seeking to sell us short and to lock us into something we have agreed to leave?
- My right hon. Friend makes two very important points. It is absolutely right that there have been some lurid and exaggerated stories, both during the referendum and subsequently, about the impact of certain Brexit scenarios, and he is absolutely right that in aviation and the commitments of some of our partners who manage ports there have been welcome signs. It is also important to recognise, however, that the European Commission has made it clear that, in the event of a no-deal Brexit, there will be 100% checks on products of animal origin and live animal exports, which will add significantly to friction.Tariffs would also be imposed, and while overall tariffs on agricultural produce in the EU are around 11%, which can be discounted by changes in the valuation of sterling, it is also the case that the import duties on some products, such as sheep meat, are more than 40%, and in some cases considerably more. That would certainly impose costs on our farmers and food producers. They are resilient, imaginative, energetic and dynamic, and in the long term, of course, they will flourish, but these are undeniable short-term costs.
- Does the Secretary of State agree that it is important to listen to the likes of GE Aviation, which employs a lot of people in my constituency and says that a“disorderly ‘no deal’ exit…would prevent…challenges for our operations, supply chains and customers”,and exhorts me and others to ratify the withdrawal agreement, which would“provide business with the certainty it needs”?
- My hon. Friend makes a very good point. Again, across business there was a range of voices —for remain and leave—during the Brexit referendum, but what is striking is that many prominent voices among those who argued that we should leave have also made it clear that they believe that a no-deal Brexit would be the wrong outcome. They see significant opportunities for Britain outside the EU. Lord Wolfson, one of our most talented entrepreneurs in charge of one of our biggest retail chains, and Richard Walker, the chief executive of Iceland, one of our most dynamic and environmentally friendly supermarkets, both voted to leave the EU. They believe that to be the right choice for Britain and they both—employing thousands of our fellow citizens—also say that a no deal would pose significant challenges.