Leaving the EU

With permission, Mr Speaker, I will make a statement on the Government’s ongoing work to secure a Brexit deal that honours our commitments to the people of Northern Ireland, commands the support of Parliament, and can be negotiated with the EU.

On 29 January, the House gave me a clear mandate and sent an unequivocal message to the European Union. Last week, I took that message to Brussels. I met President Juncker, President Tusk and the President of the European Parliament, Antonio Tajani. I told them clearly what Parliament wanted in order to unite behind a withdrawal agreement—legally binding changes to the backstop—and I explained to them the three ways in which that could be achieved.

First, the backstop could be replaced with alternative arrangements to avoid a hard border between Northern Ireland and Ireland. Yesterday my right hon. Friend the Secretary of State for Exiting the European Union met Michel Barnier to discuss the ideas put forward by the Alternative Arrangements Working Group, which consists of a number of my right hon. and hon. Friends. I am grateful to them for their work, and we are continuing to explore their ideas. Secondly, there could be a legally binding time limit to the existing backstop, or thirdly, there could be a legally binding unilateral exit clause to that backstop. Given that both sides agree that we do not ever want to use the backstop and that if we did so it would be temporary, we believe it is reasonable to ask for legally binding changes to that effect.

As expected, President Juncker maintained the EU’s position that it will not reopen the withdrawal agreement. I set out the UK’s position—strengthened by the mandate that the House had given me—that the House needs to see legally binding changes to the backstop, and that that can be achieved by changes to the withdrawal agreement. We agreed that our teams should hold further talks to find a way forward, and President Juncker and I will meet again before the end of February to take stock of those discussions.

So our work continues. The Secretary of State and the Chancellor of the Duchy of Lancaster are in Strasbourg today, and last week the Attorney General was in Dublin to meet his Irish counterpart. Following my own visits to Brussels, Northern Ireland and Ireland last week, I welcomed the Prime Minister of Malta to Downing Street yesterday, and I will be speaking to other EU27 leaders today and throughout the week. The Leader of the Opposition shares the House’s concerns about the backstop; I welcome his willingness to sit down and talk to me, and 1 look forward to continuing our discussions. Indeed, Ministers will be meeting members of his team tomorrow.

I think that there are a number of areas in which the whole House should be able to come together. In particular, I believe that we have a shared determination across the House not to allow the UK’s leaving the EU to mean any lowering of standards in relation to workers’ rights, environmental protections, or health and safety. I have met trade union representatives and Members on both sides of the House, and my right hon. Friend the Business Secretary is leading work to ensure that we fully address all concerns about these vital issues. We have already made legally binding commitments to no regression in these areas if we were to enter the backstop, and we are prepared to consider legislating to give these commitments force in UK law. And in the interests of building support across the House, we are also prepared to commit to asking Parliament whether it wishes to follow suit whenever the EU changes its standards in these areas. And of course we do not need to automatically follow EU standards in order to lead the way, as we have done in the past under both Conservative and Labour Governments. The UK has a proud tradition of leading the way in workers’ rights whilst maintaining a flexible labour market that has helped deliver an employment rate almost 6 percentage points above the EU average.

Successive Governments of all parties have put in place standards that exceed the minimums set by the EU. A Labour Government gave British workers annual leave and paid maternity leave entitlements well above that required by the European Union. A Conservative-led Government went further than the EU by giving all employees the right to request flexible working; and I was proud to be the Minister for Women and Equalities to introduce shared parental leave so that both parents are able to take on caring responsibilities for their child—something no EU regulation provides for.

When it comes to workers’ rights this Parliament has set a higher standard before, and I believe will do so in the future. Indeed we already have plans to repeal the so-called Swedish derogation, which allows employers to pay their agency workers less, and we are committed to enforcing holiday pay for the most vulnerable workers—not just protecting workers’ rights, but extending them.

As I set out in my statement two weeks ago, the House also agrees that Parliament must have a much stronger and clearer role in the next phase of the negotiations. Because the political declaration cannot be legally binding and in some areas provides for a spectrum of outcomes, some Members are understandably concerned that they cannot be sure precisely what future relationship it would lead to. By following through on our commitments and giving Parliament that bigger say in the mandate for the next phase, we are determined to address those concerns. The Secretary of State has written to all members of the Exiting the EU Committee seeking their view on engaging Parliament in this next phase of negotiations, and we are also reaching out beyond this House to engage more deeply with businesses, civil society and trade unions.

Everyone in this House knows that the vote for Brexit was about not just changing our relationship with the EU, but changing how things work at home, especially for those in communities who feel they have been left behind. [Interruption.] Addressing this and widening opportunities is the mission of this Government that I set out on my first day as Prime Minister, and I will continue to work with Members across the House to do everything we can to help build a country that works for everyone.

But one area where the Leader of the Opposition and I do not agree is on his suggestion that the UK should remain a member of the EU customs union. I would gently point out that the House of Commons has already voted against that, and in any case—[Interruption.]

Order. There is a lot of noise and heckling, but the record shows that everyone gets a chance to question the Prime Minister. I think it is right that she should have a proper and respectful hearing, and the same courtesy must be extended to the Leader of the Opposition in due course.

First, I would gently point out that the House of Commons has already voted against that, and in any case membership of the customs union would be a less desirable outcome than that which is provided for in the political declaration. That would deliver no tariffs, fees, charges or quantitative restrictions across all sectors, and no checks on rules of origin. But crucially it would also provide for the development of an independent trade policy for the UK that would allow us to strike our own trade deals around the world, something the Labour party once supported.

On Thursday, as I promised in the House last month, we will bring forward an amendable motion. This will seek to reaffirm the support of the House for the amended motion from 29 January—namely to support the Government in seeking changes to the backstop and to recognise that negotiations are ongoing. Having secured an agreement with the European Union for further talks, we now need some time to complete that process. When we achieve the progress we need, we will bring forward another meaningful vote, but if the Government have not secured a majority in this House in favour of a withdrawal agreement and a political declaration, the Government will make a statement on Tuesday 26 February and table an amendable motion relating to the statement, and a Minister will move that motion on Wednesday 27 February, thereby enabling the House to vote on it, and on any amendments to it, on that day. As well as making clear what is needed to change in the withdrawal agreement, the House has also reconfirmed its view that it does not want to leave the EU without a deal. The Government agree, but opposing no deal is not enough to stop it. We must agree a deal that this House can support, and that is what I am working to achieve.

I have spoken before about the damage that would be done to public faith in our democracy if this House were to ignore the result of the 2016 referendum. In Northern Ireland last week, I heard again the importance of securing a withdrawal agreement that works for all the people of this United Kingdom. In Belfast I met not just politicians but leaders of civil society and businesses from across the community. Following this House’s rejection of the withdrawal agreement, many people in Northern Ireland are worried about what the current uncertainty will mean for them. In this House we often focus on the practical challenges posed by the border in Northern Ireland, but for many people in Northern Ireland, what looms larger is the fear that the seamless border between Ireland and Northern Ireland that helped to make the progress that has followed the Belfast agreement possible might be disrupted. We must not let that happen, and we shall not let that happen.

I usually thank the Prime Minister for giving me an advance copy of her statements, but this one was handed to me just as I was leaving my office to come down here, so I can only assume that she entrusted it to the Transport Secretary to deliver it to me.

Our country is facing the biggest crisis in a generation, yet the Prime Minister continues to recklessly run down the clock. We were promised that there would be a deal last October; it did not happen. We were promised a meaningful vote on a deal in December; it did not happen. We were told to prepare for a further meaningful vote this week, after the Prime Minister had again promised to secure significant and legally binding changes to the backstop; that has not happened. Now the Prime Minister comes before the House with more excuses and more delays.

In her statement, the Prime Minister has failed to answer even the most basic questions. What progress has she made on identifying and working up the alternative arrangements? Have they been presented to the European Union? If not, when will they be presented? Will she set them out before this House and ask for its approval of them? In truth, it appears that the Prime Minister has just one real tactic: to run down the clock, hoping that Members of this House can be blackmailed into supporting a deeply flawed deal. This is an irresponsible act. She is playing for time, and playing with people’s jobs, our economic security and the future of our industries.

Yesterday, growth figures showed the lowest growth since 2012 and our manufacturing sector mired in recession. The decision by Nissan last week to pull its investment from its Sunderland plant may be only the thin end of a very long wedge. Uncertainty and falling confidence in this Government’s ability to deliver are putting jobs at risk. The Prime Minister, the Chancellor and the Secretary of State for Business, Energy and Industrial Strategy will be hearing the same warnings as I am: that several major manufacturers—household names employing tens of thousands of people—are poised to follow in Nissan’s footsteps.

The right hon. Gentleman mentioned the announcement by Nissan, but it is important that the House recognises that Nissan has confirmed that none of the current 7,000 jobs at the plant will be lost. It remains committed to the UK and more capital will be invested in Sunderland than was originally planned in 2016. He asked me about the progress on the alternative arrangements and whether they were going to be put before the European Commission. I remind him of what I said in my statement:

“Yesterday my right hon. Friend the Secretary of State for Exiting the European Union met Michel Barnier to discuss the ideas put forward by the Alternative Arrangements Working Group, which consists of a number of my right hon. and hon. Friends.”

I think that answers his question.

The right hon. Gentleman talked about Labour’s proposals. I referenced the issue with the customs union in my statement, but of course he also talks about being a member of the single market. Being a member of the single market means accepting free movement and one of the things that people voted for when they voted to leave the European Union was to bring an end to free movement. That is what this Government will deliver.

The right hon. Gentleman asked about the dates for votes that are going to take place in this House. I set those out in my statement as well. He referenced businesses quite a lot but, of course, businesses backed the deal—[Interruption.] They did. He talked about uncertainty but, of course, the best way to end uncertainty is to vote for a deal. He talked about running down the clock, but I wanted to have this sorted before Christmas. I brought a deal back—[Interruption.]

Order. Mr Matheson, I have nurtured for a long time an ambition to see you become a statesman. I think you are threatening that prospect with these noisy gesticulations. Be calm—Buddha-like.

Thank you, Mr Speaker. The deal was negotiated before Christmas, so it is not I who is trying to run down the clock—[Interruption.] It is no good Labour Members who voted against the deal pointing their fingers across the House. Every time somebody votes against a deal, the risk of no deal increases.

The right hon. Gentleman talked about acting in the national interest. Yes, we should be acting in the national interest and the national interest is in getting a deal agreed through this Parliament. That is why we are working with the European Union in everything that we are doing.

The right hon. Gentleman made several references to the issues of businesses, the issue of jobs and protecting jobs. We are going back to deal with the issue of the backstop, but the deal that we have negotiated with the EU—the political declaration that sets out the future—is a deal that protects jobs. The one thing that we know would threaten jobs in this country would be a Labour Government.

My right hon. Friend will recall that, when we served together in the Cabinet, the coalition Government were very enthusiastic about the prospect of negotiating EU trade deals with important trading partners around the world, including the prospect of a trade deal with Japan. The Japan deal was concluded on 1 February, and I think it covers a bigger proportion of the global economy than any trade deal negotiated so far. Does the Prime Minister aim to seek a customs arrangement that enables us to continue to enjoy, or to begin to get, the benefits of this important deal after 29 March, or is she insisting that we have to leave it and have our own trade policy, and begin our own negotiations with a country that has a much bigger economy than our own and is likely to demand concessions from the United Kingdom that it was not able to demand from the European Union?

My right hon. and learned Friend is absolutely right that the economic partnership agreement with Japan came into force on 1 February. Of course, prior to that, we had been trading with Japan on World Trade Organisation arrangements. It has been the policy of the Government, in relation to the trade deals that have been agreed between the European Union and countries around the world, that we see continuity in those agreements at the point at which we leave the European Union—we have also been working to see continuity were we to leave with no deal—but we also want to ensure that we can enhance our trade arrangements with countries around the world, and so build our own trade agreements with those countries. The best and most sensible approach is to maintain trading relations as they are as we leave the European Union, and then build and enhance those trading relations with our own independent trade agreements.

Sometimes I think the Prime Minister must live in a parallel universe. We have just heard that she wanted this concluded in December. Talk about rewriting history—it was the Prime Minister who denied us the right to have a meaningful vote. [Interruption.] She sits there laughing. Sometimes you should be honest with yourself, never mind being honest with the people of the United Kingdom.

Here we are, once again: a statement from a Prime Minister lost in a Brexit fantasy. We are 45 days from Scotland being dragged out of the European Union against our will, 45 days from economic catastrophe. She talks about Japan. Goods leaving Japan in the next few days will arrive after we leave the European Union, and we do not know what the tariff regime will be for those imported cars and training shoes, or whatever else. The ongoing mess of this Government never ceases to amaze.

Does the Prime Minister understand that EU leaders have refused to budge on any changes to the withdrawal agreement? Donald Tusk said on 6 February that the EU is not making any other offer. What does the Prime Minister not understand in that statement? Why does she not understand that the EU will not reopen the withdrawal agreement that she signed up to? Does she realise the danger of running down the clock? Forty-five days to go, and here we are with a Government who cannot even deliver a ferry contract.

Prime Minister, your response to my letter requesting sight of what economic analysis you have done on your own deal poses more questions than answers. The question is simple: have you done an economic assessment of your deal’s impact on the UK economy? I want a simple yes or no.

Prime Minister, you are asking this House to vote on your deal and you cannot even be honest about the economic impact. You expect MPs to vote for this, but your binary choice is simply laughable. A growing number are calling for an extension to article 50. Extend article 50 today.

The Prime Minister’s deal is a fraud. Ending freedom of movement and leaving the biggest trading bloc in the world, this will be catastrophic for Scotland. The UK is already suffering the cost of Brexit. Will she put an end to this economic madness?

Prime Minister, as students get set for university applications and as business owners look to prepare for the new financial year, your Government are causing a new wave of uncertainty. We on these Benches refuse to accept Scotland being dragged out of the European Union against our will. Ultimately, Scotland will have a choice: be an independent European nation or remain part of an inward-looking UK. Scotland’s voice must be respected.

The right hon. Gentleman has been making the same points in response to my statements, regardless of their content, for some time now. He talks about the economic analysis, and we published an economic analysis of the Government’s proposals.

That’s not true.

Order. There is plenty of scope for disagreement about what is true and what is not true but, in fairness, I repeat the point that the person who has the floor must be heard.

Thank you, Mr Speaker. I say to the right hon. Member for Ross, Skye and Lochaber (Ian Blackford) that, in his intervention from a sedentary position, I think he may have inadvertently misled the House on this matter.

Liar.

Order. Forgive me, but I did not hear what was said. [Hon. Members: “He said, ‘Liar.’”] I hope the word “liar” was not used. [Interruption.] Order. I am perfectly capable of handling this matter with alacrity, and I shall do so. [Interruption.] Order. If that word was used, it must be withdrawn at once without equivocation or qualification. [Interruption.] Order. If a Member on the Front Bench used that word—I am sorry, but I am not debating it, I am not arguing and I am not negotiating—it must be withdrawn at once.

I admit that I did not see which Member used the word, but I am advised on good authority that it was used by the leader of the Scottish National party. If so—I want the debate to continue, and it will—I simply ask the right hon. Gentleman to withdraw that word. He cannot accuse another Member in this House of dishonesty. Withdraw.

In courtesy to yourself, I withdraw. [Interruption.]