Leaving the European Union

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 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, this 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, and I told them clearly what Parliament wanted in order to unite behind a withdrawal agreement: namely, legally binding changes to the backstop. I explained to them the three ways in which this can be achieved.

First, the backstop could be replaced with alternative arrangements to avoid a hard border between Northern Ireland and Ireland. Yesterday, my right honourable friend the Secretary of State for Exiting the European Union met with Michel Barnier to discuss the ideas put forward by the Alternative Arrangements Working Group, comprising a number of my honourable and right honourable friends. I am grateful to that group for its work and we are continuing to explore its 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 both sides agree that we do not ever want to use the backstop, and that if we did it would be temporary, we believe it is reasonable to ask for legally binding changes to this effect. As expected, President Juncker maintained the EU’s position that it would not reopen the withdrawal agreement, and I set out the UK’s position, strengthened by the mandate that this House gave me, that this House needs to see legally binding changes to the backstop, and 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 he 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 today in Strasbourg, and last week the Attorney-General was in Dublin to meet his Irish counterpart.

Following my 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 EU 27 leaders today and throughout the week.

The right honourable gentleman the leader of the Opposition shares the concerns of this House on the backstop. I welcome his willingness to sit down and talk to me and I look forward to continuing our discussions. Indeed, Ministers will be meeting members of his team tomorrow.

I think there are a number of areas where the whole House should be able to come together. In particular, I believe we have a shared determination across this House not to allow the UK leaving the EU to mean any lowering of standards in relation to workers’ rights, environmental protections or health and safety. I have met trade unions and Members from across the House, and my right honourable 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.

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. 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, while maintaining a flexible labour market that has helped deliver an employment rate almost six 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 those required by the European Union. A Conservative-led Government went further than the EU by giving all employees the right to request flexible working. 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 that 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 future. Indeed, we already have plans to repeal the so-called Swedish derogation, which allows employers to pay their agency workers less, and 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. 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 changing not just our relationship with the EU but how things work at home, especially for those in communities who feel they have been left behind. 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.

One area where the right honourable gentleman 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 this. 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. 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 on Tuesday 26 February make a Statement and table an amendable Motion relating to the Statement; 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 needs 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. 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 business 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, which helped make the progress that followed the Belfast agreement possible, might be disrupted. We must not let that happen. We shall not let that happen.

The talks are at a crucial stage. We now need to hold our nerve to get the changes this House requires and deliver Brexit on time. By getting the changes we need to the backstop, by protecting and enhancing workers’ rights and environmental protections, and by enhancing the role of Parliament in the next phase of negotiations, I believe we can reach a deal that this House can support. We can deliver for the people and the communities that voted for change two and a half years ago, whose voices for too long have not been heard. We can honour the result of the referendum and set this country on course for the bright future that every part of this United Kingdom deserves. That is this Government’s mission. We shall not stint in our efforts to fulfil it. I commend this Statement to the House”.

My Lords, I am grateful to the Leader of the House for repeating the Statement. I listened carefully but I do not think that any of us are any the wiser having heard it for a second time. I am not clear about the purpose of today’s Statement. As we have come to expect, the Government have precious little to report.

Like many noble Lords, I remember the days when Prime Ministers made Statements of substance that genuinely updated Parliament and provided new information—Statements that showed true leadership. In today’s Statement, the Prime Minister has not told us anything that we do not already know. We already know that in opening the negotiations, Mrs May set out a series of unhelpful and unrealistic red lines; for example, in ruling out a new comprehensive and permanent customs union. We already know that she sought legally binding changes to the backstop, replacing it with alternative arrangements to prevent a hard border—but the only reason for the backstop is that the Government were unable to identify any viable alternative arrangements. We already know that the EU emphatically rejected reopening negotiations on the agreement signed by the Prime Minister in November. We already know that Mrs May consistently and irresponsibly refuses to rule out leaving the EU without a deal, even though her own Government’s economic analysis shows that this would be hugely damaging.

Today’s Statement confirms that the Prime Minister has made no progress other than holding a series of further meetings to debate the exact same issues she has been debating for nearly two years. If media reports are accurate, the EU is totally bewildered that she seeks to return to the negotiating table while refusing to budge even one inch from those Lancaster House red lines. How many deadlines has the Prime Minister now missed? The agreement was supposed to have been reached in October; the original vote was pulled in December; and now there is not even a guaranteed vote on the revised deal before the end of the month. Each week MPs are told to expect a meaningful vote the following week, only for it to be delayed again and again.

My Lords, given that we are now only six weeks from the date on which we are due to leave the EU, this is a most remarkable Statement. It basically says that, despite her trips to Brussels and Ireland, her hard stare at Juncker and dinner with Varadkar, the Prime Minister has made no progress whatsoever in offering—far less negotiating—credible new terms on which we might leave the EU.

The Prime Minister’s cricketing hero is Geoffrey Boycott, who had a test average of 47.7. By comparison, I am afraid, the Prime Minister’s Brexit negotiations average is close to negligible. It seems that, rather than the somewhat pedestrian Boycott, her real hero comes from Dickens. I wonder when she first read about Mr Micawber and his optimistic but desperate philosophy that disaster would be averted simply by something turning up. This has clearly been adopted by the Prime Minister as her guiding principle. Of a more positive agenda there is no sign, and in two areas in particular this calamitous lack of leadership is seriously irresponsible.

First, it is now clear that it is impossible to get through all the necessary Brexit-related legislation by 29 March. Even if a deal were eventually agreed by the Commons, an extension of the Article 50 period would be necessary, if only to get this legislation through. By all accounts, the Prime Minister realises this. But instead of being open and asking for an extension herself, she is waiting to be defeated on this in the Commons, at which point she will go to Brussels, blame the Commons, and ask for one then. She is adopting the example of the French revolutionary leader, who, pursuing the mob, exclaimed, “I am their leader. I must follow them”. It is a complete and abject abrogation of leadership.

Secondly, there is the impact that lack of any certainty is having on the business community. Noble Lords may have read in the Sunday Times of the Wiltshire-based cheesemaker who sells a third of her product to Canada, and who is now having to suspend further shipments because she simply does not know on what basis they might be allowed into Canada after 29 March. Hers is one of thousands of businesses in the same boat. Talking of boats, there are ships ready to sail to and from the Far East which are not due to reach their destination until after 29 March. What advice on tariffs, labelling and standards are the Government giving those contemplating putting their goods on these ships?

I thank the noble Baroness and the noble Lord for their comments. The noble Baroness asked about no-deal preparations. I stress again that this is not what the Government want to do, but any responsible Government must prepare for it. Since 2016, the Government have spent around £4 billion preparing to leave the EU. I have attended numerous meetings—she asked about this—at which preparations for no deal were discussed. That is the responsible thing to do. I have also spent many hours in this Chamber talking about the benefits of the deal that the Prime Minister has negotiated, a deal we continue to work on.

The noble Lord and the noble Baroness asked about legislation. I remind the House that we should not underestimate the amount of legislation we have already scrutinised this Session; in the past fortnight alone, we have considered three Brexit Bills. However, I accept that there is still a significant amount of legislation to be passed. We will continue to work with the House to ensure that it has the time to do that. We will work constructively across the House on both primary and secondary legislation to ensure that that happens.

Once again, the noble Lord asked about extending Article 50. I can only reiterate what I have said on numerous occasions: Article 50 cannot be extended by the UK alone; it has to be done in consultation and agreement with the EU. It is unlikely simply to agree to extend it without a plan for how we are going to prove a deal that it knows can get through the House of Commons. That is the reason the Prime Minister is working so hard to achieve that.

The noble Lord and the noble Baroness mentioned uncertainty for business. Again, that is why we are committed to getting a deal and why we have negotiated an implementation period. The noble Baroness specifically mentioned Nissan. She is right that it is deeply disappointing that the extra jobs that would have come from building the X-Trail will no longer be created. However, it is important to remember that Nissan has confirmed that none of the current 7,000 jobs at the plant will be lost and that it remains committed to the United Kingdom. I remind the noble Lord, Lord Newby, that the UK is currently enjoying the longest unbroken quarterly growth streak of any G7 nation and has outperformed the OBR forecast of 1.3% growth in 2018.

My Lords, if I may, I say to my noble friend that this is a deeply disappointing Statement. Instead of asking Parliament to hold its nerve, which is an exercise only in procrastination or party management, surely the Prime Minister should say to Parliament that staying in the European Union on existing terms is far better than any deal she can negotiate. Surely that should be her recommendation to Parliament and to the country in a further referendum. She may fail and she may fall, but if she does that, she would be doing right by her country and would earn a great deal of respect.

The Prime Minister is committed to implementing the result of the 2016 referendum. She has negotiated a deal and we are now seeking legally binding changes to the withdrawal agreement to deal with the concerns on the backstop, while guaranteeing no hard border between Northern Ireland and Ireland, in order that we can get the House of Commons to agree a deal that is in the best interests of both the UK and the EU.

My Lords, I support strongly the point made by the noble Viscount, Lord Hailsham. The Statement makes a great deal about a guarantee of social, environmental and other rights. That sounds very good but is it not true that in reality, constitutionally, no Parliament can bind its successor? Further, those of us with longish memories recall how the Government fought tooth and nail against the so-called job-destroying Social Chapter—but when the Labour Government brought it in, we saw a rise in employment and a rise in prosperity.

We have been very clear that we are committed to improving workers’ rights. Indeed, as the Statement makes clear, we are prepared to commit to asking Parliament whether it wishes to follow suit whenever the EU changes its standards in relation to workers’ rights and environmental standards, which will of course be going forward.

My Lords, does the Leader of the House not recognise that it is a bit rich to tell us all to keep our nerve when we are strapped in the back of a car which the Prime Minister is driving towards a cliff? I wonder if she would like to comment on, and perhaps take some remedial action on, the fact that in the whole of this Statement there is not one word about the role of your Lordships’ House—not one word. The Prime Minister says she is reaching out to business, to trade unions and to civil society. She is not reaching out to this House, apparently. She notes that the other place has voted to reject leaving without a deal. She does not seem to have noticed that this House rejected that twice. Could the noble Baroness perhaps exert her efforts to persuading the Prime Minister that we do still exist?

I am happy to reassure the noble Lord that the Secretary of State for Exiting the EU is indeed writing to members of the EU committee in the same way that he has written to members of the House of Commons committee to seek views on engaging Parliament in the next phase of the negotiations. I can assure the noble Lord that the voice of your Lordships’ House will be heard. Of course, Ministers regularly attend and give evidence to our committees, which are considered very important. Certainly the views of your Lordships’ House are well heard.

Can the noble Baroness confirm that if, on 27 February, another meaningful Motion is before the House of Commons and is amended to rule out a no-deal Brexit, the Government at that time would be bound by such a decision?

I am obviously not going to prejudge what the House of Commons does, but the Motion that will be brought forward will be an amendable Motion, and obviously amendments can be put down and voted on, and we shall see what the House of Commons decides.

My Lords, would it not be more honourable for the Conservatives to acknowledge that it was the Liberal Democrats, especially Jo Swinson MP, who championed rights such as flexible working and shared parental leave as well as equal marriage, and that we had to fight like terriers against the Tory Beecroft review, which wanted to even abolish unfair dismissal rights? As for agency workers, what has stopped the Government from announcing the pay derogation before now? Why should anyone believe that the Tories have seen the light and are to be trusted on employment or environmental regulations?

I am sorry about the churlish tone that the noble Baroness has decided to take. We are committed to workers’ rights and environmental standards. We have made that clear regularly. Governments of all hues have done a lot of work in this area, and, as I have said, we have plans to repeal the Swedish derogation, which allows employers to pay their agency workers less. We are committed to enforcing holiday pay for the most vulnerable workers. We will continue to ensure that this Parliament champions workers’ rights, and that is something we are all proud of.

My Lords, I welcome what the Statement says about the Good Friday agreement. Of course, this is not the first time that the Government have emphasised this point—they have done so many times. But is it not all the more regrettable that Mr Juncker and the Taoiseach saw fit to parade a poster in public saying that Britain did not care about peace in Northern Ireland? Will she join with me in hoping that in future the negotiations will be conducted in a much more constructive spirit?