Exiting the EU: New Partnership 12.37 pm The Secretary
of State for Exiting the European Union (Mr David Davis) With
permission, Mr Speaker, I shall make a statement on the
Government’s plans for exiting the European Union. Today we
are publishing a Government White Paper on the UK’s exit from, and
new partnership with, the European...Request free trial
Exiting the EU: New Partnership
12.37 pm
-
The Secretary of State for Exiting the European Union (Mr
David Davis)
With permission, Mr Speaker, I shall make a statement on
the Government’s plans for exiting the European Union.
Today we are publishing a Government White Paper on the
UK’s exit from, and new partnership with, the European
Union. The Government have made clear that they will honour
the choice made by the people of the United Kingdom. On 23
June 2016, the United Kingdom will leave the European
Union—no, that is wrong. On 23 June 2016, the people voted
for the United Kingdom to leave the European Union. It is
just as well that I corrected that; I should have read this
first, shouldn’t I? [Laughter.] Don’t worry, we have two
more years to go—two years of this!
The House is currently considering a straightforward Bill
that will give the Prime Minister the authority to trigger
article 50 of the treaty on European Union and begin the
negotiation over our exit. The Bill is not about whether or
not we leave the EU, or even about how we do so; it is
about implementing a decision already taken by the people
of the UK in last year’s referendum. However, we have
always said that we will detail our strategic aims for the
negotiation and seek to build a national consensus wherever
possible. The White Paper sets out those aims and the
thinking behind them. It confirms the Prime Minister’s
vision of an independent, truly global UK, and an ambitious
future relationship with the EU.
That vision is based on the 12 principles that will guide
the Government as they fulfil the democratic will of the
people of the UK: providing certainty and clarity where we
can as we approach the negotiations; taking control of our
own laws and statute book; strengthening the Union by
securing a deal that works for the whole of the UK;
maintaining the common travel area and protecting our
strong historic ties with Ireland; controlling immigration
from the European Union; securing the rights for EU
citizens already living in the UK and the rights of UK
nationals living in the EU; protecting and enhancing
existing workers’ rights; ensuring free trade with European
markets, while forging a new strategic partnership with the
European Union, including a bold and ambitious free trade
agreement and a mutually beneficial new customs agreement;
forging free trade agreements with other countries across
the world; ensuring that the United Kingdom remains the
best place for science and innovation; co-operating in the
fight against crime and terrorism; and, finally, delivering
a smooth and orderly exit from the EU. Those 12 objectives
amount to one goal: a new, positive and constructive
partnership between Britain and the European Union that
works in our mutual interest. All of them are key, but let
me highlight some of the specific issues in the White
Paper.
The White Paper reiterates our firm view that it is in the
UK’s interest for the EU to succeed politically and
economically. That cannot be said too firmly: we want the
EU to succeed politically and economically. We therefore
approach the negotiation to come in the spirit of good will
and working towards an outcome in our mutual benefit.
We recognise the EU’s principle of the four freedoms, so
the UK will leave the single market. Instead, we seek a new
strategic partnership, including a bold and ambitious free
trade agreement and a mutually beneficial new customs
agreement that should ensure the most free and frictionless
trade in goods and services that is possible. That will be
to our mutual benefit. As the White Paper notes, we export
£230 billion of goods and services to the EU, while
importing £290 billion of goods and services from the EU
every year.
The White Paper also sets out how, after we leave the EU,
the UK will look to significantly increase its trade with
the fastest growing export markets in the world. Although
we cannot sign new trade deals while we are still members,
we can prepare—we are preparing—the ground for them. This
means updating the terms of our membership of the World
Trade Organisation, of which the UK was a founding
member—it was GATT, the general agreement on tariffs and
trade, in the first instance. Modern free trade agreements
require mechanisms to resolve disputes and to provide
certainty for businesses on both sides, so the White Paper
examines the precedents in this area and makes it clear
that we will negotiate an arrangement that respects UK
sovereignty.
We recognise the need to provide clarity and certainty
wherever we can during a period in which some uncertainty
is inevitable. We will therefore bring forward another
White Paper on the great repeal Bill, which will lay out
our approach in detail. This legislation will mean the
repeal of the European Communities Act 1972, while
converting existing EU law into domestic law at the point
of exit. That means that the position we start from—a
common regulatory framework with the EU single market—is
unprecedented. This negotiation will not be about bringing
together two divergent systems, but about finding the best
way for the benefits of the common systems and frameworks
that currently enable UK and EU businesses to trade with
and operate in each other’s markets to continue when we
leave the EU.
The White Paper also sets out that we will take control of
our own laws, so that they are made in London, Edinburgh,
Cardiff and Belfast, and ensure that we can control the
number of people coming to the UK from the EU. The
jurisdiction of the European Court of Justice in the UK
will come to an end. It will be for Parliament and the
devolved legislatures to determine significant changes to
reflect our new position.
I have said at this Dispatch Box that there will be any
number of votes on substantive policy choices. To that end,
the White Paper makes it clear that we expect to bring
forward separate legislation in areas such as customs and
immigration.
Delivering a smooth, mutually beneficial exit, while
avoiding a disruptive cliff-edge, will be the key. A
never-ending transitional status is emphatically not what
we seek, but a phased process of implementation for new
arrangements—whether immigration controls, customs systems,
the way we operate and co-operate on criminal and civil
justice matters, or future regulatory and legal frameworks
for business—will be necessary for both sides.
As the White Paper says, the time needed to phase in new
arrangements in different areas may vary. As one of the
most important actors in global affairs, we will continue
to work with the EU to preserve UK and European security,
fight crime and terrorism, and uphold justice. We must work
more closely, not less, in those areas.
We will continue to seek to build a national consensus
around our negotiating position, so we are talking all the
time to business, civil society, the public sector and
representatives of the regions. We have engaged the
devolved Administrations in this process. While no part of
the UK can have a veto, we are determined to deliver an
outcome that works for the whole of our country. We
continue to analyse the impact of our exit across the
breadth of the UK economy, covering more than 50 sectors —I
think it was 58 at the last count—to shape our negotiating
position.
To conclude, the referendum result was not a vote to turn
our back on Europe. It was a vote of confidence in the UK’s
ability to succeed in the world and an expression of
optimism that our best days are still to come. Whatever the
outcome of our negotiations, we seek a more open,
outward-looking, confident and fairer UK that works for
everyone. The White Paper is available on the Government
website. I have arranged for copies to be placed in the
Libraries of both Houses.
12.45 pm
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(Holborn and St Pancras)
(Lab)
Normally I would thank the Secretary of State for early
sight of his statement, but this statement says nothing. A
week ago at Prime Minister’s questions, the Prime Minister
said that there would be a White Paper. Yesterday she said
that there would be a White Paper tomorrow, and the
Secretary of State now makes a statement saying that there
is a White Paper, but as the White Paper was not delivered
until a few minutes ago, how can ask him meaningful
questions about it?
For months we have been calling for a plan; that was
refused on the basis that there would not be a running
commentary. Then the Government agreed to a plan but
delivered a speech. They were forced to concede under
pressure that there would be a White Paper, but now a White
Paper has been produced too late in the day for us to ask
meaningful questions of the Secretary of State in this
session. That is completely unacceptable.
The first fight on Brexit is very clear: it is a fight
about giving this House a meaningful role in holding the
Government to account. The Government had to be forced by
the Supreme Court to involve Parliament at all in the
article 50 process. They have been forced to produce a
White Paper, and they have been forced to concede a final
vote. Before Christmas, the Secretary of State was standing
at the Dispatch Box refusing to confirm that there would be
a vote in this House at the end of the exercise.
The decision to leave was taken on 23 June last year. What
matters now are the terms agreed under article 50, and the
nature and extent of our new relationship with the EU. In
her Lancaster House speech, the Prime Minister adopted a
risky approach—a wish list with gaps, inconsistencies and
an unacceptable fall-back position. Now we need time to
debate this White Paper properly in this House and a vote
on its contents.
On the question of votes, from flicking through the White
Paper, I see that all that is said about the final vote, at
paragraph 1.12, is that the final deal that is agreed will
be put to
“a vote in both Houses of Parliament.”
We have tabled amendments for consideration next week that
seek a meaningful vote—a vote in this House before a vote
is taken in the European Parliament. Without such a vote,
all hon. Members will have to watch on their screens the
European Parliament debating our deal before we get to
express any views about it. That is completely unacceptable
and it demeans this House.
Finally, I note from a perusal of the White Paper that
there is nothing that progresses the situation of EU
nationals in this country. We have been calling time and
again for unilateral action to be taken before article 50
is triggered, yet the White Paper disappoints on that
front.
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Mr Davis
Let me start with the purpose of the White Paper: to inform
all the debates—not just today’s—in the coming two years.
The shadow Brexit spokesman is exactly right: what matters
above all else is not the amour propre of the Labour party
or whatever, but the terms that we get for this
negotiation. That is about the future of Britain, and it is
what this House should care about first and foremost.
The hon. and learned Gentleman talks about a meaningful
vote, but I have not yet quite understood what he means by
that. I have been here long enough to have voted thousands
of times in this House and I have never yet voted on
something that I considered not meaningful. Every vote in
this House is meaningful.
There will be a meaningful vote at the end. The hon. and
learned Gentleman makes much of the time that this has
taken, but I have been saying for a long time to the Select
Committee—its Chairman is not here—that it was
inconceivable that we would not have a meaningful vote at
the end of this process.
The hon. and learned Gentleman’s last point was on EU
nationals. I have a track record of defending the interests
of people who are under pressure. Indeed, the last
thing—pretty much—the leader of his party did was to go
with me to Washington to get the last Brit out of
Guantanamo Bay. I am not going to be throwing people out of
Britain, and for the hon. and learned Gentleman even to
suggest that is outrageous. Let me say this to him: I want
the European Union nationals here to have all the rights
they currently have, but I also want British citizens in
Europe to have their rights. We owe a moral debt to EU
nationals here, but we owe a moral and legal debt to the
citizens of Britain abroad. We will protect both.
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Sir (Stone) (Con)
I deeply welcome my right hon. Friend’s statement and the
White Paper, which is most emphatically in our national
interest. Tomorrow, the Heads of Government of the 27 other
member states will convene in Malta, where they propose to
make a declaration about their vision for the future of
Europe. President Tusk’s letter of 31 January does not bode
well. Will my right hon. Friend encourage the 27 to
recognise that by promoting ever closer, more centralised
and unreformed political union, they are creating the very
circumstances that they claim to want to avoid and
depriving themselves of the trust of the citizens they
claim to represent? They are effectively going in the wrong
direction.
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Mr Davis
My hon. Friend has led on this issue for about 30 years and
has always had an honourable, straightforward and
insightful view of the European Union. We have said that we
are going to be a full member until the moment we leave,
and that means being a responsible member. We will exercise
our influence over what we think is the best interest of
the European Union until the moment we leave, because we
want the European Union to be strong, stable and effective.
In these times of difficult international relations, we
need the EU as an anchor, and that is the policy that we
will pursue.
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(North East Fife)
(SNP)
I thank the Secretary of State for his statement. He is not
a man of few words, but he is perhaps a man of few
meaningful words. This is just another panicked U-turn.
When it comes to European matters, it is not much of an
achievement to be the second most chaotic party in the
Chamber. The Government have had seven months in which to
pull this together, yet we got the White Paper only a
minute before the Secretary of State got to his feet to
make his statement. I concede that he is more experienced
than me, but it is striking that we are getting the White
Paper after Second Reading of the European Union
(Notification of Withdrawal) Bill and two sitting days
before its Committee stage. How are we to question him
about the White Paper when we are given it just before he
gets to his feet? I believe that that shows an astonishing
disrespect for Parliament. He would not have put up with
this were he not on the Government Front Bench.
What are the Government afraid of? They do not want to give
us any opportunity for scrutiny, so there must be something
they are afraid of. They do not have the courage of their
convictions. Scotland voted to remain as the blue in the
red, white and blue Brexit, so are the civil servants
having to pull together all these last-minute policy
changes? The Secretary of State said in his statement that
the devolved legislatures would face “significant changes”.
Does that mean that a legislative consent motion will now
be required? This is a mess; it is a bourach. It is going
to have an impact on each and every one of us, and people
deserve better.
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Mr Davis
The hon. Gentleman says that this has taken seven months,
but we have been in the European Union for 40 years. This
is about reversing—well, not reversing but amending—and
dealing with 40 years’ accumulated policy and law. He
mentioned Second Reading, but that Bill will trigger the
process. It does no more than to put into effect the
people’s decision of 23 June last year, so I cannot see how
he thinks the publication of the White Paper after Second
Reading is problematic. There will be any number of
occurrences in this House when the 50-odd Scottish National
party Members will have a chance to hold the Government to
account, to make their views known on policy, and to put
forward the interests of Scotland, whether during the
passage of the great repeal Bill or that of the other
primary and secondary legislation that will follow on from
it. I do not think he can complain about an absence of
democracy in this respect.
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Several hon. Members rose—
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Mr Speaker
Order. There is extensive interest in this statement, which
I am keen to accommodate, but to do so will require brevity
from Back Benchers and Front Benchers alike, especially in
the light of the subsequent business, which is very well
subscribed and to which I have to have regard. So it would
help if we could have short questions and short answers.
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Mr (Chingford and
Woodford Green) (Con)
I commend my right hon. Friend for the White Paper. The
complaints about it not being detailed enough and arriving
only at the last moment are of course nonsense. The Prime
Minister set out most of its elements in her 12-point
speech, and those who missed that should go back and read
it again. They will see that its points are all reflected
in this document. I want to ask my right hon. Friend about
migration. The key concern in academia and in the high
added value, low volume areas is that they should get a
much earlier statement about how flexible any future permit
system will be. Will he take that a little further and say
that those areas will see next to no change, and that it is
the low value, high volume areas that we need to control?
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Several hon. Members rose—
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Mr Speaker
Order. Needless to say, people who were not here at the
start of the statement should not be standing. That goes
without saying; it is an established feature of our
proceedings.
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Mr Davis
My right hon. Friend the Member for Chingford and Woodford
Green (Mr Duncan Smith) is another Member of this House who
has given a great deal of time and dedication to this
issue. On migration, it is my job to bring the decision
back to the House, but it is not my job to make the
decisions thereafter. However, it is clear to me that the
policies for controlling migration after our exit will be
designed to further our national interest. Britain is a
science superpower. We are the leading scientific centre in
Europe and as a result, we will want to encourage the
competition for talent to come here. The same will apply in
finance, engineering, medicine and all the other areas in
which skills are at a premium. We will want to attract
those people, so we do not expect our policies to have any
deleterious effects on industry at all.
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(Bishop Auckland)
(Lab)
The Secretary of State has said that we will have
meaningful votes on a range of things. How can it be, then,
that paragraph 8.43 of the White Paper commits us to
leaving the customs union, which will have a devastating
effect on manufacturing, without any analysis of the
effects and with no impact assessment?
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Mr Davis
There has been considerable analysis of this—
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Well, it is not in the White Paper.
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Mr Davis
Let me just finish my answer. The point is made in the
policy paper that we want to have a customs agreement. That
will follow directly as a result of the free trade
agreement. If we are successful in getting low or zero
tariffs in the free trade agreement, and no non-tariff
barriers, we should succeed in getting a customs agreement
that reflects that, and that makes it very straightforward
to continue trading with Europe.
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(Worthing West)
(Con)
I think it would be wise to get to the end of the
negotiations before we draw any conclusions on what
conclusions we have come to. That would be the meaningful
way to do it, although I think that those who use the word
“meaningful” four times in a speech are being rather
meaningless. The key point is that what we are after is the
same thing that European Union members are
after—arrangements that are good for them, good for us and
good for the world.
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Mr Davis
My hon. Friend is exactly right. That is the aim of our
policy. He is also right to suggest that, at the end, the
House will be able to hold the Government to account and
make a meaningful decision about the policy, but that will
not be the only opportunity. There will be many points
along the way when we will debate every policy issue that
arises from the process—from customs agreements to
immigration. The House will be very much in control of
that.
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(Nottingham East)
(Lab/Co-op)
In the 60 seconds that my hon. and learned Friend the
Member for Holborn and St Pancras (Keir Starmer) had to
look through the White Paper, he was spot on to zone in on
the obfuscation on page 11 about the lack of a meaningful
vote for Parliament at the end of the process. There is no
point in having a vote after the Secretary of State has
already signed things off with the European Union, treating
Parliament as some sort of afterthought. Will he rule out
now the Government showing such contempt for Parliament?
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Mr Davis
This is my sixth statement to the House in less than six
months—[Interruption.] Let me finish. The House will have
the opportunity to vote on any number of pieces of
legislation before we get to the end and then will have a
vote to decide whether what it gets is acceptable. I cannot
see how it can be made more meaningful than that.
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(Gainsborough)
(Con)
On page 49 of the White Paper, the Government state:
“We have an open mind on how we implement new customs
arrangements with the EU”.
It is important to be admirably clear so that everyone
knows where we stand, so will the Secretary of State
confirm for the avoidance of doubt that we are not only
leaving the EU and the single market, but definitely
leaving the customs union?
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Mr Davis
If my hon. Friend reads the rest of that chapter, he will
see that we will exclude ourselves from the common
commercial policy and common external tariff, which amounts
to exactly what he says.
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(Vauxhall) (Lab)
I welcome the principles in the White Paper, particularly
around protecting and enhancing existing workers’ rights.
Will the Secretary of State confirm that there is nothing
to negotiate with the other EU countries on workers’ rights
because they already exist in our law and will be
protected? The people who have been going around saying
that such rights are threatened should be told that they
are not.
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Mr Davis
The hon. Lady is absolutely right. The Government’s
approach is to maintain every single piece of employment
protection that exists now, which incidentally is much
better than that of most European countries, and to enhance
it. There should be no concern about that at all.
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Mrs (Chipping
Barnet) (Con)
I urge the Secretary of State to give priority to the
matters in chapter 6 of the White Paper on securing the
rights of EU nationals. I have in mind a constituent who is
an EU national and who has sadly been receiving cancer
treatment for many years. I am anxious to be able to give
her certainty as soon as possible that she will continue to
have access to the NHS.
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Mr Davis
That is part of the point of doing this. We are talking
about not only residents’ rights, but the right of access
to healthcare. That matters both for Europeans in Britain
and for Britons abroad. I absolutely agree with my right
hon. Friend.
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Ian Paisley (North Antrim) (DUP)
“The end is not yet and the best is yet to be,” is a
benediction that any Presbyterian on the Ulster Bench will
welcome—even the Wee Frees who have clambered on at the
end. I welcome the White Paper that the Secretary of State
has produced today, in particular the three chapters that
refer to the Union, to strengthening the relationship with
the Republic of Ireland and to fighting and combating
terrorism. Is he familiar with the commentary of Dr Ray
Bassett, the former Irish ambassador and diplomat? He made
it clear that Ireland’s position should now be about
forging a new relationship with the United Kingdom, because
the other 26 parts of the EU do not really listen to
Ireland.
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Mr Davis
I am not familiar with that commentary, but I welcome the
hon. Gentleman’s view about the chapter on the relationship
with Ireland. One of the most important parts of the last
seven month’s preparation has been striking a relationship
with Ireland that ensures that we underpin the peace
process, maintain the stability of Northern Ireland, keep
an open border, and so on. It is incumbent on the British
Government to be as helpful as we can to the Irish
Government because they are in the most difficult position,
so that is what we are doing.
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(The
Cotswolds) (Con)
Paragraph 8.43 of the White Paper makes it clear that we
want to leave the customs union so that we can negotiate
free trade agreements “around the world.” If we leave the
customs union, we will be bound by an external tariff
unless we negotiate otherwise. Is that the correct
position?
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Mr Davis
Generally speaking, a most favoured nation arrangement
applies under WTO rules, but countries are generally
allowed to make free trade agreements at whatever level
they seek. We want to ensure that as many of the existing
EU free trade agreements carry straight over, which will
also be lower than MFN rates.
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(Wirral South)
(Lab)
Given the old-age dependency ratio and its importance for
the public finances and given the absence of the concrete
information in paragraph 5.9 of the White Paper, what level
of net migration to our country does the Secretary of State
anticipate across future years?
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Mr Davis
The Government’s policy is that migration will be at a
sustainable level. The point to understand here is that
such decisions are made on a year-by-year basis. It is not
Government policy to make the British economy suffer as a
result of labour or talent shortages or anything else. It
is perfectly proper for a Government to want to control
their own migration policy and not leave it open-ended. The
solution to the problem the hon. Lady cites is not just
about not managing the problem.
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Mr (Harwich and North
Essex) (Con)
When the Government serve notice on the European Union
under article 50, will they take that opportunity to frame
the negotiation by making it clear that we expect to agree
the framework of our future relationship, as specified in
article 50? Otherwise, we will effectively be negotiating
the divorce arrangements in the dark, and the European
Union would not be observing the principle of sincere
co-operation.
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Mr Davis
My hon. Friend refers to the need to negotiate ongoing
arrangements in parallel with the departure arrangements.
As he says, article 50 refers to having regard to ongoing
arrangements, and a negotiation on departure arrangements
cannot be concluded before the ongoing arrangements have
been concluded. I have already made that point to , my opposite
number, and I think the Prime Minister has made that point
to a number of her opposite numbers around the European
Union. This will be the first issue that we need to resolve
at the beginning of the negotiations, so my hon. Friend is
quite right.
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(Blaenau Gwent)
(Lab)
Will Parliament get a vote on the Government’s intended
final deal before the deal is struck with the European
Union?
-
Mr Davis
I suspect that the final vote here will be before the final
ratification in the European Union. Its ratification
process is much slower than ours will be.
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(Bath) (Con)
I want to put it on the record that I am extremely pleased
that the White Paper has been published, and I thank the
Secretary of State and his team for listening to hon.
Friends and our calls for a White Paper. Will he join me in
sending a message to my constituents to feed in their
views? In the spirit of listening to his hon. Friends, will
he also clarify whether the Government will consider formal
reporting back to the House?
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Mr Davis
I am not quite sure what my hon. Friend means by formal
reporting. I have visited the Exiting the European Union
Committee once and will be appearing in front of it again,
and this, as I said, is my sixth statement to the House. We
come to the House at every possible opportunity to tell
Members what is going on. There will be subsequent debates,
including substantive debates on policy. There will
undoubtedly be other Brexit debates—more are planned
already—so there is no question that the House will not be
fully informed. That we are somehow not paying attention to
the Opposition is an illusion—a chimera—that they like to
run out. We have given them a White Paper and answers about
the customs union and the single market. I do not know how
much more open I can be without being dissected.
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(East Renfrewshire)
(SNP)
The Government seem to be in a constant state of delayed
reaction, but we finally have the White Paper. It contains
a statement on strengthening trade with the world that
reads like a tweet, and a conspicuous amount of space that
is totally blank. Does that reflect the Government’s
thinking on Brexit?
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Mr Davis
The Government’s thinking on Brexit is very clear. If
someone disagrees with it, that does not mean that it does
not exist. That is the problem that SNP Members have had
all the way through this process. They just do not like
it—[Interruption.] Sure, half a page is blank. Wonderful. I
think that is the case in every book I own.
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(Hazel Grove)
(Con)
I welcome the White Paper and hope that it heralds unity
both in our party and in the country on our approach to
leaving the European Union. May I therefore commend to all
Members yesterday’s speech by my right hon. Friend the
Member for North East Bedfordshire (Alistair Burt)? He was
the epitome of grace and magnanimity.
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Mr Davis
I agree with him entirely on both counts.
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(Carshalton and Wallington)
(LD)
Does the Secretary of State accept that the best way to
continue the benefits of the common systems and frameworks
that enable UK and EU businesses to trade would be to stay
in the single market and rejoin the European Free Trade
Association? Does he also accept that, for UK businesses to
have continued access to the single market, there will need
to be mechanisms to ensure that UK regulations do not
diverge from EU regulations? Can he explain what happens to
sovereignty then?
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Mr Davis
The answer to the right hon. Gentleman’s first question is
no, because, again, membership of EFTA would put us within
the reach of European regulations and the European Courts.
Frankly, that would take away what influence we do have. We
have laid out in the White Paper what is the best
relationship, which is a customs agreement and a free trade
agreement. Bear in mind that we are starting from a
position of identity. He makes a good point about
maintaining that identity, and we will publish proposals on
that in due course, but this is what we are going to do. It
is perfectly possible to go the route I am talking about
without rejecting the decision of the British people on 23
June last year.
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(Filton and Bradley
Stoke) (Con)
Will my right hon. Friend inform the House of how the
legislation, and the White Paper in particular, will
hopefully help to protect and enhance Gibraltar’s unique
position and of the progress he is making towards a free
trade deal between us and Gibraltar? I understand that such
a deal can happen before we leave the EU.
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Mr Davis
The Under-Secretary of State for Exiting the European
Union, my hon. Friend the Member for Worcester (Mr Walker),
gave evidence to the House of Lords on precisely
that—indeed, on all the dependent territories—and it can be
taken as read that we will rigorously protect their
interests.
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(Newcastle upon Tyne
Central) (Lab)
The Secretary of State observes that the UK was a founding
member of the WTO, but he forgets that we were the driving
force behind the completion of the single market. Does he
understand how angry British business is that he has
abandoned the single market before negotiations even start?
-
Mr Davis
In these debates, membership of the single market and
access to the single market are often conflated. What
British business wants is unfettered access, and what
German, French and Italian business wants is unfettered
access to our market. That is what we seek to produce.
-
Mrs
(Berwick-upon-Tweed) (Con)
Can the Secretary of State confirm that we will be coming
out of the Prüm framework and building a new relationship
on data sharing to fight crime and terrorism that ensures
that my constituents’ most personal data are no longer
subject to the ECJ?
-
Mr Davis
As we are coming out of the European Union, that will
happen almost by definition, but that is not to say that we
will not be making new arrangements. The Prüm framework
covers data exchange, DNA and so on, and it is very clear
in our minds that we will be making new arrangements to
keep terrorism, crime and so on under control. We will no
doubt protect my hon. Friend’s constituents from the ECJ.
-
Mr (Sheffield South East)
(Lab)
The Local Government Association has been asking for
meetings with Ministers about the impact of these processes
on councils and on how more powers can be devolved, yet in
the Secretary of State’s statement I did not hear a single
reference to local councils. I cannot see a single
reference in the White Paper, having read through it very
quickly. Will he now commit the Government to having
meaningful discussions with the LGA, and will he commit to
the principle of subsidiarity, too?
-
Mr Davis
There is only so much I can do in a limited statement. The
Minister of State has already met the LGA, and he has sent
out invitations to local councils so that he can talk to
them. In the last statement, or maybe in the one before, I
said that I am willing to meet the mayors of the various
regions of the country after they are elected in the next
round. It must be taken as read that we are not putting the
regions to one side. The very first public meeting I had
after becoming Secretary of State was with people in
Blackburn, Lancashire.
-
(Beckenham)
(Con)
There are three British ambassadors in Brussels. Does my
right hon. Friend think that the staff of our ambassador to
the European Union will be enhanced, or indeed might his
post be scrapped, after we leave the European Union?
-
Mr Davis
I assume that my hon. Friend is talking about our permanent
representative to the European Union, who has 120 brilliant
staff, and they all work for me. I do not know what our
representational arrangements will be, but he is referring
to an ambassador to Belgium, an ambassador to NATO—I
assume—and an ambassador to UKRep. We will undoubtedly have
close relationships with the European Union thereafter, so
it will be a pretty sizeable embassy I should think, but it
will not be what it is now.
-
(Lewisham East)
(Lab)
Our current membership of the single market is governed by
the European economic area agreement. The Government
contend that we are a member of the EEA by virtue of our
membership of the EU—that may or may not prove to be the
case—but can the Secretary of State be clear about the
implications of our domestic legislation in that regard,
specifically the European Economic Area Act 1993? Will the
Government repeal that Act? If so, when? Will we get a
vote?
-
Mr Davis
As it stands—as far as I can see, having gone through this
quite carefully—once we are outside the EU, the question of
whether we automatically cease to be a member of the EEA
becomes a legal empty vessel. We will look at that. If we
do propose to withdraw from the EEA, we will come back and
tell the House.
-
Sir (New Forest West)
(Con)
When European subjects have come to my surgery to talk
about their rights, they have left in agreement that those
rights must go hand in hand with the rights of UK subjects
living in their own country. I hope the Secretary of State
has got the message.
-
Mr Davis
I have got the message and, incidentally, so have the
leaders of most of the countries with the most people here.
They also understand that we have to protect the rights of
British people at the very same time as we protect the
rights of their citizens. There is no question that it is
not going to happen. The question is when it will happen,
and we are trying to do it as quickly as possible.
-
(South Antrim)
(UUP)
We welcome the White Paper, particularly chapter 4 on our
links with Ireland, including on trade, security and the
wish for unfettered access, but at the Select Committee on
Northern Ireland Affairs this week a customs specialist
said that, for trading in goods, there will have to be
border points either between Northern Ireland and Ireland
or, much worse, between Scotland and England and the island
of Ireland. Will the Secretary of State guarantee that we
are not going to have hard borders of that type?
-
Mr Davis
We are not going to have hard borders. I will take the
question on two different levels. First, the common travel
area has existed since 1923 and, in that respect, nothing
will change. On goods, there will be the softest, most
invisible and most frictionless border we can find. There
is a lot of technology these days, ranging from automatic
number plate recognition through to the tagging of
containers, with trusted trader arrangements across the
border, and such things operate between Norway and Sweden,
the US and Canada, and so on—countries with very amicable
relations and very open borders—and we will do the same
with Ireland.
-
(South West
Wiltshire) (Con)
The White Paper is an impressive document, for which I
thank the Secretary of State—the Venn diagram on page 48 is
particularly insightful. He will know that the European
Union has concluded a pathetically small number of free
trade agreements with other countries, but there are some.
Will he confirm that there will either be a continuity
arrangement with those countries on Brexit or that the
agreements will be the basis for an accelerated
relationship with those very few countries?
-
Mr Davis
My right hon. Friend the Secretary of State for
International Trade has already been in touch with the most
important countries to us—South Korea and others like
it—and they all seem very keen both to maintain grandfather
rights and to improve on the deals and make them much more
tailored and specific to both our interests.
-
(Caerphilly) (Lab)
The White Paper says that the great repeal Bill
“will preserve EU law where it stands at the moment before
we leave the EU.”
The White Paper goes on to say that it foresees two pieces
of primary legislation, but that:
“There will also be a programme of secondary legislation
under the Great Repeal Bill to address deficiencies in the
preserved law”.
What deficiencies does the Secretary of State have in mind?
-
Mr Davis
As the great repeal Bill will pass through European law—the
acquis communautaire—in its original wording, it might
refer to European institutions when it should refer to
British institutions. For example, it might say that local
government has to publish its procurement contracts in the
Official Journal of the European Union, which would no
longer be appropriate—it would be more appropriate to
publish them on the Government website. Secondary
legislation will be principally aimed at such technical
concerns. Major areas of policy change will primarily be
addressed in primary legislation, which is why we cited
those two examples.
-
(Richmond (Yorks))
(Con)
I very much welcome my right hon. Friend’s constructive
approach. In that light, I draw his attention to a report
by the European Parliament’s Committee on Economic and
Monetary Affairs, which highlighted European businesses’
financial reliance on the City, expressed concern if that
access were to be disrupted and urged negotiators to
approach the issue in a constructive and open fashion.
-
Mr Davis
And we fully intend to do so, as we think it is in the
interests of both ourselves and the European Union, because
we do not want anything that causes instability in the
eurozone, any more than we want anything that damages the
City.
-
(Rutherglen and
Hamilton West) (SNP)
Remarkably, the White Paper does not contain a single
reference to Eurojust or any real indication of our future
co-operation with the EU on criminal justice matters. That
raises the question: if something so significant has been
omitted, what else is missing? Never mind a White Paper,
this is a lightweight paper.
-
Mr Davis
The hon. Lady worked hard to get her soundbite out. The
White Paper contains a whole section on justice and home
affairs, and we have made it very plain, over and over
again—I even said this in my statement at the
beginning—that we intend to maintain closer co-operation
with Europe, not have less co-operation, on security, crime
and intelligence matters. We must understand that Europe
has a great deal to gain from this, because we are the
intelligence superpower in Europe—we have the most powerful
intelligence agencies—and therefore on things such as
tackling crime and terrorism we are very important to them,
as we think they are to us, too.
-
(Montgomeryshire)
(Con)
Significant discussion has already taken place between the
Prime Minister and the Welsh Government following last
June’s referendum, and there has been discussion in the
Welsh Parliament, and I very much welcome that. In the
interests of UK unity, Wales’s interests must be taken into
account, including through discussion of this White Paper.
Will the Secretary of State guarantee Wales’s involvement
and that it will continue to feature in all our
discussions? We accept, of course, that there can be no
veto.
-
Mr Davis
My hon. Friend is absolutely right in what he says, and
this has been our approach. We have had a number of
meetings of the Joint Ministerial Committee, two of them
chaired by the Prime Minister and three of them chaired by
me. We have been to Wales to see the Welsh Government to
talk about some of these issues. My right hon. Friend the
Minister of State is appearing before the Welsh Parliament—
-
The Minister of State, Department for Exiting the European
Union (Mr David Jones)
The Committee.
-
Mr Davis
The Welsh Committee—sorry. He is appearing before the
Committee on 14 February, I believe. We are taking the
interests of Wales extremely seriously. We will operate
this negotiation so that no part of the UK loses—that is
the aim.
-
(Bridgend) (Lab)
If we are leaving the single market and the customs union,
will the Secretary of State give a guarantee to my workers
at Ford and at Tata Steel, who make the steel for Nissan
cars? Two thirds of both Ford and Nissan cars are exported
to the EU, so will he guarantee that they will have
tariff-free access to the EU markets? Or is this only a
promise to negotiate and seek?
-
Mr Davis
This is a negotiation, but if the hon. Lady reads the White
Paper, she will see that it sets out that European exports
of goods and services to us total £290 billion, whereas
ours to them are worth £230 billion. So they clearly have a
strong interest—as strong an interest as we do—in
tariff-free goods access, because for them goods are a much
bigger part of it as well. The disparity is more than £60
billion, so there is every reason to expect that we will
succeed in what we are intending to do, which is protect
the jobs of her constituents.
-
(Cleethorpes)
(Con)
My right hon. Friend will recall that at last week’s Brexit
questions I asked about the seafood sector, and I can tell
him that it will be particularly pleased with the comment
in paragraph 8.16 giving it full support. However, he will
also be aware of the long-standing grievance of the fishing
communities up and down the country following their being
sold out in the original negotiations. Will he reiterate
yet again that that will not occur on this occasion?
-
Mr Davis
Yes.
-
(West
Dunbartonshire) (SNP)
The Secretary of State makes much of the process and joked
that we might be at this for another two years, yet in that
time the unelected and unaccountable House of Lords will
have more influence on the implementation of the White
Paper, and the negotiations and relationships that we must
forge for trade agreements, than the Governments of
Scotland, Wales and Northern Ireland. How does that
strengthen the Union?
-
Mr Davis
That is simply not the case. As I just said, we have
regular monthly meetings with the Scottish Government, the
Welsh Government and the Northern Ireland Executive—when
they are in play—and we are taking what they say very
seriously. We will not agree with everything they say, as
the hon. Gentleman well knows. The Scottish Government’s
paper was presented at the last meeting and there were
areas of agreement on employment protection and on
environmental protection, but disagreement on the concept
of a “carve out” on the single market and a discussion
about how the devolution would work. That hardly
constitutes not paying attention to the Scottish
Government.
-
Dr (Twickenham)
(Con)
I welcome this White Paper and I am glad the Government
have listened to Members. EU nationals play a vital part in
our universities, workplaces and families. Although I
support the need for some control on freedom of movement,
will he ensure in negotiations that workers, students and
family members find that our borders remain open if they
are from the EU? After all, control does not mean arbitrary
restrictions.
-
Mr Davis
Absolutely, control does not mean slamming the door. As I
said, it is in the UK’s interest to keep attracting talent,
and if we attract talent, we attract the families—that goes
without saying. Earlier, I was asked whether I could
promise something that is to be negotiated, but this is
something we will decide in this House, for the first time,
in a couple of years’ time.
-
(Stalybridge and
Hyde) (Lab/Co-op)
One crucial and reasonable question for the Secretary of
State to answer is: how does he see frictionless,
unfettered trade with the EU continuing after we have
signed free trade deals with other countries? Surely the
greater the divergence between ourselves and the single
market in external tariffs and standards, the greater their
need at some point to impose customs checks on us.
-
Mr Davis
Obviously, we need to seek to maintain some sort of
standard parity, be it by a measure of equivalence or by
something else, depending on the product. The area where
the deals outside and the deals with the European Union
conflict is on rules of origin. We will have to have a good
rules of origin scheme, just as any other free trade area
has. For example, the Canadian treaty has specific rules of
origin and we will need to do the same. But that is a very
small burden by comparison with the sorts of things people
are worrying about, if we get the customs agreement we
seek.
-
Mr (Christchurch)
(Con)
When, if ever, does my right hon. Friend think the EU will
issue an equivalent White Paper, setting out with equal
clarity the agreed negotiating objectives of the 27 other
members?
-
Mr Davis
My hon. Friend’s question sort of answers itself, but I hope
that it will be once the EU has received the article 50
letter from us—so in April or May. It will receive that
letter in March and will respond in April or May.
-
(Heywood and Middleton)
(Lab)
I know that today is groundhog day, but why are we exiting
the customs union in order to recreate the customs union?
-
Mr Davis
It is to create a customs agreement; it is in order to enable
us to develop free trade agreements with that huge portion of
the world where there is very fast growth and we have a
strong market presence. Some 40% of our trade, or as much as
we have with the EU, is with areas where we do not have free
trade agreements. So this is a very large area and it is
growing, sometimes twice as fast as the EU is. We are taking
this approach for the future opportunities. People often talk
about the implications of the referendum for young people,
but the biggest implication is the prospect of jobs in the
future, many of which will come from global markets, not just
European ones.
-
Mr (Ribble Valley)
(Con)
A lot of the politicians in EU states say that they are
against torture, but do they not recognise that the fact that
they are not willing to come to a deal with my right hon.
Friend about EU citizens being allowed to stay, live and work
here and British citizens being allowed to stay, live and
work in the EU countries is a form of mental torture and
trauma that they are perpetrating upon them? Will he redouble
his efforts to get this deal done as quickly as possible and
to make the announcement as quickly as possible? If only one
or two countries are holding out, for whatever reason, will
he be prepared to name and shame them, so that their citizens
here can bring pressure upon them to get that deal done?
-
Mr Davis
I will certainly do the first half; I will certainly redouble
my efforts, although they are pretty intense in any case, to
ensure that this happens quickly. My hon. Friend is right
that we are talking about just a few countries. I suspect
their reasoning is the communautaire reasoning of not
starting anything before the negotiations start, and I hope
this will be rapidly resolved thereafter.
-
(New Forest East)
(Con)
Does not the fact that so many Members from both sides of the
House who wanted us to remain in the European Union
nevertheless last night voted to trigger article 50 set a
fine example that Members of the unelected upper House would
do very well to follow?
-
Mr Davis
I was sitting there calculating whether my right hon.
Friend’s question today was longer than his speech yesterday,
and I think it was.
Yes, I hope Members in the upper House do pay attention. The
Bill is a manifestation of the will of the people—nearly 17.5
million people—and I would expect the upper House, which
quite properly has its place and its rights, to respect that
will.
-
The Parliamentary Under-Secretary of State, Department
for Exiting the European Union (Lord Bridges of
Headley) (Con)
My Lords, with the leave of the House, I will now
repeat a Statement made in the other place earlier
today by my right honourable friend the Secretary of
State for Exiting the European Union. The Statement is
as follows:
“With permission, Mr Speaker, I wish to make a
statement on the Government’s plans for exiting the
European Union. Today we are publishing a Government
White Paper on the UK’s exit from, and new partnership
with, the European Union. This Government have made
clear that they will honour the choice made by the
people of the United Kingdom on 23 June 2016. The UK
will leave the European Union. This House is currently
considering a straightforward Bill that will give the
Prime Minister the authority to trigger Article 50 of
the Treaty on European Union and begin the negotiation
over our exit. That is not a Bill about whether or not
we leave the EU, or even how we do so, but about
implementing a decision already taken by the people of
the UK in last year’s referendum. But we have always
said that we would detail our strategic aims for the
negotiation and seek to build a national consensus
wherever possible.
This White Paper sets out those aims and the thinking
behind them. It confirms the Prime Minister’s vision of
an independent, truly global United Kingdom and an
ambitious future relationship with the European Union.
This is based on the 12 principles that will guide the
Government in fulfilling the democratic will of the
people of the United Kingdom. These are: providing
certainty and clarity where we can as we approach the
negotiations; taking control of our own laws and
statute book; strengthening the union by securing a
deal that works for the whole of the United Kingdom;
maintaining the Common Travel Area and protecting our
strong historic ties with Ireland; controlling
immigration from the European Union; securing the
rights for European Union citizens already living in
the United Kingdom and the rights of United Kingdom
nationals living in the European Union; protecting and
enhancing existing workers’ rights; ensuring free trade
with European markets, forging a new strategic
partnership with the European Union, including a bold
and ambitious free trade agreement and mutually
beneficial new customs agreement; forging ambitious
free trade agreements with other countries across the
world; ensuring that the United Kingdom remains the
best place for science and innovation; co-operating in
the fight against crime and terrorism; and, finally,
delivering a smooth, orderly exit from the EU.
These 12 objectives amount to one goal: a new, positive
and constructive partnership between Britain and the
European Union that works in our mutual interest. All
of them are key, but let me highlight some of the
specific issues in the White Paper. It reiterates our
firm view that it is in the United Kingdom’s interest
for the European Union to succeed politically and
economically and so we approach the negotiations to
come in a spirit of goodwill and working to an outcome
in our mutual benefit. We recognise the European
Union’s principle of the four freedoms and so the
United Kingdom will leave the single market. Instead,
we seek a new strategic partnership, including a bold
and ambitious free trade agreement and a mutually
beneficial new customs agreement that should ensure the
most free and frictionless trade in goods and services
that is possible. That will be to our mutual benefit.
As the White Paper notes, we export £230 billion-worth
of goods and services to the EU while importing £290
billion-worth of goods and services from the EU every
year. It also sets out how, after we leave the EU, the
United Kingdom will look to significantly increase its
trade with the fastest-growing export markets in the
world. While we cannot sign new trade deals while still
a member, we can and are preparing the ground for them.
This means updating the terms of our membership of the
World Trade Organization, of which the United Kingdom
was a founding member. Modern free trade agreements
require mechanisms to resolve disputes and to provide
certainty for businesses on both sides. So the White
Paper examines precedents in this area and makes it
clear that we will negotiate an arrangement that
respects UK sovereignty.
In terms of clarity and certainty, we recognise the
need to provide it wherever we can during a period
where some uncertainty is inevitable, so we will bring
forward another White Paper on the great repeal Bill
which will lay out our approach in detail. This
legislation will mean the repeal of the European
Communities Act while converting existing EU law into
domestic law at the point of exit. That means that the
position we start from—a common regulatory framework
with the EU single market—is unprecedented. This
negotiation will not be about bringing two divergent
systems together. It is about finding the best way for
the benefits of the common systems and the frameworks
that currently enable the UK and EU businesses to trade
with and operate in each other’s markets to continue
when we leave the EU.
The White Paper also sets out that we will take control
of our own laws, so that they are made in London,
Edinburgh, Cardiff and Belfast and ensure that we can
control the number of people coming to the United
Kingdom from the European Union and that the
jurisdiction of the Court of Justice of the European
Union in the United Kingdom will come to an end. It
will be for Parliament and the devolved legislatures to
determine significant changes to reflect our new
position.
I have said at this Dispatch Box before that there will
be any number of votes on substantive policy choices.
To that end, the White Paper makes it clear that we
expect to bring forward separate legislation in areas
such as customs and immigration. Delivering a smooth,
mutually beneficial exit, avoiding a disruptive cliff
edge, will be key. A never-ending transitional status
is emphatically not what we seek, but a phased process
of implementation of new arrangements—whether
immigration controls, customs systems, the way we
co-operate on criminal and civil justice matters, or
future regulatory and legal frameworks for
business—will be necessary for both sides. As the White
Paper says, the time needed to phase in new
arrangements in different areas may vary.
As one of the most important actors in global affairs,
we will continue to work with the European Union to
preserve United Kingdom and European security, fight
crime and terrorism and uphold justice. We must work
more closely—not less—in these areas. We will seek to
build a national consensus around our negotiating
position, so we are talking all the time to business,
civil society, the public sector and representatives of
the regions. We have engaged the devolved
Administrations in this process and, while no part of
the United Kingdom can have a veto, we are determined
to deliver an outcome that works for the whole of our
country. We continue to analyse the impact of our exit
across the breadth of the United Kingdom economy,
covering more than 50 sectors, to shape our negotiating
position.
To conclude, the referendum result was not a vote to
turn our back on Europe. It was a vote of confidence in
the United Kingdom’s ability to succeed in the world
and an expression of optimism that our best days are
still to come. Whatever the outcome of our
negotiations, we seek a more open, outward-looking,
confident and fairer United Kingdom that works for
everyone. The White Paper is available on the
Government website and I have arranged for copies to be
placed in the Libraries of both Houses”.
1.17 pm
-
of Kentish Town
(Lab)
My Lords, I thank the Minister for repeating the
Statement and the House for agreeing to hear it so
early, before having time to see the White Paper. It
was a courtesy to me so that I can get away for the
funeral of my favourite uncle, Uncle Joe. That is why
we are having this debate early—so I can go and bid
farewell to him—and I thank the House for its
tolerance.
I also thank the Government for now—perhaps a little
late—putting a White Paper to Parliament and making an
announcement here. It was a tad regrettable that the
Prime Minister’s two key speeches were made outside
Parliament; one to the Conservative Party on 2 October
and one in Lancaster House on 17 January. It is
Parliament—and particularly the House of Commons—which
speaks for the country, so we are pleased that the
White Paper, which we have long sought, has been
announced at the Dispatch Box.
The driving motivation for Mrs May and her negotiators
must be the long-term economic and social well-being of
the UK. Yesterday, the Prime Minister said that she led
the country. I hope that she can and will, because only
by exiting the EU in a way that serves all the
country—Scotland, Wales, London and the areas that have
done less well from globalisation—will she truly be
able to work to unite a divided country and also enable
our economy, businesses, workers and consumers to
benefit, while safeguarding our environment and our
relationship with our nearest neighbours and close
allies.
Some of what is suggested in the White Paper we can
support: tariff-free, encumbrance-free and—I think the
Minister said—frictionless access to the EU market; the
ability to recruit talent; support for science and
innovation; and, as I have stressed before, the
partnership that we need with the EU 27. But we also
have serious concerns about the White Paper, which will
form our agenda for scrutiny here and, I hope, for the
ongoing work of our EU committees, to which the
Minister paid tribute earlier.
Consumers are not highlighted in the 12 principles but
are vulnerable to losing compensation from cancelled
flights and dangerous products once we are out of the
European alert system. They will possibly be unable to
use our courts to follow insurance claims for car
accidents abroad, and may even face visa requirements
to travel in the EU. The environment is also not one of
the overarching 12 principles, despite enormous
improvements to the environment made at EU level in
co-operation with our EU allies. Nor is how to make
good our absence from Euratom—just three paragraphs in
the White Paper. We regret any departure from the
customs union. We will seek to understand why on earth
this is an objective, given the problems it will cause
for our importers and exporters, particularly of
complex products or components, and for the service
sector, as was raised this morning.
I am also curious about the background to the White
Paper. Is it just the Lancaster House speech but in a
more normal White Paper style? Or is it what we would
normally expect from a Government who know what they
are doing, based on careful cost-benefit and options
appraisal, with impact assessments prepared for the
various options? The noble Baroness, Lady McIntosh of
Pickering, asked some fairly simple but fundamental
questions this morning about such assessments, but
answers came there none. I ask again: will the
Government, while holding any negotiation tricks safely
up their sleeve, complete and publish impact
assessments on the White Paper’s objectives? Will they
make these available to our EU committees in a timely
manner so that their reports can influence the
Government’s thinking?
When will the Government publish the other White Paper,
not on what is called the great repeal Bill but on what
is actually a retrenchment Bill? Will there be
pre-legislative scrutiny of that Bill?
-
(LD)
My Lords, I also thank the Minister for repeating the
Statement, but I ask him from where the Government
believe they derive the mandate to leave the single
market, in an extreme version of Brexit. This
dishonours the legacy of Margaret Thatcher, breaks the
Conservative manifesto promise to stay in the single
market and breaches the wishes of 90% of voters who, in
a poll last November, said they wanted to stay in the
single market. There was no choice on the ballot last
June that asked people, “Do you want to leave the
single market?”.
Therefore, will the Minister tell me why this version
of Brexit, which will be so destructive to our economy
and jobs, is being chosen? It will also be a great deal
more bureaucratic. Any alternative to the smooth trade
we get with the single market and the customs union,
especially for supply chains that exist not only in
manufacturing but in services and, as I learned this
morning, universities, which depend on the free
exchange of academics, will be more bureaucratic and
mean more red tape. The Conservatives always tell us
they stand for slashing red tape. Also, how do we
expect to get the benefits of common systems and
frameworks when we are not in the single market and
customs union? I do not understand how we can derive
such benefits.
The Prime Minister said in her Lancaster House speech
that,
“no deal … is better than a bad deal”.
In the light of that, will the Minister please explain
how the Government will fulfil the promises of
certainty, clarity and a smooth orderly exit, avoiding
a disruptive cliff edge? If the Government propose to
walk away from the negotiations, how can they avoid a
disorderly, chaotic Brexit, which is precisely what
business and most of us fear? Where is the national
consensus? Where are the 48% of people who voted to
remain reflected in the White Paper, which I
acknowledge I have not had the opportunity to read,
although I read the Statement, which talks about a
national consensus? I second the request for the
publication of impact assessments for us to know
exactly where the Government think they are taking us
in concrete reality.
The Prime Minister has admitted that the UK will
continue to pay into the EU budget for the sectoral
benefits they expect to get. Where will the money come
from for the NHS, promised by the leave campaign? It is
currently about £11 billion; we all know how
cash-starved the NHS is.
On the declared red line of no jurisdiction for the
European Court of Justice, how will we then co-operate
on crime and terrorism, and exchange data? These
Benches fully support cross-border co-operation on
policing and security, as well as civil justice. The
Home Secretary was pressed on this in the other place
by the Home Affairs Committee. It asked how she was
going to get those arrangements while denying the
jurisdiction of the Luxembourg court. She floundered in
answering that question, as did the Minister of State
in the Ministry of Justice to the EU Justice
Sub-Committee on Tuesday in the area of civil justice.
It simply does not add up.
I also ask the Minister a question we keep asking
because it is important, particularly to this House. It
is a cross-party concern that EU nationals and Brits in
the rest of the EU should not be a pawn in
negotiations. There is nothing whatever to prevent the
Government giving a unilateral guarantee and a
simplified procedure for EU nationals to stay, and for
Brits in the rest of the EU. It is morally indefensible
as well as economically illiterate not to do so. Can
the Minister give me a real answer why that is not
happening?
Lastly, if the Government really believe in British
democracy, they should trust the people for a final say
on this deal. [Laughter.] It is not a laughing matter.
The noble Lord, Lord Forsyth, thinks it is funny. The
Liberal Democrats do not. We take democracy seriously.
People have not had a chance to see the colour of the
Government’s money when it comes to what Brexit will
mean in detail. They—not just Parliament, but
voters—should get the chance to say whether that Brexit
deal is good enough or whether they prefer to stay with
the European Union.
-
I thank the noble Baronesses, Lady Hayter and Lady
Ludford, for those interesting remarks. I start by
offering my condolences to the noble Baroness, Lady
Hayter. I completely concur with the thrust of what she
said about the need for parliamentary scrutiny. As I
said at the Dispatch Box earlier, and will continue to
say, the Government will provide information and the
opportunity to scrutinise me and other Ministers as we
proceed in the process. I look forward to the debates
that lie ahead.
I am also heartened by the approach taken by the noble
Baroness and her party to the overriding approach set
out in the White Paper. Obviously, it is absolutely our
intention to try to safeguard our economic prosperity
and, as she rightly said, to represent all parts of the
United Kingdom and all parts of the economy. I am
delighted therefore that there is the basis of some
consensus around those points.
The noble Baroness entirely legitimately asked very
basic questions about the protection of consumers and
of the environment. I come back with the simplest of
responses: as I have said previously, the approach
underpinning the great repeal Bill is to ensure that
those EU laws and regulations are enshrined in UK law.
I am sure we will go on to debate those points and
matters of detail in the weeks and months ahead, but
that is absolutely our underlying approach.
On the customs union, as I have said before, we should
start thinking about the customs union in terms of its
component parts. Yes, there is the component part with
regard to the common external tariff and the CDCP, from
which my right honourable friend the Prime Minister has
said we wish to withdraw. However, there are other
aspects of it, as the noble Baroness well knows,
regarding the processes around frictionless trade, such
as authorised economic operators and trusted trader
schemes, and precedents that one could point to on the
borders between Canada and North America to ensure very
free and frictionless trade. Therefore, it is slightly
premature to say that we are somehow going to lose all
these points. We are focused on it and are determined
to ensure that we achieve trade that is as frictionless
as possible.
Both the noble Baronesses, Lady Hayter and Lady
Ludford, raised impact assessments. I am sorry to say
that on this point, at this juncture, the Government
disagree on publishing an impact assessment, for the
simple reason that, as I have said before, it would
undermine our position at the negotiating table. I feel
that we will continue to disagree on this. I strongly
recommend that noble Lords think about the consequences
of providing such an analysis for the negotiations that
are set to come. I note that the other place voted by a
substantial majority not to do anything to undermine
our negotiating position.
As for the publication of the great repeal Bill, I
agree with the noble Baroness that the Bill will have
within it a number of measures to ensure that the
Government have the powers to deliver a smooth and
orderly Brexit. Here, we will have to get the balance
right to ensure that this House and the other place
have the opportunity to scrutinise not just the Bill
but the measures that may flow from it, while ensuring
that our statute book is fully operable on the day we
depart. The noble Lord, , raised this
point in Questions earlier. I am very mindful, as are
my fellow Ministers, of the need to get that balance
right. We will ensure that there is as much time as
possible for proper scrutiny of the White Paper and of
the Bill. We will be mindful of the thoughts of noble
Lords on processes that might be entailed in making
sure that the statute book is fully operable.
On the remarks made by the noble Baroness, Lady
Ludford, once again I am sorry: we just disagree on
this point. There was a referendum. That gave this
Government the mandate. There were numerous times
during the referendum campaign when those on both sides
of the argument made the point that what people who
voted leave would be voting for was to leave the single
market. I have chapter and verse here from Mr , my right
honourable friend Mr , the noble Lords,
Lord and Lord Darling,
and my noble friend Lord Hill, and, on the other side
of the argument, Mr and the Foreign
Secretary. All made it very clear during that campaign
what a vote to leave would mean. It is not quite right
to say, therefore, that the British public did not know
what they were voting for.
The noble Baroness, Lady Ludford, made a number of
salient points and raised questions which I am sure we
will wish to return to in the weeks and months ahead. I
will pick up just a few of them. She mentioned
standards. She is absolutely right: there is an issue
around standards which this Government are very focused
on. We want to ensure that consumers and businesses can
continue to operate and get the protection they need,
and that businesses have the frictionless trade they
enjoy. The standards framework is slightly more complex
than some people may understand, for the standards are
set by European bodies which are not part of the EU.
Our membership therefore is not entirely hinged on our
membership of the EU—I am thinking of CEN and CENELEC
in particular. We are focused on that and on the issues
around conformity assessment that arise from it, and we
will obviously wish to debate them more in due course.
The noble Baroness also asked how we would avoid a
cliff edge. This comes back to the fact that we have
set out what we believe is a clear, rational approach
to the negotiations. We believe that it will be in our
mutual interest to come to an agreement with our
European partners and that we will avoid a cliff edge
as long as that happens. That is what we intend to do.
The noble Baroness mentioned the role of the ECJ. As
she rightly pointed out, the ECJ has a role in a number
of ambits. Given that we are leaving the ECJ, it will
be a matter for negotiation how we can continue to have
a relationship with those bodies and agencies in the
months and years following our exit.
I have nothing further to add on the issue of EU
nationals, but the Government have raised this issue
with other EU leaders and they told us that they did
not wish to start to negotiate on this point until we
had begun formal negotiations and therefore had
triggered Article 50. That is why it is important that
we get to the point of triggering Article 50 by the end
of March.
Finally, on whether there should be a second
referendum, I would simply say this: there are some
people in the Liberal Democrats who do not accept the
outcome, who feel incredibly angry and who feel that
the referendum is reversible and can somehow be undone.
The public have voted. I think it is seriously
disrespectful and politically utterly counterproductive
to say, “Sorry, guys, you got it wrong. We’re going to
try again”.
-
Noble Lords
Shame!
-
I am very sorry they disagree with that, because those
were the words of Sir . It is what the
Liberal Democrats themselves have been saying. I
entirely agree with the guru of Twickenham. I am so
sorry that we disagree on this fundamental point.
1.36 pm
-
(Con)
Is my noble friend aware that none of us has had a
chance to read the White Paper yet? We have an
advantage in this House that at least we have had it
before the Second Reading and can properly discuss it.
Perhaps my noble friend can respond on one point that
concerns me. I was involved when we had the presidency
of the European Union for six months and I know of the
great organisational pressures that are put on
government at such times. I do not know what
encouragement we can give to the other members of the
European Union, but as I look at who the next
presidencies will be after Malta—in the shape of
Estonia, then Bulgaria, Austria and Romania—I do not
think that I am the only Member of your Lordships’
House who will worry about the ability of the
presidency to cope with the great pressures it will
have at that time.
On a lighter note and just to warm things up a bit, is
my noble friend aware that we are approaching the 100th
birthday of Dame Vera Lynn? I do not think that I am
the only person who noted how improbably appropriate
her songs would be for this situation. They include:
“We’ll meet again, don’t know where,
Don’t know when”,
and:
“Wish me luck as you wave me goodbye,
Cheerio, here I go”.
The last is perhaps even more to the point:
“Say that everything will turn up right,
It hurts to say goodbye”.
-
My Lords, we will certainly be meeting again, here,
many times. On the next presidencies, my noble friend
raises a very good point. I think that I am right in
saying—in fact, I am sure—that the Government have
offered support for the presidency of the Estonian
Government if it were required. We are obviously in
conversations with all the nation states that he has
mentioned. We have been supported by them in making
sure that we will continue to have a role in matters of
substance that come to be discussed by the EU until we
leave the EU, thereby fulfilling our role as a full
member until the day we leave.
-
(Lab)
My Lords, in his foreword, the Secretary of State calls
this White Paper a “plan”. Does the Minister agree that
any plan worth the name requires a thorough
cost-benefit analysis? Does he further agree that there
is no such analysis in this White Paper or in the
Statement or in the Prime Minister’s Lancaster House
speech? There is certainly not a cost-benefit analysis
of what operation under WTO rules would mean, what
departure from the single market would mean, or what
withdrawal from the European customs union would mean.
All we have from the Government is the Statement this
morning:
“We continue to analyse the impact of our exit across
the breadth of the UK economy”.
What will they do when they produce those analyses?
Keep them to themselves for fear of telling our
counterparts in negotiation what we are thinking. Is it
not clear that there is no compromise of our
negotiating position in being honest with the British
people about the cost-benefit analysis which is
absolutely vital? In the absence of such a cost-benefit
analysis, this White Paper is not a plan worth the
name; it is a wish list.
-
The noble Lord makes his point with his customary
passion and eloquence. I simply say that I am sorry but
I disagree on that point. The British people were
presented with a clear choice on 23 June. They were
presented with different options. They made a choice.
Furthermore, as your Lordships will know, the House of
Lords European Select Committee earlier in the year
said that parliamentary scrutiny of negotiations,
“will have to strike a balance between, on the one
hand, the desire for transparency, and on the other the
need to avoid undermining the UK’s negotiating
position”.
That is our position and we will stick to it.
-
(Lab)
My Lords, chapter 9 in the White Paper sets out how,
after we leave the EU, the UK will look to
significantly increase its trade with the fastest
growing export markets in the world. Does the Minister
agree that a number of those countries already in the
EU do significantly better with those export markets in
the rest of the world? Why in fact are we waiting until
after we leave the EU to start doing work on preparing
to meet that competition? Why have we only heard from
Dr Fox referring to lazy management in this country and
have still not heard anything in detail from him? We
have had the industrial strategy, which is as woolly a
document as one could ever see—no specifics in it, no
targets and no timetables. It is woolly in the extreme,
like the people who have led the country out of the EU.
When can we expect to get moving on a specific,
timetabled and detailed analysis of how we are going to
compete in the rest of the world? We do not need to
wait until after we have completed the negotiations.
-
There are two separate points there. First, what are we
doing to help UK businesses export, as we speak? There
is an enormous amount of work going on on that front.
The signs are already there that we are beginning to
get great progress in our export markets around the
world. That work continues. As regards the actual point
that I think the noble Lord is getting at about the
negotiations, he will be well aware of the duty of
sincere co-operation, which ensures that we are
therefore not able to start formal negotiations with
non-EU countries until we have left the EU. The noble
Lord may have a sense of impatience about that—I can
sense it—but the reality is that we need to approach
these negotiations in good faith and good will towards
our European partners, and not seek to tear up or
undermine the obligations that we face as a member of
the EU today.
-
(CB)
My Lords, on the question of trade agreements, given
that there is a trend for intra-regional trade, has
there been consideration to starting a conversation
with regional bodies such as the ACP, Mercosur, ASEAN
and the Commonwealth? All the bilaterals engage with
those regional bodies. Just to give an example, I
encourage the Government to look at the Central
American Association Agreement, which is an EU
association agreement which encompasses trade, and to
bring it into Parliament, because it has been stuck for
a very long time without coming before the House.
-
The noble Viscount makes an extremely good point.
Indeed there are a number of organisations like
Mercosur and certainly the GCC which my noble friend
has I am sure
been in contact with. We will continue to have
conversations with those groups as well as individual
member states. I would be happy to discuss that point
with him in more detail.
-
(Con)
My Lords, has my noble friend seen the latest report
from TheCityUK stating that the EU has been a
straitjacket on the City of London, which will have a
once-in-a-lifetime opportunity to now do business with
the whole world? The EU’s own leaked report from the
monetary affairs committee says that the EU has to do a
workable deal with the UK, because it is absolutely
vital for all Governments in the EU to get access to
the City of London. In these circumstances, will my
noble friend tell the remaining remoaners to start
having faith that this is a great country, and we can
be an even better country once we are outside the
straitjacket of the dying and declining EU?
-
My noble friend makes a good point. There is a growing
realisation across many financial services, both in the
City and elsewhere, about the means by which we can
come to some workable arrangement that I hope is to our
mutual benefits. I remind your Lordships of what the
Governor of the Bank of England said a couple of weeks
ago about the risks that Brexit poses:
“there are greater financial stability risks on the
continent in the short term, for the transition, than
there are for the UK”.
As my noble friend says, there is a growing realisation
on these points and of how we might come to some
workable solution in the future.
-
(Lab)
My Lords—
-
(Con)
Sorry, my Lords, it was the Lib Dems’ turn.
-
(LD)
My Lords, is it not somewhat hubristic of the United
Kingdom to offer to assist the Estonian presidency of
the European Union, when we ourselves said that we no
longer wanted to hold the rotating presidency of the
European Union?
The key question that I wanted to ask was about the
great repeal Bill—the great retrenchment Bill. Can the
Government assure us that they are thinking through the
implications of implementing all the regulations that
are in place, bearing in mind that many entail
reciprocity and the jurisdiction of the ECJ? How will
we deal with that? Will the Bill look at that?
-
I am not going to go into further detail on that
specific point now. As I have set out in the Statement,
we will publish a White Paper and the noble Baroness is
absolutely entitled to raise that point. Let us do that
when we have the White Paper in front of us.
-
(PC)
My Lords, I seek clarification of the Minister’s
words—words that were on page 35 of the White Paper and
on page 6 of his Statement—
“This negotiation will not be about bringing two
divergent systems together. It is about finding the
best way for the benefits of the common systems and
frameworks that currently enable UK and EU businesses
to trade with and operate in each other’s markets to
continue when we leave the EU”.
Do those common systems and frameworks not in fact
amount to the regulations of the single market? In
fact, is this not a recognition that the single market
will be our target?
-
Well, it is just a simple recognition that when we
bring the EU acquis into UK law, we will therefore have
exactly the same systems on both sides of the Channel.
Then this House and the other place can in the weeks
and years ahead decide how best to proceed.
-
My Lords, on page 63 of this White Paper, the
Government say that they,
“remain committed to European security”,
and wish still to,
“add value to EU foreign policy and security policy”.
It goes on, of course, to talk about the civilian
missions in Kosovo, Georgia and Ukraine, and says that
those missions increased European stability. Is it the
Government’s intention that, after leaving the European
Union, we will continue to participate in common
security and defence policy—not just good will but
operations which the White Paper itself acknowledges
have been so important?
-
The noble Baroness, again, makes a very good point. It
is clear that a number of the operations under way
confront significant challenges that are likely to
continue way into the future. I am not getting into
detail about how we can best continue those levels of
co-operation but, as I have said before at this
Dispatch Box, doing so will clearly in very many cases
be in our national interest, as it will be in Europe’s
interest.
-
(Con)
My Lords, as a follow-up to the question just asked by
the noble Baroness, I say that I am delighted that we
have the words “new partnership”. Can we please enter
these negotiations as talks with friends and allies?
There is far too much underlying hostility. That must
not prevail. We are to work with our friends and allies
in a different way and capacity; some of us deeply
regret that, but that is gone. Let us make sure that
this is a new and positive chapter. Can my noble friend
assure me that that will be the hallmark of the talks?
-
I completely agree with my noble friend. The whole
spirit behind the White Paper and the Government’s
approach is one of building a new partnership on the
basis that there will be, as I said, issues on which it
is absolutely in our national interest and those of
member states right across Europe to collaborate and
co-operate in the months and years ahead, and to enable
our businesses both in the UK and right across Europe
to continue to trade freely. As I also said, we enter
these negotiations very much in a spirit of good faith
and good will.
-
(Lab)
My Lords, would the Minister acknowledge—
-
I am sorry but it is the turn of the Liberal Democrats.
If we are taking questions from around the House, it is
the Liberal Democrats’ turn.
-
(LD)
My Lords, first, I thank the Government for publishing
the menu after the House of Commons has finished its
dinner. I have a specific question about our withdrawal
from the Euratom treaty, which has provided the
framework for civil nuclear power and the management of
nuclear waste in this country for the last 40 years.
What communication have the Government had with the
industry to assure themselves that the future of
nuclear power on which their energy policy depends is
still secure? What estimates have they made of the cost
of creating a brand new regulatory framework to replace
the one we are leaving behind?
-
All I will say on this point is that obviously we have
had extensive consultation and talks with the nuclear
industry. It remains of key strategic importance to the
country and we have been clear that this decision does
not affect our aim of seeking and maintaining close and
effective arrangements relating to civil nuclear
co-operation, safeguards and safety with Europe and the
rest of the world.
-
My Lords, would the Minister acknowledge that it was a
gross exaggeration for him to claim that our Front
Bench statement represented a consensus about the White
Paper? For example, on the question of the single
market, the Government’s position is that they will not
continue membership of it. The Statement repeated the
catchphrase that they will seek an ambitious and
comprehensive trade agreement with the EU. First, is
that not what we have already? Secondly, are there not
inevitably all sorts of attendant conditions to do with
any trade agreement that are very similar to the
arrangement with the arbitral role of the much-maligned
European Court of Justice at present?
-
My Lords, I should set out that we intend to forge a
new partnership with the EU that has different
hallmarks from the relationship at the moment. To give
just three examples, in our new relationship we will
have the ability to take control of our borders, to be
outside the ECJ and to be able to forge new free trade
agreements with non-EU countries. That is the basis on
which we will proceed.
-
(Con)
My Lords, I welcome the fact that early on in the White
Paper, Chapter 3 is headed “Strengthening the Union”.
Did my noble friend see the statement made earlier this
week by Mr Esteban González Pons, the leader of the
ruling Spanish MEP delegation in the European
Parliament? He said that if Great Britain leaves the
EU, all of Great Britain leaves the EU completely. We
know that Spain has problems in terms of Catalonia and
the Basque country and that they cannot accept any kind
of special solution for Scotland. Will my noble friend
use the opportunity of the Joint Ministerial Committee
to point out to the First Minister of Scotland that she
must accept the result of the referendum, that the
Spanish and others would veto any special deal, and
that she should stop embarrassing Scotland by putting
forward unworkable and confused policies and instead
stick to her day job of trying to run a failing
Administration?
-
My noble friend makes his remarks in his usual
forthright manner. Clearly, the vote on 23 June was a
vote for the whole of the United Kingdom. As the Prime
Minister said, and I repeated today, our approach will
be to negotiate in the interests of the entire United
Kingdom, no part of which has a veto. We are looking at
the proposals that my noble friend referred to and I
hope that we will continue to have constructive
conversations in the JMC.
-
The (CB)
My Lords, one subject that is not among the 12
principles and which I do not think has been covered in
our own debates or reports is international
development. The noble Baroness, Lady Symons, quite
rightly brought up European security and the Minister
said that he could not disclose any details. Could he
undertake to talk to his colleagues about international
development? We have a substantial programme with
Europe and want to know, in advance, what will happen
to it.
-
The noble Earl makes a good point and I am happy to
meet him to discuss it. My only point in response is
that I do not wish to go into the mechanism of how we
might achieve our aim. As I have said many times, where
the national interests of the United Kingdom and the
interests of member states across Europe coincide, we
will obviously proceed with an open mind and will be
willing to co-operate and collaborate where possible.
-
(Lab)
What happens if the Minister’s optimism is somewhat
misplaced? Does he agree that, in the event that he is
wrong, this country must go its own way? In particular,
might he form the view that the country is best served by
being in the EU? I have been a member of the Commission
for a very long time, as has my noble friend. Is it not
important that an alternative view is put forward to the
House by this Minister? I am not sure whether he is
capable of that, but I think he will have a duty to put
it forward eventually.
-
My Lords, I think the noble Lord was suggesting that we
somehow put forward a view to stay within the EU—if I
understand him right. Obviously, that decision was made
by the British public on 23 June.
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