Scottish Devolution Drew Hendry (Inverness, Nairn, Badenoch and
Strathspey) (SNP) 1. What discussions he has had with the Secretary
of State for Scotland on the potential devolution of further powers
to the Scottish Parliament as a result of the UK leaving the
EU. [909136]...Request free trial
Scottish Devolution
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1. What discussions he has had with the Secretary of
State for Scotland on the potential devolution of
further powers to the Scottish Parliament as a result
of the UK leaving the EU. [909136]
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10. What discussions he has had with the Secretary of
State for Scotland on the potential devolution of
further powers to the Scottish Parliament as a result
of the UK leaving the EU. [909146]
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15. What discussions he has had with the Secretary of
State for Scotland on the potential devolution of
further powers to the Scottish Parliament as a result
of the UK leaving the EU. [909151]
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I will group this question with questions 11 and 16.
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Order. I believe that the Secretary of State seeks to
group it with questions 10 and 15.
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It is questions 11 and 16 on the old listing, Mr
Speaker.
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It is now questions 10 and 15. That will assist the
Secretary of State. We have to keep up with the
development of events.
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When you get to my age, Mr Speaker, it is so difficult.
As the Prime Minister said in Glasgow last week, as we
bring powers and control back to the United Kingdom we
must ensure that they are the right powers, at the
right level, so that the UK can operate effectively in
the interests of all its citizens, including the people
of Scotland. Where powers should best sit will be a
matter for further consultation and discussion across
the United Kingdom.
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I remind the Secretary of State that on 27 November, in
The Sunday Times, the Secretary of State for Scotland
stated:
“Whatever the circumstances, no powers will be
re-reserved to Westminster.”
In Scotland, we know that such vows are not worth the
paper they are printed on. Will the Secretary of State
give the House a guarantee that powers currently
exercised by the European Union will be devolved to the
Scottish Parliament?
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Those are two different questions, if I may say so. It
is unfortunate that the right hon. Member for Gordon
(Alex Salmond) is not present, because he would have
been able to tell his colleagues in the Scottish
National party that for many years I have been a strong
advocate of devolution. Indeed, I was the first
Conservative Member, and probably the only Member
outside the SNP, to call for fiscal autonomy for
Scotland back in the days of the first devolution Bill.
I take this issue very seriously indeed, but there is a
distinction between the current exercise of powers over
matters such as agriculture, fisheries and the
environment by the Scottish Parliament and matters that
are dealt with by the United Kingdom Government in the
EU on behalf of the whole United Kingdom, with heavy
consultation.
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Talking of devolved powers, last month the Prime
Minister ventured north to tell Scotland just how poor
the Scottish NHS is, despite all evidence to the
contrary, including information about public
satisfaction and A&E waiting times. If the
situation is so bad, will the Secretary of State tell
us when we will receive our share of the £350 million a
week so that we can fix it?
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I have generally exercised a self-denying ordinance
about not attacking the domestic policies of the
Scottish Government, because I think that those are
matters for them to worry about, and their day job
should be their main interest. The aim here will be to
secure the best outcome for the whole United Kingdom,
including Scotland, and for Scotland not to lose in any
way.
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Because we are so generous on these Benches, I shall
give the Secretary of State another chance to answer
the question. Notwithstanding the key principle of the
Scotland Act 1998 and what he said that the Prime
Minister had said at the Scottish Tory conference on 3
March, will he please assure us categorically that when
non-reserved powers are repatriated from Brussels, they
will come directly to Scotland?
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I think that the Scottish National party needs a bit
more originality in its questions as well.
The simple fact is that no powers that are currently
exercised by the Scottish Government will be removed
from the Scottish Government. As for other powers
coming back from the EU, we will consider—in
conjunction with representatives of the Scottish
Government, the Welsh Government and the Northern
Ireland Executive, when they are back in place—what is
best for the United Kingdom and the constituent nations
thereof. It is very important for us to have as much
devolution as possible, but it is also very important
for us not to damage the United Kingdom single market,
which is four times as valuable to the Scots as the EU
single market.
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I wonder whether, during the discussions and
negotiations, my right hon. Friend raises an issue that
the Scottish National party is constantly putting on
the table, namely a special arrangement for being in
the single market. Recently, the Partido Popular in
Spain made it absolutely clear—I wonder whether my
right hon. Friend has translated this for the Scottish
National party and its leader in particular—that its
policy, and that of the other parties in Spain, was
that there would be no special arrangement for the SNP,
and that, should the SNP seek to leave the United
Kingdom and rejoin the European Union, it would be
vetoed by Spain on both counts.
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My right hon. Friend has made his point as well as
ever. I believe that this issue will arise again in a
later question on the Order Paper. The simple truth is
that it is not solely a technical matter within the
United Kingdom; it is also something that we must
deliver diplomatically.
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Is my right hon. Friend as puzzled as I am that the
Scottish nationalists appear to oppose any devolution
of powers from Europe back to the United Kingdom and
Scotland? It seems that they would rather be governed
entirely from Brussels than see some of those powers
returned to this place, where they have a great
influence, and others returned to Holyrood, where,
temporarily, they have a near majority.
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My right hon. Friend points exactly at the incredible
inconsistency at the heart of the Scottish National
party: it believes that it is fine to be ruled from
Brussels, but not to be ruled from anywhere else.
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Given the huge identity of mutual interests that
Scotland shares with the rest of the United Kingdom,
will not a good deal for the United Kingdom shower all
sorts of benefits that can be devolved on Scotland?
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My right hon. Friend highlights an important point:
what matters in this negotiation is the outcome, not
the mechanism. The Scottish Government have laid a
great deal of emphasis on their own preferred policy of
separate membership of the single market, but the
simple truth is that what we want is a good outcome in
terms of access to the single market for everybody in
the United Kingdom, and that will achieve exactly the
same aim in a different way.
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In terms of powers for the Scottish Parliament, the
people of Scotland were promised a week before the vote
that Scotland would decide its own immigration policy
in the event of Brexit. Next week we have a crucial
vote on EU nationals—we have another opportunity. If
this Government will not use their powers to give EU
nationals the certainty they require, will they give
those powers to the Scottish Parliament?
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Again, we are talking about aims, ends and means. On
the Joint Ministerial Committee, the Scottish
Government have raised the very important issue of the
immigration needs of Scotland. I have relayed their
questions to the Home Secretary and I expect that when
we come to a UK immigration policy, it will reflect the
needs of every part of the United Kingdom.
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I look forward to having the Secretary of State’s
support for his leave campaign’s promises on
immigration power being given to Scotland. As part of
that and on the issue of EU nationals, will he consider
the 2012 European Court of Justice judgment in the case
of Zambrano v. Office national de l’emploi, which gave
EU nationals with primary caring responsibilities the
right to reside in the member state of which their
dependent child or adult is a national?
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I am not familiar with the individual case the hon.
Gentleman raises. I will look at it in detail and come
back to him, as is my normal approach. I say this,
however: the European Court of Justice will not rule
over the United Kingdom after the date of Brexit. That
does not mean that we will not have a very humane,
sensible and straightforward policy with respect to
things such as family relationships, which the hon.
Gentleman talks about.
Transitional Arrangements
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2. What recent discussions he has had with Cabinet
colleagues on transitional arrangements for the UK
leaving the EU. [909137]
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17. What recent discussions he has had with Cabinet
colleagues on transitional arrangements for the UK
leaving the EU. [909153]
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We will want to have reached agreement on our future
partnership within two years of the article 50 process.
Article 50 is clear—we did not write it—that it should
take two years to negotiate the withdrawal, and any
deal must take into account the new relationship. We
recognise that a cliff edge for business or a threat to
stability would be in neither side’s interest. A phased
process of implementation in which both Britain and the
EU institutions and member states prepare for the new
relationship is likely to be in our mutual interest,
and that will be to everyone’s benefit if that is what
we agree.
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The tech sector is clear that the UK needs a watertight
legal agreement on international data flows from the
day we leave the EU; transitional arrangements just
will not do. The best route will be an adequacy
agreement, as other means are currently under legal
challenge. As it took seven years to negotiate an
adequacy agreement with Bermuda, what is the Secretary
of State doing, with colleagues, to ensure that we
avoid a cliff edge on data flows?
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The hon. Gentleman raises a very important point,
because that is central not just to IT and database
industries, but to every industry now. The difference
with Bermuda is that it was not at a point of identity
of data standards when it started its negotiations. We
will be at a point of identity at the point of
departure, and we will undoubtedly have to agree some
regime whereby we maintain equivalence—not identity,
but equivalence—thereafter. It is unlikely that we will
need transitional arrangements on that; it is much more
likely that we will need an ongoing relationship on it.
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Blaenau Gwent has relied on EU structural funding in
recent years and, though we are leaving the EU, the
need for infrastructure investment remains really high.
Infrastructure has a long lead-in, so will the
Secretary of State tell me what transitional
arrangements will be in place to ensure that Blaenau
Gwent gets the best deal to boost its economy after
2020?
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The Treasury made it clear, very rapidly at the
beginning of this process, that it would underwrite
agreements made with the European Union that carried on
beyond the point of Brexit as long as they met
value-for-money requirements. The responsibility for
making that judgment in the case of the hon.
Gentleman’s constituency will lie with the Welsh
Government. So I do not see that there is a risk there.
Beyond 2020, the EU will have its own budget
arrangements anyway, and we will be in the same
position.
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Will my right hon. Friend guarantee that the very last
thing he is going to do is to accept any blandishments
from those on the other side of the House, and that he
is going to start discussing in detail—in this House or
elsewhere—the transitional arrangements with the EU?
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Of course my right hon. Friend is right. This is not
about some arrangement to extend the discussions or the
negotiations; it is about practical implementation
issues that may well turn out to be in the interests of
both sides, and it is in those circumstances that we
would achieve them.
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Does my right hon. Friend agree that it will be
important to encourage co-operation between the
regulators during any transition period for financial
services, to ensure that we have an orderly transition
to the new arrangements with Europe?
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My right hon. Friend is absolutely right. One of the
ongoing streams of work in Whitehall involves arranging
to talk to the regulators, and some of those
discussions have already happened. The Governor of the
Bank of England has commented on the need to maintain
stability after Brexit, and that will be an important
part of our negotiations.
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Because of the Government’s decision to leave the
single market, lots of agreements will cease to have
effect the day after we leave. One of those is the
agreement that allows British airlines to fly to any
airport in the European Union. Given that airlines sell
tickets up to 11 months in advance, what assurance can
the Secretary of State give to passengers that the
tickets they buy before we leave the European Union
will still be valid after we leave?
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The right hon. Gentleman is partly right. Many of the
arrangements for European routes are partly dependent
on the EU, but there are also bilateral and other
arrangements. He is exactly right to suggest that we
will be setting out to ensure that those forward
contracts stand.
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Further to what the Chair of the Select Committee, the
right hon. Member for Leeds Central (Hilary Benn), has
just said, will the Secretary of State tell us whether
the transitional arrangements will be discussed right
from the beginning of the negotiations? Transitional
arrangements cannot be left until the last moment; they
need to be hard-wired into negotiations from the very
beginning.
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They will undoubtedly be part of the early discussions,
but the need for transitional arrangements will depend
on what the final arrangements will be. If we do not
know where we are going to end up, we cannot have a
transitional arrangement. Also, our overarching offer
of a comprehensive free trade arrangement will remove
the need for transition in some areas, although not in
the highly regulated ones. The Chairman of the Select
Committee was exactly right to suggest that aviation is
one of those areas, and it is not the only one. The
original questioner, the hon. Member for Cambridge
(Daniel Zeichner), mentioned data, which is another
area in which regulation will matter. In many cases,
however, such arrangements will not be necessary.
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Will the Secretary of State tell the House what he sees
as the main differences between agreed interim
arrangements as part of a phased process of
implementing our future relationship with the EU, as
sought by the Government, and a negotiated transitional
deal?
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The reason that we have specified this in detail was
that the term “transitional arrangements” meant several
different things to different people. For example, some
thought that it would be good to have a departure deal
and then to spend years in a transitional arrangement
carrying on the negotiations. We have specifically
differentiated that from what we are talking about;
that is not what we want. We want the decisions to be
concluded within two years, but implementation might
take longer in a whole series of areas, including
customs and financial services regulations.
Common Travel Area: Republic of Ireland
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3. What steps he is taking to maintain the Common
Travel Area with the Republic of Ireland after the UK
leaves the EU. [909138]
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6. What steps he is taking to maintain the Common
Travel Area with the Republic of Ireland after the UK
leaves the EU. [909142]
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18. What steps he is taking to maintain the Common
Travel Area with the Republic of Ireland after the UK
leaves the EU. [909154]
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One of the core principles guiding our approach to the
exit negotiations is to protect our historic ties with
Ireland and maintain the common travel area. There is a
strong joint commitment from the Irish Government, the
Northern Ireland Executive, and the UK Government to
deliver a practical solution that allows for the
maintenance of the common travel area. I welcome
President Juncker’s recent statement that the EU does
not want hard borders between Northern Ireland and the
Republic.
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I thank the Minister for that answer. Does he believe
that the EU recognises the serious impact that trying
to force Ireland to reimpose a hard border would have
not only on the tens of thousands of people who cross
the border every day for work or healthcare or to
study, but on the peace process, in which the EU has
been heavily involved?
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My hon. Friend is absolutely right, but we have seen
some welcome comments from the other side in the
negotiations. Following a recent meeting with the
Taoiseach, President Juncker said:
“During the Brexit negotiations, the EU and Ireland
must look to minimise the impact”.
has also said
that the EU must do its utmost to uphold the success of
the Good Friday agreement. We remain fully committed to
preserving and maintaining the Belfast agreement and
its successors, and we will continue to work hard on
that with our allies.
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I welcome the strong commitment to the CTA in the White
Paper. Shrewsbury has benefited for many generations
from Irish citizens coming to work in our community.
Will the Minister give them an assurance that their
rights will be protected in UK law, much of which
predates our membership of the EU?
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Absolutely. I assure my hon. Friend that we remain
committed to preserving the rights of Irish citizens
within the UK. Irish citizens have had special status
within the UK since well before the establishment of
the EU, and that is rooted in the Ireland Act 1949 and
reflected in British Nationality Acts. That status
provides Irish citizens in the UK with additional
rights beyond those associated with common membership
of the EU. The family ties and bonds of affection that
unite our two countries mean that there will be always
be a special relationship between us.
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The Crown dependency of the Isle of Man has strong
links with Northern Ireland, the Republic, and the rest
of the United Kingdom, and when the Justice Committee
met representatives of its Government, their No. 1 ask
was to ensure that it remains a part of the common
travel area between the three. Will the Minister
reassure them and us on that point?
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Absolutely. We greatly value the work of my hon. Friend
and his Committee on such issues and look forward to
reading the report of his inquiry into the implications
of Brexit for the Crown dependencies. The Crown
dependencies, including the Isle of Man, have been part
of the common travel area for nearly 100 years, and we
are committed to preserving that arrangement. We set
out in the White Paper that we will work with the Crown
dependencies, as well as with Ireland, on improving the
CTA.
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Do the Government appreciate that the Good Friday
agreement was not a single event, signed, sealed and
put on a shelf 20 years ago, but a process of
normalisation of relations and of free movement of
goods, people, and so on? If the Government do realise
that, will they ensure that they respond to the real
fears in Ireland that Brexit represents a turning back
of the clock on the precious new normality that has
developed over the last 20 years?
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The right hon. Gentleman is right about the importance
of such issues and that the Good Friday agreement was
certainly not just a moment in time—we talk about the
Belfast agreement and its successors. We recognise the
need to work continually on such issues and to work on
them jointly with our friends and allies in the
Republic and with the Northern Ireland Executive.
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If the common travel area can continue to operate
between the UK and the Republic of Ireland, which is a
member of the EU and has its own rules on immigration,
why could it not operate between Scotland and the rest
of the UK if Scotland stays in the single market when
the rest of the UK leaves?
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The common travel area is of benefit to the whole UK,
including Scotland. The people of Scotland voted
decisively less than two years ago to remain part of
the UK, and we should all work together to make this
process a success for the United Kingdom.
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It is reassuring to hear the Minister’s words on this
issue. He will know the level of concern across this
House and out there in the country. If he has not read
it, I recommend to him the recent House of Lords
report, page 63 in particular, which states that we
cannot assume that this matter will become part of the
article 50 negotiations. If that does not happen, he
must act quickly to reassure the people of Ireland and
the UK and ensure that it is done either as part of the
article 50 negotiations, or that it happens in time,
because certainty is needed more than anything in
Northern Ireland.
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The hon. Lady is right that we need to do everything we
can to provide certainty, and we will take on board the
suggestions of the House of Lords report. However, I
welcome the statements we have seen from the Commission
showing that it is taking a strong interest in this
subject.
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When the Brexit Select Committee visited Dublin
recently, we were told that a United Kingdom default to
World Trade Organisation rules would be catastrophic
for the island of Ireland, with the re-imposition of a
border. Can the Minister reassure the House that he
will continue to resist siren calls to move towards WTO
rules, if for no other reason than the effect on
Ireland?
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The Government have set out a very clear strategy for
establishing a future partnership with the European
Union, which is what we should focus on. That
partnership includes the concept of frictionless
movement across the border.
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Will the Minister further outline how the election of
the Northern Ireland Assembly has affected firming up
the common travel area? How does he intend to take that
forward in the interim while waiting for the Assembly
to reconvene? Further, what role does he envisage the
reconvened Assembly having in that process?
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We are fully committed to ensuring that as we establish
our negotiating position, the unique interests of
Northern Ireland are protected and advanced. The UK
Government have a clear role in providing political
stability in Northern Ireland, and the Secretary of
State for Northern Ireland is doing everything he can
to secure the resumption of devolved government. It is
important that everyone engages constructively to reach
a positive conclusion as quickly as possible. We are
not contemplating anything other than the return of
devolved government.
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Would it not help enormously if the UK Government made
it clear that they want to make both the common travel
area and the Good Friday agreement, and all its
strands, explicitly named features of the framework for
future relations between the UK and the EU?
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Yes, and I believe that we have and will continue to do
so.
Farming Sector
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4. What discussions his Department has had with
representatives of the farming sector on the
implications for that sector of the UK leaving the
EU. [909139]
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5. What discussions his Department has had with
representatives of the farming sector on the
implications for that sector of the UK leaving the
EU. [909141]
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We are listening and speaking to as many farming
organisations and institutions as possible as we
develop our negotiating position. I have met a range of
representatives of the agricultural sector, including
all the UK farming unions, and have attended the
stakeholder roundtables of the Department for
Environment, Food and Rural Affairs, one of which
focused on farming and horticulture.
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Louth and Horncastle boasts highly productive farms
that produce excellent food. Will my right hon. Friend
reassure our farmers that encouraging British food
production and maintaining high quality standards will
be uppermost in his mind during the exit process?
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The British farming industry is noted throughout the
world for the quality of its produce. Outside the
European Union, we have an unprecedented opportunity to
redesign our policies to make them work for us and to
ensure that our agriculture industry is competitive,
productive and profitable, and also that our
environment continues to improve.
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Farmers in Eddisbury apply the highest standards of
welfare to their livestock and the produce deriving
from that livestock. What safeguards will be put in
place to ensure that produce that does not meet those
high standards does not affect the competitiveness of
our farmers?
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Again, my hon. Friend makes an important point because
animal welfare and traceability are important elements
of British agricultural production. We are committed to
high animal welfare standards and will continue to push
for those standards to be maintained in international
trade arrangements.
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British farmers face a triple threat from the vote to
leave the European Union: the loss of the common
agricultural policy subsidy; cheap imports from
countries with lower animal welfare and traceability
standards; and potential tariffs on exports to the
single market. What is the Minister doing in particular
to mitigate that third threat, as we could see tariffs
of up to 40% on lamb?
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The hon. Lady makes very important points, but this
Government have already demonstrated their commitment
to supporting the agriculture industry by supporting
common agricultural policy pillar 1 until 2020 and
giving support for pillar 2. On tariffs, as she will
know, this Government aim to achieve the best possible
free trade agreement with the continuing European Union
and to ensure that whatever customs arrangements are
put in place are frictionless and for the benefit of
both Britain and the EU.
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16. What discussions has the Minister had with the
Government of the Republic of Ireland on the free
movement of goods? That will be a particularly
important issue for the agricultural sector after the
UK exits the EU, because many farms in Northern Ireland
straddle the border and much of the produce of those
farms transits the border a number of times—for
example, milk sometimes crosses it five
times. [909152]
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The hon. Gentleman raises an extremely important point
that is at the forefront of the Government’s mind—in
fact, the Prime Minister has discussed this very issue
with the Taoiseach. Indeed, all the Ministers in the
DEXEU team have had similar discussions, and I have had
very recent discussions with representatives of the
Irish Government too.
Single Market and Customs Union: Manufacturing Sector
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7. What plans he has to retain the benefits of
membership of the single market and customs union for
the manufacturing sector after the UK has left the
EU. [909143]
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9. What plans he has to retain the benefits of
membership of the single market and customs union for
the manufacturing sector after the UK has left the
EU. [909145]
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13. What plans he has to retain the benefits of
membership of the single market and customs union for
the manufacturing sector after the UK has left the
EU. [909149]
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The UK manufacturing sector is world leading, and we
are determined to secure the best deal for it which
enables it to go from strength to strength. We are
aiming to agree a bold and ambitious free trade
agreement with the EU, including zero tariffs, that is
more ambitious than any other trade deal agreed with
the EU to date.
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In North Tyneside, Smulders, a Belgian company, has
filled a void in the manufacturing market left when
this Government failed to back OGN. The company hopes
to create up to 400 new jobs and expand even further.
What guarantees can the Minister give that will allow
it the same benefits it currently gets with access to
the single market and customs union after Brexit?
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I had a discussion just this week with the Flanders
chamber of commerce, and it recognised the important
issue of bilateral trade between Belgium and the UK. I
am pleased to say that it fully realised the need for
frictionless agreements once we leave the EU, and of
course this Government are committed to that.
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The Prime Minister has said that Britain will not
remain a full member of the customs union, but this
morning the Chancellor said it is
“clear that we can’t stay in the customs union”.
Which of them should we believe?
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It is clear that if we are to seek free trade
agreements around the world, we will not be able to
remain in the customs union as it currently stands.
Having said that, we seek arrangements with our EU
partners that will enable us to construct customs
arrangements that are as frictionless as possible, for
the benefit of both the EU and the UK.
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The post-Brexit fall in the pound has led to a boost in
manufacturing exports, with 45% of north-east
manufacturers expecting orders to rise over the coming
year, but it has also led to an increase in import
costs. These costs will only increase if customs checks
are required at borders. What is the Secretary of State
planning to do for north-east manufacturers to make
sure that costs at borders are not being increased for
products they are making?
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Of course, north-east manufacturing is at the forefront
of the Government’s mind; the hon. Gentleman will know
that with Nissan we arranged a state of affairs that
will allow it to continue to manufacture in the
north-east. He is right to say that we do not want to
see customs arrangements that impede trade with the EU,
and we are looking to agree arrangements, for our
mutual benefit, that are as frictionless as possible.
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But is it not the case that when the UK leaves the EU
we will be its largest export market? Does the Minister
not agree with my favourite politician at the moment,
Wolfgang Schäuble, Germany’s Finance Minister, who says
that if the Germans or the EU were to cause any damage
to the UK, it would be increased tenfold for the EU?
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I am sure the Finance Minister in question will be
uncontrollably excited to discover that the hon.
Gentleman is such a staunch fan.
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My hon. Friend makes an extremely good point: the UK
market will be the biggest export market for the
continuing European Union after we leave. I am glad to
say that that is recognised not only by Herr Schäuble
but by the Belgian chamber of commerce, with which I
spoke earlier this week.
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Does the excellent Minister agree that it is much more
in the EU’s interest for it to do a deal with us than
it is in ours, because it has a £60 billion trade
surplus with us?
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I think it is very much in our mutual interests, and I
am sure that once the negotiations begin we will move
towards a sensible and satisfactory mutual conclusion.
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Does the Minister agree that, although we hope for the
best, the chaotic patchwork of EU institutions and
election cycles may mean that a deal is not done in two
years? If that is the case, will he consider the case
for investing in the roads to the channel ports and,
indeed, in frictionless and modern borders, to ensure
that we have a seamless flow of trade in future?
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I agree with my hon. Friend about frictionless
agreements. We have a huge advantage in that Britain
is, of course, currently a member of the European
Union, so our standards and regulations are in complete
alignment. I was heartened to see that , the chief
negotiator for the European Union, has recognised that
a deal is doable in two years.
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22. The food and drink industry is a growing sector in
West Aberdeenshire and Kincardine. What plans does the
Minister have to retain the benefits of membership of
the single market and customs union for the food and
drink sector after the UK has left the
EU? [909159]
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Although we will not continue to be a member of the
single market, as I indicated previously we are looking
to achieve a very good free trade agreement with the
continuing European Union, which would be very much to
the mutual benefit of the UK and the European Union.
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As my right hon. Friend considers the customs union,
may I urge him to look at the experience of close
trading partners around the world? The US and Canada
trade half a trillion dollars of goods annually, Norway
does 70% of its trade with the EU, and China buys 30%
of Australia’s exports; none of them has seen fit to
form customs unions with each other.
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My hon. Friend makes an excellent point. It is not
necessary to be part of a customs union, but we seek
frictionless customs arrangements for the benefit of
the EU and the UK.
-
23. In a document leaked to The Times, the oil and gas
industry was shamefully listed as a low priority for
the UK Government in their negotiations with the EU.
Given the Minister’s earlier answer, will he confirm
that he has no plans to retain membership of the
customs union and the single market for the oil and gas
industry? [909160]
-
The fact that the oil and gas industry is a high
priority for the Government was shown by the
Chancellor’s announcement yesterday. Frankly, rather
than talking bleakly about the future of the industry,
the hon. Gentleman should urge his colleagues in the
Scottish Government to work strongly with the United
Kingdom Government to ensure that arrangements can be
made that are satisfactory for the industry.
-
One of the advantages of our leaving the European Union
is that we will be in a position to design our own
package of trade defence instruments, which I would
think Opposition Members would welcome. Will my right
hon. Friend update the House on the ongoing
cross-Government work on that?
-
Clearly, any arrangements we strike will have to be
WTO-compliant, but my hon. Friend is entirely right.
British industry has recently experienced many
difficulties, not least in the steel industry, in which
he has a particular interest. He will know about the
support the Government have given to that industry.
-
This week, a report by the American Chamber of Commerce
to the European Union concluded that
“America’s significant commercial and financial
presence in the UK has been premised in large part on
UK membership in the European Union—the largest,
wealthiest and most important foreign market in the
world to U.S. companies.”
Do the Secretary of State and the Minister recognise
the importance of our relationship with the single
market to those non-EU countries with which the
Government are keen to build trade and investment?
-
The importance of the United Kingdom to the United
States was reflected very strongly in the Prime
Minister’s recent meeting with the new President, in
which he showed great enthusiasm for free trade
arrangements between the United States and the UK.
-
Well, the significance of that and the “America First”
policy is yet to be demonstrated.
On 24 January, the Secretary of State told the House
that he is seeking
“a comprehensive free trade agreement and a
comprehensive customs agreement that will deliver the
exact same benefits as we have”.—[Official
Report, 24 January 2017; Vol. 620, c. 169.]
Will the Minister confirm that that is still the
Government’s aim?
-
The Government’s aim is to seek a bold and ambitious
free trade agreement with the continuing European Union
that will be to the benefit of both the United Kingdom
and the European Union.
-
Thanks to the new opportunities that will open up for
the UK after we leave the EU, the accountancy firm
PricewaterhouseCoopers has said that the UK will have
the fastest growing economy in the G7 over the next 30
years. Does my right hon. Friend agree that that
demonstrates that manufacturing has nothing to fear
from our leaving the EU?
-
My hon. Friend is entirely right to point out that the
naysayers and doom-mongers who said that the British
economy would crash after we decided to leave the
European Union have been proven wrong.
Human Rights
-
8. What steps he is taking to ensure that maintaining
human rights protections is included in negotiations on
the UK leaving the EU. [909144]
-
The UK has a long-standing tradition of ensuring that
our rights and traditional liberties are protected
domestically and of fulfilling our international human
rights obligations. The decision to leave the European
Union does not change any of that. That is the approach
we will take as we enter negotiations, and I can
confirm that the Government have no plans to withdraw
from the European convention on human rights.
-
Given that answer, will the Secretary of State set out
a full and detailed list of all fundamental rights
currently guaranteed under EU law and what approach the
Government intend to take towards them?
-
We will be putting the great repeal Bill in front of
the House at some point in the near future. That will
carry into British law the existing law of the European
Union and the case law that goes with it. But British
human rights have not depended on the European Union;
they have been intrinsic to our history and our
tradition, and we—I most of all—will continue to defend
them.
-
I very much welcome what the Secretary of State said
about the Council of Europe and the European Court of
Human Rights. With that in mind, will he consider
giving his support to a fourth summit of the Council of
Europe to look at the way forward for the Council and
how human rights could be strengthened through the
European Court of Human Rights?
-
The right hon. Lady knows about my ongoing passion for
human rights. That is the first I have heard of a
proposal for a fourth summit, but I will certainly look
at it. She can guess what my sentiments will be.
-
Is it not a human right to have some certainty about
the future? Is the Secretary of State not aware of how
many talented, hard-working and entrepreneurial people
who have come to this country have no idea whether they
can stay here? The Government are now demanding that to
be able to stay, people must have full health insurance
for life.
-
-
At least I’ve got my own hair!
-
I am not sure whether certainty about the future is a
human right—
-
Order. I am not sure whether we should have all these
hairist remarks—they are rather unseemly. The hon.
Member for Huddersfield (Mr Sheerman) is a
distinguished senior statesman in the House.
-
As I was saying, Mr Speaker, I am not sure whether
certainty about the future is a human right, and I am
certainly not sure whether the House would necessarily
extend it to the hon. Gentleman. The simple truth is
that we have a large group of people—some of them
European citizens and some of them British citizens
abroad—to whom we want to give certainty across the
board about their right to remain, their right to
healthcare, their right to welfare, and so on. I have
now seen, one way or another, representatives of around
half the member states, and it is plain to me that they
all treat this issue seriously and want to see it dealt
with early in the negotiations. That is the
Government’s policy—to ensure certainty for everybody.
Article 50: “Scotland's Place in Europe”
-
11. Whether the Government plan to refer to the
recommendations of “Scotland’s Place in Europe”,
published by the Scottish Government on 20 December
2016, in their notification to the European Council of
the invocation of article 50. [909147]
-
14. If the Government will respond to “Scotland’s Place
in Europe”, published by the Scottish Government on 20
December 2016, before invoking article
50. [909150]
-
I am going to get the hang of this, Mr Speaker. I ask
to group questions 11 and 14. In a few years, I will
get used to this place—then I will retire.
-
-
I said retire, not resign.
We are working closely with the Scottish Government to
ensure the best deal for Scotland and the rest of the
UK as we leave the European Union. We share many
objectives, including having an open and
outward-looking country, ensuring access to labour,
collaborating on science and research, protecting
workers’ rights, having a smooth and orderly exit
process, and guaranteeing the rights of EU nationals in
the UK and of UK nationals in the European Union. We
should also agree that there should be no new barriers
to living and doing business within our own Union. They
should not be created.
-
Who knows what the Scottish people will think of such
an imprecise answer to a specific question? Let me try
something else that may help the Secretary of State.
How many trade negotiators have been recruited to deal
with matters such as the very specific and unique needs
of some sectors of the Scottish economy?
-
Many trade negotiators have been recruited,
particularly by the Department for International Trade.
I recommend that the hon. Gentleman raises the question
with that Department, because it has been very busy at
that in recent months. The simple truth is that the
British Government share the hon. Gentleman’s aims for
his constituents and for the people of Scotland—namely,
we want the best possible deal, which will be best for
the Scottish economy, for Scottish business and, most
of all, for Scottish people.
-
Following on from the question of my hon. Friend the
Member for Kirkcaldy and Cowdenbeath (Roger Mullin), I
am glad to inform the Secretary of State and, indeed,
the House that an STV poll shows that support for
independence has gone up to 50:50. Given the Secretary
of State’s intransigence and his Government’s
determination for a hard right-wing Tory Brexit, which
way does he think that poll will tip as he continues in
his intransigence?
-
First, I do not recognise the phrase “hard Brexit” or,
for that matter, “right-wing Tory Brexit”. Secondly, I
am not a great believer in polls when it comes to
referendums; they do not exactly work very well. If the
hon. Lady wants to go with polls, perhaps she should go
with the poll of the Scottish people, who say they do
not want another referendum.
-
I respect the desire of the Scottish Government to
contribute to the Brexit process, and that of the
Welsh, Northern Irish and some English regions. May I
urge the Government to reflect on all representations
made and proceed with a policy that works for the whole
United Kingdom?
-
My hon. Friend is exactly right, and that is the
intention of the Government, which is why we are going
for a comprehensive, overarching free trade agreement
that will deliver extremely beneficial results for
Britain and—I stress this point—for the European Union
as well.
Devolved Administrations
-
12. How he plans to involve the devolved
Administrations in negotiations on the UK leaving the
EU. [909148]
-
The Prime Minister, supported by my Department, will
agree the format of negotiations with our counterparts
once negotiations have begun. In the meantime, she will
be informed by the Joint Ministerial Committee (EU
Negotiations), which will ensure that we negotiate the
best possible future for the United Kingdom,
representing all its constituent parts.
-
Regarding Scotland’s role in the article 50 process,
Supreme Court president, David Neuberger, said on 24
January that it was a political decision whether
formally to involve the devolved Administrations in the
process of leaving the EU. Will the Minister tell us
what role the devolved Parliaments will have in the
passing of the great repeal Bill?
-
Of course, we have formally involved the devolved
Administrations in our preparations through the JMC
process, and we continue to engage in that process.
With regard to the great repeal Bill, a White Paper
will be published and the devolved Administrations will
have their opportunities to respond to that, as will
hon. Members across the House.
-
When the Government devolve powers that have been
repatriated, will they consider allocating extra
resources to ensure that those policies are implemented
properly?
-
As we have said, we have not made the final decisions
about repatriation. That is something we will want to
discuss with the devolved Administrations, as I think
the Welsh Government have suggested. The Treasury has
already made important guarantees that cover devolved
Administrations as well as Government Departments.
-
In devising plans for Brexit and involving the devolved
Administrations, Ministers will have drawn on the
advice of a large number of UK and foreign consultancy
firms such as Accenture. The Press Association and
others want to know how much this has cost. Will the
Minister confirm the spend to date on the likes of
Accenture, PwC, City legal firms and others in
supporting the Government on Brexit?
-
I am sure all that type of information will be
disclosed in the usual way when the Department reports
its accounts.
EU: UK’s Financial Contribution
-
19. What the UK’s total net financial contribution has
been to the EU since the UK joined the European
Economic Community. [909155]
-
Neither the United Kingdom, nor the European Union,
publishes an aggregate audited figure representing the
total net financial contribution since the UK joined
the EEC, but details of annual UK public sector
contributions to the EU are published in a document
entitled “European Union Finances”, the latest edition
of which was published in February in 2016.
-
A one-word answer with a figure would have been more
helpful than the answer the Minister has given me. I
suspect that the answer is that a massive amount of
money is being handed over by British taxpayers to the
European Union. As in any good divorce, that will
entitle us to a huge share of the EU’s assets or to
massive financial compensation if we do not get that.
-
My hon. Friend is right—it is rather a lot; but the
issue is to what extent the United Kingdom is liable
for payment of anything, and if so, how much. The point
is this: the United Kingdom has always adhered to its
international treaty obligations, and it will continue
to do so. It will adhere to those obligations, but,
similarly, it will insist on the rights it has pursuant
to those treaties, and that is the basis on which it
will approach these negotiations.
Non-UK EU Nationals: Residency Rights
-
20. If he will protect the rights of non-UK EU
nationals resident in the UK as part of his
Department’s plans for exiting the
EU. [909157]
-
As the Secretary of State has reiterated, and as we
have repeatedly made clear, we want to secure the
status of EU nationals in the UK, and UK nationals
living in other member states, as early as we can. We
know from my right hon. Friend’s visits around the EU
that many member states agree with us on this, but we
can protect the status of UK nationals in the EU only
through formal negotiations.
-
I have had constituents come into my surgeries in tears
because of the uncertainty about their future. They
cannot apply for new jobs, they are worried that they
do not know what their status will be if they apply for
a university course, and they cannot apply for
mortgages. These are not itinerant migrant
workers—these are people who have made their homes and
lives in Bristol—and they need assurances now from the
Government.
-
We all recognise the hon. Lady’s concerns, and we all
want to provide those assurances, but as was said by
many in the debate in the other place, the best way of
providing those assurances is to get on with the
negotiation so that we can secure them.
University Funding
-
21. What discussions he has had with Cabinet colleagues
on the priority for future funding for UK universities
during negotiations on the UK leaving the
EU. [909158]
-
I congratulate my hon. Friend, who is always a champion
for the universities and students in his patch. The UK
is already a leading destination for science and
innovation, with some of the world’s best universities,
three of which are in the world’s top 10. We intend to
secure the best possible outcome for UK research and
innovation as we exit the European Union.
-
I thank the Minister for his response. International
collaboration and access to European research funding
drive the efficiency, excellence and impact of UK
research, and our country’s university sector is
renowned for its high levels of international and
European collaboration. Will he confirm that continued
research collaboration will be a priority for the
Government, particularly in relation to the Erasmus+
scheme, as we negotiate our exit from the European
Union?
-
The Prime Minister has been clear that Britain will
remain truly global—a best friend and neighbour to our
European partners—but reach beyond the borders of
Europe as well. We recognise the value of international
exchange and collaboration in education and training as
part of our vision for the UK to be a truly global
nation.
Topical Questions
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