EU: Future Relationship — House of Lords, 2020-02-27
Topic: Mixed Topics
Dianne Hayter (Labour, Centre-left): I welcome the noble Lord, Lord True, to his role. He is the fourth Minister covering Brexit that I have faced. Two retired hurt—one fell out of a helicopter, and I think the other fell out with his political masters—although the last left the field having successfully delivered for his Prime Minister. While I wish the noble Lord well, I obviously hope we will be able to persuade him to listen to views other than just those emanating from No. 10 Somewhat unusually, the lead negotiator—the Minister calls him a Sherpa—is a civil servant, David Frost. He is not a Minister; he is a civil servant, answerable neither to the Commons nor therefore, via a junior, to this House. We therefore welcome the Minister’s confirmation that he will be Mr Frost’s man in this House and report regularly as the negotiations proceed. Perhaps he will speak, or I can do so via him, to the Chief Whip to ensure we can have a proper debate on this document in the near future Today’s Statement is, needless to say, on a crucial and vital issue, but sadly I fear it does not bode well, since it leaves us with a query as to whether the PM really wants a deal, or at least whether he is willing to risk no deal simply to please his friends—whether Trump or the ERG—such that he prioritises a US deal over and above one with the EU. Without an EU deal, we would see tariffs, checks and barriers to trade implemented very fast, by January, in a way that would damage the whole economy. The price of a US deal, even if we got one, would be lower consumer standards, workers’ rights being jeopardised, and environmental concerns being downplayed. What would be the purpose of that The only reason seems to be the avoidance of the ECJ—a court—and, as we just heard, this reassertion of so-called "sovereignty", which was mentioned 11 times in the Statement: a bit of a hang-up there. This is an interdependent world, where the value of currencies, confidence in economies, global interest rates, international tax and wage rates all impact on UK businesses every day. The idea that we live in this independent sovereign world unaffected by anything outside is a figment of the imagination. The best way to confront these global uncertainties is to work closely with our nearest partners and as part of a half-billion market to absorb the ups and downs in world trade and to secure a thriving market for UK goods Any idea that a deal suitable for a faraway country—3,500 miles in the case of Canada—would suit the sort of trade that we have with a continent 12 miles away at its nearest is surely pure fantasy. Do the Government understand that the imports and exports of meat, cheese, milk, nuclear medicines, flowers, fruit and vegetables depend on short distances, fast travel and a virtually identical time zone for that easy flow of trade? Or that our car manufacturers need rapid supplies of parts as well as exports of finished products which depend on easy access to the continent? Easy means quick and cheap. No wonder the Treasury predicted that a Canada-style free trade agreement would shrink the economy by up to 6.4% The Government seem to accept that there will be customs posts, tariffs and checks, and they even occasionally acknowledge that these will be between Northern Ireland and GB. But those cost money to businesses, to consumers, and to the taxpayer. I hope I have read it wrong, but this Statement seems to smack of a negotiating position which is seeking a very distant relationship with the EU, happy to establish barriers for those businesses trying to continue to trade with our largest economic partner. Despite the warm words which the Minister has just repeated, the Government’s commitments on rights, protections and standards, which were written into the political declaration that the Prime Minister signed, now appear to be at risk because the Minister seems to be saying that because some of ours are higher, we can junk all of the commonly agreed minima The political declaration promised that the Government would seek a free trade agreement that was underpinned by provisions that ensured a level playing field—the Prime Minister signed that—and safeguarded workers’ rights, consumer rights and environmental protections. Today’s Statement seems to back-track on both. That is not just bad for the people concerned, be they workers, consumers or those interested in the environment, but it is bad for business, with this new variable and reckless approach to negotiations taking business straight from one set of uncertainties to another. We know what businesses want from our deal with the EU: first, ambitious co-operation on regulation with regard to goods to reduce red tape for exporters; secondly, comprehensive coverage of services to maintain the competitive edge of UK providers—a vital part of our economy and, unfortunately, an element not mentioned in the Statement; and, thirdly meaningful customs facilitation to keep costs and complexities low It is no good the Prime Minister’s spinners attacking the CBI, as they did earlier this month, accusing it and others of neglecting their duty to prepare their members for the realities of a Canada-style free trade deal. Briefing from No. 10, referring to the CBI and others, said that they have a responsibility to their members that they are not fulfilling, and individual businesses might consider whether they are getting the best representation from the umbrella groups that they are funding. That sounds to me like Downing Street trying to encourage the CBI to mute its criticism of the Government’s strategy. That is not an open Government willing to listen to the views of others Without thriving businesses, we have no chance of levelling up or continuing to grow, so I urge the Minister to engage with representatives of consumers, of industry, of farmers and of the service sector so that real hard economic facts, rather than ideology and wishful thinking, will be the lodestar in the negotiations. Can the Minister confirm to the House that the Governments of Wales, Scotland and Northern Ireland as well as of Gibraltar will be fully involved in all stages of the negotiations so that the interests of all parts of the UK are safeguarded?