European Union (Notification of Withdrawal) Bill

Debate between Lord Tyrie and Gerald Howarth

Tuesday 31st January 2017 Commons Chamber

[Mr Tyrie]

TheCityUK did say that it was the worst possible thing for the financial sector, and it has clearly decided that the best thing to do is to look for the opportunities rather than spend time moaning about where we are. On the basis of what I read on my iPad on my way to the debate, it has focused on the point about the customs union.

The Treasury Committee has heard convincing evidence that both parties in the negotiations—both the EU and ourselves—have a lot to gain from maintaining a high degree of access to the single market, and a lot to lose from the absence of such access. We should bear it in mind that the EU, like the UK, benefits from our integration with European supply chains in the automotive and aerospace sectors, for example, and we all benefit from access to London’s deep and liquid financial markets, which lowers the cost of capital to European firms, and of course to British firms. Restructuring manufacturing supply chains would cost both sides a lot; so, too, would the fragmentation of the financial markets.

[Sir Gerald Howarth]

Will my right hon. Friend give way?

[Mr Tyrie]

I will not, if my hon. Friend will forgive me, for the same reason previously mentioned—I will not get any extra injury time.

Unlike the customs union, access to the single market is certainly not a binary choice: a wide variety of options is possible. We do not need to look into the crystal ball; we can read the book. Switzerland has better access than Saudi Arabia; Canada has better access than Columbia. Reverting to WTO rules would be a huge risk for the UK—one that we should do a great deal to avoid.

There is a majority in the country for leaving, and if that means anything it must mean an end to the direct applicability of EU law and the restoration of control over EU migration. We should also bear it in mind that there is certainly a majority in the country for a high degree of continued engagement with our closest neighbours, which many on the continent also want. Huge advantages can flow from maintaining a high degree of political and economic engagement from outside the EU. It can be as economically beneficial as it will be politically expedient to try to construct it. It can help heal the Brexit wounds to which the Prime Minister referred in her outstanding speech, and it can address the deep unease that seems to be developing about Brexit among the young. Many of them are rejecting much of the irrationality of current political discourse coming out of Washington, and many are certainly rejecting the populist economic nationalism that President Trump represents, which some also attribute to Brexit.

In demonstrating that we understand and are responding to those voices of concern, we can win support at home, and we can construct alliances among our counterparties abroad by making it clear that we want to engage deeply with the EU from outside. That is why, if we can avoid the politics of unreason and avoid, too, the divisions at home and abroad that a disorderly and confrontational Brexit could bring, we can still reap considerable opportunities from the Brexit decision.