European Union (Withdrawal) Acts

Antoinette Sandbach Excerpts

Saturday 19th October 2019 Commons Chamber

[Antoinette Sandbach (Eddisbury) (Ind)]

I have always set out wanting to agree a deal with the EU that delivers the outcome of the referendum within the terms of the 2017 manifesto that I stood on. I have fought against an undemocratic no deal and always voted for a deal. In fact, I have voted for a deal more times than the Prime Minister. I have even voted for a deal more times than the Home Secretary, the Foreign Secretary, the Transport Secretary and the Environment Secretary—combined. Despite this, I have had the Whip removed, and those who voted down deal after deal have been rewarded with jobs in the Cabinet.

I would like to support this deal as well, but the Government have been sending mixed messages. While Ministers at the Dispatch Box say they want a deal, anonymous No. 10 sources insist that they will break the law and deliver no deal. Owing to this and the Government’s Janus-like ability to face in both directions, I cannot support the Government without assurances. Those assurances come in the form of the amendment tabled by my right hon. Friend the Member for West Dorset (Sir Oliver Letwin). This would ensure that the Government and the members of my former party stuck to their promises. It would also ensure that there was enough time to scrutinise the withdrawal agreement Bill, which is likely to be a mammoth piece of legislation.

The House might notice that I am saying little about the content of the deal. I was always taught, “If you have nothing nice to say, say nothing.” Suffice it to say that it is substantially worse than the deal negotiated by the right hon. Member for Maidenhead (Mrs May). Perhaps this deal’s sole merit is to cast her redoubtable negotiating efforts in a more positive light. It is a great shame that Opposition Members did not vote for that deal.

The Foreign Secretary let the cat out of the bag yesterday when he said that it was a “cracking deal” for Northern Ireland because it will keep

“frictionless access to the single market.”

My residents and businesses in Cheshire would like that frictionless access to the single market. If it is such a great deal for Northern Ireland, why cannot my constituents have it, too?

I will back the deal, subject to the reassurance of the amendment, but I do not like the deal. Given the choice between a dodgy deal and remain, I suspect many constituents would opt for the latter. As such, if I get an opportunity to vote on an amendment in respect of a people’s vote, I will vote for that, too.

[Several hon. Members rose—]

European Union (Withdrawal) (No. 6) Bill

Antoinette Sandbach Excerpts

2nd reading: House of Commons
Wednesday 4th September 2019 Commons Chamber

[Antoinette Sandbach (Eddisbury) (Ind)]

I want to put on record what a pleasure it has been to serve my constituents in Eddisbury. I think they would be amazed to know that the purge of the Conservative party that took place yesterday led to their Member of Parliament being expelled from the party, together with eight Privy Counsellors, two former Chancellors, a former Lord Chancellor and my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke), who has been a political inspiration to me for years. The economic arguments are well known, but in my constituency, where the chemicals, car, pharmaceuticals, aerospace and nuclear industries and the food and drink sectors are all key sectors in the north-west, 80,000 jobs are at risk in a no-deal Brexit. I do not regret putting my job on the line to save my constituents’ jobs, but I do regret that the Prime Minister forced me to do it. I want to say to Conservative colleagues that no deal is not the end of Brexit. My hon. Friend the Member for Isle of Wight (Mr Seely) said yesterday that he wanted Brexit to be over, to focus on other issues that matter to his constituents. I agree; so do I. I voted for the deal three times. However, keeping the threat of no deal on the table does not achieve this.

I say this to my Prime Minister: the reason that your negotiations are undermined is not because of a no-deal Brexit, but because the Europeans cannot see the steps that you are taking to build consensus in this House and get any concessions given to you through Parliament. That is what puts you in the weaker position, not a threat of no deal. Without the public and Europe being able to see how you are trying to build consensus in this House, and how this party, this Government, this House and this Parliament are trying to work together to get a solution, you will not get concessions from Europe. It is the people in this House who voted down the compromise—the withdrawal agreement—that have brought us to the brink of a no-deal precipice. I believe in the principle that Parliament should have a say in one of the biggest questions of our times, and tonight we should stand up.

[Sir Oliver Letwin]

My hon. Friend is on a point that has not been sufficiently emphasised. Does she agree that, at root, the horrors that those of us who find ourselves estranged from the party we love have gone through over the past 18 months derive from the inability of successive Governments to find a compromise?

[Antoinette Sandbach]

I completely agree. This is a result of the inability of successive Governments to work cross-party across the House to seek common ground, common agreement and common principles. I know many people in this place from all sides of the political divide, and I am certain that there is a will and a way to get through this, but I just have not seen the leadership from the Front Benches to argue for it. That has been my biggest shame in being a Member of this Parliament for the past three years: not seeing proper leadership out there to build our country back together again, to get people to work together and to explain in our constituencies why we should honour the referendum result but do so in a way that will maximise the chances of a positive relationship with Europe and give us the best foundations to build on for the future. That is why I say that Parliament should have a say in the biggest question of our time. If we cannot get that leadership on the Front Benches, Parliament needs to provide that leadership to the country.

European Union (Withdrawal) (No. 5) Bill

Antoinette Sandbach Excerpts

2nd reading: House of Commons
Wednesday 3rd April 2019 Commons Chamber

[Martin Vickers]

I thank my hon. Friend for that intervention. Although he is not my neighbour, he is of course welcome to visit Cleethorpes at any time. He will be made most welcome.

I was moving on to talk about a second referendum and the uncertainty and division that it would cause. I ask those Members who think that it would resolve the issue what would happen if a rerun with 16.4 million people voting remain led to them winning on a lower turnout. Would that satisfy the 17.4 million who voted to leave in 2016? Of course not. The uncertainty and division would continue, and we would be battling on for another 20 or 30 years about our future in Europe.

We must remember that the 2016 referendum was, to a great extent, an emotional vote. We had “Project Fear” telling the people that they would be worse off and that taxes would rise within days—hours, even—of a decision. However, the people said, “That’s fine. Let’s look at that.” We did not want to leave because of some potential downturn in our economy; it was a cultural issue. Our history, our structure of government, our Parliament and our judicial processes are all different, and we were having to make more and more changes to our established processes.

[Antoinette Sandbach (Eddisbury) (Con)]

I am grateful to my hon. Friend for giving way. The vote itself was on our membership of the EU. It was not about our future relationship. All those emotional matters may well have been sold to the people during the campaign, but the vote itself was about our membership, so it cannot be prayed in aid when considering how our future relationship should be shaped.

[Martin Vickers]

Needless to say, I strongly disagree with my hon. Friend. The people voted to leave the structure of the economic union, and they wanted to slam the door closed. They wanted a clean break. They were not thinking about our future relationship; they said, “We’ve had enough of the existing relationship.”

--- Later in debate ---

[Antoinette Sandbach (Eddisbury) (Con)]

I support the Bill for this reason: we are seeing the revisionism of history by European Research Group members, who claim that 17.4 million people voted for no deal. That was not on the ballot paper; what was on the ballot paper was our membership of the EU.

Many of us in the House triggered article 50 on the basis that we were saying to the EU that we would not remain a full member, but wanted a new relationship, one that might look like Norway or Switzerland, or to be in EFTA. That is what Vote Leave campaigned for on the campaign trail, and its electoral registration made it absolutely clear that the decision on the future relationship would be up to Parliament. Voters were voting to leave the political institutions of the EU—out of the European Court of Justice and the ever closer union—but not ruling out the single market or the customs union.

Why has this House ruled out no deal? That is because we have faced the reality of what leaving with no deal would look like. We are due to do that in just over a week, with no process in place. If we are to change that, we need to change the law. Parliament has voted by 400 votes to 160 against no deal. The Bill is not undemocratic; it implements that decision. We have not ruled out leaving the EU, and are still leaving other options open for our future relationship.

I have supported the Prime Minister’s deal three times. I have voted on behalf of my constituents to implement their decision in the referendum. The problem is the hard core of ideological WTO-ers who want to hold this House and the country to ransom. Distressed businesses in my constituency are saying that we must resolve this.

[Sir William Cash]

Will my hon. Friend give way?

[Antoinette Sandbach]

I am sorry, my hon. Friend has spoken many times.

Distressed employers in my constituency who are responsible for thousands of employees want a resolution. The Bill will give Parliament a proper say, in the event that we cannot get a resolution in the timeframes currently set out. Far from being undemocratic, this is about putting a process in place that allows us to implement a decision and to have time to look at the best way in which to implement our future relationship with the Europe. That is why I shall be voting for the Bill.

[Mr Speaker]

The time limit is reduced to two minutes.

EU Withdrawal Agreement: Legal Changes

Antoinette Sandbach Excerpts

Monday 7th January 2019 Commons Chamber

[Stephen Barclay]

I am very mindful of what the Chair of the Exiting the European Union Committee says, and of the letter on this issue signed by a significant number of Members. The core point about ruling out no deal is that the House has to be for something rather than simply to agree what it is against. It is clear that the signatories to the letter suggesting that no deal should be ruled out support a whole spectrum of issues. The House has to decide what it is for, not simply what it is against.

[Antoinette Sandbach (Eddisbury) (Con)]

Does the Secretary of State agree with my constituent who runs a chemical business, who says a no deal would be a disaster for him? Can my right hon. Friend give a direct assurance that we will proceed to a vote on the deal next week?

[Stephen Barclay]

I think we need to move away from some of the more inflammatory language around the consequences of no deal, but I do agree with my hon. Friend that there will be significant issues arising from no deal. I do not support the view expressed by some Members, including the Democratic Unionist party spokesman, who is supremely relaxed about the consequences of no deal. I think the consequences of no deal will be material, but I do not think they will be of the inflammatory sort that we sometimes hear and read about in the press.

European Union (Withdrawal) Bill

Antoinette Sandbach Excerpts

Ping Pong: House of Commons
Wednesday 20th June 2018 Commons Chamber

[Mr Speaker]

Order. I urge Members to help each other.

[Antoinette Sandbach (Eddisbury) (Con)]

I am grateful, again, to the other place for sending us the amendment. I have been concerned about this issue since the referendum, and have been open in my views about the need for a meaningful vote and parliamentary sovereignty. This is about our country’s future and ensuring that we enhance, not reduce, our democracy. When I was re-elected last year, my constituents were under no illusions about how important I thought a meaningful vote was, as I had already made my concerns public and, indeed, voted for such a vote during the article 50 process.

Views may differ regarding the desirability of no deal. In my view, it would be utterly catastrophic for my constituents and the industries in which they work, but surely all sides should welcome the certainty that the amendment would bring to the process. We are often accused of wanting to tie the Government’s hands, but nothing could be further from the truth. How can the amendment tie the Government’s hands during negotiations when it concerns the steps that should be taken when negotiations have broken down? In other words, it concentrates on events after the negotiations.

[Philip Davies]

rose—

[Antoinette Sandbach]

I will not give way.

I support the Government’s negotiation and strongly believe that the Prime Minister will succeed in her negotiation. However, it would be irresponsible not to have a process in place for what will happen should negotiations collapse. What is more, the amendment would ensure that, when the Prime Minister sits down to negotiate, our European partners know that she does so with the full backing of Parliament. Far from binding the Prime Minister, it would strengthen her hand. I encourage all my colleagues to recognise that the amendment would empower both Parliament and our negotiators. It lays out a contingency should disaster strike, and it delivers on the commitment to take back control to Parliament.

[Several hon. Members rose—]

European Union (Withdrawal) Bill

Antoinette Sandbach Excerpts

Tuesday 12th June 2018 Commons Chamber

[Sir Edward Leigh]

No.

[Antoinette Sandbach (Eddisbury) (Con)]

Will my hon. Friend give way?

[Sir Edward Leigh]

My hon. Friend takes a very different point of view from me, so in all courtesy, I give way, but this must be the last time I do so.

--- Later in debate ---

[Antoinette Sandbach]

I am very grateful to my hon. Friend for giving way. Does he agree that the amendment tabled by my right hon. and learned Friend the Member for Beaconsfield (Mr Grieve) deals with the issues that he is raising?

[Sir Edward Leigh]

No, I do not agree. I talked to my right hon. Friend the Brexit Secretary earlier today. He simply said—he does understand these things—that all the amendment tabled by my right hon. and learned Friend the Member for Beaconsfield (Mr Grieve) would do would be to implement what the House of Lords wants to do in fewer words, so I do not accept that, I am afraid. We have to bite this bullet now. We have to support the Government and reject the amendment.

As I was asking, what would be the result—we do not operate in a vacuum—if the House of Lords had its way? Of course it would be a catastrophe for the Government. There would be banner headlines in every single newspaper tomorrow saying that the Government had been defeated and that the whole Brexit momentum was in danger. Much more important than that—this is why I think the argument is disingenuous—is the fact those who support the House of Lords are dressing up their arguments in terms of parliamentary sovereignty. It is in order, is it not, for Parliament to debate and amend a Bill, as the House of Lords can do? That is what we do all the time, but what the Lords really want to do is to create a situation in which the whole process is frustrated.

--- Later in debate ---

[Frank Field]

For the referendum, it was not four sides, but a small telephone directory of people—they are generally talked about in a disdainful way—who were saying they had nowhere else to go. My real concern is what happens to representing those key Labour interests. I hope that there will be those further discussions and, in the process of coming to a good resolution and ensuring that the majority of the two thirds of the Labour constituencies are well represented, may I be part of any of those private discussions?

[Antoinette Sandbach]

I want to say how grateful I am that the Lords have given the consideration they have to the Bill, and they have improved it considerably before sending it back to us. I accept that the Solicitor General has given an important concession today and I would have supported the Lords amendment had that concession not been made.

[Mr Ben Bradshaw (Exeter) (Lab)]

I think it would be very helpful to the House if the hon. Lady could spell out in a little more detail exactly what the consensus is—

Oral Answers to Questions

Antoinette Sandbach Excerpts

Thursday 3rd May 2018 Commons Chamber

[Mr John Whittingdale (Maldon) (Con)]

4. What progress he has made on negotiating the UK’s future relationship with the EU.

[Antoinette Sandbach (Eddisbury) (Con)]

6. What recent progress he has made on negotiations on the UK leaving the EU.

[Hannah Bardell (Livingston) (SNP)]

7. What recent progress he has made on negotiating the UK’s exit from the EU.

--- Later in debate ---

[Mr Davis]

I have some much more pertinent things than that to frame, Mr Speaker.

My right hon. Friend is absolutely right. The European Union (Withdrawal) Bill is essential and is in the national interest. Some of the amendments passed in the upper House—and the upper House does a very important job, as a reviewing House, in improving the quality of legislation—could have the effect of undermining the negotiation. That is a matter of critical national interest, and we will have to deal with it accordingly.

[Antoinette Sandbach]

Does the Secretary of State agree with the finding of the Northern Ireland Affairs Committee that there is currently no technological solution to the problem of the Irish border?

[Mr Davis]

We have said categorically that there will be no physical infrastructure or related checks and controls at the border between Northern Ireland and the Republic. We have set out clear commitments in relation to the border and have put forward two potential customs models, to which the hon. Member for Paisley and Renfrewshire North (Gavin Newlands) alluded.

I have always said that the best solution to the Northern Ireland border issue will be reached through the deep and special partnership between the United Kingdom and the European Union, recognising the unique circumstances of Northern Ireland. As the European Commission has itself acknowledged, solutions to the border issue cannot be based on precedent.

Leaving the EU: No-deal Alternatives

Antoinette Sandbach Excerpts

Wednesday 21st February 2018 Westminster Hall

[Antoinette Sandbach (Eddisbury) (Con)]

I beg to move,

That this House has considered alternatives to a no-deal outcome in negotiations with the EU.

It is a pleasure to serve under your chairmanship, Mr Sharma.

Up until now we have focused on the binary choice between the Government successfully achieving a good Brexit deal or a departure on the terms of the World Trade Organisation that almost nobody wants. That stands in stark contrast to the promises of senior leavers prior to the referendum. We were promised that Britain would have access to the single market and told that the idea that our trade would suffer is silly. Now we face leaving the single market and, in the worst-case scenario, on WTO terms. We were promised that there would be no change to the border between Northern Ireland and the Republic. Now we see that there are huge uncertainties about the issue of the Irish borders, with a few hon. Members even going so far as to criticise the Good Friday agreement.

We were promised that an EU trade deal would be the easiest in human history. Now we see just how ambitious that claim was. This is why I am calling this debate: we were promised a smooth and simple exit from the EU, and instead we have complexity and the risk of chaos. It is even more important now in light of the leaked letter from a small minority of my colleagues. These hard-line Brexiteers have a very strange view of what WTO rules or terms would mean. This is in marked contrast to the views of the vast majority of my colleagues, who would prefer to assess all the options available.

First, I would like to outline why a no-deal or WTO-terms Brexit would be quite so chaotic. A WTO-terms hard Brexit is greeted by some of my colleagues with considerable sangfroid. My right hon. Friend the Member for Wokingham (John Redwood) told the “Today” programme last year that

“we will do just fine”

if we leave on WTO terms. He was joined earlier this week by my right hon. Friend the Member for Clwyd West (Mr Jones), whom I see in his place, who told the Daily Express:

“I’m entirely happy to continue trading with the EU on WTO terms.”

I am afraid that I and many others are not entirely happy with this. Some 43% of UK trade is with the EU and I am not willing to see that prosperity put in jeopardy. It would be economically catastrophic to simply walk away from the negotiating table, crashing out.

Crashing out with no deal would lead to a reduction in EU trade of between 40% and 60%. That translates into between 4.8% and 7.2% of GDP. The impact of new tariffs on our trade would be hugely damaging. Around 45% of UK exports of goods and 54% of UK imports of goods would become newly subject to tariffs. While the simple average tariff is 5.1%, in some sectors this can be much higher: for dairy products—a key sector for my constituency— it is 39%; for preparations of meat and fish it is 40%; and for cars it is 10%. Tariffs would drive up prices for ordinary consumers. A Credit Suisse report last year said that food prices could rise by 8%, with UK dairy warning of a staggering 51% increase in the cost of Cheddar. Credit Suisse also said that car prices could rise 15% and predicted a 20% drop in sales as a consequence.

Non-tariff barriers would also have a significant impact on industries where the supply chain is deeply integrated across borders. A KPMG study for the Dutch Government cites a number of concerns. It estimates the costs of customs formalities to be between €78 and €126 per shipment. These costs would likely be passed on to consumers in addition to tariff costs. They also have concerns about the capacities of ports, both here and on the continent, stating:

“Even brief delays will probably lead to long queues at terminals in the Netherlands and the UK.”

This is not just a matter of physical capacity either, as we will need to ensure that our workforce develops customs expertise that has not previously been necessary. There are also questions about the capability and capacity of regulatory authorities. A National Audit Office report last year estimated:

“The number of decisions that have to be made over whether to permit people and goods to cross the border could increase significantly (potentially 230% and 360% respectively).”

I will make one final point about the border. There has been a recent push to suggest that an EU-UK hard border in Northern Ireland would not be an issue, as technology would solve every problem. These advocates cite the US-Canada border as an exemplar. I cannot agree. I refer colleagues to the evidence heard by the Business, Energy and Industrial Strategy Committee in which Dan Mobley of Diageo said explicitly:

“It is not completely frictionless.”

If the Government are convinced that this is an approach that can work and meet the need for a frictionless border, I would press Ministers to publish detailed plans of how it would work. Overall it is easy to see why the Treasury estimates that the cost of a WTO-terms Brexit would be around 8% of GDP over the next 15 years. It is also easy to see why it is important that we assess the alternatives to this disastrous course of action.

[Nigel Huddleston (Mid Worcestershire) (Con)]

I congratulate my hon. Friend on securing this debate. Does she share my concern about not only the potential of tariffs, but the fact that the WTO is unsatisfactory in many other ways? For example, it is simply non-existent or silent on swathes of industry, including the aviation sector. It is either WTO or nothing, but in the aviation sector, for example, there is not a default to WTO. That is the same in several other industry sectors and that is causing alarm and concern for business.

[Antoinette Sandbach]

I absolutely share my hon. Friend’s concerns. There are concerns in relation to intellectual property and the vast majority of our service industry, which is a huge contributor to our balance of trade. He is quite right to outline the deep flaws that a WTO Brexit would bring.

The most preferable option in terms of a Government deal is the Government successfully completing their negotiation with the EU and securing the “deep and special partnership”. I support the Government’s work and the comments by the Brexit Secretary in his speech yesterday that we need to ensure a broad base of mutual recognition of standards. Without those, we would risk many of the drawbacks that we would face under a no-deal Brexit, especially with regard to the non-tariff barriers that are in fact the biggest concern for our economy. However, I press the Government to ensure that the service sectors are included in the deal that they strike. Services make up nearly 80% of our economy. Service industries such as legal services, insurance services, consultancy services, the music industry and the aviation industry contribute to our balance of payments surplus in service trade with the EU. A failure to strike a deal could cost us about 75,000 jobs and £10 billion in tax revenue.

Some hon. Members may think that simply remaining in the EU is an option. Rather than pressing for this currently unachievable choice, I would encourage hon. Members to see if we can deliver a Brexit that removes us from ever closer union and the political institutions of the EU, while seeking to maintain our prosperity and our trade links, which brings me on to my final option. This final option is the one that, aside from the Government’s plan, would be the best for Britain. Re-joining the European economic area/European Free Trade Association would be a bold step towards preserving our prosperity and provide many answers to the questions that are currently vexing Ministers.

EEA-EFTA would give us access to its free trade agreements spanning 27 countries. EFTA has free trade agreements with, among others, Turkey, Canada, Columbia, Mexico, Egypt and Israel. There are ongoing negotiations with India, Indonesia and Vietnam. These agreements, as well as EEA membership, would give a market of over 900 million customers for our products and services.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I congratulate my hon. Friend on securing this important debate. Is she proposing EFTA-EEA membership as a transition or a permanent safe harbour?

[Antoinette Sandbach]

I am proposing a permanent safe harbour. If we went into EEA-EFTA, we would have an opportunity to shape and influence that trade body going forward. It delivers what many of my constituents originally voted for in the 1970s, an economic free trade area, but its great benefit and advantage is that it removes us from the ever closer union, which is what many of my constituents who voted leave were concerned about.

[Heidi Allen (South Cambridgeshire) (Con)]

Will my hon. Friend give way?

--- Later in debate ---

[Antoinette Sandbach]

I will give way to my hon. Friend the Member for South Cambridgeshire (Heidi Allen), and then to my hon. Friend the Member for Carlisle (John Stevenson).

[Heidi Allen]

At the end of the day we have to try to find some peace on both sides of this argument. This could be the common market. It could, in some ways, be what many people who voted leave were hoping that we would go back to, and it could actually be the best compromise for everybody.

[Antoinette Sandbach]

I completely support and endorse my hon. Friend’s comments.

[John Stevenson]

My hon. Friend the Member for South Cambridgeshire (Heidi Allen) raised my question. In the referendum our country was divided between 52% and 48%. Does my hon. Friend the Member for Eddisbury (Antoinette Sandbach) agree that the EFTA solution potentially unifies those two groups?

[Antoinette Sandbach]

I certainly do. It delivers what many people voted for, which was to leave the political institutions of the European Union while continuing our prosperity and building on our common links with the European Union. It would enable us to be in that common market that so many people originally voted for, with all the benefits that it entails for our businesses and constituents.

[Mr Dominic Grieve (Beaconsfield) (Con)]

My hon. Friend makes a powerful and compelling argument. Does she agree that we cannot ignore the fact that we are now 20 months down the road from the referendum? Whatever people might have voted for in the referendum, the reality of our current negotiating position will have to dictate the public’s acceptance of what we are eventually able to deliver. To simply live in the past as to what people’s views were in the middle of 2016 is to fly in the face of the reality of the evolving picture at a European level and what we can in practice achieve that is best for our country.

[Antoinette Sandbach]

I am grateful for my right hon. and learned Friend’s intervention. He calls to mind the comments of Bismarck, who said that

“politics is the art of the possible.”

It is my view that this is a possible and realistic achievement. It should be the Government’s plan B. We should be looking at this option as a realistic alternative. I cannot understand why, when we talk about a no-deal Brexit, we discuss only WTO rules and this eminently sensible, common-sense option, which would help to preserve economic prosperity in this country but deliver leaving the EU’s political institutions, is not treated with more seriousness by the Government.

My right hon. and learned Friend has rightly made the point that we are 20 months into the negotiations. We need to ensure that our plan B is credible and deliverable in a way that does not damage this country’s future, our shared values or the prosperity with the EU that has delivered for us over our 40 years of membership. The EFTA option gives us a huge opportunity not to throw the baby out with the bathwater, which nobody voted for.

[Mr David Jones (Clwyd West) (Con)]

As my hon. Friend knows, membership of EFTA-EEA connotes membership of the single market, which was rejected by the British people when they voted to leave the European Union. Is it her proposal that membership of EEA-EFTA also be put to the British people in a referendum?

[Antoinette Sandbach]

I am interested by my right hon. Friend’s comments. The quote that I referred to at the beginning of my speech—

“Britain will have access to the Single Market”—

came from the Vote Leave paper, “‘Leave’ looks like...”. So I would argue that the British public were promised that we would stay in the single market by Vote Leave.

[Vicky Ford (Chelmsford) (Con)]

I recall listening to the wonderful BBC’s “Today” programme on the eve of the referendum and the leading Brexiteer Daniel Hannan MEP describing the EEA as an economic free trade area that stretched from Iceland to Turkey, and how possible it would be for the UK to consider staying part of that even if Britain voted leave. Does my hon. Friend recall that type of message?

[Antoinette Sandbach]

I certainly do recall that type of message. It was one of the big messages that was being sent out: our prosperity would not be threatened, we would be able to stay in the single market and we would have the “exact same benefits” as before.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

I am intrigued because I thought the whole basis of my hon. Friend’s very fear-based analysis of Brexit is that the EU wants to stick tariffs on trade between the UK and the EU. Which leader around the European Union has said that they want to put tariffs on trade between the UK and the EU?

[Antoinette Sandbach]

The consequences of a WTO—

[Mr Jenkin]

Not one!

[Antoinette Sandbach]

No. The consequences of a WTO Brexit mean that we fall back on rules that require the imposition of tariffs, unless we waive them as a most favoured nation status for all other countries. That would then expose our manufacturing, farming and other industries to competitors with far lower standards than us, some of which have far cheaper labour costs, when we have very high quality products in this country. That is the consequence of WTO terms.

[Stephen Kinnock (Aberavon) (Lab)]

I congratulate the hon. Lady on securing this debate. One of the common misconceptions is that the EEA and the single market are exactly the same thing. That is not the case. There is no common fisheries policy and no common agricultural policy. The writ of the European Court of Justice does not run to the full EEA; there is the EFTA arbitration court. Articles 112 and 113 of the EEA agreement allow for safeguard clauses suspending things such as free movement of labour. So it is important that in this debate we clarify that the European economic area and the single market are not synonymous.

--- Later in debate ---

[Antoinette Sandbach]

I entirely concur with the hon. Gentleman. My hon. Friend the Member for Wimbledon (Stephen Hammond) is in his place, and in a previous debate he eloquently outlined the benefits of and difference between EEA-EFTA membership and full membership of the European Union.

[Mr Grieve]

Does my hon. Friend agree that there seems to be a misconception about the nature of the European Union? Listening to the intervention made by my hon. Friend the Member for Harwich and North Essex (Mr Jenkin), I picked up the idea that the EU is some sort of sovereign entity. But it is not; it is an international treaty organisation, and therefore to ask it to change its rules base to accommodate the kind of access that was wanted, but which comes without subscribing to the rules, will be impossible in practice.

[Antoinette Sandbach]

I fear that my right hon. and learned Friend may be right, but I am very happy to give the Government the benefit of the doubt in their negotiations and to seek to achieve the aims that they aspire to. However, I am outlining the consequences of a no-deal, and if the Government are unable to achieve their aims, EEA-EFTA membership should be the plan B, alternative option, which the Government need to give greater consideration to.

[Heidi Allen]

It seems to me that whatever side of the argument the public started on, what they want from Parliament more than anything is to find a way through this and to secure the best outcome. That involves compromise, which my hon. Friend’s suggestion of EFTA-EEA could be. On behalf of the country, as Parliament we should get behind the Prime Minister and offer that as a solution. No side gets absolutely what they want, but that is the nature of democracy. It is about compromise.

[Antoinette Sandbach]

I entirely agree with my hon. Friend. My personal view is that I would much rather remain in the European Union. That is what I voted for and believe in, but in seeking to honour the result of the referendum, we need to look at this credible and deliverable option that removes us from ever-closer union. As my hon. Friend the Member for Wimbledon outlined in his debate two weeks ago, this option has significant advantages in terms of taking us out of the jurisdiction of the European Court of Justice and delivering on many of the issues that concerned the UK public.

I was talking about the potential access to 900 million consumers for our products, which I would say is an optimistic, not a fear-based outlook. When compared to EU membership, EEA-EFTA membership is significantly cheaper. In 2015, Norway’s net contribution was €115 per person, compared to €214 per person from the UK.

An EEA-EFTA agreement would protect our services industry, as it would give us continued access to the common market. The impact on our GDP and trade would be barely a quarter of that of a WTO-terms departure, which would cause a drop in trade of between 40% and 60%. EEA-EFTA would substantially reduce that.

Some hon. Members insist that EFTA membership would not respect the referendum result, but I disagree. The referendum told us that we should leave, but not how. If we value prosperity above ideology, and pragmatism above all, there is a clear case for an EEA-EFTA-style agreement. We would be free of the risk of ever-closer union; the organisation is clear that it is strictly an economic grouping. We would be rid of the prospect of ever having to join the euro. EEA-EFTA decisions require the agreement of all members rather than the votes of a qualified majority, so the risk to sovereignty would be reduced. Disputes would be resolved through the EFTA court, not the European Court of Justice. We would be free to set our own agriculture and fisheries policies.

My hon. Friend the Member for South Suffolk (James Cartlidge) put my argument in its most succinct form:

“if EFTA-EEA is such a bad idea, why are its four constituent countries among the richest and most successful on the face of the planet?”—[Official Report, 7 February 2018; Vol. 635, c. 560WH.]

None of my proposals regarding EEA-EFTA are incompatible with the Government’s ambition. In the previous debate about EFTA, the Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Worcester (Mr Walker) said that the Government seek

“a partnership that in many ways goes beyond the EFTA arrangements we have discussed.”—[Official Report, 7 February 2018; Vol. 635, c. 569WH.]

I would welcome such an end point and I am sure many colleagues would too. All we seek is the reassurance that if the Government fail in that laudable aim, we will fall back on an EEA-EFTA arrangement, rather than no arrangement at all.

[Several hon. Members rose—]

--- Later in debate ---

[Suella Fernandes]

As I will come on to, the Government do not think that the EFTA-EEA option meets the objectives that my hon. Friend sets out, because it falls short of what we are seeking in our new arrangement with the EU on many fronts. I will elaborate on that in a few moments.

The first alternative to a no-deal scenario, and the Government’s preferred outcome, is a new settlement with the EU, as set out by the Prime Minister in her Lancaster House and Florence speeches. As she explained, we seek

“a new framework that allows for a close economic partnership”

between the two parties and that honours the instruction of the British people to take back control of our laws, borders and money.

As an existing member state, we share fundamental beliefs in fair competition, consumer rights and strong regulatory standards. Our position as the EU’s largest trading partner means that finding a meaningful deal along those lines is in both our interests. As my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) pointed out, the current trade deficit between the UK and the EU means that tariff-free trade benefits not only UK businesses and citizens, but EU businesses and employees who benefit from cross-channel commerce.

[Antoinette Sandbach]

Will the Minister explain what the Government’s approach is towards the service sector and non-tariff barriers?

[Suella Fernandes]

As my hon. Friend rightly pointed out, 80% of the UK economy is based on services, so it is important that we seek an agreement that will further enhance the possibility for our services to be exchanged, and for collaboration to continue. Reducing non-tariff barriers is, of course, a priority in any agreement that we seek with the EU, and is something I believe would be possible.

We will agree a comprehensive economic partnership, underpinned by high standards and a practical approach to regulation, that ensures continued trade and prosperity between the UK and the EU, based on mutual recognition. Again, the Secretary of State set that out in his speech yesterday. That partnership will aim for as frictionless as possible trade between the parties and will ensure access to each other’s markets, so that our consumers and businesses can benefit.

On security, the Prime Minister said last week that we are proposing a new partnership on future security, law enforcement and criminal justice co-operation—a strategic agreement treaty that will allow us to work together with the EU to promote our shared interests globally. That new partnership is ambitious and will not only reflect our history and the practical benefits of co-operation in tackling shared threats, but demonstrate the UK’s genuine commitment to maintaining a secure and prosperous Europe.

We are not pursuing EEA membership or aiming simply to copy the Canada-EU free trade agreement. The Norway option is not for the UK. We seek a collaboration on trade and security. We want to enable control over migration, autonomy over our laws and regulations, and the freedom to implement our own independent trade policy with the rest of the world. Only the deal that this Government are aiming for strikes that balance, which is why that is the best outcome for the UK and the EU.

As part of the deal between the EU and the UK, we are seeking a strictly time-limited implementation period.

[Antoinette Sandbach]

The Minister seeks to rule out a Norway option as not satisfactory. Will she also rule out a WTO option?

[Suella Fernandes]

We are not working towards a no-deal scenario, if that is what my hon. Friend is implying. As I have set out just now, we want an agreement based on tariff-free access, reducing our non-tariff barriers and with the ability to strike our own free trade agreements, but it is clear that we are a founding member of the WTO and plan to take up our seat at that organisation in due course.

--- Later in debate ---

[Antoinette Sandbach]

I thank all right hon. and hon. Members who have contributed to the debate today.

Question put and agreed to.

Resolved,

That this House has considered alternatives to a no-deal outcome in negotiations with the EU.

European Free Trade Association

Antoinette Sandbach Excerpts

Wednesday 7th February 2018 Westminster Hall

[Antoinette Sandbach (Eddisbury) (Con)]

It is a pleasure to serve under your chairmanship, Mr Gapes. Last week at DExEU questions, the Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Wycombe (Mr Baker), challenged me to table a debate on EFTA. I am grateful to my hon. Friend the Member for Wimbledon (Stephen Hammond) for having the considerable foresight to have already done so. I know that he and others have been at the forefront of the push to get EFTA onto the Government’s agenda. I listened carefully to his contribution and share most—in fact all—of his perspective. His timing could not have been better, because it is vital that we have an evidence-led debate on this subject and on the broader subject of the UK’s relationship with the EU.

The main focus of my remarks will be the transition and how best to manage our departure, should a deal not be achieved before Brexit day. At the end I will address EFTA membership in the longer term and how this can be in our national interest. I will be brief, because I have discussed this recently. If hon. Members wish to know my thoughts in more detail, they can check the Hansard record of the debate on 22 January.

The Government do not have much time left to strike a deal, as Michel Barnier reminded us all yesterday. The time is coming when the Government must make tough choices, and those need to be based on evidence rather than on ideology—particularly an ideology that can be seen at the fringes of our party. The Government are also delaying several key pieces of work that will prepare us for the world post being in the EU. The road haulage Bill has been delayed, and the immigration White Paper has been delayed and may not be published until the end of the year.

I have consistently called for Ministers to be given the time that they need to think through their decisions. This is, as others have said, one of the most complex tasks the country and its Administration have faced in decades, and the timeframe for making decisions should reflect that, but under the current arrangements, we will have to restructure our entire relationship with the world in just a couple of years. Roy Jenkins once compared Tony Blair’s approach to winning high office to that of a museum curator carrying a Ming vase across a polished marble floor. I cannot help but think that Ministers may sympathise with that image as they hold on to something as precious as the democratic choice of the public while having to deliver Brexit in a manner that does not harm the economy, wear away at the social fabric of this country or damage our standing abroad. To do that, I ask Ministers to make up their minds on all the best available options, and to respect the wishes of all our constituents, not just either the 52% or the 48%.

There are considerable merits of EFTA for a longer transition period. I support the Government’s ambition for a deep and enduring partnership with the EU. Given our shared history and geography, it would be wrong to adopt CETA wholesale. To propose an entirely new arrangement is ambitious, but I welcome that ambition. Our partnership must be deeper than the EU has with any other third party, and it must include a deal on services, which make up almost 80% of our economy and are therefore essential to our prosperity.

I am aware of the pressure that the Government are under to strike a deal soon, and this is where the first benefit of EFTA should become apparent. If we were able to expedite rejoining EFTA it would provide a soft landing should the Government fail to strike a deal before the deadline. Currently, failing to strike a deal would see us ejected from the EU with no alternative to WTO terms. EFTA should be that alternative. Last week’s Treasury estimates, which are the best data we have at this point, suggest that WTO terms would cost us 8% of GDP growth over the next 15 years.

[Kevin Hollinrake]

My hon. Friend is making an excellent speech. To take her back to her earlier comments on a transition: is she proposing this scenario as a transition or a permanent state?

[Antoinette Sandbach]

It is the option that gives us the leeway to negotiate. It is an important staging post. Given the severe impacts that the WTO alternative would have, it is a safe harbour, if I can put it that way, with all the benefits that my hon. Friend the Member for Wimbledon has already outlined.

The reality is that if we do not take advantage of the opportunity that EFTA membership would give us, we are facing a cost of 8% growth in our GDP. That is a very significant cost that will have a significant impact on tax revenues and employment prospects in this country. By comparison, EEA membership through EFTA would allow us to recoup 6% of that lost growth, which is important for the Government to consider. I note that this month the UK Trade Policy Observatory has published an important briefing paper on the sectors most vulnerable to Brexit, looking at the different options. Perhaps those who are not convinced by the Treasury analysis can look at independent analysis—although I think the Treasury analysis is independent—published by a third source.

EFTA also allows the Government to meet their existing commitments, particularly around having no hard border between Northern Ireland and the Republic of Ireland. It seems to me, from the provisions in paragraphs 49 and 50 of the agreement made in December, that that is a crucial ambition that we need to step up and achieve. We need to examine whether EEA membership and continuing membership of the customs union is the only way to deliver that promise. Even if it is not, it gives us the time to look at what other options are available.

I listened with interest to the concerns expressed by the noble Lord Bridges in the debate on the European Union (Withdrawal) Bill last week that transition needed to be a bridge to the future, not a gangplank into thin air. EFTA offers that bridge: a graduated transition that sees us leaving the EU, regaining control of swathes of policy areas, but retaining the vital trading and economic links that have built up between the UK and Europe, until a better deal can be struck. I know that some Members are concerned that this is a route to allow mischievous remainers to get back into the EU, but that is not correct: it is not the intention. Leave won; some leavers still need to get used to that. Those who have fought for decades to secure our departure from the EU have far more to fear from a badly executed Brexit than they do from using EFTA to bridge any potential gaps.

Like my hon. Friend the Member for Wimbledon, I think that the long-term benefits of EFTA will become clear should we apply to rejoin, as I hope we will. He has already outlined the potential market access to more than 900 million people. From a sovereignty perspective, EFTA decisions require unanimity; we would still have the power of our veto. We would take back control of farming and fisheries. We would be rid of ever closer union and there would be no prospect of the single currency. EFTA would address a huge part of the public and political concern about the EU, while still allowing the UK to benefit from the single market.

I do not want to revisit the details I discussed a fortnight ago, but I do want to add two points. I have faith in the Prime Minister’s ability to strike a deal, but if we do not reach agreement with the EU regarding the Irish border, EFTA would allow us to extend the existing commitment we have made into the longer term. The breathing room that EFTA arrangements provided would strengthen the Prime Minister’s hand in negotiations. In the event of no deal, the UK faces significant detriment from WTO terms.

EFTA offers a route that will allow Ministers to respect the referendum result, our commitments on the Irish border and the needs of our economy. In a number of areas, it would allow considerably greater freedom of action than we currently enjoy. It would ensure that the most complex parts of our negotiation with Brussels—the issue of the Irish border—is resolved in the short term, and it would provide more time to create a bespoke solution. It allows us to minimise the risks of no deal and strengthen our hand in negotiations. If Ministers disagree so vehemently with the Treasury analysis, what are their own assessments of the impact of no deal? What deficiencies do they identify in not only the Treasury analysis, but much of the analysis by independent think-tanks that are external to the UK civil service?

EFTA constitutes the best arrangement for a plan B in the unlikely event that plan A fails. I believe that it is a good deal for Britain in the longer term, and ask that colleagues rethink this issue and recognise how EFTA can offer us a safer, more secure route out of the EU and into the world.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Robin Walker)]

I start by congratulating my hon. Friend the Member for Wimbledon (Stephen Hammond) on securing this important debate on the European Free Trade Association, to which I am delighted to respond. I note that he beat our hon. Friend the Member for Eddisbury (Antoinette Sandbach) in securing this debate, but as my hon. Friend and colleague at DExEU, the Member for Wycombe (Mr Baker), said in the House on 1 February, a number of colleagues have suggested EFTA membership as a possible option, and it is important that we debate it.

Although we recognise the benefits of ensuring continuity in our relationships with the EFTA states, we do not plan to seek membership of EFTA, for four key reasons. First, EFTA membership in and of itself does not deliver any market access to the EU. As my hon. Friend the Member for Wimbledon pointed out, there are some misconceptions. It is important to delineate the difference between the EFTA agreement and the EEA. EFTA is a trading bloc between four European countries: Switzerland, Norway, Iceland and Liechtenstein. Three of them participate in the EU’s single market through the EEA agreement, while Switzerland participates in some areas through a series of bilateral arrangements with the EU. As such, joining EFTA does not say anything about our future economic partnership with the EU.

Those calling for us to join the EFTA need to be more specific, as my hon. Friend was, about whether they mean joining the EEA, or attempting to copy the Swiss agreement, or negotiating a different bespoke agreement. The Prime Minister has been clear that participation in the EEA agreement would not work for the UK because it would not deliver on the British people’s desire to have more direct control over the decisions that affect their daily lives, and it would mean accepting the continued free movement of people, which both the Conservative and Labour manifestos pledged to end at the last election. Switzerland, on the other hand, has a patchwork of agreements with the EU that fall short of the ambitious economic partnership we are seeking. Neither model strikes the balance of democratic control and mutual market access we want for our future partnership with the EU.

Secondly, our ambition as a global trading nation goes beyond the scope of EFTA’s existing free trade agreements with third countries. Leaving the EU offers us an opportunity to forge a new role for ourselves in the world, to negotiate our own trade agreements and to be a positive and powerful force for free trade. Alongside new FTAs, we are also committed to achieving continuity in our existing trade and investment relationships with third countries by transitioning the EU’s free trade agreements. It is worth noting that EFTA’s network of preferential trading arrangements falls short of our ambitions.

Thirdly, EFTA membership means accepting free movement between EFTA members—that principle is underpinned through the legal framework of the EFTA convention. While we do not regard the referendum result as a vote to pull up the drawbridge, it must be a priority to gain control of the numbers of people who come here from Europe.

Finally, while we want to maintain our deep and historic relationships with EFTA states, the UK is in many ways different from those countries, as the hon. Members for Greenwich and Woolwich (Matthew Pennycook) and for Glenrothes (Peter Grant) pointed out. Our population is around 65 million, while the EFTA states together make up roughly 14 million people. In 2015, the EFTA bloc’s collective GDP amounted to £710 billion as compared with the UK’s £1.9 trillion. The UK’s participation in EFTA would fundamentally change the nature of that group and would not be an appropriate model for our future relationship with the EU or those countries.

[Antoinette Sandbach]

Some have proposed that EFTA should be a plan B in the event that the Government do not achieve the ambitions they are outlining, instead of WTO rules. What does the Minister say to that?

[Mr Walker]

We are absolutely focused on achieving a deep partnership between the UK and EU. Of course we need to look at our contingency plans, and I am sure Ministers will take note of this debate in that regard, but we want to focus on achieving a partnership that in many ways goes beyond the EFTA arrangements we have discussed.

Oral Answers to Questions

Antoinette Sandbach Excerpts

Thursday 1st February 2018 Commons Chamber

[Suella Fernandes]

The document to which the hon. Gentleman refers is not Government policy. It comes with significant caveats and is limited in nature. It is clear that there are significant benefits from our departure from the EU and the customs union. First, we have the chance to pursue our independent global trade policy and foster growing economic ties with fast-growing economies for the first time in 40 years. Secondly, we will be free from the common external tariff, which could lead to a drop in consumer prices for British citizens. Lastly, we have the golden opportunity to build a new customs arrangement with the EU that is world-leading and enables prosperity, jobs and growth.

[Antoinette Sandbach (Eddisbury) (Con)]

3. What steps his Department is taking to plan for different outcomes in the negotiations on the UK leaving the EU.

[The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)]

Across the Government, we are planning for all outcomes, including the unlikely scenario in which no mutually satisfactory agreement can be reached. Given the success that we have had in securing an agreement in the first phase of negotiations, we are confident that we will go on to reach a swift agreement on an implementation period and a mutually beneficial future partnership with the EU. We approach the negotiations anticipating success and a good deal for both the UK and the EU.

[Antoinette Sandbach]

Given DExEU’s propensity to rubbish the Government’s own research, will the Minister commission the independent Office for Budget Responsibility to model the budgetary and economic impacts of the four departure options—World Trade Organisation rules, a Canada-style deal, the Government’s free trade agreement proposal and joining the European Free Trade Association—and then release this modelling to Parliament?

[Mr Baker]

As my hon. Friend knows, the OBR’s responsibilities are set out in legislation, and we do not have any plans to change them. I am glad that she mentions EFTA. A number of colleagues have raised EFTA with me. It would be important to have a further debate on EFTA if she would like to table one, because I would like to hear from colleagues what problems they believe that EFTA would solve in relation to our relations with the European Union, given that Swiss bilaterals have been ruled out and we are looking for our own bilateral relationships. We do not propose to join the European Economic Area, which would be a bad deal for the UK.