European Union (Withdrawal) Act

Debate between John McDonnell and Neil O'Brien

Monday 14th January 2019 Commons Chamber

[John McDonnell]

I will come on to that.

We believe that this is a bad deal because of the advice we have been getting. Some of that advice came from the cross-party Exiting the European Union Committee, which unanimously warned that the deal

“fails to offer sufficient clarity or certainty about the future.”

I quoted Mervyn King in the debate a month ago. Let me remind Members of what Mervyn King, a former Governor of the Bank of England, said. He described the withdrawal agreement as incompetence of the highest order.

The result of that incompetence is that jobs are being lost and livelihoods are already being threatened. As has been mentioned, Jaguar Land Rover, citing factors including uncertainty around Brexit, has announced 4,500 job cuts. Ford is planning to cut 1,000 jobs in Bridgend. Honda will stop production at its Swindon plant for six days in April. Government Ministers are fully aware of the consequences of their actions. We recently debated the Government’s own analysis of something approximating to the Prime Minister’s proposals. The Government themselves admitted, as has been mentioned, that the economy would be 3.9% smaller as a result of us agreeing to this deal. To put that in context, that is a cost of over £80 billion. In the long term, the damage is even greater. The Government analysis also estimated that the impact of trade barriers alone could mean an average drop in wages of 3%—£800 a year in today’s terms.

I believe that this House will not vote for a deal that damages so badly the living standards of our constituents. We must also be aware of the political damage that would be caused by forcing through an agreement that clearly does not have the support of the people of this country and that contains a backstop which, in the words of the Attorney General,

“would endure indefinitely until a superseding agreement took its place, in whole or in part, as set out therein. Further, the Withdrawal Agreement cannot provide a legal means of compelling the EU to conclude such an agreement.”

None of that has been changed by what the right hon. Member for Belfast North (Nigel Dodds) described earlier today as “meaningless letters”.

Let me be clear what Labour is proposing. Our negotiating priorities would differ from this Government’s. We would prioritise a permanent and comprehensive customs union with a say in future trade deals. We would deliver a strong, collaborative relationship with the single market, and we would guarantee that the UK does not fall behind the EU in rights for workers, consumers and the environment. Tomorrow it will be clear that the Government’s deal does not have the confidence of the House, and that a new approach is needed.

[Neil O’Brien]

The former head of the European Council’s legal service, responding to the shadow International Trade Secretary’s call for a customs union in which the UK would have a say, has said:

“Obviously this is ruled out. It is contrary to the basic EU principle of autonomy of decision making. Don’t even think about it!”

Does the right hon. Gentleman think he knows better?

[John McDonnell]

The hon. Gentleman clearly has not been listening. My hon. Friend the Member for Brent North (Barry Gardiner) explained how we would, as a third country, be able to negotiate a deal that would give us that say. [Interruption.] If Government Members doubt that, they should give us the opportunity to start the negotiations.

Tomorrow this deal will go down, and it is now time to put the mistakes of the past two years behind us and clear away the debris of this deal and the Government’s failed negotiations. It is clear that, to break the deadlock and deliver a clear mandate for a new approach, we need a general election. It is time to let the people have their say.

If that is not achievable, this House will need to work together to secure the best compromise to protect our country, and the Executive need to recognise that Parliament must rule on this matter, not the Executive. At that stage, Members may want to confirm that new deal with the people in a public vote. People will be looking to us to judge whether we have the maturity, good sense and commitment to our country and the national interest to secure a deal that protects jobs and the economy. I believe we can live up to that, and we must.

Budget Resolutions

Debate between John McDonnell and Neil O'Brien

Tuesday 30th October 2018 Commons Chamber

[John McDonnell]

My hon. Friend has got it exactly.

It takes something, does it not, to have headteachers marching on Downing Street? That has never been seen before. Just what did yesterday’s Budget do to tempt teachers back? What the Chancellor offered was “little extras”. It was an insult, especially when 60% of teachers are not getting a pay rise this year.

There are now 4 million children living in poverty, 500 children’s centres have closed, 500 children’s playgrounds have closed and 128,000 children are living in temporary accommodation. When children’s social care faces a funding gap of £3 billion by 2025, what did the Chancellor offer? Just £84 million for just 20 councils. That will not even scratch the surface of the problem.

[Neil O'Brien (Harborough) (Con)]

rose—

[John McDonnell]

No.

We have a record number of children coming into care. I know what coming into care means for a child: they are scarred for life. Why are they coming into care? Because there has been a 40% cut in funding to councils for early intervention to support families. Let the Government justify that.

On young people, the YMCA reports that spending on youth services has fallen by 62% since 2010. The average graduate comes out of university with a £50,000 debt. The IFS describes home ownership among young people as having collapsed completely. Tragically, with the mounting pressure, a decades-long decline in suicide among men has been reversed since 2010.

--- Later in debate ---

[John McDonnell]

I understand the hon. Member for Croydon South (Chris Philp); he gets excited at times, but as someone who has been excited myself at times, I completely understand.

The Government have been repeatedly forced by the courts to change how they are treating disabled people. They do not seem to have learned their lesson yet, so yesterday we saw no restoration of disability premiums, no end to the cruel social security freeze, and no end to dehumanising and unreliable work capability assessments.

The Government are also putting the livelihoods of future generations at risk. A few weeks ago the world’s leading authority on climate change said that avoiding dangerous climate change would require “rapid, far-reaching and unprecedented” action. What did we get yesterday? We got no mention of climate change, no reversal of cuts to renewable energy, and no significant environmental policy.

[Neil O'Brien]

I am curious: the other day the Government voted through a £650 million scheme to improve energy efficiency and home insulation; why did the Labour party vote against it?

[John McDonnell]

Because it was not on a scale that would have had sufficient impact. I welcome interventions, but I think we should have a rule that when Members intervene they should describe their background, in this case as advisor to George Osborne, who cut back on the solar energy industry, who undermined wind power in this country, and who set us back so that we will never meet our climate change targets.

The impact—[Interruption.] Calm down, calm down—George Osborne used to say that to me, and I said “I’ll calm down when you resign,” and he did. The impact on the self-employed and small businesses has been equally stark. Some 51,000 high street stores closed last year. Wages for the self-employed have collapsed to around the same level as 20 years ago.