European Union (Notification of Withdrawal) Bill

Lord Oates Excerpts

Committee: 1st sitting (Hansard): House of Lords
Monday 27th February 2017 Lords Chamber

[Lord Blencathra]

My Lords, the last thing I heard about Norway was in the news last week. I believe that a Norwegian Minister, or former Minister, said, “Whatever you do, don’t join the EEA like we did. It was a terrible mistake”. I am not here to answer for Norway’s decision. I am here to support the decision of the British people—all 17.2 million of them. I was part of the leave campaign, a little junior cog, and after we were successful, some detailed studies were done. Contrary to the public view that everybody voted leave to stop or control immigration, the vast majority of people—72%—voted leave because they said that they wanted to get back control and sovereignty of their country. Only about 23% put immigration at the top of the list. Of course, admittedly, if you are taking back sovereignty and control and putting Parliament in charge, that means Parliament is in charge of immigration and a lot of other things as well. But let us not pretend that people voted leave purely because of immigration or because they wanted to stay in the single market.

I conclude with a comment that I made in my Second Reading speech, when I quoted my right honourable friend Sir Oliver Letwin MP, one of the Government’s foremost remain campaigners, and one of the then Prime Minister’s gurus when thinking about these things. He said in the other place on 31 January:

“I made it … clear … that … an inevitable consequence of leaving the EU would be leaving the single market”,


and leaving the customs union. He continued,

“it seems to me … that the people who voted to leave were voting with their eyes wide open, knowing that the consequence might be our falling back on the WTO”.—[Official Report, Commons, 31/01/17; col. 871.]

The Government made it clear at the time that leaving the EU meant leaving the single market. There is no excuse now to try to build in this amendment to thwart the decision of the British people.

[Lord Oates (LD)]

I support Amendment 4. I do so because what the Government are doing is beyond me with their extreme form of Brexit in taking us out of the single market. Why are they doing it? Above all, why are those on the Conservative Benches who supported remain allowing them to do it? It is true that there was an instruction from the British people that we should leave the European Union but there was not an instruction for us to leave the single market, however much the noble Lord, Lord Blencathra, might wish there was. That was for the very simple reason that, as the noble Lord, Lord Hain, pointed out, that matter was not on the ballot paper. The noble Lord, Lord Blencathra, and other noble Lords on the leave side of this argument can speculate as much as they want about the reasons people voted the way they did, and I can speculate as well. However, the truth is that none of us actually knows. All we know is the instruction that was given on 23 June. The referendum campaign did not help much. The campaign on either side, frankly, in terms of getting to the facts, was not terribly helpful. The noble Lord quoted a number of Conservative politicians. That is part of the problem. The referendum campaign was effectively a factional fight between two wings of the Conservative Party, which did very little to illuminate the facts but, tragically, a very great deal to divide and damage the country.

What we do know—however much those opposite may protest—is what all the mainstream parties promised the electorate at the time of the last general election. It was that we would stay in the single market. That was at a time when the referendum was likely. Indeed, it was a pledge in the manifesto of the Conservative Party. As the noble Lord, Lord Hain, also mentioned, the Conservative Party manifesto could not have been clearer. To avoid any ambiguity it emphasised its clarity. It said:

“We say: yes to the Single Market”.


There was no caveat in the way that people suggest, so it is unclear to me why the Prime Minister has decided—given that she has no other mandate on this matter than that manifesto—that she is saying no to the single market. I have heard the noble Lord, Lord Lamont, and other noble Lords, including some Ministers, argue that the unambiguous pledge in the Conservative manifesto was somehow trumped by the fact that there would be a referendum and the Government would respect the result. You can respect the result of the referendum and withdraw from the European Union without withdrawing from the single market. Deciding to leave the EU does not mean leaving the single market, however much noble Lords opposite would like it to do so.

As has been mentioned, a number of countries are members of the European single market but not members of the European Union. Norway, in particular, was mentioned by the noble Lord, Lord Hannay. Norway sought to negotiate joining the EU at the same time as us in the 1970s. In the end, it had a referendum and voted against but it became a member of the single market. We should be very clear that when Norwegian Ministers were saying it was not ideal, they were not saying, “Don’t be members of the single market”; they were saying, “For goodness’ sake, stay in the European Union”. To suggest otherwise is just nonsense.

It is clear that it is possible to be both outside the EU and inside the single market. The question, therefore, is whether it is desirable. In my very strong view, it is. We know that the issue in world trade increasingly is not tariffs but non-tariff barriers. As the IFS noted in its report on the single market published in August last year, the service sector is particularly important to our economy and to our tax receipts and is particularly vulnerable. The financial services sector is likely to be disproportionately hit by loss of the single market.

For many of us, the decision to leave the EU is a tragedy that goes far beyond economics but it is compounded by the Government’s decision to pursue extreme Brexit no matter the cost to our economy. We have the opportunity tonight to ask them to think again. We should take it.

[Lord Green of Deddington]

I can be extremely brief. I just want to take up one point that the noble Lord, Lord Hain, raised earlier. He acknowledged the significance of immigration to the result of the referendum. He did not say that it was the main reason but he acknowledged its significance. So it seems to me that a key question is whether we can stay in the single market and control immigration. He mentioned that other countries such as Belgium have found a way to control immigration within the single market by removing people without a job.

The situation in the UK is entirely different from that of Belgium. We have more than 2 million European citizens working here—which is fine, but we cannot skate over the fact that the whole situation is different. The numbers are much larger. Noble Lords may not know that last year 625,000 EU citizens took out national insurance numbers. They will not all be working; some will be short term. But the scale of it is enormous. We know that net EU migration is 180,000, equal almost to that from the rest of the world. There is no prospect of any serious measures of control if we remain in the single market.

--- Later in debate ---

[Lord Warner]

My Lords, we come at this late hour to an important group of amendments, which provide for greater parliamentary oversight of the withdrawal negotiations. I support all these amendments but I will contain my remarks to Amendment 8 in my name and that of the noble Lord, Lord Oates.

As I hope I have made clear already, I am not seeking to delay the start of the negotiations but I believe strongly that there must be statutory provision for much greater parliamentary oversight of the negotiations before we reach the end game than the Government have so far been willing to accept. Amendment 8, rather kindly, lets the Government get on with the negotiations after Article 50 is triggered for about half the two-year period provided for in Article 50. That is in part because I am not convinced from what I have seen from both the EU’s and the Government’s likely approaches that much will be settled that quickly.

However, as we approach—if I may put it this way—the half-time period in this game, I suspect there will be more goalmouth scrambles and possibly even a goal, but I am less than sure of the net. Some time after nine months and before 12 months from the triggering of Article 50, this amendment requires the Prime Minister to lay before both Houses of Parliament for their approval a progress report on the withdrawal negotiations. It specifies four key areas that must be covered in the report: future trading relationships for the major UK industries and sectors; future arrangements for the movement of EU and UK citizens between each other’s territories; the cost and make-up of the exit charge to be paid by the UK; and the likely implications for the devolved Administrations. The amendment enables the Prime Minister to add to the report any other aspects of the negotiations she wishes and to decide when within the three-month period she reports to Parliament. But return she must and secure Parliament’s approval of the progress that has been made—or not, as the case may be.

The reason for this amendment is the deep scepticism many of us have about the capacity of the Government to secure a satisfactory outcome from these negotiations that serves the best interests of the UK. As I said on Amendment 3, there are widespread concerns about the Government’s approach to the negotiations, even among those who voted to leave on 23 June. Some of those people are saying to me and to others that they would not have voted to leave if they had realised how the Government were going to go about the withdrawal negotiations, particularly the withdrawal from the single market and the customs union. Announcing that decision up front has only increased those anxieties and concerns and made people wonder what other mischief the Government will get up to in the negotiations.

I believe that there are big question marks over the quality and quantity of the UK’s negotiating capacity. If I may say so, there has been a great deal of swagger and bravado from Ministers and their parliamentary supporters about the strength of their hand and how much the EU needs the UK, together with the glittering array of trading opportunities that await us once we are out of the EU. I have not noticed that optimism being shared by many of the expert trade or EU negotiators. Most of the stories that have appeared have been about the lack of Whitehall’s preparedness for the leave negotiations and the shortage of skilled negotiators available to the Government. There is no crack negotiating team just waiting to be helicoptered over the English Channel in the best traditions of the SAS.

We should be extremely cautious about allowing the Government to effectively bypass Parliament on these negotiations until it is too late to do much about an unsatisfactory outcome other than reject the deal. That is why, when we come to it, Amendment 17 on parliamentary approval of the outcome of the negotiations will be so important, and I shall certainly support it.

However, I suggest that it is not sufficient to rely simply on Amendment 17, important though it is. Parliament needs to be more clearly and statutorily involved in the withdrawal negotiations at a much earlier stage and to be able to sound warning bells if things seem to be going seriously off piste. That is why I hope something like Amendments 8 or 18 will be agreed before the Bill leaves this House. I am not a proud author. If Amendment 18 is liked more, I shall be happy to support it.

I suggest that if I were in the Prime Minister’s shoes—although perhaps that is not a very good metaphor—I would be secretly pleased that a load of parliamentarians were overseeing these negotiations and some of the likely deals that might have to emerge at some stage before the end game. I suggest that that would give her a bit more political cover if things were going a little awry and were not where she wanted them to be. Therefore, I think that this is a helpful amendment for the Government and I hope the Minister will consider it carefully. I beg to move.

[Lord Oates]

My Lords, given the late hour, I shall speak briefly in support of the noble Lord, Lord Warner, and the amendment he has just moved. Many of us have been deeply shocked by the approach that the Government have chosen to take post the referendum. Clearly, none of us in this part of the House was happy with the referendum result, but some of us thought that with a new Government we had a grown-up as a Prime Minister and that the approach taken would be sensible, measured and thoughtful. However, I am afraid that since 23 June the evidence has been absolutely in the opposite direction. Therefore, it is particularly important that Parliament has a proper role in this matter.

The noble Lord, Lord Warner, has set out some of the key points of the amendment relating to our trading relationships, the movement of citizens, the potential exit charge and the implications for the devolved Administrations. The Minister, the noble Lord, Lord Bridges, has said a number of times, including recently, that the Bill is not the place to constrain the Government’s negotiating position, but I think many of us here want to ensure that Parliament has a role in constraining because we are so alarmed at what has taken place since 23 June. I am afraid that scepticism has been caused by the Government’s actions, and they have only themselves to blame for that. I think the Government, Parliament and the whole process would benefit from proper information being provided to Parliament so that we can assess this process as it goes on and do not just get to a cliff edge at the end, finding the catastrophic position that some people outlined in earlier debates. On that basis, I strongly support the amendment moved by the noble Lord, Lord Warner.

[Baroness Jones of Moulsecoomb]

I support Amendment 18. All these negotiations are going to be complex and long and for the Government to expect a respite from parliamentary scrutiny would be quite wrong. If we have a commentary it will also raise the likelihood of Parliament accepting the outcome, because there is nothing worse than something being sprung on you. My noble—I was going to say my noble enemy, but my noble opponent—the noble Viscount, Lord Ridley, said earlier that the leavers had actually come round to the thought that if we lost the referendum, we would accept the result, and I think that that is partly because we talked through those things, we actually thought about it. It will be true for the EU negotiations as well that if the Government give as much information as they possibly can then the whole nation is more likely to accept what has happened.