Leaving the European Union

Matt Western Excerpts

Monday 22nd January 2018 Westminster Hall

[Paul Scully]

I thank my hon. Friend for making that point. I intend to talk about the need to be optimistic. Just looking around the Chamber, I know that those gathered here to participate in the debate differ in our opinions, but we must be united in being optimistic for our prospects, whatever deal we strike with the EU. We have to talk up our economy, because the best way of creating, fostering and building up uncertainty is to talk down our economy.

That is not to say that we should be arrogant. We need to move on from this stereotypical idea that we are some sort of post-colonial power, sweeping everyone before us; that is not what we are saying at all. What we are saying is that the arguments in the referendum essentially centred on three areas: first, sovereignty and taking control of our laws; secondly, migration and making a fairer immigration system that we could better manage and better control; and thirdly, our prosperity and trade. When we leave the EU, we will take the first two back into our control. We will have a fully accountable Parliament and we will decide the laws that we pass, even if we give away or decide to share some of the responsibility for the decisions we have to make with groups such as NATO, or in areas such as environmental collaboration with relevant institutions. None the less, we will choose to do those things, so they will all come down to the UK and the UK Parliament. The position on migration will be similar. Having had the clear steer from the Government that we are ending freedom of movement, we will choose to what extent we extend visas and invitations to people with the skills and the qualities that we need and want in this country.

The one thing we cannot do on our own is build up trade partnerships, because trading, by definition, needs two sides—someone to buy and someone to sell. We are looking outward and the Secretary of State for International Trade and President of the Board of Trade is doing a fantastic job of building up relationships with other countries; we should grab hold of the opportunities that Brexit and our ability to handle free trade agreements offer, but nobody is suggesting that will we just leave Europe, pull up the drawbridge and fail to trade with our closest partners, the 27 remaining member states of the European Union.

[Matt Western (Warwick and Leamington) (Lab)]

Does the hon. Gentleman agree that there is a responsibility for the public, industry and the Government to make the case that, if we were to crash out, the impact would be immediate in, for example, the car industry, which is a big factor in my constituency? Switching to World Trade Organisation rules immediately would lead to an increased tariff of 10% on that industry’s products, which would have a very damaging effect.

[Paul Scully]

I thank the hon. Gentleman for that question, but I challenge the language he used—“crash out”—as it goes back to what I was saying about a sense of optimism. We are right to plan for no deal, because it would be patently ridiculous if we did not have every avenue covered as we seek to build our relationships with the rest of the EU; but saying that we will “crash out” suggests that there will be no planning at all, and I just do not share the pessimism of that view. Regarding the car industry, the hon. Gentleman gives a strong argument for why we need to do a deal and why countries such as Germany, which sells 10% of its cars to us, would want to do a deal with us. We can set our tariffs as we see fit, whether that is 10% or not, if we leave without a deal, but then we would have to have an equal tariff with other countries, unless we have a free trade agreement with them.

--- Later in debate ---

[Paul Scully]

The hon. Gentleman was right in the first half of his intervention: there are undoubtedly competing priorities. However, that is not necessarily the same as the laws, rules and directives that come from the European Commission. The 27 member states, individually or in small groups, often feel disempowered by the moves from the centre, from Brussels.

On asking for more than we want, I do not think that the EU understands our negotiation style sometimes. I believe that if we had asked for more when we were trying to renegotiate many things before the referendum, including the emergency brake, we would have got some movement, and we would have voted to remain in the EU. Instead, we did not ask for enough, and we did not even get that. So in this negotiation, it is absolutely right that we are ambitious, that we ask for perhaps more than we want. That is why we need time. We might do a deal on the courtroom steps, perhaps even on the very last day, but we need to be prepared to walk away as well. There is absolutely no point in saying, “You know what? We’re happy to sign up to anything you ask us for,” because if we do they will offer us a deal that we can easily refuse and we will never get anywhere. If we end up staying in the EU in all but name, that will not be good for the country, for the division and uncertainty I spoke about earlier, or for the other 27 nations when they want—and they clearly do—to seek to reform the EU.

[Matt Western]

The hon. Gentleman is generous to give way again. I want to come back to the point that in talking about walking away, we are essentially talking about having no deal. It is crucial for many manufacturers in this country, as well as for other organisations and businesses, that they have some visibility or certainty that we will have a deal that is as close as possible to or as good as what we have today. It should be the responsibility of Government and all of us here to ensure that our businesses, our economy and our jobs are protected in the future.

[Paul Scully]

I totally agree with the hon. Gentleman about certainty. That was why I was explaining that we need to look at every area and sector, and every permutation and possibility. We talk about how we must do a deal—ideally, a bespoke deal that works for as many people as possible in the UK and the EU—but it may not be within our gift to do a deal. We talk about walking away, but if we do not sort out article 50 within the two years, we will walk away and no longer be members of the EU. That is what article 50 says and that is how it is.

People may talk in this debate, as they have in others, about whether article 50 is reversible. Now, I am not a lawyer but I am not too bad at grammar, and when I read article 50 I can see clearly that there is one way effectively to reverse it, and that is by getting the unanimous agreement of all the European countries to extend the deadline. That could be to something like 50 years—it could almost be like the lease on Hong Kong, with the issue pushed away to a time so far in the future that effectively we remain in the EU. Essentially, that is the only way.

--- Later in debate ---

[Paul Scully]

That exchange is interesting, but it is moot, because we are off. The point is whether we are off tomorrow, as the petitioners want, or whether we are off at the end of the two years under article 50.

I sum up my remarks by saying that I understand the petitioners’ frustration and why they want to leave now. We need to speak to them, but we also need to speak to the people, some of whom are here today, who want the future situation to be as close to the status quo as possible and for us to find a middle path. We can only do that with a sense of agreement, a sense of proportionality and a sense of optimism that wherever we go in the world, we will still be trading, partnering and collaborating with Europe. Environmental pollution does not stop in the channel. Terrorist threats do not stop in the channel. We will clearly need to collaborate with our European partners.

[Matt Western]

I thank the hon. Gentleman for giving way again. I totally concur with him and his summary, and I urge the Government to speak out to the audience who put forward the petition, because leaving now would have such an immediate and seismic effect on our industries, such as the car industry, which is already well down—14% down on 12 months ago. Leaving now would be absolutely catastrophic. The public need to be told just what the impact would be if we jumped out tomorrow.

[Paul Scully]

There is plenty of uncertainty that we need to get rid of. I do not have time to start attacking some of the #DespiteBrexit things that we might otherwise go into. Yes, we need to speak to both sides. My concern is that while people are feeling disaffected on one side, we have the extreme version on the other that wants to unpick the referendum, and that is not helpful. Not only will it not happen, but it is creating even more uncertainty, particularly for EU citizens. The rhetoric around EU citizens on social media is invariably from people who want to unpick the referendum saying, “See what has happened,” and jumping on the bandwagon of things that may or may not be covered in the press, rather than being from people creating some sort of division and making others feel unwelcome. We have to be careful with the language, be optimistic and talk up our economy.

We should have confidence that we will be a single nation dealing with our own free trade agreements. That will make this country the buccaneering, maritime trading nation that it can be. As someone who has run a small business for 25 years, I know the agility and nimbleness we can have. That will stand us in good stead, but the Minister has a challenge over the next few months, because it is not going to be easy. It will be a complex negotiation, and I wish her good luck. I know we are going to get a great deal. I am optimistic that we will get a bespoke deal that will work for everyone.