Parliamentary Scrutiny of Leaving the EU

Paul Farrelly Excerpts

Wednesday 12th October 2016 Commons Chamber

[Hilary Benn]

I think the House is grateful for that history lesson. I hope the right hon. Gentleman will forgive me if I do not take his advice either on some of the arguments that he has advanced in his speech this afternoon, although I respect the position that he has long held.

I support the calls from all parts of the House for proper scrutiny and accountability, especially given the scale of the task that we face, which was set out very clearly by my hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer). I am talking about the basis on which we will trigger article 50, continued access to European markets for our industries, future arrangements for immigration and maintaining co-operation with our European neighbours in areas where that co-operation has benefited both of us.

There are four things that we need to consider as we undertake that task. One is to minimise uncertainty—a word that we have heard a great deal of in this debate. The second is to be clear about the timing and the content of the negotiation. The third is to protect the things that we value that have come from Europe, and the fourth is to think creatively about how we build a new kind of relationship with Europe as we leave the institutions.

[Paul Farrelly (Newcastle-under-Lyme) (Lab)]

The Secretary of State said that he wanted to minimise uncertainty. He must reflect on that and give himself marks out of 10 on how he thinks he is doing at the moment. Let me take one example: the British Chambers of Commerce in Germany is hosting a conference here in Westminster tomorrow on the impact of Brexit on the City of London and the financial services sector. One issue preoccupying them is that of passporting. It is uncertainty on that issue that is already creating a situation in which bad decisions are being made on employment and investment in this country. Does my right hon. Friend agree that, in these crucial areas, the Government must address uncertainty?

[Hilary Benn]

I am grateful to my hon. Friend for that point. I shall come on to address it in a moment.

I was just going to say that some of the uncertainty is inevitable and will not be resolved until the negotiating process has been concluded, but some of it is the result of different things being said by different members of the Government—one has to acknowledge that—as well as the things that have been left unsaid, which may lead others to draw conclusions and then act on them in the absence of clarity.

The announcement by Nissan that it will not invest any more in this country without guarantees from the Government is indeed unwelcome, but it is entirely understandable. What car manufacturer—my hon. Friend the Member for Birmingham, Erdington (Jack Dromey) talked about Jaguar Land Rover—will invest in additional capacity if there is still some doubt that we might leave with no agreement on trade and tumble out on World Trade Organisation terms, which would lead to those cars facing a tariff? I accept that, in the end, we are likely to get an agreement in which there are no tariffs on manufactured goods, and, frankly, the sooner that that can be made clear, the better. There are those who argue that it would be perfectly possible within the two years provided by article 50 not only to negotiate the mechanics of our withdrawal—and that is quite a task—but to conclude a new trading agreement that will give access to the single market for our goods and our services, which have not been much talked about but my hon. Friend made the point that 80% of our economy depends on services. Those who argue that may be right, but I somehow doubt it.