Covid-19: Future UK-EU Relationship Debate

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Department: HM Treasury

Covid-19: Future UK-EU Relationship

Stephen Farry Excerpts
Wednesday 15th July 2020

(3 years, 9 months ago)

Commons Chamber
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Stephen Farry Portrait Stephen Farry (North Down) (Alliance)
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It is a pleasure to follow the hon. Member for Hyndburn (Sara Britcliffe), although I suspect that I will disagree fundamentally with most of what she said. I will support the motion this evening. The debate has largely focused on the Scotland-UK relationship—I take no formal position on that other than to wish the people of Scotland well and to respect whatever choice they make down the line—but the transition period affects the entire UK, and it certainly deeply affects Northern Ireland.

Brexit, of course, is a great disrupter to the UK and, indeed, to our situation in Northern Ireland. Northern Ireland only works on the basis of sharing and interdependence. The difficulty with Brexit is that it entails some degree of new divisions, barriers and friction, and that will create tension however those lines fall. Of course, the withdrawal agreement respects the principle of consent, and that will be an entirely different process, but none the less, it is important to acknowledge the challenges posed by Brexit to Northern Ireland’s future stability and operation. Northern Ireland did say no to Brexit, but once Brexit occurred, there was a need to protect the Good Friday agreement. The backstop was a better attempt at doing that, but the protocol is there as the next best alternative. However, it poses very significant challenges, and we are not ready yet for that to be properly implemented.

The Northern Ireland Assembly has voted on a majority basis to support an extension to Brexit. While we may be past the 30 June deadline, as others have said, there are options that still can be taken, and I am not entirely dismissing the possibility that the Government may see the light towards the end of the year—far too late when more instability has been caused, but given the current state of readiness, that may well be where we end up.

One year was always going to be challenging in the best of circumstances, but with covid, we have the worst of circumstances. We are already facing up to a very significant economic hit on the back of the covid pandemic. Indeed, the OECD is predicting that the UK economy will be one of the economies around the world that suffers the greatest, so there is a sense of madness that we are proceeding with a further shock from the disruption of Brexit at that time.

We are told that with Brexit and the end of the transition, the Government can be better placed to address covid, but that belies the fact that the European Union, in many respects, is doing better in addressing the situation with the pandemic and in the way that it will potentially recover, not least in terms of the scale of investment that comes forward. The UK, in particular, will suffer if there is no free trade agreement in place at the end of the year, and even with an agreement in place, there will still be challenges, because whatever way we cut it, the UK is stepping back from its closest and nearest market. Whatever trade deals are done around the rest of the world, they will not replace the loss that comes from stepping back from the European Union. There is not a contest between the internal market of the UK and the European Union market. Until now, the two were complementary. In the same way, the UK could go out and cut more trade deals with the rest of the world through the European Union. The term “global Britain”, I fear, is a bit of a misnomer and we are missing the point in that respect.

In closing, I will focus particularly on the lack of preparation. There are five and a half months to go. It is only now that the UK Government are releasing information on the GB-EU interface and, even then, there are many questions that still need to be answered on investment in IT and infrastructure, but that can be phased in. Northern Ireland does not have that degree of luxury. The protocol will be in place from 1 January, whatever way this falls. While some people may say, “Well, in the context of a no deal, Northern Ireland does have some degree of protection in that we still have access to the EU single market in terms of goods,” that does not apply to services. In particular, if we see a situation where there is no trade deal, tariffs will be charged down the Irish sea, and that will have major implications for the cost pressures for Northern Ireland businesses and households.

Five and a half months out, there are many questions still to be addressed for Northern Ireland on IT, infrastructure, staffing and what will be required from declarations and costs. All those are important issues and, at this stage, businesses have been left in the lurch without transparency around that crucial information. Every day that goes past, that uncertainty is damaging the economy of Northern Ireland, so for all those reasons, I urge the Government to reconsider their position on the transition. There is no shame in reconsidering because it makes sense for the UK economy. Let us get this done correctly.

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Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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Covid-19 has absolutely affected every walk of life. It is my belief that no person in this nation has been untouched by it, and the first words in the debate title are“covid-19”. There are those who grieve the loss of good people—upstanding members of our communities and families—and people we have been unable to grieve appropriately. As we move into a closer approximation of normal, that loss of life is felt more keenly.

I want to speak about covid-19, and then comment on where we—or rather I—stand. We have lost businesses and jobs. I have a big hospitality business in my area that is in the resort game. It has invested £150,000 of its money, and it is at a loss at the moment to find a way forward. I am very aware of its circumstances, which may be only the tip of the job loss iceberg. The action of the Government has prevented a crash for a great many business—that is true—but we will undoubtedly be fighting economically for many years to come; indeed, our grandchildren may feel the pinch in their working life if we do not get this right.

Just in my small office of six members of staff and myself, one member of staff lost her sister at the end of March to coronavirus. She was unable to bid her a final goodbye and is deeply hurting. Another member of staff was due to be married in Italy at the end of June, but she has seen her plans decimated and brought to nothing. Another staff member is originally from Australia but now lives in Northern Ireland. She heard sad news of her sister in Australia who is in an intensive care unit, but again she could not visit her family or speak to them. I have another staff member whose mother-in-law was diagnosed with terminal cancer, but again, they were not able to do anything about that. My parliamentary aide has two wee daughters, one of whom has uncontrolled asthma. She has been shielding for 16 weeks, and will be until the end of August.

I say those things because, as with my staff members and many others across this great nation, people’s quality of life and mental health has been massively affected by coronavirus. I say that to put a human aspect into this debate, and to underline what the cost has been to normal, everyday people. The negotiations that we are now doing must be carried out with less grandstanding, and by sorting these problems out.

I cannot create jobs out of nothing for those who have lost businesses. I do not have that ability, but this Government can, the Northern Ireland Assembly can, the Scottish Parliament can, and the Welsh Assembly can. I can, however, be part of the solution in this House when making decisions to promote employment, and ensure that the Government do their best for Northern Ireland. I cannot undo the mental trauma that has affected my nation, but I can be a positive force for a bright future, and that is what I wish to highlight today.

I am very fond of my Gaelic cousins on the SNP Benches, and I genuinely mean that in all honesty. However, I am so divorced from their point of view given what they have said—that is respectful to them all, and they know that—that this is one cousin who will not be voting for their proposal tonight. I do not want this to be a sniping opportunity to rehash the old “deal or no deal” arguments that we can all repeat in our sleep; I believe our role as MPs is to think sensibly and create hope, and having the same old arguments about the pros and cons of the European Union does not give hope for our future. Instead, constructive dialogue about a sensible way to carry out the wishes of the people is the way to do that.

In the 2016 referendum, my constituency of Strangford voted by 56% to 44% to leave—that is unlike the constituency of the hon. Gentleman the Member for North Down (Stephen Farry), where it was very marginal at 50.1%. That is all it was.

Jim Shannon Portrait Jim Shannon
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Can we take a moment to consider what we hope to achieve in today’s debate? My desire is simple: it is to say on behalf of Strangford, let us stop the tearing down and start the building up. Let us work for our agrifood sector—I look to the Government to ensure that happens—and for our fishing villages in Portavogie, Ardglass and Kilkeel. Let us put pride and confidence back into the fishing community, grow that economy, and create jobs. We can do that after Brexit. We can do that when we leave—I very much believe that in my heart, and boy do I look forward to that day.

Let us work together in this place to present a united front to Europe to say—possibly for the first time—that although we want the best for our country, that does not mean that the European Union has to be the loser. If we think and work sensibly together, and build up trading partnerships that are beneficial, we all can win—that is everybody; all regions together—and help our economies and constituents who have been ravaged by this unseen enemy. As my mother would say, today we should say, “Enough of the messing and more of the achieving!” Where there is a will there is a way. We should respect the will of our people, who made it very clear in June 2016. We must get the best possible future in place, with sensible dialogue and the end of senseless rhetoric. We all voted together in that referendum, and we voted to leave.

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Mark Fletcher Portrait Mark Fletcher
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It is an unusual experience to agree with a director general of the CBI, after so many years in which have disagreed with them, but in this instance it is a delight to agree.

However much I disagree with SNP Members on almost everything, I do at least give them credit for turning up. As I cast my eyes over the Opposition Benches, it is an unusual experience to see only the same number of Members on those Benches as there are in my fan club; they usually way outnumber me on that front. The Labour party has once again abandoned the pitch. Its Members have straddled for so long, trying to keep their true feelings on Brexit hidden. [Hon. Members: “They are hiding.”] They are indeed hiding. Here we are today with three hon. Members sat on the Labour Benches. I feel sorry for the hon. Member for Sheffield Central (Paul Blomfield), who is sitting at the Dispatch Box; I cannot help but feel he will have to summarise all the various Labour opinions that have been expressed today and make them seem like an eloquent argument.

Stephen Farry Portrait Stephen Farry
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For the record, I am just socially distancing; I am not part of the Labour party.

Mark Fletcher Portrait Mark Fletcher
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That may be my favourite intervention of the day so far.

The interesting thing is that the Labour party is desperately hoping we forget that its new leader was the architect of its previous policy. We have not forgotten. The people of Bolsover have not forgotten. We remember the stupendous ways that Labour Members weaved through the various ins and outs of Brexit to make it seem they were supportive, but not really—but then where did they end up? On the wrong side of the argument and on the wrong side of the last general election. I am one of many hon. Members speaking from the Government Benches today who would not be here without Labour’s help, so thank you very much for that.

The Opposition’s policy kind of resembles a well-known Swedish furniture store, in my opinion: the instructions from the unions are almost impossible to follow; the policy is taking forever to assemble; they are missing a few nuts and bolts; and there is a very clear pro-European design. Perhaps the Leader of the Opposition will be better known as Sir Ikea Starmer from now on. The right hon. and learned Gentleman is the architect of the situation we find ourselves in. At least his predecessor would always make sure that the Labour party put up a fight; the Labour party is not even doing that, now.

In conclusion, today is a wasted day. However nostalgic we feel, the Brexit argument is done: we will be leaving this year. Whether we have a deal or not is to be determined. The European Union needs to create greater flexibility in its negotiating stance—that is the biggest barrier that we have—and this Government need to get on with levelling up all parts of our country. They should start in Bolsover.