UK Parliament / Open data

European Union (Withdrawal) Bill

I did say that I was not going to give way to anyone, so I am not going to do it again.

New clause 22 would not decide on the substantive question of EEA membership, but it would guarantee that at a future moment the House could have its say. If we do not change the Bill accordingly, we will have sold the pass.

Mr Hoyle, if you think the democratic arguments for the new clause are strong, I can tell you that the economic arguments are even stronger. The Government seem finally to have listened to business and have accepted the need for some form of interim arrangement to fill the hiatus that will exist between the conclusion of the article 50 negotiations and the signing of any new UK-EU trade deal. They claim that they want trade to continue on the same practical terms as today, for a time-limited period, even though they envisage that we will have legally come out of the European Union. That is basically an extension of EU membership, but without political representation: no British Members of the European Parliament in May 2019 and no representation at the Council of Ministers—no influence. The Government claim that that will not be the same as our remaining in the single market and customs union, although to all intents and purposes, it will be.

Banks, car manufacturers, IT firms, chemical producers and pharmaceutical companies all need clarity about their ability to sell into the European market and the continued viability of pan-European supply chains. The Government are right to want to give them certainty for a two-year period post the conclusion of the article 50 negotiations, but those companies need more.

If we are not going to lose jobs and investment, businesses need to know what tariffs will and will not apply on exports, what checks will be conducted on goods at the border, and what overall regulatory regime will apply to them in the future—not just in 2020, but in 2022, 2025 and beyond. A fudge might cut it for a few years, but it will not last forever. As a country, we will face a fundamental choice: do we align ourselves with European standards, or do we deregulate and go for weaker American or Chinese ones? There is not some fantasy mid-Atlantic option out there that the Government can conjure up, which is why continued membership of the European economic area could be so important.

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In the EEA, we would have some influence—not as much as we have today, but more than we would have in a free-trade agreement with the EU. It is the simplest and most sure-fire option if we really do want to maintain the deep and special relationship that the Prime Minister constantly talks about. It is an obvious way to stay close to the EU while not being in it. It is the way we retain membership of the single market. It is potentially a way to remove ourselves from the jurisdiction of the European Court of Justice, but maintain our ability to trade easily with our closest neighbours.

However, such an option is a compromise—a compromise between the complicated, disruptive, risky, delusional Brexit that the Government seem intent on pursuing and the outcome that a majority of my constituents want: to stay in the EU. It is a compromise that, in my view, is sub-optimal to our present arrangements, but that would be better than losing all influence as the minor party in a free-trade agreement with our major export partner.

Yes, for some the option would be seen as a compromise on sovereignty, immigration and what we contribute as a country to aid the economic development of poorer parts of Europe, but it is better than the economic suicide pact to which this Government seem to be signing us up. Just because we may end up sacrificing political influence if we leave the EU, that does not mean that we should do irreparable damage to our economy at the same time.

As people who are elected to make decisions on behalf of our country, we have a responsibility to consider the option of staying in the European economic area thoroughly and transparently. I am fully aware that keeping us signed up to the EEA agreement is not in and of itself the whole answer, which is why I have also tabled new clause 23 to require Government to lay a report before Parliament within six months of this Act passing on the merits of joining EFTA.

None of this is easy, but the Government are currently tying themselves in knots. As the country’s elected representatives, we have a responsibility to hold on to the keys of the car to prevent this Government from driving us off a cliff. If we let this Bill pass unaided, we will be legislating ourselves out of the biggest question facing the country. That is why new clause 22 is so important and why I encourage Members to support it.

About this proceeding contribution

Reference

631 cc426-7 

Session

2017-19

Chamber / Committee

House of Commons chamber
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