29/06/2016 House of Commons


29/06/2016

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Scotland is also keeping an eye on the situation and I am happy to

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arrange a meeting between him and the honourable gentleman to talk

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about what more can be done. I would like to make a statement on

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yesterday's European Council. This is the first bid since we decided to

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leave the European Union. We wanted to ensure how we could have a strong

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union. Let me touch on the other items in the agenda. The council

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noted the very significant reductions in the legal crossings

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from Turkey to Greece, as a result of the agreements from Turkey to

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March. There is a determination to combat people smuggling from Libya.

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Britain continues to play a leading role with HMS enterprise and I can

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tell the house today that the house they will also be deployed to stop

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the weapons going to terrorists. There was a presentation ahead of

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the Warsaw Summit and they stress the importance of having to work

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together with EU. EU residents will be able to travel with digital

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content they purchased or subscribe to at home. The president of the

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European Central Bank gave a presentation on the outcome of a

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referendum. Private sector forecasts discussed included estimates of the

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growth of the Eurozone between 0.3% at .5% of the next few years. One of

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the reasons is the predicted slowdown of the British economy. We

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were assured that they had been working with the banks for many

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months to prepare for uncertainty. Our research oceans will continue to

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monitor markets and act as necessary. -- institutions. The tone

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of the meeting was one of sadness and regret but there was a decision

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that the British people should be respected and we had positive

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discussions about the relationship we wanted to see between our

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parliaments. We talked a bit about the timing of triggering article 15.

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While Britain is leaving the European Union, we are not turning

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our backs on Europe and they are not turning their backs on us. Many of

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my counterparts talked warmly about the history between our union. The

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result about how the Royal Navy helped secure countries long ago.

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Many of the countries of eastern and central Europe express the debts

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they feel to Britain for standing by them when they were suffering under

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communism, and for supporting them as they joined the European Union.

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Another president at the movingly about the desert he and I will be

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making later this week to the battle of the Somme -- the visit. The

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defence of the democracy and values that we share. The council was clear

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that as we take forward this agenda Britain leaving the EU, which are

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rightly wants to have the closest possible relationship we can in the

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future. This should include the strongest possible relationship

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between trains and cooperation, something that becomes more

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important in light of these terrible terrorist attack last night. As we

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and women the will of the British people, we also have the

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responsibility to bring the country together. We will not tolerate hate

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crime of anyone in our country because of their ethnic origin. I

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reassured European leaders who are concerned about what was happening

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in Britain. We are a proud multiethnic society and we will stay

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that way. Turning to the next apps on leaving the EU, there was a lot

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of reassurance that until we leave, we are a full member, entitled to

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all the benefits from being a member. I explained that in Britain

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there was great concern about the movement of people and the

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challenges of controlling immigration, as well as concerns

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about the issue of sovereignty. I explained how these had come

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together. In turn, many of our European partners were clear that it

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is impossible to have all the benefits of membership about some of

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the costs. That is something that the next Prime Minister and the

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Cabinet will have to work through very carefully. On the timing of

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article 50, there wasn't a great clamour for Britain to trigger this

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straightaway. They were one or two voices calling for this, but the

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overwhelming view of my fellow leaders was that we needed to take

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some time to get this right. Everybody wants to see a clear

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blueprint in terms of what Britain thinks is right for the future of

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the EU. As I explained in my statement on Monday, we are starting

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this which will continue with a new secretary. Four. This will be

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examined in a neutral way, setting out the costs and benefits. We will

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examine exactly the right approach to take. The decisions that follow

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from this are for the next Prime Minister. I don't think it is a

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secret because Bill that I have at times found discussions in Brussels

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frustrating. But we have had real growth. We have had sanctioned to

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stop Iran getting a nuclear weapons, we have galvanised other countries

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to take a lead on issues in Sierra Leone. We have shown how much we

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have in common with other leaders in EU. It is a poignant reminder that

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where we will be leaving the European Union, we were must

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continue to work together for the generations to come. I commend this

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statement to the house. I would like to thank the Prime Minister for an

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advance copy of the statement. As he took part in what I assume will be

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the last ever UK Summit, I was pleased that you check a more

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consolatory tone than Nigel Farage did in the European Parliament

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yesterday. As we negotiate our exit, the British people are relying on

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the Government leading as positive a transition as possible. If we are to

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achieve this, we must proceed in a constructive manner. I look forward

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to joining the Prime Minister in the commemoration of the Somme on

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Friday. He was right to secure support to tackle the bullock prices

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in Sierra Leone, and the other issues you mentioned -- Ebola.

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European leaders would have to offer the UK more control over

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immigration. The threat of losing access to the single market means we

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are already seeing a negative effect on businesses in this country. On

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Monday, the prime ministers that access to the single market without

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accepting free movement was impossible. Does the prime Minster

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now believe that Britain can negotiate an unprecedented deal? Can

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he also spell out a little more clearly than his statement what

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further discussions were held in this area? This is an issue in which

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there needs to be an open debate that absolutely failed to

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materialise during much of the referendum campaign. The Prime

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Minister stated in the house on Monday that article 50 will not be

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triggered until a successor is in place. I heard what he just said

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about the views of other leaders at the summit. When does he expect

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article 52 actually be triggered so we will know what the negotiating

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timetable is? As I raise in my response to the Prime Minister on

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Monday, we in the house have a duty to act in the national interest,

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ensure we get the best agreement for all our constituents. Does the

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permanence of the other without these structures in place in the

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house to debate the alternatives, there is a risk of leaving Britain

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in a state of the relatives in a time when people need clear answers

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to their concerns? -- state of paralysis. We have seen today the

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First Minister of Scotland creating her own separately go shooting group

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and starting talks with the EU. It appears the Minister of Gibraltar is

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doing the same also. -- negotiating group. What has the Prime Minister

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done in this area, legal advice and overseas territory? I welcome his

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commitments to the HMS enterprise in operation Sevilla. Last week's vote

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to leave the EU means this country is in an unstable position. The next

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steps we take must be taken with care as they are very important. We

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have a duty to be shaped and rebuild an economy for the future, one that

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protects social and economic rights and build policies on trade and

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investment, delivers a country in which prosperity we create is shared

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by all. Therefore, I urge the Prime Minister and whoever his successor

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may be that what our economy needs now is a clear plan for investment.

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Not further austerity and cuts to public services. That was put

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forward by the Chancellor again yesterday.

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At Birch home to look at the suspension and even termination of

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his counter-productive fiscal rules. -- I urge the Prime Minister. I

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thank him for his condemnation of racist attacks and I join him in

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that. We all need to calm our language and tone and condemn the

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rise of racism. Will he also reiterate absolutely his assurance

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to EU nationals working here, providing support in the health

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services and other sectors they are welcome and remain welcome for their

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work and contribution. Our country is divided. We must heal that the

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vision. Our economy is fragile so we must rebuild it. I duty is to move

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forward in a calm and conciliatory manner to build a new relationship

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with Europe and build a Britain that works for everyone in every part of

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this country. But we thank the right honourable

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gentlemen for his response. I -- let me thank. Constructive is the

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correct word. I was pleased the discussions of last night did not

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get off to a tour of EU countries demanding this set of actions and

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Britain arguing for or another. There was a material and calm

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understanding that we need each other and this negotiation must

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proceed well. -- immature and calm. It got off on the right foods and I

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will do everything I can, -- it was mature. I will do everything we can

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to make sure we keep those strong relationships with our partners. On

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the issue of immigration versus single market. He is right, this is

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the biggest and most difficult issue to deal with. Whether you are in the

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EU, as we have been, or out of the EU trying to secure the best

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possible access to the single market, my answer was to bring in

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the welfare restrictions I negotiated, which were incredibly

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tough to negotiate. I am sad they have fallen away because of the

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referendum decision. The next Government will have to work hard at

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this and I believe access to the single market and the strength of

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our economy is the most single most important issue to deal with. On

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article 50, it is a matter for the next Prime Minister and there is a

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good reason for that which is why before you go into the title of the

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negotiations and that to your time limit you want to have made the best

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possible preparations for what you want to achieve at the end. It will

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help both Britain and the other EU countries to understand what it is

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we're aiming for. They said not without notification but I do not

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believe that excludes discussions the new Prime Minister can have a

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partners so we continue to get off on the right foot so that is the

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strong advice I would give to them. In terms of the devolved

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institutions, I had discussions with the First Minister of Scotland and

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Wales and Deputy First Minister in Northern Ireland and will continue

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to do so. I want their voices to be heard. In terms of legal advice,

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what I have seen is this is a UK decision made by the UK Government

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and UK Parliament. It has to be done in that way. And what he said an

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racism, I agree. To EU nationals here we should thank them for their

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contributions and guarantee the right while we remain within the EU.

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I am sure all contenders in the Conservative leadership campaign

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will want to make clear they want to safeguard the rights of people who

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work and study here from the EU for the future but that will be a matter

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for them. Finally, what he says was suspending the fiscal rule. It feels

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a bit like a broken record. Whatever the question the answer always seem

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to be more spending, more borrowing and more debt. You don't get

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investment on less you have economic stability and you don't have

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economic stability unless you have a plan for dealing with your debt and

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deficit. This has been proved the world over, including some of his

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favourite countries like Venezuela and I would argue not to run down

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that route. My right honourable friend refer to

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trade and cooperation with the EU and we have always argued that from

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the leave side. With my right honourable friend have further

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advice because he is talking about a very precise blueprints and also

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talking about alternative models. Will he give us the shootings that

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any such models will be exclusively breast -- any such models will be

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based on the idea we are leaving the EU? That is the case. The

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reassurance I give them is not that there are only four or five

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blueprints and we must follow one of them. We can try and amend

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blueprints and have low weight loss, for example. That Norway. There are

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some quite fundamental questions about whether you want full access

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to the single market and the price you might have to pay for that

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whether you are satisfied to have less than full access and therefore

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have other compensating advantages. We must go through all of that and

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the more we can patch facts and figures the more people can make an

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informed choice. -- we can attach. Since the Prime Minister has

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returned from Brussels, for the first time in 40 years member states

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are still there and discussing the future of Europe. Well the Prime

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Minister is not in Brussels Scotland 's First Minister Nicola Sturgeon is

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and she has gone there to protect Scotland's interests in Europe and

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preserve our place in Europe. She met with the president of the

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European Commission and president of the European Parliament and also

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meeting with one of the key European negotiators on Brexit, the former

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Prime Minister of Belgium. The First Minister has also spoken to

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diplomats from other EU member states. She is doing this with a

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mandate from the Scottish Parliament, including the Labour

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Party, Liberal Democrat and Scottish Green Party. An expert group has

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been established to advise on protecting our place in Europe

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including eminent diplomats, economists and constitutional

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experts. This includes the former British branch in the EU Court of

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Justice, former British ambassador to Nato, former economic adviser to

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the EU Commission and former permanent undersecretary at the

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Foreign Commonwealth Office and head of the UK diplomatic service.

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All of us need to work to explore ways to protect Scotland's

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relationship with the EU. Our place in the single market and the social

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employment and economic benefits that come from that. May I ask the

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Prime Minister whether the Prime Minister raised this at the Council

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of ministers? Did he even raise Scotland at the Council of

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ministers? Did he say Scotland wants to stay in the EU? Did he say that

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Gibraltar wants to stay within the EU? BBC London wants to protect its

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important position in Europe. -- did he say London? When will we get some

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leadership from the UK Government will he stand by and watch England

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leave the EU and England declare independence from the rest of the

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United Kingdom? There is a meeting of the 27 other

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members of the EU this morning and that was always good to happen if we

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were going to make the decision to leave because as we must prepare our

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negotiating position they will want to do the same. The good thing about

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the conversation last night is it got off on a very fair and

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constructive basis. What I would say to the right honourable gentlemen is

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I am glad the First Minister of Scotland is having these meetings as

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it is always useful to meet and talk with our European counterparts but

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the best way we can secure the best possible access for Scotland into

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the single market is for the UK to negotiate as hard as it can as one.

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The answer specific questions about how I talk about Scotland the other

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night, I did. I thought, this Parliament. The way we manage the

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meeting was with the EQ on what happened in this house as I set out

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what I thought the result of the election was and why. I set out why

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I believe the UK's aims would be and how different parts of the UK voters

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and all 27 other members spoke, many ask questions and at the end of the

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dinner I answered all those questions, as I do in this house, as

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fully as I could. A little bit of British parliamentary practice was

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introduced and I think it is a good way of doing things.

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Is very good for the European Council as well! Did I write

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honourable friend reiterate to the EU Council that we do not have a

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federal structure in the UK, we did not vote as different countries, but

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as British citizens each with an equal weight. Decisions must be

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taken by the United Kingdom Government and nobody else. Does he

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also accept that such was the importance of free movement of

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people in the referendum that any future deal reached with the

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European partners that does include free movement would be regarded as a

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betrayal by millions of people who voted to leave? I did emphasise that

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it is a EU decision, but they will want to listen very carefully to

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their various ministers and parliaments. As to this issue of

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free movement of people, that'll be for the next prime miniature and

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Government and parliament to decide, but I am in no doubt that this is

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the difficult issue. Frankly, it is a difficult issue inside the EU,

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where you have all the negotiations to try and change things. It will be

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even more difficult from outside if you want a free access to the

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market. But I was very clear to them that that was my reading of the

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referendum result, the combined issues of control and sovereignty

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over free movement of people. I said I was very sad about the result, but

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the economic case were staying in was very strong, but if we want to

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make it work, we have to listen to people and try and find a way

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through this. I think the -- thank the Prime Minister for his

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statement. I wonder if he is aware of a growing mood among heads of

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Government across the European Union. Several ministers that I

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spoke to yesterday said that given that three quarters of the young

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people voted to remain in Europe, they should be permitted as much as

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possible to remain in Europe, and what can be done to make sure that

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they are allowed access to Europe up the Michael Brad above the rest of

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us. Is he aware of the concerns who depend -- of those who depend on

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payments from the EU. Can he make a guarantee today that British farmers

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will continue to have direct payments to keep them in business as

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from the U. On young people, I think he is right. People want those

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opportunities to study and we will need to work out the precise nature

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of the agreements, and what access we can have two them from outside of

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the European Union. On the issue of funding, the European budget is set

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at between 2014 and 2020, including the amount of money that goes to our

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farmers. While we are in, those payments will continue and contracts

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will be honoured, but it will be for a future Government to work out what

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payments we should continue to make to our farmers. If it was me, I am

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keen to have a living and working countryside, but a future payments

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will have to decide. Does the Prime Minister agree with the unanimously

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taken view of the Foreign Affairs Committee, that the construction of

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Article 50 means that it is perfectly likely that they will be

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no agreement on the other side of the negotiations requiring queue and

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the of our partners at the end of the two years, and that that would

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mean that we would still have access to the single market, but would be

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subject to world trade organisation favoured terms, and since I would

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mean there be no free movement of people and we would not be paying

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into a budget, that would represent a perfectly sound bottom line for

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the United Kingdom in the negotiations? Could the Prime

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Minister... It is likely that other advances would be made on that

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before we arrive at a deeper and compounds of trade agreement, could

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the Prime Minister also just tell us about the fate of the British

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presidency next year. We will study a full member, will be take up our

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responsibilities? We will be hearing from him very regularly, but he will

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have to be briefer than that. I did look at the foreign affairs select

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committee report. While I am not fully liberated to say what I think,

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I thought the conclusions were... Le I was thinking of it plays new to

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Dagenham, but I won't go into that. If we leave the U, the tariffs are

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something like 12% on clothes, 15% on cars, this is not a good outcome

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for the United Kingdom. We will look at the foreign affairs select

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committee as we get this unit up and running and look at all the Tanaiste

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is -- alternatives, but I do not think that is a good outcome from

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the United Kingdom. May I thank the Prime Minister Britain service to

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the country, for his support for Northern Ireland and the Northern

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Ireland executive through very difficult times, and also support

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for the United Kingdom. I wish him all the best for the future. On the

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issue of the summit, can you spell out again, not least to reassure our

:26:21.:26:24.

European partners in Central and Eastern Europe, our commitment to

:26:25.:26:29.

Nato, and that our European partners who are now speaking somewhat ill of

:26:30.:26:32.

our decision last Thursday, should be reminded that the UK is one of

:26:33.:26:38.

the main contributors to Nato, is a firm supporter of defence and

:26:39.:26:43.

security, and that they should play a greater role in stepping up to

:26:44.:26:47.

contributing to European defence, along with the Americans and

:26:48.:26:51.

ourselves. In love this, the wider perspective needs to be at. EU is

:26:52.:27:01.

important, but Nato needs to be borne in mind very strongly,

:27:02.:27:06.

especially with regards to Russia. He is right that our commitment to

:27:07.:27:11.

Nato continues. I think he is also right that our spending being 2% of

:27:12.:27:15.

our national output is now responsible for a very large share

:27:16.:27:19.

of the overall European commitment, and we should be encouraging others

:27:20.:27:24.

to increase their spending. We need to make sure that our membership of

:27:25.:27:28.

Nato continues and we are not disadvantaged by being in one and

:27:29.:27:34.

out of the other. My right honourable and consistently made the

:27:35.:27:39.

case for British car workers. He made his last appeal to the country

:27:40.:27:43.

from Birmingham, which was much appreciated. Would he agree that

:27:44.:27:53.

rich the key to protecting the hundreds of thousands of jobs are in

:27:54.:28:02.

that market. Anyone who thinks that there isn't something of a

:28:03.:28:08.

manufacturing renaissance in Britain should go to that Jaguar plant.

:28:09.:28:15.

There are now 14,000 people there, a big rise, it is not just any factual

:28:16.:28:20.

and assembly, it is everything. They are on hundreds of apprentices every

:28:21.:28:27.

year, it is a magnificent car plant and it is something we want to see

:28:28.:28:32.

more of. I think it is crucial to companies like bad that we keep the

:28:33.:28:39.

European market open. That is always an alternative for them and I think

:28:40.:28:44.

that draws into sharp relief the importance of maintaining a strong

:28:45.:28:50.

access to the single market. There is obviously a different between

:28:51.:28:54.

future free movement reform and the position of existing residents. The

:28:55.:28:57.

Prime Minister said earlier that we could not confirm residency or

:28:58.:29:01.

employment rights for it EU citizens who live here already, until the

:29:02.:29:07.

negotiations are underway. Why? This is being exploited by off all go

:29:08.:29:13.

home campaigns or repatriation campaigns, surely we should take a

:29:14.:29:19.

firm stand against those and pass some swift motion Dorel legislations

:29:20.:29:22.

or a new immigration rules in this House before the summary says, to

:29:23.:29:26.

put an end to that regulation, provide reassurance to EU citizens

:29:27.:29:32.

who may have worked here for very many years. I urge you to consider

:29:33.:29:36.

theirs, because I think that the sake of community cohesion, this

:29:37.:29:43.

would be wise. We will look very carefully at this. I have tried to

:29:44.:29:48.

answer this as accurately and legally as I can, because as we go

:29:49.:29:52.

into the figures shisha and, if we come out of it -- future

:29:53.:30:02.

negotiation, arguing on figures or work permits for nationals to come

:30:03.:30:08.

here, other countries might take reciprocal action against British

:30:09.:30:13.

citizens trying to live and work elsewhere. Even if that were to

:30:14.:30:18.

happen, I think the answer would be to ensure the status of anybody here

:30:19.:30:23.

now, and we can say that while we are in the European Union, but I

:30:24.:30:26.

think it is for a future Prime Minister to make that decision. I

:30:27.:30:32.

readily understand that negotiations are going to be long on economic

:30:33.:30:38.

issues, but the last few years have seen a big improvement in terms of

:30:39.:30:42.

our cooperation on matters of security, both those formal and

:30:43.:30:48.

informal meetings. I can see that that should be much of a wait and

:30:49.:30:57.

negotiations peace. Surely it makes sense to make sure that those

:30:58.:31:02.

meetings continue, both in terms of dealing with terrorism, but also

:31:03.:31:07.

dealing with economic crime. I think my honourable friend puts it well.

:31:08.:31:14.

The counterterrorism group of countries, mostly European Union

:31:15.:31:22.

countries, this is a group that is meeting, but there are also a number

:31:23.:31:29.

of growing mechanisms within the EU, the watch lists for people

:31:30.:31:33.

travelling between European countries, some of which are bound

:31:34.:31:39.

up very much in EU laws, but people can make that or not, but they

:31:40.:31:44.

exist. We need to work on maintaining access to as much of

:31:45.:31:50.

that as possible in terms of national security. Could the Prime

:31:51.:31:53.

Minister explained to the millions of people who voted to leave, why we

:31:54.:31:58.

await a new Prime Minister in the next few months? All the

:31:59.:32:06.

professionals start talking and negotiating informally perhaps with

:32:07.:32:11.

Canada, Australia, Malaysia with all those other countries who would be

:32:12.:32:14.

desperately keen to sign up to a trading agreement? Why can we not do

:32:15.:32:20.

these things? If we are still paying our full amount into the European

:32:21.:32:25.

Union, are we still going to have two side every single directive that

:32:26.:32:35.

comes during the next two years? On Australia, Canada, Malaysia, of

:32:36.:32:38.

course we can start those conversations. I think it is

:32:39.:32:42.

difficult to start full on trade negotiations, because until you know

:32:43.:32:46.

the relationship between Britain and the European single market, it is

:32:47.:32:51.

difficult to get into big discussions. We have to be very

:32:52.:32:57.

clear, we pay into the European Union and that continues until the

:32:58.:33:01.

day we leave, and therefore we have to obey the rules and laws, just as

:33:02.:33:06.

we would expect just other European Union countries to do, with respect

:33:07.:33:13.

to us. In terms of decisions that need to be made right now, there are

:33:14.:33:18.

those that have to be made legal and practical reasons. There may be some

:33:19.:33:22.

decisions that can be put up a month or two, order to have a new

:33:23.:33:27.

Government who can think about them in the context, but I don't think we

:33:28.:33:32.

should do anything to break the law. Whilst we are naturally focused on

:33:33.:33:35.

our future role in Europe, have friends in the Baltic nations are

:33:36.:33:39.

concerned about their immediate risks across the border. These are

:33:40.:33:44.

both military and things like cyberspace, as my right honourable

:33:45.:33:48.

friend knows very well. Is he satisfied that that can be done is

:33:49.:33:53.

being done within Nato and the European Union, to stand by our

:33:54.:33:59.

friends? I think enough is being done. We have the Warsaw Summit

:34:00.:34:08.

coming up, we'd be playing a big role, and making sure that military

:34:09.:34:10.

presence is in Latvia and Estonia. We will be playing our part and the

:34:11.:34:16.

Americans will be playing bears. It is important we keep up that we

:34:17.:34:20.

assurance, because that is the key thing for that Britain helps their

:34:21.:34:29.

security. I was at the protest last night outside the House of Lords. I

:34:30.:34:33.

have to report that I did not see the Prime Minister had their, so I

:34:34.:34:40.

can tell and that the most popular chants that was repeated over and

:34:41.:34:49.

over was Eton Mess, Eton Mess. Most of those people were young, because

:34:50.:34:57.

most of the people who benefit from the EU are young. What can the

:34:58.:35:03.

future Government do to make sure that that funding or similar funding

:35:04.:35:04.

is secured? I was because I was in Brussels at

:35:05.:35:14.

the time and while I am all for having your cake and eating it I

:35:15.:35:19.

have not worked out how to be in two places at once. I have said what I

:35:20.:35:25.

can about funding for universities. It is important we continue to get

:35:26.:35:29.

it through the EU while we are a member and afterwards we will have

:35:30.:35:34.

to make decisions. He and I have to be frank with each other that Wales

:35:35.:35:38.

actually did not vote to remain within the EU in spite of the fact

:35:39.:35:44.

they are a net beneficiary, Welsh farming does well out of Europe and

:35:45.:35:48.

the steel industry would do better in that out. I take my share of

:35:49.:35:53.

responsibility we lost but we all must think about, even now we are

:35:54.:35:59.

leaving, make better arguments about how we can remain as engaged as

:36:00.:36:03.

possible. Can I thank the Prime Minister, not

:36:04.:36:08.

just for his statement today, but for all his work he has done over

:36:09.:36:13.

the past six years to protect UK interests when attending these

:36:14.:36:17.

European union Council meetings. With respect to the meeting

:36:18.:36:22.

yesterday, that my right honourable friend detect any regret on the part

:36:23.:36:27.

of other EU leaders that they do not make more concessions when he sought

:36:28.:36:33.

to renegotiate terms of membership? That is a very good question and I

:36:34.:36:38.

am quite keen to answer it. The sensible thing the European Council

:36:39.:36:43.

was they had bent over backwards to give a country that already had a

:36:44.:36:48.

special status out of the euro and out of the Schengen system, things

:36:49.:36:53.

they found profoundly uncomfortable. Many of those countries do believe

:36:54.:36:58.

in Iraq. Political union, however wrong we think is. -- believe in

:36:59.:37:05.

ever closer political union. The dislike having to agree to cut

:37:06.:37:09.

welfare benefits for their own citizens because that is what they

:37:10.:37:15.

signed up to do. -- the best light. I believed and will always believed

:37:16.:37:20.

it was good negotiation, it did not solve all of Britain's problems but

:37:21.:37:25.

address some of the biggest concerns the British people hands and I would

:37:26.:37:28.

say I always want to know if there is more that could have been done

:37:29.:37:33.

what the strong sense I get is this issue of pool access to the single

:37:34.:37:38.

market and reform of free movement is very difficult. We achieve some

:37:39.:37:43.

free movement of reforms but the idea there is an enormous change to

:37:44.:37:47.

freeze movement, particularly from outside the EU, is a very tough call

:37:48.:37:52.

and we must think it through very carefully. -- change to free

:37:53.:37:58.

movement. It was a referendum on the

:37:59.:38:02.

membership of the EU and not the single market. Given the grave

:38:03.:38:07.

damage already done to our economy because of uncertainty would he call

:38:08.:38:10.

on all of those in this house to aspire to lead this country too, to

:38:11.:38:15.

keeping Britain within the single market with full access.

:38:16.:38:19.

The right honourable gentlemen makes an important point. This is one of

:38:20.:38:24.

the key arguments. When I examine why I have always believed we are

:38:25.:38:28.

better off in even though I wanted to see reform, it always came down

:38:29.:38:33.

to the single market, we're in it, it will go on existing even if

:38:34.:38:39.

relieved and profoundly affects our economic and business and national

:38:40.:38:45.

life. -- even if we believe it. I would urge my colleagues to aim for

:38:46.:38:49.

the greatest possible access but they will have to think about the

:38:50.:38:56.

benefits and drawbacks of that. Does the Prime Minister except when

:38:57.:38:59.

negotiating we should remember many strengths? One of the strongest

:39:00.:39:04.

economies, many competitors are advantages which would more than

:39:05.:39:09.

compensate for any tariffs which the WTO will ensure cannot be punitive

:39:10.:39:17.

and while nations around the world, including Australia and New Zealand,

:39:18.:39:19.

are already knocking at our door with regard to trade deals?

:39:20.:39:24.

No one is more impressed I the strength of the British economy than

:39:25.:39:28.

me. It is strong, many advantages, many key industries that are admired

:39:29.:39:34.

the world over. We have recognised it will be a hard and difficult

:39:35.:39:39.

negotiation in many ways because we are negotiating with a block of 440

:39:40.:39:44.

million people but we should certainly make the most of our

:39:45.:39:49.

strengths. I would avoid Paris. The IDF had paddocks can be compensated

:39:50.:39:53.

for in other ways is dangerous top. -- outward avoids tariffs. Companies

:39:54.:40:01.

that come here do not want to pay for the Mac.

:40:02.:40:08.

The campaign undoubtedly made totally false pledges and they have

:40:09.:40:13.

been cordial exposed. Coming back to the issue raised on a number of

:40:14.:40:18.

occasions today does not some of the responsibility for the result light

:40:19.:40:22.

with the EU leadership and the way in which they show no flexibility

:40:23.:40:30.

whatsoever over at issue, certainly in my constituency, the issue of

:40:31.:40:34.

free movement of labour. EU law that not come about with the Ten

:40:35.:40:38.

Commandments. National debt not come down. For

:40:39.:40:45.

once I have some great sympathy with the honourable gentleman. That is

:40:46.:40:49.

why I took aim at this issue by saying people who come here and work

:40:50.:40:53.

but not get full access to wealth for four years and that addressed

:40:54.:41:01.

the constituents, both main and his,. It is important EU countries

:41:02.:41:07.

see the single market insisting not only of the free movement of goods,

:41:08.:41:12.

people, services and capital, the CNN bound together but also the CD

:41:13.:41:18.

single market -- the CNN bound together. Basically payments

:41:19.:41:25.

countries make into the EU to strengthen the weaker members. One

:41:26.:41:29.

can try and negotiate amendments to this but we must think about that

:41:30.:41:32.

mindset as we going to the negotiation.

:41:33.:41:37.

The Prime Minister will be aware of the North Hertfordshire voted to

:41:38.:41:41.

stay in the EU. Many of our businesses rely on the single market

:41:42.:41:47.

and many of my constituents work in London in insurance, financial

:41:48.:41:52.

services, legal work. Does he agree that part of this negotiation must

:41:53.:41:58.

be about the passport arrangements, which enable the service interest to

:41:59.:42:04.

do so well and I do not know if it was mentioned at the European

:42:05.:42:07.

Council, what can I thank him for everything he has done.

:42:08.:42:12.

I thank my right honourable friend for his remarks. The is your

:42:13.:42:18.

passport will remain very important. Financial services are 7% of our

:42:19.:42:24.

economy, we are at the financial centre for Europe, 40% of financial

:42:25.:42:27.

services in Europe and we will be strong in that area whatever the

:42:28.:42:30.

outcome but it is undoubtably through the passport does help

:42:31.:42:35.

British firms and it helped the country's firms come to Britain. One

:42:36.:42:39.

of the reasons the Swiss banks are here is because they do not get

:42:40.:42:44.

passport right in Switzerland and so this should be a very important

:42:45.:42:49.

feature and is one of the issues about what single access actually

:42:50.:42:55.

means. Could I thank the Prime Minister for

:42:56.:43:01.

all his efforts. Does he agree with me and fully recognise the very

:43:02.:43:03.

difficult position in Northern Ireland is now an? Be voted to stay,

:43:04.:43:09.

we want to stay yet we are hostage to the mistakes of others who were

:43:10.:43:17.

misled by false promises. On funding for NHS and a lorry loads for

:43:18.:43:22.

farmers. Does he recognise Northern Ireland have to open up

:43:23.:43:25.

opportunities to protect the interests inside a closer

:43:26.:43:28.

relationship with Europe and has he had time to give thought to how the

:43:29.:43:34.

settlement of 1998, the Good Friday agreement, is undermined by the

:43:35.:43:37.

dismantling of much of the legislation that hinges on the EU.

:43:38.:43:42.

We will look at the specific questions you raise is costly and

:43:43.:43:46.

that is something others in Westminster and Northern Ireland can

:43:47.:43:53.

start on. -- the specific questions he raises. We want the closest

:43:54.:44:01.

possible cooperation with the Government of Northern Ireland. They

:44:02.:44:06.

made a moving statement last night our how we have been fighting each

:44:07.:44:10.

other at 1169, I have not checked my dates. He then went through... You

:44:11.:44:15.

are nodding so I guess that is right. He then went through some of

:44:16.:44:21.

the key elements of the conflict in which I'm sure relatives of mine

:44:22.:44:25.

were probably involved. He said he is very proud that today relations

:44:26.:44:30.

between Northern Ireland and the UK have never been stronger and we must

:44:31.:44:33.

not let that go. We must -- my constituency is home

:44:34.:44:40.

to a number of manufacturing and technology businesses which play a

:44:41.:44:43.

major role in our local economy. What reassurance can the Prime

:44:44.:44:47.

Minister give this trade will continue to grow, not the least of

:44:48.:44:52.

Warwick's very strong vote to be means? -- renamed. -- remain.

:44:53.:45:03.

This comes back to access the single market. Nothing changes for the next

:45:04.:45:08.

two years at least while the negotiation carries on but we must

:45:09.:45:13.

make sure by the end of that article 50 process we have this access is

:45:14.:45:17.

properly set up so our manufacturers know what they are doing.

:45:18.:45:24.

Can I thank the Prime Minister strong condemnation of the racist

:45:25.:45:27.

attacks on members of the Polish community and community and others

:45:28.:45:31.

and also paid tribute to him for the respect and commitment he has

:45:32.:45:35.

showing to Britain's ethnic minority community or the last six years and

:45:36.:45:41.

also creating the most diverse administration of any Conservative

:45:42.:45:45.

Prime Minister history. In respect of yesterday's summit, was that a

:45:46.:45:48.

discussion of the comments made by the mail of Calais or the French

:45:49.:45:54.

economy Minister that the juxtapose the borders be taken out of France

:45:55.:45:57.

and returned to the UK? Does he agree with me that this is a deal

:45:58.:46:02.

made between Britain and France and has nothing to do with the

:46:03.:46:07.

referendum? Let me thank him for his comments

:46:08.:46:12.

about my support for Britain's ethnic minorities and the diversity

:46:13.:46:16.

we see on these benches. That has been a very important change in

:46:17.:46:20.

politics. We did not discuss last night the juxtapose border control

:46:21.:46:24.

issue not not the remarks of the Mayor of Calais. My view this -- my

:46:25.:46:29.

view is this is a treaty between Britain and France and we want to

:46:30.:46:36.

keep it. I don't take back anything about what I said about the risks

:46:37.:46:40.

during the referendum campaign so we need to redouble our efforts to

:46:41.:46:43.

secure this. Can the Prime Minister from 100,000

:46:44.:46:50.

migrants is about the maximum number of people that they are willing to

:46:51.:46:56.

accept at the moment, especially outside London and the Home

:46:57.:46:59.

Counties? I would not put it like that. The

:47:00.:47:03.

point I have always made is we should have a sense of the net

:47:04.:47:07.

migration. In it more than advanced countries like Britain you have

:47:08.:47:14.

often well over 100,000, many hundreds of thousands, British and

:47:15.:47:17.

EU nationals here moving to Europe or elsewhere and European nationals

:47:18.:47:22.

coming here. I think measuring the next number, which is obviously

:47:23.:47:25.

imprecise and difficult because people leave for all sorts of

:47:26.:47:29.

reasons if he good way of measuring pressure on public services. -- next

:47:30.:47:34.

number. If you go back to 2008 the number of people leaving the UK and

:47:35.:47:39.

the number of people arriving, it was actually a little negative. But

:47:40.:47:45.

it's like was on this net migration issue. You should measure the

:47:46.:47:49.

overall numbers because the ghost movements can be much better than

:47:50.:47:56.

the net figure at the end. -- gross movement. But he recognised

:47:57.:47:59.

the river becomes elected Prime Minister will have no mandate to

:48:00.:48:06.

negotiate on behalf of the people. Not least because they failed to set

:48:07.:48:12.

out any indication of what a post on Brexit UK would look like and

:48:13.:48:16.

therefore we should have an early general election?

:48:17.:48:20.

I believe the new Prime Minister and Cabinet should draw up their

:48:21.:48:25.

negotiating mandate done over -- on their work done over the next few

:48:26.:48:30.

months and then bring it here and defend and explain it in this house

:48:31.:48:34.

and that seems, to me, the right way forward.

:48:35.:48:40.

The formal negotiation will start with Article 50 is good but with the

:48:41.:48:45.

Prime Minister agreed at our first piece of negotiating 11 which is

:48:46.:48:49.

when we decide to trigger article 50 and there is no reason, legal or

:48:50.:48:54.

moral, to do that until we are ready and we have sight, month by month,

:48:55.:49:00.

what will happen in the following 24 months after it.

:49:01.:49:05.

My honourable friend is right that it is a British decision went to

:49:06.:49:12.

trigger article 50. -- went to trigger. It is important to

:49:13.:49:14.

recognise our European partners have concerns too. Our current economic

:49:15.:49:20.

problems and make up more of also affect them. The Dutch Prime

:49:21.:49:24.

Minister said to me he thought his growth rate would be a material

:49:25.:49:29.

affected -- materially affected by the onset in Britain. Given

:49:30.:49:34.

negotiations are hard work and hard graft and also rely on good will you

:49:35.:49:39.

do not want to put too much of that good will risk in terms of how you

:49:40.:49:40.

proceed. With a future trading position

:49:41.:49:51.

completely unknown, with the unity of the UK itself under threat and

:49:52.:49:56.

appalling racist attacks happening on our streets, does the Prime

:49:57.:50:01.

Minister not agree that as a response to the referendum, the

:50:02.:50:05.

setting up of a unit in the Cabinet Office under the member for West

:50:06.:50:11.

Dorset is simply not up to the task, in response to what is the greatest

:50:12.:50:16.

change in Britain's position in the world since the end of the Second

:50:17.:50:21.

World War. I agree with him on the issue of racist attacks. We need to

:50:22.:50:26.

take urgent action. In terms of the steps we need to take, there is a

:50:27.:50:33.

limited amount you can do before a new Prime Minister and new cabinet

:50:34.:50:36.

arrived, but you shouldn't belittle that because a lot of this is cold,

:50:37.:50:42.

hard facts about what the benefits are, and there is a world of

:50:43.:50:45.

difference between the referendum campaign with the leave side were

:50:46.:50:50.

building all sorts of things that went with the hypothetical state

:50:51.:50:56.

issue -- offering, and that is something that needs to happen and I

:50:57.:51:00.

think the mechanics we are putting in place will help that to happen.

:51:01.:51:05.

The Prime Minister said that we are entitled to all the benefits of

:51:06.:51:09.

membership until the points of which we leave. Can I clarify if there has

:51:10.:51:13.

been any discussion about access to funding, like the funding to

:51:14.:51:21.

Glasgow, which has created 10,000 jobs. The long-term conditions of

:51:22.:51:25.

loans issued under the European investment bank, which were worth

:51:26.:51:33.

significant amounts of money. All I can say is that any contracts

:51:34.:51:36.

entered into before Britain leaves the EEA should be honoured in full,

:51:37.:51:42.

in terms of EU funding for research or regions of our country. The state

:51:43.:51:51.

as we have with respect to the European investment bank, but we

:51:52.:51:56.

will look at that now to see what the options are. Vote Leave are so

:51:57.:52:05.

confident of delivering on their overblown promises that they have

:52:06.:52:08.

recently wiped much of their website and removed the key claims that they

:52:09.:52:13.

have made during the campaign from it. I disagreed with many of the

:52:14.:52:18.

claims made, but does the Prime Minister agree with me that the

:52:19.:52:22.

public will never forget vote Leave politicians that form part of the

:52:23.:52:28.

new Government if an outbreak those pledges? There will be no hiding

:52:29.:52:33.

place from being held to account on those promises for the next

:52:34.:52:36.

Government. One thing we all experience and share in this House

:52:37.:52:41.

is that when we make commitments and promises, we are held to account for

:52:42.:52:48.

them. At these dispatch boxes and accounts in a way that is often more

:52:49.:52:52.

direct and brutal than other democracies. I say, long may that

:52:53.:52:58.

remain the case. Kiwi negotiations will clearly be difficult and take

:52:59.:53:09.

some time -- the renegotiations. But one place we need to take action now

:53:10.:53:14.

is improving jobs, infrastructure in our market towns and coastal areas,

:53:15.:53:18.

where many people think they haven't seen the benefits of growth. Can I

:53:19.:53:22.

ask the Prime Minister to work with local council leaders to make sure

:53:23.:53:26.

the devilish and deals being struck across the country deliver for these

:53:27.:53:32.

areas and not just our great leisure polities cities? -- devilish and.

:53:33.:53:45.

They help address the issue of immigration, but they also offer

:53:46.:53:52.

hope to our regional economies, not just our city economies. We should

:53:53.:54:00.

continue with all these devolution deals. We will continue at that

:54:01.:54:05.

work. The Prime Minister of Northern Ireland voted to remain within the

:54:06.:54:18.

European Union. My constituency depends on free access to goods

:54:19.:54:24.

services. That essential access to markets where 46% of what the

:54:25.:54:31.

exploit and import comes from the south of Ireland -- export. Our

:54:32.:54:37.

economy depends on the European Union. How can that be guaranteed?

:54:38.:54:43.

The... In Northern Ireland was very strong, not least respecting the

:54:44.:54:48.

fact that the party of the First Minister wanted to leave the

:54:49.:54:52.

European Union. It was a very strong statement. But I would argue that

:54:53.:54:56.

all the constituent parts of the United Kingdom need to make their

:54:57.:55:00.

voice heard, and I think this process over the next few months are

:55:01.:55:04.

drying up the different blueprint is an important opportunity to

:55:05.:55:06.

influence the debate in this country and Europe, about what the outcome

:55:07.:55:12.

should be. The example she gets about border trade in Northern

:55:13.:55:16.

Ireland is a good example to inform this debate. British troops are

:55:17.:55:21.

currently on the Polish Ukraine border taking part in the largest

:55:22.:55:25.

military exercise since the end of the Cold War. He has committed 1000

:55:26.:55:37.

British personnel to participate in aggression. Can I urge him to use

:55:38.:55:42.

his final appearance as a Nato Prime Minister on the eighth and ninth at

:55:43.:55:50.

the Warsaw summit, to continue to press sanctions against Russia. I

:55:51.:55:58.

think the honourable lady is absolutely right and we have done a

:55:59.:56:03.

lot to reassure the Polish and Baltic friends and allies. That is

:56:04.:56:06.

why the troops are taking part in this exercise. We had taken a

:56:07.:56:09.

leading role in this Nato conference and we will make sure that we

:56:10.:56:14.

provide visible troops. Eyes will be stationed in Estonia, America, and

:56:15.:56:19.

other countries will be taking on the other Baltic states, so that

:56:20.:56:24.

people can see, when they look over these borders, they don't just see a

:56:25.:56:31.

stony and Latvian troops, we see French and British and American

:56:32.:56:35.

troops. Several weeks ago, and the lead up to the referendum, I asked

:56:36.:56:40.

for a personal commitment from the Prime Minister for the city of

:56:41.:56:44.

Dundee and the surrounding areas. He gave that full commitment. Since

:56:45.:56:49.

that referendum, we have heard comments from the Secretary of State

:56:50.:56:52.

for Scotland that that may now be in doubt due to a Tory new leader. Can

:56:53.:56:59.

I have the assurance that the city deal will be delivered in terms of

:57:00.:57:04.

funding, regardless of who will be the Prime Minister in the near

:57:05.:57:10.

future? I can't bind the hands of my successor, but I will say to any of

:57:11.:57:13.

the candidates that the city deals have been a great success throughout

:57:14.:57:17.

the United Kingdom and I think it has been quite a marked thing that

:57:18.:57:21.

although Scotland now has a powerhouse parliament, they have

:57:22.:57:24.

been popular and successful where they have been tried in Scotland,

:57:25.:57:31.

and I will make sure that is clear. A Canadian style free trade

:57:32.:57:32.

agreement clearly would not be the agreement clearly would not be the

:57:33.:57:36.

best possible deal for our country and I think it is pretty

:57:37.:57:41.

irresponsible but some of the leading leave campaigners to suggest

:57:42.:57:44.

in the campaign that that was somehow a good alternative to our

:57:45.:57:49.

membership. But isn't it also clear that from what are European leaders

:57:50.:58:00.

said yesterday, that F we prioritise stopping... We want have the same

:58:01.:58:05.

access to the European free market. The parameters of the choice are

:58:06.:58:10.

actually clear. I can add to that point by saying that one of the

:58:11.:58:16.

things in the meeting, it is worth pointing out that the Canada free

:58:17.:58:20.

trade deal is not yet agreed and there are countries in the EU that

:58:21.:58:26.

are getting very nervous about free trade deals. I happen to think they

:58:27.:58:30.

are wrong, but that is worth bearing in mind. What she says about access

:58:31.:58:35.

to the free market, if that is the most important thing, there are

:58:36.:58:38.

trade-offs that you have to consider and that is certainly the way I

:58:39.:58:39.

would see this because she Asian. A year later they voted in a second

:58:40.:58:59.

referendum to accept that and the finer European traditions of keeping

:59:00.:59:02.

voting until you get the right result. We know that many millions

:59:03.:59:06.

of people in this country felt that they were deceived by the

:59:07.:59:11.

exaggerations and the lies in the campaigns of both parties and they

:59:12.:59:17.

now feel themselves cheated by that result and millions of people have

:59:18.:59:20.

protested. Isn't it right that we look again at the possibility of a

:59:21.:59:27.

second referendum in this certainty that all second thoughts are always

:59:28.:59:33.

superior to first thoughts? I think we have to accept the result and I'm

:59:34.:59:37.

certainly not planning a second referendum. What we have to focus on

:59:38.:59:42.

is get the closest possible relationship between Britain and

:59:43.:59:45.

Europe. We can start the work in shaping that debate and I think we

:59:46.:59:50.

can start that debate right now. And getting a bit bored with this lame

:59:51.:59:56.

duck attitude that the Prime Minister is giving us. Take control,

:59:57.:00:02.

man! We could be passing emergency legislation to make it absolutely

:00:03.:00:05.

clear that every EU citizen who was living in this country now is

:00:06.:00:08.

entitled to live here and stay here into the future. That would stop

:00:09.:00:13.

some of the horrible campaigning that is already happening around the

:00:14.:00:16.

country. You could set up a Royal commission to make sure we bind

:00:17.:00:21.

together as much of the country as possible. To start creating a

:00:22.:00:24.

consensus for what we should be lobbying for as our best deal in the

:00:25.:00:29.

future. Why doesn't he take control? I thought that is what it was all

:00:30.:00:36.

about. I have never believed you take control or take rapid decisions

:00:37.:00:42.

by setting up a Royal commission. They take minutes and the last four

:00:43.:00:48.

years. That is what would happen in this case. I will look very

:00:49.:00:52.

carefully at all these issues of how to reassure EU nationals that are

:00:53.:01:01.

here. Frankly, he and his colleagues have got something they need to take

:01:02.:01:10.

control of, and it is their party! It is a topsy-turvy world. I have

:01:11.:01:16.

never felt greater support from my party and I am leaving, and I have

:01:17.:01:20.

never seen an opposition leader with less support and he is staying. As

:01:21.:01:25.

someone about to enter the political graveyard, perhaps I could misquote

:01:26.:01:29.

my favourite band and say, let's meet at the cemetery gates. A farmer

:01:30.:01:41.

in my constituency is thinking of emigrating, the possible stopping of

:01:42.:01:58.

CAP payments. Can he reassure me that the possibility of CAP payments

:01:59.:02:10.

will continue? The CAP payments will continue as far as our contract

:02:11.:02:17.

lasts. The new Government will decide the payments it wants to make

:02:18.:02:25.

two Scottish farmers. When the Prime Minister got back from Brussels last

:02:26.:02:30.

night, was there any message from a member from Uxbridge about where to

:02:31.:02:34.

find the Riyadh and ?50 million for the NHS? -- 350 million. It was

:02:35.:02:46.

pretty late and there wasn't much time for anything. I don't really

:02:47.:02:53.

think the Prime Minister fully appreciates that when we negotiated

:02:54.:02:56.

the Good Friday Agreement, the common membership of the EU was

:02:57.:03:01.

taken as a given and was in the fabric. At the core of that

:03:02.:03:05.

agreement is the principle of consent. Now the people of Northern

:03:06.:03:09.

Ireland feel that they are being dragged out of the European Union

:03:10.:03:12.

against their consent, as expressed when they voted for the Good Friday

:03:13.:03:19.

Agreement. 78.2% voted to remain in my own constituency. It isn't enough

:03:20.:03:25.

for the prime ministers to say now that the negotiations will sort

:03:26.:03:28.

things out for us. It is clear that English politics do not have a sat

:03:29.:03:32.

nav or a map for what is happening, and now he is telling us that we had

:03:33.:03:37.

to tailgate to where it the prejudice in English politics drive

:03:38.:03:46.

us next. I totally understand the honourable gentleman's passion about

:03:47.:03:49.

this and he and I were on the same side, but my reading of the history

:03:50.:03:54.

of this was different, which is that the Good Friday Agreement, based on

:03:55.:03:59.

the principle of consent, was that the United Kingdom would continue

:04:00.:04:01.

and Northern Ireland would be part of that United Kingdom. This is a

:04:02.:04:06.

sovereign decision for the United Kingdom, now the job of the United

:04:07.:04:12.

Kingdom Government is to try to get the best possible because she Asian

:04:13.:04:16.

for Britain's place, and therefore Northern Ireland's Place --

:04:17.:04:26.

negotiation. Britain's European Commission earner has decided to

:04:27.:04:30.

step down. As the Prime Minister any plans to appoint somebody, if only

:04:31.:04:37.

on an interim basis? Yes, I think we should appoint a new commissioner,

:04:38.:04:42.

we pay our dues in full. I discussed this yesterday with the president of

:04:43.:04:45.

the commission and we hope to come forward with a nominee shortly. Mr

:04:46.:04:53.

Speaker, as the proud son of Irish immigrants, who encountered those

:04:54.:04:58.

signs, no dogs, no Irish, we once again see fear stalks the streets.

:04:59.:05:04.

The Polish women were told home, the Kashmiri driver told, we don't want

:05:05.:05:08.

you Muslims here. The aggressive individual who is said to a train

:05:09.:05:14.

guard, don't you close those door is until I tell you, we make the rules

:05:15.:05:19.

now. All as a consequence of xenophobia being put mainstream in

:05:20.:05:22.

the referendum campaign. Does the Prime Minister agree with me that it

:05:23.:05:28.

can never be right that someone, because of their accent or the

:05:29.:05:32.

colour of their skin, it should fear for their safety, and that we will

:05:33.:05:38.

never, ever allow this great, dynamic, multicultural Britain to be

:05:39.:05:40.

divided by the evil of racism? By the honourable gentleman has so.

:05:41.:05:51.

I never wanted to see those sentiments appear in our country

:05:52.:05:55.

again. The difference between now and the 1950s is our laws are far

:05:56.:06:01.

stronger, the understanding of our place is far better and the ability

:06:02.:06:07.

of prosecuting authorities is far stronger and all those things should

:06:08.:06:13.

be brought to bear. As far as the UK Council Presidency

:06:14.:06:16.

is concerned perhaps they should invite the Scottish Government are

:06:17.:06:21.

hosted seeing as we are committed to the EU. Does he understand the

:06:22.:06:29.

express -- problems expressed by my constituents with their friends and

:06:30.:06:31.

relatives living in the EU particular with health care and the

:06:32.:06:36.

like. How will this be affected in the

:06:37.:06:41.

future? Health care is exactly the sort of issue that did not loom

:06:42.:06:44.

large in the campaign as it should because there are some big retail

:06:45.:06:49.

benefit from being in the EU, no roaming charges for mobile phone

:06:50.:06:55.

chargers, access to health care, cheap airfares and the rest of it.

:06:56.:06:59.

It is the sort of thing a Whitehall unit can look at, what are the rules

:07:00.:07:03.

and terms of access to health care what can use secure within Europe

:07:04.:07:09.

and out with the EU and start to put that forward so people can see what

:07:10.:07:14.

the future holds. 70% of those who voted in my

:07:15.:07:20.

constituency voted to remain. Many constituents have written to me

:07:21.:07:23.

feeling for stability and jobs in our local immunity were 15% argue

:07:24.:07:30.

that -- 15% of EU nationals. What should I say the Government is doing

:07:31.:07:32.

to reassure them? I hope you would say we have to

:07:33.:07:37.

accept the democratic will of the people, but we should do everything

:07:38.:07:45.

we can to reassure people hate crime has no place in this country and we

:07:46.:07:50.

will conduct a negotiation based on the best available evidence about

:07:51.:07:54.

what we can do to achieve the closest possible relationship with

:07:55.:07:58.

Europe on the basis of trade, cooperation and security. That is

:07:59.:08:02.

our goal but in any referendum debate what a decision like this

:08:03.:08:07.

that will be those disappointed with the result, myself included. We now

:08:08.:08:10.

must make the best we can the new situation we are in.

:08:11.:08:16.

The already dodgy economic at Hinkley point C have surely been

:08:17.:08:21.

fatally undermined by the decision to withdraw from the EU. Can I

:08:22.:08:25.

suggest to the Prime Minister, if he is looking to salvage something of a

:08:26.:08:30.

legacy, he pulled the plug on this enormous folly?

:08:31.:08:32.

I do not agree with the honourable gentleman. The logic and the

:08:33.:08:37.

economic span of Hinkley point C are that we need to have this old

:08:38.:08:43.

non-carbon energy it in order to have any ability to meet the very

:08:44.:08:48.

challenging targets we have two reduce carbon emissions. I am all

:08:49.:08:55.

for and have seen a mass of an expansion of renewable energy says I

:08:56.:09:00.

have been Prime Minister. My friend print -- my favourite statistic is

:09:01.:09:03.

90% of solar panels have been installed since I have had this job.

:09:04.:09:08.

But solar power is intermittent and units based power and is why the

:09:09.:09:14.

case for crinkly continues. If the Prime Minister will dig out

:09:15.:09:19.

his copy of the Queen is dead album, he may want to depress himself or

:09:20.:09:24.

other relevant to my favourite track, I Know It's Over. However, as

:09:25.:09:30.

far as the Labour Party is concerned, There Is A Light That

:09:31.:09:35.

Never Goes Out. On Bristol our elected mayor convenes a meeting of

:09:36.:09:39.

key stakeholders to work out what this means for the city. There are

:09:40.:09:44.

many wanted people so can he assure us the voice of cities on the

:09:45.:09:48.

international stage will not be Dems. -- there are many wanting to

:09:49.:09:51.

people. I will do everything I can to stand

:09:52.:09:57.

up for Bristol. I was interested in the Labour Party's favourite

:09:58.:10:02.

Smithsonian as it involves a double suicide. The lyrics are, if a

:10:03.:10:10.

double-decker bus crashes into others, to die by your side... I

:10:11.:10:17.

think the next verse is, if a pen: truck crashes into others -- payment

:10:18.:10:28.

and truck. You obviously need to look for inspiration elsewhere. I

:10:29.:10:31.

did not know what the Prime Minister had such a compendium of knowledge

:10:32.:10:35.

on music. Extraordinarily impressive! He wrote to members on

:10:36.:10:43.

both sides of the house top about the importance of manufacturing to

:10:44.:10:48.

the Midlands and also of herds in Prime Minister's Questions referred

:10:49.:10:56.

to the comments of Sadiq Khan in London having a voice in both

:10:57.:11:00.

preparation for negotiations and within any negotiations themselves.

:11:01.:11:04.

I agree with that and can be prime ministers say something about the

:11:05.:11:08.

mechanism he envisages to allow our regions outside of London to have a

:11:09.:11:16.

say in negotiations. What I can say and perhaps Apple

:11:17.:11:21.

said it out in more detail at a later occasion is we must find

:11:22.:11:27.

mechanisms such as a joint ministerial Council but also find

:11:28.:11:31.

new mechanisms that the voices of our nations and regions can be herds

:11:32.:11:42.

and I commit to that. Can be heard. Statement the parliamentary

:11:43.:11:45.

Under-Secretary of State at the home with responsibility for preventing

:11:46.:11:49.

abuse and exploitation. Karen Karen Bradley.

:11:50.:11:56.

Hate crime of any kind is directed against any community, race or

:11:57.:12:04.

religion has absolutely no place in our society. As my right honourable

:12:05.:12:10.

friend the Prime Minister told this house today we are utterly committed

:12:11.:12:16.

to tackling hate crime. We will provide extra funding in order to do

:12:17.:12:22.

so. We will also take steps to boost reporting of hate crime and to

:12:23.:12:28.

support victims. Issue new CPS guidance on racially aggravated

:12:29.:12:33.

crime, provide a new fund for protective security measures at

:12:34.:12:38.

potentially vulnerable institutions and also offer additional funding to

:12:39.:12:41.

community organisations so they can tackle hate crime. The scenes and

:12:42.:12:48.

behaviour we have seen in recent days, including offensive graffiti

:12:49.:12:52.

and abuse hurled at people because they are members of ethnic

:12:53.:12:57.

minorities, or because of nationality, are despicable and

:12:58.:13:04.

shame. . We must stand together against such hate crime and ensure

:13:05.:13:09.

it is stamped out. Over the last week there has been a 57% increase

:13:10.:13:14.

in reporting to the police online reporting portal Through vision,

:13:15.:13:19.

compared to this time last month with 85 reports between -- made

:13:20.:13:30.

between the 23rd and the following week May two 24 reports the previous

:13:31.:13:35.

week. I would urge caution in drawing conclusions from these

:13:36.:13:40.

figures as they are a rough and small snapshot of report rather than

:13:41.:13:46.

definitive statistics. Much of the reporting has been through social

:13:47.:13:51.

media, including reports of xenophobic abuse of Eastern

:13:52.:13:55.

Europeans as well as attacks against members of the Muslim community.

:13:56.:14:02.

However, we have also seen messages of support and friendship on a

:14:03.:14:06.

social media. I am sure you all house will want to join me in

:14:07.:14:12.

commenting on those who have, we have seen stand up for what is right

:14:13.:14:16.

and uphold the shared values that bind us together as a country, such

:14:17.:14:23.

as those who oppose the racist and hateful speech shown in the recent

:14:24.:14:28.

video taken on a pram in Manchester. These recent events are shocking but

:14:29.:14:34.

sadly this is not a new phenomenon. Statistics from the report published

:14:35.:14:45.

today show in 2015 there was a 320 -- 300 26% increase from 2014 in

:14:46.:14:51.

Street -based anti-Muslim incidents reported directly, such as verbal

:14:52.:14:56.

abuse in the street and a woman's reveals being pulled away for a 437

:14:57.:15:04.

incidents reported. The report also finds 45% of all the hate crime

:15:05.:15:07.

perpetrators are supportive of the far right. In recent days we have

:15:08.:15:13.

seen a far right groups engaged in order marches and demonstrations,

:15:14.:15:19.

sowing fear and division. We have also seen a far right groups

:15:20.:15:25.

broadcasting extreme racist and anti-Semitic and deals online. Along

:15:26.:15:30.

with the spectral hate speech posted online following the shocking death

:15:31.:15:36.

of our college Jo Cox. Her appalling death just under two weeks ago

:15:37.:15:40.

shocked and sickened people, not only in communities up and down this

:15:41.:15:44.

country, but in many other countries around the world. As we're herds in

:15:45.:15:50.

the many moving tributes paid to her in this house for a loss is keenly

:15:51.:15:57.

felt and we will always remember a husband is is not without a loving

:15:58.:16:04.

wife and two young children will grow up without a mother. The

:16:05.:16:07.

investigation of hate crimes is an operational matter for the police

:16:08.:16:11.

but I would urge anyone who has experienced hate crimes are

:16:12.:16:15.

reported, whether directly to the police, the police station, by

:16:16.:16:19.

phoning 0101 or online three Through vision website. In this country we

:16:20.:16:27.

have some of the strongest legislation in the world to protect

:16:28.:16:30.

communities from violence and bigotry and this includes specific

:16:31.:16:35.

offence is not a racially and religious aggravated activity and

:16:36.:16:38.

offences of this stirring up of hatred on the ground operation,

:16:39.:16:44.

religion and sexual orientation. It is imperative that these laws are

:16:45.:16:48.

vigorously enforced. The National police report hate crime, Mark

:16:49.:16:53.

Hamilton, has issued a statement confirming police forces are working

:16:54.:16:57.

closely with their communities to maintain unity and prevent any hate

:16:58.:17:03.

crime or abuse. Police forces will respond robustly to any incidents

:17:04.:17:08.

and victims can be reassured that their concerns about hate crime will

:17:09.:17:12.

be taken seriously by the police and courts. Any decisions regarding

:17:13.:17:18.

resources offered by police on a matter for Chief Constable Jerry

:17:19.:17:20.

Graham junction with their policing crime commission. -- between the

:17:21.:17:29.

chief constables under present crime commission. The Home Secretary asked

:17:30.:17:34.

the police to ensure the recording of religious -based hate crime

:17:35.:17:37.

includes the faith of the victim, a measure which came into effect this

:17:38.:17:42.

April. We also establish joint training between the police and CPS

:17:43.:17:47.

to improve the way the police identify and investigate hate crime.

:17:48.:17:52.

Alongside this training the College policing, and the professional body

:17:53.:17:57.

for policing, published national strategy and operational guidance in

:17:58.:18:00.

this area to ensure promising deals with hate crime effectively. But we

:18:01.:18:06.

must do more to understand the hate crime we are seeing and to tackle

:18:07.:18:10.

it. That is why we will be publishing a new hate crime action

:18:11.:18:14.

plan covering all forms of hate crime, including the xenophobic

:18:15.:18:19.

attacks. We have developed the plan in partnership with communities and

:18:20.:18:22.

departments across Government. It will include measures to increase

:18:23.:18:26.

the reporting of hate incident and crimes, including working with

:18:27.:18:30.

communities and police to develop third-party reporting centres. It

:18:31.:18:36.

will work to prevent hate crime on transport and tackle attacks against

:18:37.:18:39.

Muslim women which we recognise it's an area of great concern to the

:18:40.:18:45.

community. The action plan will also provide stronger victim support,

:18:46.:18:47.

helping put a stop to this behaviour. We also appreciate places

:18:48.:18:54.

of worship are feeling particularly vulnerable at this time and so we

:18:55.:18:58.

have established funding for the security of places of worship, as a

:18:59.:19:02.

note by the Prime Minister last October which will enable places of

:19:03.:19:07.

worship to bid for money to fund additional security such as CCTV or

:19:08.:19:12.

fencing. We also work with communities to encourage them to

:19:13.:19:15.

come forward to reporters crimes and given them the confidence of these

:19:16.:19:19.

crimes will be taken seriously by the police and courts. My noble

:19:20.:19:26.

friends, the Lord Ahmed and Baroness Williams, today visited the porous

:19:27.:19:30.

cultural Centre in Hammersmith which was a victim of disgusting graffiti

:19:31.:19:35.

to express their support. We're working closely with organisations

:19:36.:19:43.

to monitor hate crime incidents as well is working with the national

:19:44.:19:47.

community tensions team within the police to keep community tensions

:19:48.:19:48.

under review. Mr Speaker, the Government is clear

:19:49.:19:59.

that hate crime of any kind must be taken very seriously indeed. Our

:20:00.:20:02.

country's thriving, liberal and modern precisely because of the rate

:20:03.:20:08.

coexistence is of people between different backgrounds, faith and

:20:09.:20:12.

ethnicities. And that's rich coexistence is something we must

:20:13.:20:16.

treasure and strive to protect. We must work together to protect that

:20:17.:20:21.

diversity, to defeat hate crime and uphold the values that underpin the

:20:22.:20:25.

British way of life. And we must ensure that all those who seek to

:20:26.:20:30.

spread hatred and division within our communities are dealt with

:20:31.:20:33.

robust late night the police and courts. I commend the statement to

:20:34.:20:40.

the House. May I begin by extending our sincere

:20:41.:20:45.

condolences to the victims of yesterday's appalling attack in

:20:46.:20:49.

Istanbul. And sending a number, amazing message to the terrorists

:20:50.:20:54.

that they will never prevail. That's and on compromising message. I

:20:55.:20:59.

congratulate the Minister on the statement she has just 11 to the

:21:00.:21:03.

House. Any referendum has the potential to create division within

:21:04.:21:09.

society, this one was no different. We're probably all felt the rising

:21:10.:21:13.

tension on the streets of our constituencies in recent weeks. In

:21:14.:21:17.

the aftermath, it is incumbent on any elected representative to do

:21:18.:21:23.

three things - burst to respect the decision of the people, second to

:21:24.:21:28.

take ahead those decisions, and three to take on and defeat the

:21:29.:21:34.

minority of people who take these occasions to peddle hatred and

:21:35.:21:37.

violence. And that is what this has resulted it today and together.

:21:38.:21:43.

Since last Thursday there is it reports of a fivefold increase in

:21:44.:21:48.

race hate on social media challenges the macro channels. A 57%

:21:49.:21:56.

increase... And already rising tide of hate crime in England and Wales.

:21:57.:22:01.

Last year the police recorded over 15,000 individual hate crimes, most

:22:02.:22:06.

of them racially motivated. An 18% rise on the year before. As you

:22:07.:22:10.

said, perhaps most disturbing of all, are reports of attacks in

:22:11.:22:15.

recent days on individuals and on specific communities. In Huntingdon,

:22:16.:22:19.

cards distributed outside homes and primary schools saying, no more

:22:20.:22:26.

Polish vermin. In Hammersmith, a Polish community Centre, dogs with

:22:27.:22:30.

racist graffiti. On Monday, a report of a Muslim schoolgirl, cornered by

:22:31.:22:37.

people telling her, get out, we voted Leeds. More reports today in

:22:38.:22:47.

Leicester and today in Manchester, footage of a university lecturer

:22:48.:22:50.

being told to go back to Africa by three youths on a tram. As a

:22:51.:22:55.

minister said, at tax on wisdom women, and even reports of women on

:22:56.:23:02.

mobile phones speaking in a foreign language being screamed at in the

:23:03.:23:05.

street. What is happening to the Britain that we have known? This is

:23:06.:23:11.

not taking our country back, this is turning Britain into a place we have

:23:12.:23:16.

never, ever been. Hate crime, by its very nature, is a rejection of the

:23:17.:23:20.

British values that have always bound us together. Non-British

:23:21.:23:26.

nationals living in Britain today will feel worried about their

:23:27.:23:30.

safety. And in need of reassurance. I hope to provide even more in the

:23:31.:23:35.

answers to my questions. I welcome the promise of a new hate crime

:23:36.:23:39.

action plan. Coquelles the House when this plan will be published, it

:23:40.:23:45.

is urgently needed? People in need of that reassurance will need that

:23:46.:23:49.

today. Can she confirm what extra steps will be taken to monitor

:23:50.:23:53.

reports of hate crime across the country, and what immediately advise

:23:54.:23:56.

the Home Office is giving to the police in tackling such instances?

:23:57.:24:00.

Secondly, it is crucial that people know how to report it. Websites you

:24:01.:24:04.

mentioned is very welcome, but I would guess it is not widely known.

:24:05.:24:08.

What action will she take to increase awareness of it? And is

:24:09.:24:14.

there a case for some national advertising to promote it?

:24:15.:24:19.

Confidence to report hate crime will only be felt as people are confident

:24:20.:24:25.

action will be taken against it. People not always are. Can she

:24:26.:24:32.

encourage the House that the police will follow up every single report

:24:33.:24:35.

of hate crime, prosecute wherever possible, and ensure perpetrators

:24:36.:24:41.

peeled the full force of the law. Add to provide further reassurance,

:24:42.:24:43.

is the more the Government can say at this time to provide reassurance

:24:44.:24:49.

to people about the status of their immigration status at this time

:24:50.:24:54.

during negotiations with the European Union. And perhaps prevent

:24:55.:25:02.

some of the more ignorant comments on being made in the street.

:25:03.:25:08.

Finally, is now a case for a more proactive strategy to tackle far

:25:09.:25:12.

right racist extremism. Racist attacks have been on the rise for

:25:13.:25:19.

some time. Isn't it time to take their warnings much more seriously?

:25:20.:25:23.

Can the Minister tell the House whether security services are

:25:24.:25:26.

devoting sufficient resources and attention to this growing threat,

:25:27.:25:31.

and bushy as them to review it? Mr Speaker, it is only ten days since

:25:32.:25:36.

we lost our wonderful friend and colleague, Jo Cox. As the dust

:25:37.:25:40.

settles on this referendum, week continue to have the words of

:25:41.:25:44.

husbands Brendan and the whole point of our minds, that hatred does not

:25:45.:25:50.

have a read, race or religion, it is poisonous. Did she realise that the

:25:51.:25:56.

British public who voted for We did not vote for a intolerance, racist

:25:57.:26:03.

Britain. And both sides of this referendum campaign to make sure

:26:04.:26:06.

that Britain remains the open and welcome place is we know and love.

:26:07.:26:16.

Can I start by joining the right Honourable gentleman in condemning

:26:17.:26:18.

the attacks in Turkey yesterday. Can I also join him in agreeing with his

:26:19.:26:24.

first three points, that we do respect and must all respect the

:26:25.:26:27.

decision taken by the country last week. We do know need to heal those

:26:28.:26:32.

divisions, and we must take on that minority, and it is a very small

:26:33.:26:38.

minority of people that are perpetrating this evil, violence.

:26:39.:26:41.

But they are committing a crime. And I cannot repeat too many times, and

:26:42.:26:47.

not can any of us in this House, this is a crime that needs to be

:26:48.:26:53.

reported, and action will be taken. He talked about reports, and I've

:26:54.:27:01.

heard anecdotal reports of crimes in my own constituency, I have a

:27:02.:27:05.

long-standing policy community in my constituency, I have heard comments

:27:06.:27:11.

that are despicable and cannot be accepted in any way. I repeat, those

:27:12.:27:17.

crimes must be reported, because we cannot tackle this crime if we do

:27:18.:27:21.

not know the scale of it, and we do not know where it is happening. Can

:27:22.:27:26.

I also say that was an excellent response, he commented Mike

:27:27.:27:32.

response, I want a his response. It was excellent. He as when we will be

:27:33.:27:41.

reporting, Rick issuing the new hate crime plan, it will be shortly, but

:27:42.:27:46.

we do want to get it right. I hope you will understand. He asked about

:27:47.:27:51.

reporting, it is very welcome to see an increase in reporting of crimes.

:27:52.:27:55.

It is welcome to see an increasing conviction for his crimes. But we

:27:56.:27:59.

know these crimes are not being reported. I have make this point

:28:00.:28:03.

already, but I wish to reiterate - we need to have the crimes reported.

:28:04.:28:07.

We should welcome an increase in reporting, but we need to see more

:28:08.:28:13.

of it. And he is right, we want every single report to be

:28:14.:28:18.

investigated and taken seriously. I do want to confirm that there is no

:28:19.:28:23.

change in immigration status for anybody here in the United Kingdom,

:28:24.:28:29.

or any UK national living abroad. And he talked about the far right.

:28:30.:28:34.

Our work on hate crime is about all forms of hate crime, and that

:28:35.:28:37.

includes hate crime perpetrated by the far right. There may have been

:28:38.:28:44.

comments about taking back control, or taking back our country. I don't

:28:45.:28:49.

want to take back a country which accept this type of crime happening.

:28:50.:28:53.

That isn't the country I want to be part of. I will make comment about

:28:54.:29:02.

our colleague Jo Cox. She certainly had douche macro -- she said we have

:29:03.:29:10.

more in common, we certainly do. These events are sickening, and it

:29:11.:29:14.

is right that we condemn them wholeheartedly. But to find

:29:15.:29:18.

solutions, they had to be seen as a much broader increase in the last

:29:19.:29:24.

year of the increase in a piece of luggage and behaviour, much targeted

:29:25.:29:27.

at Muslim people and much of that at Muslim women. I think the Minster is

:29:28.:29:34.

doing an excellent job working across Government to tackle this.

:29:35.:29:38.

But does she agree with me that all of us macro here today, as

:29:39.:29:41.

constituency Members of Parliament, have to take responsibility to call

:29:42.:29:47.

out racism when we see it, to tackle it wholeheartedly, to make sure that

:29:48.:29:52.

no racism is accepted in our communities? Will she confirm today

:29:53.:29:57.

that she will be doing more to help the reporting of race crime through

:29:58.:30:02.

third-party organisations, so that we can really get a handle on the

:30:03.:30:07.

size of the problem in our own constituencies and communities?

:30:08.:30:13.

Mr Speaker, my right honourable friend makes so many important

:30:14.:30:18.

points which I agree with. We do need to make sure we see an increase

:30:19.:30:22.

in reporting. This is why we have insisted that hate crime,

:30:23.:30:28.

religiously motivated hate crime, the religion of the victim needs to

:30:29.:30:32.

be recorded, that so we do have that proper picture of what is happening.

:30:33.:30:38.

We do work closely with the community Security trust and other

:30:39.:30:41.

organisations to make sure that we promote that. Was a specific point

:30:42.:30:46.

the right honourable asked about the true vision website. I realise I

:30:47.:30:53.

didn't answer it. In the action plan, extra funding has been

:30:54.:30:55.

allocated and will be available to that website.

:30:56.:31:01.

Can I firstly associate myself with the comments of honourable members

:31:02.:31:04.

across this House and offer my sincere condolences to those

:31:05.:31:09.

affected by the tragic incident in Istanbul. Firstly, reports of a huge

:31:10.:31:16.

increase in racist abuse since the EU referendum are horrid and

:31:17.:31:22.

unacceptable. We have witnessed a 57% rise in xenophobic attacks in

:31:23.:31:26.

the last week. In the wake of particularly vicious anti-immigrant

:31:27.:31:32.

rhetoric of the EU referendum, it has been forgotten that these people

:31:33.:31:36.

are friends and neighbours, and are positive contributors to our

:31:37.:31:40.

society. And in the case of refugees, are people who have come

:31:41.:31:43.

here to submit make better of their lives and the lives of their

:31:44.:31:48.

children. Depictions of swarms, of waves, of immigrants are dangerous,

:31:49.:31:54.

incorrect, and absolutely wrong. The SNP rejects the tone and rhetoric

:31:55.:31:58.

but the debate on immigration and injuring the lead up to the

:31:59.:32:01.

referendum. Instead, we as a party believe that immigration is

:32:02.:32:05.

essential to the strength of economy and our cultural fabric. Promoting

:32:06.:32:12.

tolerance, respect and inclusion, these are values and principles we

:32:13.:32:16.

must foster in a modern and inclusive society. These are the

:32:17.:32:19.

values we are working towards encouraging in Scotland. While this

:32:20.:32:26.

UK Government -- will this UK Government get a grip and follow the

:32:27.:32:30.

example of the First Minister Scotland, the Mayor of London, and

:32:31.:32:35.

make statements directly to citizens of other European countries living

:32:36.:32:38.

here and tell them that they remain welcome here, the UK is a home, and

:32:39.:32:47.

their contributions are valued? Mr Speaker, I... I truly believe

:32:48.:32:56.

that the vast, vast majority of people who voted last week, no

:32:57.:32:59.

matter which way they voted, it did so for the right reasons. And I am

:33:00.:33:08.

sure that the vast majority will be horrified by the deeds of some

:33:09.:33:11.

claiming that they are doing this end their name. They quite something

:33:12.:33:16.

not, it is abhorrent absolutely despicable. We will do everything we

:33:17.:33:23.

can as a Government to make sure that we get hate crime reporting up

:33:24.:33:29.

and we get hate crime investigated properly and appropriately so that

:33:30.:33:33.

victims get the support that they need. I will repeat, she asked about

:33:34.:33:39.

people living in this country, I repeat the point I made earlier,

:33:40.:33:43.

there is no change to any immigration status for anybody in

:33:44.:33:47.

this country. I for one welcome people who are here to contribute

:33:48.:33:51.

and be part of our society and share my values, and want to be part of

:33:52.:33:56.

this country. Before I became a member of this

:33:57.:34:00.

has, I was leader of Bradford Council, so I was familiar with

:34:01.:34:06.

walking streets with councillors of other political parties and with the

:34:07.:34:11.

police but no certainty that they would be there the following day. I

:34:12.:34:14.

never believed I would ever receive a telephone call in Bradford or

:34:15.:34:24.

somebody frightens of their kids being bullied at school. Unless we

:34:25.:34:29.

take action, now, this will eat us alive from the inside. And we do

:34:30.:34:37.

know, in terms of dealing with anti-Semitism and dealing with

:34:38.:34:40.

people against Muslims, that we do need to have a working definition

:34:41.:34:50.

and an understanding. We have a good policy in terms of anti-Semitism,

:34:51.:34:54.

adopted by the police last month, adopted by many countries in

:34:55.:35:00.

remembrance of Holocaust of drivers, we need to make sure that a person

:35:01.:35:04.

going to the police station is great received sympathy. And the most

:35:05.:35:10.

important thing is that prosecutions have to happen. People need to

:35:11.:35:14.

understand that hate crime is a crime.

:35:15.:35:21.

My right honourable friend who has Secretary of State did an enormous

:35:22.:35:26.

amount of work in this area and speaks with great authority, he

:35:27.:35:30.

makes an incredibly important point and I agree with him. We need to see

:35:31.:35:36.

prosecutions increase. We started from a very low base in terms of

:35:37.:35:40.

reporting and prosecuting and successful conviction. We are

:35:41.:35:45.

improving but there is still a long way to go. Could I welcome the

:35:46.:35:52.

Minister's statement can be measured way in which she put her programme

:35:53.:35:56.

forward which I think is the right approach which we should adopt the

:35:57.:36:01.

home affairs committee will meet today and discuss some of these

:36:02.:36:05.

matters to see whether we can enquire into the activities of the

:36:06.:36:08.

far right. Can she tell me how many people have actually been arrested

:36:09.:36:13.

and charged? She mentioned an increase in the number of people

:36:14.:36:19.

reported. As the consistency between police forces? Some will be more

:36:20.:36:25.

experienced than others. What are we doing about Internet companies and

:36:26.:36:28.

their failure to take down tweets that are racist and tweets that

:36:29.:36:34.

ensure people commit these crimes? They are simply not doing enough.

:36:35.:36:43.

The right honourable gentleman asks some detailed technical points, some

:36:44.:36:47.

of which will be for police forces to gather the information, but

:36:48.:36:52.

perhaps if he allows me I will write to him with specific details. His

:36:53.:36:58.

point about Internet companies is incredibly important. We have worked

:36:59.:37:02.

with Internet companies with regard to indecent images of children

:37:03.:37:08.

online. I want to pay tribute to the Internet providers for the work they

:37:09.:37:12.

have done but we simply have not done enough yet, companies and

:37:13.:37:21.

individuals, and we say what is illegal off-line is illegal online

:37:22.:37:25.

but we need those companies and businesses to take responsibilities

:37:26.:37:27.

for the actions of some of those people be allowed to appear

:37:28.:37:31.

anonymously and get away with saying things that are unacceptable. Like

:37:32.:37:39.

many, I am saddened by the recent events and would like to say that

:37:40.:37:45.

Derby is a wonderfully diverse city and I would like to ask the Minister

:37:46.:37:50.

what assurances she can give me that this is being taken into account to

:37:51.:37:53.

protect these minorities and embrace these cultures? I would absolutely

:37:54.:38:00.

agree that Derby is a wonderful city, and not living too far away I

:38:01.:38:05.

get the pleasure of visiting not as frequently as I would like but it is

:38:06.:38:10.

a wonderfully diverse and great city. We are working with

:38:11.:38:13.

communities to ensure that point. The is no one size fits all solution

:38:14.:38:19.

but we need to work with communities and police forces for the right

:38:20.:38:26.

response. Many members will be aware that my constituency sits right next

:38:27.:38:33.

door to Batley and Spen. Yesterday, people in my constituency received a

:38:34.:38:38.

leaflet from the BNP saying Jo Cox took a misguided action by helping

:38:39.:38:42.

Muslims in the country who may now go on to join Isis alongside other

:38:43.:38:52.

horrendous allegations. I then received a significant number of

:38:53.:38:55.

communications from constituents, a seven-year-old Muslim ghetto was

:38:56.:39:00.

told on Friday, and I have removed the expletives, it was the best day

:39:01.:39:07.

ever, go home all of you. I have received a number of similar

:39:08.:39:12.

incidents. I am proud to be British but also proud to be the daughter of

:39:13.:39:20.

a mother who is half Polish. On Monday I asked the Prime Minister

:39:21.:39:24.

about establishing a cross-party commission for investigating hate

:39:25.:39:26.

crimes because the time to act is now. I am shocked by what the

:39:27.:39:37.

honourable lady says. That is utterly unacceptable. I would like

:39:38.:39:47.

to meet her, if she would allow, and perhaps she would discuss a specific

:39:48.:39:50.

action being taken and ensure that any crimes such as those are

:39:51.:39:54.

reported and action taken against them. He racist attack on anyone is

:39:55.:40:04.

an attack on all of us. And on all that makes this a great country.

:40:05.:40:12.

What more can be done following on from the right honourable

:40:13.:40:16.

gentleman's comments? What more can be done to make sure that Facebook

:40:17.:40:22.

and Twitter and other social media player they are large and active

:40:23.:40:28.

part? They are huge international companies that spend lots of money

:40:29.:40:34.

on PR and lobbying. Their primary responsibility at this time is to

:40:35.:40:37.

tackle hate crime. They need to be part of the solution. I agree with

:40:38.:40:44.

everything my honourable friend has said. Like many members I have

:40:45.:40:53.

campaigned in different parts of the world over the years against the

:40:54.:40:57.

abuses of human rights. We have been able to do that because Britain is

:40:58.:41:03.

seen across the globe as a tolerant, liberal community which has always

:41:04.:41:07.

been prepared to protect all parts of our peoples. Does she share my

:41:08.:41:14.

horror that we should find ourselves in a position today where the United

:41:15.:41:17.

Nations High Commissioner for human rights finds it necessary to urge

:41:18.:41:23.

others to act on this? These people are eating away at the fabric of our

:41:24.:41:27.

community from the inside but they also risk diminishing our standing

:41:28.:41:33.

on the world stage. That is why the Minister is right to act in the way

:41:34.:41:37.

she does, but government alone cannot do this. She needs to work

:41:38.:41:42.

with local authorities, civic groups and voluntary organisations to

:41:43.:41:46.

ensure we build the broadest possible coalition against hatred.

:41:47.:41:52.

The right honourable gentleman is right this cannot be solved by

:41:53.:41:55.

government alone but something we all have to act on. The action plan

:41:56.:42:02.

we are working on is a cross government plan but it is across all

:42:03.:42:08.

sectors and all parts of society including civil society, local

:42:09.:42:14.

government and other agencies. As a member of the women and equality

:42:15.:42:18.

select committee I welcome the comments this afternoon, the member

:42:19.:42:26.

from Basingstoke, and I welcome the Minister's important statement. It

:42:27.:42:28.

is absolutely right we do not follow this behaviour to be ignored. It is

:42:29.:42:35.

wrong, pure and simple, and there are no excuses. Can the Minister

:42:36.:42:39.

confirm anybody using the referendum as an excuse to commit hate crime

:42:40.:42:45.

will be made an example of? There will be no hiding spaces, whether

:42:46.:42:50.

online or in workplaces or around religious places of worship? I

:42:51.:42:57.

absolutely agree, there is no excuse for this behaviour at all. As I said

:42:58.:43:07.

early, I know the good, hard-working British people who voted will want

:43:08.:43:12.

nothing to do with this behaviour and certainly will not wanted used

:43:13.:43:20.

as an excuse for it? As you know I have tied thrice to get an urgent

:43:21.:43:27.

question. Would the Minister agree that the scenes of hatred and anger

:43:28.:43:31.

that we are seeing in our country are as a result of the racist,

:43:32.:43:36.

xenophobic and anti-immigration Brexit campaign, and print media

:43:37.:43:44.

such as the Daily Mail, the express and the sun, who over the years have

:43:45.:43:49.

blamed migrant communities for all the problems in our country, and

:43:50.:43:57.

this level of hatred and nastiness towards immigrant communities is

:43:58.:44:00.

what is leading to some of the things happening? Can I therefore

:44:01.:44:05.

ask what will be done to address this type of press coverage, and

:44:06.:44:12.

also, some of the politicians in our country should take responsibility,

:44:13.:44:17.

such as Nigel Farage and the honourable members for Surrey and

:44:18.:44:23.

Oxbridge, who in their campaign would absolutely disgraceful. I

:44:24.:44:28.

greatly respect what the honourable lady has said so I hope she will not

:44:29.:44:34.

be affronted, but it is quite important for the future to be had

:44:35.:44:40.

in mind that we don't refer to unsuccessful applications on the

:44:41.:44:42.

floor of the House and there are very good reasons for that, but I

:44:43.:44:47.

absolutely understand the strength of feeling and considerable

:44:48.:44:51.

knowledge the honourable lady brings to beer. And as some colleagues

:44:52.:44:59.

might know, I indicated to the government it would be helpful today

:45:00.:45:01.

if there would be a ministerial statement on that matter, and I hope

:45:02.:45:07.

the House feels this is a proper exchange under the circumstances.

:45:08.:45:19.

Thank you. We all need to reflect on what happened during the referendum

:45:20.:45:25.

campaign. The result was decisive and we need to respect that result

:45:26.:45:29.

but we should all take a step back and look at what happened and how

:45:30.:45:35.

that campaign was conducted. Can I commend the final sentence of the

:45:36.:45:39.

Minister's statement when she said that we should ensure all those who

:45:40.:45:42.

seek to spread hatred are dealt robustly with by the police and

:45:43.:45:49.

court? An example of a hate crime recently prosecuted in my

:45:50.:45:54.

constituency, and mental health services need to be involved in the

:45:55.:45:58.

period following prosecution if the offending is not to occur.

:45:59.:46:10.

My honourable friend makes a very good point. He is right and I can

:46:11.:46:24.

assure him that we work with mental health specialists and clinicians to

:46:25.:46:26.

make sure there's involvement at all stages. He is right that vulnerable

:46:27.:46:34.

people may misinterpret and misunderstand, and we are all too

:46:35.:46:39.

aware of what the results of that can be. Can I just say that in

:46:40.:46:48.

Birmingham what we are trying to do to deal with these horrific

:46:49.:46:53.

instances that are taking place, if I am coordinating with my colleagues

:46:54.:46:56.

in Birmingham to get the leader of the council, the police Chief

:46:57.:47:02.

Constable and the PCC to come together to deal with these issues.

:47:03.:47:07.

Would she look at issuing guidance to ensure this happens so we can

:47:08.:47:11.

respond to these and deal with the US use as they arise across

:47:12.:47:18.

communities? The decisions about operational policing are matters for

:47:19.:47:23.

chief constables working with Police and Crime Commissioner is, but the

:47:24.:47:30.

example he has Kevin is a good one. Can I congratulate and commend the

:47:31.:47:34.

Minister for not using the word tolerance? I have never thought that

:47:35.:47:39.

on this issue to tolerate people ever goes far enough. We don't have

:47:40.:47:45.

threshold to which we will put up and goes no further so can I thank

:47:46.:47:50.

her for that. Can I encourage her not to have it in the hate crime

:47:51.:47:57.

action plan, but on a day where we saw the scenes outside Parliament

:47:58.:47:59.

last night where there was only positive coverage for what I believe

:48:00.:48:04.

was hate filled chants shows we have an awful long way to go. On a day

:48:05.:48:10.

when colleagues in the Labour Party are getting significant pressure and

:48:11.:48:15.

threats and intimidation because of internal politics, it shows this is

:48:16.:48:19.

not just about the far right, but there's a far left. They've is

:48:20.:48:24.

racism and anti-Semitism and myriad threats to the dangers put back

:48:25.:48:30.

stability of culture and society in this United Kingdom. The honourable

:48:31.:48:35.

gentleman mix some powerful points and they agree with much of what he

:48:36.:48:43.

has said, and it is right. I am not Twitter now and I decided I didn't

:48:44.:48:50.

want to listen to this nonsense. I will go through and check for that

:48:51.:48:58.

point. I welcome the Minister's statement. I come at it from a point

:48:59.:49:04.

of view of having had years of disappointing correlation between

:49:05.:49:09.

those who report and those who receive convection and I wonder

:49:10.:49:12.

whether the Minister can outline for is exactly what resources will be

:49:13.:49:18.

put into the CPS, because as it currently stands really is no way

:49:19.:49:22.

that all of those incidents we are talking about will ever even see the

:49:23.:49:26.

light of day with the CPS under current resources and structure.

:49:27.:49:31.

Also, what support will be given to people in order to find their way

:49:32.:49:34.

through those legal systems, because at the moment, what we are at risk

:49:35.:49:40.

of doing is opening an enormous door onto an empty room. The honourable

:49:41.:49:51.

lady I know has experienced far more than her share of abuse online, and

:49:52.:49:55.

she is a style worked for standing up and being there and still being

:49:56.:50:00.

Twitter. I am not quite sure why she is! I spoke to the Solicitor General

:50:01.:50:05.

before I came into this statement to make sure he heard exactly that

:50:06.:50:12.

point. The CPS really needs to take this seriously and we need to see

:50:13.:50:16.

prosecutions and convictions. It is very important people are punished

:50:17.:50:17.

for these crimes. In the statement and her very clear

:50:18.:50:26.

commitment to do all she can to crack down on this appalling a

:50:27.:50:31.

crime. There was a report that said real terms of funding police forces

:50:32.:50:37.

has been reduced by an average 18% from 2015. The same report noted

:50:38.:50:40.

that the department does not have good enough information to work out

:50:41.:50:44.

by how much it can reduce funding without degrading services. Can I

:50:45.:50:50.

ask Eric did you know how many services to support victims of hate

:50:51.:50:54.

crime higher at risk of being lost have already been lost, and what can

:50:55.:51:00.

she do to remedy that? The prevalence of hate crime is not

:51:01.:51:07.

on an upward trend. The prevalence, according to the crime survey, as on

:51:08.:51:12.

a stable or downward trend depending on the type of hate crime. What's we

:51:13.:51:17.

do see more certain types of hate crime, and were seen more reporting

:51:18.:51:22.

of hate crime. The reporting of hate crime and prosecutions of hate crime

:51:23.:51:26.

are to be welcomed, we need to see more reporting - I am very clear,

:51:27.:51:29.

the difference between prevalence and reporting is still a very big

:51:30.:51:33.

gap, we need to make sure there is more reporting. In terms of services

:51:34.:51:38.

to victims, hate crime action plan has very specific measures on

:51:39.:51:42.

victims, and hope she will come back to it when it is released and we can

:51:43.:51:49.

discuss it then perhaps. And in centric device was thrown

:51:50.:51:55.

into a halal butchers shop in my constituency. There is a photograph

:51:56.:51:59.

in the Guardian today the inside of the shop. Can the Minister confirm

:52:00.:52:04.

how much extra funding will be available for local police forces so

:52:05.:52:08.

that they can investigate and tackle these crimes?

:52:09.:52:13.

Again, another shocking example. I dread to think how many of us do

:52:14.:52:19.

know of anecdotal of this kind of incident. I do hope that it has been

:52:20.:52:23.

reported and I look forward to hearing from her about the outcome

:52:24.:52:30.

of that. In terms of funding, etc, perhaps we could come back to this

:52:31.:52:33.

when the hate crime action plan has been published.

:52:34.:52:41.

I was with North Wales Police on night shift last weekend. It was

:52:42.:52:46.

made evident to me that people from ethnic minorities - and I would

:52:47.:52:49.

emphasise this is not anecdotal - they are often afraid to report hate

:52:50.:52:55.

crime. I am sure we are united in praising the courage of those who

:52:56.:53:00.

call out racial hatred. I welcome third-party reporting centres in the

:53:01.:53:03.

hate crime action plan, and would like to ask where and when will this

:53:04.:53:08.

be? Whether the accessible to all amenities, as racism is not a risk

:53:09.:53:12.

to some of our society, but I criticised it as a whole?

:53:13.:53:17.

There are various ways in which hate crime can be reported and are

:53:18.:53:20.

available to all communities. But the true vision site is a place that

:53:21.:53:26.

people can go to without fear. It is not like walking into police station

:53:27.:53:29.

are making a call. There will be additional funding for it.

:53:30.:53:34.

As someone who grew up experiencing some considerable racism and

:53:35.:53:41.

Islamophobia, I am utterly shocked by what we see. My parents'

:53:42.:53:46.

generation are even more shocked and second, could because they thought

:53:47.:53:52.

we had conquered that level of racism. -- second. Does she agree

:53:53.:53:56.

with me that some other national leaders have been absolutely

:53:57.:54:01.

disgraced in playing the anti-immigration card. We need to

:54:02.:54:07.

have a conference was our political leaders to make sure that will not

:54:08.:54:11.

happen again in the future. Politicians need to take

:54:12.:54:12.

responsibility when they have acted irresponsibly. Secondly, British

:54:13.:54:18.

forests and other far right organisations have, even before the

:54:19.:54:23.

referendum, and in the run-up to the campaign, targeted constituencies

:54:24.:54:26.

like mine, masks and other institutions in acts of Prosser but

:54:27.:54:31.

provocation to wilfully cause disorder. And as a lack of order

:54:32.:54:40.

police services and ineptitude in legal provision to tackle these

:54:41.:54:42.

hateful groups but trying to start up intolerance and violence in our

:54:43.:54:46.

communities. Would you take action immediately. And also insist that

:54:47.:54:52.

the Prime Minister leads this debate and make sure that we actually step

:54:53.:55:00.

up to the plate? Mr Speaker, I agree with horror. We

:55:01.:55:05.

all thought this was something we had left behind us. It is shocking

:55:06.:55:09.

that that has proved not to be the case. I agree with horror that, as

:55:10.:55:14.

politicians, we all have the responsibility to be measured and

:55:15.:55:18.

responsible in our language and in what we say and the actions we take.

:55:19.:55:23.

We must never, ever try and picked one race against another, when

:55:24.:55:27.

gender against the other, when sexuality against the other, that is

:55:28.:55:33.

utterly irresponsible. She asked about the far right extremism in her

:55:34.:55:42.

constituency. Our counter extremism strategies have specific measures to

:55:43.:55:45.

deal with the extremism of all forms. I think people looked at the

:55:46.:55:50.

counter extremism strategy and thought it was just about Islamic

:55:51.:55:54.

extremism, it is not, it is about all forms of extremism. Including

:55:55.:55:58.

neo-Nazi and far higher right extremism as well. I hope the people

:55:59.:56:08.

going to consult with on the Bill will address that.

:56:09.:56:17.

The attendance at Westminster includes some of the deepest breadth

:56:18.:56:28.

of races and European Community is. We have people reporting their

:56:29.:56:31.

fears. We know from the report mentioned earlier today that 61% of

:56:32.:56:36.

the victims of hate crimes are women. With the hate crimes report

:56:37.:56:41.

include a specific reference to how we can identify and support women

:56:42.:56:45.

who are targets of hate crime and ensure that they are reporting all

:56:46.:56:50.

of the incidents that are occurring to them?

:56:51.:56:55.

The honourable lady makes a good point, I can confirm that the hate

:56:56.:56:58.

crime action plan looks all victims to make sure that there are specific

:56:59.:57:02.

support and measures in place for them.

:57:03.:57:08.

I have spoken to the South Wales Police and Crime Commissioner this

:57:09.:57:12.

morning about how we respond to some of the incidents that I regretfully

:57:13.:57:16.

spoke to the chamber about the other day. Will the Minister make

:57:17.:57:20.

absolutely clear there is no hierarchy of hate crime, whether it

:57:21.:57:25.

is against Jews, Muslims, Hindus, gays, straight, men or women,

:57:26.:57:29.

weather comes from the far rate or indeed the far left, it is the same

:57:30.:57:31.

thing can have the same consequences. We do not stand for

:57:32.:57:39.

it, we must take action. And we make sure that those who condone or

:57:40.:57:43.

encourage it, wherever they come from, must also take responsible to?

:57:44.:57:49.

I absolutely agree with him. We have just come out of a fortnight

:57:50.:57:53.

in Scotland celebrating the contribution of refugees to our

:57:54.:57:56.

society. It was a wonderful celebration which we can be proud

:57:57.:57:59.

of. Was he joined me in condemning those people who are affixed

:58:00.:58:04.

neo-Nazi, racist and homophobic stickers in Glasgow city centre?

:58:05.:58:14.

I do join her in condemning that behaviour.

:58:15.:58:22.

The Polish cultural centre in Hammersmith has received hundreds of

:58:23.:58:30.

supporters cards and e-mails following the events of last

:58:31.:58:35.

weekend. Particularly nearby children from primary schools turned

:58:36.:58:40.

up en masse to show their solidarity. Will the secretary of

:58:41.:58:47.

state echoed the message left by the mother of the children, we love you,

:58:48.:58:58.

yay, the Polish! There are legion British people who embrace

:58:59.:59:03.

immigrants communities? I absolutely agree with him, he

:59:04.:59:06.

makes a very good point. This feels like one of those where were all the

:59:07.:59:12.

green, that's great! I have to tell him my right arm row friend sitting

:59:13.:59:16.

next to me has mentioned that this may be the first time he is in full

:59:17.:59:18.

agreement with the honourable gentleman!

:59:19.:59:26.

Hate crime has been suddenly growing for a number of years, and it does

:59:27.:59:29.

seem that for a small minority of people on the fringes, the aspects

:59:30.:59:35.

of the referendum campaign have legitimised some pretty repugnant

:59:36.:59:43.

and approaches views. -- atrocious views on the Minister say a bit more

:59:44.:59:48.

about what the Government is doing to provide confidence measures

:59:49.:59:51.

within those communities that are feeling bruised right now. It is

:59:52.:59:55.

important we do build confidence amongst those people, so that they

:59:56.:00:00.

understand that they have a role, a vital role to play in British

:00:01.:00:05.

society? The honourable gentleman is absolute

:00:06.:00:08.

right, they all have a valuable role to play in British society. I think

:00:09.:00:14.

he also referred to something that I think is one of the phenomena we see

:00:15.:00:22.

online, that online can be anonymous, but is also socialising

:00:23.:00:25.

and normalising of behaviour that would never be acceptable in any

:00:26.:00:30.

other form. And we need to fight back against that and make it clear,

:00:31.:00:34.

this is a normal, it is certainly not something that should be

:00:35.:00:41.

accepted. I'm very pleased to see the minister

:00:42.:00:46.

recognised importance of training and the joint strategy between the

:00:47.:00:50.

CPS and police. As a former consul I can tell my experience was very poor

:00:51.:00:55.

of training around these areas. Can I suggest you bring in an external

:00:56.:00:59.

organisation to look at the training that is put in place, and

:01:00.:01:02.

investigate how seriously they may take less?

:01:03.:01:07.

I wonder if the honourable lady would be willing to meet me and

:01:08.:01:11.

discuss her personal experience of this, because I would like to hear

:01:12.:01:14.

what is going on underground as much as she would probably like to tell

:01:15.:01:21.

me. Last weekend, my neighbour, a mum of

:01:22.:01:26.

two, and a woman of Caribbean heritage, tell me she felt homeless

:01:27.:01:31.

following the results of the referendum last week. Can the

:01:32.:01:37.

Minister tell me what specific resources will be available to the

:01:38.:01:42.

Metropolitan Police to engage with those communities experiencing a

:01:43.:01:46.

rise in hate crime? And will she agree with me at all of us must do

:01:47.:01:51.

absolutely everything we can to ensure that children in places like

:01:52.:01:55.

Lewisham can grow up in a country which is respectful and inclusive?

:01:56.:02:03.

Is she'll forgive me, could I write her with the specifics of what is

:02:04.:02:06.

happening within the Metropolitan Police? We labour and many police

:02:07.:02:13.

forces, and I don't want to provide information that is not strictly

:02:14.:02:18.

accurate and correct. I do agree with her on her points, this is a

:02:19.:02:23.

great country, I'm incredibly proud of being British, it is going to

:02:24.:02:29.

continue to be a great country, irrespective of the referendum

:02:30.:02:32.

results. But like the country I'm part of that is not a country that

:02:33.:02:38.

except this type of behaviour. I'm extremely grateful to the

:02:39.:02:43.

Minister for her statement to colleagues for what they have said.

:02:44.:02:48.

Point of order? On page 49 of Erskine May, it refers

:02:49.:02:54.

to the official opposition as the largest minority party which is

:02:55.:02:58.

prepared, in the event of the resignation of Government, to issue

:02:59.:03:03.

power. Mr Speaker, the current opposition has lost two thirds of

:03:04.:03:08.

its shadow cabinets, as leader and what into the front bench no longer

:03:09.:03:12.

command the confidence of the majority of its backbench. It is

:03:13.:03:18.

clearly in no shape to issue power and unable to meet these key

:03:19.:03:22.

responsibilities and obligations as outlined in Erskine May. Mrs Baker,

:03:23.:03:27.

given these obvious failings, what steps will now have to be taken to

:03:28.:03:31.

have this official opposition replaced with one that can meet the

:03:32.:03:34.

responsibilities that are set out very clearly in Erskine May?

:03:35.:03:41.

I am familiar with Erskine May on this matter, as the honourable

:03:42.:03:45.

gentleman would expect. And I am genuinely grateful to him for giving

:03:46.:03:50.

me notice of his point of order. I can confirm that the Labour Party

:03:51.:03:57.

currently constitute the official opposition, and that it leader is

:03:58.:04:05.

recognise by me for statutory and parliamentary purposes as the Leader

:04:06.:04:11.

of the Opposition. He will have noticed that I called the Leader of

:04:12.:04:17.

the Opposition earlier to ask a series of questions to the Prime

:04:18.:04:19.

Minister. The honourable gentleman will also be aware that today we

:04:20.:04:26.

have opposition business, duly chosen by the Leader of the

:04:27.:04:30.

Opposition as indicated on the order paper. I should perhaps add that in

:04:31.:04:38.

making these judgments, and pronouncing in response to points of

:04:39.:04:44.

order, I do give, and have given, thought to the matter, and I have

:04:45.:04:49.

also benefited from expert advice. These matters are not broached

:04:50.:04:54.

lightly. I understand the vantage point from which the honourable

:04:55.:04:58.

gentleman speaks, but he raised the question, and I have today given him

:04:59.:05:04.

the answer. We'll leave it there for now. If there are no further points

:05:05.:05:15.

of order, we will shortly be moving on to presentations of bills. When I

:05:16.:05:22.

have left the chair and been replaced.

:05:23.:05:32.

We now come to presentation of bills. Mr John Nicholson. Sections

:05:33.:05:54.

offences pardons bill. Second reading what they? 21st October. Mr

:05:55.:06:06.

Bob Blackman. Homelessness reduction bill. Second reading what they?

:06:07.:06:12.

Friday 28th October. National minimum wage workplace

:06:13.:06:26.

internship Bill. Second reading what they? Friday 4th of November. Pat

:06:27.:06:40.

Glass. Parliamentary constituencies Amendment Bill. Second reading what

:06:41.:06:52.

they? 18th of November. On behalf of of Gareth Johnson. Awards for valour

:06:53.:07:02.

protection Bill. Second reading, what day? . 25th November.

:07:03.:07:16.

Benefit claimants sanctions required assessment Bill. Second reading,

:07:17.:07:19.

what day?. Second December. Preventing and combating violence

:07:20.:07:35.

against women and domestic violence ratification of Convention Bill.

:07:36.:07:39.

Second reading, what day?. 16th of December.

:07:40.:07:50.

Families with children and young people in debt risk Bill. Second

:07:51.:07:55.

reading, what day? 28th October. Registration of marriage bill.

:07:56.:08:11.

Second reading, what day? 21st October. James Morris. Assets of

:08:12.:08:24.

community value Bill. Second reading, what day? 25th November.

:08:25.:08:36.

Roger Mullin. Double taxation treaties, developing countries Bill.

:08:37.:08:39.

Second reading, what day? 16th of December.

:08:40.:08:50.

Farriers registration Bill. Second reading, what day? 13th of January

:08:51.:09:07.

20 16. -- 2017. Parking places aviation of charges Bill. Second

:09:08.:09:10.

reading, what day? 25th November. Disability equality training, taxi

:09:11.:09:28.

and private hire a vehicle drivers Bill. Second reading, what day?

:09:29.:09:31.

Radiating is November. Gang masters licensing and labour

:09:32.:09:47.

use authority Bill. Second reading, what day? Fourth November.

:09:48.:10:01.

International trade and investment NHS protection Bill. Second reading,

:10:02.:10:04.

what day? Second December. Kew Gardens leases Bill. Second

:10:05.:10:16.

reading, what day? 18th of November. Merchant shipping homosexual conduct

:10:17.:10:36.

Bill. Second reading, what day? 20th January.

:10:37.:10:50.

Counterterrorism and security act 2015 Amendment Bill. Second reading,

:10:51.:10:54.

what day? 27th of January. Child poverty in the UK, target for

:10:55.:11:11.

a reduction Bill. Second reading, what day? Third February, 2017.

:11:12.:11:25.

Order. We now come to the opposition Day motion in the name of the Leader

:11:26.:11:37.

of the Opposition. I call Mr John McDonnell to move the motion.

:11:38.:11:42.

Calm down. Can I first of all welcome the chance or's presents to

:11:43.:11:56.

the House. I have been critical of his nonattendance in recent debates,

:11:57.:11:59.

but I have to say, this is the one day I thought he might be too busy

:12:00.:12:06.

elsewhere. Can I also say, I commend his financial secretary who over the

:12:07.:12:13.

last few days, in excruciating pain with his bad back, has dealt

:12:14.:12:16.

competently and courteously with the Finance Bill. In this role at times,

:12:17.:12:23.

sometimes we all have to watch your backs. OK, although, Madam Deputy

:12:24.:12:39.

Speaker, this is an opposition day debate, to be frank, this is no time

:12:40.:12:44.

for partisan ship and party political game playing when the

:12:45.:12:46.

country is facing such serious challenges. Let me suggest the tone

:12:47.:12:52.

of this debate should be one of honest critique but constructive

:12:53.:12:59.

engagement. Yes, we have to be honest in our assessment of the

:13:00.:13:02.

economy but constructive and there are questioning and also on our

:13:03.:13:07.

proposals for the future. The country will expect us all to work

:13:08.:13:14.

together, not uncritically but cooperatively and times of

:13:15.:13:15.

unprecedented political and economic turmoil. The honourable gentleman

:13:16.:13:22.

talks about critically and uncritically but the criticism I

:13:23.:13:26.

have visit seems to me a fact that the Chancellor promised an emergency

:13:27.:13:31.

budget the referendum. He lost on that because there will be no of

:13:32.:13:35.

urgency budget. Thinking back to Scotland, given he'd lost once, I

:13:36.:13:40.

think you've lost on the pound in Scotland. How would he answer that?

:13:41.:13:50.

To be frank, we need to move on. I expressed my concerns about some of

:13:51.:13:54.

the over exaggerated claims at the beginning of the campaign that turns

:13:55.:14:00.

people off. We now know that many of the claims made on both sides

:14:01.:14:02.

unfortunately are coming through tonight. The Leave vote has left us

:14:03.:14:12.

all with an immense... If I can press on, has left us with an

:14:13.:14:17.

immense series of tasks and the economic situation alone is a major

:14:18.:14:21.

challenge for us all. I will come back to you. Can I go through some

:14:22.:14:29.

of the headlines we know about. The triple-A credit rating of the UK has

:14:30.:14:33.

been lost, the pound fell to a 31 year low, the FTSE 100 index

:14:34.:14:43.

registered the biggest single day fall since 2008, employers most

:14:44.:14:49.

notably in the financial services are already looking to relocate

:14:50.:14:56.

jobs, and a quarter of all those employers have introduced a hiring

:14:57.:15:01.

freeze, share prices have fallen dramatically, and this is just an

:15:02.:15:05.

outline of the situation as it stands. Will he welcomed the fact

:15:06.:15:11.

that the bond markets that the opposite of what the ratings agency

:15:12.:15:16.

suggested? They suggested the cost of state borrowing should go up but

:15:17.:15:21.

I am pleased to tell him that the opposite happened, bonds are at an

:15:22.:15:25.

all-time high and we have record lows of borrowing costs. Doesn't

:15:26.:15:29.

this prove the market has had a huge vote of confidence? It proves the

:15:30.:15:35.

chaotic nature of the market at the moment. Can a look ahead, most major

:15:36.:15:41.

forecasters have revised forecasts of growth sharply down words. There

:15:42.:15:49.

is a major growth -- damage to growth, and we will wait as the

:15:50.:15:53.

Chancellor announced in his Monday morning statement, on an official

:15:54.:15:59.

statement from the budget for fiscal responsibility. Ongoing close

:16:00.:16:07.

monitoring would be welcome and regular reports to Parliament to

:16:08.:16:12.

ensure that. They arrest the prospect that the OBE or will report

:16:13.:16:14.

a serious worsening in public finance. What assessment has my

:16:15.:16:20.

honourable friend made of the Chancellor's statement a couple of

:16:21.:16:24.

days ago when he said taxes may have to go up and there might have to be

:16:25.:16:30.

further cuts? Isn't this further austerity only British people? Let

:16:31.:16:34.

me come to that later in the speech because I want to deal with the

:16:35.:16:42.

statement on Monday. It is essential in a situation like this that we

:16:43.:16:47.

introduce some clarity. It is great uncertainty on the part of those

:16:48.:16:51.

feeling for their jobs and for the volatility of the financial markets

:16:52.:16:56.

of the last few days. It is for the whole house to secure some clarity

:16:57.:16:59.

and a clear sense of direction. I want to clarify why the referendum

:17:00.:17:05.

result has led to the situation. There were warnings a vote to leave

:17:06.:17:10.

would lead to this shock. Economic forecasting is never an exact

:17:11.:17:16.

science but any forecaster with credibility pointed to some shot

:17:17.:17:22.

from a Leave vote. These warnings should have been heeded. I believe

:17:23.:17:28.

it was responsible for those campaigning for Leave not just to

:17:29.:17:31.

gloss over them but to make the claim that a Leave vote would lead

:17:32.:17:41.

to positivity. The shock is significant and could worsen. We

:17:42.:17:44.

welcome the commitment from the Governor of the Bank of England to

:17:45.:17:47.

take steps to extend the core liquidity to banks and prepare for

:17:48.:17:53.

further measures. We welcome the statement from the Chancellor, that

:17:54.:18:00.

he has been in urgent consultation over the weekend with those in the

:18:01.:18:04.

financial industry, and we will support measures to stabilise the

:18:05.:18:09.

market and dampen volatility, but with the firm caveat that these

:18:10.:18:16.

measures should not impose costs on households and small businesses.

:18:17.:18:20.

Despite earlier statements the Chancellor has ruled out his

:18:21.:18:25.

previous emergency budget until the fiscal position is made clear. This

:18:26.:18:32.

is to be strongly welcomed. To move forward we need to be honest about

:18:33.:18:36.

assessment of the current situation to ensure the correct remedies are

:18:37.:18:42.

agreed on in the future. We do not share the Chancellor's assessment of

:18:43.:18:50.

the brother economic fixture. His view realised triviality and the

:18:51.:18:55.

Leave vote is having a greater impact because the roof hasn't been

:18:56.:19:06.

fixed. I thank him for giving way and I agree with the way he has

:19:07.:19:10.

approached the debate. The employment rate in our country is at

:19:11.:19:16.

a record high and capital requirements for the banks are some

:19:17.:19:19.

ten times what they wear and the budget deficit is down from 11% to

:19:20.:19:26.

3% this year and that is what I think the Chancellor was talking

:19:27.:19:30.

about when he spoke about fixing the roof, so what position does he think

:19:31.:19:34.

the economy would be in now if we didn't take those measures? I

:19:35.:19:38.

remember the Chancellor promising as the deficit would be eradicated last

:19:39.:19:43.

years and can I see some of those jobs are unfortunately insecure and

:19:44.:19:49.

in low pay, but we welcome the capital requirements with regards to

:19:50.:19:54.

banks if you can accept that. At the centre of the pessimistic assessment

:19:55.:20:01.

we are seeing was the stagnating productivity, and it has been

:20:02.:20:07.

members on all sides who said this. On the latest data, productivity in

:20:08.:20:12.

the UK has not grown, the worst performance of any G-7 economy and

:20:13.:20:15.

it means today on average for every hour worked in the UK, it is one

:20:16.:20:20.

third less productive than the average hours worked in the US,

:20:21.:20:25.

Germany or France. Stagnation in productivity and that has happened

:20:26.:20:26.

under less Chancellor. And in long-term strategy has

:20:27.:20:36.

failed, as is no basis for long-term growth.

:20:37.:20:39.

We need a comrade is a strategy to deal with the contents of crisis. --

:20:40.:20:45.

content of strategy. Growth over the last two years has relied on certain

:20:46.:20:51.

things. There been a large number of jobs created, that they have been

:20:52.:20:54.

prepaid and insecure. Secondly we have grown more and more dependent,

:20:55.:20:59.

unfortunate, and wholesale borrowing. We have not yet hit the

:21:00.:21:04.

level of 2008, with the office of budget responsible to forecast

:21:05.:21:11.

predicts an unprecedented five- year period of household debts. At the

:21:12.:21:15.

same time as our deficit with the rest of the world, current account

:21:16.:21:19.

deficit, has widened to the high-dose level, the highest level

:21:20.:21:24.

of current-account deficit since the 18th century. 70% of GDP, the

:21:25.:21:30.

largest deficit of any major economy. To finance the gap, the

:21:31.:21:39.

sale of UK assets have reached record levels, alongside asset sales

:21:40.:21:43.

to the rest of the world on a range of facilities. Some of which have

:21:44.:21:46.

been objected to significantly in this House. The UK now has, relative

:21:47.:21:52.

to GDP, the largest debt owed overseas of any major developed

:21:53.:21:56.

country. We have been able to finance this Deva said, despite

:21:57.:22:01.

productivity growth, because of what Mark Carney said in recent lecture,

:22:02.:22:06.

the kindness of strangers. -- finance this debt.

:22:07.:22:13.

Would he also agreed that the way in which the current-account deficit is

:22:14.:22:17.

being funded is essentially high foreign direct investments,

:22:18.:22:20.

including the purchase by Chinese organisations of assets here, how

:22:21.:22:25.

then does that relate to Britain taking back control?

:22:26.:22:29.

We have consistently argued in this House on the side against the acid

:22:30.:22:35.

cells that have taken place. This has been described as selling the

:22:36.:22:39.

family silver. Actually been selling the fabric of the building itself

:22:40.:22:45.

will stop investors in the rest of the world had been willing to

:22:46.:22:48.

overlook some of the fundamentals of our economy in the belief that this

:22:49.:22:51.

country is politically stable, has secured banks, and has a booming

:22:52.:22:55.

property market. Overseas investors have been buying outskirts and

:22:56.:23:01.

lending money on a grand scale because of this. This kindness of

:23:02.:23:07.

strangers is now in short supply after the League vote. The

:23:08.:23:11.

confidence of international investors in the UK's position has

:23:12.:23:17.

been undermined. I welcome his focus on this point.

:23:18.:23:22.

This is my biggest worry, personally, that we are dependent on

:23:23.:23:27.

investments, and it is a significant wrecks. Does he agree that whatever

:23:28.:23:33.

happens in the negotiation, the single most important message to

:23:34.:23:36.

come out of it is that we're still an open economy, and we will not

:23:37.:23:40.

resort to protectionism? I fully agree, and a echo the

:23:41.:23:44.

Chancellor's statement on Monday that this country is open for

:23:45.:23:47.

business, and we have to repeat that time and time again on all sides of

:23:48.:23:51.

this House to make sure we retain confidence as best we can. I will

:23:52.:23:55.

press on and come back to the honourable gentleman. I have to say

:23:56.:24:02.

that, with the uncertainty of the UK's relationship to the rest of the

:24:03.:24:06.

world, the confidence of international investors has been

:24:07.:24:08.

undermined, and we have to recognise that. I regret that the

:24:09.:24:12.

current-account deficit has not been addressed up until now. To do so

:24:13.:24:18.

would have required a restructuring of our recon me. We would have

:24:19.:24:22.

needed, to be frank, an industrial strategy to develop and support our

:24:23.:24:25.

key industries. I say to the Government they must now bring

:24:26.:24:29.

forward a comprehensive industrial strategy to support those key

:24:30.:24:32.

industries and Labour Party for future growth.

:24:33.:24:37.

Thank you for giving way. -- Labour Party for future growth. Does the

:24:38.:24:43.

honourable gentleman welcome the fact that the Speaker of the House

:24:44.:24:47.

of Representatives has today called Brown media talks between the United

:24:48.:24:54.

States and the UK on setting a trade deal so that when we exit the EU

:24:55.:24:59.

there will be a trade deal with the United States. And also the

:25:00.:25:04.

statements from the Indian Government so that we can ensure

:25:05.:25:07.

there is no interruption to the UK economy?

:25:08.:25:12.

It has to be recognised that the trading relationship with India,

:25:13.:25:15.

although growing, is relatively still small. I recognise the

:25:16.:25:23.

negotiations that are taking place. Over the last decade, the timescale

:25:24.:25:26.

in which those trade agreements were secured, to be frank, they are

:25:27.:25:31.

lengthy, and at the end of the day don't necessarily, by an individual

:25:32.:25:37.

statement of negotiations on the run, actually achieve the best

:25:38.:25:41.

efforts of that country that they might have achieved within a trading

:25:42.:25:48.

bloc. I will press on and come back. The simplest expiration for these

:25:49.:25:55.

decisive economic weaknesses is people a state of investment in the

:25:56.:26:03.

UK. -- poor to an basement. Investment is in decline and falling

:26:04.:26:10.

further. The economic uncertainty is being reported to deter investment.

:26:11.:26:14.

This poll on investment by business is being worsened by the

:26:15.:26:18.

Government's plans to cut its own investment. Current investment and

:26:19.:26:21.

current projections is set to fall by the end of the decade. Without

:26:22.:26:26.

sustained investment, both private and Government, we will not be able

:26:27.:26:28.

to address the economic decline lighting too much of our country.

:26:29.:26:35.

Thank you for giving way. The honourable gentleman has talked

:26:36.:26:39.

about the need for industrial strategy. Clearly, the Government

:26:40.:26:43.

has said that important strategies for life sciences, key industries

:26:44.:26:47.

like that. At the Northern Powerhouse as well. Given the

:26:48.:26:50.

challenges we are facing and the importance of that continuing need

:26:51.:26:54.

to rebound the economy, or the opposition now fully get behind the

:26:55.:26:58.

Government plans to rebalance the economy and take forward the

:26:59.:27:01.

Northern Powerhouse that they have been critical of in the past?

:27:02.:27:06.

We have welcomed initiative to try and rebalance the economy. The

:27:07.:27:11.

problem has been the success rate. In the pipeline, the investment

:27:12.:27:14.

pipeline that was announced by the Chancellor several years ago, is

:27:15.:27:20.

less than 20% success. The 20 billion that was meant to come, only

:27:21.:27:28.

1 billion has so far, five years on. I think the Government announces

:27:29.:27:31.

well, but does not implement very well. That is too much Government by

:27:32.:27:38.

press release. I will press on and come back to the honourable

:27:39.:27:42.

gentleman. I think it's important that we recognise the economic

:27:43.:27:47.

decline and regional inequality and despaired that it has produced

:27:48.:27:52.

contributed to so many voting League. Some are concerned that the

:27:53.:27:58.

shock to business with Bush the entire economy into recession again.

:27:59.:28:02.

So could I call again for a programme, a fresh programme of

:28:03.:28:07.

Government investment, bringing forward a share of projects in those

:28:08.:28:11.

areas hardest hit by long economic decline. I give way.

:28:12.:28:21.

I am most grateful. I just wanted, in the spirit of the conversation

:28:22.:28:24.

taking place this afternoon, to say that in terms of some of the

:28:25.:28:28.

northern cities such as my city of Leeds, that has been considerable

:28:29.:28:39.

action taking place. The station opened last week, and half ?1

:28:40.:28:44.

billion of gone into projects within Leeds. I understand the politics of

:28:45.:28:48.

the situation, but please understand that some of great northern cities

:28:49.:28:52.

have had some real investment. We must not talk down some of the

:28:53.:28:56.

success that has happened, but at the same time the success has not

:28:57.:29:01.

been on this scale, it is not been on the skill to rebalance the

:29:02.:29:04.

economy as promised. As a result of that, I have two admits there is

:29:05.:29:11.

disillusionment in a section of the electorate, and as a result voted

:29:12.:29:15.

for Leave. Amenities have been left behind. I felt that as a result of a

:29:16.:29:19.

lack of investment, certainly in recent years.

:29:20.:29:26.

Witty agree with me that it would be a huge boost to the British economy

:29:27.:29:32.

if the ?60 billion initiative for the expansion of Heathrow went and

:29:33.:29:37.

ready support my view for a free vote on the issue?

:29:38.:29:40.

You have to get the honourable member his due, he chances his arm!

:29:41.:29:47.

I'm sure that is a need for investment in selected investment in

:29:48.:29:56.

aviation. We are short of time, I will push on. The answer is that

:29:57.:30:02.

whenever the aviation expansion takes place, it will be judged by

:30:03.:30:05.

the criteria that this party on the side of the House has selected,

:30:06.:30:08.

which includes its environmental impact as well as the economic

:30:09.:30:14.

impact. So we await the proposals of Government, and we will then take

:30:15.:30:19.

that decision. If I can press on. Can I just come to some immediate

:30:20.:30:28.

next steps. There is debate on the best course of action for the future

:30:29.:30:34.

economic policy. There are immediate steps that can be taken to calm

:30:35.:30:39.

market volatility. It is incumbent on the Government now to take the

:30:40.:30:44.

necessary measures. And Labour, in the national interest, will support

:30:45.:30:46.

measures intended to stabilise the economy where they protect

:30:47.:30:52.

households and businesses. So I'm monetary policy, of course,

:30:53.:30:56.

authority rests with the Bank of England to intervene, to protect the

:30:57.:31:00.

stability of banks and the wider economy. And Governor Mark Carney

:31:01.:31:05.

morning statement was important in helping to stabilise the situation.

:31:06.:31:08.

However some interventions by the bank will require authorisation by

:31:09.:31:16.

the Government. It will help to ensure the success of these

:31:17.:31:22.

interventions in the House is kept informed and provided regular

:31:23.:31:25.

updates. On fiscal policy, the expected slump in demand, the

:31:26.:31:28.

Government's present fiscal charter is increasingly anachronistic. The

:31:29.:31:34.

Chancellor has missed two Maccabees three targets on debt and the

:31:35.:31:38.

wealthier camp. He will have to suspend though welfare target. It is

:31:39.:31:46.

now impossible to defend. For the regions, a squeeze on Government

:31:47.:31:50.

investment could now be especially damaging. Last year, and this was

:31:51.:31:57.

raised in earlier questions, ?10 billion was provided in regional

:31:58.:32:02.

funding, provided by the EU. As was concentrated on our most deprived

:32:03.:32:04.

regions and places that needed it most. Can I ask what steps is the

:32:05.:32:08.

Government taking to ensure that essential funding will now be made

:32:09.:32:12.

good? Can I ask what structures have been put in place to liaise with the

:32:13.:32:16.

elected mayors and local government leaders to address the loss of EU

:32:17.:32:23.

funds? The UK also currently holds a 60% state in the European investment

:32:24.:32:30.

bank -- 16% which included investment in the United Kingdom.

:32:31.:32:37.

Can I ask the Chancellor what steps the Government is taking... On

:32:38.:32:48.

trade,... Can I just press on? I'm worries about time. Entrees, there

:32:49.:32:54.

are significant uncertainties created for the trading with Europe.

:32:55.:33:01.

-- on trade. Can I ask the Government what is the Government

:33:02.:33:03.

putting in place to support supply trains threatened either severance

:33:04.:33:08.

of these ties and the falling value of the pound. On finance, the exit

:33:09.:33:15.

from the EU threatens the UK's status as a global financial sector.

:33:16.:33:20.

A number of major banks have ordered that in place plans to move jobs

:33:21.:33:25.

from the UK. They are fearful of the loss of their European Union

:33:26.:33:29.

passport, allowing them to win business across the EU. We need to

:33:30.:33:32.

know from the governments on how they will ensure those passport

:33:33.:33:37.

rights are retained. I hear one negotiation position is to offer

:33:38.:33:41.

statements with some controls on freedom of movement, but Mike at the

:33:42.:33:47.

last bank passport in rights. This is clearly moved to encourage bank

:33:48.:33:53.

migration from London. The resignation of the Finance

:33:54.:33:56.

Commissioner means that the UK currently has no voice at the

:33:57.:34:01.

commission level to argue for UK finance. What steps will the

:34:02.:34:04.

Government take to ensure that the voice of UK finance continues to be

:34:05.:34:09.

heard in Europe? Cameo also press the Government to establish a

:34:10.:34:13.

working group to monitor the ongoing threat to the UK's financial

:34:14.:34:16.

stability, working with representatives from across the

:34:17.:34:21.

financial industry? To conclude, it would just be wrong of me not to

:34:22.:34:26.

mention the threat that have been made to community cohesion following

:34:27.:34:30.

the vote to leave. I was very concerned to hear about the attacks

:34:31.:34:33.

on the Polish community. Any such attacks must be condemned outright

:34:34.:34:38.

by the whole House. I have a Polish community in my own constituency.

:34:39.:34:42.

The Polish War Memorial Dubai stand testimony to the sacrifice of Polish

:34:43.:34:49.

pilots during the Second World War. I've attended many meetings at the

:34:50.:34:53.

Polish Centre in Hammersmith which was so disgracefully attacked. I set

:34:54.:34:56.

my message of solidarity to this community and anyone else suffering

:34:57.:35:01.

from this rising racism. Can I ask the Government what mechanisms in

:35:02.:35:04.

particular are going to be put in place with local government leaders

:35:05.:35:10.

and community mayors to help resolve the situation and resource

:35:11.:35:12.

programmes that will be brought forward? In conclusion, we will get

:35:13.:35:17.

through this period of uncertainty, as Britain has done many times in

:35:18.:35:21.

the past. We will get through. There are real strength in our economy,

:35:22.:35:25.

not least in our talented and dedicated workforce. Nonetheless,

:35:26.:35:31.

volatility to continue and they remain grave concerns about

:35:32.:35:36.

Britain's future relationship with our European partners and in the

:35:37.:35:40.

wider world. The future strategy is not yet determined, but Michael and

:35:41.:35:43.

me say from the side of the House, we are prepared, in the national

:35:44.:35:47.

interest to work with the Government and our parliamentary colleagues on

:35:48.:35:51.

all sides to ensure the best interests of British people are

:35:52.:35:54.

secured. I commend the motion to the House.

:35:55.:36:00.

and a league and is the only order paper. I very much welcome this

:36:01.:36:09.

opportunity to update Parliament and update the country on some of the

:36:10.:36:15.

economic challenges which we now face. Can I take this opportunity to

:36:16.:36:21.

welcome the member for Salford to chew her new position as shadow

:36:22.:36:25.

chief secretary. I would welcome all the new members because it would be

:36:26.:36:28.

like the presentation of the bills we have just seen. It is very good

:36:29.:36:35.

the Shadow Chancellor is still in place and he has 80% of the support

:36:36.:36:42.

to remain there. Can I respond to this sober debate with a message of

:36:43.:36:50.

the issues and sundry was a man can I say from the outset that this is a

:36:51.:36:55.

challenging time and a good opportunity for the House to discuss

:36:56.:36:59.

these issues. We will not seek to divide the House on the motion

:37:00.:37:05.

today. The message of the assurance and realism begins with the realism

:37:06.:37:09.

that I have never shied away from telling the country the truth, as I

:37:10.:37:15.

have seen it, about our economic challenges and be faced significant

:37:16.:37:18.

economic challenges as a result of the referendum decision last week. I

:37:19.:37:27.

want to provide reassurance that we are about as well-placed as we could

:37:28.:37:30.

possibly be to meet these challenges that lie ahead. The Shadow

:37:31.:37:37.

Chancellor was correct to raise problems like low productivity

:37:38.:37:42.

growth which bedevil many western economies, but the British economy

:37:43.:37:47.

has been the strongest of the advanced economies in the world in

:37:48.:37:51.

recent years, capital requirements and our banks are ten times higher

:37:52.:37:55.

than before the financial crisis, inflation is low and stable and

:37:56.:38:00.

disposable incomes have been growing. These things didn't happen

:38:01.:38:05.

by accident but because over the last six M years we took difficult

:38:06.:38:09.

and often painful decisions to strengthen our economy and rebuild

:38:10.:38:16.

our banks, we said we would fix the roof and thank goodness we made the

:38:17.:38:22.

progress we did. I will just say this before giving way. While I've

:38:23.:38:28.

personally gave everything to campaigning for the different

:38:29.:38:32.

outcome, we sought a clear result and I accept that result, the

:38:33.:38:35.

government accepts that result and we need to implement that decision

:38:36.:38:40.

and deliver for the British people on the instructions given us. As the

:38:41.:38:46.

ten year cost of borrowing has fallen to under 1%, a record low,

:38:47.:38:53.

doesn't this mean there will be a windfall element from lower interest

:38:54.:38:57.

charges, and will the government consider funding the debt longer at

:38:58.:39:01.

this advantageous time for a borrowing? My honourable friend is

:39:02.:39:14.

right to point to the fall in UK yields, but there has been something

:39:15.:39:18.

of a flight to safety and they would say it is because of the last six M

:39:19.:39:21.

years that we have made UK Government debt a safe haven in

:39:22.:39:31.

stormy waters. We can take pride collectively that we have done that

:39:32.:39:36.

and it is different from the situation six years ago when yields

:39:37.:39:39.

were increasing in the face of economic difficulty, but in terms of

:39:40.:39:46.

the financing of the debt, I have only number of occasions changed the

:39:47.:39:51.

skew of the debt management office's purchase plan and made sure we have

:39:52.:39:59.

longer dated it than we would have otherwise had. One of the reasons

:40:00.:40:08.

why international investors have confidence in the UK market is

:40:09.:40:11.

because we don't chop and change every week, so while my right

:40:12.:40:17.

honourable friend makes a good point I don't think we should immediately

:40:18.:40:20.

respond to the events of the last week by changing your financing the

:40:21.:40:29.

net. The message we need to send it is one of stability and reassurance

:40:30.:40:32.

and that leads to the plan I believe we should be following. It involves

:40:33.:40:38.

ensuring financial stability, precisely what we have been doing

:40:39.:40:42.

these last few days. In the run-up to the referendum, the Treasury will

:40:43.:40:48.

work closely with the Bank of England and the Financial Conduct

:40:49.:40:50.

Authority to put in place robust contingency plans. I met only number

:40:51.:40:56.

of occasions with the Governor of the Bank of England and the monetary

:40:57.:41:00.

policy committee had special meetings to discuss those

:41:01.:41:08.

contingency plans. Our bank regulator worked systematically with

:41:09.:41:10.

each of the major financial institutions to make sure they were

:41:11.:41:14.

financially sound and prepared for whatever outcome the would have.

:41:15.:41:24.

People will have seen that this week from the results that liquidity has

:41:25.:41:30.

been provided and we have been working very closely over the last

:41:31.:41:36.

few days alongside finance ministers, central bank governors

:41:37.:41:38.

across the G-7 and the nations of the European Union, to make sure we

:41:39.:41:43.

are monitoring developments closely and are ready to respond. The

:41:44.:41:51.

president of the ECB provided that update yesterday and the Prime

:41:52.:41:55.

Minister reported that early, and the report he gave was not

:41:56.:42:01.

particularly rosy. These contingency plans were designed to prevent

:42:02.:42:07.

disorder, not to stop markets adjusting to the new economic

:42:08.:42:14.

reality, and I can assure the House today, capital liquidity remains

:42:15.:42:17.

strong and this morning we have seen greater stability in bank share

:42:18.:42:22.

prices and currency markets are continuing to function effectively.

:42:23.:42:29.

There have been significant adjustments and we have to be

:42:30.:42:32.

realistic about the impact of the referendum on financial markets. The

:42:33.:42:41.

resilience of our banks and the stability is to be welcomed but it

:42:42.:42:47.

is quite clearly at the price of pumping so much central bank money

:42:48.:42:52.

into the system, that bank share prices are falling, and the future

:42:53.:42:59.

of of the commercial prospects of banks have been damaged. I would say

:43:00.:43:09.

that the stability of our financial institutions as they are for people

:43:10.:43:12.

to see and it has been assured by our regulators. If he says that the

:43:13.:43:19.

market is making new assessments about the future earnings of banks,

:43:20.:43:26.

yes, they are, and it is quite striking, it is not banks that face

:43:27.:43:35.

the European and international economy that have seen the sharp

:43:36.:43:39.

falls. We need to be realistic that markets will make those kinds of

:43:40.:43:45.

adjustments, and it is striking, the sharpest one-day fall against the

:43:46.:43:53.

dollar for a decade. Equity markets, largely companies that face the UK

:43:54.:43:58.

domestic market, fell by 14% and are now 9% below their level will stop

:43:59.:44:06.

and the particular sectors that have been affected are British retail

:44:07.:44:13.

banking, house-building and short-haul airlines. I wonder if he

:44:14.:44:26.

could acknowledge also the benefits of a weaker exchange rate? 40

:44:27.:44:31.

country running a large trade deficit having a we could exchange

:44:32.:44:35.

rate will make a large difference to exporters and it will mean we are

:44:36.:44:40.

more likely now to avoid deflation that people were forecasting would

:44:41.:44:47.

hit us. Where I would agree with my honourable friend is that if

:44:48.:44:51.

free-floating currency is a shock absorber, we have the benefit of not

:44:52.:44:58.

having a fixed exchange rate, and we are not part of the single currency.

:44:59.:45:04.

The currency can take some of the strain and that is reflected in the

:45:05.:45:09.

currency market. The only thing I would caution my honourable friend

:45:10.:45:17.

on is that in 2008 we saw a sharp fall in sterling and that was

:45:18.:45:24.

sustained. It didn't lead to the blistering exports people expected

:45:25.:45:28.

at that point. That was partly because other markets were

:45:29.:45:34.

depressed, European markets, but also because as we came to discover

:45:35.:45:37.

integrated supply chain is these days are more international and a

:45:38.:45:50.

car exporter from the UK might benefit in terms of the price the

:45:51.:45:55.

card so that, but it will be importing parts and will have seen

:45:56.:46:00.

import prices rise, and retailers are also warning us that prices in

:46:01.:46:06.

supermarkets may arise because of the currency, but we will wait and

:46:07.:46:12.

see. The other challenge we face is from the credit rating agencies. Not

:46:13.:46:19.

that everything they say is gospel... But we unfortunately lost

:46:20.:46:27.

our triple-A rating with standard and tours and were downgraded two

:46:28.:46:36.

notches. Can he tell me whether or not we will still be using

:46:37.:46:40.

quantitative easing and when did that end if not? The Shadow

:46:41.:46:48.

Chancellor raised concerns about monetary policy. The Bank of England

:46:49.:46:53.

is independent and the monetary policy committee set out the

:46:54.:46:58.

challenging trade-off that it might face between a fall in output and

:46:59.:47:04.

the rise in inflation. We will have to wait and see how monetary policy

:47:05.:47:08.

response to that trade-off but it has to make that judgment, and

:47:09.:47:14.

specifically with regards to quantitative easing, the central

:47:15.:47:17.

bank has not been undertaking quantitative easing but the

:47:18.:47:22.

arrangements that would have been put in place by my predecessor

:47:23.:47:27.

remain in place. The authorisation arrangements remain. Any of the

:47:28.:47:33.

monetary policy instruments they have their toolkit they will be able

:47:34.:47:37.

to use but that is entirely a judgment for them. We will wait and

:47:38.:47:45.

see how they respond to the challenges they face. Let me give

:47:46.:47:52.

way and then I will make some progress. This June, the sun is not

:47:53.:48:01.

shining and I have been contacted like many MPs with wishes to delve

:48:02.:48:11.

into the second referendum. Can the chance or spell out if he believes

:48:12.:48:15.

that even looking at a referendum would do massive damage to finance

:48:16.:48:21.

and delay and disrupt further infrastructure projects which are so

:48:22.:48:29.

vital to our communities? I am very clear, although I passionately

:48:30.:48:32.

fought for remaining in the EU, not because I was a massive fun, but

:48:33.:48:38.

because I thought it was better for Britain to be in the EU than

:48:39.:48:43.

outside, but I absolutely accept the result of the referendum and I don't

:48:44.:48:47.

think it's credible in the days after the referendum result to say

:48:48.:48:51.

that people got it wrong and we need to elect new people. We need to

:48:52.:48:57.

respect in our democracy the result the British people have given us and

:48:58.:49:04.

as representatives of the population, I think our obligation

:49:05.:49:08.

is to get on and deliver what they have asked us to deliver to the best

:49:09.:49:19.

of our ability. I may say he has been very candid in his remarks this

:49:20.:49:24.

afternoon, but when he reflects on where we are, I notice Goldman Sachs

:49:25.:49:35.

have downgraded their profit forecast by 10 million euros over

:49:36.:49:40.

the course of the next two years. When we reflect on what that means

:49:41.:49:48.

for UK tax receipts, does he not reflect this has been a self induced

:49:49.:49:53.

problem created by the Conservative government, and does he not have any

:49:54.:49:57.

regrets that it is the Conservative Party through an internal dispute

:49:58.:50:00.

that has got us into this terrible mess?

:50:01.:50:04.

The short answer to that is, no I don't. I do not think it is wrong in

:50:05.:50:11.

a democracy to ask the people on very big constitutional issues. In

:50:12.:50:15.

all the years I have been a Member of Parliament, and indeed before,

:50:16.:50:19.

this question of our relationship with the EU has hung over our

:50:20.:50:24.

political system and our body politic. I'm surprised to hear a

:50:25.:50:30.

Scottish Nationalist raising doubts about the effectiveness of

:50:31.:50:34.

referendums, but there we go. Let me like progress and then I will give a

:50:35.:50:41.

further. We have had fought through contingency plans, those plans

:50:42.:50:44.

remain in place should financial conditions deteriorate. We are

:50:45.:50:53.

absolutely determined that unlike eight years ago the financial system

:50:54.:51:02.

will help ameliorate those financial issues rather than contribute to

:51:03.:51:09.

them. We have two except that there is evidence that some investment

:51:10.:51:16.

decisions will continue to be caused as firms adjust to the uncertainty

:51:17.:51:20.

caused by the referendum. So the first part of our plan, financial

:51:21.:51:26.

stability, has to be to remove that uncertainty as quickly as is

:51:27.:51:28.

possible in a democratic system. I give away.

:51:29.:51:35.

I thank the Chancellor. European Union funds have helped economic

:51:36.:51:40.

development in my constituency. So what measures is the Chancellor

:51:41.:51:44.

going to take so that areas like south Wales continue to receive

:51:45.:51:48.

support and infrastructure to help boost jobs in our valleys?

:51:49.:51:56.

I think we are going to these big questions about providing support to

:51:57.:52:01.

institutions, regions and sectors that have been receiving European

:52:02.:52:05.

Union assistance. Most that apply, the regional support that has been

:52:06.:52:12.

provided to South Wales, the support that they EU provided to research in

:52:13.:52:17.

our universities, the support to our farming community. We are going to

:52:18.:52:20.

have to address all of those issues in this House of Commons over the

:52:21.:52:24.

coming months and perhaps longer than that. Closer than that, we

:52:25.:52:31.

remain a member of European Union, and am coming onto the procedure of

:52:32.:52:37.

how it apart. So those funds continue, and European grants

:52:38.:52:40.

continue to be made. We are looking specifically at areas where

:52:41.:52:44.

questions have been asked about the long-term answers to particular

:52:45.:52:51.

project. I will keep the House updated. It is a challenging

:52:52.:52:54.

question that we have to answer, and we're looking at it very

:52:55.:52:59.

intensively. At the moment, nothing has changed, we remain a member of

:53:00.:53:02.

the European Union. And that brings me to this point, the honourable

:53:03.:53:06.

gentleman's question of trying to resolve that uncertainty as quickly

:53:07.:53:09.

as is practical about the new relationship we seek with the

:53:10.:53:15.

European Union, and our European neighbours. Again, I think we may

:53:16.:53:18.

need a bit of realism and to offer reinsurance. Because it is apparent

:53:19.:53:24.

that uncertainty will only be fully resolved after we come to agreement

:53:25.:53:28.

as a country about the relationship we want with our European partners.

:53:29.:53:33.

And that agreement is then negotiated with our European

:53:34.:53:38.

partners and agreed. We know what the broad options are. The

:53:39.:53:41.

Government has spelt them out over the last few months and the Treasury

:53:42.:53:45.

and Cabinet Office papers that were reduced in advance of the

:53:46.:53:48.

referendum. We set out different models of relationship. The European

:53:49.:53:53.

Economic Area, that we could join, like Norway. A new bilateral

:53:54.:54:00.

agreements, like Canada or the Swiss model. The World Trade Organisation

:54:01.:54:07.

rules that we could rely on. And as the Prime Minister has set out at

:54:08.:54:11.

this dispatch box, the Government has set out a new unity at the heart

:54:12.:54:15.

of the Government made up of some of the very best of our civil servants.

:54:16.:54:20.

That will make a decision and report to Cabinet, but I stress that other

:54:21.:54:24.

departments can feed into that work that is now taking place so that we

:54:25.:54:30.

have the fullest possible information on the decision we are

:54:31.:54:33.

going to have to collectively take as a Parliament on the new

:54:34.:54:39.

relationship we want with Europe. My personal view is clear - we should

:54:40.:54:43.

be moving towards an arrangement which provides us with the closest

:54:44.:54:47.

possible economic ties with error European neighbours. Cost a half our

:54:48.:54:51.

exports go to the Europe union. Millions of jobs are supported by

:54:52.:54:57.

our trade with the European Union. And of course, leading industries

:54:58.:55:02.

are reliant upon that relationship. Car manufacturers, farmers, as

:55:03.:55:06.

services industry. We should be moving towards an arrangement, in my

:55:07.:55:11.

view, where if we negotiate, the trade in both goods and services,

:55:12.:55:15.

including financial services, is as free as possible. In the meantime,

:55:16.:55:20.

of course, coming back to appoint point and made earlier, UK firms

:55:21.:55:24.

continue to have exactly the same status as any other EU firms.

:55:25.:55:28.

Business continues in the city and elsewhere, including in Europe

:55:29.:55:35.

dominating and financial markets. We have to be realistic about this, we

:55:36.:55:39.

must acknowledge that we cannot have all the benefits of the EU without

:55:40.:55:44.

accepting any of the costs and obligations. It will be for this

:55:45.:55:48.

Parliament to decide what the accommodations and compromises

:55:49.:55:55.

should be. I give way. I am grateful. So much of the Leave

:55:56.:56:00.

argument was predicated on shifting our focus to the world beyond

:56:01.:56:03.

Europe. If the Chancellor agrees with that assumption, then we need

:56:04.:56:10.

to make sure we can get there. Given the expansion of Heathrow would

:56:11.:56:14.

deliver a ?16 billion by that finance shot in the arm, after ?211

:56:15.:56:21.

billion of growth outside of the Southeast, thousands of jobs and

:56:22.:56:26.

apprenticeships, then I urge the Chancellor to commit to giving his

:56:27.:56:30.

side a free vote and efficient, safe in the knowledge that on this side

:56:31.:56:36.

there will be sufficient votes to compel that result.

:56:37.:56:42.

We are awaiting the work that is being done on air quality around the

:56:43.:56:48.

output. I think when we talked about that some months ago, people were a

:56:49.:56:55.

bit dismissive of it as an issue. Actually, in the London mayoral

:56:56.:56:59.

contest, the new Mayor of London, he raised an equality issues which did

:57:00.:57:07.

resonate with Londoners. I think it is unfortunate before Parliament

:57:08.:57:12.

makes a decision that we have addressed issues concerns around air

:57:13.:57:20.

quality. I don't think this is going to be anything new if I tell the

:57:21.:57:23.

House is going to be a controversial decision when we come to take it. I

:57:24.:57:27.

think it is very important that the one cries foul over the process, and

:57:28.:57:31.

we can then make a decision on the merits of the issue. My view is that

:57:32.:57:38.

we need additional runway capacity, and whether capacity should come

:57:39.:57:43.

from must be a matter first for the Government and then for Parliament.

:57:44.:57:48.

I give way and then will make progress.

:57:49.:57:52.

I am grateful. On that issue of runway capacity in the Southeast, as

:57:53.:57:58.

in so many issues, Northern Ireland has a very direct interest, and we

:57:59.:58:02.

want to see a decision taken on the issue raised by the honourable

:58:03.:58:05.

gentleman as well, as quickly as possible. In that regard, and in

:58:06.:58:09.

relation to issues the Chancellor has been talking about, then he is

:58:10.:58:16.

surely that the Treasury is talking to the Northern Ireland Executive so

:58:17.:58:20.

that the interests and concerns of Northern Ireland are very much in

:58:21.:58:23.

the thinking of Her Majesty is Government is going forward?

:58:24.:58:29.

That dialogue is taking place, and I assure him it will continue to take

:58:30.:58:34.

place. We were on different sides of the argument when it came to the

:58:35.:58:40.

referendum, but he, like me, shares a view of Britain that is we need to

:58:41.:58:44.

be open to the world, trading with the world, in my view that means

:58:45.:58:49.

sufficient airport capacity to fly to the world and allow the world to

:58:50.:58:54.

fight us. I'm sure that is universally accepted across the

:58:55.:58:57.

House of Commons. But we will find out. Let me make some progress.

:58:58.:59:06.

The challenge now, one I think that we can rise to working through

:59:07.:59:10.

collective discussion and decision-making, what the new

:59:11.:59:13.

relationship is that we seek with the European Union. We are clear

:59:14.:59:20.

that until we have an agreed approach, we should not trigger the

:59:21.:59:25.

Article 50, which begins the process of exiting the European Union. As

:59:26.:59:29.

the Prime Minister said, bring Article 50 as rightly a decision for

:59:30.:59:33.

the new Prime Minister, and that new Government. And it is a decision

:59:34.:59:37.

that we will take at the right time, when we're ready, and not before.

:59:38.:59:43.

And of course, the economic uncertainty will mean that there

:59:44.:59:49.

will be an impact on private finances -- public finances. The OBR

:59:50.:59:55.

will make a statement this autumn, I don't think the OBR... To get the

:59:56.:00:00.

best possible focus on the OBR, we have to wait for the dust to settle

:00:01.:00:05.

a little. But the OBR will make its assessments, and who will be for the

:00:06.:00:10.

new Government under a new Prime Minister to make decisions about

:00:11.:00:13.

adjustments that will be required to meet the new fiscal realities. But

:00:14.:00:17.

we should never forget that fiscal stability in Seattle at the bedrock

:00:18.:00:23.

of the economic security. -- absolute bedrock. I went to reassure

:00:24.:00:27.

the House that our economy remains competitive, open to business, we

:00:28.:00:31.

have the lowest corporate taxes in the T20, while people in work than

:00:32.:00:36.

ever before thanks to welfare reforms. Asides are numerous of

:00:37.:00:39.

these are world-class. The point has been made throughout the debate

:00:40.:00:43.

within the country and these Parliament, I think when to go on

:00:44.:00:46.

forging links with key partners, beyond Europe, like China and India.

:00:47.:00:50.

I never thought that we had to choose between Europe and forging

:00:51.:00:56.

new links with the rest of the world. German export three times

:00:57.:01:02.

what we do to China, so it's clearly possible to do that within the

:01:03.:01:05.

European Union. But outside the European Union, it is are more

:01:06.:01:08.

important than ever before. I will be travelling to China next month as

:01:09.:01:13.

part of the T20 finance ministers meeting there. To pick up another

:01:14.:01:18.

point that the member for Harrow East made when he made an

:01:19.:01:22.

intervention earlier, I have spoken to the US Treasury Secretary and the

:01:23.:01:25.

Speaker of Congress and the last couple of days about strengthening

:01:26.:01:32.

our ties with great like America. Very grateful. Does he agree that it

:01:33.:01:37.

is not just about new trade deals, it is about the supply chains he

:01:38.:01:41.

mentioned earlier, and building customer relationships over many

:01:42.:01:45.

decades, as we have with the European Union. He said they can't

:01:46.:01:47.

make your trade from Europe one day to the USA or China the next.

:01:48.:01:53.

My honourable friend is completely right. I don't think we should have

:01:54.:01:58.

to choose between the two. It apparently possible to do it a lot

:01:59.:02:02.

more business within America and China and the like was doing a lot

:02:03.:02:08.

of this is with Europe. That would be a key part of Britain's economic

:02:09.:02:16.

strength going forward. As I say, respecting the decision of the

:02:17.:02:19.

British people to leave the EU, in my view, we should now be seeking

:02:20.:02:24.

the closest possible terms of trade with the EU, not just in goods, but

:02:25.:02:28.

also in services, including financial services. The third and

:02:29.:02:32.

final part of the plan and will even need to pursue now is something that

:02:33.:02:35.

the Shadow Chancellor touched upon. We think of it as a social issue

:02:36.:02:40.

that has economic ramifications as well. We must unite across the

:02:41.:02:43.

political spectrum and offer a very loud and clear message to this

:02:44.:02:48.

country that we have no tolerance of intolerance, hatred and bigotry will

:02:49.:02:53.

stop we need to send a message of reassurance to all communities and

:02:54.:02:56.

our very successful, multiphase democracy that we are not going to

:02:57.:03:02.

tolerate those who will deride us. The reports of graffiti on the

:03:03.:03:07.

Polish community Centre in Hammersmith, the reports are people

:03:08.:03:09.

who have lived in that country for decades, been told, we voted you

:03:10.:03:16.

out. The increase in hate crimes, all of these point to incidences

:03:17.:03:19.

that are appalling and unacceptable. It is not the British way, we should

:03:20.:03:23.

unite in condemning it. The Prime Minister and might honourable friend

:03:24.:03:27.

the Home Office minister was sitting at some of the additional steps we

:03:28.:03:32.

now taking to combat this and tolerance. But in this economic

:03:33.:03:36.

faith, I would say that business leaders should also pay their part

:03:37.:03:43.

and any type of intimidation in the workhouse workplace should be

:03:44.:03:51.

stamped out, and all nationalities are welcome within the United

:03:52.:03:58.

Kingdom. Those are the three key things we need to do now. Going

:03:59.:04:05.

securing financial stability. Make sure we resolve the economic

:04:06.:04:08.

uncertainty that has been created by working together to determine the

:04:09.:04:11.

model for our new relationship with the EU. Third, sending out a strong

:04:12.:04:16.

message that we will not tolerate intolerance. If we deliver on these

:04:17.:04:20.

three parts of the plan, and will be doing the best we can to make this

:04:21.:04:24.

work written, and the best we can do to fulfil the instructions of the

:04:25.:04:27.

British people. I must be straight with people in this country, the

:04:28.:04:31.

weeks and months ahead will not be easy. That has always been the case

:04:32.:04:36.

in our history. It is the moments of greatest challenge that our country

:04:37.:04:39.

must damage it is great as resolve as it often does.

:04:40.:04:49.

Can I thank these Shadow Chancellor and the Chancellor for their

:04:50.:04:57.

speeches. We agree entirely and will bring forward constructive measures

:04:58.:05:03.

to bring about confidence and stability to the markets. I also

:05:04.:05:06.

think that the Shadow Chancellor was right that we cannot hide, we must

:05:07.:05:10.

have a robust critique of what this may mean. I'll also say, to the

:05:11.:05:17.

Chancellor, that today, the first majority of the criticism which I do

:05:18.:05:21.

make will not be erected at him at all, rather to those who led the

:05:22.:05:29.

Brexit campaign. Once again, who since the referendum are absent from

:05:30.:05:30.

the chamber. We will support the motion before us

:05:31.:05:44.

because we agree with much of it, the huge and real risks of Scotland

:05:45.:05:50.

being ripped from the EU and the damage it can cause to jobs and

:05:51.:05:58.

prosperity. Much more importantly, the failure of those advocating

:05:59.:06:04.

Brexit to have any plan if they won. It is worth noting that when we had

:06:05.:06:08.

our first independence referendum, it was based on a 650 page White

:06:09.:06:15.

Paper, a detailed plan, a clear prospectus for what would happen.

:06:16.:06:21.

What the Brexit campaign leaders had, the member for Oxbridge, what

:06:22.:06:27.

they had prepared was a few scribbled notes on the back of Nigel

:06:28.:06:37.

Farage's cigarette packet. He refers to the first referendum and he would

:06:38.:06:41.

recall one of the big issues with the currency to be used by an

:06:42.:06:46.

independent Scotland. In terms of the bill being drafted, is there an

:06:47.:06:49.

assumption they would no longer use the pound? We had a really better

:06:50.:06:55.

fix the problems caused by this Brexit decision and then if we

:06:56.:07:01.

remain unable to secure a place in the EU by any other means, the

:07:02.:07:05.

honourable gentleman will be more than welcome to scrutinise the plan.

:07:06.:07:16.

I will give way. The honourable gentleman makes an eloquent point

:07:17.:07:21.

but he's totally wrong. I have to set fire to his strawman. The

:07:22.:07:25.

distinction between a general election with the policy programme

:07:26.:07:29.

and the party ready to take over, with a fixed platform of policy, is

:07:30.:07:37.

different to that of a referendum. The referendum result is an

:07:38.:07:40.

instruction to deliver by the government which should have at the

:07:41.:07:42.

time being ready to take instructions. We're now seeing the

:07:43.:07:50.

consequence of a lack of planning and the expectation that those who

:07:51.:07:56.

campaigned to stay in should be preparing the work for those who

:07:57.:08:00.

wanted to leave is preposterous and the extreme. We have to back this

:08:01.:08:11.

motion because the people of Scotland force is overwhelmingly to

:08:12.:08:15.

remain in the EU, because we have shown ourselves to be a modern,

:08:16.:08:20.

outward looking and inclusive country, and because I share the

:08:21.:08:26.

views of the others. We look on in horror as community cohesion is

:08:27.:08:29.

under threat as the racists and bigots think this is the green light

:08:30.:08:33.

to abuse anyone from any other background. It is not and we

:08:34.:08:38.

unreservedly contend that racism and bigotry. Let's look at what happened

:08:39.:08:47.

in Scotland on the day of the referendum. The people they made it

:08:48.:08:52.

clear they see their future as part of the EU. 62% of the Scottish

:08:53.:09:01.

people voted to stay in the EU compared to 59% voting to leave,

:09:02.:09:08.

only 30% in Scotland chose to do that. 1.5 million people voted

:09:09.:09:14.

remain, each and every one of the 32 council idiots ported to remain, the

:09:15.:09:19.

only nation in the UK with a clean sweep of local authorities, and the

:09:20.:09:26.

turnout was the second highest of any referendum held in Scotland,

:09:27.:09:31.

even higher than the 1997 referendum on devolution. While I understand

:09:32.:09:37.

what the Chancellor said about respecting the will of the UK

:09:38.:09:43.

people, I hope that same will apply to respecting the will of the

:09:44.:09:46.

Scottish nation who have clearly said the intent to stay. I am most

:09:47.:10:00.

grateful. -- would the honourable gentleman be able to say that if it

:10:01.:10:05.

came to a vote on the floor of the House whether to implement article

:10:06.:10:14.

50, with the SNP say no? The government have made it clear it

:10:15.:10:17.

would be for the next government to bring forward the votes are we have

:10:18.:10:21.

until September or October at the earliest to decide whether or not to

:10:22.:10:28.

do that. We are disappointed the UK voted to leave and that is not what

:10:29.:10:33.

we wanted but the priority must now be to stabilise markets and protect

:10:34.:10:39.

the economy. That is why our first ministers in Brussels today and why

:10:40.:10:45.

she has sent the government is exploding each and every potential

:10:46.:10:50.

avenue to maintain Scotland's EU status because that is where the

:10:51.:10:55.

instability is coming from. Let me say one more thing about the

:10:56.:11:05.

previous referendum. It is democratically unacceptable for

:11:06.:11:08.

Scotland to be removed from the EU against its will, and the irony of

:11:09.:11:17.

this as we were told Time after time in our independence referendum that

:11:18.:11:22.

the threat to membership of the EU came from independence. Alistair

:11:23.:11:27.

Darling told us that in 2012, Ruth Davidson told us that in 2014. She

:11:28.:11:34.

said, it is dense -- it is disingenuous to say no means oath

:11:35.:11:37.

and yes men's end when the opposite is true. Even the Better Together

:11:38.:11:46.

campaign tweeted the same, what was the process for removing our EU

:11:47.:11:51.

citizenship? Voting yes. How wrong and how misleading that was. It was

:11:52.:12:00.

never a threat from independence but it was and is now very much in

:12:01.:12:04.

jeopardy only because of the UK decision. I will move on. Now is the

:12:05.:12:17.

time for measured reflection with First Minister doing everything to

:12:18.:12:22.

secure our European status and to provide as much reassurance and

:12:23.:12:27.

certainty as we can over the next days and weeks, and being reassuring

:12:28.:12:35.

to those individuals from the EU and further afield, because we believe

:12:36.:12:40.

as most in this house believes, they remain welcome and appreciated here.

:12:41.:12:46.

We must also do all we can to help restore financial stability and

:12:47.:12:49.

reassure the business community and emphasise that now we remain within

:12:50.:12:57.

the EU and trade and business should continue as usual, and we should do

:12:58.:13:04.

all we can to those planning" investment this remains a place one

:13:05.:13:06.

should invest capital with confidence. And why is this

:13:07.:13:16.

important? Because the FTSE 100 dropped by 8.4% on the morning of

:13:17.:13:23.

24th of June. On the 27th, the downward trend continued and late

:13:24.:13:32.

afternoon the FTSE was down 2.5%. The Friday morning sudden drop meant

:13:33.:13:39.

130 billion was wiped off UK blue-chip stocks within minutes, and

:13:40.:13:47.

I see Chancellor said, banks and house-builders had the biggest

:13:48.:13:56.

falls. During Monday morning, trading in the shares of both

:13:57.:14:01.

Barclays and RBS was briefly halted as the losses exceeded 10% of stock

:14:02.:14:08.

value. After trading was restarted the share prices in both countries

:14:09.:14:11.

continue to fall and move wildly due to the uncertainty. The FTSE 250

:14:12.:14:21.

index, which has more businesses exposed to the domestic market, fell

:14:22.:14:30.

even further. 7.2%, 1200 points. Extraordinary falls and changes. A

:14:31.:14:40.

50% slump in the values of some stocks. I will give way. Does he

:14:41.:14:50.

accept that whilst recognising the figures he quotes, the FTSE 100 is

:14:51.:14:57.

currently trading at a value higher than for most of the last six

:14:58.:15:03.

months. I will come to the recovery in certain areas and just a moment

:15:04.:15:06.

because the honourable gentleman is right when it comes to the FTSE 100,

:15:07.:15:12.

but let me come to all of the embassies and we will see the deal

:15:13.:15:18.

damage and how it is playing out. It was not just stock prices, the

:15:19.:15:27.

sterling was trading at $1 45 and it fell, almost twice the fall than in

:15:28.:15:36.

1992 when the UK was forced out of the exchange rate mechanism on Black

:15:37.:15:45.

Wednesday. Of course the FTSE 100 is going to rebound a bit because the

:15:46.:15:49.

vast majority of the businesses it said of the United Kingdom. If you

:15:50.:15:55.

look at the end this is like FTSE 250, much more domestically exposed,

:15:56.:16:00.

the fall has been catastrophic. That is absolutely correct. The key

:16:01.:16:09.

point, whether the index moves up or down at any given time, the exposure

:16:10.:16:15.

to the UK market and the lack of confidence at the moment is

:16:16.:16:18.

precisely what is driving that uncertainty. I won't give way at the

:16:19.:16:29.

moment. The fall in the pound was twice that in 1992 and by Monday

:16:30.:16:39.

27th at fell another 2% down to $1 32, a 30 year low. Mutterings from

:16:40.:16:44.

everyone who wants things to be fine. We have had a near three

:16:45.:16:51.

decade low in the pound because of the actions taken by the Brexit

:16:52.:16:56.

campaign feeling to have a plan to deal with this eventuality. That is

:16:57.:17:03.

the crux of the matter. The value of the pound against the euro fell

:17:04.:17:09.

almost 6% on Friday 24th and on Monday 27th it fell again. Most

:17:10.:17:16.

alarming, given the stock placed on it, was that the UK lost its

:17:17.:17:25.

triple-A credit rating, certainly from Standard Poor's. They said

:17:26.:17:32.

the referendum result could cause a deterioration in the UK financial

:17:33.:17:37.

performance. It was the first time Standard Poor's have downgraded a

:17:38.:17:42.

triple a rated sovereign by two notches in one go. By Friday,

:17:43.:17:53.

Moody's topped the ratings from stable to negative, and by changing

:17:54.:17:59.

that Outlook it has warned the UK rating has a risk of being lowered

:18:00.:18:05.

and with that comes the risk of higher borrowing costs. That is

:18:06.:18:08.

before we get to the real world and job security. The Institute of

:18:09.:18:14.

directors surveyed 1000 of its members and found a plan to freeze

:18:15.:18:21.

recruitment among a quarter. The BBC have reported HSBC plan to move up

:18:22.:18:28.

to 1000 staff from London to Paris. People who work processing payments

:18:29.:18:33.

in euros for HSBC. Others are deeply concerned about the loss of passport

:18:34.:18:38.

arrangements so that they don't have to have different authorisation for

:18:39.:18:44.

individuals in countries. These are very deal concerns and they are

:18:45.:18:47.

being whitewashed by those desperate to leave because of the absence of a

:18:48.:18:52.

plan to deal with the issues that should have been thought about and

:18:53.:19:01.

considered an advance. The leaders of the Brexit campaign are

:19:02.:19:03.

conspicuous by their absence in this chamber which is perhaps not a

:19:04.:19:07.

prizegiving the embarrassment they are faced with -- they are facing.

:19:08.:19:15.

The energy minister said the volatility we are seeing is not

:19:16.:19:19.

unusual volatility. Does that not just underline the complete economic

:19:20.:19:25.

illiteracy of the case, that they think these unprecedented changes

:19:26.:19:31.

are not unusual. If the pound falls by twice its record fall in the

:19:32.:19:35.

past, I suppose now one sensible should describe that as run of the

:19:36.:19:40.

mill. In that regard my honourable friend is right. In regard to the

:19:41.:19:50.

end this is, it is right as I said that the FTSE 100 has pretty much

:19:51.:19:54.

bounce back to its pre-referendum level as of earlier today. The FTSE

:19:55.:20:00.

250 is not yet back to the position on Monday.

:20:01.:20:05.

Pound versus sterling is not changed and is bouncing along the bottom,

:20:06.:20:13.

pound versus euros is not changed since the fall and bouncing along

:20:14.:20:21.

the bottom and the real concern ... The real concern is we are worried

:20:22.:20:26.

this uncertainty will last for very long time, not least because of the

:20:27.:20:31.

proposed that this decision for those advocating Brexit not even to

:20:32.:20:36.

try to invoke the article 15 negotiations immediately. Not so

:20:37.:20:42.

much a man without a plan, as a Campion without a clue. -- Article

:20:43.:20:51.

50. I am not going to give way. We do know that many of the underlying

:20:52.:20:55.

problems in the economy are deep rooted and long-term. One of the

:20:56.:21:02.

arguments posited by the outcome been money currently going to the EU

:21:03.:21:08.

could be spent here at home. But we don't need to leave the EU to

:21:09.:21:13.

reverse the decision to convert innovation funding from grants to

:21:14.:21:16.

loans to support new product development. We don't need to leave

:21:17.:21:23.

the EU to reverse the cuts to export support to help businesses sell more

:21:24.:21:28.

overseas. We don't need to leave the EU to abandon an economic plan to

:21:29.:21:32.

cut 40 billion more than is necessary to run a current Alan

:21:33.:21:37.

Stubbs count. We don't need to end our membership of the EU to do these

:21:38.:21:43.

things. We do need an end to austerity. And the other argument

:21:44.:21:50.

which the Brexit campaigners posited was that we need to take back

:21:51.:21:56.

control, in their reports, in order to achieve improvements in all of

:21:57.:22:00.

the economic metrics. The problem with that is countries within the EU

:22:01.:22:06.

are doing better on every single measure. Malta and the Czech

:22:07.:22:12.

Republic have lower unemployment. Denmark, Sweden and the Netherlands

:22:13.:22:16.

have higher employment. Ireland has higher GDP growth. The story and

:22:17.:22:23.

Bulgaria have lower debt to GDP reseals. And in terms of

:22:24.:22:29.

productivity, and I am coming to an end... The productivity against the

:22:30.:22:35.

UK is higher in the entire euro area, higher in Austria, Sweden,

:22:36.:22:43.

Denmark, Germany, France, Netherlands, Ireland. All of the

:22:44.:22:47.

things which we want to see done can be done within the EU self evidently

:22:48.:22:56.

the case. This is a Brexit Campion without a plan, leading to the chaos

:22:57.:23:01.

we are seeing now and potentially difficulties in the economy for many

:23:02.:23:05.

years to come. Of course we need to get on one way or another and

:23:06.:23:09.

resolve this and fix it and work with the hand we've been dealt but I

:23:10.:23:15.

would end with this, if we are expected to respect the decision

:23:16.:23:18.

across the whole of the UK, we would expect the same respect for the

:23:19.:23:22.

decision taken by the people of Scotland to stay in the EU.

:23:23.:23:28.

If we can stick to ten minutes each I will not have to impose a speech

:23:29.:23:34.

limit. We can then get everyone in. Thank you, it is a great privilege

:23:35.:23:39.

to speak in this debate and I welcome this, it is what we should

:23:40.:23:44.

be doing. There is a lot of excitement out in the rest of the

:23:45.:23:49.

estate at the moment. I'm following this enormous decision and its

:23:50.:23:53.

consequences we should be sitting here as a pipe parliament and

:23:54.:23:57.

discussing this. And I very much welcome... -- packed parliament. I

:23:58.:24:04.

very much welcome the point by the Shadow Chancellor for the need for a

:24:05.:24:08.

cross-party approach because potentially, this is bigger than any

:24:09.:24:14.

party or any leader, no matter how charismatic or experienced. I will

:24:15.:24:20.

give way. Thank you. Explain to the House by this is an opposition

:24:21.:24:24.

debate and the government didn't call a debate on the economy after

:24:25.:24:32.

Brexit. I'm not an expert, it was a slot allocated for opposition

:24:33.:24:38.

anyway, and there was a statement on the European summit. I campaigned

:24:39.:24:43.

for a Remain vote and argued positively, getting out what was the

:24:44.:24:50.

positive case, and we created a cry wolf situation where, if you warn of

:24:51.:24:55.

things too often, eventually people ignore you even when you are right.

:24:56.:24:59.

And to be honest some of those predictions are coming right. And

:25:00.:25:03.

the best way to look at this, because I believe the country can

:25:04.:25:07.

come through this and come together and be stronger eventually, but to

:25:08.:25:11.

do so we have to recognise initially what we have lost. The strength that

:25:12.:25:19.

we have given up. One way to do this, I very good film is Sliding

:25:20.:25:29.

Doors. We know what we have at the moment, resignation of a great Prime

:25:30.:25:33.

Minister, the issue of Scotland, we have opened a Pandora's box again,

:25:34.:25:40.

and we have undoubtedly in turbulence in financial markets and

:25:41.:25:44.

profound uncertainty. At the very best we have a crisis of

:25:45.:25:49.

uncertainty. We hope that does not manifest into real pain in the

:25:50.:25:54.

economy. But it's quite obvious, it must be, that there is a genuine

:25:55.:25:59.

risk of that, and that is what we have to deal with. We had Fitch

:26:00.:26:05.

morning as today about 5% reduction in investment. And the biggest

:26:06.:26:09.

threat is what may happen with inward investment. We must remember

:26:10.:26:12.

the current account deficit issue and the country is dependent on

:26:13.:26:18.

inward investment. If those foreign firms look less positively at this

:26:19.:26:23.

country we will pay a high price. I mentioned that film because one has

:26:24.:26:28.

to say, if we had ordered the other should train to Romania in the

:26:29.:26:31.

referendum, and I wish that had been the case,... LAUGHTER

:26:32.:26:38.

The gentleman has a fantastic sense of humour himself. And shared by his

:26:39.:26:43.

party. If we had boarded that should train, today we would still have the

:26:44.:26:48.

Prime Minister in position for years to come, we would have a stock

:26:49.:26:55.

market that has strengthened, economic confidence Fenton, currency

:26:56.:26:58.

strengthened, and I think we would have put not to get permanently but

:26:59.:27:03.

would have put to bed to one side in a strong with this issue of Europe

:27:04.:27:09.

and Scotland, these have bedevilled our politics for so long, and

:27:10.:27:14.

instead we have instability. If we had remained we would have a strong

:27:15.:27:18.

position instead of all this uncertainty and weakness. We have to

:27:19.:27:22.

recognise that. Whatever arrangements are negotiated for the

:27:23.:27:26.

future, to me, the simple point is they must compensate for that and

:27:27.:27:30.

restore those strengths and assets, not least the fact Britain

:27:31.:27:35.

historically has been seen as a beacon of trust, a country you would

:27:36.:27:39.

put your life savings into, with a profound sense around the world that

:27:40.:27:46.

we have respect for law and are stable and sound. At the moment, one

:27:47.:27:48.

could forgive the world for thinking that was not the case. It seems to

:27:49.:27:52.

be the case in other European countries. So how do we restore

:27:53.:27:56.

those games? First and foremost, when entering anything, such as with

:27:57.:28:03.

a second reading of a bill, we have to decide on the principles of

:28:04.:28:07.

negotiations that we are going to have with European partners. What

:28:08.:28:12.

will be the fundamentals of going forward? There are three key points

:28:13.:28:19.

I want to focus on. The first is about openness. To me one of the

:28:20.:28:21.

most extraordinary comments in the referendum campaign was when a key

:28:22.:28:27.

figure in the Leave campaign, during the concerns about steel, made the

:28:28.:28:33.

point that if we left the EU we could unilaterally impose tariffs on

:28:34.:28:38.

Chinese steel. There may be a showcase for that but I think it

:28:39.:28:42.

betrayed the fact that when I commenced becomes nationalistic,

:28:43.:28:46.

particularly economically nationalistic, we inevitably come to

:28:47.:28:51.

the threat of protectionism. We have heard many times about how Britain

:28:52.:28:55.

would negotiate good trade arrangements, the point that we have

:28:56.:28:58.

deficits with the EU, they will want to trade with us after all, look at

:28:59.:29:03.

the might of cars we buy from them. But if they don't we would consider

:29:04.:29:12.

protectionism. I will give way. I am grateful and wondered if you

:29:13.:29:16.

recognise, realising we are on different sides, that the EU itself

:29:17.:29:21.

was a protectionist block, the idea of the EU is a common tariff area

:29:22.:29:26.

and would collectively impose significant tariffs on other part of

:29:27.:29:31.

the world, some of which have impoverished nations in the Third

:29:32.:29:37.

World. I accept your point about the EU as a whole, the single market as

:29:38.:29:46.

a single tariff free market, and and asset that we can remain in the

:29:47.:29:49.

single market and we should at all costs. But the point about openness

:29:50.:29:54.

is important, and about the message we send. We have agreed the threat

:29:55.:29:59.

to inward investment, actually existential threat to our economy.

:30:00.:30:04.

And we should not just send a message that they are open to

:30:05.:30:08.

business but will be in if you like the principles of our economy, not

:30:09.:30:12.

resulting to protectionism. Bringing me to the second point that any

:30:13.:30:16.

negotiation about any new arrangements must be in a tone and

:30:17.:30:21.

manner of goodwill. We must be seeking an arrangement that is not

:30:22.:30:25.

just in our interests but in the interests of the strong European

:30:26.:30:29.

Union. This is absolutely fundamental. That is why to me,

:30:30.:30:33.

whoever goes to undertake those negotiations with our European

:30:34.:30:36.

partners must be someone who is trusted as having a sense that they

:30:37.:30:41.

want to see something that works for both parties, and I think that, I

:30:42.:30:46.

worry about people going to negotiate with a body they have

:30:47.:30:50.

spent many months criticising extremely heavy. My third point in

:30:51.:30:55.

terms of these principles is about fiscal policy, because whatever we

:30:56.:31:00.

do, if we want to maintain the sense we are signed and winning back the

:31:01.:31:04.

sense we are stable in the world, we have to continue with a fiscally

:31:05.:31:10.

prudent regime, continue to take tough decisions, and continue to

:31:11.:31:14.

commit to balancing the books and reaching a surplus. That message

:31:15.:31:19.

would inspire confidence in investors and help to restore

:31:20.:31:23.

stability we are seeking. I am happy to give way. Before you conclude,

:31:24.:31:31.

would you agree with me that a very important start has been made on

:31:32.:31:38.

building up this mutual trust by the candour and openness with which both

:31:39.:31:41.

the prime and is and the Chancellor have accepted the verdict of the

:31:42.:31:46.

people, even though it went against their own strongly held beliefs. --

:31:47.:31:51.

the Prime Minister. And we should carry that forward by ensuring we

:31:52.:31:56.

observe the spirit and letter of the people's decision. I do agree, and

:31:57.:32:01.

that was my last point, talking about why this decision came about,

:32:02.:32:07.

and while it is true that we have to accept the decision of the people,

:32:08.:32:12.

we also have to understand the prospectus upon which we believe the

:32:13.:32:16.

people voted to reach that decision and have to be honest about what

:32:17.:32:22.

that prospectus was. A few days ago, we had an article from my friend the

:32:23.:32:28.

Mayor of London, of whom I am a huge fan, who said it is said that those

:32:29.:32:33.

who voted Leave were driven by anxieties about immigration, I do

:32:34.:32:39.

not believe that is so. All I can say is the huge turnout we saw in

:32:40.:32:42.

working class areas of this country, Council estates and so on, was not

:32:43.:32:46.

because people were saying they did not get a say on the Lisbon Treaty,

:32:47.:32:51.

but the issue of immigration which was pushed in an inflammatory way

:32:52.:32:55.

through the debate and if anyone wants proof of that I have received,

:32:56.:33:05.

some of which are shocking and horrific, some too shocking to read

:33:06.:33:08.

out. That campaign was driven by concerns about immigration and we

:33:09.:33:12.

have to accept that. That means it makes things very difficult for us

:33:13.:33:15.

because when we negotiate we have to find a way of preserving all of

:33:16.:33:19.

these economic strength I referred to, yet finding a way to control

:33:20.:33:24.

immigration from the European Union. Because if one was to boil down the

:33:25.:33:29.

explicit underlying nature of the prospectus from boat Leave it was

:33:30.:33:35.

unskilled immigration from the EU. -- from the Leave void. You cannot

:33:36.:33:46.

come unskilled from outside of Q3, because we get those from outside of

:33:47.:33:51.

the EU. Finding that balance will be difficult. It is possible with the

:33:52.:33:55.

good faith and goodwill to the people we are negotiating with.

:33:56.:34:01.

Thank you, Madam Deputy Speaker, I want to welcome this debate and the

:34:02.:34:05.

tour on behalf of this afternoon. Frankly after what has been an all

:34:06.:34:12.

too often fail now debate, the tone of constructive engagement and

:34:13.:34:15.

working together is something that is very, very important. It is down

:34:16.:34:20.

to the leaders in this House to put the decency back into our democracy.

:34:21.:34:27.

I like many people were shocked to hear the statements and the messages

:34:28.:34:31.

and incidents that honourable members read out in the statement we

:34:32.:34:35.

had earlier. We can't have that in this country. We are not going to

:34:36.:34:39.

have that and it is a responsibility on all of our shoulders to ensure in

:34:40.:34:46.

the team unity serve we stamp it out fast. I think however that it is

:34:47.:34:53.

part of a decent democracy that people honour their promises. And

:34:54.:34:57.

let's be honest, there were promises made in the campaign we have just

:34:58.:35:01.

seen which have been broken into shreds, tatters, little bits and

:35:02.:35:07.

pieces already. And it is a job for all of us to hold to account the

:35:08.:35:13.

leaders of that Leave campaign who made promises that now appear not to

:35:14.:35:18.

be honoured. We need to hang those promises are around their necks in

:35:19.:35:23.

the months ahead, because frankly, or democracy cannot withstand too

:35:24.:35:26.

many more broken promises. I want to speak in this debate

:35:27.:35:41.

because I want to say we need to honour the people'sdecision. I think

:35:42.:35:43.

they have given us a stark Somehow they have forgotten to put

:35:44.:36:42.

the Home Office in the new EU unit, as though immigration was not an

:36:43.:36:46.

important feature, it quite frankly beggars belief. We are blessed with

:36:47.:36:53.

the European scrutiny committee. It scrutinises individual instruments

:36:54.:36:59.

of EU legislation. It is chaired by that knuckle and commanding figure,

:37:00.:37:09.

the member for storing. But it is not equipped to look at the big

:37:10.:37:12.

picture or at the principles on which we need to agree, so I hope

:37:13.:37:16.

the Prime Minister will take it seriously that we need a new joint

:37:17.:37:23.

committee of both Houses to get to the bottom of the 6500 instruments

:37:24.:37:29.

we need -- we may need to incorporate into law, including

:37:30.:37:32.

those we might not like. Parliamentary sovereignty has just

:37:33.:37:37.

been voted on. Parliament cannot be sovereign if Parliament is blind.

:37:38.:37:40.

And we need to make sure we are equipped in this House with a method

:37:41.:37:43.

of coming to agreement and making sure the right plan for a new

:37:44.:37:46.

relationship is on the table. I give way. I'd like to thank him for

:37:47.:37:53.

giving way. On the question of democracy and sovereignty which has

:37:54.:37:57.

been raised, does he agree with me that the Government's attempt at

:37:58.:38:01.

setting out a timetable for Brexit should also set out a timetable for

:38:02.:38:06.

scrapping the House of Lords, so we don't have any more unelected

:38:07.:38:08.

bureaucrats to decide day-to-day business? I'm grateful for his

:38:09.:38:13.

intervention and I'm on his side when it comes to the House of Lords.

:38:14.:38:17.

There is the proposal to cut the number of people in this House and

:38:18.:38:21.

increased the other place by over 200 at the last count. It makes you

:38:22.:38:25.

wonder what they ask a dog when it comes to democratic decisions.

:38:26.:38:29.

However, I want to use my speech this afternoon to touch on some of

:38:30.:38:33.

the principles that have to define that new relationship. -- what they

:38:34.:38:38.

ask aired off. This is about national security. We have made

:38:39.:38:45.

important progress and we have good ideas like the European arrest

:38:46.:38:49.

warrant, and we have concerted action on sharing information around

:38:50.:38:54.

crime and terrorism and watch lists. Terrorists do not into -- respect

:38:55.:38:59.

international borders and neither must the fight against international

:39:00.:39:02.

terrorism, and therefore it is essential that we agree and

:39:03.:39:06.

collaborate and co-operate as much as possible with our neighbours when

:39:07.:39:09.

it comes to the fight against crime and terror. Secondly, I think it is

:39:10.:39:16.

quite clear from this election, and the honourable member for South

:39:17.:39:19.

Suffolk made this point quite well, is that we will have to update the

:39:20.:39:22.

principle of free movement and we will have to replace it with a new

:39:23.:39:27.

principle of fair movement. I was the Immigration Minister who

:39:28.:39:31.

introduced the points system for non-EU immigration into this country

:39:32.:39:35.

and during the French presidency, it became clear to me that there was an

:39:36.:39:39.

appetite across Europe for reform of the free movement directive. I wish,

:39:40.:39:44.

and in fact I said then, that this would be a long struggle to get free

:39:45.:39:48.

movement directive is reformed, but, quite frankly, the sooner we start,

:39:49.:39:53.

the sooner we will finish. Surely we have to take that lesson and begin

:39:54.:39:57.

putting on the table serious proposals of reform for free

:39:58.:40:02.

movement? There are one free choices to make. We have to stop by

:40:03.:40:05.

honouring the rights of those who are already here. -- there are over

:40:06.:40:13.

1 million choices. Those who have chosen to make this home. But there

:40:14.:40:18.

are questions about whether they are low skilled or high skilled and

:40:19.:40:22.

questions on how long these macros should last. And whether those

:40:23.:40:31.

rights should lead to whether that should -- whether that should lead

:40:32.:40:34.

to citizenship. And about taxes being paid in. And a huge question

:40:35.:40:41.

of how, as part of a new agreement on fair movement, this country steps

:40:42.:40:45.

up to its international obligations to help those refugees struggling in

:40:46.:40:52.

war zones in the Middle East. We should be doing far more to give

:40:53.:40:57.

safe haven to refugees fleeing war zones and we should make that part

:40:58.:41:01.

and parcel of our reform proposals for fair movement. As part and

:41:02.:41:07.

parcel of this, I think we have to be very careful that we do not

:41:08.:41:12.

damage the free movement of ideas. And that is why I would always argue

:41:13.:41:15.

that students and scientists should be exempt, and alongside that, we

:41:16.:41:21.

have to win sure that co-operation on ideas like intellectual capital

:41:22.:41:26.

and international property protection are part of the new

:41:27.:41:30.

arrangement. -- we must make sure. Thirdly, we must make sure there is

:41:31.:41:34.

no race to the bottom on workers' rights and human rights. It was this

:41:35.:41:39.

country, indeed it was one of our greatest prime ministers, who helped

:41:40.:41:44.

found the Council of Europe. And over the decade we became among the

:41:45.:41:50.

most important authors on human rights. We are the proud authors of

:41:51.:41:54.

the course of justice and we must make sure there is no race to the

:41:55.:41:57.

bottom of workers' rights and we must make we -- make sure we don't

:41:58.:42:01.

enjoy second-class rights in this country. We have got also maximise

:42:02.:42:08.

free trade and free movement of goods and capital throughout the

:42:09.:42:13.

single market. And I think we will need to be honest that we are going

:42:14.:42:17.

to pay a price for introducing some kind of restrictions on migration.

:42:18.:42:21.

And I think we need to think quite carefully about what the prices that

:42:22.:42:25.

we are prepared to pay. And that's why I personally feel that we need

:42:26.:42:29.

to be introducing the minimal possible restrictions on free

:42:30.:42:34.

movement. The fewest fetters possible. But of course when it

:42:35.:42:40.

comes to free movement of trade and capital, we have to ensure that our

:42:41.:42:45.

rights to tax revenue are protected. We have made some progress over the

:42:46.:42:49.

last two years in making sure multinationals pay their share their

:42:50.:42:52.

share of tax. Heaven knows, we have an awful long way to go. We know

:42:53.:42:57.

hundreds of billions sheltered by European companies in tax havens. We

:42:58.:43:02.

have to be in deep collaboration with Europe to make sure people pay

:43:03.:43:06.

their fair share. Finally, we have to have a big debate about sharing

:43:07.:43:11.

the burden is of our neighbourhood. Good neighbours don't shirk their

:43:12.:43:16.

duties, they support their duties. So when it comes to issues like

:43:17.:43:21.

climate change and border protection, there will be countless

:43:22.:43:24.

times where Britain has to step up and say, yes, we can take on the

:43:25.:43:29.

obligations that come with sharing this part of the world, and the

:43:30.:43:32.

Prime Minister was right to say we will not turn our back on Europe and

:43:33.:43:36.

we're not just going to be good neighbours, we are going to be the

:43:37.:43:39.

best of neighbours. Let me conclude by saying I think in the debates

:43:40.:43:43.

that come, there will be an iron relationship between free movement,

:43:44.:43:47.

access to the single market and the integrity of the UK, and I think if

:43:48.:43:51.

we are to maximise that integrity to keep our trade balance good, we will

:43:52.:43:55.

have to keep changes to free movement to an absolute minimum. It

:43:56.:44:00.

would be an error to slam the door to this country closed and lose our

:44:01.:44:05.

place in the world as the great trading nation that we are. That

:44:06.:44:08.

will inevitably lead to the unravelling of the UK. So we need

:44:09.:44:14.

British moderation now more than ever before and we must have no more

:44:15.:44:19.

pie in the sky from politicians with no intention of honouring their

:44:20.:44:23.

promises. And that is why I hope this place will continue to lead

:44:24.:44:29.

debates like today's. It is a pleasure to follow the honourable

:44:30.:44:34.

member from Birmingham. He made some berry fine points and I particularly

:44:35.:44:39.

like the coining of his phrase not moving from free movement to fair

:44:40.:44:44.

movement. There is a right time and a right place to take a risk, and

:44:45.:44:49.

for me, starting my business in 1992, many of you will remember, the

:44:50.:44:56.

16th of September 1992, with unemployment at 3 million.

:44:57.:45:00.

Repossessions running at 70 2000, three times the national average,

:45:01.:45:04.

and interest rates going from ten, 12, 15% in a single day. You will

:45:05.:45:10.

remember the day after, we pulled out of something called the exchange

:45:11.:45:13.

rate mechanism and that was the right thing to do. Many economists

:45:14.:45:17.

said it was the wrong thing to do, it was a big risk, but things could

:45:18.:45:21.

hardly get worse, and it was absolutely the right thing to do.

:45:22.:45:25.

But look at where we are today. We have one of the fastest-growing

:45:26.:45:29.

economies in the developed world. We have virtually full employment,

:45:30.:45:32.

which means all our young people and older people can get a job. And one

:45:33.:45:39.

of the things we had in our business was "Hope is not a strategy". And

:45:40.:45:47.

there was so little strategy, I believe, in Vote Leave, in where we

:45:48.:45:54.

would go in our exit from the EU. And that's why most business

:45:55.:45:58.

organisations, the Institute of Directors, for example, or the CBI,

:45:59.:46:03.

or city UK, were saying, this is the wrong thing to do, and every leading

:46:04.:46:08.

economist and some not very leading economists were saying this is the

:46:09.:46:12.

wrong thing to do. But of course this was seen as some kind of

:46:13.:46:16.

conspiracy. But it wasn't just business that was talking like this,

:46:17.:46:21.

of course. It was the music industry, the science industry, our

:46:22.:46:24.

research organisations, our technology industry. A report by the

:46:25.:46:30.

House of Lords had said, this is such a huge risk because of the

:46:31.:46:33.

complexity of withdrawing from the EU. It will take at least two years

:46:34.:46:41.

clearly with the notice period of Article 50, but it would take many,

:46:42.:46:46.

many years to unwind the legislation, the connective

:46:47.:46:49.

legislation. A report in the times said it would take ten Queen's

:46:50.:46:53.

speech is to unwind that legislation. Which breeds all the

:46:54.:46:56.

uncertainty that businesses do not like. It is not just about trade

:46:57.:47:02.

deals or trading today with Europe and moving and opening more markets

:47:03.:47:08.

around the world. That is a great opportunity. But two cannot simply

:47:09.:47:12.

move your supply base and your customer base from one location to

:47:13.:47:18.

the next overnight. -- but you cannot. And this is what we have

:47:19.:47:24.

been asked to do. Is it not also the case that so much of the trade we do

:47:25.:47:29.

with the rest of the world is by large international companies who

:47:30.:47:34.

locate in the UK because we are in the single market, and we are

:47:35.:47:37.

responsible for so much trade going out beyond the EU? He is exactly

:47:38.:47:42.

right. A good example is the Swiss banks. Despite the fact that

:47:43.:47:48.

Switzerland is part of the European Economic Area, they cannot trade

:47:49.:47:52.

directly with the EU, so they have to base subsidiaries within the EU

:47:53.:47:56.

and happily, firms like credit Suisse and UBS put that subsidiaries

:47:57.:48:05.

in London. As did the big banks. It's why the head of City UK said

:48:06.:48:09.

this move could cost up to 100,000 jobs in the City of London. But this

:48:10.:48:15.

was never dealt with. It was never answered by vote Leave. So the risks

:48:16.:48:22.

here are huge. My honourable friend was shaking his head, that's all.

:48:23.:48:27.

But this was not properly dealt with. And nor has the impact on car

:48:28.:48:31.

manufacturers. This is not about simply opening up new trade markets

:48:32.:48:36.

around the world. It is about a supply chain, a deeply embedded

:48:37.:48:40.

supply chain, right through Europe. A typical driveshaft for a family

:48:41.:48:45.

saloon car is manufactured in six different countries across Europe.

:48:46.:48:50.

So what is that car manufacturer to do? If tariffs are applied between

:48:51.:48:56.

ourselves and the EU? I was talking to a multinational retailer just

:48:57.:49:01.

last evening, who has three members of staff in London -- 3000 members

:49:02.:49:08.

of staff in London. These people move from London to Frankfurt, to

:49:09.:49:12.

Paris, just as we would do from North Yorkshire to London, but what

:49:13.:49:17.

they are faced with is the prospect of not being able to do that. How is

:49:18.:49:21.

it we have made this decision without talking about these issues

:49:22.:49:27.

and answering these questions? And I think there is an even bigger issue.

:49:28.:49:33.

And I look at the European Union. It is such a sensitive stage. It is a

:49:34.:49:40.

House Of Cards. And if the UK pulls our card from the bottom, there is a

:49:41.:49:44.

significant risk that the whole House Of Cards may implode, and that

:49:45.:49:51.

is a domestic economic risk moving to an international, global risk,

:49:52.:49:55.

and also a political risk. And a security risk. Which, again, could

:49:56.:50:00.

hugely affect this country, our economy and our prospects for

:50:01.:50:07.

national security. You will accept that many of the European member

:50:08.:50:12.

states, only a few years ago, they were behind the Iron Curtain,

:50:13.:50:15.

metallic Terry Terry and states, and today they are free and fair

:50:16.:50:21.

democracies. -- Attallah Terry and states. They have made sure they are

:50:22.:50:28.

looking at prosperity and trade and not moving backwards looking

:50:29.:50:32.

eastwards, even worse, towards Russia. So all of these issues are

:50:33.:50:39.

at play. And of course there are many positive reasons to be part of

:50:40.:50:45.

the EU. It is about the opportunity to live, work and study right across

:50:46.:50:51.

the continent. It is about peace and prosperity. And it is about tackling

:50:52.:50:56.

some of our huge challenges, which, again, economic risks, things like

:50:57.:51:00.

climate change, air pollution, drug resistance and tax evasion.

:51:01.:51:09.

Of course people, immigration, is the big issue, and I understand

:51:10.:51:18.

public concern on that, but I believe this was a referendum on

:51:19.:51:22.

immigration and understand we need to deal with this. Here is the

:51:23.:51:28.

opportunity. And as the honourable member for Birmingham Hodge Hill

:51:29.:51:32.

said, we need to deal with that proportionately and there are many

:51:33.:51:34.

different solutions to that problem that we need to look at and work

:51:35.:51:40.

with European neighbours to deal with that problem. But what we must

:51:41.:51:47.

do, we absolutely must do, is we must have free and unfettered access

:51:48.:51:51.

to the single market, because the economic consequences of not doing

:51:52.:51:54.

that are just impossible to contemplate. Too severe to

:51:55.:52:00.

contemplate. All the way through the referendum campaign, I wanted to

:52:01.:52:06.

remain and reform and that option is no longer available, but what we

:52:07.:52:11.

must do now is work together with European counterparts to make sure

:52:12.:52:18.

we do get reform and work collaboratively with European

:52:19.:52:22.

partners to make sure we have a fear economic settlement that works for

:52:23.:52:25.

the European Union and for the United Kingdom.

:52:26.:52:32.

Thank you, Madam Deputy Speaker. I would say it is a pleasure to speak

:52:33.:52:37.

in this debate this afternoon, but that is not really how it feels. I

:52:38.:52:42.

am not the baby of the House but amongst the younger members. And for

:52:43.:52:46.

the 33 years I've been alive I've grown up in a country that is part

:52:47.:52:50.

of the European Union. And part of its character is a confident, open,

:52:51.:52:56.

outward looking nation that looks to the world with optimism, confidence

:52:57.:53:00.

and strength. And though I respect the result and the verdict of the

:53:01.:53:04.

voters last week I cannot disguise my bitter disappointment with the

:53:05.:53:08.

result that was delivered. Because it has put this country on a

:53:09.:53:11.

fundamentally different course for the century than we were previously

:53:12.:53:16.

on. We have already seen the economic impact of that decision.

:53:17.:53:24.

We've seen some of the political repercussions of that decision. And

:53:25.:53:27.

probably will more worrying than anything else, from that result last

:53:28.:53:31.

week, is the sense that our political leaders have yet to find

:53:32.:53:34.

the adequate answers to the questions that have been thrown up

:53:35.:53:41.

by the Leave vote. Now I represent an outer London constituency on the

:53:42.:53:45.

Essex border. Many of the people I represent travel in on the Central

:53:46.:53:49.

line to work in London and many of those will be worried about the

:53:50.:53:53.

future of their jobs. We've already seen the announcement of thousands

:53:54.:53:56.

of jobs potentially moving abroad into the Eurozone. And we hear on

:53:57.:54:02.

the links of jobs elsewhere set to go. We see communities including

:54:03.:54:07.

those that voted overwhelmingly to leave seen the consequences of

:54:08.:54:11.

decisions we have they will no longer be -- we there will no longer

:54:12.:54:17.

be the word investment, such as car manufacturing in the North East, or

:54:18.:54:20.

to bail out the steel industry in Port Talbot. And I cannot help,

:54:21.:54:27.

without feeling too bitter with the result, or finger wagging at people

:54:28.:54:30.

who have reached different conclusions, to say to those people

:54:31.:54:34.

particularly in this House and in the officially designated Leave

:54:35.:54:41.

campaign, that when the attacked stronger in and its advocates, I'm

:54:42.:54:47.

afraid and sorry to see it looks increasingly like actually it was

:54:48.:54:52.

project fact. Whether it is instability in currency of the

:54:53.:54:56.

markets or decisions that have already been taken in the space of

:54:57.:55:01.

days, to relocate jobs, changing peoples lives and affecting human it

:55:02.:55:06.

is for the worse. So let me say, as far as I'm concerned, the

:55:07.:55:09.

Conservative leadership contest can't come soon enough. I relish the

:55:10.:55:14.

prospect of seeing the honourable member for Uxbridge and so to

:55:15.:55:18.

Ruislip at that dispatch box, because along with his friends and

:55:19.:55:22.

the member for Surrey Heath, and other members who prosecuted these

:55:23.:55:26.

arguments, I want to see them live up to the promises that were made.

:55:27.:55:31.

The ?350 million for the NHS, promises made on immigration, and

:55:32.:55:35.

every other promise that they made to the British people, that they in

:55:36.:55:39.

good faith believed when they walked into the ballot box to vote Leave,

:55:40.:55:44.

this place has to deliver accountability if we are to have any

:55:45.:55:48.

trust our faith in politics. Those members when they assume power, some

:55:49.:55:53.

of them already there, they should expect this side of the House, and I

:55:54.:55:58.

suspect members on the other side, to hold them to account for the

:55:59.:56:02.

promises made. Because if I were a Leave voter and find that my job is

:56:03.:56:09.

at risk, or that immigration has not changed substantially in the way I

:56:10.:56:15.

was promised, or that there isn't ?350 million for the NHS, or

:56:16.:56:20.

anything remotely like that, I will feel very betrayed and let down.

:56:21.:56:25.

Just as frankly so many people of my generation and younger do feel let

:56:26.:56:29.

down. Because it is my generation that will be the consequences of

:56:30.:56:32.

this decision longer than anyone else. I can't recall any other

:56:33.:56:38.

issue, where there was such overwhelming economic consensus from

:56:39.:56:41.

this country's leading economists and from around the world, that this

:56:42.:56:45.

country in the longer term will not be as well off as it might have

:56:46.:56:51.

been. Not for a ban today, perhaps, but not as well off as it might have

:56:52.:56:58.

been. -- not ruler than today. For the sorts of team unity is I grew up

:56:59.:57:03.

in, my council estate in Tower Hamlets and other working class team

:57:04.:57:06.

unity is across the country, if we are not as well off, it will not be

:57:07.:57:10.

the wealthiest that feel the impact, it will be the poorest. When

:57:11.:57:15.

businesses do not have as much custom or trade, or as much inward

:57:16.:57:19.

investment from around the world, it will not be the mighty global

:57:20.:57:23.

players affected, they will take business elsewhere, it will be the

:57:24.:57:28.

small and medium-sized enterprises, hard-working people who take the

:57:29.:57:32.

risk and plans, set up a business, work everyday, their fingers to the

:57:33.:57:36.

bone to turn a profit and provide a home and income for their family,

:57:37.:57:47.

they will be the people that pay the price of this decision. So forgive

:57:48.:57:49.

me if I feel somewhat angry about that. I will certainly give way.

:57:50.:57:55.

Thank you. I congratulate him on a very powerful and effective

:57:56.:58:00.

contribution to this debate. I also congratulate the gentleman on his

:58:01.:58:05.

intervention to the Chancellor earlier in relation to airport

:58:06.:58:09.

expansion. What about the future constitutional arrangements, we need

:58:10.:58:12.

to take decisions began to get this country moving and sure we have

:58:13.:58:17.

momentum, and encourage inward investment back into the UK. I would

:58:18.:58:21.

like to congratulate him on that intervention. I am very grateful to

:58:22.:58:25.

the intervention. And in the short time I have been in this House I

:58:26.:58:29.

have been frankly appalled at the extent to which party political

:58:30.:58:35.

self-interest as the key breaks on vital infrastructure decisions to

:58:36.:58:38.

secure the future economic well-being of the nation, or even

:58:39.:58:42.

national security, and that is why the government should bring forward

:58:43.:58:46.

votes on airport expansion, or nuclear continuance deterrent, and

:58:47.:58:53.

other infrastructure projects to keep the country safe and

:58:54.:58:57.

prosperous. We cannot allow these crucial decisions to be sacrificed

:58:58.:59:02.

on the altar of party political management, not least when those

:59:03.:59:05.

attempts seem to be futile, and we have not just seen the role of

:59:06.:59:10.

Britain in the European Union fundamentally changed, but looking

:59:11.:59:13.

at the break-up of the United Kingdom. Not just in terms of

:59:14.:59:19.

Scotland but also that huge achievement, from the Downing Street

:59:20.:59:24.

Declaration to the Good Friday Agreement, the Northern Irish peace

:59:25.:59:27.

process itself put at risk because of the way in which this debate has

:59:28.:59:32.

been handled. And it is travelling at days after the referendum there

:59:33.:59:36.

are still no answers to some of those critical questions about

:59:37.:59:40.

moving forward as a country. Fantastic speech. I agree with your

:59:41.:59:44.

sentiments. Is it also not the case that in the very based case

:59:45.:59:50.

scenario, that a huge amount of government energy and time will be

:59:51.:59:54.

diverted on legal wrangling is that we should focus on the huge issues

:59:55.:59:58.

faced as a country? I wholeheartedly agree. I didn't come to this House

:59:59.:00:03.

to spend hours and hours scrutinising changes to the law to

:00:04.:00:09.

protect rights they already have as members and citizens of the European

:00:10.:00:12.

Union but to advance new ones and fight for things like schools and

:00:13.:00:17.

hospitals and public services and improving the life chances of people

:00:18.:00:24.

in my constituency, not some grand constitutional convention tinkering

:00:25.:00:26.

at the edges to maintain the status quo, rather than advancing the

:00:27.:00:31.

interests of our nation. I am grateful and almost reluctant to

:00:32.:00:36.

interrupt your magnificent floor. But you mentioned the Northern

:00:37.:00:40.

Ireland peace process. The European Union was one of the key components

:00:41.:00:43.

of the Good Friday Agreement, just as we worked with Washington and

:00:44.:00:57.

Dublin. The possibility of this piece across Northern Ireland,

:00:58.:01:03.

arguably the impact this is having on those people? Mike honourable

:01:04.:01:06.

friend has a great deal of expertise in this area and we should take

:01:07.:01:11.

seriously the warnings has given. And I would feel less aggrieved by

:01:12.:01:14.

what he has said, were it not for the fact these very questions were

:01:15.:01:19.

put to the Secretary of State for Northern Ireland in the run-up to

:01:20.:01:22.

the referendum and we were told. Body. That seems to be the blank

:01:23.:01:27.

cheque written on the back of every promise of the Leave campaign. -- we

:01:28.:01:39.

were told not to worry. We see that much of the decisions to Leave were

:01:40.:01:42.

taken not because of the Lisbon Treaty, but because this Parliament,

:01:43.:01:48.

as sovereign as it is, they still don't feel they have control over

:01:49.:01:52.

their lives and destiny. I would hazard a guess that when analysis is

:01:53.:01:56.

done you will be able to map humility by Camilla to those places

:01:57.:02:00.

that voted Leave and those that have had the hardest time because of the

:02:01.:02:07.

nature of our economy. -- map each community. That should worry us more

:02:08.:02:11.

than anything else. Many people voted Leave out of desperation, in

:02:12.:02:15.

the hope the circumstances could not be worse than they are today and in

:02:16.:02:18.

the belief that the immigration system and the flow of people into

:02:19.:02:23.

this country makes them less well off rather than our economy better.

:02:24.:02:29.

That deeply concerns me. Representing one of those in areas

:02:30.:02:33.

that overwhelmingly voted out, one of the issues we face already is 36%

:02:34.:02:38.

of my constituents, the current living wage, and they believe this

:02:39.:02:45.

will increase their salaries, and yet 7000 of my constituents are

:02:46.:02:48.

employed in an industry that are already looking to see what happens

:02:49.:02:53.

next and are stopping investment. Do you agree we need John answers from

:02:54.:02:57.

the government to protect future investment? -- strong answers. We do

:02:58.:03:04.

need those answers and it is not just the economy today but as it

:03:05.:03:07.

would be defined in the future because now this country faces

:03:08.:03:10.

choices about what the structure of the economy looks like and how we

:03:11.:03:14.

intend to compete in a globalised world. I believe, with respect to

:03:15.:03:21.

the benches opposite, there is a risk under not just the current

:03:22.:03:23.

government but the next Prime Minister that we will see a future

:03:24.:03:27.

about a race to the bottom, further casualisation of labour, race to the

:03:28.:03:31.

bottom in terms of wages and terms and conditions, because outside the

:03:32.:03:34.

protection of the single market, it is the only way for this country to

:03:35.:03:39.

profit in away those at the top of society wish to. That makes me even

:03:40.:03:43.

more worried for our country's future, and my final point, that is

:03:44.:03:50.

why we desperately need a change in government. More than 100 years ago,

:03:51.:03:59.

working people, socialist and friendly societies, trade unions,

:04:00.:04:01.

came together because they knew the way to improve the lives of working

:04:02.:04:05.

people and their conditions wasn't by marching through the streets

:04:06.:04:09.

demanding change, but marching through the corridors of power and

:04:10.:04:13.

delivering change. And throughout the great history of the Labour

:04:14.:04:17.

Party, whether the creation of the NHS, or homes fit for heroes, the

:04:18.:04:23.

creation of the open University, the introduction of the national minimum

:04:24.:04:26.

wage, improvements in education standards that let this council

:04:27.:04:31.

estate boys make it to university and this place, success of Labour

:04:32.:04:34.

governments are the only vehicle for delivering progressive change in

:04:35.:04:38.

this country. I would urge members of my party to think carefully,

:04:39.:04:43.

whether or not we prefer the futility of opposition to the

:04:44.:04:48.

ability to change people's lives, the pursuit of power is not about

:04:49.:04:52.

our careers but the life chances and opportunities of our people the

:04:53.:04:55.

Labour Party came into politics to represent. If they don't have

:04:56.:04:59.

confidence in the Labour Party and its leadership to be that change,

:05:00.:05:04.

then we can sign this country to decades of Conservative government,

:05:05.:05:07.

just as we did before when I was growing up in the 1980s! That should

:05:08.:05:20.

hang heavily on the consciences of the skeleton front bench of this

:05:21.:05:22.

party, because until we start providing effective opposition now,

:05:23.:05:24.

this lot will get away with that! That is why we should remember above

:05:25.:05:30.

all else the Labour Party is a cause not a personality cult! It is time

:05:31.:05:34.

people that the interests of the people the Labour Party was founded

:05:35.:05:38.

to represent at the forefront of their judgments about their futures

:05:39.:05:42.

and do the right thing so we can get on and taking this lot apart and

:05:43.:05:45.

delivering a Labour government! Thank you. Can I say what a pleasure

:05:46.:05:54.

it is to follow such a passionate and powerful speech? I feel somewhat

:05:55.:06:00.

the dole bank manager following on from his act. Can I welcome someone

:06:01.:06:10.

unusually not just the subject of the motion but the wording of it as

:06:11.:06:14.

well. I want to congratulate the opposition front bench for bringing

:06:15.:06:20.

this forward today. I must confess, the decision made by the voters to

:06:21.:06:23.

leave the European Union came as both face a prize and a shock to me.

:06:24.:06:30.

In my constituency, I spent time holding debates across the

:06:31.:06:33.

constituency so that people could hear both sides of the argument and

:06:34.:06:37.

then come to their own conclusion. I never sought to influence their vote

:06:38.:06:42.

one way or the other. And disposition of balance also

:06:43.:06:45.

permitted me to spend the last week of the referendum campaign speaking

:06:46.:06:51.

to 25 schools over the last week. -- this position. Both secondary and

:06:52.:06:55.

primary. It troubled me greatly that young children were asking me

:06:56.:06:58.

questions such as, for those who had parents from the EU, would they or

:06:59.:07:03.

their parents have to leave the UK if we leave, or would Britain go to

:07:04.:07:10.

war should we leave. At least it gave me, with the opportunity of

:07:11.:07:16.

balance, the opportunity to do my best to reassure. The sometimes

:07:17.:07:24.

extreme assertions were causing these concerns to be raised and some

:07:25.:07:31.

have been irrationally cast. Had the Remain side recognised, perhaps in

:07:32.:07:35.

more balanced tones, that there were positive reasons for the UK to leave

:07:36.:07:39.

the European Union but even more positive reasons to remain, I wonder

:07:40.:07:44.

whether the UK population would have so readily lined up to give the

:07:45.:07:46.

establishment opinion makers the thumbs down. All of this is for

:07:47.:07:52.

historians to deal with in due course. We are where we are and it

:07:53.:07:57.

is my belief that we in This Place have to lead from the front and get

:07:58.:08:01.

the best deal for the UK in order to preserve the rights that the

:08:02.:08:07.

population has enjoyed for a generation while keeping a semblance

:08:08.:08:12.

of democratic control, which people have demanded from us in this

:08:13.:08:19.

result. I do believe that with the right Civil Service negotiation team

:08:20.:08:23.

in place, we can get a good deal from our European partners. I do,

:08:24.:08:29.

however, believe this will take determination, good grace, hard

:08:30.:08:33.

work, focus and an ability to work with our European counterparts.

:08:34.:08:38.

Thumbing our noses, as Nigel Farage did so disgracefully in the European

:08:39.:08:42.

Parliament this week, not only demonstrates he should not be let

:08:43.:08:46.

anywhere near this process, but also to meet demonstrates the victory and

:08:47.:08:51.

triumphalism rarely bring out the best in negotiating counterparts. --

:08:52.:09:01.

that this vitriol. For seven years, this was working with a team leading

:09:02.:09:15.

the largest bankruptcy. To the honourable member for Ilford North,

:09:16.:09:17.

there was a time when I wanted to come over and give him a cuddle,

:09:18.:09:22.

because, as he was describing for his generation, there was great

:09:23.:09:26.

fear, there is great fear, but I remember that back in 2008 from a

:09:27.:09:30.

personal perspective because I had my mortgage on that institution and

:09:31.:09:34.

my friends and colleagues worked for that institution, and despite what

:09:35.:09:38.

people say about investment bankers, it also includes people who work as

:09:39.:09:41.

cleaners, secretaries and those who don't earn a great wage, and they

:09:42.:09:47.

lost not only that job but also their sense of pride and security in

:09:48.:09:51.

that institution. Of course I will give way. Thank you forgiving way.

:09:52.:10:01.

He's right not just about the support staff, but it is also worth

:10:02.:10:04.

saying that people who do the financial services themselves.

:10:05.:10:09.

Though guilty of all sorts over the years, including bringing our

:10:10.:10:12.

economy almost to its knees, the financial services still generates

:10:13.:10:17.

enormous investment in this country and creates jobs, and it would be

:10:18.:10:21.

foolish to see that great industry, with all the benefits it brings and

:10:22.:10:26.

the tax receipts, go by the wayside, and though we should not let them

:10:27.:10:30.

off the hook, we should never pretend that they are not massive

:10:31.:10:37.

for this country. I absolutely agree with every point he made. There are

:10:38.:10:42.

some who didn't get the punishment they should have got but others took

:10:43.:10:47.

huge punishment and they are still a great export for UK plc. It was

:10:48.:10:51.

still a great shock when that day occurred in 2008 and I well remember

:10:52.:10:55.

it, because another guy who worked for another bank and was in control

:10:56.:10:59.

of his legal department, and this is the largest international investment

:11:00.:11:06.

and commercial bank, and he spent that day dealing with Lehman

:11:07.:11:13.

Brothers, then another bank, and then his own bank, all falling over,

:11:14.:11:20.

and all of us felt money was not safe in any international financial

:11:21.:11:24.

institution at all. I remind the House of those days because while

:11:25.:11:29.

things might seem fearful, cast your mind back to 2008, when I feel

:11:30.:11:34.

things felt even more uncertain. And I would also ask you to recognise

:11:35.:11:37.

that in the last six years, the economy has got better in this

:11:38.:11:41.

country. We have recovered. Who would have thought where we would

:11:42.:11:43.

get to a position where 2 million new jobs have been created? And Pat

:11:44.:11:48.

this is possibly why it is such a great shock what has happened with

:11:49.:11:51.

the EU, because we have got used to some form of stability. -- and this

:11:52.:12:00.

is possibly. Is the honourable gentleman going to refer to the fact

:12:01.:12:03.

that the markets are bouncing back and coming back as we speak? I'm

:12:04.:12:08.

not, not least because it has been made for me, but I'm well aware of

:12:09.:12:12.

that, and it's one of my reasons to feel positive, and a point I want to

:12:13.:12:21.

press on with. At the time, people feel terrible and concerned but

:12:22.:12:25.

history says things might not be as bad as people feel. I will give way

:12:26.:12:34.

in a second. But I would say it brought out the worst states of

:12:35.:12:38.

emotions in people. I would describe three stages of behaviour. Firstly

:12:39.:12:44.

those who lost their heads, secondly those who wielded the knife, and

:12:45.:12:48.

thirdly those who put their heads down and tried to work through the

:12:49.:12:52.

chaos. And I will give way, because I know he had experience of this

:12:53.:12:57.

time as well. I am grateful. I did indeed. At the time I was in Her

:12:58.:13:05.

Majesty's Treasury working for what was the government that was then the

:13:06.:13:11.

opposition. I take the point on the markets. I arrived to help after the

:13:12.:13:16.

events in question! I can assure you! To the point made by the

:13:17.:13:23.

honourable gentleman, markets have bounced and it is good but we should

:13:24.:13:28.

all be aware in this House that the markets will fluctuate and be

:13:29.:13:32.

volatile and up and down. What matters is the long-term momentum

:13:33.:13:37.

inside our economy, particularly the ability to attract ongoing and

:13:38.:13:40.

inward investment. And our minds should go to make sure that tap is

:13:41.:13:50.

not turned off, looking at fiscal measures in our country. I thank him

:13:51.:13:55.

for that. He has such wide experience on this. I will now press

:13:56.:14:00.

on because I'm conscious of time. Just turning back to the better of

:14:01.:14:06.

the three states of emotion I described. Those working through the

:14:07.:14:11.

chaos. Being a believer in the latter, I stayed on with Lehman

:14:12.:14:15.

Brothers for seven years to work with a team of lawyers dealing with

:14:16.:14:18.

the tens of billions of claims made against the estate and which indeed

:14:19.:14:24.

the state made against other trading entities, and I recall for a period

:14:25.:14:28.

of 18 months leading a team dealing with a multi-million pounds case

:14:29.:14:33.

with a bank that had locked up our custodial assets to aid its own

:14:34.:14:39.

claim. We worked to negotiate this bank and ended up settling to both

:14:40.:14:47.

partys' satisfaction. I hope this is a metaphor for what can now be

:14:48.:14:52.

achieved without European partners. As a result of the success, Lehman

:14:53.:14:55.

Brothers and their claimants, who originally feared only getting 10p

:14:56.:15:01.

in the power, will end up getting ?1 50. We struggled to get claimants to

:15:02.:15:08.

get their money because they wanted interest accrue. I use this example

:15:09.:15:14.

because, at the time, as I've expressed, it looked hopeless to

:15:15.:15:18.

staff and financial stakeholders. I recognise this is the way many of

:15:19.:15:23.

our population see the UK's plight following the referendum decision. I

:15:24.:15:27.

hope that over time and with the right team in-place, a better

:15:28.:15:31.

outcome can be delivered for the UK. Only time will tell if our economy

:15:32.:15:35.

will be stronger outside the EU than inside. But what is in our hands is

:15:36.:15:41.

putting an experienced of all the label -- Civil Service team together

:15:42.:15:47.

for the UK and giving them the time and space to come up with a strategy

:15:48.:15:51.

and allowing them to implement it. Whilst we've discussed many of the

:15:52.:15:54.

economic trading principles we would like to see in place, I would urge

:15:55.:15:58.

the House to think more soberly about the type of people we put in

:15:59.:16:02.

place to fight for those. From experience I would say that is as

:16:03.:16:09.

important as cause itself. So as well as transference of the process

:16:10.:16:13.

to come, this is what I believe will give the population the reassurance

:16:14.:16:16.

they so badly need at this uncertain time, and I look forward to the

:16:17.:16:20.

calls from across this House that we should work together and add all of

:16:21.:16:24.

its export -- support and experience to this process so we can support

:16:25.:16:32.

the people of this country. I wish we didn't need to have this debate

:16:33.:16:39.

because I wish we had all voted for the majority had voted to stay

:16:40.:16:43.

within the EU, but we are where we are. I think in the spirit of

:16:44.:16:47.

openness and transparency, it would be useful to set out from the outset

:16:48.:16:51.

that I well understand that the way in which my friends understand this

:16:52.:16:55.

problem, the way in which we frame it, is very different from the way

:16:56.:17:01.

in which other people in this chamber see it. From my point of

:17:02.:17:11.

view, the people we must act on behalf the people of Scotland. I

:17:12.:17:25.

believe in the great principle of sovereignty but not Parliamentary.

:17:26.:17:33.

The honourable member for Thirsk and Walton, who was leaving, until I

:17:34.:17:38.

mentioned him, I thought he made some of the best points in this

:17:39.:17:42.

debate so far about the lack of a plan. Even baldric had a plan! But

:17:43.:17:50.

it would seem... A cunning plan at that! But it would seem that the

:17:51.:17:59.

Leave side had no plan. And unfortunately, the Government had

:18:00.:18:02.

been unprepared for this eventuality, including the Prime

:18:03.:18:07.

Minister today at Prime Minister's Questions, indicating we were having

:18:08.:18:11.

to spend the next few months modelling out what the alternatives

:18:12.:18:15.

were without specifying precisely what the different scenarios are

:18:16.:18:20.

that being planned. I would say from my side, what ever the scenarios are

:18:21.:18:25.

that are being planned, we must have some clarity in there about what we

:18:26.:18:30.

will say about the place of Scotland within the European Union. They

:18:31.:18:36.

cannot make the assumption that we are going to meekly fall and be

:18:37.:18:41.

dragged out of the European Union against the will of the Scottish

:18:42.:18:47.

people. It is not our job to be dragged along. It is our job to

:18:48.:18:50.

represent the interests of Scotland and the Scottish people. And that we

:18:51.:18:55.

will do to the best of our ability. At Prime Minister's Questions in the

:18:56.:19:03.

days before the vote, I raised the case of Thomas and Elke, who live in

:19:04.:19:09.

my constituency. Originally from Germany. Thomas runs a small

:19:10.:19:17.

business in the service sector. Elke is a distinguished artist in glass.

:19:18.:19:26.

They came to Scotland some years ago and bought an old home and

:19:27.:19:32.

refurbished it beautifully. It created jobs in the community,

:19:33.:19:36.

contributed to the community in lots of voluntary ways. But days before

:19:37.:19:41.

the vote, they decided they could not stand the way in which they were

:19:42.:19:46.

being portrayed as immigrants. So they indicated they were leaving the

:19:47.:19:50.

country for the period of the vote and if the vote went to stay out,

:19:51.:19:53.

they would want to leave Scotland permanently. Now, I am still in

:19:54.:20:00.

contact with them, as they are in France at the moment, trying to

:20:01.:20:04.

persuade them to come back. But I say, I am aware they are not the

:20:05.:20:09.

only people who feel that they have been hurt tremendously by the nature

:20:10.:20:14.

of the debate. And also let down by the Government. It is all very well

:20:15.:20:17.

for the Government now to say they are welcome when they denied them

:20:18.:20:25.

the vote on this referendum. And so part of the problem we have in

:20:26.:20:29.

reassuring people is the way in which they have been treated up to

:20:30.:20:34.

now, both by the Government and by those advocating a Leave vote. Now,

:20:35.:20:41.

Elke Anne Thomas were small business people and there's been lots of

:20:42.:20:45.

discussion today about large businesses. -- and Thomas.

:20:46.:20:51.

Do excellent point about the impact of EU nationals, it was also 16 and

:20:52.:20:58.

17-year-olds who were denied the vote as well. Absolutely, and I

:20:59.:21:09.

thank you for reminding me of that. Thank you for giving way, very

:21:10.:21:13.

generous. Just to clarify, I was there when we do metered and

:21:14.:21:19.

committee about aged 16 and foreign nationals, and I made the point on

:21:20.:21:23.

foreign nationals, and if EU nationals had been allowed the vote

:21:24.:21:27.

they could have swung the vote. Even now I regret the result, you cannot

:21:28.:21:32.

underestimate how potentially inflammatory that may have been,

:21:33.:21:36.

given we were not using the franchise from a General Election. I

:21:37.:21:41.

would have to say to the honourable gentleman that I think that is a

:21:42.:21:47.

rather sad argument to make. To me, just as we allowed the vote in the

:21:48.:21:53.

Scottish referendum, Thomas and Elke Weston are as much Scots with as

:21:54.:21:57.

much right to indicate their feelings about the country they have

:21:58.:22:02.

chosen to live in as I have. Just as, when my older brother and sister

:22:03.:22:08.

had to immigrate, which has been the bigger problem for Scotland, because

:22:09.:22:11.

they could not get the opportunities to work in their own land, the

:22:12.:22:17.

countries they have gone to live in, they have been welcome there, and

:22:18.:22:21.

allowed to vote there. I think what has happened is that, by the

:22:22.:22:26.

exclusion, it helped to introduce an element of xenophobia into the way

:22:27.:22:30.

in which this referendum has been conducted. So I have great regard

:22:31.:22:36.

for the honourable member but I'm afraid on that particular point I

:22:37.:22:39.

completely disagree with him. We have got a problem for small and

:22:40.:22:46.

medium-sized companies, as I find it might once constituency, and I would

:22:47.:22:51.

be interested if this is shared elsewhere, there are two types of

:22:52.:22:58.

talking to me, one is those SMEs who export, and there are concerns are

:22:59.:23:03.

primarily about access to markets. And the argument be held earlier

:23:04.:23:07.

that isn't it a good thing about the falling pound that will allow dairy

:23:08.:23:13.

exports to be more competitive? In all honesty I haven't heard a single

:23:14.:23:17.

business pursing making that claim to me. -- single business person.

:23:18.:23:25.

They have said to me the problem of expenses insuring they have access

:23:26.:23:31.

to markets. Without access to markets, the exchange rate is rather

:23:32.:23:36.

immaterial. The second type of SMEs coming and talking to me have not

:23:37.:23:40.

been exporters but they have been importers. They of course are

:23:41.:23:47.

particularly concerned about what is happening with the currency level.

:23:48.:23:51.

What is going to be the cost of bringing in the types of continental

:23:52.:23:55.

products we've been so used to benefiting from over the last 20 or

:23:56.:24:01.

30 years? So I think there are different perspectives on this in

:24:02.:24:05.

small and medium-sized enterprises that reflect real concerned we will

:24:06.:24:09.

have to manage in this new situation. And I think the

:24:10.:24:14.

government will have to not wait for two years until an exit takes place,

:24:15.:24:19.

they will have to rather urgently think about the kind of initiative

:24:20.:24:25.

that can be brought in to assist those small and medium-sized

:24:26.:24:28.

enterprises who are living the period of great uncertainty. And of

:24:29.:24:33.

course, within a greater period of uncertainty, what will it make about

:24:34.:24:37.

-- what will it say about decision-making? They will not go to

:24:38.:24:40.

the bank to borrow foreign investment when uncertain about

:24:41.:24:45.

their future. And Haruki are going to construct that. My fear is that,

:24:46.:24:50.

over a thing, this will lead to less and less investment, not merely by

:24:51.:24:55.

the large corporations, but by many of the small businesses that are the

:24:56.:25:03.

heart of communities. And a further issue I would like to raise the

:25:04.:25:06.

concern about research funding, and academia in society. A lot of people

:25:07.:25:11.

have tried to see not to worry, the contracts that have already been

:25:12.:25:16.

struck are not going to be ended, and so are great universities are

:25:17.:25:21.

safe in that regard. That to me is not what their fundamental concern

:25:22.:25:27.

is. That is about what is the future for European collaboration in

:25:28.:25:32.

research. How is that going to happen if we are exited from the EU?

:25:33.:25:39.

Will they have the same access to other academics? The same access to

:25:40.:25:44.

future research projects? That is highly unlikely unless we retain

:25:45.:25:48.

their place within the European Union. And what of those students in

:25:49.:25:54.

Scotland and elsewhere who have benefited from travel to continental

:25:55.:25:59.

Europe? Who benefits from the great universities France, Germany, Italy

:26:00.:26:05.

and elsewhere? What are their prospects? The future generation is

:26:06.:26:09.

going to be denied the opportunity that those over the last 30 years

:26:10.:26:15.

have had. And that could only be a real tragedy for our society.

:26:16.:26:23.

Thank you, Madam Deputy Speaker. It is a considerable pleasure to follow

:26:24.:26:27.

the honourable gentleman for Kirkcaldy and Cowdenbeath and a

:26:28.:26:30.

fantastic honour to listen to his eloquence. In my case, he is one of

:26:31.:26:36.

my oldest friends in politics. We have a responsibility to act in a

:26:37.:26:41.

way that does not talk down the economy, to collectively support

:26:42.:26:46.

measures to create financial stability and support sustainable

:26:47.:26:49.

economic growth and in this regard I would commend the Bank of England in

:26:50.:26:52.

seeking to reassure markets that amongst other things it will take

:26:53.:26:57.

the necessary measures to sustain liquidity. However, when the Prime

:26:58.:27:01.

Minister speaks in this House as he did on Monday that there had been an

:27:02.:27:07.

adjustment in the financial markets, his comments fly in the face of

:27:08.:27:11.

reality. When we look at what has happened over the course of the last

:27:12.:27:16.

week, we see the pound has fallen by more than 10% against the US dollar.

:27:17.:27:23.

The FTSE 250, which is more representative of the UK economy

:27:24.:27:27.

than the FTSE 100, is down by 12% in one week. When you look behind these

:27:28.:27:33.

indices, UCB severity of decline in and a of economically sensitive

:27:34.:27:44.

areas. RBS than by 20%, Berkeley's 28%. Post developers, some down by

:27:45.:27:53.

30%. -- House developers. These are astonishing falls that clearly

:27:54.:27:57.

represent a crisis in investor confidence in our economy and an

:27:58.:28:02.

indication that investors anticipate a significant shifting expectations

:28:03.:28:08.

for the UK economy. And I note the South Swindon and that consensus

:28:09.:28:11.

expectations for GDP growth in the UK have fallen from 2.1 down to 0.4%

:28:12.:28:21.

for next year. This is no adjustment, as the prime and so

:28:22.:28:25.

called it, this is a significant shift in investor perception of UK

:28:26.:28:30.

plc. And it is one driven by our failure of leadership by the Prime

:28:31.:28:34.

Minister and his government. Let's make no mistake, this is a crisis

:28:35.:28:42.

made in Westminster by Westminster and it needs are full attention if

:28:43.:28:46.

we are to respond in an appropriate manner to the challenges we face.

:28:47.:28:50.

That challenges brought home to us when we see that to date that

:28:51.:28:56.

Moody's have changed their outlay of 12 UK banks and building societies

:28:57.:29:05.

and downgraded outlook on 52 UK sub softens to negative from stable. The

:29:06.:29:10.

Chancellor talked of an emergency budget and hostility measures as a

:29:11.:29:14.

result of Brexit. It is government responsibility to deliver an actual

:29:15.:29:19.

stability, not to kick the legs from that stability and threaten the jobs

:29:20.:29:25.

and livelihoods of citizens. That is precisely what this government has

:29:26.:29:29.

done. These are no abstract matters and it might be better if the front

:29:30.:29:32.

bench paid attention rather than talk to themselves because we are

:29:33.:29:36.

talking about the livelihoods of people in this country and perhaps

:29:37.:29:39.

it would be respectful to the House if they listen to the debate taking

:29:40.:29:44.

place because after all that file in the financial markets affects the

:29:45.:29:48.

pension funds of everyone investing in this country. The stock market

:29:49.:29:55.

are just the future expectations of profit and dividend growth and that

:29:56.:29:58.

should concern us. Goldman Sachs have downgraded UK banks and cut

:29:59.:30:04.

profit forecasts for the sector by a whopping 10 billion euros. Think

:30:05.:30:10.

about that! A Tory row on Europe leads to banking profits down. Do

:30:11.:30:17.

they not have any shame about what they have caused? It is another fine

:30:18.:30:24.

mess that they've got us into! When the government comes to this House

:30:25.:30:29.

and calls for support to change the future for the British Steel pension

:30:30.:30:34.

scheme it is in prior to consideration of future profits for

:30:35.:30:40.

asset growth in that pension scheme. Thousands of British steel workers

:30:41.:30:43.

and pensioners have a trip to the value of their pensions. That is

:30:44.:30:48.

very real and the events of the last few days can only exacerbate that

:30:49.:30:53.

threat. The threat to British Steel pension scheme is one which is

:30:54.:30:59.

newsworthy and current. As the faculty of actuaries response to the

:31:00.:31:02.

consultation suggests that there is a much wider threat to pension

:31:03.:31:06.

schemes. This self induced run on the markets has made that threat

:31:07.:31:12.

greater. We need to put this in the context of the economic

:31:13.:31:16.

circumstances that we are facing. The fallout from the financial

:31:17.:31:21.

crisis of 2007-2008 is still with us. We are burdened with eye

:31:22.:31:27.

watering levels of debt. Wages have barely risen in real terms since the

:31:28.:31:32.

financial crisis. Productivity has flat lined. Prospects for economic

:31:33.:31:36.

growth had already been cut before we ran into the backwash of the

:31:37.:31:43.

referendum. What was required was a focus on driving investment into our

:31:44.:31:48.

economy, focusing on innovation, driving up productivity growth and

:31:49.:31:52.

delivering higher living standards as a result. The UK Government has

:31:53.:31:58.

engineered at the very least an economic setback of its own making.

:31:59.:32:04.

Why? Are fallout over Europe within the Tory party has caused domestic

:32:05.:32:09.

and foreign investors to take fright, but not just at the

:32:10.:32:12.

prospects for growth and stability in the UK, this will have knock-on

:32:13.:32:17.

effect on neighbours in Europe and elsewhere. The Chancellor has talked

:32:18.:32:22.

about further austerity. Yet again, the poorest and the weakest in

:32:23.:32:25.

society will be asked to pay the price for a lack of leadership from

:32:26.:32:32.

the UK to the government -- Tory government. Looking back over the

:32:33.:32:36.

last two years we have seen rising inequality. Monetary and fiscal

:32:37.:32:40.

decisions have driven inequality. There has been lack of appropriate

:32:41.:32:44.

measures to deliver sustainable economic growth and to narrow focus

:32:45.:32:48.

on Quantitative Easing rather than measures that could have led to

:32:49.:32:53.

better outcomes. We have is the government analysis of the

:32:54.:32:58.

quantitive easing programme? As of today, 375 billion was invested in

:32:59.:33:03.

an asset purchase scheme. We are the additional measures to stimulate

:33:04.:33:07.

growth and investment? We know the government and those on the Brexit

:33:08.:33:12.

site had no plan for the prospects of the Leave vote. The Chancellor

:33:13.:33:18.

went into hiding. Let's hear it now. The financial markets have given

:33:19.:33:21.

their judgment on the referendum decision. Weird as the government

:33:22.:33:24.

response beyond the Prime Minister calling the market and adjustment?

:33:25.:33:30.

There needs to be a plan to build confidence and stability. Where is

:33:31.:33:34.

their plan to do this? Let the country hear it. I will give way to

:33:35.:33:38.

the front bench if they want to intervene. So far we have heard

:33:39.:33:43.

nothing that will deliver confidence to the financial markets. We know

:33:44.:33:47.

there is no plan. We have our Prime Minister and Chancellor as a peer of

:33:48.:33:56.

rabbits caught in the headlines, Prime Minister sent packing from our

:33:57.:34:00.

ministers meeting, yesterday's man in Europe and at home. The Prime

:34:01.:34:04.

Minister got us into this mess and has no plan to get us out. Someone

:34:05.:34:09.

else will have to pick up the pieces. The king of the pieces and

:34:10.:34:14.

dealing with economic uncertainty. -- picking up the pieces. Thank

:34:15.:34:19.

goodness for those of us in Scotland we have Nicola Sturgeon and Scottish

:34:20.:34:22.

Government showing effective leadership. We are optimistic for a

:34:23.:34:28.

country. At the time of the 2015 General Election campaign, and that

:34:29.:34:33.

every budget since, the SNP has set out a credible alternative to

:34:34.:34:37.

austerity, investing in public services and kick-starting growth

:34:38.:34:41.

throughout the UK. People in this country and elsewhere have reflected

:34:42.:34:44.

on the leadership that Nicola Sturgeon has shown over the course

:34:45.:34:49.

of the last few days. What we need from the European Union is to

:34:50.:34:54.

recognise the voice of Scotland, that Scotland voted to remain within

:34:55.:35:00.

the European Union, Scotland, an internationalist currently open for

:35:01.:35:04.

business. We had a vote in the Scottish Parliament yesterday

:35:05.:35:08.

showing unity of purpose, giving a mandate to the government to

:35:09.:35:11.

negotiate with the EU to protect the interests of the Scottish people, to

:35:12.:35:15.

make sure we written in that access to the single market that is so

:35:16.:35:21.

important to the security of jobs, investment and growth. And let me

:35:22.:35:25.

say to the people of Scotland and in this chamber Scotland in Europe will

:35:26.:35:29.

be a beacon of hope, of bringing jobs and investment to this country.

:35:30.:35:33.

People in London concerned about international services, you can come

:35:34.:35:40.

to Scotland and can come to a country that sees itself as being

:35:41.:35:44.

part of European destiny. One that will be focused on jobs and growth,

:35:45.:35:50.

delivering for the people of Scotland. Happily give way.

:35:51.:35:56.

Would you also see there is a need for how we all work together here in

:35:57.:36:02.

the union and we need to find some way of how you fit into the union

:36:03.:36:06.

and all the other parts of the UK work together, so we can work with

:36:07.:36:12.

some forward movement? I thank him for his intervention. Of course,

:36:13.:36:17.

those of us on these benches will work together to make sure we can

:36:18.:36:20.

rescue something out of the carnage of that vote that took place

:36:21.:36:25.

throughout the UK, but I recognised specifically in Scotland and

:36:26.:36:28.

Northern Ireland that the people of those two countries voted to remain

:36:29.:36:33.

within the EU, and yes, of course, we recognise we want to do our best

:36:34.:36:37.

for all of the UK, but our primary responsibility is to protect the

:36:38.:36:40.

people of Scotland. And that's why we need to extend the front of her

:36:41.:36:47.

-- the hand of friendship to the people of the EU and say to them,

:36:48.:36:50.

please stand by us. We have stood by you. Let's make sure Scotland stays

:36:51.:36:58.

in the EU, and we can deliver hope, prosperity and jobs for our people.

:36:59.:37:04.

Can I also think the Labour Party for giving us the opportunity to

:37:05.:37:07.

debate this matter? The EU referendum result has been debated

:37:08.:37:11.

by European parliaments, the Welsh Assembly and the Scottish

:37:12.:37:14.

Parliament, so I think it's high time we had the opportunity to do

:37:15.:37:18.

so, notwithstanding the time the Prime Minister has given us in his

:37:19.:37:22.

statement. But I think the Labour Party for giving us that

:37:23.:37:27.

opportunity. -- I thank. This decision will have a huge impact on

:37:28.:37:31.

Scotland and it is a privilege, as always, to follow the members. This

:37:32.:37:44.

will have a significant impact. My neighbour made the point about

:37:45.:37:51.

research. In my own constituency, at the University of Saint Andrews,

:37:52.:37:54.

they have argued that for everyone pounders Scottish funding grant we

:37:55.:38:01.

receive, we generate and return ?12 to our economy. -- for every ?1.

:38:02.:38:08.

That is a significant impact on the economy locally. I also speak from

:38:09.:38:13.

personal experience as somebody who benefited from the right to live and

:38:14.:38:18.

work in the EU and as somebody who benefited from a Rasmus. I know the

:38:19.:38:23.

opportunities that gave me and the opportunities young people are now

:38:24.:38:28.

missing out on, and I'm wondering if the Government will reflect on

:38:29.:38:32.

training opportunities and educational opportunities that are

:38:33.:38:35.

not only a loss to individuals but also the broader economy as well. It

:38:36.:38:42.

is worth remembering, on a question of democracy, Scotland voted

:38:43.:38:46.

overwhelmingly to remain part of the European Union. If you take the

:38:47.:38:49.

electoral regions throughout the United Kingdom, the highest

:38:50.:38:57.

proportion for any side, 62%, in Scotland in every single local

:38:58.:39:00.

authority area, including the two who voted to join the EU back in

:39:01.:39:08.

1975. That was a phenomenal Markoff support for European Union

:39:09.:39:13.

membership. -- phenomenal sign of support. It is one you would be

:39:14.:39:17.

ill-advised to ignore. On the point of democracy, I talked about the

:39:18.:39:22.

intervention earlier on and it is an important one. This will gain powers

:39:23.:39:30.

and have more say in the day-to-day lives of our citizens, so why is it

:39:31.:39:38.

that on a question of democracy that we retain the House of Lords, and an

:39:39.:39:46.

affronted -- an affront to democracy. It is a disgrace. On the

:39:47.:39:53.

point of stability, which is so important for the economy, and,

:39:54.:40:03.

frankly, the huge uncertainty that lies in Scotland, I was delighted

:40:04.:40:05.

that the Scottish Government has showed a huge amount of leadership

:40:06.:40:09.

and I pay tribute to all parts of the Scottish Government, which is

:40:10.:40:13.

the only functioning party of government, it would appear, left in

:40:14.:40:17.

the UK. The vacuum that has been left by the Conservative Party and

:40:18.:40:22.

by the Labour Party, which is reflected in this chamber right now,

:40:23.:40:26.

is doing no credit to This Place whatsoever. What's more, just as the

:40:27.:40:31.

people of Scotland are being well served by the Scottish Government, I

:40:32.:40:35.

believe the people of England are being ill served by their two

:40:36.:40:39.

biggest parties and the people of England have made their decision,

:40:40.:40:45.

and we respect that, but they deserve much, much more than that.

:40:46.:40:54.

Can also say, we have a rich heritage of European citizens who

:40:55.:40:57.

have made their lives and their homes in the United Kingdom? And I

:40:58.:41:04.

reflect locally the huge contribution that European citizens

:41:05.:41:08.

have made in my constituency and continue to make. They enrich our

:41:09.:41:11.

economy and society more broadly as well. I want to reflect what the

:41:12.:41:17.

First Minister of Scotland has said, and I wish more leading politicians

:41:18.:41:22.

had said this. I want to take the opportunity this morning, the

:41:23.:41:24.

morning of the referendum, to speak directly to the citizens of other

:41:25.:41:28.

European countries living in Scotland. You remain welcome here,

:41:29.:41:33.

Scotland is your home and your contribution is valued. And that is

:41:34.:41:37.

a point we all need to be repeating over the coming weeks and months.

:41:38.:41:41.

I'll gladly give way. I thank him for giving way. The point has been

:41:42.:41:47.

made by other members here. There is no impediment to this Government for

:41:48.:41:51.

this House for making a positive statement about the rights of those

:41:52.:41:56.

EU citizens whom we value and make an unbelievable contribution to our

:41:57.:42:00.

communities. That can and should be done, and we really need to be

:42:01.:42:04.

pressing all those seeking united leadership. Before we go through the

:42:05.:42:10.

rigmarole of electing a new leader, we need to go through that to help

:42:11.:42:17.

the uncertainty, which must be unbearable. He's right. We must talk

:42:18.:42:26.

about the richness they bring to our society. We are a richer country for

:42:27.:42:34.

it. The Scots Irish, the Scots Australians as well! If the

:42:35.:42:41.

leadership contenders, no matter which part of the House it is, I

:42:42.:42:44.

think it would be valuable and something we would value as well,

:42:45.:42:48.

and it's an important thing to say. Moving on, things have changed, and

:42:49.:42:54.

changed utterly. Over the past few days in Scotland, we have seen a

:42:55.:43:01.

number of people who voted no in the previous independence referendum

:43:02.:43:03.

coming around to the idea of independence, or certainly coming

:43:04.:43:09.

around to the idea of working together to maintain Scotland's

:43:10.:43:14.

place in the EU. And the Liberal Democrats and the Green Party are

:43:15.:43:17.

working with the SNP to maintain Scotland's place in the European

:43:18.:43:22.

Union. I am interested that the Scottish Liberal Democrats have now

:43:23.:43:26.

been reported as urging their party to support independence and drop

:43:27.:43:31.

their opposition. The Henry McLeish, a previous Labour First Minister,

:43:32.:43:38.

saying he is very attracted to independence as a game changer. We

:43:39.:43:45.

are also seeing support out with from the former Belgian Prime

:43:46.:43:50.

Minister, saying it is wrong Scotland might be taken out of the

:43:51.:43:56.

EU against its will. The leader of the European peoples party saying

:43:57.:43:58.

Europe is open to new member states and those who want to stay, and we

:43:59.:44:10.

are staying, are welcome. I pay credit to someone who has said they

:44:11.:44:14.

feel Ireland ought to be our friend and demand fair play. I welcome all

:44:15.:44:17.

these comments from our European friends and allies. I will finish

:44:18.:44:24.

with this. Historically, and as a matter of fact, Scotland may be on

:44:25.:44:29.

the geographical periphery of Europe, but we sit in Europe's heart

:44:30.:44:34.

politically and it is there that we want to stay and that we will

:44:35.:44:36.

Thank you. Thank you. I would just like to

:44:37.:44:47.

start by saying it is a pleasure to be debating opposite the minister

:44:48.:44:51.

today in the first of many debates, hopefully. I would also like to

:44:52.:44:55.

thank the Chancellor, who is not here now, for his kind words

:44:56.:45:01.

earlier. We have had some fantastic speeches today and I want to run

:45:02.:45:04.

through some of the main issues that were raised. The member talked about

:45:05.:45:12.

the absence of a plan, the member for South Suffolk stated that some

:45:13.:45:16.

of the Remain predictions were coming right and echo the sentiments

:45:17.:45:21.

for a cross-party approach and said this is bigger than any leader. It

:45:22.:45:25.

certainly is. The honourable member for Birmingham Hodge Hill, I welcome

:45:26.:45:32.

his comments, stating, I want to put decency back into democracy. Another

:45:33.:45:38.

member feared for an international House Of Cards that Britain's exit

:45:39.:45:43.

could collapse. The honourable member for Ilford North, who did a

:45:44.:45:47.

fantastic speech, echoed risks that jobs would be moved and communities

:45:48.:45:53.

in deprived areas would struggle to maintain investment and that Project

:45:54.:46:00.

Fear would turn out to be Project Fact. Another member said, we are

:46:01.:46:04.

where we are, and we must lead from the front, and I couldn't agree

:46:05.:46:09.

more. Another member told us the terrible and harrowing story of his

:46:10.:46:15.

constituents who left to go to France on the result of the European

:46:16.:46:19.

referendum. We hope you can coax them back again. He also highlighted

:46:20.:46:27.

the problems that SMEs facing trade. Then another really Paterson speech,

:46:28.:46:34.

-- passionate speech, stating we cannot kick the legs from stability

:46:35.:46:38.

and the falling markets affects everybody's pension. And then the

:46:39.:46:44.

honourable member for North East Fife, who stated he had echoed

:46:45.:46:48.

comments regarding those from the EU, that they have enriched his

:46:49.:46:53.

economy and he wanted to stay today that their contribution is valued,

:46:54.:46:57.

and that is a statement certainly shared across the House today. As my

:46:58.:47:02.

honourable friend the Shadow Chancellor outlined earlier in the

:47:03.:47:10.

debate, the decision to leave the EU poses considerable risk to the UK

:47:11.:47:17.

economy. Sterling remains volatile, markets are fluctuating, the credit

:47:18.:47:20.

rating has been lost and employers in some sectors have already started

:47:21.:47:25.

discussing the prospect of moving jobs out of Britain. This is very

:47:26.:47:29.

worrying but we can turn it around, and to do that we need political and

:47:30.:47:35.

economic stability. We need all parties now to put political

:47:36.:47:38.

interest aside and work together in the interests of their nations'

:47:39.:47:43.

economies, and I enjoyed the tone of today's debate, which has broadly

:47:44.:47:47.

agreed with that sentiment. I certainly will. And like to thank

:47:48.:47:51.

the honourable member for her comments. Would she join with me in

:47:52.:48:01.

welcoming the fact that the Green Party and see the Brownlee rats have

:48:02.:48:09.

given a mandate to go and negotiate with the EU? -- -- the Liberal

:48:10.:48:18.

Democrats? Hopefully we will debate that further in this House. Sadly, I

:48:19.:48:24.

don't share the Chancellor's assurances that our economy is

:48:25.:48:29.

shockproof. He didn't fix the roof while the sun was shining. Quite the

:48:30.:48:35.

opposite - he sold it off. We have been living on a swelling bubble of

:48:36.:48:40.

household borrowing and poorly paid, insecure jobs. I was pleased to hear

:48:41.:48:45.

his emergency Budget is shelved for the time being. However, there

:48:46.:48:48.

remains a high probability that is there at your measures will be

:48:49.:48:53.

introduced later in the year, imposed by Nu Conservative Prime

:48:54.:48:56.

Minister that could be even more ideological to the right than his or

:48:57.:49:02.

her predecessor. -- by Nu Conservative Prime Minister. This

:49:03.:49:08.

has taken hold despite economists the world over believing cuts to

:49:09.:49:12.

government spending when the economy may be heading into recession is

:49:13.:49:16.

economic nonsense. The most vulnerable will suffer and our

:49:17.:49:21.

communities will snap under the strain of further public sector

:49:22.:49:24.

cuts. Quite frankly, cannot take any more. It is not hard to understand,

:49:25.:49:30.

therefore, some reasons why matter -- mass swathes of people in the

:49:31.:49:37.

country voted the way they did in the referendum. It is no wonder

:49:38.:49:41.

people are angry with the political elite when their financial

:49:42.:49:43.

situations have worsened rather than improve. On the doorsteps of my own

:49:44.:49:49.

constituency, which suffered arcades of industrial decline, I could feel

:49:50.:49:52.

the anger from those who had been left behind. But they were right to

:49:53.:49:57.

be angry. Angry that our hospitals and schools are in a state of crisis

:49:58.:50:01.

and starved of funding. Angry that many people can't get a home. Angry

:50:02.:50:06.

that our public services are being cut so that safety nets on which

:50:07.:50:11.

they rely are eroded. People quite rightly wanted something or someone

:50:12.:50:16.

to blame for that but, sadly, this was confused in the rhetoric of some

:50:17.:50:20.

of the referendum campaigns. They stirred up a hornets nest,

:50:21.:50:25.

scaremongering about migration rather than the core issue of why

:50:26.:50:29.

our economy wasn't working and how the EU affected that.

:50:30.:50:44.

Subtitles resume with Wednesday in Parliament at 11pm.

:50:45.:50:51.

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