Part of the debate – Senedd Cymru am 3:10 pm ar 29 Mawrth 2017.
Diolch, Llywydd. Mae Aelodau yn gwybod bod y Prif Weinidog—sef Prif Weinidog y Deyrnas Unedig—wedi, y prynhawn yma, ysgrifennu at Lywydd y Cyngor Ewropeaidd i ddatgan yn ffurfiol bod y Deyrnas Unedig yn bwriadu gadael yr Undeb Ewropeaidd o dan erthygl 50 o’r cyfamod sydd yn llywodraethu’r Undeb Ewropeaidd. Felly, heddiw yw diwedd y cyfnod o siarad a dechrau’r cyfnod o drafod o ddifrif.
I can say, Llywydd, that I discussed the article 50 letter in general terms with the Prime Minister when we met in Swansea last week. I should be clear, though, that I didn’t see the letter before today and we were not invited to contribute to its drafting. This is unacceptable and is the culmination of a deeply frustrating process in which the devolved administrations have persistently been treated with a lack of respect. It’s all the more regrettable given that the UK Government’s own stated aim was to develop a negotiating framework for the whole of the UK. They have missed that opportunity to give clear expression to that aim.
Llywydd, the Welsh Government believes in the UK as much as the UK Government does, even if our vision is very different to theirs. If the Prime Minister truly believes in the union and in reflecting the wishes of the UK as a whole then she needs to adopt a very different approach. I don’t see how the Prime Minister can claim to negotiate on behalf of the whole of the UK when she disregards the rights of this Welsh Government to speak up for the people of Wales.
Llywydd, however, I have always made clear that the result of the referendum must be respected and the sending of the article 50 letter is the logical consequence of that result. I convened a meeting of the Cabinet earlier this afternoon and, after months of speculation, we can now move forward to the negotiations. Llywydd, in January, the Welsh Government, working with Plaid Cymru, set out in our White Paper ‘Securing Wales’ Future’ a credible, comprehensive and authoritative approach to EU exit. We defined clearly Wales’s priorities for the EU negotiations and did so in a way that works for the whole of the UK. We called for continuing full and unfettered access to the single market. We called for the achievement of greater control of migration through making a clear link to work, while guarding against exploitation of workers, for the replacement of the annual EU funding amount of £680 million with an uplift to the block grant, without any preconditions as to how that’s used. We called for the full respect of the devolution settlement while reforming the UK constitution to make it fit for purpose after EU exit—a subject that I’ve been discussing today with Labour Party colleagues from across the UK. We called for the preservation of the social, employment and environmental protections that have been developed through our membership of the EU, and for transitional arrangements to be put in place to ensure there is no cliff edge for businesses as we transition from the EU towards a new relationship with Europe.
Llywydd, I agree with the Prime Minister that a strong and successful European Union is in Britain’s interest, and that a strong and successful United Kingdom is in Europe’s interest. We need each other, inside the EU or out, and I welcome the Prime Minister’s emphasis on a ‘new deep and special’ relationship with the EU. I have always said that leaving the European Union does not mean leaving Europe. The approach to negotiations should reflect this spirit of mutual interest.
In a letter to us today, the UK Government says it has taken into account our six priorities in formulating its negotiating position, and, despite the huge flaws in the internal UK negotiating process, I believe we can see evidence of this. There is common ground on the single market—we call for ‘full and unfettered access’ while they say freest and most frictionless trade possible’.
The UK wants to achieve this through a bespoke bilateral free trade agreement with the EU 27. We don’t think this is the only way, or even necessarily the best way, but we recognise that this approach could, in principle, work. The Prime Minister’s letter recognises that World Trade Organization rules represent the default position of the UK in the absence of an agreement. I repeat what I’ve said many times: such an outcome would be a disaster for Wales and, I believe, for the UK as a whole.
Llywydd, I agree, too, with the focus on the UK’s special relationship with Ireland. There is much attention given to retaining the soft land border between the north and the south of Ireland, and we support that priority. But my focus is on Wales’s maritime border with Ireland, especially the ports of Holyhead, Fishguard, and Pembroke Dock. The common travel area with our nearest neighbour is a vital interest for Wales, as it is for Ireland, and the Taoiseach and I agreed this when he came to see me a couple of weeks ago.
Llywydd, two sets of negotiations are, of course, required, as the Prime Minister’s letter references. The first is the treaty-based article 50 exit process. The second is the UK’s forward relationship with the EU. In our view, it is highly unlikely that—given the scale of this work, and even assuming maximum good will on both sides—finalising both agreements within a two-year timespan will prove possible. For that reason, we’ve argued consistently for a transitional period to bridge our changing relationship with Europe. Again, I believe the UK Government has gradually come around to the same view as it increasingly talks—and explicitly so, in fact, in the Prime Minister’s letter—about an implementation period to manage EU exit.
Llywydd, as with any negotiation, there will need to be some willingness on both sides to compromise and agree trade-offs. We are realistic and understand why the Prime Minister cannot at this stage speculate publicly about which trade-offs the Government will be prepared to make as the negotiations progress. But, for our part, we are clear that securing full and unfettered access to the single market must be the UK’s top priority. Anything less than this will be bad for Wales.
Llywydd, let me be clear. We are prepared to work with the UK Government to argue the case for a new, deep and special relationship with the EU, anchored in a comprehensive, broadly based free trade agreement with the EU-27, which provides full and unfettered access, or free and frictionless access if you prefer, to the single market. That is essential for our businesses, our economy, the future prosperity of Wales and, indeed, for the whole of the UK. We will do what we can to advance this cause, here in the UK, in Brussels and with our European partners. I repeat again: it cannot be said often enough that WTO rules would be a disaster for Wales.
Llywydd, as the Cabinet Secretary for Finance and Local Government and I have made abundantly clear, we’ve been severely disappointed and frustrated with the JMC process, through which we’ve arrived at this point, and we continue to press the UK Government to include us directly and fully in the negotiations themselves once the format has been agreed with the European Union. There are many important questions that remain to be resolved here within the UK, of course, especially on finance and our constitutional issues. Wales was promised it would not lose a penny of funding as a result of Brexit and we will hold the UK Government to that promise.
On the constitutional issues, the Prime Minister says we will have more devolved powers after our EU exit and that nothing we currently have will be clawed back. If that proves to be the case, I will welcome that outcome. If not, this Government will oppose vigorously—as, I have no doubt, will others in the Chamber—any attempt to claw back powers or to ensure that powers rest in Whitehall rather than coming straight here from the EU. I will have more to say on that after the White Paper on the great repeal Bill is published tomorrow.
Llywydd, as far as the EU negotiations are concerned, if the UK Government is prepared to work constructively with us, then we are prepared to do everything we can to help. We have a strong reputation within the EU, particularly in the institutions of the EU, as good Europeans. That’s been built up over many years through our high standards of implementation of European programmes, our visibility in Brussels and our active and enthusiastic participation in a wide range of European networks and partnerships. We are prepared to use our reputational capital to help argue the UK’s case for a mutually beneficial future relationship with the European Union.
The UK Government and the Prime Minister in particular now have a heavy responsibility in leading the negotiations. She and the team around her will need to realise that, in negotiating successfully, you need to listen to and respect the views and legitimate interests of your counterparts. But the first job of this Government is to speak up for Wales, and we will do that with vigour and determination. We will not sulk from the sidelines, but step up to the plate and do what we can to deliver the best outcome for our nation of Wales.