I think that I would like to say a few words, despite what the noble Lord, Lord Mandelson, says. I sense there is some division. Let me start by trying to mend some bridges—pardon the pun. All of us in this House wish our country to prosper. We all want to see more investment and more jobs. The very simple question raised by these amendments is this: in light of the vote to leave the EU, how can we best do that? I know that the noble Lords, Lord Hain and Lord Monks, and other noble Lords whose names are on these amendments, have long-held views that the best route to achieve that aim is, at least in part, for the United Kingdom to remain within the EU and within the single market. I respect their views and the steadfastness with which they hold them. I will try my best to be eloquent, but I am sure that what I am about to say will not deflect them and a number of other noble Lords, such as the noble Lord, Lord Mandelson, from supporting this amendment. But I will briefly set
out why the Government oppose the amendment. The first and most obvious reason is that it has nothing to do with the Bill. The Bill has one purpose only: to enable the Government to start the process of negotiation. It is not a means to dictate the terms of the negotiation.
The second reason concerns the democratic arguments. Very briefly, as I said earlier, the Government promised to hold a referendum and to honour its result. Yes, I know that the Conservative Government said that they would protect our role in the single market in the manifesto. But as my noble friend Lord Blencathra pointed out, the manifesto also promised to respect the result of the referendum—a promise which this Parliament endorsed by passing the European Union Referendum Act.
As the noble Baroness, Lady Hayter, said, the debate we have heard tonight has been a rerun of the referendum campaign. As I said earlier, during that campaign, every household was sent a leaflet which spelled out the consequences of leaving as regards our membership of the single market. A number of people on both sides of the argument pointed out that we could not vote to leave and then try to remain in the single market. Criticising the leave campaign, one of those arguing to remain said:
“Some of those advocating British withdrawal suggest that we can have our cake and eat it by staying within the European single market to retain the great bulk of our trade which is with EU countries”.—[Official Report, 2/3/16; col. 855.]
Those are the words of the noble Lord, Lord Hain, and he was quite right. The four freedoms are seen by many across Europe as indivisible, and we should respect those views.
Much more than that, as other noble Lords have said, remaining a member of the single market would mean complying with the EU’s rules and regulations that implement the four freedoms, without having a vote on what those rules and regulations are. It would almost certainly mean accepting a role for the Court of Justice of the European Union. It would mean still not having control over immigration—relying on enforcement powers rather than creating an immigration system, which this Government intend to build, which allows us to control numbers and encourages the brightest and best to come to this country.
As to the customs union, were we to remain a full member, we would remain bound by a common external tariff, which would greatly limit our ability to strike our own trade deals and our freedom to determine the level of UK tariffs. Were we to remain within the common commercial policy, we would not be able to pursue freely our bold, ambitious trade agenda with the rest of the world. We would instead, as now, be ceding responsibility for this to the European Union. So to remain a member of the single market and to remain a full member of the customs union would, to all intents and purposes, mean not leaving the EU at all.
As to the EEA, I agree with the noble Baroness, Lady Hayter, that it suffers from a democratic deficit. Once we leave the EU, as my noble and learned friend said earlier, the EEA agreement will no longer be relevant for the UK. It will have no practical effect. But we expect a phased process of implementation to cover our withdrawal from the EU in which both
Britain and the EU institutions and member states prepare for the new arrangements between us. This is intended to give businesses enough time to plan and prepare for the new arrangements. The interim arrangements that we rely on will be a matter for negotiation.