This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/politics/2016/dec/01/brexit-secretary-suggests-uk-would-consider-paying-for-single-market-access

The article has changed 9 times. There is an RSS feed of changes available.

Version 3 Version 4
David Davis suggests UK would consider paying for single market access David Davis suggests UK could pay for single market access
(about 2 hours later)
David Davis has suggested that the government would consider making contributions to the EU budget in exchange for access to the single market, saying his Department for Exiting the EU would consider all options to get the best deal with the bloc. Britain could pay into the EU budget in exchange for access to the single market, David Davis has told MPs, as ministers would consider all options to get the best Brexit deal.
The Brexit secretary said the government would not rule out making future payments indefinitely in order to secure favourable access to European markets, in remarks that were endorsed by the prime minister’s spokeswoman and the chancellor.
During questions in the House of Commons, the Labour MP Wayne David asked if the Brexit secretary would “consider making any contribution in any shape or form for access to the single market”.During questions in the House of Commons, the Labour MP Wayne David asked if the Brexit secretary would “consider making any contribution in any shape or form for access to the single market”.
Davis said the government would look at the options during the article 50 process over the next two years. “The major criterion here is that we get the best possible access for goods and services to the European market,” he said. “And if that is included in what he is talking about, then of course we would consider it.”Davis said the government would look at the options during the article 50 process over the next two years. “The major criterion here is that we get the best possible access for goods and services to the European market,” he said. “And if that is included in what he is talking about, then of course we would consider it.”
In reply to my Question, David Davies has stated that govt is prepared to consider 'paying' for access to Single Market. Significant #brexitIn reply to my Question, David Davies has stated that govt is prepared to consider 'paying' for access to Single Market. Significant #brexit
The prime minister’s spokeswoman said Davis’s view was “consistent with what we have said to date, which is that it will be for the UK government to make the decision about how taxpayers’ money will be spent”. Such an approach would see Britain adopt a similar model to Norway, which pays €869m a year to trade in the single market, take part in EU research programmes and for criminal justice cooperation. Similar access could cost the UK €5bn a year according to some MEPs.
Downing Street stressed no decision had been made. “Let’s not get ahead of ourselves. We are at the stage of preparing for negotiations,” the spokeswoman said. “What we have said is that we will look at how we get the best possible deal. People are suggesting we should consider [paying contributions] and that was the response he [Davis] gave.” Sterling leapt up 1% against the dollar at $1.26 after Davis’s remarks, its highest level in three weeks. Against the euro, the pound added 0.63%, rising to €1.18, aided by the eurozone currency’s struggles in the face of the Italian referendum on Sunday.
The pound surged on news that the government was prepared to consider paying for access to the single market. The chancellor, Philip Hammond, said Davis was “absolutely right” and stressed that the UK would also need to make concessions to secure the most favourable deal.
Sterling was up 1% against the dollar at $1.26, its highest level in three weeks. Against the euro, the pound surged 0.63% to €1.18, aided by the eurozone currency’s struggles in the face of the Italian referendum on Sunday. Risking irritation from his party’s Eurosceptic wing, Hammond said the UK needed to give way to Brussels and other EU member states on some issues or face the clear risk that any deal would collapse. Hammond said that Davis meant that the UK had to go into the talks with “as many tools in our toolbox as possible”. He was speaking in Edinburgh before he met Scotland’s first minister, Nicola Sturgeon.
“You can’t go into any negotiation expecting to get every single objective that you set out and concede nothing on the way,” he said. “It will have to be a deal that works for both sides. I think David Davis is absolutely right not to rule out the possibility that we might want to contribute in some way to some form of mechanism.”
The prime minister’s spokeswoman said Davis’s view on EU budget contributions was “consistent with what we have said to date, which is that it will be for the UK government to make the decision about how taxpayers’ money will be spent”.
Downing Street stressed no decision had been made, but options were being kept open. “Let’s not get ahead of ourselves. We are at the stage of preparing for negotiations,” the spokeswoman said. “What we have said is that we will look at how we get the best possible deal. People are suggesting we should consider [paying contributions] and that was the response he [Davis] gave.”
Iain Duncan Smith, the leave supporter and former cabinet minister, said he did not believe Davis was necessarily talking about paying for access to the single market.Iain Duncan Smith, the leave supporter and former cabinet minister, said he did not believe Davis was necessarily talking about paying for access to the single market.
“I don’t think he was answering the question that was posed to him, what he was talking about here is: how do you get a deal that allows British and Europeans to access each other’s markets without tariff barriers or artificial barriers for services?” he told the BBC’s World At One. “I don’t think there’s any deal where you can say, we’ll pay money in and you’ll allow us access, because you might as well have tariff barriers.”“I don’t think he was answering the question that was posed to him, what he was talking about here is: how do you get a deal that allows British and Europeans to access each other’s markets without tariff barriers or artificial barriers for services?” he told the BBC’s World At One. “I don’t think there’s any deal where you can say, we’ll pay money in and you’ll allow us access, because you might as well have tariff barriers.”
The German Christian Democrat MEP Reimer Böge, the former chair of the European parliament’s budgets committee, has previously told the Guardian he envisaged that countries wishing to participate in the single market would need to pay into the common pot, or face being barred from EU programmes and funding. German Christian Democrat MEP Reimer Böge, the former chair of the European parliament’s budgets committee, has said the UK could pay up to €5bn a year for the highest levels of access to the single market, equivalent to the status of Norway.
“Germany, the Netherlands, Sweden and other net payers can never accept that they pay the bill for the internal market and Great Britain has access to the market without paying anything,” he said. “There will be an ongoing bill, year by year, to be a member of the internal market.”
During the debate, the Brexit secretary said he was keen not to rule out any option before the end of March, the government’s self-imposed deadline for triggering article 50.
“There is one chance in this negotiation. It’s unlike almost anything else that comes in front of this house. Anything else we can come back and repeal it, change it or amend it,” he said. “This is a single-shot negotiation. We have to do the analysis first.”
The shadow Brexit minister Matthew Pennycook also asked Davis if the government was expecting to pay an estimated “divorce bill” of up to €60bn to the EU after the UK leaves to cover unpaid budget commitments, pension liabilities and spending on UK-based projects.
Davis described the figure as “an opening bid, that’s all it is, nothing more, the maximum price on departure”.
He said: “I’m not going to start chipping away at that bid. We will start from scratch when we go in that door before the end of March when the negotiation starts.”
Böge said the UK could pay up to €5bn a year for the highest levels of access to the single market, equivalent to the status of Norway.
Norway, a member of the European Economic Area, pays €869m a year to trade in the single market, take part in EU research programmes and for criminal justice cooperation.
“If you want something you are obliged to pay for it. This is part of the deal,” Böge said. “If you take the Norway calculation for the UK it will be €4bn to €5bn.”“If you want something you are obliged to pay for it. This is part of the deal,” Böge said. “If you take the Norway calculation for the UK it will be €4bn to €5bn.”
The UK’s net contribution was £8.5bn a in 2015, so a Norway-style deal would amount to around half the current annual EU bill on current exchange rates. The UK’s net contribution was £8.5bn in 2015, so a Norway-style deal would amount to around half the current annual EU bill on current exchange rates.
But Theresa May has repeatedly stressed she will seek a bespoke deal for Britain, rather than plucking an existing model off the shelf. EU diplomats are also sceptical the UK would opt for maximum access to the single market, which would require accepting EU rules on free movement of people and the writ of the European court of justice. Theresa May has repeatedly stressed she will seek a bespoke deal for Britain, rather than plucking an existing model off the shelf. EU diplomats are also sceptical the UK would opt for maximum access to the single market, which would require accepting EU rules on free movement of people and the writ of the European court of justice.
EU politicians stress it is up to the UK to spell out what this bespoke deal means. Jens Geier, a German Social Democrat MEP, who negotiated the 2016 EU budget, said recently it was impossible to come up with an estimate without knowing the government’s Brexit plan. “It is on the British government to make a proposal.” Only then, he said, would the European commission be able to outline how much the British bespoke model would cost. EU politicians stress it is up to the UK to spell out what this bespoke deal means. Jens Geier, a German Social Democrat MEP, who negotiated the 2016 EU budget, said recently it was impossible to come up with an estimate without knowing the government’s Brexit plan.
During the questions, Davis also dismissed reports that his cabinet colleague Boris Johnson privately backs continuing free movement from the EU, after reports that the foreign secretary expressed support for the system during conversations with European ambassadors. “It is on the British government to make a proposal,” he said. Only then would the European commission be able to outline how much the British bespoke model would cost.
Four EU ambassadors told Sky News that Johnson had expressed personal support for the principle of free movement and they were “shocked” by the government’s apparently “shambolic” approach. During departmental questions in parliament, Davis said he was keen not to rule out any option before the end of March, the government’s self-imposed deadline for triggering article 50. “There is one chance in this negotiation. It’s unlike almost anything else that comes in front of this house. Anything else we can come back and repeal it, change it or amend it,” he said. “This is a single-shot negotiation.”
May has made it clear that securing new immigration controls and ending free movement of EU nationals to the UK will be a priority when the UK’s formal exit negotiations begin next year. The shadow Brexit minister Matthew Pennycook also asked Davis if the government was expecting to pay an estimated “divorce bill” of up to €60bn to the EU after the UK leaves
Davis said the reported comments by Johnson “strikes me as completely at odds from what I know about what my right honourable friend believes in this matter”. Davis described the figure as “an opening bid, that’s all it is, nothing more, the maximum price on departure”. He said: “I’m not going to start chipping away at that bid.We will start from scratch when we go in that door before the end of March when the negotiation starts.”
He said: “He believes very clearly, and made this clear in the leave campaign, that some immigration is useful, we all agree that. That is not the same thing as thinking that free movement as it stands is a good idea. It’s a problem.” Hammond said that Scotland had no chance of securing its own favourable deals or opt-outs on either immigration controls or enhanced access to the single market.
During the debate, the shadow Brexit secretary, Keir Starmer, said Davis’s department was refusing to lay out its negotiating position to parliament so the only information being garnered was through leaks of private conversations. “You only need to think about it for a few moments to realise a separate immigration deal for any part of the UK would be impracticable,” he said. There would be no other opt-outs for Scotland. “This is a UK issue and the will of the people of the UK was to leave and we’re clear that we can’t have a different deal or a different outcome for different parts of the UK.”
“There is a running commentary, it’s being provided by leaked memos, notes caught on camera and the foreign secretary to any one who will listen to him,” Starmer said. The shadow Brexit secretary, Keir Starmer, said Davis’s department’s strategy was being revealed by “leaked memos, notes caught on camera and the foreign secretary to any one who will listen to him.”
“This is serious because it is damaging the prospects of negotiations getting off to a good start. The secretary of state must realise this will go on for two years unless he releases the basic plan.” He said: “This is serious because it is damaging the prospects of negotiations getting off to a good start. The secretary of state must realise this will go on for two years unless he releases the basic plan.”
The Liberal Democrat leader, Tim Farron, said: “The government are in an absolute mess. We are seeing chaos over their Brexit plans as they keep sending mixed signals on where they stand on basic, fundamental questions like access to the single market, payments to the EU budget and freedom of movement.
“How can the government claim they have a mandate for their Brexit deal when they don’t even know what it is themselves? The people must be given a vote on the deal they do when it finally emerges, and the government must start setting out clearly what they are trying to achieve.”