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Emily Thornberry: Norway EU option won't work Brexit: Peers call for UK to remain in European Economic Area
(about 7 hours later)
The shadow foreign secretary has told Labour rebels their idea to keep the UK in the single market "will not work". The House of Lords has backed calls for the UK to remain, in effect, in the EU's single market after Brexit.
Emily Thornberry said she had a "lot of respect" for people in the party calling for the UK to adopt the same relationship to the EU as Norway. An amendment to the EU Withdrawal Bill obliging the UK to stay in the European Economic Area after it leaves the EU in 2019 was backed by 245 votes to 218.
But she said a "British bespoke deal" was needed instead. This was despite neither the government nor the Labour leadership backing it.
Ahead of a Lords vote on the single market issue, the government's Brexit bill has suffered two more defeats at the hands of peers. The issue will now return to the Commons. Ministers warned that staying in the EEA would not give the UK "control of our borders or our laws".
The Lords voted to remove the exact date of Brexit - 29 March 2019 - from the wording of the EU Withdrawal Bill by 311 votes to 233. Labour urged its peers to abstain in Tuesday's vote on EEA membership - an arrangement which would see the UK retain full access to the EU's internal market of 300 million consumers in return for making financial contributions and accepting most EU laws.
And an amendment which means the UK could continue to participate in EU agencies after Brexit was backed by 298 votes to 227. Under what is known as the "Norway model" - Norway is one of three countries outside the EU which is an existing EEA member - free movement laws would also apply, so EU citizens can move to all EEA countries to work and live.
They take the total number of defeats inflicted on the flagship bill to 12. Supporters of the "Norway-style" plan think keeping the maximum-possible access to the single market should be the top priority - but critics say it would mean the UK would still be subject to EU laws after Brexit, but with no say in how they are made.
Later the Lords will consider the Labour amendment on the single market. Before the EEA vote, shadow foreign secretary Emily Thornberry told Labour rebels that their idea to keep the UK in the single market would "not work" and a "British bespoke deal" was needed instead.
The Labour leadership has been attacked by some in the party for not supporting a move in the House of Lords to keep the UK in the European Economic Area. But Labour's Lord Alli, who signed the amendment, said continued EEA membership was vital for protecting service sectors such as retail, tourism, transport, communications, financial services and aerospace.
The European Economic Area (EEA) includes all the EU members and Iceland, Liechtenstein and Norway. These countries get full access to the single market while also making a financial contribution and accepting most EU laws. He accused the party leadership, which supports maintaining a customs union with the EU after Brexit and hopes to replicate the benefits of the single market, of "complete cowardice" by ordering peers to abstain.
Free movement laws also apply, so EU citizens can move to all EEA countries to work and live. "The customs union only will benefit our European neighbours in their imports," he said.
On Tuesday evening the House of Lords continues discussing the government's EU bill and will vote on an amendment aimed at keeping the UK in the EEA. "Without an EEA equivalent it will damage our profitable export business and therefore the jobs and livelihoods of many thousands of people."
This is not the position of either the Conservatives or Labour, but some Labour members of the House of Lords are annoyed at being told by their party not to support the idea. More than 80 Labour peers defied the party whip by voting for the amendment, while among those Conservative rebels backing the amendment were former party chairman Lord Patten and former deputy prime minister Lord Heseltine.
Supporters of the 'Norway-style' plan think keeping the maximum-possible access to the single market should be the top priority - but critics say it would mean the UK was still subject to EU laws after Brexit, but with no say in how they are made. But Brexit minister Lord Callanan said it would not satisfy the British public's desire, as expressed in the Brexit referendum, for more "direct control" over how the country is run.
Labour's Lord Alli, who has signed the amendment, accused the party leadership of "complete cowardice" by ordering peers to abstain, and several pro-EU Labour MPs have also called for a change of position. "On borders it would mean that we would have to continue to accept all four freedoms of the single market, including freedom of movement," he said.
But Ms Thornberry told BBC Radio 4's Today programme the party leadership had looked at the "Norway model", but that it would not "fit the British economy". "On laws it would mean the UK having to implement new EU legislation over which in future we will have little influence and, of course, we will have no vote."
While "in a way we want to... end up in the same place", she added: "This particular mechanism will not work." The government's Brexit bill also suffered a series of other defeats at the hands of peers.
The Labour row comes as the EU (Withdrawal) Bill - key legislation used by the government to enable Brexit - faces more possible defeats in the House of Lords. The Lords voted to remove the exact date of Brexit - 29 March 2019 - from the wording of the EU Withdrawal Bill by 311 votes to 233. And an amendment which means the UK could continue to participate in EU agencies after Brexit was backed by 298 votes to 227.
Peers have already inflicted 10 defeats on the draft legislation, and a vote later on removing the government's planned exit day of March 29 2019 from the wording of the bill could spell more trouble for ministers. Tuesday marks the final day of the bill's report stage in the Lords, which involves detailed scrutiny and votes on amendments.
It marks the final day of the bill's report stage in the Lords, which involves detailed scrutiny and votes on amendments. The government is expected to seek to reverse a number of the Lords amendments when the bill returns to the Commons. The government is expected to seek to reverse a number of the Lords amendments when the bill returns to the Commons.