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Theresa May Addresses Parliament After Boris Johnson Resigns. Aired 11-12p ET

Aired July 9, 2017 - 11:00   ET



UNIDENTIFIED MALE MP: Congratulating the departing cabinet secretary for leaving the EU for the whole four hours that you spent negotiating in

Brussels during his time and wish all the luck in his world to his replacement. He's going to need it.

And then there the departing Foreign Secretary. Mr. Speaker, he should not have been allowed to resign. He should have been sacked for being a

national embarrassment. Mr. Speaker the Prime Minister's proposals at best represent a starting point. A cherry picking starting point. It is hard

to believe that it's taken the Prime Minister two years to put together a proposal, two years to put together a proposal, and two days for her

cabinet to fall apart.

That is, I believe a majority in the House of Commons for staying in the single market and the customs union. Will the Prime Minister work with the

rest of us to make sure that we can deliver on staying in the customs union and the single market to deliver what is in the best interests of all our

people? Will she stop kowtowing to her hard Brexiteers who are prepared to accept economic self-harm and the loss of jobs? Will she recognize that

she now has to take on her extreme Brexiteers and work in the national interest of all the nations of the United Kingdom?

The Prime Minister's proposal of a facilitated customs arrangement has been called by one senior EU official as the fudge of the century. The response

of EU negotiators has been to see if the proposals are workable and realistic. Mr. Speaker, I wouldn't hold my breath. The Prime Minister has

again today in her telegraphed piece noted that the U.K. government prepares to prepare for a no deal. Mr. Speaker, that is simply outrageous.

To put the economy and jobs in such peril is a complete failure of leadership.

SPEAKER: Dennis Brown.

THERESA MAY, BRITISH PRIME MINISTER: The honorable gentleman commented on the preparations for no deal. It is entirely right and proper for this

government to make preparations for every eventuality because we are going into a negotiation. And it is right that we step up our preparations for

no deal to ensure that we are able to deal with whatever comes out at the end of these negotiations.

But the key question, which the right honorable gentleman asked, and he asked it twice, was would I work with people across this House to stay in

the single market and in the customs union. The answer is an absolute, unequivocal no. We are leaving the single market and we are leaving the

customs union.

SPEAKER: Sir William Cash.

SIR WILLIAM CASH, BRITISH CONSERVATIVE PARTY MP: How does my right honorable friend reconcile the Chequers statement with the recent repeal of

the 1972 act under the withdrawal act and also with the -- including the European court of justice and with democratic self-government in this


MAY: Can I say to my honorable friend that we have, indeed, as he said in the EU Withdrawal Act with repealed the European Communities Act. But we

have also ensured that we will take into U.K. law at the point of which we leave the European Union, EU law, such that we see a smooth and orderly


In the future, the European Court of Justice will not have jurisdiction over the United Kingdom. And this parliament will make sovereign

decisions. This parliament will, first of all, make a sovereign decision when the withdrawal of the meaningful vote and with withdrawal and

implementation bills are brought before this house as to whether this parliament is willing to accept the deal that has been negotiated. And

thereafter it will be up to this parliament to decide whether it agrees with any changes in rules or any laws that this parliament wants to pass.

That is the sovereignty taking back laws, taking back control of our laws. That is what I believe people want, and that is what we will do.

SPEAKER: Vincent Cable.

VINCENT CABLE, LIBERAL DEMOCRAT MP: First of all, congratulate the Prime Minister for effectively killing off the United States/U.K. trade agreement

by agreeing to retain EU regulatory convergence which, of course, the Americans cannot accept. Could I also echo the call she's just heard, to

say that now she's lost the support of her Brexit fundamentalists. Now is the time to have a national consensus, the majority in the house who do

support our retaining membership of the customs union, the single market, the original common market, whatever name and label she wants to attach to


[11:05:00] MAY: Can I say to the right honorable gentleman, he refers as the leader of the SMP did to staying in the single market and staying in

the customs union. We will not be staying in the single market. We will not be staying in the customs union. To do those would involve us keeping

free movement, and that would not be keeping faith with the vote of the British people. There will be an end to free movement from the European

Union into this country as a result of us leaving the European Union.

SPEAKER: Anna Soubry.

ANNA SOUBRY, CONSERVATIVE PARTY MP: Thank you very much, Mr. Speaker. Mr. Speaker, can I commend the Prime Minister for this plan and in particular

can I congratulate her on her leadership in the last few days. Mr. Speake the Prime Minister said that she would listen to business, and she clearly

has listened to business. However, there are concerns that there are no details about the government's plan for services. What more detail can we

expect to hear in the forthcoming white paper?

MAY: Can I say to my right honorable friend there will be more detail in the forthcoming white paper. But the point about services is that for a

variety of reasons, not least because this is an important sector for the United Kingdom, we believe it is important to maintain more flexibility in

how we're dealing with services.

On the goods side, industrial goods side, businesses are clear that they would continue to meet those EU rules regardless of the position the

government took because they want to continue to export into the European Union. On services, we want to be free to ensure that we are able to put

in place what we believe is necessary to maintain our key position in services, not least on the financial services where the global financial

center of the city of London needs to be maintained into the future and we will continue to do that.

SPEAKER: Mr. Hilary Benn.

HILARY BENN, LABOUR PARTY MP: Thank you very much indeed. Mr. Speaker, the Prime Minister welcomed the new Secretary of State to his post. Can I

join her in doing so and say we look forward to seeing him appearing before the select committee very soon indeed? The government has indicated that

the facilitated customs arrangement, even assuming that the EU were to agree to it -- a question about which there must be a great deal of doubt -

- would only be fully operational by the time of the next general election in 2022. Will the Prime Minister, therefore, now confirm to the house that

in the light of that, the current transitional arrangement which expires in December 2020 is inevitably going to have to be extended?

MAY: No.

BENN: The Prime Minister is right to reaffirm we are taking back control of our laws, our money and our borders and I fully support that. But will

she clear away the ambiguity or contradictions in the Chequers statement which implies we would give the ECJ powers, we might pay money to trade and

we might accept their laws and we might have their migration policy.

MAY: Can I say to my right honorable friend I'm sure that he has read the Chequers statement carefully. But actually, the Chequers statement did not

say that. We will be friending free moment. As in any trade agreement which we would strike with any country around the world or with any group

of countries around the world. There will be mode for provisions on mobility of investors and businesses. But we will be able to set our own

immigration laws, our own immigration rules, for people coming here from the European Union. And we will be able to continue to set our own laws in

the future. As regards to the European Court of Justice, it is not the case that the European Court of Justice will have jurisdiction in the

United Kingdom. It will not. Businesses and individuals here in the United Kingdom will not be able to take cases to the European Court of

Justice. Matters here in the U.K. will be determined by the U.K. courts.

SPEAKER: Yvette Cooper.

YVETTE COOPER, LABOUR PARTY MP: The Prime Minister's plan is still a fudge on immigration, on the court of justice and on the customs facilitated

partnership maximum arrangement which nobody understands what it is. She's kept trying to pander to different parts of the Conservative Party and

today has shown it just isn't working.

[11:10:00] So, will she instead put a plan for negotiations to the whole House of Commons for approval because when she is in such a mess she cannot

just keep standing there saying nothing has changed, nothing has changed. It has.

MAY: What I say to the right honorable lady, actually, I didn't say nothing has changed. I said that our position had evolved. We have set up

more details in our position, and I believe that this is the position that is absolutely right for the United Kingdom. This is the best Brexit deal

for Britain that It gives us delivery on Brexit, protects jobs, make sure that we maintain our commitment to North Ireland in relation to the border

and that we can have a smooth and orderly Brexit.

SPEAKER: Mr. Patrick McLoughlin.

PATRICK MCLOUGHLIN, CONSERVATIVE PARTY MP: The Prime Minister is not dealing with the theory of leading the European Union, she's dealing with

the practice of leaving the European Union. Can she assure me that the Chequers agreement allows the situation to continue, that the seeing the

United Kingdom get more in with investment over the last 30 years than any -- over both parties than we could have possibly anticipated and that is

good news for the future of the engineering industry in our country as well as all those other jobs that are so reliant on that -- those industries.

MAY: My right honorable friend is absolutely right. We have seen good figures for foreign direct investment into the U.K., supporting jobs in the

United Kingdom. That will continue in the future. I believe that the plan which I have set out with his clear momentum for frictionless trade with

the European Union while giving us the freedom to strike trade deals around the world will be one that is welcomed by businesses and investors and we

will see more investment and more jobs in the U.K.

SPEAKER: Mr. Nigel Dodds.

NIGEL DODDS, DEMOCRATIC UNIONIST PARTY MP: Thank you, Mr. Speaker. Among the matters agreed in the Chequers communique, there was reference, of

course, to the continuing obligation of the government to the backstop arrangement, so-called. Can the Prime Minister make it very, very clear,

I've heard her very clear statement about the million deal as far as the union is concerned, I welcome it. But can't you make it very clear that as

far as the backstop is concerned, she stands by her rejection of the EU's legal interpretation and that there will be no constitutional, political or

regulatory differences between North Ireland and the rest of the United Kingdom in the backstop?

MAY: And I say to the right honorable gentlemen, as he is inviting me to do, I'm happy to say that I continue to reject the protocol proposal of the

so-called backstop that was put forward by the European Union -- by the European Commission earlier in this year. The fact that would have

effectively carved North Ireland out away from the rest of the United Kingdom and catch Northern Ireland in the customs union and most of the

single market would have meant that bordered on the Irish Sea. That is completely unacceptable to the government of the United Kingdom.

SPEAKER: Nicky Morgan.

NICKY MORGAN, CONSERVATIVE PARTY MP: Delivering a referendum result was always going to involve a series of compromises and tradeoffs. So, I want

to support the position that the Prime Minister achieved with the cabinet on Friday at Chequers which absolutely puts business and jobs at the heart

of any Brexit deal. That is in the national interest. And I think that the Prime Minister has the vast majority of the country is behind her and

delivering a Brexit in the national interests. Is she able to say when we expect perhaps to hear the initial reaction from the European Union after

publication of the white paper on Thursday?

MAY: What can I say to my right honorable friend that I've had conversations with a number of European leaders over recent days and the

indication is they do feel this is a proposal that can ensure that we move negotiations on and move those negotiations on at pace. I will be seeing a

number of European leaders over the next couple of days. We're hosting Western Balkan summit tomorrow, for example, and then obviously, there is

the NATO summit. I believe this is a plan which is good for the United Kingdom and I believe it's a plan which the European Union will lead to a

deep and special partnership that will be in both our interests.

SPEAKER: Ben Bradshaw

BEN BRADSHAW, LABOR PARTY MP: I believe the Prime Minister to be a rational human being so why doesn't she save herself, us, and the country a

great deal of misery and grief and put the option inexplicably ruled out at Chequers, the EEA plus option to this house in a free vote?

MAY: I say to the right honorable gentlemen, as I indicated in a statement that I made, the reason that I do not think the EEA plus option is right

for the United Kingdom is because it does not deliver on the vote of the British people. That is our duty. It is our job as a government to

deliver the Brexit that the British people voted for.

SPEAKER: Mr. Owen Paterson

OWEN PATERSON, CONSERVATIVE PARTY MP: Mr. Speaker, the announcement that the government is preparing for a no deal, which is an inaccurate term for

moving to world trade terms on which we trade with the vast majority of the countries of the world is very welcome and sensible.

[11:15:03] Given the intransigence and childishness with which the EU has welcomed her very generous offer so far, what is the date by which she

judges its drop-dead moment to state that the talks are not progressing and that we will definitely be going to world trade terms?

MAY: I'm sure my right honorable friend has been in sufficient number of negotiations to know that actually it is not sensible to try to put a date

on it in the way that he has these matters in the way he has said. We have received a positive reaction so far to the proposals we've put forward. We

are going through intense and pacey negotiations with the European Union. What I'm clear about is that when this house comes to look at the

withdrawal agreement and implementation bill it needs to have sufficient detail about the future relationship to be able to make that proper


SPEAKER: Angela Eagle

ANGELA EAGLE, LABOR PARTY MP: Mr. Speaker, the oddly named Chequers agreement fell apart after a weekend. And is now the Chequers disagreement

that her cabinet disintegrates before our eyes. So, can she tell this house how on earth she's going to persuade the European Union to agree to

her disagreement when her own cabinet don't agree with it?

MAY: I say to the honorable lady that we have put forward the position of the U.K. government that has been received by the European Union as

something on which there can be negotiations in the future and we will go into those negotiations determined to deliver the best deal for Britain.

SPEAKER: Mr. Damien Green.

DAMIEN GREEN, CONSERVATIVE PARTY MP: What matters even more than the agreement reached at Chequers is the eventual agreement that this country

will reach with the European Union. And what matters about that is that it promotes jobs and prosperity by helping British business. Can the Prime

Minister assure the house that in the details of what we'll see in the white paper on Thursday will be a clear commitment to as free trade as

possible across the borders of Britain with the European Union to preserve the jobs and prosperity for the future of this country?

MAY: Well, I can assure my right honorable friend that maintaining that free trade across the borders between the United Kingdom and European Union

is important. That's why we have always said we want as frictionless trade as possible with the EU. The plan I put forward that the government will

set out in the white paper later this week will show how we can do exactly that, maintain those jobs. But also have the freedom to increase our

prosperity with trade deals around the rest of the world.

SPEAKER: Emma Reynolds.

EMMA REYNOLDS, LABOR PARTY MP: Have any European leaders agreed to let the U.K. collect tariffs on their behalf?

MAY: No. We are putting forward a facilitated customs arrangement for the future, we're putting that forward as part of the negotiations for the plan

for the future relationship.

SPEAKER: Sir Bernard Jenkin.

SIR BERNARD JENKIN, CONSERVATIVE PARTY MP: Mr. Speaker, can I say to my right honorable friend how much we're looking forward to the publication of

the white paper on Thursday? Can she also undertake to publish the white paper that was set aside? The white paper months in drafting DExEU by

under the leadership of my right honorable friend, a member of the house and Price and Haughton

MAY: Can I say to my honorable friend that the white paper we published on Thursday will be based on the work that has been done by DExEU over recent

weeks and will, of course, reflect the decision that was taken by the cabinet on Friday.

SPEAKER: Joanna Cherry.

JOANNA CHERRY, SCOTTISH NATIONAL PARTY MP: To you Mr. Speaker, the Prime Minister says that under her plan we won't be subject to the jurisdiction

of the Courts of Justice, but the Chequers statement says that our courts will pay due regard to its case law and make joint references for rulings

which will presumably be funding. The big difference is after the 29th of March there will be no Scottish judge and no English judge on the Court of

Justice. Won't this be the very definition of being subjected to the jurisdiction of a foreign court which are Brexiteers so opposed?

MAY: No. Can I say to the honorable lady, and I understand that the Chancellor of the Duchy of Lancaster actually has commented on this when a

question she asked in another meeting? Can I say to her that we will not be under the jurisdiction of the European Court of Justice, that is one of

the things that people voted for and we will deliver?

SPEAKER: Mr. Jacob Rees-Mogg

JACOB REES-MOGG, CONSERVATIVE PARTY MP: Thank you, Mr. Speaker. The Prime Minister said that we would not be hindered from doing trade deals. But at

a briefing given by 10 Downing Street it was explained that in signing the Transpacific Partnership there would have to be a carveout because our

obligation to follow the common rule book. Will my right honorable friend explain what obstacles there will be to trade and how this will work?

[11:20:00] MAY: What I say to my honorable friend. There are issues which we would look at in any circumstances as the United Kingdom in relation to

standards and the way in which we wish to operate. Which could lead to us not being able to undertake all the commitments that somebody might want in

a free trade deal. We could tear up all our regulatory standards. But I don't actually think that's what we want to do. I don't think that's what

this house would want to us do. I don't think it's what the public would want to us do. So, as we go forward we will be making those trade deals.

We specifically looked at whether that we were putting forward would enable us to accede to the CPTPP and it would.

SPEAKER: Mr. Frank Field.

FRANK FIELD, LABOR PARTY MP: I thank the Prime Minister for her statement. Might I join with my right honorable friend in welcoming the Brexit

secretary to his place. And might I ask that they find time to visit the elected political leaders of Europe to seek support for this plan rather

than just depend on the bureaucrats in Brussels?

MAY: The right honorable gentleman is absolutely right. I, myself, am speaking to elected leaders across Europe. My honorable friend, the

Brexit, the incoming Brexit secretary, will be also out and around Europe talking not just to leaders but actually to politicians across Europe and,

of course, in the European parliament about the plan we propose.

Oh, yes, Lincoln shall unite, I think.

SPEAKER: Sir Edward Leigh.

SIR EDWARD LEIGH, CONSERVATIVE PARTY MP: The EU says they won't tolerate cherry picking. But what I fear is that we picked the wrong cherry for

this reason that we by accepting a common rule book in goods are locking ourselves into a sclerotic structure where the EU has an overwhelming

trading surplus. Will this not severely constrain our ability to make our business more competitive and to undertake free trade deals, so the Brexit

will no longer mean Brexit, it will mean the commission where we will have no vote regulating our business forever.

MAY: Can I say to my honorable friend, that the position that he set out is not the position for the future. I've been very clear that parliament

will be able to take these decisions about rules in the future, but that the reality is -- somebody said earlier that I'm not dealing not with a

theory but the reality and the practicality of Brexit. The practicality of Brexit is that our business who want to export to the European Union will

continue to operate to the European Union's rule book and industrial goods. Just as when we find trade deals with other parts of the world they will --

we will need to ensure that both sides are able to operate to the rules that are appropriate there. So, business will continue to apply these

rules regardless by operating in this way. What we are able to do is to ensure that frictionless border between the EU and U.K.

A frictionless border which is important to deliver on our commitments for Northern Ireland while maintaining the Constitution integrity of the United

Kingdom and important in ensuring that we maintain the jobs that rely on the integrated supply chains that have grown up over decades.


UNIDENTIFIED MALE MP: Mr. Speaker, the Prime Minister has proposed a free trade area for goods. But the fact is our services sectors have been left

out and left behind by this government. The tech U.K. which represents 700 firms that employ over 700,000 workers in the technology sector has said

that a deal such as that that she has proposed will reduce access to EU markets, will be confusing for consumers and add to complexity for

business. Why is she ignoring these services businesses which may account for most of the British economy?

MAY: This is not about ignoring services businesses. It's about seeing that services is one of the areas where we have great opportunities in our

trade deals around the rest of the world. It is also about recognizing the importance of the significance in financial services of the city of London

and the importance of ensuring that we're able to have regulatory cooperation but the freedom to be flexible in these areas.

SPEAKER: Mr. Peter Bone.

PETER BONE, CONSERVATIVE PARTY MP: I do thank you, Mr. Speaker. On Saturday mornings I lead the listening team in Wellingborough. We have an

hour's meeting where we talk about national and local politics. And then we go out and campaign for two hours. This week the activists were so

disappointed about what had happened at Chequers. They were betrayed. They said they were betrayed and they asked why we go out each and every

Saturday to support the Conservative Party and gets MPs elected. And sir, for the first time in over ten years that group refused to go out and

campaign. What would the Prime Minister say to them?

[11:25:00] MAY: Can I say to my honorable friend, first of all, I'm sorry that the activist did not feel able to go out and campaign. I would hope

that they would campaign for their excellent member of Parliament and be winning support on the doorsteps. This is not a betrayal. We will end

free movement. We will end the jurisdiction of the European Court of Justice. We will stop sending vast sums of money to the European Union

every year. We will come out of the common agricultural policy. We will come out of the common fisheries policy. I believe that is what people

voted for when they voted to leave, and we will deliver in faith with the British people.

SPEAKER: Alison McGovern

ALISON MCGOVERN, LABOR PARTY MP: Mr. Speaker, my constituents who work at Boxell Motors, Jaguar, Land Rover, Unilever and many other parts of our

modern manufacturing supply chain, have had their voice heard but they need to be heard more. Because it's not just what was in the Chequers statement

that they need. So, will the Prime Minister say when will she go further and accept that we need to include more in this deal and we need to be part

of the internal market of the European Union?

MAY: Can I say to the honorable lady, we're very clear that we won't be members of the single market. We will be members of the single market

because of the full set of requirements that that brings including the free movement. She refers to Boxell, of course, Boxell have announced that it

will invest in a new manufacturing platform and boost production of his commercial vehicle plant in Newton that will safeguard 1,400 jobs.

There've been other positive announcements from the automotive sector. But we have recognized the integrated supply chains and we recognize the need

for that frictionless trade across the border. And that's what this plan delivers.

SPEAKER: Sir Nicholas Soames.

SIR NICHOLAS SOAMES, CONSERVATIVE PARTY MP: May I give the Prime Minister a message from Mid Sussex. To this end that despite the slings and arrows

inevitably will she stick to our guns to deliver a Brexit that's in line with the interests of our people of their prosperity and their security?

MAY: Can I say to my right honorable friend that is exactly the aim of myself and government to deliver a Brexit that is smooth and orderly that

maintains the prosperity of this country and indeed enables it to be enhanced in the future. But also maintains the important security

cooperation for the safety and security of citizens.

SPEAKER: Mr. David Lammy.

DAVID LAMMY, LABOUR PARTY MP: When the Prime Minister took office, she said she wanted to bring the country back together and I believed that she

had the will of most people in this house and the country. 69 percent of British people now think Brexit is going badly. Her cabinet is horribly

split. The government is split. The nation is more divided than ever. Our people will be poorer as a consequence of this deal that leaves out

services. Will she now commit to give the people a second vote on this deal?

MAY: No, I will not commit to do that. And the reason I will not commit to do that is because the British people voted. This house, this

parliament gave the British people the vote. They made their choice and they want their government to deliver on that choice. And I think given

that 80 percent of people at the last election voted for parties which were committed to delivering Brexit, that it's time the Labour Party ruled out a

second referendum.

SPEAKER: Andrea Jenkyns.

ANDREA JENKYNS, CONSERVATIVE PARTY MP: Mr. Speaker, my constituency voted 60 percent to leave the EU within 48 hours of the Prime Minister's

statement on Friday I received over 300 e-mails disheartened, dismayed and telling me that democracy is dead. Can the Prime Minister tell the house

how does she plan to restore public faith to my constituents that this is not a sellout?

MAY: Can I say to my honorable friend that I think people across the country from wherever they voted to leave, and I understand she has

received comments not just from her constituents on this matter, people from across the country, wherever they voted to leave, wanted to see an end

to free movement. We will deliver that. They wanted us to stop sending vast amounts of money to the EU every year. We will deliver that. They

wanted us to end the jurisdiction of the European Court of Justice in the U.K. We will deliver that. They wanted to come out of the common

agriculture policy. We will deliver that. They wanted to come out of the common fisheries policy. We will deliver that. We will deliver Brexit

that people voted for, but we will do so in a way that ensures we protect jobs, maintain our commitments to the United Kingdom, the union of the

United Kingdom, and ensure we can go out and do trade deals around the rest of the world which will bring jobs to her constituency and others.

[11:30:00] SPEAKER: Stephen Doughty

STEPHEN DOUGHTY, LABOUR PARTY MP: Mr. Speaker, the new Brexit secretary has proudly advocated no deal claiming we would thrive. He suggested we

might have to abandon the common travel area with Ireland. He suggested scrapping the working time directive and in 2013 he voted against crucial

police and justice cooperation across Europe that's going to be key to any security treaty. Are those now government policy? And if not, why did she

appoint him?

MAY: The government policy is very clear. I said it this afternoon, the further details will be seen in the white paper and the Brexit secretary

looks forward to delivering on that government policy.

SPEAKER: Sir Desmond Swayne.

SIR DESMOND SWAYNE, CONSERVATIVE PARTY MP: Will she assure me that we will not charge the EU for access to our markets any more than we'd expect to be


MAY: Well, can I say to my right honorable friend that I think one of the key features of the facilitated customs arrangement which people may not

have seen is that we would of course, recognize that the European Union would be effectively taking tariffs for U.K. goods that would enter other

European Union countries to come to the United Kingdom. And we would make sure that was reflected in the arrangements that are made in relation to

the facilitated customs arrangement.

SPEAKER: Ms. Saville Roberts.

SAVILLE ROBERTS, PLAID CYMRU MP: (INAUDIBLE) select committee today published a report recommending continued membership of a single market and

the customs union on the basis of evidence received about agriculture. If whoever is in government doesn't come to the same conclusion, we will all

wake up on March 30th without a functioning government and without a functioning deal. For all our sakes, when will the Prime Minister push for

an extension to Article 50? This is a negotiation with people's livelihoods not a game against the clock.

MAY: This is a negotiation which is of vital importance to the United Kingdom, to our future as global Britain and which will with the plan we

put forward be about protecting jobs and livelihoods for people across the whole of the United Kingdom. But we are not extending Article 50. We have

a negotiation. We have a plan for that negotiation, and we will go to it at pace.

SPEAKER: Sir Oliver Heald.

SIR OLIVER HEALD, CONSERVATIVE PARTY MP: Will my right honorable friend agree with me, but one of the reasons that companies have come to this

country and also that British companies have become involved in integrated European manufacturer is because we've had a settled rule book for more

than 30 years about trade in goods. And does she agree with me? And I would like to think the cabinet for agreeing to this. That the proposal is

right to protect that business and to ensure that we keep those jobs.

MAY: I say to my honorable friend that he's absolutely right. That the rule book in relation to industrial goods has been broadly settled over a

number of decades. And is not expected to change significantly in the future. It is one to which businesses continue to work to that and would

do so after we have left the European Union. So, I think the position we have taken which protects jobs is absolutely right.

SPEAKER: Mr. Barry Sheerman.

BARRY SHEERMAN, LABOUR PARTY MP: Can beg the Prime Minister to think again. It is obvious even for today's proceedings, now her hard work at

Chequers, she actually still imprisoned by a group of hard Brexit ideologues. Would she change her mind, speak to those who have a real

desire for the national interest in withdrawing from the European Union and take a rather different view but to having a vote in parliament on the

Chequers agreement.

MAY: I say to the right honorable gentlemen that he talks about operating in the national interest. That's exactly what the government is doing.

That's exactly why we're putting this proposal forward. We will negotiate with the European Union on the basis of this proposal and of course, in due

course parliament will have its opportunity to vote through the meaningful vote and on the withdrawal agreement and implementation bill.

SPEAKER: Mrs. Anne Main.

ANNE MAIN, CONSERVATIVE PARTY MP: Thank you very much, Mr. Speaker. My right honorable friend refers to negotiations, and of course, negotiations

is about give and take and some may think we've given rather too much. But I'm actually not sure that the European Union will take it. I think they

want to us give a little more and a little more. Can I ask if she will recall parliament over the summer if in those deep and pacey negotiations

we are asked to give even more.

MAY: Can I say to my honorable friend although I recognize the good intentions with which she asked that question I suspect it didn't quite

receive the full approval of the entire house.

SPEAKER: Liam Byrne.

LIAM BYRNE, LABOUR PARTY MP: Mr. Speaker, the Prime Minister should have sector foreign secretary some time ago. Someone who put himself before his

party, she now risks putting her party before her country. How can she possibly persuade us that she can negotiate with strength with Brussels

when it is clear she leads a divided house and she is struggling to take back control of her cabinet never mind anything else.

[11:35:00] MAY: The cabinet has agreed to the position that the government is taking forward. He asks about the ability to achieve in negotiations.

I simply point out that's exactly what we have been doing at every stage in these negotiations.

SPEAKER: It needs to see the old gentleman member of Elmet and Rothwell by note with approval the bright shirt he's wearing is more reminiscent of

arsenal than of west ham. Mr. Alec Shelbrooke.

ALEC SHELBROOKE, CONSERVATIVE PARTY MP: Thank you for that endorsement, Mr. Speaker. My constituency of Elmet and Rothwell contributes roughly

about half a billion pounds to the GDP of this nation through mainly small and medium enterprise manufacturing. (INAUDIBLE) and friend note and

comment that indeed the most important thing we must achieve is that those small/medium enterprises are the life blood of this country are able to

supply the big companies no matter where they're able and actually this deal actually allows them to expand in all other parts of the world as


MAY: What can I say to my honorable friend that that's what this deal does. And also, by ensuring that we will have that frictionless trade

across the border with the European Union and in the facilitated customs arrangement we put forward. We're ensuring that those business that

currently only trade with the European Union will have no extra requirements in terms of customs. So, we're ensuring that we are not

increasing the burden on those businesses.

SPEAKER: Mr. Byrne.

BRYNE: In her initial letter to Donald Tusk notifying the European Commission that she wanted to trigger Article 50, she said that if there

was no deal there would be no deal on security. I don't think she was making a threat. She was simply stating the truth, the facts. But since

then the European Union has made it clear they're not sure they want precisely the same version of a security cooperation that we've talked

about and they're now saying we won't be able to be members of the European arrest warrant. Isn't this issue of national security as important as it

was the day that she wrote that letter and isn't it most important that we do get a deal therefore?

MAY: Of course, the issue of national security is important, and we want to maintain operational capabilities. We will be -- as he will see when

the white paper comes out, in the security partnership that I outlined in my Munich speech inputting further details on, we want to ensure that those

operational capabilities through instruments and programs and agencies are still available to the United Kingdom and that will be part of the

negotiations that we take forward and the security partnership is an important development of our future relationship.


UNIDENTIFIED MALE MP: Could my right honorable friend say what distinction she would draw between a combined customs territory which the cabinet

appears to consider desirable and a customs union which it doesn't?

MAY: I'm very happy to answer that question for my right honorable friend. In a customs union it will be necessary to be part of the common commercial

policy. Which would not enable us to sign trade deals with other countries around the world. In the arrangement that we put forward we will be free

to sign trade deals around the rest of the world.

SPEAKER: Seema Malhotra

SEEMA MALHOTRA, LABOUR PARTY MP: Governments proposals seem to effectively seek to produce -- reproduce parts of the backstop proposal for the whole

of the U.K. but with a Swiss style dispute settlement system. But could she answer this question which is what will the proposals mean for mutual

recognition of health professionals, qualifications and in order for health professionals to be able to operate across border?

MAY: That is one of the areas where of course, we will be entering negotiations with the European Union. We want to ensure, we want to ensure

that we are able to see recognition in a number of areas in relation to professionals and professional services. But of course, that is something

that we have to agree with the European Union.

SPEAKER: Mr. Stephen Hammond.

STEPHEN HAMMOND, CONSERVATIVE PARTY MP: Thank you, Mr. Speaker. The promise to my constituents in Wimbledon and they know her. They know her

to be a lady of integrity and putting the national interests first. And she's done that in this deal and I commend her for it. Many of them have

businesses in my constituency are concerned about nontariff barriers. Can she confirm that this agreement overcomes their concerns and that they'll

be free to trade over those nontariff barriers?

MAY: The point of the deal that we have put out in the proposal that we will be presenting to the European Union is that we can have the ability

for free trade between the United Kingdom and the remaining EU 27. That's partly about the frictionless borders, but it is also, of course, about the

standards and regulations that those businesses will continue to operate to.

[11:40:00] SPEAKER: Wera Hobhouse.

WERA HOBHOUSE, LIBERAL DEMOCRAT MP: Thank you, Mr. Speaker. There's obviously disagreement in her own party, as is in the Labour Party, as to

what the people voted for in 2016. Is it time to clarify with the people themselves rather than always guessing? And I do not, with respect, Mr.

Speaker, accept what is being said that the people have spoken. This will be a further question to the people once they have the final deal and they

should have the final say on the deal.

MAY: Can I say to the honorable lady she talks about disagreement. The biggest disagreement of course, is between the Liberal Democrats and the

people of this country who voted to leave the European Union.

SPEAKER: Mr. Kenneth Clarke.

KENNETH CLARKE, CONSERVATIVE PARTY MP: Mr. Speaker, may I warmly congratulate my Prime Minister and the progress that she made at the

weekend at Chequers, and wish her well in the difficult two days that will no doubt lie ahead before we see the further details in the white paper, I

trust. And is she now confident that the leaders of the other 27 European governments involved will accept this as a reasonable starting position for

negotiations based on the realities of business and trade in the modern world and ask them to speed up as far as possible the serious negotiations

must now begin. With no doubt some modest compromises on both sides before we reach a successful conclusion.

MAY: Well, can I reassure my quite honorable learned friend that the responses that I've received so far from other European Union leaders, are

that they have responded positively to the proposals that we have put forward and indeed at the June European council. The European Council at

27 agree that we needed to increase the pace of the negotiations in the future.

SPEAKER: Pat McFadden.

PAT MCFADDEN, LABOUR PARTY MP: Mr. Speaker, on the 18th of December, the Prime Minister told the house, and I quote, we will be going in and

negotiating for services and for goods. We trade an annual surplus of 28 billion pounds in services with the European Union. Why is it other than

the reasons of internal politics and ideology within the Conservative Party that she has taken the profit-making trade part of the U.K. economy and

thrown it under the Brexit bus?

MAY: Can I say to the right honorable gentlemen that is not correct. What we are doing is ensuring that we have the flexibility in relation to

services. As we look around the rest of the world it will be service that is will be a significant element of our trade agreements with the rest of

the world. It will be in services that we will be able to benefit. We want that flexibility and that is precisely what we are negotiating for.

SPEAKER: Vicky Ford.

VICKY FORD, CONSERVATIVE PARTY MP: Thank you, Mr. Speaker. The Prime Minister has always been very clear that she seeks a bespoke relationship

between the EU and the U.K. There were only nine meetings left of the European Parliament in Strasberg before we will have left. Can I urge the

Prime Minister and members of the cabinet to keep focused on the timetable and deliver that deal?

MAY: Can I think my honorable friend for pointing that out. We will indeed be focused on the timetable both in negotiations with the European

Union, but also, recognizing the role the European Parliament will play because they will need to agree on the withdrawal agreement when it has

been finalized.

SPEAKER: Mike Gapes.

MIKE GAPES, LABOUR PARTY MP: Mr. Speaker, the Prime Minister has been struggling quite cleverly within the constraints of her self-imposed chains

and red lines. Wouldn't it be a bit easier for her if she acted as was the case in the 1941 crisis, the way that Clement Utley acted, and we worked in

the national interest together to deal with this crisis. Because caring on as we are will not succeed and she knows it.

MAY: Can I say to the honorable gentleman that the government has put forward a proposal in the national interest but there are differences

across this house. It's been obvious to a number of members of the opposition benches who want us to stay in a customs union, want us to stay

in a single market, which in my view would not be keeping faith with the voters of the British people.

SPEAKER: John Baron

JOHN BARON, CONSERVATIVE PARTY MP: Generally accepted that the EU has a poor track record on trade deals because in large part because of its

protectionist rules and regulations. Does the Prime Minister accept that in pursuing a common rule book and promising harmonization, we will be

obliging imports from third countries to abide by those same regulations and therefore make trade deals more difficult to achieve?

[11:45:00] MAY: Can I say to my honorable friend, as I said earlier, of course, we could tear up regulatory standards that we have here in the

United Kingdom, but I don't believe that would be the right thing to do. And I don't believe that that would be something the this house would

support. Of course, when we look at trade deals around the rest of the world, as in any trade deal there will be decisions to be taken about the

basis on which that trade can go forward. And the sort of standards that both sides will apply in those trade deals. But I believe it's right that

the United Kingdom maintains a high regulatory standards in a number of areas.

SPEAKER: Mrs. Helen Goodman

HELEN GOODMAN, LABOUR PARTY MP: Thank you, Mr. Speaker. The customs and trade bills were both drafted several months ago. In the Chequers

agreement the Prime Minister has set out a rather complicated new customs arrangement. Will this need any changes to the legislation that the house

is going to be considering next week?

MAY: No, I don't believe it will.

SPEAKER: Mr. Crispin Blunt

CRISPIN BLUNT, CONSERVATIVE PARTY MP: Just over 16 months since then foreign affairs committee unanimously, leavers and remainers together

concluded that in July of 2016 we concluded that the previous government's decision not to instruct key departments to prepare for a leave vote in the

EU referendum amounted to gross negligence. Making an equivalent mistake would constitute a serious dereliction of duty by the present

administration. Does my right honorable friend understand the relief now that the no deal preparations --

BECKY ANDERSON, CNN HOST: We've been listening to what has been a fiery debate in the British Parliament. Prime Minister, Theresa May's situation

it seems more precarious than ever. Her government rocked by two major resignations in 24 hours.

First Brexit secretary David Davis and that word Brexit is key here. Then Foreign Secretary, Boris Johnson, long seen as someone who has his eye on

the Prime Minister's spot. At issue, Mrs. May's plan for leaving the European Union. And as you've been hearing she is standing by that plan

and is fiercely defending it.

Could these two high profile departures, which I might add, come at a critical time for these Brexit negotiations threaten Theresa May's very

survival as Prime Minister. And whether or not she survives this, what does this mess mean for Britain and the British people? CNN's Nina Dos

Santos is outside parliament. Nic Robertson, my colleague outside Downing Street, the residence of the Prime Minister. And Thomas Raines is in our

London Bureau. He is Europe program manager with Chatham House. Nic, let me start with you. A complete failure of government, chaos of her own

making. The opposition blasting Theresa May who cut a defiant figure in the house this afternoon and continues to do so. What should we make of

what we are witnessing?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: I think one thing we should do is to step back and remember what we are watching. Because what

we are watching is Theresa May laying out her Brexit strategy. There is no indication at all yet that the European Union would accept it at face value

and would not want to push for changes. And that is the crux of why David Davis quit, and that it is the crux of some of the questions that were

being asked by some of the well-known conservative back benchers there, Ian Duncan Smith, you know, to name but one. And others were there, too, who

were asking questions essentially leading to that point.

What other concessions might she be making? But I thought perhaps the most telling moment of Theresa May delivering her speech initially which was a

recap of what was agreed by the cabinet -- the headline agreed by the cabinet when they were sequestered on Friday night -- was when she said

we're putting these proposals to the European Union and essentially, they're being challenged by the European Union. There was huge jeering and

cheering because you got a real sense of that moment that the house was essentially saying to her, yes, but you're not getting anywhere with it.

And when she's picked up her lines again, she almost sort of sounded in awe of that raucous, raucous nature that she is so used to in the House of


But it was Jeremy Corbyn, the leader of the opposition, that said it's taken the government taken Theresa May two years to get to this position

here where you had your cabinet agree and it all fell apart in two days. You know, this is the time that you need to be wondering whether or not you

can actually do the job and he was said you cannot do the job. You cannot deliver on jobs. You cannot deliver on business. You cannot even deliver

a unified cabinet. You're struggling to lead your cabinet, never mind the government.

So, it was a very, very bruising session for the Prime Minister. It's still ongoing. She is delivering back.

[11:50:00] There are members of the Conservative Party that are sort of giving her questions that show their support for her. But essentially her

enemies are taking to their feet. It's parties and they're showing which side they're on, so the question is now will that be a leadership challenge

and, if so, who will lead it?

ANDERSON: Yes, to quote her opponents then, Nina, how can she get a decent deal with the EU when they say she can't even broker one within her own

cabinet. We know that she now has two significant departures from that cabinet, the first being the Brexit secretary himself, David Davis. That

might have been called careless. More so the resignation of the Foreign Secretary who has been a thorn in Theresa May's side since the Brexit

referendum back in June of 2016. Just how significant are those departures and how significant is the timing of these departures?

NINA DOS SANTOS, CNN CORRESPONDENT: Well, what's really significant is that these departures may not be over as well, Becky. Because there's a

lot of speculation that now the Secretary of State for the environment, Michael Gove, you'll remember at one point was in bed with Boris Johnson.

They both stood on the leave ticket and they both tried to campaign for the leadership of the Tory party that eventually went to Theresa May instead.

Well, he hasn't yet thrown his hat into the ring but there's a lot of speculation with Nigel Farage, the former U.K. Independent Party leader

openly speculating on Twitter in the last couple hours that Michael Gove could be the next person to show his cards and step down from his

particular post. Now that would be significant as well not just because of the potential political crisis that this could trigger in particular with

regards to a leadership contest for the head of the Tory party. But also because of the poisoning that has happened over in Salisbury. That is now

a murder investigation. A lot of the aftermath of that would have naturally come under the foreign office brief but also the Department of

the Environment as well.

So, we have key parts of the government here that are facing a significant security situation inside the U.K. that they have to deal with. We're not

sure whether the heads of those departments are going to stay in the position and then, of course, we have Brexit which is the next big thing on

the cards. And Michel Barnier, the chief negotiator on behalf of the European Union for Brexit is currently in the United States. Probably

watching all of this in a very perplexed manner. He's set to come back to Brussels next week. And the EU has made it very, very clear that he's keen

to get on with work straightaway. They've repeatedly said that they're available 24/7 to speak to Dominic Raab, the new Brexit Secretary of State.

But the big question is will the country still have a government if we have more people resigning over the course of the next 24 hours -- Becky.

ANDERSON: Thomas, David Davis on his resignation said, and I quote, I can't support this Brexit plan, but I do support Theresa May. I'd be very

surprised if we were to hear a similar line from Boris Johnson. Just so that our viewers know and as we speak on the right of your screen, viewers,

that is a live image from where Boris Johnson is, that is the foreign secretary's residence, that is where he is as we understand it at present.

Expecting to see him leave at any point. We haven't seen him since the news of his resignation just hours ago. So, keeping an eye on that when we

see what is now, the former Foreign Secretary. We will go live to that.

Thomas, this is what Boris Johnson said after being sacked from the conservative front bench back in 2004. My friends, as I have discovered

myself, there are no disasters, only opportunities. And, indeed, opportunities for fresh disasters.

What's next for Boris Johnson at this point? .

THOMAS RAINES, CHATHAM HOUSE PROGRAMME MANAGER, EUROPE: Well, I think the main question is whether he will try and challenge Theresa May for the

leadership of the Conservative Party. And in many ways, he's been a controversial pick to be Foreign Secretary. It's a role which you could

reasonably argue he was temperamentally not very well suited for. He's a sort of flamboyant politician rather than a delicate diplomat. He's

resigned at a very sensitive moment after this point when the Prime Minister appeared to have brokered a delicate compromise between her

candidate, when she seemed to have stared down the opposition within her own government over this plan, tried to get everyone on side. And he's now

joined David Davis in abandoning that plan. So, it appears that he's taking soundings to see whether he thinks he has enough support to

challenge Theresa May.

[11:55:01] Obviously, his own copy book is blotted somewhat by his behavior as a minister and his behavior in the wake of the referendum result.

ANDERSON: Thomas, stay with me. I need to take a very short break at this point, but we will speak after this. Live from Abu Dhabi, viewers, lots

more to come in what is our breaking news this hour, the British foreign secretary resigns amid what is Brexit turmoil. Some calling it chaos.

Some calling it the failure of the British government. We will discuss all that have after this.