Parliament's First Session Since Brexit Vote; P.M. Cameron Says Brexit Outcome Was Not One He Desired, But Process Must Now Begin Nonetheless; Cameron: We Will Not Stand For Hate Crime; Prime Minister Cameron Reassures That Robust Contingency Plans Are In Place; Cameron Says Article 50 Will Not Be Invoked At This Stage and That U.K. Should Not Turn Its Back On The EU; Corbyn Says Economy Needs Clear Plan For Investment And Welcomes Market Protections; Scotland Voted 62 Percent To Remain In  European Union And Is Considering Independence Referendum.
ANDERSON: The Houses of Parliament in London has the impact to the U.K.'s decision to leave of the European Union continues to be felt around the world. We are now waiting for Britain's prime minister to face parliament. It will be David Cameron's first time standing before them since he announced plans to resign. Mr. Cameron is coming from 10 Downing Street where he just met with his cabinet, his spokeperson says he told them to begin laying down the groundwork for a split with Europe. For more on the political chaos here in the U.K., we turn to John Peet, the Political Editor for The Economist. And forgive me John, we will break in to this because we will -- we are of course waiting on the statement from the prime minister. And this will be the first time that we've seen him since, 8:00 in the morning when it was clear that the country voted to leave the E.U. and he looked pretty stomped (ph) at this point.</s>JOHN PEET, POLITICAL EDITOR, THE ECONOMIST: Almost cheerful at one point. And he said he did not expect to leave the state. I think he assumed he will win all the way three</s>ANDERSON: Yes.</s>PEET: So he was stopped.</s>ANDERSON: What do you make of what's going on in present.</s>PEET: Well, it's the best. I mean, I think he have to resign. I always think he lost the state particularly since he was so strong identified remaining campaign he had to go. I'm slightly surprised the turmoil spread, say, quickly to the Labour party, the opposition as well. But we now (inaudible) leaderless parties. And obviously, we got problems with the markets, stock markets, with -- on selling falling. People want things to move more quickly. So I didn't think we got that long to resolve for the party.</s>ANDERSON: And we've been looking to some bright spots this morning. Now, I see that David Cameron there smiling on the right-hand said of the screen, just for the left. There aren't a lot of bright spots to talk about. One of them perhaps is that in fact Angela Merkel, the German Chancellor rating (ph) but keeping it basic, all the E.U. leaders who say out, is out, let's get Britain divorce from this club as quickly as possible suggesting that Britain should be needing some time, you know and let's just take this first a little clearer then others might ...</s>PEET: I think, I mean it will be an interesting to see what the mode is like in Brussels tomorrow when Mr. Cameron goes out to meet his colleagues, but I think they were -- their (inaudible) is British. They didn't think this is very -- was necessarily, they think Cameron has mishandled it ...</s>BECKY ANDERSON, CNN ANCHOR: Just take this process a little flow than others might ...</s>JOHN PEET, POLITICAL EDITOR, THE ECONOMIST: I think, I mean it will be an interesting to see what the mood is like in Brussels tomorrow when Mr. Cameron goes out to meet his colleagues. But I think they were -- they're angry with the British. They don't think it was necessary. They think Cameron mishandled it. Britain is always an awkward country in the European Union anyway.</s>ANDERSON: Yeah.</s>PEET: But there's also grown politicians. They know that elections (ph) always what people what to do. And they were trying the best of way we got to and they want to have a good relationship with Britain. They want to preserve trade as much as they can. And so I think they will be quite grown up about their approach because that's not the same being easy or generous to the British. So I think, you know, it's going to be a tough negotiation.</s>ANDERSON: What do we need to hear from David Cameron?</s>PEET: I think we need to hear that he's exploring all these options, that his setting in train quite quickly a Tory leadership contest because we do need new prime minister. And I think, you know, early October is maybe too late. We want it -- we may want it before then because I think they do need to get the negotiations going.</s>ANDERSON: We've heard from the committee that organizes these things that the nominations for a new leader of conservative party will be in and close by Wednesday evening.</s>PEET: Yes.</s>ANDERSON: And that a new leader of the conservative party will be in position by the December the 2nd.</s>PEET: December.</s>ANDERSON: That's pretty quick I think, you know.</s>PEET: That is quite clear. I mean it may (inaudible) a bit but that is ...</s>ANDERSON: Yeah.</s>PEET: That is quite clear because probably will respond to the pressure. I think the question then is how quickly do we -- and to form organizations to lead. And I think the other countries will want happen quite quickly in September. The new leader, if its Boris Johnson may say you'd rather have an informal negotiation before we get into the formal exit negotiations. I think the other countries will say that no interested in that. They want to know whether Britain serious about leaving or not. It's conceivable somewhat during this negotiation period.</s>ANDERSON: Yeah.</s>PEET: The British may something to say well we're not sure this is a game or the right way. We need to think again. But I think, you know, a referendum like this probably doesn't mean we are leaving.</s>ANDERSON: David Cameron has had the weekend to think about what is he's going to say here. It is 3:30. We'll just ask you within -- in the U.K. We are waiting his statement to the British Parliament. He's got a weekend to think about it. Given that (inaudible) seems -- he's standing up now. So let's go ...</s>PEET: Yes.</s>ANDERSON: ... to David Cameron.</s>DAVID CAMERON, BRITISH PRIME MINISTER: Thank you, Mr. Speaker. With permission, Mr Speaker, I would like to make a statement on the result of the E.U. referendum. Last week saw one of the biggest democratic exercises in our history with over 33 million people from England, Scotland, Wales, Northern Ireland and Gibraltar all having their say. We should be proud of our parliamentary democracy. But it is right that when we consider questions of this magnitude, we don't just leave it to politicians but rather listen directly to the people. And that is why Members from across this House voted for a referendum by a margin of almost 6 to 1. And when I talk about this House, let me welcome the new member for choosing to her place. I think I had advice to keep my mobile phone. She might be the shadow cabinet by the end of the day. And I thought I was having a bad day. Mr Speaker, let me set out for the House what this vote means, the steps we are taking immediately to stabilize the U.K. economy, the preparatory work for the negotiation to leave the EU, our plans for fully engaging the devolved administrations and the next steps at tomorrow's European Council. Mr Speaker, the British people have voted to leave the European Union. It was not the result I wanted nor the outcome that I believed is best for the country I love. But there can be no doubt about the result. Of course, I don't take back what I said about the risks. It is going to be difficult. We have already seen that there are going to be adjustments within our economy, complex constitutional issues, and a challenging new negotiation to undertake with Europe. But I am clear -- and the Cabinet agreed this morning -- that the decision must be accepted and the process of implementing the decision in the best possible way must now begin. At the same time, Mr Speaker, we have a fundamental responsibility to bring our country together. In the past few days we have seen despicable graffiti daubed on a Polish community centre. We've seen verbal abuse hurled against individuals because they are members of ethnic minorities. Let's remember these people have come here and made a wonderful contribution to our country. And we will not stand for hate crime or these kinds of attacks. They must be stamped out. Mr Speaker, we can reassure European citizens living here, and Brits living in European countries, that there will be no immediate changes in their circumstances. Neither will there be any initial change in the way our people can travel, in the way our goods can move, or the way our services can be sold. The deal we negotiated at the European Council in February will now be discarded and a new negotiation to leave the EU will begin under a new Prime Minister. Turning to our economy, it is clear that markets are volatile, there are some companies considering their investments and we know this is going to be far from plain sailing. However, we should take confidence from the fact that Britain is ready to confront what the future holds for us from a position of strength. As a result of our long-term economic plan, we have today one of the strongest major advanced economies in the world and we are well placed to face the challenges ahead. We have low, stable inflation. The employment rate remains the highest it has ever been. The budget deficit is down from 11 percent of national income, forecast to be below 3 percent this year. The financial system is also substantially more resilient than it was 6 years ago, with capital requirements for the largest banks now 10 times higher than before the banking crisis. The markets may not have been expecting the referendum result but, as the Chancellor set out this morning, the Treasury, the Bank of England and our other financial authorities have spent the last few months putting in place robust contingency plans. As the Governor of the Bank of England said on Friday, the Bank's stress tests have shown that U.K. institutions have enough capital and liquidity reserves to withstand a scenario more severe than the country currently faces. And the Bank can make available 250 billion pounds of additional funds if it needs to support banks and markets. In the coming days, the Treasury, the Bank of England and the Financial Conduct Authority will continue to be in very close contact. They have contingency plans in place to maintain financial stability -- and they will not hesitate to take further measures if required. Turning to preparations for negotiating our exit from the E.U., the Cabinet met this morning and agreed the creation of a new EU unit in Whitehall. This will bring together officials and policy expertise from across the Cabinet Office, Treasury, Foreign Office and Business Department. Clearly, this will be most complex and most important task that the British Civil Service has undertaken in decades. So the new unit will sit at the heart of government and be led by and staffed by the best and brightest from across our Civil Service. It will report to the whole of the Cabinet on delivering the outcome of the referendum, advising on transitional issues and exploring objectively options for our future relationship with Europe and the rest of the world from outside the E.U. And it will be responsible for ensuring that the new Prime Minister has the best possible advice from the moment of their arrival. Mr Speaker, I know that colleagues on all sides of the House will want to contribute to how we prepare and execute the new negotiation to leave the E.U. And my Right Honored Friend the Chancellor of the Duchy of Lancaster will listen to all views and representations and make sure they are fully put into this exercise. He will be playing no part in the leadership election. Turning to the devolved administrations, we must ensure that the interests of all parts of our United Kingdom are protected and advanced. So as we prepare for a new negotiation with the European Union, we will fully involve the Scottish, Welsh and Northern Ireland governments. We will also consult Gibraltar, the Crown Dependencies, the Overseas Territories and all regional centres of power, including the London Assembly. I have spoken to the First Ministers of Scotland and Wales, as well as the First and Deputy First Ministers in Northern Ireland and the Taoiseach, and our officials will be working intensively together over the coming weeks to bring our devolved administrations into the process for determining the decisions that need to be taken. Mr Speaker, while all of the key decisions will have to wait for the arrival of the new Prime Minister, there is a lot of work that can be started now. For instance, the British and Irish governments begin meeting this week to work through the challenges relating to the common border area. Mr Speaker, tomorrow I will attend the European Council. In the last few days I have spoken to Chancellor Merkel, President Hollande and a number of other European leaders. We have discussed the need to prepare for the negotiations and in particular the fact that the British government will not be triggering Article 50 at this stage. Before we do that we need to determine the kind of relationship we want with the EU. And that is rightly something for the next Prime Minister and their Cabinet to decide. I have also made this point to the Presidents of the European Council and the European Commission and I will make this clear again at the European Council tomorrow. Mr Speaker, this is our sovereign decision and it will be for Britain - and Britain alone - to take. Tomorrow is also an opportunity to make this point, Britain is leaving the European Union, but we must not turn our back on Europe -- or on the rest of the world. The nature of the relationship we secure with the E.U. will be determined by the next government. But I think everyone is agreed that we will want the strongest possible economic links with our European neighbors, as well as with our close friends in North America, the Commonwealth and important partners like India and China. I am also sure that whatever the precise nature of our future relationship, we will want to continue with a great deal of our extensive security cooperation and to do all we can to influence decisions that will affect the prosperity and safety of our people here at home. Mr Speaker, this negotiation will require strong, determined and committed leadership. And as I have said, I think the country requires a new Prime Minister and Cabinet to take it in this direction. This is not a decision I have taken lightly. But I am absolutely convinced that it is in the national interest. Mr Speaker, although leaving the E.U. was not the path I recommended, I am the first to praise our incredible strengths as a country. As we proceed with implementing this decision and facing the challenges that it will undoubtedly bring, I believe we should hold fast to a vision of Britain that wants to be respected abroad, tolerant at home, engaged in the world and working with our international partners to advance the prosperity and security of our nation for generations to come. I have fought for these things every day of my political life and I will continue to do so. And I commend this Statement to the House.</s>JOHN BERCOW, SPEAKER OF THE HOUSE OF COMMONS: And the leader of the Opposition Jeremy Corbyn.</s>JEREMY CORBYN, LABOUR PARTY LEADER: Thank you. Thank you, Mr. Speaker. Firstly, I would like to thank the British people for turning out to vote in the referendum in such high numbers. The votes was a reflection of the significant of the issue, but it was a close vote on the back of the campaign that was too often divisive and negative. These benches put forward a positive case to remain part of the European Union and convince more than 2/3 of our supporters. But the majority of people have voted to leave and we have listened to an accepted what they've said. Many people feel disenfranchised and powerless, especially in parts of the country that have left behind for far too long. Communities, Mr. Speaker, that have been let down not by the European Union but by Tory governments. Those communities don't trust politician's deliver because for too long they haven't. So, instead of more extreme cuts to local services which have hit the areas the hardest, this government needs to invest in those communities. Many of those areas are deeply concerned. Deeply concerned about the security of pledge E.U. funding. Can the Prime Minister give us any guarantees on those issues as that money is desperately needed? Secondly, is the issue of trust and the tenor in the referendum campaign was disheartening. Half truce and untruce were told.</s>UNIDENTIFIED FEMALE: Yeah.</s>CORBYN: Many of which key lead figures spent the weekend distancing themselves from not at least proclaim that the vote will leave the -- would hand the NHIS an extra 350 million pounds per week. It is quite shameful that politicians may claim the new (inaudible) of promises they knew could not be delivered. Thirdly, real concern exist about immigration but too much of the discussion in the referendum campaign was intemperate and divisive. And in the days following the referendum results, it appears we've seen a rise in racist incidents such as the attack on the Polish Center in Hammersmith which the Prime Minister quite right he referred to, and sadly, many of the such incidents all of over this country. I hope the Prime Minister and Home Secretary will take all action they can to help these attacks, help this graceful racist behavior on the streets of this country. As political leaders, we have duty to calm our language and our tone, especially after shocking events of 10 days ago. Our country is divided and the country will thank neither the benches in front of me nor those behind for indulging an internal factoring maneuvering at this time. Mr. Speaker, we have serious matters to discuss in this House and in the country.</s>BERCOW: I want to accommodate as many as possible of those colleagues who wish to question the Prime Minister matter to just slow up if people make a lot of noise. I've got plenty of time. I don't know other people have. Jeremy Corbyn.</s>CORBYN: Thank you, Mr. Speaker. It does appear that neither wing of the Tory government has an exit plan which is why we're insisting that the Labour Party be fully engaged in the negotiations that lie ahead. We need the freedom to shape our economy for the future and protect social and employment rights while building new policies on trade, on migration, environmental protection and on investment. I fully understand the Prime Minister is standing down in three months time but we cannot be in a state of paralysis until then. The Prime Minister is making the European council tomorrow. I hope he's going to say that negotiations will begin so we know what's going on, rather than being delayed until October. We as a house have a duty to act in the national interest and ensure we get the best agreements for our constituents. Will the Prime Minister today confirm that in the light of the economic turmoil, the chancellor would announce at least a suspension, prepping the termination of his now even more counterproductive fiscal rule? What the economy needs now is a clear plan for investment particularly in those communities that have been so damaged by this government and sent such a very strong message to all of us last week. Will he specifically rule out tax rises or further cuts to public services that was threatened in the pre-referendum? I welcome his assurances on the uncertainty felt by many E.U. nationals currently working in our economy, including the 52,000 who work so well and held by a national health service to provide the service we all need. It is welcome that the Prime Minister is consulting with the leaders of devolved administrations and I hope with the mayor of London too, a city for which the implications are huge. We must act in the public interest and support nations to reduce volatility. I welcome market protections but what about protections for people's jobs, their wages, and their pensions? Can the Prime Minister make clear what plans are in place? The chancellor spoke this morning to reassure the stock markets, though they clearly remain very uncertain. We understand that some measures cannot be discussed in the house, so will he give me an assurance that the chancellor will provide private briefings to has offset numbers on this matter? Finally, Mr. Speaker, on a personal note, may I say -- may I say Mr. Speaker, finally on a personal note, I've many fundamental disagreements with the policies of the Prime Minister and his governance. Nevertheless, as he announces the end of his premiership, its right to reflect that he led a government that delivered equal marriage against the majority of his own MPs and he was right to do so. But I want to thank him too for his response to the bloody Sunday inquiry and had reject -- reacted to the tragic murder of Jo Cox. We thank him for his service that I'm sure we will enjoy many more debates and disagreements while he continues as Prime Minister.</s>CAMERON: Thank you, Mr. Speaker. Well, let me agree with the leadership opposition that it was positive turnout was so high. I also agree with him that we do need to reach out to those people who haven't benefited from economic rights and make sure they feel that their economic security is important to us as well. But I don't agree with him that it's right to start to try and re-fight the campaign all over again. All I know, from my part, is I feel I put everything I could into the campaign that I believed in with heart and soul, and left nothing out and I think that was the right thing to do. Answering these questions on money that different areas of the country get, until we leave the EU none of those arrangements change. So, what has been set out in the budget and the payments and the rest of it, all of those continue. But as the negotiation begins probably for leaving, obviously, the next government will want to set out what arrangements it will put in place for farmers, for local authorities, for regions of our country. On intolerance -- in fighting intolerance, I absolutely agree with him. We must take all action we can to stamp this out. He asked about the chancellor's fiscal rule and also future plans. What I would say is that we have not worked so hard to get the budget deficit from 11 percent down to below 3 percent to see that go to waste. And we must continue to make sure that we have a sound and strong economic plan in our country. For the coming months, that is my responsibility and the chancellor's responsibility. In time, it will be the responsibility of a new government. And they will have to decide how to react if there are economic difficulties along the way. He asked if there could be private briefings for members of the front bench with the chancellor, his checker (ph). As always, in these arrangements, if shadow cabinet members want these sorts of briefings, they can have them. And can I finally thank him for his kind remarks and the fact that he hopes that we'll be debating with each other some weeks and possibly months to come.</s>UNIDENTIFIED MALE: Mr. Speaker, when we acquire a new government that's decided what it means by leaving and draws up some detailed policy instructions for the committee officials he set up, a great deal of detailed legislation on covering a whole variety of fields was thought being submitted to this parliament. Does my right honorable friend agree that we still have a parliamentary democracy? And it will be the detail -- duty of each Member of Parliament to judge each measure in the light of what each man and woman regards as the national interest and not to take broad guidance from a plebiscite which has produced a small majority on a broad question after a bad tempered and ill informed debate? And would he agree that we face months of uncertainty if we're not careful either?</s>BERCOW: It's really not acceptable for people to make that level of noise. The right honorable and leaded gentleman will be heard and every member of this house will be heard. Let's accord the right honorable and leaded gentleman the respect to which he's entitled.</s>UNIDENTIFIED MALE: Thank you, Mr. Speaker. And with my right honorable read as a risk of uncertainty for a few months causing very considerable difficulty, we consider the possible first step of joining the European economic area, which was designed in the first place for countries like Norway and Iceland where the great bulk of politicians wish to join the European Union but could not get past the ridiculous hurdle of a referendum in order to get there. And that that would at least would be negotiated, modifications, changes, if anybody can decide what they want after we get there, but do we give some reassuring order and stability to our economy and might begin to attract a little investment and future prospects for our country.</s>CAMERON: Well, let me thank my right honorable friend for his remarks. It might be a symbol this house shouldn't block the will of the British people to leave the European Union. But of course, we've now got to look at all the detailed arrangements and parliament will clearly have a role in that, in making sure that we find the best way forward. And will be principally the job for the next government. But I do believe in parliamentary sovereignty and the sovereignty of this parliament and the latter detail will have to be discussed and debated. But decisions like whether or not to join the EEA must be for our future government.</s>BERCOW: Angus Robertson.</s>ANGUS ROBERTSON, MEMBER OF PARLIAMENT: Thank you very much, Mr. Speaker. Scotland voted overwhelmingly to remain in the European Union. The 62 percent of voters cast their votes to remain the EU. Every single local government area in the country voted to remain in the EU. And in Scotland, we voted to remain because it really matters that we are in the single European market because we value the free movement of people of goods and services because our EU citizenship rights matter as do our legal safeguards for workers, for women and for parents. In Scotland, Mr. Speaker, we voted to remain because we are a European nation. It really, really matters to us that we live in an outward-looking country not a diminished little Britain. In Scotland, we are now being told from Westminster that despite the majority against leave, we're going to have to do as we're told. We're going to be taken out of Europe against our will. Mr. Speaker, let me tell this house and our friends across Europe, we have no intention whatsoever of seeing Scotland taken out of Europe. That would be totally, totally democratically unacceptable. We are a European country and we will stay a European country. And if that means we have to have an independence referendum to protect Scotland's place then so be it. Thank goodness, Mr. Speaker, that we have a Scottish government and a first minister prepared to lead and seek to protect Scotland's place. And it is very, very welcome that this approach is being supported by opposition political parties across the Scottish parliament. Meanwhile, Mr. Speaker, Project Fear has turned to Project Force. Apparently, those who proposed that we could leave Europe have no plan. A senior leave MP said and report, there is no plan. The Leave Campaign don't have the post Brexit plan. They went on to say number 10 should have had a plan. Meanwhile, U.K. share prices are so volatile that some stocks have temporarily been suspended and Sterling has hit a 31-year low. Mr. Speaker, on one thing I hope we are all agreed. And that is that we take very serious note of the very disturbing series of racist incidents directed against our fellow citizens who happen to come from other European countries. I hope that we all on all sides totally repudiate these despicable acts and encourage the police and prosecuting authorities to do all that they can. Mr. Speaker, given the economic damage and uncertainty that is currently being caused, may I ask the Prime Minister the following financial questions. We welcome the actions of the Governor of The Bank of England to help provide certainty in difficult times. Can the Prime Minister confirm that the Governor has no plans presently to change his forward guidance on interest rates? The S&P will continue to support any sensible measures to deliver stability and confidence in the U.K. economy at this time. However, we want to be explicitly clear that this will not be used to further deepen the program of austerity. In conclusion, Mr. Speaker, the lack of leadership from Whitehall over the past few days has been unprecedented. We recognize at any further drift or vacuum simply exacerbates uncertainty. We know the Prime Minister is planning to leave and we wish him well. But can we have an absolute assurance that this government will finally start to take a firm grip of the situation we all sadly find ourselves in it.</s>CAMERON: But first of all what I say to the honorable gentleman is our focus should be to get the very best deal for the United Kingdom outside the European Union. That should be the very best deal for Scotland as well. I actually agree with him about the despicable acts of racism that are taking place and that we reassure him as well. We will take every step that we can. He asked questions specifically about interest rates that is the matter for the Governor of Bank of England and a monetary policy committee. And they set out the views in advance of the referendum. He asked about budget that's going to be a matter for a future government. And then they say this to him, Scotland benefits from being in two single markets, the United Kingdom and the European single market. In my view, the best outcome is to try and keep Scotland in both.</s>BERCOW: Sir William Cash.</s>SIR WILLIAM CASH, MEMBER OF PARLIAMENT: Thank you. Thank you. Thank you Mr. Speaker. May I first of all pay tribute to the Prime Minister for the dignity with which he addressed the nation from 10 Downing Street yesterday. Mr. Speaker, will my right on the offense take a positive and simple message to the leaders of the other 27 member states of the European Council tomorrow. They made -- a voters of the United Kingdom have demonstrated that the value of that great principle, the principle of democracy for which people fought and died.</s>CAMERON: Hello. Let me take my honorable friend. Of course, when I go to the European Council tomorrow, I will report directly of the result and the decision of the British people and no one should be in any doubt about that. But I think it's important that we set off on this path of exiting from the European Union. We try to build as much good will as possible on both sides.</s>BERCOW: Tim Farron.</s>TIMOTHY JAMES FARRON, LEADER OF THE LIBERAL DEMOCRATS: Can I pay tribute to the Prime Minister following the announcement of his resignation on Friday. Of course, we haven't often agree but his commitment to historic bipartisanship during the coalition government and his energetic commitment to the Remain Campaign contrast favorably, the tribalism of others. He has my respect and my thanks. I also respect the outcome of the referendum but I still feel passionately the Britain's interests are best served at the heart of Europe in the European Union. I can accept defeat but I will not give up. I have not changed my beliefs. With the promises of the Leave Campaign unraveling and no leadership being shown by the opposition, will the Prime Minister confirm that free movements of people and access to single market are paramount the economic stability of Britain? How many launched investigation as the whereabouts are the members for Oxbridge, I'm sorry.</s>CAMERON: It's all up to me to ensure attendance in the chamber. I've got many responsibilities but that's not one of them. Let me thank him for what he said about my leadership and that is how much I enjoy playing on a platform with him at the final rally outside Birmingham University. We've brought together himself, myself and Gordon Brown (ph) and they are unique but obviously unpersuasive trilogy. Well, they have to say Gordon Brown (ph) on the write when they gave fantastic speeches. END