Beyond Brexit: Institutional Framework (EUC Report)

Baroness Armstrong of Hill Top Excerpts

Monday 6th December 2021 Grand Committee

[Baroness Armstrong of Hill Top (Lab)]

My Lords, I left the EU Committee in July 2019. I am speaking today largely because the noble Baroness, Lady Verma, who is chair the EU Goods Sub-Committee, asked me to. I think she did so largely for continuity, because the reports that you see today are built on work that has been going on for many years, in this House and in the EU Committee. A lot has happened since 2019. However, much that was done then needs to inform how we assess the work we are looking at today. In some senses, I feel that the loss of the EU Committee may well end up being a little premature. Listening to the noble Lord, Lord Jay, has reinforced that view.

The committees have been a significant means of scrutiny, initially of EU legislation and activity, which included the UK’s role in the EU. As we have heard today, there is still not that settled body of institutions and processes that enable effective scrutiny and accountability. I know there is widespread concern about that among Members of this House.

I put on record my thanks to everyone concerned with the committee. They treated me enormously well and kindly when I was on it, even when I was not participating that much because I was ill. I learned an enormous amount from them and from what was going on in the committee and in the EU, which I hope has served me well in my activities in this House.

The report before us on trade in goods recognises that its conclusions are inevitably “preliminary” and that

“the nature, causes and longevity”

of the issues

“are likely to become clearer over the coming months and years.”

That is another reason why I say that scrutiny and accountability in future will be exceptionally important.

The issues in this report reflect much of the evidence we heard some two and a half years ago and form the basis of the concerns of the business community and others today. As the noble Baroness, Lady Verma, has said to me, complex processes and the consequential paperwork have remained significant issues for many businesses, particularly small businesses. It is therefore very important that the Government seek to ensure that, in working with the EU on the implementation of what they are agreeing, they try to reduce the complexity and paperwork for the trade of goods.

The recent crisis in the ability to move goods was a salutary lesson to us all. It demonstrated that the haulage industry faces incredible challenges—not just shortages of labour and drivers but the shortage and poor quality of facilities for those moving goods. I do not know about others here, but I was severely embarrassed to hear the stories of what those workers have to put up with when they transport goods and are stuck on motorways or in car parks, unable properly to use services to look after themselves, let alone the goods they are seeking to move. The problems of the haulage industry also demonstrated to us just how reliant we are on the ability to move goods just in time, as they say in modern manufacturing, where the intricate co-ordination of the supply chain really has to come together.

We have been incredibly unfortunate to have a global pandemic at the same time as leaving the EU. However, the EU remains our largest and nearest partner for trade in goods, and we have to be able to come out of the pandemic in the best possible position to develop trade in goods and services.

I am sorry to keep going on about it but, as many will know, I come from the north-east—the region of England that has the highest proportion of its economy per head of population based on manufacturing. Therefore, it trades with the EU more per head of population than any other region. I have a particular interest in ensuring that all that is talked about in this report works. Unfortunately, in this year, the latest figures for the north-east show an 11% decline in trade with the EU. Unless that is halted, it will have a medium to long-term effect on not only wages but the whole economy—on levels of poverty, levels of disadvantage and so on. I am sure that is not what the Government want. If they want levelling-up, they must address this issue with urgency and have in mind the longer-term effects of decisions that they take today.

Much that the noble Earl, Lord Kinnoull, my noble friend Lady Donaghy and the noble Lord, Lord Jay, have said about institutions and how we develop our relationship with the EU is extremely relevant to this debate. We spent a lot of time and energy on the nature of that relationship before the final outcome, with the agreement signed in December 2019. I remain of the view that we will be far more successful in negotiations if we act as grown-ups, treating each other with respect and as we would wish to be treated ourselves, while keeping our word and acting with integrity. However, there is sometimes a view that if we work in that way we will be seen to be rolling over in negotiations. That is absolute nonsense; if I was being really difficult, I would say it reflects old-time male attitudes.

Let us grow up and treat our partners as real partners who are able to contribute to the development and success of our country as well. We can contribute to countries across Europe being successful and they can contribute to our success. If we think that in today’s world, we can do it all without them or that sort of relationship, then we are living in cloud-cuckoo-land. The people of this country have the right to demand that we deal honestly and fairly with them, which also means dealing with the EU in that manner.