European Affairs

Debate between Baroness Chapman of Darlington and Phil Wilson

Wednesday 14th March 2018 Commons Chamber

[Phil Wilson (Sedgefield) (Lab)]

I want to raise two areas of European affairs this afternoon.

The first is the potential impact of Brexit on the north-east of England. Some 60% of north-east trade is with the EU and 50% of the cars manufactured in the north-east are exported to the EU. Nissan employs about 7,000 people and more than 30,000 jobs through the supply chain. I have never been one to say that, for example, after Brexit the Nissan plant will close, but I am concerned about future investment in the plant. As the Business, Energy and Industrial Strategy Committee said in its report on the impact of Brexit on the automotive sector:

“It is difficult to see how it would make economic sense for multinational volume manufacturers—the bulk of the UK automotive sector—to base production in the UK in a no deal or WTO tariff scenario. The shift of manufacturing to countries within the customs union and single market will be inevitable.”

The cost to UK jobs could be in the hundreds of thousands and to inward investment in the hundreds of millions of pounds. That is another example of why many of us on the Labour Benches call on the UK to remain a member of the single market and the customs union. The same report made it explicit that the UK cannot expect an expansion of trade overseas to outweigh the loss of trade to Europe arising from a hard Brexit. It seems senseless to me to walk away from one half of the north-east’s trade without a strategic means of replacing it other than through wishful thinking.

The impact assessments the Government tried to keep to themselves reveal the potential impact on the north-east. They identify that three of the major sectors to be hit by Brexit will be the automotive, chemical and pharmaceutical sectors—all major industries in the north-east of England. The impact assessments determine that of all the regions and nations of the UK, the north-east of England will be the worst hit. This is due to the region’s strong manufacturing and industrial base, which would be exposed most to the changes and trade barriers, and because we have the greatest dependence on exports as a proportion of the regional economy.

The impact assessments say that the north-east would see a decline in its GDP by as much as 16% over 15 years. We can talk about a new customs arrangement, frictionless borders and non-divergence as much as we like, but all we will end up doing is reinventing the wheel only to discover it will not be as round as the original. It is no surprise that the north-east of England chamber of commerce issued a statement following the spring statement. Ross Smith, director of policy for the chamber, said:

“the success or otherwise of negotiations and planning for Brexit could yet render these forecasts largely irrelevant and business still have little detail to base their planning on”.

The second issue, of great strategic importance not only to the UK but Europe, is our response to Russia’s flouting of basic international law and the international rules-based systems by which the community of nations should abide. I do not think we should doubt that Russia’s intent with the continent of Europe is to divide and rule. Putin wants a weak Europe. Brexit, I believe, plays straight into his hands. Russia wants to see Europe divided, introspective and prepared, ultimately, to play the international game by his and Russia’s rule.

Bully-boy tactics are always the result of the weak. The Russian state is weak, economically no larger than Italy. Its population is ageing. Its military strength may be perceived to be great, but it lacks depth.

[Jenny Chapman (Darlington) (Lab)]

I thank my hon. Friend and colleague from the north-east for giving way. I just wanted to point out that, although the north-east voted substantially to leave, it shares his concerns about manufacturing, jobs and security.

Transport in the North

Debate between Baroness Chapman of Darlington and Phil Wilson

Monday 6th November 2017 Commons Chamber

[Phil Wilson (Sedgefield) (Lab)]

There is obviously a big issue with the disparity between the investment in the transport infrastructure in the north-east of England and the investment elsewhere. We have bus networks that are dislocated, and in rural areas probably non-existent. The road networks are congested and the rail network is neglected. The Institute for Public Policy Research says that half of planned transport spending will go to London, with the north receiving £427 per person, compared with nearly £2,000 per person in London. In fact, over the past five years transport expenditure in the north-east was £3.1 billion, while in London it was £30 billion—in the north-east it is only a tenth of what it is in London.

On the road network, the two main north to south roads through the north-east are the A1, which goes through the centre of Sedgefield, and the A19. The upgrade of the A1 stops at Scotch Corner. It seems as if that upgrade has been going on for years—anyone just has to travel on that road to feel it. Ironically, the A19 is the most congested road. We desperately need a new A19 crossing over the River Tees. Councillor Bill Dixon, leader of Darlington Borough Council and Chair of the Transport Committee for the Tees Valley combined authority, said that, for far too long, residents of Tees Valley have suffered frustration and delays because our major roads are not equipped to deal with the volume of traffic. The A19 crossing is necessary.

There is also a need for a relief road, which is mentioned in the combined authority’s plans, at junction 60 on the A1, just outside Newton Aycliffe, home to the biggest industrial estate, down to Great Burdon on the A66 to give further access to Teesport. Companies such as Stiller, the road haulier company, say that there is a need for such access. It means that the road would cut past the small village of Brafferton. Any change that takes place must be done sensitively, with the views of the local people taken into consideration.

[Jenny Chapman (Darlington) (Lab)]

May I take the opportunity to congratulate my hon. Friend on his speech and to mention another reason for needing the road? The residents of Darlington have suffered large vehicles going very close to their homes, with big impacts on road safety and air quality.

[Phil Wilson]

Yes, I know that from going down North Road to the railway station to get to London. It takes a long time to get down there, so the congestion must be relieved.

On the railway infrastructure, there has been talk about the Leamside line, which runs down to Tursdale, just north of Ferryhill, which is in my constituency. There has been talk of refurbishing that line for decades now. I remember it being discussed back in the 1980s. To refurbish that route would alleviate a lot of pressure on the east coast main line, and help to ensure that commuters can get from the Tyne to the Tees, and vice versa. It could also lead to the reopening of a station at Ferryhill, which closed many years ago and which commuters could use to get to both the Tyne and the Tees. It would also help the local economy in Ferryhill.

Hitachi, the rail builders, are in my constituency. Although HS2 is a controversial project, Hitachi has been shortlisted to build the rolling stock, which is a £2 billion-plus contract and will create a lot of jobs for the local area. That is important for the north-east and we should not forget it. The actual factory has brought train building full circle. Locomotion No.1 was assembled there back in 1825, and the company is now building the bimodal trains. The Government asked for those trains to be built, because they knew that electrification of the railway would not go forward in the way that we expected.

The last matter I want to mention is Durham Tees Valley Airport, which is also in my constituency. Owned by Peel Airports, it has been through troubled times over the past few years. It only has two routes now: to Schiphol and to Aberdeen. Peel wants to ensure that the airport can be kept open into the future. The newly elected Conservative mayor of Tees Valley says that he wants to nationalise the airport. A few months ago, I asked the Transport Secretary about the plans for nationalising regional airports, and he said that there were not any, which I found interesting as it was the main campaign issue for the Conservative mayor.

Questions need to be asked. If the Minister has had discussions, perhaps he can help us. What kind of nationalisation are we talking about? Is it state-owned nationalisation or a workers’ co-operative? Are we talking about socialism in one airport or is this a Trojan horse? Is it a transitional demand that would lead to the full nationalisation of all the regional airports in the country? We need answers today. Maybe the main thing that should be considered for Durham Tees Valley airport is a third runway at Heathrow. We need investment in the north-east because we have a lot to say but we need the transport infrastructure to spread the news.