The Government's Plan for Brexit

Debate between Baroness Ritchie of Downpatrick and Angela Smith

Wednesday 7th December 2016 Commons Chamber

[Angela Smith (Penistone and Stocksbridge) (Lab)]

Let me be absolutely clear. We cannot say this often enough: this debate is not about whether we Brexit but how we Brexit. That is of prime importance. Decisions taken during the withdrawal process could have a huge impact on our economy and the prosperity of the people of this country. I do not accept the comments by the right hon. Member for West Dorset (Sir Oliver Letwin). The future of this country and its prosperity is of prime significance to the Members of this Chamber, and we have a right to discuss, debate and take a vote on it.

The people may have voted for Brexit—we cannot say this often enough, either—but they did not vote to be poorer. I echo the comments made by my right hon. Friends the Members for Leeds Central (Hilary Benn) and for Doncaster North (Edward Miliband). The time for digs against and negative comments about those of us who want the best possible deal for the UK is over. It is time to move on and to be responsible and mature in terms of what we are looking for.

It is the responsibility of Parliament to explore what Brexit means, both for our constituents and, importantly, for businesses located in our constituencies. I shall take for an example a key sector of our economy—food and farming, the biggest manufacturing sector in the UK economy, with a value of more than £108 billion, providing 3.9 million jobs. Seventy-five per cent. of our agricultural exports are to the European Union.

[Ms Margaret Ritchie (South Down) (SDLP)]

My hon. Friend and I are both members of the Select Committee on Environment, Food and Rural Affairs. Yesterday, I had a meeting with a Minister from the Department for Environment, Food and Rural Affairs, and I fear that there is a problem in the Department with the conflation of two issues—free trade and access to the single market. Will my hon. Friend comment on that issue?

[Angela Smith]

I shall come on to the option that we should follow in the negotiations. As many Members have illustrated, we all have views on where we should be going. The National Farmers Union has modelled three scenarios for the outcome of the negotiations: a free trade agreement with the European Union; World Trade Organisation rules; and trade liberalisation.

The potential cost to farming of non-tariff barriers to access the EU and worldwide trade range from 5% as a result of regulatory divergence to 8%. If direct farm payments are reduced or taken away completely from farmers in those scenarios, there will be a hugely negative impact on farm incomes, ranging from a reduction of £24,000 per annum under the best deal—the free trade deal—to an impact of over £30,000 per annum on individual farm income under the trade liberalisation scenario. The EU spends £3.2 billion a year on support to farmers, which is just under 25% of what we pay the EU to be a member of the Union. A key question for the Commons is whether we continue direct farm payments to farmers at the existing 100% level. Do we reduce it, and do we look at the impact on farm trade and individual farmers? We need answers to those questions before we can sign off any Government position on what we do in Brussels in summer 2017.

The farming industry employs more than 80,000 seasonal workers a year. The NFU has called for a seasonal agricultural workers permit scheme. The Government refuse to commit to such a scheme, but without that input there is little hope for the horticultural sector. Furthermore, the food and drink manufacturing sector has a skills gap. By 2024, it will stand at 130,000. On top of that, one in 12 employers in the sector report an intention on the part of their employees to go back home.

The road haulage industry, which is a critical service for the food and farming sector, has a skills shortage of 45,000. Sixty thousand drivers in the UK are foreign, mostly from the EU. The veterinary sector is another vital service for the food and farming sector, and reports that over 50% of vets registered every year in the UK come from abroad, mostly the EU.