(4 years ago)
Lords ChamberMy Lords, I am grateful to the noble Lord, Lord Fox, to be able to support this amendment. We do not yet know whether we will get a deal with the EU or what exactly the deal will look like if we do. What we can say is that a no-deal on services will be a no-deal for the country, irrespective of whether we get a deal. The Government and the media have consistently underestimated the importance of service industries, both to this country and as part of our trade with Europe. Service industries are 80% of our GDP, a statistic we have repeated many times in this House. Our services trade with Europe makes up 51% of our services exports. As it stands, Europe is a hugely important market for services—the most important. Due to the significance of geography to service industries, it is one that is frankly irreplaceable.
Services have not been ignored in all quarters. In an interview with the Observer on 1 November before stepping down as director-general of the CBI, Carolyn Fairbairn said that her “really big disappointment”—her exact words—was the lack of help for services in the potential deal. The recent report by the EU Services Sub-Committee, The Future UK-EU Relationship on Professional and Business Services, raises similar concerns —not least those shown by the creative industries. The amendment moved by the noble Lord, Lord Fox, does not specify what the precise nature of the mobility framework should look like. The so-called mobility arrangement that Liz Truss has just signed with Switzerland agrees 90 days’ visa-free work a year. If this a sign of what is to come for EU countries, it will still not be enough on its own for much of the sector—which demands longer stays and ease of movement between European countries. This will be—
I am very sorry, but we have a technical problem and nobody else can hear at all. I suggest we adjourn for 15 minutes.
I am very sorry, my Lords, I cannot answer that but I will write to the noble Lord. As far as security issues are concerned, we have made it clear to the EU negotiators that we are open to co-operation on all security measures.
My Lords, we still hear little mention of services from the Government, even though trade in services was on the agenda in the latest round of negotiations. What progress has been made on a deal for services that is advantageous to UK workers?
The deal on services is tied up with the deal on trade, and negotiating those deals will continue throughout the summer.
I thank the noble Baroness, Lady Ritchie. At the moment, I do not see any new legislation coming through. Currently, we are making sure that the welfare system works for the people who most need it during these difficult times. However, we will learn from what has happened and from the changes we have made. The Secretary of State said yesterday that we will take on board the effects of some of the changes. It is possible that we will continue with those changes, but, as we move forward, we will always make sure that the welfare state is fit for purpose and that it looks after the most vulnerable in our society.
My Lords, there is a particular concern in the creative industries that many will not be able to return to work for a long time yet, as theatre, music and other venues will be among the last working environments out of the lockdown on account of the clearly huge difficulties around social distancing. Many of these workers are self-employed. Are there plans to extend the period covering claims for the SEISS, and indeed for the job retention scheme? Otherwise, come the summer, there will again be a significant increase in claims for universal credit.
I thank the noble Earl. I know how much concern he has for this sector. These arrangements will be kept under review the whole time. Obviously, if parts of that sector cannot come back into full production, one assumes that the Government will look favourably on them. However, we have to go step by step. As I said, we are dealing with a new phenomenon and will have to keep all these matters under continual review.