(5 years, 5 months ago)
Lords ChamberTo ask Her Majesty’s Government what announcements the European Union has made regarding continuity arrangements for (1) air travel, (2) haulage, (3) visas, and (4) safety certificates, should the United Kingdom leave the European Union without a deal; and what steps they have taken to give reciprocal assurances.
My Lords, the EU has adopted time-limited regulations covering the aviation market access and safety certificates, as well as road haulage and international rail. The EU has also announced visa-free travel for UK nationals travelling to the EU for short stays after exit. The Government have given reciprocal assurances in each of these four areas, which will provide certainty to businesses and citizens should the UK leave the EU without a deal.
I thank my noble friend for her reply. Since Britain may well leave the EU with no withdrawal agreement, is it not reassuring that these reciprocal mini-deals, and many others, mean that planes will fly, hauliers will operate, Airbus wings will be exported and visa-free travel will continue? Will she also confirm that HMRC plans no extra checks at Dover and will prioritise flow over compliance, while France is so determined not to lose trade to Belgian and Dutch ports that it has installed multiple extra lorry lanes at Calais, located inspection points away from the ports and installed equipment to scan moving trains, so that the likelihood of congestion and delays has vastly diminished, to the obvious disappointment of the Liberal Democrat Benches?
The noble Lord is right in that the mini-deals make any potential exit from the EU without a deal less difficult. But they are, as I have said, time-limited and there will need to be further negotiations when they expire. With regard to Dover, the Government are working to enable cross-channel traffic and goods to continue to move as freely as possible. Government departments have designed customs and additional control arrangements at the UK border, in a way which ensures that goods will be able to flow into and out of the country, and will not be delayed by additional controls. It is true that on the other side of the channel, the French customs authorities have pulled their finger out and installed additional control points. These mean that delays on this side of the channel will be less; however, they will not disappear completely and we therefore cannot expect trade to continue precisely as it did before.
(5 years, 7 months ago)
Lords ChamberI am sorry but I will not give way.
Let me get to the point. There are three advantages if we leave without a deal. No doubt it would be best to have a free trade agreement—
My Lords, I have to agree with the noble Baroness, Lady Hayter. It is the convention that we address the words in the amendment and I am not entirely convinced that the noble Lord is doing that at the moment.
Let me therefore do so. The amendment,
“notes that more than one day is required for this House to have sufficient time to scrutinise the European Union (Withdrawal) (No. 5) Bill”.
I submit that several days are required and that it is worth taking those days, even if it means leaving on WTO terms—because they are quite acceptable. First, we would keep £39 billion. That was the opinion of this House. I trust the committee which concluded that and I would be quite happy to submit to international arbitration, because I certainly would not want to not meet any legal obligations that we have. So £39 billion is a positive.
Secondly, we would end uncertainty.
I am sure Margaret Thatcher’s analysis was correct in her time. However, it is also the case that Britain remains a very strong place for inward investment. Indeed, I think it was Deloitte that earlier this year analysed 3,600 projects that have generated £140 billion of capital for our country—that has obviously come from all over the world. The UK is still an attractive place for inward investment, and we hope it will continue to be.
It is always sad when people lose their jobs, whatever the reasons, but let us get some facts straight, including those studiously ignored by the Opposition Benches. First, Toyota is going ahead with producing the most popular model of car in the world in this country. That is good news ignored by Liberal and Labour Benches. Secondly, Honda is also closing down its factory in Turkey, which is within the customs union, showing that customs unions are not a magic solution to all our problems. Thirdly, it is worth putting on the record that Honda had the lowest value added in this country: 58% of the value of its Civic is imported from Japan, 26% is made in the UK and only 16% of its components are imported from the rest of Europe. Does that not show that you can run a just-in-time production line with the bulk of your components coming through customs procedures, as Honda has been doing?
My noble friend makes a number of interesting points. Certainly, the plant in Turkey is also being closed by Honda as it focuses its operating facilities in Japan and the US. Sadly, there will also be 1,100 job losses in Turkey. We have to make sure that if customs processes are in place, they are as frictionless as possible. Some interesting facts—I found them interesting anyway—are that the Honda plant has to have 2 million components delivered every single day in 350 lorries and that it has one hour’s worth of components lineside. Noble Lords will therefore agree that making sure that lorries can get in and out of plants and across borders is important.