European Union (Notification of Withdrawal) Bill

Debate between Lord Lilley and Albert Owen

3rd reading: House of Commons & Committee: 3rd sitting: House of Commons & Report stage: House of Commons
Wednesday 8th February 2017 Commons Chamber

[Mr Lilley]

It is already 15% more competitive than it was a year ago, which dwarfs the average of 4%. We can, of course, give processing relief—that is, remit tariffs—on components that are part of processing and manufacturing chains and that will be re-exported. We will get £12.3 billion of revenues, if we apply the common external tariff to imports from the EU, but our exporters will pay some £6.5 billion of tariffs on their exports to the EU, so we would have ample money to compensate any exporters who were not sufficiently advantaged by a 15% devaluation, and still have billions of pounds to reduce general taxation. We can also, of course, negotiate free trade agreements with the rest of the world and slash unilaterally the tariffs that we currently charge on food, clothing and other things that we do not produce but that mean that our consumers have to pay higher prices to subsidise inefficient producers elsewhere in the EU, instead of importing from, say, the less-developed countries from which we should naturally be importing.

There are many other advantages, but as you have urged brevity, Ms Engel, I will not tell the Committee what they are but hold them back for a future occasion.

[Albert Owen]

It is always interesting to follow the right hon. Member for Hitchin and Harpenden (Mr Lilley). I will concentrate my brief remarks on Euratom. As the Minister and the Committee will know, its principal goals are the promotion of research and the dissemination of information; the establishment of safety standards; and facilitating investment. It also governs the supply of ore and nuclear fuels.

Euratom establishes a nuclear common market. The Eurosceptics always used to say, “We want to be in the common market,” yet their decision is to pull out of it. I believe that the Government want to retain the principal goals, and they stated on the publication of the Bill that we are leaving Euratom only because of legally binding arrangements, but that is debatable—I have seen conflicting legal advice—and cynics suggest that it is more to do with the European Court of Justice.

The Government say that they support Euratom and want us to continue both to co-operate and to have the highest standards. The hon. Member for Wells (James Heappey) is absolutely right that we are world leaders on nuclear standards, but in co-operation with other countries, which is why it is so important to keep Euratom, the umbrella body.

The purpose of new clause 192, which is supported by the industry and industry bodies, is to continue co-operation and have greater certainty. I have raised this matter with the Secretary of State for Business, Energy and Industrial Strategy, who was very courteous. He said he had met the industry and was sure that we will be able to continue outside Euratom, but that is not what the industry in general believes. The hon. Member for Henley (John Howell) said that the management of the JET energy research programme in Oxfordshire did not want the proposal, but the workforce have lobbied me in great numbers through the union, saying that there are risks if we pull out.

Access to information and data sharing are important. We will be way behind if we pull out. Companies in the industry need to plan in advance; they need that certainty. Euratom deals with nuclear co-operation with the United States. It is ironic that although we are talking about coming out of Europe and trading with the United States, we need to be part of Euratom to get agreements to move fuels to the US, Japan, Canada and other countries. Renegotiating will take an awful long time.

Ideally, the Minister would retain the UK’s membership of Euratom even if we left the European Union. If the Government proceed to give notice to withdraw, we must have an agreement on transitional arrangements. We must also have sufficient time to negotiate and complete new arrangements with EU states and third countries such as the US, Japan and Canada. If in two years an agreement cannot be reached, the UK should remain a member. Our standing in the nuclear industry is at stake, as are jobs and our reputation as a major country in nuclear research. I hope that the Minister takes that on board.