Exiting the European Union

Debate between Alex Cunningham and Lucy Powell

Tuesday 24th November 2020 Commons Chamber

[Lucy Powell]

Absolutely. My right hon. Friend makes an excellent point, and that is why this debate is so important. It coincides with worrying rumours—I hear that they are rumours, but rumours can cause a great deal of worry—about the future of the Nissan car plant in Sunderland.

[Alex Cunningham (Stockton North) (Lab)]

The shadow Minister took the words from my lips. Nissan is in the north-east, and although we are 30 miles away, businesses in my constituency and throughout Teesside rely on it to buy their products. Within the last few days we have heard Nissan say that if we do not get a good enough deal, it will be off. That must be a terrible blow to any region, but to the north-east, where unemployment is nearly double the national average, it simply does not wash.

[Lucy Powell]

My hon. Friend makes an excellent point, and those are the real risks that we currently face. There is real uncertainty around the deal. Many of the previous commitments made are now undermined, and that will have a devastating impact on particular sectors, such as the automotive industry and the aerospace industry—perhaps my hon. Friend the Member for City of Chester (Christian Matheson) wants to come in on that. Both those sectors are particularly powerful when it comes to the so-called levelling-up agenda, and I worry about that.

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[Lucy Powell]

Absolutely. This agenda could not come at a more critical time, because these same sectors and industries have been left on their knees as a result of covid-19. They just cannot cope with all these things coming at once.

[Alex Cunningham]

My hon. Friend will realise that businesses from Nissan to the chemicals industry on Teesside rely on a just-in-time supply chain. They need things to be crossing borders almost daily in order to complete the process of manufacturing goods. If there is any further delay in that process, some of these companies will say, “Well, we may as well manufacture in Spain.”

[Lucy Powell]

My hon. Friend is absolutely right. That is one of the reasons we wanted to support this statutory instrument today. Businesses have no resilience left anymore. Any money or time that they set aside for end-of-transition preparations and so on has all disappeared because of the coronavirus pandemic and the ensuing economic crisis.

It is important to remind the House of the things that the Prime Minister promised as the negotiations with Brussels enter their endgame, because I really am not sure that the results are going to match the initial promise that we were given at the election last year. A deal that fails to deliver on the commitments made in the political declaration and to the British people at the general election risks making life considerably harder for jobs, businesses and communities already grappling with the economic challenges of covid-19, as so many Members have already raised.

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[Lucy Powell]

Thank you very much, Madam Deputy Speaker. Of course, my hon. Friend the Member for Rhondda (Chris Bryant) is very good at writing books. He has one out—I think for Christmas, actually—at the moment, but the book that we are all waiting for is his diaries. I am not sure when they will be published, but maybe they will be a Christmas bumper when they do.

 As the Minister said briefly in her opening remarks, this statutory instrument will end the application in the UK of the rights derived from articles 34 to 36 of the treaty on the functioning of the European Union. The removal of these provisions will ensure that there is no barrier to divergence from EU rules should the Government choose to diverge. As the memorandum that accompanies the statutory instrument sets out, the Government plan for the UK to have its own regulatory regime for goods after the end of the implementation period.

[Alex Cunningham]

One of the things that will be covered by that regime is the movement of food, which does not just go from this country to Europe but comes in the opposite direction as well. Many businesses in this country are extremely worried that food for which there might be a lead time of three weeks could end up sitting on the docks for hours on end if we do not get the agreement that we need.

[Lucy Powell]

My hon. Friend makes an important point. I hope the Minister has taken note of that and that we can hear about it when she responds, because it is especially important at this time of year—not to keep on with the Christmas puns, Madam Deputy Speaker.

If the Minister is allowed to, will she update us on what the EU-UK trade regime will look like and what rights and protections will be in place at the end of the implementation period? When will we get the details? More importantly, will businesses have plenty of time to prepare for the regime’s implementation? Ministers have repeatedly said that in many policy areas the rights and protections that we have enjoyed inside the EU will be maintained and improved on when we are outside the EU. Will the Minister set out where she thinks we might diverge from EU standards and requirements in future? How will she ensure that divergence benefits British businesses, instead of putting in place new barriers to trade that could cost them dear?

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[Lucy Powell]

My hon. Friend makes a powerful point. Perhaps next time he goes on a delegation there he can see whether I want to join them, as the shadow business Minister. It sounds like a good trip, and I am partial to a bit of calamari, so I would enjoy that.

This statutory instrument relates not just to UK-EU trade, but to the requirement for a new framework for UK-wide trade, as we have been debating through the United Kingdom Internal Market Bill—now in the other place—because current treaty provisions also govern trade in goods across the UK. Will the Minister update us on where these issues are now up to, as we need to know before stripping away all the trade regulations that currently apply across the UK? As has been raised, any divergence needs to be agreed with the devolved Administrations, and that is why we are hoping that common standards for trading agreements will be agreed via the common frameworks put on a statutory basis. Ministers herald this approach yet refuse to put them on a statutory footing. There have been many long discussions on this in the Chamber and in the other place. The Government recently lost votes on this aspect of the internal market Bill, so we are hoping that the Government will accept these amendments when they return. Can the Minister confirm that?

[Alex Cunningham]

My hon. Friend posed the question of where there is likely to be divergence. We know already that there has been divergence on food standards, paving the way for importing chlorinated chicken, hormone-fed beef and all manner of things. Those goods are going to end up in the stomachs of the poor people—the people on low incomes—in my constituency and in my hon. Friend’s. Does she not agree that we need to tighten this up and make sure that all our people are protected with proper standards and proper regulations?

[Lucy Powell]

My hon. Friend is absolutely right. That is why it is such an important issue, and we really are hoping and expecting that the Minister will confirm today that the Government will accept the amendments on this that were passed in the other place, because it is about how we as a country are coming to an agreement about standards. I am sure that these issues will be raised later in the debate.

The Government must respect the devolution settlement and work collaboratively, in good faith, with the devolved Administrations to build that strong and thriving internal market with common standards underpinning it. Not doing so would threaten our precious Union by putting rocket boosters under the campaign for independence in Scotland. I know that the Prime Minister is very keen to talk about Christmas at the moment, but he seems to be giving the Scottish First Minister all her Christmases at once by his constant undermining of devolution recently. He seems to have made another blunder on that recently, propelling her campaign for Scottish independence by, as I said, putting rocket boosters under it.

On that point, I wonder whether the Minister would also explain to us the status of this statutory instrument. It is my understanding that her colleague, the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Stratford-on-Avon (Nadhim Zahawi), wrote to his counterparts in the devolved Administrations to seek their consent for him to lay this statutory instrument, which she is taking on his behalf, as some goods potentially affected by this instrument fall under devolved competence. I understand that consent has been received from the Welsh Government, but not yet from the Scottish Government—I do not know whether the hon. SNP spokesman wants to come in on this. I am not sure whether we can lay and agree to this statutory instrument today on that basis. What happens if the Scottish Government do not consent to it but Parliament already has? I do not know whether anyone knows the answer to that or if the Minister wants to rise to clarify that.