Oral Answers to Questions

Andy McDonald Excerpts

Thursday 14th September 2023 Commons Chamber

[Ms Ghani]

I am responsible for supply chains and critical minerals too; several months ago, I refreshed our critical minerals strategy. We are looking at how we ensure that we are building resilience and ensuring that our supply chains are stable.

I am also working with a number of industry representatives to put in place an import supply chain strategy as well. We know that there are kinks in supply chains and that there are issues of economic coercion around the world. We want to ensure that we have stable supply chains to protect our advanced manufacturing sector. [Interruption.] From a sedentary position, my right hon. Friend the Secretary of State points out that I am also the sanctions Minister. We are ensuring that that work is now co-ordinated, not only across Whitehall but internationally.

[Andy McDonald (Middlesbrough) (Lab)]

Those of us on the Business and Trade Committee are very much aware of the sterling work done by officials in furtherance of the trade deal with India. However, in the revelation at the G20 summit of the Partnership for Global Infrastructure Investment—the counter to China’s belt and road project through a US-backed trade corridor to speed up links between Europe, the middle east and India—there was no mention of the UK. Did our Government decline to be involved or were we not invited?

[Ms Ghani]

I was in front of the Select Committee; that session would have been afterwards. I have just been informed that the Prime Minister is very much focused on securing a trade deal and on the other details that the hon. Gentleman raised. Because it is a Select Committee issue, I will make sure that he gets all the details in writing.

--- Later in debate ---

[Kemi Badenoch]

The hon. Gentleman is right—there is one thing that I find regrettable, and it is the fact that he continues to bang on and on about this even after the rest of the world has moved on post the referendum. The fact is that we have left the EU and we are not going back into it—certainly not under the terms that would require us to do so. He should be focusing on the benefits of Brexit, such as having more control over our laws, our borders and our money, as well as being able to deregulate, including through our smarter regulation programme. If he looked at that, there might be opportunities he could deliver for the people of Scotland.

[Andy McDonald (Middlesbrough) (Lab)]

As the UK automotive industry wrestles with the looming increase in the rules of origin thresholds, European Commission President Ursula von der Leyen has just announced a probe into the flood of cheaper Chinese electric cars coming into the market. Although there has undoubtedly been much for the UK to welcome, with announcements from Jaguar Land Rover and BMW, what additional measures are the Government taking to ameliorate the impact of cheaper and heavily subsidised Chinese imports?

[Kemi Badenoch]

That is an excellent question, because it raises something fundamental. The transition to net zero will change the nature of the UK supply chain and, as I said earlier this week, China poses a systemic challenge here. The path to net zero creates a risk of even greater reliance on China, especially when it comes to the battery manufacturing needed for zero emission vehicles. We cannot be naive about that. That is why I am working hard to ensure not only that business competitiveness is at the heart of our transition, but that British national interests come first. We cannot depend on a single country. We must protect our national security, so we are working with like-minded allies. My hon. Friend the Minister for Industry and Economic Security has spoken about our critical minerals strategy and we are working to diversify and build those supply chains. That is what the Atlantic declaration, which I mentioned earlier, is also about. We are very aware of this point, but I think it is important to reinforce it.