Trade (Australia and New Zealand) Bill

Debate between Angus Brendan MacNeil and Sammy Wilson

2nd reading
Tuesday 6th September 2022 Commons Chamber

[Angus Brendan MacNeil]

I thank my colleague very much for that.

I was reminded of something by what the hon. Member for Mole Valley said about the size of farming in New Zealand and the Scots exiles. I met a man named Andrew Morrison, who is from his part of the world, but originally from mine—his ancestors came from my constituency—and we talked about sheep, because he had sheep. I told him that I had 32 to 33 breeding ewes, depending on the year. He looked at me and said that he had 26, and there was a big pause. My chest was going out during the pause but, unfortunately, he went on to say, “Thousand”. So the hon. Gentleman is indeed right to say that the scale of agricultural production is massively different there.

We are here today to talk about these trade agreements and the legislation that is going forward. Trade agreements, on the whole, are to be welcomed. They are clawing back GDP that was lost by Brexit, although the Government figures do not say that. There are many nuances, and I will come to those by the end of my remarks, but I wish to start with the broad brush by asking why we are doing this. Surely we are doing this for our economic benefit and gain. We have then to set that in the context that the Government are doing it because Brexit is a damaging event to GDP, by up to about 5%.

[Sammy Wilson (East Antrim) (DUP)]

Does the hon. Gentleman not accept that the reason we are now doing separate trade agreements, especially with the south-east Asian part of the world, a lot of developing countries and countries such as Australia and New Zealand, is that they are the parts of the world that are growing and where markets are going to expand, while Europe is in stagnation? Having the freedom to do that and be released from the EU is going to be good for GDP, business and employment in the UK.

[Angus Brendan MacNeil]

I hear exactly what the right hon. Gentleman says, and he is right to an extent. However, let us suppose I were to give him £1 this year and £1.50 next year, and ask him how his income from the Member for the hon. Member for Na h-Eileanan an Iar had changed. He could say that it had grown by a staggering 50%”, but it would have grown by only 50p. When you are starting with something very small and you say that the percentage is going to be very big as a result of the growth, you still have something very small at the end of it. We should bear that in mind.

I return to the point about the Brexit damage of 5% of GDP and the effect of this Australian trade deal, depending on which type of modelling we use. The first model gave us a 0.02% gain—that was on the Armington trade theory spectrum, which all members of the Committee know just like that. When we moved to the Melitz-style spectrum, we were given a figure of 0.08%, which represents growth of 400%. That is a fantastic bit of growth, but this was still only 0.08%. If Brexit is 5%, this is like saying, “I am losing £500 but the Australian trade deal is taking in £2, if I am using the pessimistic option, or £8, if I am using the optimistic option.” That still leaves the UK economy as a whole £498 to £492 out of pocket by this entire transaction. The joy and boosterism that comes from some parts of the former Government, at least, should be seen in that context. If we add in all the other trade deals—the American trade deal represents 0.2% of GDP, the New Zealand one that we are considering today represents about 0.1 % or 0.2% of GDP and the CPTPP represents about 0.08% of GDP—we might find ourselves up around the £40 mark. It is a bit like going to the races with £500 and coming back with 40 quid. That is basically what is happening here.

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[Angus Brendan MacNeil]

Absolutely. This is the tension that there has always been in trade policy over the years—do you abandon your countryside and rural places? I use stark words deliberately, but it is a sliding scale between various points. Political judgments are made for various reasons, and people will come down on one side or the other. I do not belittle what the hon. Gentleman says, and is important that we recognise that spectrum. I am sure that he can argue the other way as well if he chooses. He is presumably making a devil’s advocate point or giving perhaps a strongly held viewpoint. It is a good point, but it is a point of debate. That is what we are here to do—to enlighten and illuminate that debate.

[Sammy Wilson]

rose—

[Angus Brendan MacNeil]

I will make a little progress and then come back to the right hon. Gentleman.

The point I was making earlier was that the UK now finds itself in the position of being outside the European Union, of talking about the comprehensive and progressive agreement for trans-Pacific partnership, which we will be debating at tomorrow’s Committee, and of not being able to export anything anywhere in the world without masses of paperwork. The proverbial prawn sandwich or the chicken leg cannot be exported without an equivalent weight of paper accompanying it. We know the difficulties that we have in sending that to the European Union, and we are talking about CPTPP and trade agreements. The reality is that it will still be easier to send stuff to the European Union under the EU–UK Trade and Cooperation Agreement than it will be under all those other trade agreements, so let us put trade agreements into some kind of context. They are not a panacea. They are not a replacement for the European Union. What we have done is raise our fences to the European Union to a certain height and lowered some of our fences to other countries, although they may still be higher or even at the same height as those to the European Union, but the global point is that exporters from the UK are finding it difficult to send stuff anywhere. Anything that has to go anywhere requires paper, admin or tariffs. That is a fact for the United Kingdom and a fact that is often missed in our understanding of trade.

[Sammy Wilson]

The hon. Gentleman has rightly said that there are tensions between producers in the UK, who may well find themselves with greater competition as a result of trade deals, but that there are also benefits to consumers, who, of course, far outweigh the number of producers that might be affected and who will benefit from cheaper prices. Will he not also accept that we can help our producers be more competitive, especially now that we are out of the EU, by reducing their costs and removing some of the costly and unnecessary regulations, which push those costs up and make it more difficult for those producers to compete anyway?

[Angus Brendan MacNeil]

I can kind of see a bit of what the right hon. Gentleman says. For example, perhaps we should not have to stick ear tags on lambs before sending them to market. At one time, we did not have that hassle of having to put a 50 pence tag in a lamb’s ear, but then consumers said that they wanted traceability; they wanted to know where the lambs came from. We then have a debate between this regulation that is costly to the farmer/crofter and the consumer wanting a bit of traceability. Again, there is a political decision to be made. Do we want to get rid of tags in sheep’s ears, for instance—that is the easiest example that I can think of. That is one of the problems of getting rid of regulations. Which regulations do we want to get rid of? That is a legitimate point of debate, but if we get rid of our regulations, we do have to understand what the impact will be, and who does not want that regulation to be got rid of. Certainly, getting rid of ear tags in sheep—if anybody is listening—would be a help, because they often get lost in the fences. However, I do not think anybody will be listening and we will still have ear tags in our sheep to deal with.

The shadow International Trade Secretary mentioned that, in the early days, there had been a lot of headline chasing. When Brexit was being done, the Government were scrambling around for ideas. Freeports was one such idea—let’s have freeports, they said—but GDP was unquantifiable, whereas, as I have said, the Government have quantified the GDP of Brexit. The Government then alighted on free trade agreements. I have said this often—members of the International Trade Committee are probably ready to fall asleep at this point—but it reminds me of Neville Chamberlain coming back from Munich talking about peace in our time. This is the equivalent; it is trade deals in our time. It is not about what they mean for the economy, but about them looking quite good.

A former Trade Minister—I will not mention his name—was telling me that he had a bit of boosterism from the former Prime Minister. He was told to get on planes and to sign these bits of paper. He was very, very positive. If it was a car he was selling, I would have bought it. When I asked him what was under the bonnet—or what was the GDP gain from this trade deal—he did not know. That goes back to the point about there being no strategy; it is very concerning that he does not know what his trade decisions are doing for the economy. Unfortunately, with all the difficulty and fluff, the economic gain of trade deals is not being looked at, which is disappointing. Certainly, Brexit has left the GDP of the UK weaker, and at a time when we face a cost of living crisis, things are more expensive and people have less money in their pockets.

The final point I want to touch on is food security and what is happening around the antipodean sale of meats. They will say that they do not fill their quota at the moment, but what they will be enabled to do is to fill it more than the European Union’s free trade deal, which is more restrictive than the UK’s—the UK’s is one of the most relaxed, or lax, trade deals. The best cuts can be sent, which helps them with what they call carcase efficiency, with certain parts sent to specific parts of the world, meaning they can take the top part of the market away quite effectively. As I have said, Professor Lorand Bartels found this the most liberal case that he could think of in the world of anybody opening up their food area.

The deal also enables what I would describe as a parachute market for Australia and New Zealand. If something goes wrong in another market, they now have somewhere else to put a big quantity into. That might have an effect in future of displacing and damaging production in the UK. If the current UK is used as a parachute market for a number of years and then the other market is re-established, we cannot turn on production as quickly as we can turn it off. That is a big problem.

I have mentioned that CPTPP will not be like the European Union. It is not a replacement; it is a smaller GDP and it will be more difficult still to sell into that market. In the CPTPP, I do not think that access into one country will be access into all countries, as it is for the European Union, although that will be clarified tomorrow for those who want to tune in to the International Trade Committee.

We have a situation where the Australians cannot believe they have done so well. New Zealand television is utterly amazed and asking, “How come it is so easy?”. It is because the UK Government have been seen coming. People know they are desperate to get into CPTPP and they think that if they get these trade agreements done, that will happen. That goes back to the point made by the hon. Member for Mole Valley (Sir Paul Beresford) that the antipodeans were furious about the changes in the ’70s; this time perhaps they feel collectively that they have got one over the Poms, as they might describe them.

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[Angus Brendan MacNeil]

I am grateful to the hon. Gentleman. In Scotland “jags” means something that goes into your arm, usually against covid—I think they are called jabs down here—but I think he means the Jaguar car. Of course it is in Australia’s power to buy the Jaguar car; it is then Australia that puts the tariff on the cars coming in. If Australians are moaning that they cannot buy Jaguar cars because of the tariffs, they need to see the Australian Government, who, despite what they say, are not producing any cars and whose very free and open market is not as free and open a market as they let on.

[Sammy Wilson]

To give the hon. Gentleman a piece of good news, adjacent to my constituency there are already 150 new jobs making drilling machines for the mining industry exclusively in Australia. There are already benefits showing through in the manufacturing of goods and 150 people adjacent to my constituency are employed in a factory and enjoying those benefits.

[Angus Brendan MacNeil]

That is fantastic news, and it has happened before the free trade agreement. That just goes to show that the fantastic people of Northern Ireland do not need Westminster to give them a free trade agreement.

I am coming to the end of my remarks. I will give several views to the Chamber on the vote tonight. This trade deal is globally good for the UK, as the figures show, but its level of goodness is very small compared with the badness of the Brexit debacle. Is it good for Scotland? The Scottish Government do not seem to think so. They were engaged with perhaps the way that the umbrella engages with the rain: more with disdain than any sort of welcome.

When it comes to fish and agriculture, we know that Brexit has been most damaging for the highlands and islands of Scotland, including my constituency. The Government cannot break down the effect of this agreement, but it looks like it will also be damaging. That means we have two events that are locally damaging. I am here as a constituency MP. I can weigh up the arguments as Chair of the Committee, but I am mindful that I vote as a constituency MP. All of Brexit—the entire process—has been economically damaging, but the final upshot of this deal is that in years to come, as we move towards independence, that damage will be used as an argument against Scotland being independent. It is a very disappointing state of affairs that this deliberate policy—chosen in Westminster—will do that to us, so we will not be listening to arguments like that in the future.

It is disappointing that this debate was not done properly, and that Members did not get to put their tuppence worth and argue the points that we have debated with the hon. Member for Wyre Forest (Mark Garnier) and my good friend from Northern Ireland, the right hon. Member for East Antrim (Sammy Wilson), because there are legitimate things to consider, to ponder and to change our minds about so that we can get a good—and a better—deal. Some people would say that the European Union has struck that better deal. Had we remained in the European Union, we would not have lost the 5% of GDP. We may well have got the GDP gains anyway from the trade deals that the European Union has just done with those two countries. The upshot might well be that there has been no gain whatever in these trade deals, because they would have come had we not decided to damage the beer producers and exporters of Kent and many others places that have been trading, as has been done.

Northern Ireland Protocol Bill

Debate between Angus Brendan MacNeil and Sammy Wilson

2nd reading
Monday 27th June 2022 Commons Chamber

[Sammy Wilson]

The people of Northern Ireland recently spoke in an election, and the Unionist population made it quite clear that they will not accept the protocol.

[Angus Brendan MacNeil]

On a point of order, Mr Deputy Speaker. I am grateful to the right hon. Member for East Antrim (Sammy Wilson) for setting the parliamentary precedent that we are now allowed to refer to the House downbye as the “House of toffs.” I think that is a rather good suggestion.

Department for Exiting the European Union

Debate between Angus Brendan MacNeil and Sammy Wilson

Monday 26th February 2018 Commons Chamber

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

Thank you for calling me to speak, Madam Deputy Speaker.

Brexit is an area where it is quite hard to estimate. Brexit has been mis-served by the media. It has been played out in a soap opera of personalities, parliamentary arithmetic and party political advantage, when in fact it should be played out under the lens of trade, the economy and what it will mean. When the Prime Minister says that our best days are in front of us, that is a news story, but if vets say that there will be 325% more checks at borders because of this, that is not a news story. This is a costly step that is going to be taken, over and above anything else we might need at ports in years to come. Clearly, to even a very untrained eye, Brexit is going to be costly, and anybody who does not think that is in severe denial.

Maybe the best comment that I have heard about this was not made by Peston, Marr, Andrew Neil or any of our so-called professional media. It came from “The Mash Report”, a current affairs comedy programme, and said that Brexiteers have to tell us now what Brexit is, not what it is not, because they are very strong at telling us what Brexit is not.

At least we know one thing that Brexit will be. We have to be grateful for the efforts of the Secretary of State for Exiting the European Union and his civil servants for this: we know that Brexit will not be a “Mad Max” dystopia. It may be a dystopia, but it certainly will not be a “Mad Max” dystopia.

We know, because it was leaked from the UK Government and has been verified and cross-checked by the Scottish Government and the Irish Government, that staying in the customs union and single market is a 2% hit to the UK economy. That is a strong estimate of the hit. A free trade agreement is a 5% hit, and WTO rules is an 8% hit.

[Sammy Wilson (East Antrim) (DUP)]

Maybe the hon. Gentleman has not had the opportunity to see the report, but it is quite clear that none of these figures should be treated as forecasts or quoted in isolation. The report is full of caveats showing that many things influence those figures, and therefore they are really rough guides to compare one situation with another but should never be used as forecasts.

[Angus Brendan MacNeil]

The hon. Gentleman makes a case for all reports, but the report is the best estimate we have to go with. The report was kept secret for a long time, but it seems that it chimed with more than one person when it had to be leaked in the end.

It has emerged that the UK Government have decided on the middle road. They are looking for a free trade agreement, which is the option of a 5% to 6% hit on GDP—those are the Government’s own estimates—although some of the Tory party would go for the 8% hit of WTO rules. They have made political choices with severe economic consequences that they probably will not personally have to face. In a funny, humorous and ironic twist, they expect the European Union not to respond in kind. They expect the European Union to react with complete economic rationale, even though their politics are ones of irrational economic actions.

As we know, the EU and the UK have already taken actions based on principles, for a higher purpose, and that was in Crimea because of Russia’s annexation of it. The EU’s principle of the four freedoms means that it will take a smaller hit than the UK and a smaller hit than they all took with Crimea, or about the same. The point is that, in the bigger picture, the European Union is going to lose effectively about a toenail here, while the UK debates how many bullets are to go through its feet. That is the difference in the damage that will be done.

From the principal parties, we have had slogans. The slogan from the ruling Conservative party has been the illuminating “Brexit means Brexit”, as well as “It’s going to be a Brexit for Britain” and “It’s going to be the best trade deal possible”. We can look at this as an analogy. The Government have crashed their Rolls-Royce and are going down the second-hand car shop looking for the best second-hand car possible. Will it be a second-hand car that is 2% less good, 5% less good or 8% less good than the one they currently have?

On the other hand, we have the principal Opposition party, Labour, talking about a Brexit for jobs and a Brexit for the people. Labour—or at least its leader—has thrown another variable into the works: it want a customs union. I do not see an estimate for that either. What does that mean? If hon. Members are familiar with national newspapers that run fantasy football activities for statheads and football fans, they will know that readers can pick and choose players from a variety of teams and compose their own team based on that fantasy—perhaps called Team Corbyn; I do not know—but it is notable that this need not bear any relation to the reality of football other than the statistics, and even the players do not need to know that they are in somebody’s fantasy football team. Similarly, what is now emerging is a fantasy customs union—it bears no relation to the views of the 27 other partner countries—and they can pick and choose elements from the newspapers to their heart’s content.

The estimates in the leaked statistics show that this option—it is not the customs union or the single market—will lead to a hit of between 2% and 5% to 6% to the UK economy. The current Labour leadership should be very clear about that.

European Union (Notification of Withdrawal) Bill

Debate between Angus Brendan MacNeil and Sammy Wilson

Tuesday 31st January 2017 Commons Chamber

[Sammy Wilson]

Of course, it depends on how you dress up that request.

The Government have made it clear that they want to hear about the concerns and issues that affect not just Northern Ireland, Scotland and Wales, but other regions of England, and particular industries as well. Indeed, they have set up mechanisms to do so. There are numerous conversations and discussions between officials within Departments. There is the Joint Ministerial Committee where politicians from the different countries that make up the United Kingdom can express their views. There are ministerial meetings. Not only that, but in the case of Northern Ireland the Government have made a commitment—

[Mr MacNeil]

rose—

[Sammy Wilson]

No, I will not give way again.

The Government have had very good contacts with the Irish Republic because there are issues between the Republic of Ireland and Northern Ireland.

For those reasons, we will be voting in support of the outcome of the referendum. I accept that some people in this House probably do have the right to be exempt from looking at what the people of the United Kingdom said and voting against it, because they were opposed to a referendum. However, many in this House who will be voting against the Bill tomorrow evening will be saying, “We voted for a referendum that gave people in the United Kingdom a right to express a view that will be binding, and now we simply disregard that.” They do not have a right to do that. That is where the line should be drawn.

The former leader of the Liberal Democrats, the right hon. Member for Sheffield, Hallam (Mr Clegg), said that people did not know what they were voting for. Well, there is no excuse for people in this House not knowing what they are voting for now, because the Prime Minister has made that very clear in 6,000 words. During the referendum campaign, the people of the United Kingdom knew what they were voting for. Those who were voting to remain tried to scare the devil out of them. They told them that all kinds of horrors were going to beset them—that within a couple of days they would be eating dry bread and having to drink water, and losing their jobs—and still they voted to leave. Voting to leave meant that if we were going to have the freedom to make our own laws, we could not be part of the single market, because being part of the single market meant that somebody else made the laws. When people voted to leave, they knew they were voting to leave the customs union, because our future rests with those parts of the globe where there are expanding economies, not the part where, because of restrictive policies, the economy is contracting. People knew what they were voting for.

It has been argued that we should be thinking of the future of young people. I think that many young people listening to the right hon. Member for Sheffield, Hallam would not believe what he was saying. This is a man who promised, “You will have fee-free education”, and then imposed fees on them. This is a man who voted, and whose party voted, for greater Government debt that will be paid for by young people out of their taxes in future. We would have found that had we remained in the EU as well.

Tax Credits

Debate between Angus Brendan MacNeil and Sammy Wilson

Thursday 29th October 2015 Commons Chamber

[Sammy Wilson]

That issue will be addressed if we deal with it as I have suggested, by which I mean that the safety net is not removed until the issue of wages has been dealt with. That is the first important principle.

The second proposal is that we must be sure that we have identified all the groups that are likely to be affected during the transition. The one group I have mentioned time and again in debates includes those who will not be affected by the national living wage—the under 25s. Many of them will have families. If we set the pattern that work does not pay at the very beginning of their working lives, they will stay in that pattern. Therefore, it is important that we address the needs of that group.

Then there are the families with children. On that point, I would appreciate some answer from the Minister on the childcare allowance and the extra childcare funding that is available. It is a devolved issue in Northern Ireland, but will there be a Barnett consequential so that the same arrangements could be put in place as the Chancellor has suggested for England and Wales?

Thirdly, there must be recognition that different sectors in different regions are at different points in the cycle. There are some places where the labour market is buoyant, and where profits are increasing. In those sectors and regions, an increase in the national living wage can be afforded. However, there are other sectors and other regions where that may not be the case. There is no point in simply treating everywhere as if it were the south-east of England and the IT or banking industry and then imposing burdens on them. Small businesses and retail sectors have been identified here today. It is important that cognisance is given to the fact that there is uneven performance across the economy.

[Mr MacNeil]

We must also pay some attention to the larger picture. In the United States of America, for example, the top 0.1% have as much wealth as the bottom 90% and the gains of productivity go to those at the tops of firms, who get 350 times what the average worker in the firm can get. Certain people are taking the most and leaving the crumbs for everyone else.

[Sammy Wilson]

That brings me to my last point, which is how we fund all this. It is a reasonable question, and the Chancellor and the Prime Minister ask it all the time. Are we simply going to keep on borrowing or should we find other ways to fund it? There is one thing that I do know. I had the pleasure of being the Finance Minister in Northern Ireland for four or five years—I cannot count, which was not a help. In my first year as Finance Minister, the previous Government took over and that July 5% was taken off our budget, three months into the financial year. It was still possible to make the changes required because necessity required that. We are now talking about two thirds of 1% of the total UK budget that has to be found. No one can tell me that with planning that is not possible. Many suggestions have been made and different people will have different political priorities for the cuts, but I believe that it is doable if we have the will.

My fear is that because the Government are cocky at the moment and because the Opposition are perhaps not in the shape that they should be—I will not start making points about that, but they are not in the best shape—the temptation will be to use that disarray to try to force things through. We have heard time and again that the Government have a majority for their measures in the House of Commons. That does not matter. The question is whether their actions will be perceived as fair. If they are not, they will not have support across the country, regardless of what happens here in the House of Commons. My fear is that the Government, which taunts Labour time and again with being unelectable, might well annoy and anger people so much that the unelectable become electable. People can judge whether that is a good or a bad thing, but if the process of making that happen means that the strivers in society suffer or that the low paid workers suffer, I do not believe that it is a price worth paying.

Finance Bill

Debate between Angus Brendan MacNeil and Sammy Wilson

Tuesday 21st July 2015 Commons Chamber

[Sammy Wilson (East Antrim) (DUP)]

As a party that believes in low taxation, we welcome a number of measures in the Bill, including those to take more people out of taxation and allow them to hold on to the money they earn. The changes to tax thresholds, the reduction in corporation tax and the tax allowances to encourage businesses to invest in capital or research and development will contribute to the health of the economy and help to close the productivity gap that concerns Members across the House. We will not be voting for the reasoned amendment because we believe there are positive measures in the Bill and because we disagree with some aspects of the amendment anyway.

We do, however, have a few concerns—we discussed some of them yesterday in the welfare reform debate—including about the impact of removing tax credits from people in low-paid jobs and the Government’s misplaced faith in their being compensated by the rise in the national living wage. Rather than making work pay, the measure will act as a disincentive to work for many people, especially young people, to whom the national living wage will not apply and for whom the reduction in tax credits will result in lower incomes. The Government cannot ignore that aspect of their policies.

The hon. Member for Dudley South (Mike Wood) was optimistic that the gap would be filled by businesses volunteering to pay the national living wage to those not officially covered by it. I sometimes hear Government Members talking about the pressures on small businesses. We cannot have it both ways. On the one hand, we talk about businesses being under pressure and requiring help, including with taxation and business rates, but on the other hand, we say, “By the way, they will volunteer to pay higher wages to those not officially covered by the national living wage.” We cannot gloss over the impact of these changes. I believe the Government are being optimistic about the impact. If it backfires—if many people find themselves less well off in work and work therefore becomes less attractive—one of the key policy objectives of the Budget will not be achieved.

That point is particularly pertinent to places such as Northern Ireland, where, because of low productivity in industry, the preponderance of small businesses and other structural factors, a high proportion of people are employed in low-wage businesses and rely on tax credits to bring them up to a reasonable standard of living.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

I am grateful to the hon. Gentleman for giving way. While we are not political friends, we are at least friendly. He started by saying he was in favour of people keeping more of their tax, but then bemoaned the loss of tax credits. Will the loss of tax credits not enable a lack of redistribution by acting as a cover for the rich to keep more of their money and as further camouflage for inequality, especially with inheritance tax being cut for the very wealthy while the poor are losing out? When we say we want people to keep more of what they earn, we have to be sure what we mean. Quite often it is a cover for growing inequality and an opportunity for the rich to keep even more for themselves.

[Sammy Wilson]

Of course, some of the measures in the Bill will take people out of tax altogether, which I am sure the hon. Gentleman will welcome, and some will take people out of the higher tax brackets, especially people on middle incomes, which I am sure he would welcome too. When I referred to people being able to hold on to their income, I was thinking specifically about some of the measures in the Bill. It would be churlish not to acknowledge that the Government have at least recognised the need to find a mechanism to lift those on low incomes out of tax altogether. Administratively, that is a good thing too. Why tax people and then give it back to them in benefits?

The second issue I want to raise is about infrastructure, and the Minister’s answer to me on that was a bit woolly. I do not know how much will be available in the road fund arising from the tax changes to vehicle licence duty applying to cars sold and driven in Northern Ireland, but it is important—and this seems to be an afterthought—that in those parts of the UK not covered by the road fund, which is available as a result of directing vehicle licence duty to infrastructure projects, there be a speedy resolution with the devolved Administrations to ensure that the funding is available to them to develop the road infrastructure in their own areas.

I am also disappointed that the thorny issue of the extension of the hub airport, whether at Heathrow, Gatwick or wherever, is not being addressed in the infrastructure measures in the Bill. Regional connectivity is important for places such as Northern Ireland. That matter cannot be kicked into the long grass. If Britain is to remain competitive and not lose out more and more to Holland, Germany and France, where they are developing hub airports, it is important that we develop our own infrastructure. In Northern Ireland, we are increasingly worried about slots being lost at Heathrow because of the pressure on the runways there. The first places to look at are the flights coming in from other areas of the UK, but that connectivity is vital to the promotion of industry in Northern Ireland and has been part of the secret of our success with inward investment.

[Sammy Wilson]

That is exactly right, but if we do not have the proper infrastructure to do that, we will be disadvantaged. A continual theme in this Parliament has been the question of how to ensure that growth is spread across the UK and not concentrated in the south-east of England. One way is to ensure that our infrastructure enables the prosperity generated in the south-east of England to be spread across other parts of the UK.

[Mr MacNeil]

I am grateful to the hon. Gentleman for giving way again; he is underlining our friendliness. To build on the point from the hon. Member for East Londonderry (Mr Campbell), I wish to say that the hon. Member for East Antrim (Sammy Wilson) is absolutely right about the problem of connectivity with the south-east of England, where the airports are being built. It is not by accident. In the 40 years after world war two, there were bilateral air agreements specifying that planes had to fly into London airports, and we have paid for that. He is right about the Netherlands. The London docks lost out to Rotterdam, and it looks like it will happen again with the air infrastructure. As the chief executive of Schiphol said, it would be a good idea—

Persecution of Christians

Debate between Angus Brendan MacNeil and Sammy Wilson

Tuesday 3rd December 2013 Commons Chamber

[Sammy Wilson (East Antrim) (DUP)]

It is a great joy to have the opportunity to speak in this debate, which is important because of the scale of the problem, because of the individual suffering that people experience across the world, and because this issue is actually sanctioned by the Governments of many countries, demanding a response from the UK Government.

The scale of the problem has been outlined very well by previous speakers. Some 200 million Christians are under severe risk of persecution, with many thousands killed every year and ethnically cleansed from their towns and homeland. Some 50,000 Christians have been cleared from the city of Homs in Syria during the civil war. In Eritrea people are being imprisoned on a regular basis. In Sudan before it was partitioned, over a 30-year period 2 million Christians were killed by the regime. That is the scale of the problem.

It goes on even today. Within the last month, hundreds of people, from Nigeria to Eritrea to Kazakhstan to China, have been arrested and put in prison simply because of their faith, and when they go into prison they are denied due process. They are denied access to lawyers. They are sometimes even denied knowledge of the charges facing them. They can languish in prison for a long time and in horrible conditions.

Any other overseas problem on that scale would have been a priority for the Foreign Office, yet the Minister and the Opposition Front-Bench spokesman attempted to widen this topic, rather than to zone in on the real issue, which is that a particular group of people are being persecuted.

As has been pointed out, this is not only happening in Muslim countries. From Morocco to Pakistan, Christians in Muslim countries are under threat, but it happens elsewhere too.

[Mr MacNeil]

The hon. Gentleman will know, as I do from my parliamentary postbag, of the persecution of Baha’is, particularly in Iran. Does he agree that regardless of whether those persecuted are Baha’is, Christians or whatever, a message must come out from a plurality of voices that the persecution of people on the basis of their faith is a very un-Islamic thing to do?

[Sammy Wilson]

Absolutely, and I think that is the point we need to be making in the House. Persecution of people of whatever faith by people of whatever faith is wrong.

We can go beyond the Islamic countries to Korea, where 70,000 Christians languish in prison, some of them in the most horrible conditions. I do not want to start telling lots of individual stories, but one struck me in particular. We found in Northern Ireland during the troubles that people can get numbed by numbers—they come to be seen as just statistics, rather than as highlighting the real suffering behind them—but 6,000 Christians are languishing in prison No. 15 in North Korea. They are regularly brought out on a Sunday, and two people are selected and paraded in front of the rest of their fellow Christians, stabbed with pointed bamboos and called on to renounce their faith because then the torture will stop. Many of them, of course, finish up being murdered because they will not renounce their faith. Leaving aside the huge numbers, that is the kind of horror and individual human suffering we are talking about.

As the hon. Member for Gainsborough (Sir Edward Leigh) said, when the Nazis carried out such acts in concentration camps we pursued the prison guards and those responsible to the ends of the earth, to prosecute them and to make sure they were brought to justice, yet it seems there is not the same response when it comes to the persecution of Christians. That is not just to do with the Government, of course. It is to do with the media, too. I thought it was striking that when 80 Christians were blown up at the beginning of November as they worshiped in Pakistan, the BBC found it so important that it came below the Emmy awards in the news agenda. That seems to be the level of seriousness that is attached to such issues.

One of the reasons for that sort of response is that, in many instances, such persecution is actually sponsored, sanctioned and encouraged by the Governments of the countries concerned. We have already heard the Grand Mufti of Saudi Arabia calling for the destruction of all Christian churches on the peninsula. Human Rights Watch has said that the most dangerous place for a person to be a Christian today is Pakistan, and that much of that persecution is sanctioned by the Government there. A lot of the persecution of Christians in Nigeria is fomented by official sources—and so it goes on around the world. When we point to and specify the persecution of Christians, perhaps we are actually pointing the finger at Governments who, possibly for political reasons, we sometimes need as allies, and at Governments who, for commercial reasons, we need as trade partners. If that is the reason we are not prepared to be specific about this persecution, it is a great shame on the Government of our country.

[Mr MacNeil]

Although we have our concerns about persecution, perhaps we should be highlighting good practice where it occurs. There are indeed Islamic countries that are tolerant, and perhaps we should hold up the examples of Senegal, Bangladesh and Turkey, where there is a lot more tolerance compared with the societies we are concentrating on. We should make it clear that there are examples of Islamic states in which we would all be quite happy to live.

[Sammy Wilson]

I am not so sure about the human rights situation in the countries that the hon. Gentleman mentions.

What can and should be done? I know this is a debate about what the Government should do, but the media have a responsibility. Where such unpleasant things are happening, they should be given proper coverage that is communicated to the wider world. Baroness Warsi said in Georgetown last month that it is important that we get an international coalition against such abuses, and that includes not just Governments but journalists, judges and all the people who can bring to the notice of the world the abuses taking place, do something about them, and deal with those engaged in them.

As has been mentioned, we give aid to many of these countries. I do not accept the argument that, by denying aid to them, we in some way disadvantage the people who live there. If that were the case, we would not impose sanctions anywhere, because there will always be people who are disadvantaged by sanctions. If the aid is going to a Government who are engaged in and supporting these practices, it is particularly easy to make it clear that no further aid will be given. As has been said, sometimes this is not a question of physical persecution but of economic or educational discrimination. When we think about how we spend our aid money, perhaps it should be targeted at persecuted groups.

We have talked about the ability of the Commonwealth to put pressure on the Governments of countries across the world over which we have some influence, where these abuses take place. This requires a concerted effort. It requires us not to be politically correct, but to have the courage to say, “This is happening to a particular group of people. It will not be tolerated, and there will be things which this Government will do.”

I have asked many questions about this. I have been told that the Government are aware of the situation and that they are monitoring it, looking into it and pressing the matter. We need more than that when people’s lives are being put at risk in this way.

Air Passenger Duty

Debate between Angus Brendan MacNeil and Sammy Wilson

Wednesday 23rd October 2013 Commons Chamber

[Sammy Wilson]

We in Northern Ireland, of course, feel that much more than anyone else because we share a land boundary with another country and are just 100 miles away from what is now a major international airport at which there is no air passenger duty. That places airports in Northern Ireland at a grave disadvantage.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

I will glide over the hon. Gentleman’s advertising of Dublin airport. Is not his main point that this has nothing to do with climate, as it is really about demand management at Heathrow, where there is not enough capacity to deal with demand? That demand-management tool then damages other airports in Scotland, Northern Ireland or wherever.

[Sammy Wilson]

I do not know whether it is about demand management at Heathrow, but I do know that there has been an impact not only on the pattern of where and how people fly but, much more importantly, on economic growth in the United Kingdom and on the connectivity that many of the regions need if they are to develop markets elsewhere in the world.

Let us look at the facts. Since air passenger duty was introduced, it has increased by 160% for short-haul flights and by 225% for long-haul flights. The tax brings £2.8 billion into the Exchequer, and that is expected to rise to £3.8 billion by 2016-17. If we make a comparison with other EU countries, we can see where the problem lies. Many EU countries do not have any APD, while some introduced it but abandoned it because of its impact. The countries that have retained it have done so at a lower level than here in the United Kingdom. I shall not bore the House with all the percentages, but others might want to cite them to demonstrate the impact on airports in their areas.

I do not want to be parochial, although other Northern Ireland Members may wish to spell this out in much greater detail, but it would be remiss of me not to point out that air passenger duty has a significant impact on the economy in places such as Northern Ireland. We cannot transfer between air and train travel, so the only option for people who wish to travel to places outside Northern Ireland, whether in Great Britain or elsewhere, is to travel by aeroplane, and hence to pay the duty. The Irish Government abolished air passenger duty in the Republic, with which we share a land boundary, because they recognised the importance of air connectivity to the general well-being and growth of the economy, the promotion of jobs, the attraction of inward investment, and a range of other economic benefits.

--- Later in debate ---

[Sammy Wilson]

The right hon. Gentleman is right. One of the reasons why we in Northern Ireland sought devolution of the long-haul tax is that we could not have afforded to have all our passenger duty devolved, with the impact that that would have had on the block grant. Nevertheless, chipping away at APD as the right hon. Gentleman describes is important.

I will come later to the revenue that the Government currently make from APD, as I am sure that is the point that the Minister will make. It is one thing to rant about the unfairness and inequity of air passenger duty, but where will the Government get the money from otherwise?

[Mr MacNeil]

Does not all that the hon. Gentleman is highlighting show the mindset of the zero sum game? There is no concept that, if APD were devolved, that would cause growth in the economy and the Government doing that would be rewarded. All that happens is that devolved Governments are penalised, while another Department in London gets the extra revenue in the economy.

[Sammy Wilson]

I have dealt with the issue in Northern Ireland, so I shall deal with that as a general issue for the United Kingdom economy as a whole. Let us look at the Government’s present objectives. We wish to achieve economic growth. We have heard the Chancellor on many occasions in the House argue that growth cannot be achieved simply by injecting more public funds into the economy, although some of us would query whether a particular type of injection, especially in infrastructure, would not have benefits.

Leaving that aside, the Government’s main thrust is that, if industry in the United Kingdom became more productive and more export-oriented and sold goods abroad, we would be able to achieve economic growth. Yet if there is one tax militating against export-oriented growth, it is this tax. Businesses currently pay about £500 million per year in air passenger duty. That, according to all the reports that have been done, influences the willingness and the ability of businesses to go overseas to look for suppliers, markets, investment and opportunities, and the frequency with which they do so. Therefore, air passenger duty has a deflationary effect and reduces the incentive for businesses to do what the Government want them to do. It therefore impacts on the ability of firms to increase their markets, increase their productivity and bring in investment, which can create further competition and help to increase the health of the economy.

--- Later in debate ---

[Sammy Wilson]

The point was made earlier by my right hon. Friend the Member for Lagan Valley (Mr Donaldson) that APD must be seen in the context of an overall strategy. However, as has been pointed out by a number of Members, there are airports other than Heathrow and Gatwick which are capable of taking long-haul flights. Having those direct long-haul flights or even short-haul flights to other destinations would help many regional economies significantly, and there is excess capacity there. We should not always think in terms of only the main hub airports when we are talking about the industry’s capacity.

Studies have been done on the impact of removing air passenger duty and a report by PricewaterhouseCoopers went to the Chancellor. All economic models can be challenged. As an economist, I used to tell youngsters when I was teaching them in school that the model is only as good as the assumptions put into it, and those may change before the model has been run for sufficient time. We always have to be careful about economic modelling, and I am sure that the Minister will make the same point. The model used by the consultants took cautious views about elasticity of demand for tourism and elasticity of fiscal changes. It used a model that is used by the Treasury to measure the impact of policy changes. When the Chancellor comes to the House with Budget policies and tells us that behavioural changes will lead to this or that, he uses exactly the same kind of models that were used in this report. The outcome was that to remove air passenger duty altogether would lead to GDP growth in the first year of 0.45%, and in the next two years of 0.3%. During those three years, £16 billion would be added to GDP and there would be 60,000 jobs, an increase in exports of 5% and an increase in inward investment of 6%.

When people asked me for money, I would ask where it was to come from. If they wanted me to spend money on this, I would ask where we would spend less. If they wanted taxes on business reduced, I would ask where we were to get the money from. There must always be a counterbalance, but the good thing about this proposal is that it is fiscally neutral. If anything, given its impact on exports, investment and growth, the £4 billion that would be lost by 2016-17 would be more than compensated for by the increase in tax revenues and the reduction in benefit payments. That is most unusual for any fiscal change. The reasons for it are, first, that the level of taxation is so high in the UK compared with elsewhere that there would be a positive impact. Secondly, there is the importance of transport. This is borne out not just by the model but by the Department for Transport. The importance of transport to the economy is such that there is a huge multiplier effect. Lastly, because of the connectivity that this gives to other markets, there would be a positive impact.

The coalition Government promised to look at a replacement for air passenger duty and said that the revenue raised—they did not say that more would be raised—would be used to offset income tax changes. If the Government changed the method of taxation for air travel, they did not see that money as going into the general pot, either to reduce borrowing or to facilitate spending on other Departments, but as something that would be given away anyway to taxpayers. Therefore, as for how we pay for it, all the work that has been done indicates that it should be revenue-neutral. However, I assume—perhaps I am just being naive—that if the Government had made a promise that the revenue from taxing air travel would be given in income taxes and that had been factored in already, they did not actually need it for their fiscal reduction plans anyway.

I was going to talk about the environmental concerns. Members might have gathered that the impact of CO₂ emissions, or whatever other emissions there might be from air travel, on the world environment does not feature very high on my list of priorities. I am one of those who believe that there is a big orange globe up in the sky that has influenced the Earth’s climate for billions of years and will continue to do so and that the impact humans have on that is very limited. We should certainly not be strangling our economy in order to try to change the climate, especially when countries around the world that emit far more CO₂ than we ever will, do not give two hoots about emissions, so anything we do strangles our economy and is likely to have very little impact anyway.

Another reason why I do not believe that we should spend too much time on the environmental concerns is that air passenger duty, as a number of Members have pointed out, is not a green tax anyway. In that case, I am sure that Members will not be using arguments about polar bears sinking to the bottom of the Arctic ocean, or whatever other emotive arguments and blackmail they might wish to use, during this debate. Actually, it also means that I do not even have to deal with the environmental concerns.

[Mr MacNeil]

I hear a sigh of relief from behind you.

[Sammy Wilson]

There probably is a sigh of relief from hon. Friends behind me, because they do not all share my views on that.

Finance (No. 4) Bill

Debate between Angus Brendan MacNeil and Sammy Wilson

Wednesday 18th April 2012 Commons Chamber

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

I rise to speak to amendment 8 in my name and those of my colleagues, and I should like to press amendment 61 to a Division.

I am short of time, so I shall keep interventions to a minimum. There has been co-operation among the parties to try to give hon. Members time to speak, and I shall try to keep my part of the bargain.

In fact, I have risen to speak in favour of a Government policy—a well-thought-out policy that would do wonders for the economy. I am speaking, of course, of the devolution of air passenger duty to Northern Ireland. I like that great idea so much that I should like APD devolved to Scotland as well. We want equality of treatment and opportunity for Scotland.

In reality, I and many in Scotland, and the aviation industry, feel that APD is unfair and that it places an undue burden on business and travellers at a time when the Government should be encouraging the movement of people and goods to spur economic growth. The amendments in my name and those of my hon. Friends therefore propose to halt the rise in APD and devolve the power to Scotland, which is a recommendation not only of the Scottish Government, but of the Calman commission.

The idea of the cut in APD is simple: the UK already has the highest APD in the world, which surely cannot boost economic growth. The industry has had its say. Derek Provan, managing director of Aberdeen airport has said:

“Aberdeen, Edinburgh and Glasgow airports issued a joint letter to the Chancellor ahead of the Budget calling on the UK Government to create a level playing field for the UK aviation industry, which is subject to the highest aviation taxes in the world…The leaders of BA, EasyJet, Ryanair and Virgin Atlantic also jointly warned that the double inflation increase would hit ‘millions of hard working families in the UK.’ They said a family of four flying economy class to Australia would pay £500 in APD, whereas in 2005, they would have paid just £80. BA also recently revealed that it had plans to halve the number of new recruits in 2012 as a result of APD.”

Jim O’Sullivan, managing director of Edinburgh Airport, has said:

“APD is already costing Scotland passengers and having an impact on tourism revenues. We know from discussions with our airline partners that it is a major factor in their decision to connect further routes to Scotland. We would urge the Westminster Government to see Scotland as it does Northern Ireland and understand the need to both reduce and devolve this unfair and damaging tax.”

[Sammy Wilson]

I agree with much of what the hon. Gentleman has said about the general level of APD, but does he not recognise that this measure is the result of the climate change legislation passed in a previous Parliament which his party supported? The chickens are coming home to roost, with extra green taxes being imposed on poor consumers across the United Kingdom.

Scotland Bill

Debate between Angus Brendan MacNeil and Sammy Wilson

Tuesday 15th March 2011 Commons Chamber

[Mr MacNeil]

The question of a veto goes both ways. I would not seek to veto what the good people of England might want to do, but they would be far less likely to do it, given the realpolitik of the situation, if the people entering the argument on both sides had that power. I am seeking to give the Scots Parliament the same authority as Stormont—an Assembly that seems to have a number of dispensations, including on corporation tax and, in this case, time—and the Isle of Man.

[Sammy Wilson (East Antrim) (DUP)]

Does the hon. Gentleman recognise, first, that this was not a power that was specifically sought by the Assembly at Stormont? Secondly, the freedom that he seeks through the new clause implies the ability to exercise it. However, I cannot think of anyone in Northern Ireland who would wish to exercise it, for all the reasons that have been given so far, the main one being the disruption to movement between the two parts of the United Kingdom.

[Mr MacNeil]

It may or may not be a power that people in Northern Ireland wish to exercise, but it is a power that they have. It would probably not be a power that anyone would choose to exercise in Scotland either, but it would certainly make the Scottish hand an awful lot stronger in any negotiations with Westminster, as the complexion of the Government changed over time. What I would ask the hon. Gentleman is whether he would wish to surrender that power to Westminster or whether he would keep it.

--- Later in debate ---

[Sammy Wilson]

I do not think that anyone in Northern Ireland would give two hoots whether the power was surrendered or not, because if we are never going to exercise it, why would we worry about losing or gaining it?

[Mr MacNeil]

I say to the hon. Gentleman, tongue in cheek, that it is “Maybe surrender” from the DUP.

The point is not about using that power, but about the authority that comes from having it. It is about having that club in the golf bag or in the locker. That speaks to a wider problem with devolution: the UK Parliament can potentially take damaging action against a nation of the Union, but that nation’s Parliament or Assembly has, in the main, no redress and must accept the action. This might sound a bit drastic, but the way the Scotland Act is designed ensures that the UK Government, for better or worse, have unilateral power to make substantial decisions for the entire UK, regardless of what another part of the UK thinks.

Of course, Members should be reminded that “UK Government” does not mean this Parliament, as we saw with the Scottish Adjacent Waters Boundaries Order 1999, which affected 6,000 square miles of Scottish waters, as was mentioned earlier. I understand that the current Government are not committed to changing the clocks, but I would sleep much better at night if we could ensure that a clock change would have to be agreed by the Scots Parliament and that we had that power in Scotland before it took effect. It speaks volumes that the opposition to independence, and even to full fiscal autonomy or control over time, is full of the politics of fear.