HMRC Impact Analysis: Customs

Anna Soubry Excerpts

Tuesday 8th October 2019 Commons Chamber

[Jesse Norman]

I would be delighted to do that. With the good grace of the people of Great Britain, they will have a Conservative Government for many good years to come, supporting their interests, their welfare and the growth and productivity of the British economy. No finer outcome could be hoped for by British business.

[Anna Soubry (Broxtowe) (IGC)]

Does the Minister have no shame at all in being a member of a Government who are meant to be on the side of business, having done a job in which, when I used to do it, we were so proud that for every one new piece of regulation we got rid of two? We see now a Government embarking quite clearly on no deal—this sham of trying to get a deal is exactly that—and imposing on our already struggling businesses an additional £15 billion. Has he no shame to be associated with this appalling Government?

[Jesse Norman]

I am unable to match the right hon. Lady’s capacity for bombastic intervention, but let me just tell her that if she looks at the statutory instruments that have been placed in front of this House, she will see that their purpose is not to regulate, but to create mitigations to protect people in the event of a no-deal Brexit. If we have a no-deal Brexit, these will be useful mitigations and supports for businesses and people. If she doubts that, she can avoid the issue altogether by supporting the Government on the deal that I have no doubt is being promoted vigorously.

Finance (No. 3) Bill

Anna Soubry Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 8th January 2019 Commons Chamber

[Yvette Cooper]

The same cheery optimism that the hon. Gentleman and others have expressed that everybody will suddenly magically come to an agreement once we are through this phase and if we are on WTO terms is exactly the same cheery optimism they had that we were going to end up with a deal by now—and we have not, because it is actually a lot tougher than hon. Members suggest. The reality is that we are going to have a big hike in prices in April if we have no deal, and that has consequences for our manufacturers, businesses and consumers right across the country.

[Anna Soubry (Broxtowe) (Con)]

I shall be supporting the right hon. Lady’s amendment. She talks about the manufacturing sector and I believe that there are a number of manufacturing jobs in her constituency. Has she heard any argument that falling back on WTO rules would ensure that those critical, just-in-time supply chains are able to continue, and does she agree that this issue is very important to the many millions of people across the country who rely on those just-in-time supply chains, because if we fall back on WTO rules, it is they who will be losing their jobs, not hon. Members?

[Yvette Cooper]

I completely agree with the right hon. Lady. What I am saying just comes from listening to employers in my constituency who have told me that they have bought all the storage capacity they can find in order to stockpile, but they cannot stockpile more than 10 days’ worth of some of their products, and they are really concerned about the impact of the delays on just-in-time technology.

Leaving the EU: Economic Analysis

Anna Soubry Excerpts

Wednesday 28th November 2018 Commons Chamber

[Mel Stride]

As I identified earlier, a no deal, as compared to the Chequers deal and the sensitivity analysis around that, would see every region, country and sector of the UK economy disadvantaged as a consequence. As the hon. Lady will see from the analysis presented, the impact of a no deal would be particularly felt in the north-east. That is the case also with the west midlands and the east midlands, where manufacturing is particularly prevalent. The model also showed potential impacts on agriculture, with a strong impact in areas such as Wales, Northern Ireland and Scotland.

[Anna Soubry (Broxtowe) (Con)]

As you know, Mr Speaker, the hon. Member for Streatham (Chuka Umunna) and I tabled an amendment to the Finance Bill calling for the publication of precise modelling based on the status quo but to include the Government’s political declaration. The Exchequer Secretary to the Treasury, my hon. Friend the Member for Newark (Robert Jenrick)—he is my friend, and I am not by any means saying he has done anything dishonest—gave the following assurance at the Dispatch Box to this House, and as a result, the amendment was not pushed to the vote. Had it been, it would have been passed. Hansard records that my hon. Friend gave the following assurance to the House:

“The analysis will consider a modelled no-deal scenario, or World Trade Organisation terms; a modelled analysis of an FTA scenario; and a modelled analysis of the Government’s proposed deal.”—[Official Report, 19 November 2018; Vol. 649, c. 661.]

At that time, it was the “proposed” deal, because it was before last weekend, when it became the political declaration. It is not the fault of my right hon. Friend the Financial Secretary to the Treasury, but it is somebody’s fault, because a promise was made at the Dispatch Box and in private that led to a course of action that meant that an amendment was not put to the vote that would have been put to the vote and agreed. I would like to know, please, why that solemn promise has been broken.

[Mel Stride]

I have huge respect for my right hon. Friend, whom I count as a friend, but I gently say to her that I do not believe that any promises have been broken. We have come forward with an analysis of the deal, and that analysis, of necessity, is a spectrum of possible outcomes. The political declaration very clearly does not identify a specific end point, so the choice we are left with is taking a position on a particular set of circumstances—in this case, the Chequers deal, as set out in the July White Paper—and then doing a sensitivity analysis so that we capture the different scenarios in which the final deal could land, although that, as we know, is currently unknown because it is subject to detailed negotiation.

Beeston Station

Anna Soubry Excerpts

Wednesday 12th September 2018 Commons Chamber

[Anna Soubry (Broxtowe) (Con)]

It is a great pleasure to put forward my case for some substantial improvements to Beeston station in my constituency. Mr Deputy Speaker, you will always be welcome to come to see me and, even more importantly, my constituents in Broxtowe. You are welcome any time, and I would urge you to catch the train and travel from St Pancras. You could come over from Chorley, but it is more likely that you would come up from St Pancras. You would then be able to come to Beeston station.

I have two stations in Broxtowe: Attenborough, which is just a few minutes away from Beeston; and Beeston station. I do not want it to be thought that Attenborough is not important, and that it does not require improvement and upgrading in its own right, but it is fair and true to say that Beeston is the more dominant of the two stations because it serves more than half a million people every year. It offers a greater service to many more destinations than Attenborough does.

Beeston is on the midland main line, one stop down from Nottingham on the way to London St Pancras, through stops such as Loughborough, East Midlands Parkway, Leicester, Market Harborough, Wellingborough, Kettering, Bedford on some occasions, and Luton Airport. The fastest service reaches St Pancras within one hour and 45 minutes. That is a huge improvement over recent years. It is primarily down to the hugely increased investment that has gone into the route thanks to the Government I am proud to support. The time that trains take to get down to London and, obviously, to come back again has really improved, but investment has also meant that the journey down is considerably smoother and more enjoyable.

I am not arguing for one moment that more improvements cannot be made to the service between Nottingham and St Pancras, of which Beeston is a clear beneficiary, and I shall address that in a moment. However, Beeston does not just sit proudly on the midland main line service. It is a stop on the service between Newark and Matlock, on the link into Leicester service, on the Nottingham to Birmingham service and on the Nottingham to Cardiff service. It is possible to get to a large number of destinations directly from Beeston, so it is also an important interchange and connection for a large number of passengers. As I say, well over 500,000 people use Beeston station every year. It serves commuters, general travellers, students at the University of Nottingham, tourists of course—why would they not want to come to Beeston to enjoy its many delights and those of the surrounding area?—and the people who are doing business in the area, most notably with great Broxtowe-based businesses such as Boots.

Beeston station has a proud history. It was opened in 1839, so it is not surprising that it is a grade II listed set of buildings. Last year, after a lot of effort, we finally set up the Friends of Beeston Station. A band of keen volunteers has worked incredibly hard since they got themselves together last year to improve the station, and we can already see the huge benefits of that.

I know that we are not really allowed to refer to props in this place, but if only I could then I would show everybody a photograph of Beeston station. Members would see its beautiful wood canopies, and the original wooden benches, but they would also notice that it is in need of improvement. The Friends of Beeston Station have played an important part in improving the overall appearance of the station, but they are not merely a great band of local people devoted to the station and to the sort of voluntary work that similar groups are doing in stations the length and breadth of the United Kingdom. They are also, quite rightly, a campaigning group and have, for example, produced the report that I have in my hand, which I cannot really flash around but which can be seen on my website—I am sure that you will want to see it, Mr Deputy Speaker. I urge everybody to look at it, as it shows the problem that we have.

The report not only shows the beauty of this great Victorian station, but enables people to begin to understand what the problem is. It is not only unacceptable but rather disgraceful that disabled passengers needing to get from platform 1 to platform 2 or from platform 2 to platform 1 are advised by National Rail to take a taxi. Indeed, East Midlands Trains used to advise passengers to get on another train, to go to Long Eaton in Derbyshire and to use the lifts there before getting a train back to the other platform. I have to say that that advice has now been removed from the website; I cannot imagine why. The problem is simply this: there are no lifts.

The exceptionally good report “Improving Access at Beeston Station”, to which I have referred and which was produced by the Friends of Beeston Station, shows the problem on its cover photograph. I shall describe the problem. At Beeston, there is obviously access directly from the road. Platform 1 has a car park near to it and people can literally walk on to the platform and catch a train that goes up towards Nottingham. The trains from platform 2 go down to St Pancras. Platform 2 has another car park, and it is right that improvements have been made to it. It could be better—the disabled access is not perfect—but it is better than it was.

If someone arrives by car and goes to platform 1 to catch the train to, let us say, Lincoln—an excellent journey and a great place to which to go—when they return, they will arrive on platform 2, so they will want to get their car from the car park at platform 1. If they are disabled or have a buggy or, indeed, if they have heavy luggage—fancy catching a train with luggage, Mr Deputy Speaker—the only way they can make the journey is up a very steep flight of stairs that go up on to the road bridge, then across the road bridge and down the other set of stairs to the other platform. If a person is disabled or has a buggy or heavy luggage, they cannot do that because they obviously cannot go up the steps; instead, they have to go all the way around. It is half a kilometre—it is 13 minutes on a mobility scooter—which is why the advice is to take a taxi all the way around to make the journey. That is clearly unacceptable. Of course, the other thing to do is to go all the way down to Long Eaton in Derbyshire. There is nothing wrong with Derbyshire—mustn’t be rude about Derbyshire—and it is a great place, but the previous advice was to go down to Long Eaton on another train, cross using the lifts there and come back up to Beeston and then to the destination car park or wherever.

So that is the problem. Yes, we want to make improvements to Beeston station in any event. It needs more than a lick of paint; it needs improvements. There is a wonderful little footbridge at the other end of the platform that is certainly in need of improvement; indeed, FOBS has already done some work on it. Because this is not the usual half-hour Adjournment debate and I have the time, I can tell you, Mr Deputy Speaker, what a great station Beeston is and why you might want to come to see it and enjoy it. It has a magnificent pub, the Victoria, with a gate that I think I am right in saying is now lawfully open. Someone can catch the train to Beeston station and have a pint of orange juice, or something else, in this fabulous pub. At the end of their time in the Vic, they can catch a train back to wherever they might be going. That just gives an indication of the station’s wonderful characteristics. It has fabulous Victorian history, décor and architecture; it also happens to have a fabulous pub literally off the platform; and, of course, it can take people to a huge variety of destinations directly, or they can go up to Nottingham, which is around five minutes, if not less, up the track, from where they can go onward to even more wonderful and exciting destinations throughout the United Kingdom. It is really important to make the point that people can get a direct train to Newark, which is on the east coast line, giving them even greater access to other parts of the United Kingdom.

In short, then, I am a fan, and it is not acceptable that users of the station—whether they are trying to cross from one platform to another or are coming back from a journey elsewhere so need to get back to the car park at which they started their journey—do not have the access that they should have. They have to make this long, circuitous journey around, which takes time and is not acceptable.

The solution is lifts. Earlier in my speech, I referred to the stops on the way down to St Pancras. I mentioned East Midlands Parkway, Loughborough and Leicester, all of which have lifts, which means that they are properly accessible, especially in this day and age. However, Mr Deputy Speaker, I am pleased to tell you that there is a solution to this problem. It is that old-fashioned thing called money. The Government have made available a very good Access for All pot of funding for a programme to improve stations. I believe that it sits at record levels and that it is available for people to bid into every five years. Here is a surprise: the latest five-year tranche has very recently opened for new applications, so I am taking my chances by raising the need at Beeston. I know that the Minister is listening and I know that she will have to do things very fairly, but if she has anything in her box of tools so that she can shove this up the list we would all be very grateful.

We can demonstrate existing footfall. We have obviously identified the problem. Half a million people are using Beeston station. We can also demonstrate that demand for the station will grow. Just by way of example, we know that 150 new homes are being built literally at the back of my office in Beeston. Another 200 homes are being built at the Myfords site and I think another 250 houses are planned at the Old Beeston business park, which is very close to the station, in the Rylands. We have Boots UK headquarters with all its attendant works and its 8,000 employees. There are other fabulous opportunities coming on stream at the Boots site, with more people and more housing also going into that mix. We have the University of Nottingham quite literally over my border with Nottingham South. That serves 33,500 students. The FOBS document argues that we could even put into the mix the Queen’s Medical Centre, one of the most marvellous hospitals in our country, which is also down the road and which arguably could be also well served by Beeston station.

East Midlands Trains told me that it shares the ambition to see the installation of lifts, but that it does not have the money, which I understand, and it needs to make the application. Sadly, it did not make that application in 2013, but we are in a very different situation now. I am sure that it will now submit an application and of course it absolutely has the support not just of me and the council, but of the wonderful Friends of Beeston Station. I have to mention—we do, rightly, give credit where it is due—people who have put in a great deal of time and effort not just in painting and taking the weeds out of the gutters, but in campaigning. I am talking about Trish Roberts-Thomson, who may be in the Public Gallery, but we are not allowed to refer to that, Sarah Hampton and Chris Palmer, who is himself someone who uses a wheelchair, so he absolutely knows exactly what he is talking about. Sarah and Chris cannot be with us this evening, but I know that they will be watching—or watching on catch-up. [Interruption.] One wonders why anyone would do that, but they are great people and I think they will. Anyway, I shall put it on my email newsletter, so people can watch the debate. Actually, I am not sure that that is always a good idea. It is much better to refer people to Hansard and hope that the Hansard writers are doing their usual great work taking out all the mistakes.

Anyway, I am digressing. This is a serious matter. In this day and age a station of this importance serving as many people as it does, with the potential to serve even more, really should have lifts in it so that it is properly accessible to everybody—not just to disabled people, but to people with luggage, pushchairs and all the rest of it.

We have a tram that goes into Beeston. It is highly controversial, but it is there. One of the big mistakes that was made is that, although there are quite a few tram stops in Beeston, there is not one at the station. [Interruption.] Mr Deputy Speaker, I can see your face and I heard what you just said. It is indeed absurd. If we are to make public transport absolutely work, it is critical that we have connectivity between different branches of a particular type of transport and between different modes and models of transport. That was not done, which, as I say, was a huge mistake. However, we do have a tram, which is not that far away, although not near enough to provide connectivity. We must learn the lesson from that.

I have to mention HS2, because it is important to this whole argument and some of the controversies around the midland main line. I like HS2 and am a big supporter of it. There is no debate in my mind about whether we should be building it; my only criticism is that we are not doing it more quickly. I and my constituents particularly like HS2 because we get the east midlands hub in Broxtowe, at a place called Toton Sidings. We know that HS2 is not about substituting for existing systems but about additional capacity. It is not even necessarily about speed; it is about capacity and having more trains on the new line, serving different people.

One of the arguments made against HS2 is that it has been at the cost of the midland main line. There was a lot of disappointment when the Government rode back from full electrification all the way up to Sheffield, because frankly in a modern age we need electrified trains, I would suggest. Electrification delivers better, more efficient and smoother rail transportation. There was a lot of disappointment, but I give full credit to the Government, because there will be electrification at least up to Corby and Kettering. That will make a big difference. I need to be convinced about these biofuel trains, but there are two things that I do accept.

One is that, through the investment in our railways, the Government have ensured that the journey is not just quicker, as I identified earlier, but much more pleasant. For example, big bends have been taken out, so that people are not thrown around all over the place. The other thing that has happened is improvements to other stations on the line. It is just that we have missed out in Beeston. I am sure the Minister will do everything that she can to change that but, if we are to make the case to the public about HS2, it cannot come at the cost of great lines such as the midland main line. They, too, must have the investment that they need to survive.

In this modern day and age, with the footfall that we have and the even greater potential that we know is coming, it is just not acceptable for there not to be full access at Beeston station, so in addition to the improvements that we need in any event, what we want more than anything is lifts. I look forward to the Minister’s response.

[The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)]

I congratulate my right hon. Friend the Member for Broxtowe (Anna Soubry) on securing this important debate about access to Beeston station and on highlighting the good work done locally to take the project forward. She is not only a powerful advocate for her constituency; I believe she also nurtured and supported the local action group, Friends of Beeston Station, and put it on the map. A huge debt of gratitude is owed to Trish, Chris and Sarah—unfortunately I did not catch their surnames, but no doubt they will be watching this on the website or see it in my right hon. Friend’s newsletter.

In recent years, expectations about accessibility have changed, both among disabled passengers and in the railway industry. That is particularly so following the success of our transport networks in providing accessible journeys during the 2012 Olympics and Paralympics. As my right hon. Friend mentioned, the extra investment in our rail infrastructure has meant improved services and greater passenger satisfaction. Unfortunately, though, many of our mainline railway stations date from Victorian times. These 19th-century stations, including Beeston, which I believe opened as far back as 1839, were not built with the needs of 21st-century passengers in mind. Interestingly, I tried to look up who the MP was in 1839 and the computer said, “Do not know,” so maybe my right hon. Friend can let me know at some point. No doubt, the constituency did not have as strong a female advocate as it does today.

The Victorian stations have left us with a huge task in opening up the rail network to disabled passengers. Only around a fifth of stations have proper step-free access into the station and between platforms. Clearly, accessible stations make a huge difference to the journey experience not only of people with reduced mobility, but, as my right hon. Friend pointed out, those carrying heavy luggage or pushing unwieldy pushchairs.

I understand how important stations are to passengers, and every rail journey involves at least two of them, but as well as providing access points to the network, they are often important to the wider community.

I am keen to improve access for disabled passengers across the rail network. The Department has therefore continued and, indeed, extended the Access for All programme. As my right hon. Friend will know, the inclusive transport strategy published on 25 July included a commitment to extend our Access for All programme across the next rail control period, starting in 2019, with an additional £300 million of funding from the public purse. This funding is the most appropriate way to deal with the critical areas that she mentioned regarding accessibility challenges at Beeston station.

It must be noted that the station has not been nominated previously. I know that my right hon. Friend is as curious about that as I am, and she may want to ask the train operating company why it is the case. However, we are where we are, and we have asked the industry to nominate stations for the new funding by 16 November this year.

[Anna Soubry]

To be fair, the company has to prioritise the stations that it thinks are absolutely at the top of the pile. There is at least one station locally—Langley Mill, I think—where access is even worse, although it is difficult to believe how it could be. To be fair to the company, it had to put forward its top priorities, but I hope that Beeston—and, I think, Bingham, which the Minister will not know—are now right at the top of its list.

[Ms Ghani]

My right hon. Friend is being as fair as she usually is, but today we have put Beeston on the map.

The deadline is 16 November. Nominated stations will be selected based on their annual footfall, which we heard about, weighted by the incidence of disability in the area. We will take into account local factors such as proximity to a hospital or the availability of third-party funding for the project. We will also ensure that there is a fair geographical spread of projects across the country. I encourage my right hon. Friend to liaise with East Midlands Trains and ask it to put the station forward and, ideally, to seek a proportion of third-party match funding that will help to weight the business case.

This new funding builds on the success of the Access for All programme, which was first launched in 2006 as a 10-year programme, but which we have continued to extend. We are also pressing the industry to comply with its legal obligations to ensure that work at stations meets current accessibility standards, not just on flagship projects such as Crossrail or the redevelopment of Birmingham New Street, but as part of the business-as-usual work of their renewals programme—for example, by making sure that any replacement bridges have lifts or ramps. It is important that the industry meets its obligations to anyone who needs assistance, whether or not booked ahead of time. People should expect the best possible help to use the trains, particularly at stations that do not have proper accessible facilities.

My right hon. Friend has written to the Department several times asking for a Minister to visit Beeston station to see the fantastic work that has been carried out by Friends of Beeston Station, to admire its beauty and to see some of the issues that it faces. I am delighted to accept that invitation, and I look forward to visiting the station after the conference recess. I will work with my right hon. Friend to continue to help her to champion her constituency.

[Anna Soubry]

I am grateful to the Minister for being able to come up so quickly. I need to put it on record that the Leader of the Opposition approached me earlier today and told me that he was supporting my campaign and that of Friends of Beeston Station on the basis that he, too, has visited Beeston station and seen the problem for himself. I have suggested that he need not come up again to see it. I am delighted that the Minister will be coming up, but I am grateful to the right hon. Gentleman for his support as well.

[Ms Ghani]

My right hon. Friend is inundated with guests. No doubt, she will take care of me. I am keen to have a drink at the Beeston pub she mentioned, and maybe all the other guests could pop along, invited or not.

I welcome my right hon. Friend’s remarks on HS2. We had a powerful debate on it this morning. It is important to remember that it is about not just capacity, but ensuring that we have productivity and prosperity north of London.

I hope that my right hon. Friend and other Members have been reassured that the Government are committed to investment that will improve rail services for all. The Government will ensure that passengers continue to benefit from our record levels of investment. The Department recognises the need to look to the future, to ensure that the railways work for those who use them—passengers, freight and local communities. That means delivering the enhancements already on the way, as well as working with others to develop the next generation of improvements.

I welcome my right hon. Friend’s invitation and look forward to visiting Beeston and seeing the application.

Question put and agreed to.

Taxation (Cross-border Trade) Bill

Anna Soubry Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Monday 16th July 2018 Commons Chamber

[Anna Soubry (Broxtowe) (Con)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Dame Eleanor Laing)]

With this it will be convenient to discuss the following:

New clause 2—EU VAT area and pre-commencement requirements—

“(1) It shall be a negotiating objective of Her Majesty’s Government in negotiations on the matters specified in subsection (2) to maintain the United Kingdom’s participation in the EU VAT Area under the arrangements set out through the Union Customs Code and its delegated and implementing legislation.

(2) Those matters are—

(a) the United Kingdom’s withdrawal from the European Union, and

(b) a permanent agreement with the European Union for a period subsequent to the transitional period after the United Kingdom’s withdrawal from the European Union.

(3) It shall be the duty of the Secretary of State to lay a report before the House of Commons in accordance with either subsection (4) or subsection (5).

(4) A report under this subsection shall be to the effect that the negotiating objective specified in subsection (1) has been achieved.

(5) A report under this subsection shall be to the effect that the negotiating objective specified in subsection (1) has not been achieved.

(6) If a report is laid before the House of Commons in accordance with subsection (4), Part 3 of this Act shall cease to have effect on the day after that day.

(7) No regulations may be made for the commencement of provisions of Part 3 of this Act unless a report is laid before the House of Commons in accordance with subsection (5).”

This new clause establishes a negotiating objective to maintain the UK’s participation in the EU VAT Area and provides for Part 3 of the Act to expire if that objective is met.

New clause 3—Import tariffs under Part 1: restriction—

“(1) No power of the Treasury or of the Secretary of State to impose tariffs under or by virtue of the provisions specified in subsection (2) may be exercised in respect of goods originating from a country that is a Member State of the European Union.

(2) Those provisions are—

(a) section 8 (customs tariff),

(b) section 11 (quotas),

(c) section 13 (dumping of goods, etc),

(d) section 14 (agricultural goods), and

(e) section 15 (international disputes).”

This new clause prevents tariffs being imposed on goods originating from EU Member States.

New clause 4—Import tariffs under Part 1: pegging with EU tariffs—

“(1) In exercising the powers to impose or vary tariffs under or by virtue of the provisions of sections 8 to 15, it shall be the duty of the Treasury and the Secretary of State to secure that, so far as practicable, the level of those tariffs is the same as that imposed in respect of comparable goods imported into the European Union from third countries.

(2) For the purposes of this section—

(a) the level of tariffs imposed in respect of comparable goods imported into the European Union shall be determined with reference to EU customs duties (within the meaning of that term given by paragraph 1 of Schedule 7), and

(b) “third countries” means any country other than the United Kingdom that is not a member of the EU Customs Union.”

This new clause requires tariffs set by the UK to be pegged to EU tariffs.

New clause 5—Regulatory alignment: VAT and excise—

“(1) In exercising the powers under Parts 3 and 4 of this Act, it shall be the duty of the Treasury to secure that, so far as practicable, there is regulatory alignment in respect of VAT and excise with the European Union.

(2) For the purposes of this section, “regulatory alignment” includes, for example—

(a) the administration of VAT and excise duties on the basis of the same regulatory approach as that required in respect of EU Member States,

(b) the setting of import VAT with regard to comparable taxation within the European Union, and

(c) the establishment of a duty deferment scheme comparable to that in operation while the United Kingdom was a member of the European Union.”

This new clause requires regulatory alignment with regard to VAT and excise between new UK arrangements and those within the EU or as a member of the EU.

New clause 6—Pre-commencement impact assessment of leaving the EU Customs Union—

“No Minister of the Crown may appoint a day for the commencement of any provision of this Act until a Minister of the Crown has laid before the House of Commons an impact assessment of—

(a) disapplying the EU’s Common External Tariff, and

(b) any changes to duties, quotas or associated customs processes made as a consequence of the UK leaving the European Union.”

This new clause would require the Government to produce an impact assessment of any changes to existing cross-border taxation arrangements before any such changes are made.

New clause 7—Review of the impact of this Act on the UK economy—

“(1) Within six months of Royal Assent of this Act, the Chancellor of the Exchequer must publish and lay before both Houses of Parliament an assessment of the impact of the proposed customs regime to be implemented under this Act on—

(a) the economy of the United Kingdom,

(b) the different parts of the United Kingdom and different regions of England, and

(c) individual economic sectors.

(2) The assessment in subsection (1) must so far as practicable analyse the expected difference in outcomes between the proposed customs regime and continued participation in the EU Customs Union.

(3) In this section—

“parts of the United Kingdom” means—

(a) England,

(b) Scotland,

(c) Wales, and

(d) Northern Ireland;

“regions of England” has the same meaning as that used by the Office for National Statistics.”

This new clause requires the Treasury to publish an assessment on the economic impact of proposed customs regime and compare it to the economic impact of remaining in the EU Customs Union.

New clause 8—Review of the impact of this Act on the Northern Ireland—Ireland border—

“(1) Within six months of Royal Assent of this Act, the Chancellor of the Exchequer must publish and lay before each House of Parliament an assessment of the impact of the proposed customs regime to be implemented under this Act on Northern Ireland and the Republic of Ireland.

(2) The assessment in subsection (1) must so far as practicable analyse the expected difference in outcomes between the proposed customs regime and continued participation in the EU Customs Union.

(3) The assessment must consider—

(a) the impact of the proposed customs regime on businesses that operate in both Northern Ireland and the Republic of Ireland,

(b) what, if any, physical infrastructure will be required at the border crossings between Northern Ireland and the Republic of Ireland to enforce the proposed customs regime,

(c) if, and how, the proposed customs regime preserves the effects of the Belfast Agreement of 10 April 1998, and

(d) what, if any, rules of the EU Customs Union are included in the proposed customs regime for the purposes of—

(i) promoting cooperation between Northern Ireland and the Republic of Ireland,

(ii) supporting the economy of the entire island of Ireland, and

(iii) preserving the effects of the Belfast Agreement of 10 April 1998.”

This new clause requires the Treasury to assess the impact of the proposed customs regime on Northern Ireland and Ireland, especially on the all-island economy, border crossings, the Good Friday Agreement and future alignment with the EU Customs Union.

New clause 9—Parliamentary scrutiny of public notices—

“(1) Any provision made by a public notice under this Act is subject to annulment in pursuance of a resolution of the House of Commons.

(2) Section 5 of the Statutory Instruments Act 1946 applies to this section as if all references in that Act to a statutory instrument subject to annulment were a reference to a public notice.”

This new clause allows the House of Commons to annul provisions made by public notice under this Act.

New clause 10—Review of free zones—

“(1) The Treasury shall, within three months of the passing of this Act, carry out a review of the exercise and prospective exercise of the relevant powers relating to free zones.

(2) The review under this section shall in particular consider—

(a) the economic effects of previous designations under the relevant powers relating to free zones,

(b) the operation of free zones in other Member States of the European Union,

(c) the effects of the United Kingdom’s withdrawal from the European Union on the case for the designation of free zones (including the prospective effects of the storage procedure under Part 2 of Schedule 2 in relation to free zones), and

(d) the prospective designation of Teesport as a free zone.

(3) The Chancellor of the Exchequer shall lay a report of the review under this section before the House of Commons as soon as practicable after its completion.

(4) In this section “the relevant powers relating to free zones” means—

(a) the power of the Treasury to make an order designating any area in the United Kingdom as a special area for customs purposes under section 100A of CEMA 1979 (designation of free zones), and

(b) the powers of HMRC Commissioners under section 17 of the Value Added Tax Act 1994 (free zone regulations).”

This new clause requires a review to be undertaken of the past and possible future exercise of powers to designate free zones and related powers, including comparative information and an analysis of the impact on the case of withdrawal from the EU.

New clause 11—Preparedness for a customs union with the European Union—

“(1) It shall be one of the negotiating objectives of Her Majesty’s Government in negotiations on the matters specified in subsection (2) to create an agreement which allows the United Kingdom to secure tariff free access to the European Union including the potential to participate in a customs union with the European Union, following exit from the European Union.

(2) Those matters are—

(a) the United Kingdom’s withdrawal from the European Union, and

(b) a permanent agreement with the European Union for a period subsequent to the transitional period after the United Kingdom’s withdrawal from the European Union.

(3) It shall be the duty of the Secretary of State to lay a report before the House of Commons on the outcome of negotiations on each of the matters specified in subsection (2) in relation to the objective in subsection (1).

(4) A report under this section in relation to the matter specified in subsection (1)(a) shall include an account of—

(a) the extent to which the negotiating objective has been met,

(b) proposals for the commencement of provisions of Parts 1 and 2, and

(c) proposals for the modification of this Act in the exercise of powers under sections 31 or 54, or otherwise, in consequence of an agreement with the European Union.

(5) The provisions specified in section 55(1) come into force on the day after the day on which a report under subsection (4) is laid before the House of Commons.

(6) A report under this section in relation to the matter specified in subsection (1)(b) shall include an account of—

(a) the extent to which the negotiating objective has been met, and

(b) proposals for the modification of this Act in the exercise of powers under sections 31 or 54, or otherwise, in consequence of an agreement with the European Union.”

This new clause establishes a negotiating objective to secure an agreement which allows the United Kingdom to have tariff free access to the European Union including the potential to participate in a customs union with the European Union, following exit from the European Union, and makes associated provision about reporting and implementation and modification of the Bill as enacted.

New clause 12—Implementation of a customs union with the EU as a negotiating objective—

“(1) It shall be a negotiating objective of Her Majesty’s Government in negotiations on the matters specified in subsection (2) to secure the United Kingdom’s participation in a customs union with the European Union.

(2) Those matters are—

(a) the United Kingdom’s withdrawal from the European Union, and

(b) a permanent agreement with the European Union for a period subsequent to the transitional period after the United Kingdom’s withdrawal from the European Union.

(3) It shall be the duty of the Secretary of State to lay a report before the House of Commons in accordance with either subsection (4) or subsection (5).

(4) A report under this subsection shall be to the effect that the negotiating objective specified in subsection (1) has been achieved.

(5) A report under this subsection shall be to the effect that the negotiating objective specified in subsection (1) has not been achieved.

(6) If a report is laid before the House of Commons in accordance with subsection (4), Parts 1 and 2 of this Act shall cease to have effect on the day after that day.

(7) If a report is laid before the House of Commons in accordance with subsection (5), the provisions specified in section 55(1) come into force on the day after that day.

(8) No regulations may be made under section 55(2) for the purpose of appointing a day for the coming into force of paragraph 1 of Schedule 7 (replacement of EU customs duties) unless a report has been laid before the House of Commons in accordance with subsection (5).”

This new clause establishes a negotiating objective to secure the United Kingdom’s participation in a customs union with the European Union, provides for Parts 1 and 2 of the Act to expire if that objective is met and makes the ending of the retention of EU customs duties conditional upon a report stating that the objective has not been met.

New clause 13—Enhanced parliamentary procedure—

“(1) No regulations to which this section applies may be made except in accordance with the steps set out in this section.

(2) This section applies to—

(a) the first regulations to be made under—

(i) section 8 (the customs tariff);

(ii) section 9 (preferential rates under arrangements) in respect of any country or territory outside the United Kingdom; and

(iii) section 39 (charge to export duty);

(b) any other regulations to be made under section 8 the effect of which is an increase in the amount of import duty payable under the customs tariff in a standard case (within the meaning of that section);

(c) any other regulations under section 9 the effect of which is an increase in the amount of import duty applicable to any goods set by any regulations to which paragraph (a)(ii) applies;

(d) any other regulations under section 39 the effect of which is an increase in the amount of export duty payable;

(e) any regulations under—

(i) section 10(1) (preferential rates given unilaterally);

(ii) section 11(1) (quotes);

(iii) section 13(5) (dumping of goods, foreign subsidies and increases in imports);

(iv) section 14(1) (increases in imports or changes in price of agricultural goods); and

(v) section 15(1) (international disputes).

(3) The first step is that a Minister of the Crown must lay before the House of Commons—

(a) a draft of the regulations that it is proposed be made;

(b) in respect of regulations to be made under section 9 to which this section applies, a statement of the terms of the arrangements made with the government of the country or territory outside the United Kingdom;

(c) in respect of regulations to be made under section 10(1), a statement on the matters specified in subsection (4);

(d) in respect of regulations to be made under section 11(1), a statement on the matters specified in subsection (5);

(e) in respect of regulations to be made under section 14(1), a statement of the reasons for proposing to make the regulations;

(f) in respect of draft regulations to be under section 15(1)—

(i) a statement of the dispute or other issue that has arisen; and

(ii) an account of the reasons why the Secretary of State considers that the condition in section 15(1)(b) has been met.

(4) The matters referred to in subsection (3)(c) are—

(a) the proposed application and non-application of the scheme to each country listed in Parts 2 and 3 of Schedule 3;

(b) any proposed conditions for the application of the lower rates or nil rate; and

(c) any proposed provisions about the variation, suspension and withdrawal of the application of the lower rates or nil rate.

(5) The matters referred to in subsection (3)(d) are—

(a) in respect of any case where the condition in section 11(2)(a) is met, a statement of the terms of the arrangements made with the government of the country or territory outside the United Kingdom; and

(b) in respect of any case where the condition in section 11(2)(b) is met, a statement of the reasons why the Treasury consider it is appropriate for the goods concerned to be subject to a quota.

(6) The second step is that a Minister of the Crown must make a motion for a resolution in the House of Commons setting out, in respect of proposed regulations of which a draft has been laid in accordance with subsection (3)—

(a) in respect of draft regulations to be made under section 8 to which this section applies—

(i) the rate of import duty applicable to goods falling within a code given in regulations previously made under section 8 or in the draft of the regulations laid in accordance with subsection (3);

(ii) anything of a kind mentioned in section 8(3)(a) or (b) by reference to which the amount of any import duty applicable to any goods is proposed to be determined; and

(iii) the meaning of any relevant expression used in the motion.

(b) in respect of draft regulations to be made under section 9 to which this section applies, the rate of import duty applicable to goods, or any description of goods, originating from the country or territory.

(c) in respect of draft regulations to be made under section 11(1)—

(i) the amount of import duty proposed to be applicable to any goods that are or are proposed to be subject to a quota; and

(ii) the factors by reference to which a quota is to be determined.

(d) in respect of draft regulations to be made under section 10(1)—

(i) each country to which the proposed regulations apply;

(ii) the proposed conditions for the application of the lower rates or nil rate, and

(iii) the proposed provisions about the variation, suspension and withdrawal of the application of the lower rates or nil rate.

(e) in respect of draft regulations to be under section 13(5), the amount of import duty proposed to be applicable to any goods that are or are proposed to be subject to a quota.

(f) in respect of draft regulations to be made under section 14(1)—

(i) the proposed additional amount of import duty;

(ii) the proposed period for the purposes of section 14(1)(a); and

(iii) the proposed trigger price for the purposes of section 14(1)(b).

(g) in respect of draft regulations to be made under section 15(1), the proposed variation of import duty.

(h) in respect of draft regulations to be made under section 39 to which this section applies—

(i) the rate of export duty applicable to goods specified in the resolution;

(ii) any proposed export tariff (within the meaning given in section 39(3)(a)); and

(iii) any measure of quantity or size by reference to which it is proposed that the duty be charged.

(7) The third step is that the House of Commons passes a resolution arising from the motion made in the form specified in subsection (6) (whether in the form of that motion or as amended).

(8) The fourth step is that the regulations that may then be made must, in respect of any matters specified in the paragraph of subsection (6) that relate to the section under which the draft regulations are to be made, give effect to the terms of the resolution referred to in subsection (7).”

This new clause applies an enhanced parliamentary procedure to several of the provisions in the Bill, requiring that the House of Commons pass an amendable resolution authorising (i) the rate of import duty on particular goods; (ii) the key provisions of regulations that set quotas; (ii) the key provisions of regulations that lower import duties for eligible developing countries; (iii) the quota provisions of regulations to give effect to recommendations of the TRA; (iv) regulations setting additional import duty on agricultural goods; (v) regulations varying import duty as a result of an international dispute, and (vi) the rate of export duty on particular goods.

New clause 14—Additional regulations requiring the affirmative procedure—

“(1) No regulations to which this section applies may be made unless a draft has been laid before and approved by a resolution of the House of Commons.

(2) This section applies to regulations under—

(a) section 10(4)(a) (meaning of “arms and ammunition”);

(b) section 12 (tariff suspension);

(c) section 19 (reliefs);

(d) section 22 (authorized economic operators);

(e) section 30 (general provision for the purposes of import duty);

(f) section 42 (EU law relating to VAT);

(g) paragraph 2(1) of Schedule 3 (power to add or remove countries from lists in that Schedule);

(h) paragraph 1(3) of Schedule 4 (definitions and determinations in relation to goods being “dumped”);

(i) paragraph 5 of Schedule 4 (determination of certain matters relating to “injury” to a UK industry);

(j) paragraph 26(1) of Schedule 4 (provision for suspension of anti-dumping or anti-subsidy remedies);

(k) paragraph (1)(2)(c) of Schedule 5 (defining a “significant” increase);

(l) paragraph 2 of Schedule 5 (definitions relating to “serious injury” to a UK industry);

(m) paragraph 22(1) of Schedule 5 (provision for suspension of safeguarding remedies)

and regulations making provision on the matters in section 11(3)(c).”

This new clause applies the affirmative resolution procedure to a number of powers in the Bill.

New clause 16—Additional regulations requiring the consent of the Scottish Parliament—

“(1) No regulations to which this section applies may be made unless a draft has been given consent by the Scottish Parliament.

(2) This section applies to regulations under—

(a) section 10(4)(a) (meaning of “arms and ammunition”);

(b) section 12 (tariff suspension);

(c) section 19 (reliefs);

(d) section 22 (authorized economic operators);

(e) section 30 (general provision for the purposes of import duty);

(f) section 42 (EU law relating to VAT);

(g) paragraph 2(1) of Schedule 3 (power to add or remove countries from lists in that Schedule);

(h) paragraph 1(3) of Schedule 4 (definitions and determinations in relation to goods being “dumped”);

(i) paragraph 5 of Schedule 4 (determination of certain matters relating to “injury” to a UK industry);

(j) paragraph 26(1) of Schedule 4 (provision for suspension of anti-dumping or anti-subsidy remedies);

(k) paragraph 1(2)(c) of Schedule 5 (defining a “significant” increase);

(l) paragraph 2 of Schedule 5 (definitions relating to “serious injury” to a UK industry);

(m) paragraph 22(1) of Schedule 5 (provision for suspension of safeguarding remedies) and regulations making provision on the matters in section 11(3)(c).

(n) section 14 (Increases in imports or changes in price of agricultural goods).”

This new clause would require Scottish Parliament consent to implement a number of powers in the Bill.

New clause 18—Tariffs not to differ from the European Union until House of Commons authority given—

“(1) Unless and until the House of Commons has passed a resolution in the terms specified in subsection (3), subsection (2) shall apply.

(2) Unless and until the resolution referred to in subsection (1) is passed—

(a) in exercising the powers to impose or vary tariffs under or by virtue of the provisions of sections 8 to 15, it shall be the duty of the Treasury and the Secretary of State to secure that, so far as practicable, the level of those tariffs is the same as that imposed in respect of comparable goods imported into the European Union from third countries, and

(b) no power of the Treasury or of the Secretary of State to impose tariffs under or by virtue of the provisions specified in subsection (5) may be exercised in respect of goods originating from a country that is a Member State of the European Union.

(3) The form of the resolution referred to in subsection (1) is “That this House authorises Her Majesty’s Government to set tariffs that differ from those of the European Union”.

(4) After the House of Commons has passed a resolution in the terms specified in subsection (3), subsection (2) shall no longer apply.

(5) The provisions referred to in subsection (2)(b) are—

(a) section 8 (customs tariff),

(b) section 11 (quotas),

(c) section 13 (dumping of goods, etc),

(d) section 14 (agricultural goods), and

(e) section 15 (international disputes).

(6) For the purposes of this section—

(a) the level of tariffs imposed in respect of comparable goods imported into the European Union shall be determined with reference to EU customs duties (within the meaning of that term given by paragraph 1 of Schedule 7), and

(b) “third countries” means any country other than the United Kingdom that is not a member of the EU Customs Union.”

This new clause would require a meaningful vote before the UK Government could introduce tariffs different to those of the EU.

New clause 20—Application to Scotland of arrangements for Northern Ireland—

“(1) No power of the Treasury or of the Secretary of State exercisable under the provisions specified in subsection (2) shall make customs arrangements in respect to goods that originated from a country that is a Member State of the European Union entering Northern Ireland unless one or both of the conditions in subsection (3) is met.

(2) Those provisions are—

(a) section 8 (customs tariff),

(b) section 11 (quotas),

(c) section 13 (dumping of goods, etc),

(d) section 14 (agricultural goods), and

(e) section 15 (international disputes).

(3) The conditions are that—

(a) the customs arrangements that apply to Northern Ireland also apply to Scotland, or

(b) the Scottish Ministers consent to the arrangements being made.”

This new clause prevents Northern Ireland being given a special status not available to Scotland, subject to approval by Scottish Ministers.

New clause 22—Review of the impact of this Act on the Northern Ireland—Ireland border (No. 2)—

“(1) Within six months of Royal Assent of this Act, the Chancellor of the Exchequer must publish and lay before each House of Parliament an assessment of the impact on—

(a) Northern Ireland, and

(b) the Republic of Ireland,

of the proposed customs regime to be implemented under this Act.

(2) The assessment in subsection (1) must so far as practicable analyse the expected difference in outcomes between the proposed customs regime and continued participation in the EU Customs Union.

(3) The assessment must consider—

(a) the impact of the proposed customs regime on businesses that operate in both Northern Ireland and the Republic of Ireland,

(b) what, if any, physical infrastructure will be required at the border crossings between Northern Ireland and the Republic of Ireland to enforce the proposed customs regime,

(c) if, and how, the proposed customs regime preserves the effects of the Belfast Agreement of 10 April 1998, and

(d) what, if any, rules of the EU Customs Union are included in the proposed customs regime for the purposes of—

(i) promoting cooperation between Northern Ireland and the Republic of Ireland,

(ii) supporting the economy of the entire island of Ireland, and

(iii) preserving the effects of the Belfast Agreement of 10 April 1998.”

This new clause requires the Treasury to assess the impact of the proposed customs regime on Northern Ireland and Ireland, especially on the all-island economy, border crossings, the Good Friday Agreement and future alignment with the EU Customs Union.

New clause 23—Additional regulations requiring the consent of the Scottish Ministers—

“(1) No regulations to which this section applies may be made unless a draft has been given consent by the Scottish Ministers.

(2) This section applies to regulations under—

(a) section 10(4)(a) (meaning of “arms and ammunition”);

(b) section 12 (tariff suspension);

(c) section 19 (reliefs);

(d) section 22 (authorized economic operators);

(e) section 30 (general provision for the purposes of import duty);

(f) section 42 (EU law relating to VAT);

(g) paragraph 2(1) of Schedule 3 (power to add or remove countries from lists in that Schedule);

(h) paragraph 1(3) of Schedule 4 (definitions and determinations in relation to goods being “dumped”);

(i) paragraph 5 of Schedule 4 (determination of certain matters relating to “injury” to a UK industry);

(j) paragraph 26(1) of Schedule 4 (provision for suspension of anti-dumping or anti-subsidy remedies);

(k) paragraph 1(2)(c) of Schedule 5 (defining a “significant” increase);

(l) paragraph 2 of Schedule 5 (definitions relating to “serious injury” to a UK industry);

(m) paragraph 22(1) of Schedule 5 (provision for suspension of safeguarding remedies) and regulations making provision on the matters in section 11(3)(c);

(n) section 14 (increases in imports or changes in price of agricultural goods).”

This new clause would require Scottish Government approval to implement a number of powers in the Bill.

New clause 25—Review of the impact of this Act on the Scottish economy—

“(1) Within six months of Royal Assent of this Act, the Chancellor of the Exchequer must publish and lay before each House of Parliament an assessment of the impact of the proposed customs regime to be implemented under this Act on the Scottish economy.

(2) The assessment in subsection (1) must so far as practicable analyse the expected difference in outcomes between the proposed customs regime and continued participation in the EU Customs Union.

(3) The assessment must consider—

(a) the impact of the proposed customs regime on businesses that operate in Scotland,

(b) the impact on public finances in Scotland.”

This new clause requires the Treasury to assess the impact of the proposed customs regime on Scotland.

New clause 26—Import tariffs under Part 1: making tariffs on the EU less or equal to those on third countries—

“(1) In exercising the powers to impose or vary rates of import duty under or by virtue of the provisions of sections 8 to 15, it shall be the duty of the Treasury and the Secretary of State to secure that, so far as practicable, the level of those rates of import duty in respect of goods imported from the European Union is no greater than those imposed on third countries.

(2) For the purposes of this section “third countries” means any country other than the United Kingdom that is not a member of the EU Customs Union.”

This new clause requires tariffs set by the UK on EU goods to be no greater than those imposed on any third countries.

New clause 27—Import tariffs under Part 1: preventing tariffs on goods from third countries being lower than those on comparable goods from the European Union—

“(1) In exercising the powers to impose or vary rates of import duty under or by virtue of the provisions of sections 8 to 15, it shall be the duty of the Treasury and the Secretary of State to secure that, so far as practicable, rates of import duty are applied in respect of goods imported from third countries are not set at a lower rate than the rate of import duty set by the European Union in respect of the same goods and countries.

(2) This section does not apply to—

(a) eligible developing countries, or

(b) least developed countries.

(3) For the purposes of this section—

(a) “third countries” means any country other than the United Kingdom that is not a member of the EU Customs Union;

(b) “eligible developing countries” and “least developed countries” means those countries defined as such in Schedule 3.”

This new clause would prevent tariffs on goods from third countries being lower than those on comparable goods from the European Union.

New clause 28—Import tariffs under Part 1: preventing tariffs on third countries which may cause a dispute with the EU—

“(1) In exercising the powers to impose or vary rates of import duty under or by virtue of the provisions of sections 8 to 15, it shall be the duty of the Treasury and the Secretary of State to secure that, so far as practicable, rates of import duty are not applied in respect of goods imported from third countries which may jeopardise customs arrangements with the European Union or cause any dispute with the European Union.

(2) For the purposes of this section ‘third countries’ means any country other than the United Kingdom that is not a member of the EU Customs Union.”

This new clause would prevent a UK Government from entering into customs arrangements with third countries which would jeopardise customs arrangements with the European Union or cause any dispute with the European Union.

New clause 29—Import tariffs under Part 1: pegging with EU tariffs—

“(1) In exercising the powers to impose or vary rates of import duty under or by virtue of the provisions of sections 8 to 15, it shall be the duty of the Treasury and the Secretary of State to secure that, so far as practicable, rates of import duty are the same as those imposed in respect of comparable goods imported into the European Union from third countries.

(2) For the purposes of this section—

(a) the rates of import duty imposed in respect of comparable goods imported into the European Union shall be determined with reference to EU customs duties (within the meaning of that term given by paragraph 1 of Schedule 7), and

(b) ‘third countries’ means any country other than the United Kingdom that is not a member of the EU Customs Union.”

This new clause requires tariffs set by the UK to be pegged to EU tariffs.

New clause 30—Super-affirmative resolution procedure—

“(1) For the purposes of this Act, the ‘super-affirmative resolution procedure’ in relation to the making of regulations to which this section applies is as follows.

(2) If a Minister considers it necessary to proceed with the making of regulations to which this section applies, the Minister shall lay before the House of Commons—

(a) draft regulations,

(b) an explanatory document under subsection (3), and

(c) a declaration under subsection (4).

(3) The explanatory document must—

(a) introduce and explain any amendments made to retained EU law by each proposed regulation, and

(b) set out the reason why each such amendment is necessary (or, in the case where the Minister is unable to make a statement of necessity under subsection (4)(a), the reason why each such amendment is nevertheless considered appropriate).

(4) The declaration under subsection (2)(c) must either—

(a) state that, in the Minister’s view, the provisions of the draft regulations do not exceed what is necessary to prevent, remedy or mitigate any deficiency in retained EU law arising from the withdrawal of the United Kingdom from the EU (a “statement of necessity”), or

(b) include a statement to the effect that although the Minister is unable to make a statement of necessity the Government nevertheless proposes to exercise the power to make the regulations in the form of the draft.

(5) Subject as follows, if after the expiry of the 21-day period a committee of the House of Commons appointed to consider draft regulations under this section has not reported to the House of Commons a resolution in respect of the draft regulations laid under section 32(2A) or 42(6), the Minister may proceed to make a statutory instrument in the form of the draft regulations.

(6) A statutory instrument containing regulations under subsection (5) shall be subject to annulment in pursuance of a resolution of the House of Commons.

(7) The procedure in subsection (8) to (15) shall apply to the proposal for the draft regulations instead of the procedure in subsection (5) if—

(a) the House of Commons so resolves within the 21-day period,

(b) the committee appointed to consider draft regulations under this section so recommends within the 21-day period and the House of Commons does not by resolution reject the recommendation within that period, or

(c) the draft regulations contain provision to—

(i) establish a public authority in the United Kingdom,

(ii) provide for any function of an EU entity or public authority in a member State to be exercisable instead by a public authority in the United Kingdom established by regulations under sections 42, 43 or schedule 8,

(iii) provides for any function of an EU entity or public authority in a member State of making an instrument of a legislative character to be exercisable instead by a public authority in the United Kingdom,

(iv) imposes, or otherwise relates to, a fee in respect of a function exercisable by a public authority in the United Kingdom,

(v) creates, or widens the scope of, a criminal offence, or

(vi) creates or amends a power to legislate.

(8) The Minister must have regard to—

(a) any representations,

(b) any resolution of the House of Commons, and

(c) any recommendations of a committee of the House of Commons charged with reporting on the draft regulations, made during the 60-day period with regard to the draft regulations.

(9) If, after the expiry of the 60-day period, the Minister wishes to make regulations in the terms of the draft, the Minister must lay before the House of Commons a statement—

(a) stating whether any representations were made under subsection (8)(a), and

(b) if any representations were so made, giving details of them.

(10) The Minister may after the laying of such a statement make regulations in the terms of the draft if it is approved by a resolution of the House of Commons.

(11) However, a committee of the House of Commons charged with reporting on the draft regulations may, at any time after the laying of a statement under subsection (9) and before the draft regulations are approved by that House under subsection (10), recommend under this subsection that no further proceedings be taken in relation to the draft regulations.

(12) Where a recommendation is made by a committee of the House of Commons under subsection (11) in relation to draft regulations, no proceedings may be taken in relation to the draft regulations in the House of Commons under subsection (10) unless the recommendation is, in the same Session, rejected by resolution of the House of Commons.

(13) If, after the expiry of the 60-day period, the Minister wishes to make regulations consisting of a version of the draft regulations with material changes, the Minister must lay before Parliament—

(a) revised draft regulations, and

(b) a statement giving details of—

(i) any representations made under subsection (8)(a); and

(ii) the revisions proposed.

(14) The Minister may after laying revised draft regulations and a statement under subsection (9) make regulations in the terms of the revised draft if it is approved by a resolution of the House of Commons.

(15) However, a committee of the House of Commons charged with reporting on the revised draft regulations may, at any time after the revised draft regulations are laid under subsection (12) and before it is approved by the House of Commons under subsection (13), recommend under this subsection that no further proceedings be taken in relation to the revised draft regulations.

(16) Where a recommendation is made by a committee of the House of Commons under subsection (14) in relation to revised draft regulations, no proceedings may be taken in relation to the revised draft regulations in the House of Commons under subsection (13) unless the recommendation is, in the same Session, rejected by resolution of the House of Commons.

(17) In this section, references to the ‘21-day’ and ‘60-day’ periods in relation to any draft regulations are to the periods of 21 and 60 days beginning with the day on which the draft regulations were laid before Parliament.”

This new clause applies an amended version of the super-affirmative resolution procedure to certain powers to make regulations under Schedules 4 and 5, and Clause 42.

New clause 31—VAT deferral scheme—

“(1) This section applies if it appears to the Secretary of State that the United Kingdom will cease to be a member of the European Union taxation and customs union.

(2) The Secretary of State must by regulations introduce a domestic deferral scheme for UK importers.

(3) In designing a scheme under subsection (2), the Secretary of State must consult with whichever relevant stakeholders deemed by the Secretary of State to be appropriate.

(4) Regulations under subsection (2) may be made only if a draft of the regulations has been laid before, and approved by resolution of, the House of Commons.”

This new clause ensures that in the event that the UK is no longer a member of the EU VAT area, the Secretary of State must by draft affirmative regulation introduce a VAT deferral scheme.

New clause 32—Rules of origin—

“(1) Where the exigencies of trade so require, a document proving origin may be issued in the UK in accordance with the rules of origin in force in the country or territory of destination or any other method identifying the country where the goods were wholly obtained or underwent their last substantial transformation. The Secretary of State may by regulations specify—

(a) the bodies that certificate origin for the purposes of a certificate under subsection (1),

(b) the specifications of the certificate, and

(c) any other relevant factor.”

This new clause would allow a document proving origin to be issued in the UK and would allow the Secretary of State to make regulations specifying the bodies that can issue a certificate and the specifications of a certificate as well as other relevant factors.

New clause 33—Additional regulations requiring the affirmative procedure (No. 2)—

“(1) No regulations to which this section applies may be made unless a draft has been laid before and approved by a resolution of the House of Commons.

(2) This section applies to regulations under—

(a) section 8(1) (the customs tariff);

(b) section 14(1) (agricultural goods);

(c) section 19(1) (reliefs);

(d) section 22(1) (authorised economic operators);

(e) section 30 (general provision for the purposes of import duty);

(f) section 39(1) (export duties);

(g) section 42(5) (exclusion from principal VAT directive);

(h) section 47(2) (exclusion from or modification of EU law relating to excise duty).”

This new clause applies the affirmative resolution procedure to a number of powers in the Bill.

New clause 34—Exclusion from tariffs for land border—

“Upon the United Kingdom’s withdrawal from the European Union, the United Kingdom shall not charge any customs duty or impose any quotas on goods entering the United Kingdom across the land border between the Republic of Ireland and the United Kingdom.”

New clause 35—Exclusion from tariffs for goods imported from the Republic of Ireland—

“Part 1 of this Act shall not apply to the import of any good into the United Kingdom from the Republic of Ireland.”

New clause 36—Prohibition on collection of certain taxes or duties on behalf of territory without reciprocity—

“(1) Subject to subsection (2), it shall be unlawful for HMRC to account for any duty of customs or VAT or excise duty collected by HMRC to the Government of a country or territory outside the United Kingdom.

(2) Subsection (1) shall not apply if the Treasury declare by Order that arrangements have been entered into by Her Majesty’s Government and that government under which that government will account to HMRC for those duties and taxes collected in that country on a reciprocal basis.”

New clause 37—Single United Kingdom customs territory—

“(1) It shall be unlawful for Her Majesty‘s Government to enter into arrangements under which Northern Ireland forms part of a separate customs territory to Great Britain.

(2) For the purposes of this section “customs territory” shall have the same meaning as in the General Agreement on Tariffs and Trade, 1947, as amended.”

Amendment 26, in clause 2, page 2, line 3, at end insert

“or goods coming from the EEA”.

This amendment seeks to remove the Bill’s provisions to grant the UK Government the ability to impose customs on EEA goods.

Amendment 68, in clause 2, page 2, line 3, at end insert

“or goods entering the United Kingdom across the land border between the Republic of Ireland and the United Kingdom”.

Amendment 69, in clause 2, page 2, line 3, at end insert

“or goods imported into the United Kingdom from the Republic of Ireland.”

Government amendment 74.

Amendment 71, in clause 8, page 6, line 6, at end insert—

“(e) the interests of producers in the United Kingdom,

(f) the desirability of maintaining United Kingdom standards of animal welfare, food safety and environmental protection.”

This amendment would require the Treasury, when considering the rate of import duty that ought to apply to any goods, to have regard to the interests of UK producers (e.g. farmers) and to the desirability of ensuring that UK standards of animal welfare, food safety and environmental protection are not undermined by imports produced to lower standards.

Amendment 119, in clause 8, page 6, line 6, at end insert—

“(e) the impacts on sustainable development.”

This amendment requires the Treasury to have regard to Government obligations to sustainable development in considering the rate of import duty.

Government amendment 84.

Amendment 21, in clause 13, page 9, line 18, at end insert—

“(4A) Subsection (4B) applies where the TRA or the Secretary of State is considering whether the application of a remedy, or the acceptance of a recommendation to do so—

(a) is in the public interest, or

(b) meets either of the economic interest tests described in paragraph 25 of Schedule 4 or paragraph 21 of Schedule 5.

(4B) In making a consideration to which this subsection applies, notwithstanding the provisions of Schedules 4 and 5, the TRA or the Secretary of State must give special consideration to the need to eliminate the trade distorting effect of injurious dumping and to restore effective competition, and must presume the application of a remedy or the acceptance of a recommendation to do so to be in the public interest and to have met the economic interest test unless this special consideration is significantly outweighed.”

This amendment ensures that there is a presumption that if dumping is found, a remedial action will be taken.

Amendment 54, in clause 15, page 10, line 18, at end insert—

“(3) The Secretary of State must lay before the House of Commons an annual report on the exercise of the powers under this section including information on—

(a) the relevant international law authorising the exercise of the powers in each case, and

(b) the matters in dispute or issues arising in each case.”

This amendment requires the Government to report on the circumstances of, and international law basis for, each variation of tariffs as a result of a trade dispute.

Amendment 55, in clause 22, page 14, line 36, at end insert—

“(4) Within three months of the passing of this Act, the Chancellor of the Exchequer must lay before the House of Commons a report on the proposed exercise of the power of the HMRC Commissioners to make regulations under subsection (1), including in particular—

(a) the proposed criteria to be applied in determining whether or not any person should be an authorised economic operator,

(b) an assessment of the structure of the authorised economic operator system in Germany, Austria and such other countries as the Chancellor of the Exchequer considers relevant,

(c) the proposed differences between the structure that is proposed to be established by the first exercise of the power to make regulations under subsection (1) and each of those structures described in accordance with paragraph (b),

(d) the level of proposed resources to be allocated by the HMRC Commissioners for the authorisation of new authorised economic operators, and

(e) the target timetable for the authorisation of—

(i) new authorised economic operators in each class, and

(ii) authorised economic operator certification renewals in each class.”

This amendment requires the Government to report on the proposed operation of the powers of the HMRC under Clause 22, including comparative information.

Amendment 33, in clause 25, page 17, line 2, leave out “Data Protection Act 1998” and insert “data protection legislation”.

This amendment and Amendment 34 seeks to provide that the powers of disclosure cannot be exercised in breach of the updated data protection framework to be enshrined in the Data Protection Act 2018.

Amendment 34, in clause 25, page 17, line 4, at end insert—

“(8) In this section, “the data protection legislation” has the same meaning as in the Data Protection Act 2018.”

Amendment 70, page 18, line 11, leave out clause 31.

Amendment 72, in clause 31, page 18, line 34, at end insert—

“(4A) In the case of a customs union between the United Kingdom and the European Union, Her Majesty may not make a declaration by Order In Council under subsection (4) unless the arrangements have been approved by an Act of Parliament.”

This amendment provides that the delegated powers under this clause may not be exercised until a proposed customs union with the European Union has been approved by a separate Act of Parliament.

Amendment 8, page 18, line 38, at beginning insert “subject to subsection (8)”.

This amendment paves the way for Amendment 9.

Amendment 9, page 19, line 10, at end insert—

“(8) When the power under subsection (4) has been exercised in respect of a customs union between the United Kingdom and the European Union, the powers in subsections (4) and (5) may not be exercised so as to—

(a) provide that that customs union shall cease to have effect, or

(b) modify or disapply provision made by or under any other Act in a way that provides that that customs union shall cease to have effect.”

This amendment would prevent the delegated powers under Clause 31 being used to end a customs union once the transition period has finished. It provides that the delegated powers under Clause 31, once exercised in relation to a customs union with the EU, cannot be exercised to provide for departure from such a union.

Amendment 56, in clause 32, page 19, line 14, leave out subsections (2) to (4).

This amendment is consequential on NC33.

Government amendment 75.

Amendment 35, in clause 32, page 19, line 18, at end insert—

“(c) regulations under paragraph 4(2), 9(3) or 14(4) of Schedule 4.”

This amendment provides for regulations made under certain provisions of Schedule 4 (regarding dumping of goods or foreign subsidies causing injury to UK industry) to be subject to the made affirmative procedure rather than the negative procedure.

Amendment 36, page 19, line 18, at end insert—

“(c) regulations under paragraph 1(2), 3(2), 4(2) or 5 of Schedule 5.”

This amendment provides for regulations made under certain provisions of Schedule 5 (regarding an increase in imports causing serious injury to UK producers) to be subject to the made affirmative procedure rather than the negative procedure.

Government amendment 76.

Amendment 37, page 19, line 21, at end insert—

“(2A) Section (Super-affirmative resolution procedure) applies to regulations under paragraph 1(3), 3(5), 5(2), or 6(2) of Schedule 4.”

This amendment provides for regulations made under certain provisions of Schedule 4 (regarding dumping of goods or foreign subsidies causing injury to UK industry) to be subject to the superaffirmative resolution procedure, as defined in NC12.

Amendment 38, page 19, line 21, at end insert—

“(2A) Section (Super-affirmative resolution procedure) applies to regulations under paragraph 2(2) or 2(3) of Schedule 5.”

This amendment provides for regulations made under certain provisions of Schedule 5 (regarding an increase in imports causing serious injury to UK producers) to be subject to the superaffirmative resolution procedure, as defined in NC12.

Amendment 57, page 19, line 32, leave out “subsection (2)” and insert

“section (Additional regulations requiring the affirmative procedure (Amendment 2))”.

This amendment is consequential on NC33.

Amendment 39, page 19, line 32, after “(2)” insert “or (2A)”.

This amendment is consequential to Amendment 38.

Amendment 40, page 27, line 5, after second “to”, insert “number”.

This amendment clarifies that goods may be defined for the purposes of the export tariff simply by reference to their number.

Government amendment 77.

Amendment 41, in clause 39, page 27, line 12, at end insert—

“(aa) the interests of manufacturers in the United Kingdom,”.

This amendment requires the Treasury to have regard to the interests of manufacturers in considering the rate of export duty.

Amendment 42, page 27, line 17, at end insert “and

(e) the public interest.”

Amendment 120, page 27, line 17, at end insert “and

(e) the impacts on sustainable development.”

This amendment requires the Treasury to have regard to Government obligations towards sustainable development in considering the rate of export duty.

Amendment 58, in clause 40, page 27, line 35, leave out subsections (2) to (4).

This amendment is consequential on NC33.

Amendment 59, page 28, line 7, leave out “subsection (2)” and insert

“section (Additional regulations requiring the affirmative procedure (Amendment 2))”.

This amendment is consequential on NC33.

Amendment 43, in clause 42, page 29, line 23, leave out subsection (1).

This amendment would be to remove from the Bill the provision that retained EU law on VAT should not have effect, despite forming part of UK law as a result of Clause 3 of the European.

Amendment 44, page 29, line 44, leave out from “regulation” to end of line 45.

The effect of this amendment would be to ensure that the UK Government does not exclude aspects of the EU’s principal VAT Directive that remain relevant by delegated legislation.

Government amendment 78.

Amendment 45, page 30, line 1, leave out subsection (6) and insert—

“(6) Section (Super-affirmative resolution procedure) applies to regulations made under this section.”

This amendment applies the super-affirmative resolution procedure, described in NC12, to regulations made under this section.

Amendment 60, page 30, line 1, leave out subsection (6).

This amendment is consequential on NC33.

Government amendment 79.

Amendment 62, page 30, line 12, at end insert—

“(9) This section shall, subject to subsection (10), cease to have effect at the end of the period of three years beginning with the day on which this Act is passed.

(10) The Treasury may by regulations provide that this section shall continue in force for an additional period of up to three years from the end of the period specified in subsection (9).

(11) The power to make regulations under subsection (10) may only be exercised once.

(12) No regulations may be made under subsection (10) unless a draft has been laid before and approved by a resolution of the House of Commons.”

This amendment sunsets the provisions of Clause 42.

Amendment 63, in clause 45, page 31, line 25, at end insert—

“(5) This section shall, subject to subsection (6), cease to have effect at the end of the period of three years beginning with the day on which this Act is passed.

(6) The Treasury may by regulations provide that this section shall continue in force for an additional period of up to three years from the end of the period specified in subsection (5).

(7) The power to make regulations under subsection (7) may only be exercised once.

(8) No regulations may be made under subsection (7) unless a draft has been laid before and approved by a resolution of the House of Commons.”

This amendment sunsets the provisions of Clause 45.

Government amendment 80.

Amendment 64, in clause 47, page 33, line 7, at end insert—

“(5) This section shall, subject to subsection (6), cease to have effect at the end of the period of three years beginning with the day on which this Act is passed.

(6) The Treasury may by regulations provide that this section shall continue in force for an additional period of up to three years from the end of the period specified in subsection (5).

(7) The power to make regulations under subsection (7) may only be exercised once.

(8) No regulations may be made under subsection (7) unless a draft has been laid before and approved by a resolution of the House of Commons.”

This amendment sunsets the provisions of Clause 47.

Government amendment 81.

Amendment 22, in clause 48, page 33, line 29, at end insert—

“(5A) No regulations may be made under section 47 unless a draft has been laid before, and approved by a resolution of, the House of Commons.”

Government amendment 23.

Amendment 61, page 33, line 31, leave out “applies” and insert

“or section (Additional regulations requiring the affirmative procedure (Amendment 2)) apply”.

This amendment is consequential on NC33.

Amendment 46, in clause 51, page 34, line 39, leave out second “appropriate” and insert “necessary”.

This amendment provides that the power to make regulations about VAT, customs duty and excise duty in consequence of UK withdrawal from the EU is only exercised when it is necessary to do so.

Government amendment 82.

Amendment 10, page 35, line 1, leave out paragraph (a).

This amendment prevents regulations under Clause 51 from making any provision as might be made by an Act of Parliament.

Amendment 67, page 35, line 2, after “Act”, insert

“other than provision creating a delegated power”.

This amendment removes the power for regulations made under Clause 51 to create further delegated powers (tertiary legislation).

Amendment 47, page 35, line 4, at end insert—

“(c) may not be made after 29 March 2021.

‘(2A) The Secretary of State may by regulations amend the date in paragraph (1)(c) to ensure that the day specified is the day that any transition period related to the United Kingdom’s withdrawal from the European Union comes to an end.

(2B) A statutory instrument containing regulations under subsection (2A) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”

This amendment inserts a sunset provision that disallows any regulations to be made under Clause 51 after 29 March 2021, while also allowing the Secretary of State to alter that date, by regulations subject to the affirmative procedure, in the event that this is not the date on which any transition period following the United Kingdom’s withdrawal from the European Union comes to an end.

Amendment 48, page 35, line 10, after “section” insert

“, apart from regulations under subsection (2A),”.

This amendment is consequential to Amendment 47.

Amendment 49, page 35, line 25, after “apply” insert

“, apart from regulations under subsection (2A),”.

This amendment is consequential to Amendment 47.

Amendment 65, page 35, line 38, at end insert—

“(10) This section shall, subject to subsection (11), cease to have effect at the end of the period of three years beginning with the day on which this Act is passed.

(11) The Treasury may by regulations provide that this section shall continue in force for an additional period of up to three years from the end of the period specified in subsection (10).

(12) The power to make regulations under subsection (11) may only be exercised once.

(13) No regulations may be made under subsection (11) unless a draft has been laid before and approved by a resolution of the House of Commons.”

This amendment sunsets the provisions of Clause 51.

Amendment 50, in clause 54, page 37, line 5, leave out second “appropriate” and insert “necessary”.

This amendment ensures that regulations making consequential and transitional provision may only be made when necessary.

Amendment 51, page 37, line 14, leave out “appropriate” and insert “necessary”.

This amendment ensures that regulations making consequential and transitional provision may only be made when necessary.

Amendment 2, in clause 55, in clause 55, page 38, line 15, leave out from “force” to end of line 16 and insert

“in accordance with the provisions of section (EU Customs Union and pre-commencement requirements) (7).”

This amendment is consequential on NC1.

Amendment 13, page 38, line 15, leave out from “force” to end of line 16 and insert

“in accordance with the provisions of section (Preparedness for a customs union with the European Union) (5)”.

This amendment is consequential on NC11.

Amendment 20, page 38, line 15, leave out from “force” to end of line 16 and insert

“in accordance with the provisions of section (Implementation of a customs union with the EU as a negotiating objective) (7)”.

This amendment is consequential on NC12.

Amendment 5, page 38, line 17, leave out paragraphs (a) to (d) and insert—

“(a) section (Pre-commencement impact assessment of leaving the EU Customs Union), and”.

This amendment is consequential on NC6.

Amendment 52, page 38, line 17, after “(2)”, insert “and (2A)”.

This amendment paves the way for Amendment 53.

Amendment 6, page 38, line 24, leave out subsection (2).

This amendment is consequential on NC6.

Amendment 3, page 38, line 32, at end insert—

“(2A) No regulations may be made for the purpose of appointing a day for the coming into force of paragraph 1 of Schedule 7 (replacement of EU customs duties) unless a draft has been laid before, and approved by a resolution of, the House of Commons.”

This amendment requires regulations commencing paragraph 1 of Schedule 7 to be subject to the affirmative procedure.

Amendment 4, page 38, line 32, at end insert—

“(2A) No regulations may be made for the purpose of appointing a day for the coming into force of any provision in Part 3 (amending or superseding EU law relating to VAT) unless a draft has been laid before, and approved by a resolution of, the House of Commons.”

This amendment requires regulations commencing provisions in Part 3 to be subject to the affirmative procedure.

Amendment 28, page 38, line 32, at end insert—

“(2A) Regulations under subsection (2) may not be made until the Secretary of State has consulted with the Scottish Ministers on the effect of deviating from EU levels of import duties in relation to—

(a) preferential rates,

(b) dumping of goods and foreign subsidies,

(c) international disputes,

(d) replacement of EU trade duties.”

This amendment would require the UK Government to consult Scottish Ministers before deviating from EU levels of import duties in relation to (a) preferential rates (b) dumping of goods and foreign subsidies (c) international disputes (d) replacement of EU trade duties.

Amendment 29, page 38, line 32, at end insert—

“(2A) The following provisions come into force on such day as the Secretary of State may be regulations under this section appoint—

(a) section 41 (abolition of acquisition VAT and extension of import VAT),

(b) section 42 (EU law related to VAT), and

(c) section 43 and Schedule 8 (VAT amendment connected with withdrawal from EU).

(2B) Regulations under subsection (2A) may not be made until the Secretary of State has consulted with the Scottish Ministers on—

(a) the effect of leaving the EU VAT area on the lawful importation of goods into the United Kingdom from the European Union, and

(b) the effect of abolishing acquisition VAT and extending import VAT on the lawful importation of goods into the United Kingdom from the European Union.”

This amendment would require the UK Government to consult with Scottish Ministers before leaving the EU VAT Area before any system of upfront import VAT could be applied.

Amendment 31, page 38, line 32, at end insert—

“(2A) Regulations under subsection (2) may not be made until the Secretary of State has laid before the House of Commons an impact assessment that considers the effect on Scotland of deviating from EU levels of import duties in relation to

(a) preferential rates

(b) dumping of goods and foreign subsidies

(c) international disputes

(d) replacement of EU trade duties.”

This amendment would require the UK Government to make a Scottish impact assessment on the effects of deviating from EU levels of import duties in relation to (a) preferential rates (b) dumping of goods and foreign subsidies (c) international disputes (d) replacement of EU trade duties.

Amendment 53, page 38, line 32, at end insert—

“(2A) The following provisions come into force on such day as the Secretary of State may be regulations under this section appoint—

(a) section 41 (abolition of acquisition VAT and extension of import VAT),

(b) section 42 (EU law related to VAT), and

(c) section 43 and Schedule 8 (VAT amendment connected with withdrawal from EU).

(2B) Regulations under subsection (2A) may not be made until the Secretary of State has laid before the House of Commons an impact assessment that considers—

(a) the effect of leaving the EU VAT area on the lawful importation of goods into the United Kingdom from the European Union, and

(b) the effect of abolishing acquisition VAT and extending import VAT on the lawful importation of goods into the United Kingdom from the European Union.”

This amendment would require the UK Government to make an impact assessment on the effects of leaving the EU VAT Area before any system of upfront import VAT could be applied to goods lawfully being imported into the UK from the European Union under EU Law.

Amendment 7, page 38, line 34, at end insert—

“(3A) Subsection (3) is subject to section (Pre-commencement impact assessment of leaving the EU Customs Union).”

This amendment is consequential on NC6.

Amendment 15, in schedule 4, page 58, line 2, after “consumption”, insert “by independent customers”.

This amendment requires the comparable price for the purposes of determining the normal value to be assessed with respect to consumption by independent customers.

Amendment 16, page 58, line 4, at end insert

“sub-paragraphs (2A) to (2L) and with”.

This amendment paves the way for Amendment 17.

Amendment 17, page 58, line 6, at end insert—

“(2A) For the purposes of sub-paragraph (2) the following shall apply.

(2B) Where the exporter in the exporting country does not produce or does not sell the like goods, the normal value may be established on the basis of prices of other sellers or producers.

(2C) Prices between parties which appear to be associated or to have a compensatory arrangement with each other shall not be considered to be in the ordinary course of trade and shall not be used to establish the normal value unless it is determined that they are unaffected by the relationship.

(2D) Sales of the like goods intended for consumption in the exporting foreign country or territory shall normally be used to determine the normal value if such sales volume constitutes 5% or more of the sales volume exported to the United Kingdom, but a lower volume of sales may be used when, for example, the prices charged are considered representative for the market concerned.

(2E) When there are no or insufficient sales of the like goods in the ordinary course of trade, or where, because of the particular market situation, such sales do not permit a proper comparison, the normal value shall be calculated on the basis of—

(a) the cost of production in the country of origin plus a reasonable amount for selling, general and administrative costs and for profits, or

(b) the export prices, in the ordinary course of trade, to an appropriate third country, provided that those prices are representative.

(2F) Sales of the like goods in the domestic market of the exporting foreign country or territory, or export sales to a third country, at prices below unit production costs plus selling, general and administrative costs shall be treated as not being in the ordinary course of trade by reason of price, and disregarded in determining the normal value, if it is determined that such sales are made within an extended period in substantial quantities, and are at prices which do not provide for the recovery of all costs within a reasonable period of time.

(2G) The amounts for selling, for general and administrative costs and for profits shall be based whenever possible on actual data pertaining to production and sales, in the ordinary course of trade, of the like product by the exporter or producer under investigation.

(2H) When it is not possible to determine such amounts on the basis prescribed in sub-paragraph (2G), the amounts may be determined on the basis of—

(a) the weighted average of the actual amounts determined for other exporters or producers subject to investigation in respect of production and sales of the like product in the domestic market of the country of origin,

(b) the actual amounts applicable to production and sales, in the ordinary course of trade, of the same general category of products for the exporter or producer in question in the domestic market of the country of origin,

(c) any other reasonable method, provided that the amount for profit so established shall not exceed the profit normally realised by other exporters or producers on sales of products of the same general category in the domestic market of the country of origin.

(2I) If the TRA determines that it is not appropriate to use domestic prices and costs in the exporting country due to the existence in that country of significant distortions, the normal value shall be constructed exclusively on the basis of costs of production and sale reflecting undistorted prices or benchmarks, subject to the following provisions.

(2J) “Significant distortions” for this purpose means distortions which occur when reported prices or costs, including the costs of raw materials and energy, are not the result of free market forces because they are affected by substantial government intervention.

(2K) The TRA shall use the corresponding costs of production and sale in an appropriate representative country with a similar level of economic development as the exporting country, provided the relevant data are readily available; and, where there is more than one such country, preference shall be given, where appropriate, to countries with an adequate level of social and environmental protection.

(2L) If such data are not available, the TRA may use any other evidence it deems appropriate for establishing a fair normal value, including undistorted international prices, costs, or benchmarks; or costs in the exporting country to the extent that they are positively established not to be distorted.”

This amendment makes further provision on the face of the Bill about how the normal value and the comparable price are to be determined in certain circumstances.

Amendment 18, page 58, line 6, at end insert—

“(2M) A fair comparison shall be made between the export price and the normal value.

(2N) The comparison for the purposes of sub-paragraph (4) shall be made at the same level of trade and in respect of sales made at, as closely as possible, the same time and with due account taken of other differences which affect price comparability.

(2O) Where the normal value and the export price as established are not on such a comparable basis, due allowance, in the form of adjustments, shall be made in each case, on its merits, for differences in factors which are claimed, and demonstrated, to affect prices and price comparability.”

This amendment provides for fair comparison between the export price and the normal value.

Amendment 19, page 58, leave out lines 8 to 15 and insert—

“(a) to provide guidance with respect to the application of sub-paragraphs (2) to (2O).”

This amendment replaces the provision for definitions of key terms and the determination of related matters in individual cases with guidance about the application of the existing provisions and those contained in Amendments 17 and 18.

Amendment 25, page 58, line 12, and end insert—

“(v) ‘specified cases where it is not appropriate to use the price in paragraph 2(a)” including details on determining normal value in the presence of state distortions and non-market economy situations.’

This amendment would provide certainty by placing a marker in primary legislation to ensure that secondary legislation will clarify how, in anti-dumping investigations, the TRA will calculate the level of dumping for cases where the domestic prices of the alleged dumped imports cannot be used.

Government amendments 103 to 112.

Amendment 24, page 76, line 12, at end insert—

“25A (1) The TRA shall, in determining the amount which it is satisfied would be adequate to remove the injury described in paragraph 14(3)(b) or 18(4)(b), take account of all elements of the material injury being caused to the UK industry, including, but not limited to, the impact of reduced sales volumes, price suppression and curtailment of investment. Regulations may make further provision for this purpose.

(2) Regulations may make provision for specific circumstances in which paragraph 14(3)(b) or 18(4)(b) may not apply.”

Amendment 32, page 76, line 12, at end insert—

“25A (1) The TRA shall, in determining the amount which it is satisfied would be adequate to remove the injury described in paragraph 14(3)(b) or 18(4)(b), take account of all elements of the material injury being caused to UK industry, consumers and public administration and finances, including, but not limited to, the impact of reduced sales volumes, price suppression, curtailment of investment and availability of goods. Regulations may make further provision for this purpose.

(2) Regulations may make provision for specific circumstances in which paragraph 14(3)(b) or 18(4)(b) may not apply.

(3) No regulations may be made under sub-paragraph (2) unless—

(a) A Minister of the Crown has made a statement to the House of Commons that Her Majesty’s Government has negotiated with the relevant foreign government in order to remedy the activity causing injury to UK industry;

(b) lay before the House of Commons an impact assessment of implementing the regulations; and

(c) a draft of those regulations has been laid before, and approved by a resolution of, the House of Commons.”

This amendment ensures the TRA considers a wider range of economic variables when considering policy responses to trade disputes and allows UK ministers to make associated regulations setting aside this wider set of considerations, so long as the UK Government has entered negotiations with the third country in question, provided an impact assessment on policy changes and that the policy change has been approved by a resolution in the House of Commons.

Government amendment 113.

Government amendments 85 to 96.

Government amendment 114.

Government amendments 97 and 98.

Government amendments 115 and 116.

Government amendment 99.

Government amendments 117 and 118.

Government amendments 100 to 102.

Amendment 11, in schedule 7, page 122, line 35, at end insert—

“88A (1) Section 100A (designation of free zones) is amended as follows.

(2) After subsection (2), insert—

‘(2A) The Treasury must, no later than 2 years after the passing of the Taxation (Cross-border Trade) Act 2018, exercise the power under subsection (1) to designate Teesport as a free zone.’

(3) After subsection (3), insert—

‘(3A) The first exercise of the power under subsection (1) in pursuance of the duty under subsection (2A) shall be for a period of no less than 5 years.’”

This amendment requires the Treasury to designate Teesport as a free zone for customs purposes.

Amendment 73, in schedule 8, page 135, leave out paragraph 14.

Government amendment 83.

[Anna Soubry]

I rise to speak in support of new clause 1 and new clause 12, and I shall also seek to speak briefly against new clause 36 and amendment 73. I hope that there will be Divisions, in the event of which I will vote against new clause 36 and amendment 73. It is my firm view that it is deeply regrettable that the Government have accepted the new clause and amendment, even though they clearly seek to undermine, if not wreck, the great advances made in the White Paper.

I shall speak, as I like to think I always do, with openness, frankness and honesty. When I became a Business Minister in David Cameron’s Government in 2015, I would be the first to admit that I did not know the finer details of how many of our manufacturing industries and businesses actually worked. I knew about supply chains and their value, but I could not claim, in any way, shape or form, to be particularly familiar with them. I relished my brief, though, so I was soon enmeshed in the manufacturing sector in particular. For example, I had responsibility for the automotive sector, aerospace and, of course, the steel industry, which many Members will remember was having a particularly difficult time. I soon became not quite an expert, but I certainly knew my brief. I understood how supply chains worked, the value of frictionless trade and what this thing called “just in time” was really all about. I had never actually seen it, though, until Friday, when I went to the Toyota factory at Burnaston, which is just outside Derby. I would make it compulsory for every single Member to go to Toyota—they could go to another car manufacturer in Swindon, or to Nissan in Sunderland, as I did shortly after the EU referendum—so that they could begin to understand what a supply chain is, why it relies on frictionless borders and what “just in time” means.

Let me give Members a bit of history about that remarkable Toyota plant just outside Derby. It is actually a legacy to Margaret Thatcher. It opened at the beginning of the 1990s. Some of us are old enough to remember those times and what had happened in many of our traditional manufacturing industries. My right hon. Friend the Member for Loughborough (Nicky Morgan), who is sitting next to me, has a business in her constituency called Brush. It is a long-standing business that has provided good-quality jobs for generations. I had Siemens in my constituency. At one time, I had a number of miners who worked in local pits in north Nottinghamshire and in Derbyshire. In due course, those pits closed, as did Siemens.

When we talk about Brexit, people extrapolate all sorts of things from the vote. One thing that definitely occurred—I know that it occurred for people in my constituency—was that a number of people voted leave because they felt left behind by what we call this global world and the global way of doing business. These people used to work, often down the pits in Nottinghamshire—I am from Worksop, so I understand the sort of lives that miners had and I have no romantic attachment to the coal mining industry—and in factories such as Siemens in high-quality jobs. Those jobs invariably paid good money, but they also added even more value to people’s lives. It was not just about the fact that it was work, which is, in itself, the right thing to do; it was not just the wages, which, in the deep coal mines in Nottinghamshire and at Siemens, were very good; and it was not just the trade and the skills that they conveyed—it was also that feeling of community and being valued. It was about all those great traditional British manufacturing values, which, in truth, began to disappear through the ’80s and into the ’90s. What the great Japanese car manufacturers brought back was much of that high-valued, highly skilled, super-effective and super-efficient manufacturing industry. That practice was not just confined to the automotive sector, because it runs right across many other sectors in manufacturing, which makes up 20% of our economy.

I say to all Conservative Members, “Shame on you if you have a manufacturer in your constituency that you have not been to to understand how a modern manufacturing business works and how it needs frictionless trade for the supply chains to work. Shame on you if you have not taken the opportunity to go to those places that might be outwith your constituency, but where your constituents work.” I say that very gently—

[Charlie Elphicke (Dover) (Ind)]

rose—

[Anna Soubry]

I will take my hon. Friend’s intervention in a moment, but not yet.

I say that very gently to my hon. Friend the Member for Mansfield (Ben Bradley), as many of his constituents work in exactly the sorts of manufacturing industries that I am describing. No doubt, like a number of my constituents, some of them work at Toyota. When Members see how these wonderful manufacturing businesses work—whether it is ceramics, cars, automotives, potteries or glass—they will understand the importance of frictionless trade. What that means in the real world is that, at Toyota in Burnaston, parts arrive on lorries, which have come through the tunnel and straight up the motorway, and within three hours they are on the assembly line. It is an astonishing and an incredible achievement that this country should be proud of. It is part of Margaret Thatcher’s legacy—

[Sir Edward Leigh (Gainsborough) (Con)]

Will my right hon. Friend give way?

[Anna Soubry]

I will take my hon. Friend’s intervention in a moment.

It was Margaret Thatcher who, as a proud Conservative, championed free trade. I am a Tory. I believe in business. I believe in capitalism and in enterprise. I believe in our economy as it provides jobs and prosperity. It is indeed an engine of aspiration for so many of my constituents who want to see themselves going into apprenticeships at Rolls-Royce as much as they would like to go the finest universities.

[Sir Edward Leigh]

I knew Margaret Thatcher; I worked for Margaret Thatcher. My right hon. Friend ain’t no Margaret Thatcher.

[Anna Soubry]

I do not pretend to be able to walk in Margaret Thatcher’s boots, but I have read her speeches about the advantages of the single market. She was a huge champion—probably the biggest champion—of the single market. It was Margaret Thatcher who went over to Japan and promised the Japanese that our country would always stay in the single market. On that basis, Japanese business invested billions of pounds in this country.

My hon. Friend attacks me in a wholly unnecessary and really rather foolish way, but I hope that he will speak freely and honestly in our debate and give his assessment of what is facing our country if we do not get Brexit right. It is all well and good for Members to have their ideologically-driven, hard Brexit ideas when they are not able to face up to the reality of what they mean for people in my constituency and the rest of our country.

[Sir Desmond Swayne (New Forest West) (Con)]

Will my right hon. Friend give way?

--- Later in debate ---

[Charlie Elphicke]

Will my right hon. Friend give way?

[Anna Soubry]

In a moment.

The reality, which is faced in the White Paper, is that if we do not deliver frictionless trade in the way in which companies such as Toyota need and demand, they will simply not be able to operate. Some 81% of Toyota cars produced at Burnaston are exported into the European Union. And before anybody says, “Well, there will be new markets”—those unicorns that our Government will be chasing in new deals—please understand how the modern manufacturing industry works. Companies such as Toyota already make cars in other parts of the world to satisfy and supply the local market.

[Nicky Morgan (Loughborough) (Con)]

Will my right hon. Friend give way?

[Charlie Elphicke]

Will my right hon. Friend give way?

[Anna Soubry]

I will give way to my right hon. Friend the Member for Loughborough and then I will come down the row.

[Nicky Morgan]

Does not the intervention on my right hon. Friend made by our hon. Friend the Member for Gainsborough (Sir Edward Leigh) show what is the matter with this Brexit debate? Rather than talking about the detail and the risk to thousands of jobs across the country in our manufacturing sector—the Conservative party has championed that sector since 2010—he prefers to trade insults and trade on personalities.

[Anna Soubry]

Here is a surprise: I completely agree with my right hon. Friend.

[Charlie Elphicke]

Will my right hon. Friend give way?

[Anna Soubry]

I will.

[Sir Desmond Swayne]

rose—

[Sir Bernard Jenkin]

rose—

[Anna Soubry]

I said that I would go down the row first. In a moment gents; hang on.

[Charlie Elphicke]

I have been listening with great interest to my right hon. Friend’s speech. I am a former remainer and fellow believer in free enterprise, which was why I set out a detailed plan on how we can have frictionless trade using the World Trade Organisation trade facilitation agreement that was entered into in 2017.

My constituents have some questions that I would like to pose to my right hon. Friend. Why is it that so many lorries come in through Dover laden with goods yet so many return empty? Why is there a £100 billion trade surplus for the European Union? Why should we give the European Union access to our goods market but not insist on access to our financial services market after we leave the European Union?

[Anna Soubry]

I do not wish to be rude to my hon. Friend, but that really is the stuff of madness. Of course we need to export more, but here is the real question that he should be asking. At the moment, a lorry that comes in from the European Union through Dover will take, at the most, two minutes to go through. If it comes from outside the European Union, the process takes 20 minutes at the least, and at the most—and more typically—it takes two hours. How does that transpose to the manufacturing sector and to the Toyota workers outside Derby—some 3,000 people, with three to five times as many in the supply chains?

I say to my hon. Friend that this, Sir, is the real world. In the real world, when Toyota makes an order for car seats, they are delivered absolutely ready on to the production line within four hours of the order being placed. If we do not deliver frictionless trade, either through a customs union or some magical third way that the Prime Minister thinks she can deliver—good luck to her on that—thousands of jobs will go, and hon. Members sitting on the Government Benches, in private conversations, know that to be the case. What they have said in those private conversations is that the loss of hundreds of thousands of jobs will be worth it to regain our country’s sovereignty—tell that to the people who voted leave in my constituency. Nobody voted to be poorer, and nobody voted leave on the basis that somebody with a gold-plated pension and inherited wealth would take their jobs away from them.

[Sir Desmond Swayne]

I have a very successful manufacturer in my constituency abiding by the very disciplines that my right hon. Friend has, rightly, been so effusive about. Imagine, then, my surprise when I discovered that the proprietor and chief executive of this organisation, Col-Tec—one Mike Bailey—was to be my opponent as the UKIP candidate in the New Forest West division.

[Anna Soubry]

I will take another intervention.

[Sir Bernard Jenkin]

I think the point that my right hon. Friend did not want to take is that there are plenty of businessmen who are in favour of leaving the European Union.

The point that I wanted to raise with my right hon. Friend is that her whole argument is passionately based on the fallacy that one cannot have just-in-time supply chains crossing international customs frontiers. In fact, that is the way that most of the rest of the world trades. At Toyota in her own constituency—I met Toyota last week—quite a substantial proportion of its componentry arrives from outside the European Union to be bolted on to its cars. She is putting up these completely false fears that just-in-time supply chains are threatened by trading across customs frontiers.

[Anna Soubry]

I have to say to my hon. Friend that that is absolute codswallop. When I went to Toyota, we were shown exactly the places where the parts had come from. For example, some parts had come from Japan. There was a special arrangement with Japan whereby the parts come into the factory and sit in a bonded warehouse. Those parts number less than 1% of the total. Toyota has 2.5 million parts coming into that factory, and the vast majority come from the European Union—it relies on frictionless trade.

With great respect to my hon. Friend, he is somebody who makes the case that we should be a member of the World Trade Organisation. Let us just get this one straight. If our country joins the World Trade Organisation—[Interruption.] Well, we are a member through our membership of the European Union. If we are a member of the WTO in our own right, we will have to abide by its rules, which say that every member must secure its borders—I repeat, must secure its borders. That does not just mean that our country, when we leave the European Union, must secure its borders, but that the European Union, whether it likes or not, must secure its borders. What does that mean? There will have to be a hard border between Northern Ireland and the Republic of Ireland. It is dishonest and disingenuous for people to stand up and make out that something other than that is the reality.

The White Paper faces up to Brexit reality, and that is what Conservative Members must now do. We have to face that reality, just like I have had to face the reality that we are leaving the European Union. Hon. Members have to do the right thing by their constituents and put trade and business at the heart of Brexit.

[Vicky Ford (Chelmsford) (Con)]

I want to go back to the point about enforcing our border. Some people say that, if we were trading under WTO rules, we would not need to have a border in Ireland, but under the WTO’s most-favoured-nation rules, if we did not enforce the border in Ireland, we would be in breach of our agreements with other parts of the world. We would have no right to say, “No border.” Furthermore, if Ireland did not enforce the border with the rest of the UK, it would be in breach of its obligations to the EU, and if the EU did not require Ireland to respect the border, it would be in breach of its obligations across the world. So I thank my right hon. Friend for making that point so clearly.

[Anna Soubry]

That was a very long but very good intervention.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I have heard exactly the same points from businesses in my community. I have heard the same points about the Northern Ireland-Ireland border, too. That is why I favour staying in a customs union. The White Paper is full of magical thinking, but the amendments tabled by some in the right hon. Lady’s party directly contradict what is in the White Paper, because what they really want is a reckless no deal Brexit in which we crash out, with all the damage that will cause.

[Anna Soubry]

I completely agree. I say to my Government that they are in grave danger of not just losing the plot but losing a considerable amount of support from the people of this country unless we get Brexit right. The people who put their names to those amendments—notably new clause 36 and amendment 73—did so not to be helpful to the Government and to support the White Paper. We know that from their public proclamations, in which they have tried to trash the White Paper.

I made it clear to the Whips and to—well, actually, to the Financial Secretary to the Treasury, for whom I have a lot of time because he is a very good Minister, a very good man and a very good constituency MP. I say that because I have been to his constituency—

[Mr Edward Vaizey (Wantage) (Con)]

That’s your career over, Mel.

[Anna Soubry]

For the record, that was said by my hon. Friend the Member for Huntingdon (Mr Djanogly). If anyone else had said it, I would have been very rude. [Interruption.] Sorry. Scrub that; it was my right hon. Friend the Member for Wantage (Mr Vaizey)—ever the trouble maker.

This is really serious. I told the Minister that I would not press my amendments to a vote. That is not because I lack courage—in fact, given events, I would like to think I have a bit of courage. Some say I do not have a fear gene at all. Just to remind hon. Members, three people have received custodial sentences for the death threats I have received. I am getting a bit tired of being called a traitor. Certain people on these Benches support a newspaper that, disgracefully, had the temerity to suggest that the Prime Minister of our country might in some way have committed treason by the production of this White Paper. That is outrageous. Right hon. and hon. Members on these Benches really need a bit of a reality check, not just on Brexit but on the way this party is conducting itself and on who they choose to call their friends.

Let me return to why I will not press my amendments to a vote.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. Before the right hon. Lady returns to the substance of her remarks, I just point out to her that she has already had 21 minutes of the debate, and—[Hon. Members: “More!”] Order. This is not a music hall. The right hon. Lady is perfectly in order—she has an awful lot of things to deal with and she has taken a lot of interventions—but I know that she will quite soon begin to come to a peroration.

[Anna Soubry]

By remarkable coincidence, Madam Deputy Speaker, I am coming to the conclusion of my remarks. I want to explain why I will not press my amendments to a vote, as I indicated to the Minister last week. The reason is the production of the White Paper.

I will be very frank: the White Paper does not go as far as it should—it is silent on services, which make up 80% of our economy—but I welcome it because it absolutely marks that our Prime Minister understands the needs of British business, in particular manufacturing businesses, and is determined to do the right thing. She has come up with this third way. Whether she can achieve it remains to be seen, but I decided not to press my amendments to a vote because of my support for the White Paper and my desire to give that third way a chance.

Having done that, I believed, as a pragmatic, reasonable, moderate Conservative, that I had done the right thing by my Prime Minister and, as much as anything else, by my country. Imagine, therefore, my profound disappointment that the Government today, for reasons I can just about understand, decided to accept four amendments, two of which are not controversial but two of which—new clause 36 and amendment 73—seek to wreck and undermine this.

[Mr Dominic Grieve (Beaconsfield) (Con)]

Is not one of the features of these two amendments the fact that they would not do what their proposers seek them to do? The fact that the Government have chosen to accept amendments that are unnecessary and useless shows that the only intention behind their tabling was malevolent? The fact that they are being maintained at the present time is also an act of malevolence towards the Government by the proposers.

[Anna Soubry]

I completely agree with my right hon. and learned Friend. Members on the Government Front Bench, and indeed across the House, should be hanging their heads in shame. This is the stuff of complete madness. The only reason the Government have accepted the amendments is that they are frightened of around 40 Members of Parliament—the hard, no deal Brexiteers —who should have been seen off a long time ago. These people do not want a responsible Brexit; they want their version of Brexit. They do not even represent the people who actually voted to leave. The consequences are grave, and not just for this party, but for our country. One has to wonder who is in charge. Who is running Britain? Is it the Prime Minister, or is it my hon. Friend the Member for North East Somerset (Mr Rees-Mogg)? I know where my money is at the moment.

[Stephen Doughty]

What has really been going on here is that some of these extreme individuals have been threatening the Government, trying to hold them hostage, and saying that they will vote against Third Reading and bring the Government down, to get these bizarre, contradictory amendments through.

[Anna Soubry]

The hon. Gentleman is absolutely right. It is disgraceful, because this White Paper is a genuine attempt by our Prime Minister to heal the divisions in our party, and indeed the divisions in our country, and take us to a smooth and sensible Brexit that delivers for everybody.

[Mr Kenneth Clarke (Rushcliffe) (Con)]

Does my right hon. Friend agree that, if the Government were guaranteed the support of the Labour party and the Scottish National party against these wrecking amendments, we could finally reveal what a tiny minority of the House of Commons is trying to hold us all to ransom over a reasonable deal with the European Union?

[Anna Soubry]

My right hon. and learned Friend is right, as ever.

The truth is that both main political parties are now in the grasp of the few who falsely claim to speak for the many. A lack of ability, or perhaps courage, the over-liking of the safety and sanctity of ministerial office or, frankly, just a quiet life, on whichever side of the House, and a guaranteed income for a loyal Back Bencher with a handsome majority, mean that our country is hurtling not just towards the extremes of British political life, but over the Brexit cliff, which the overwhelming majority of leavers did not vote for—indeed, they were promised the precise opposite.

The time has come for the nonsense to be stopped. The time has come for people to show courage and do the right thing by our country. We are leaving the European Union, but we have to leave in such a way that protects jobs and prosperity—and peace in Northern Ireland—for everybody in this country. It is time for people to put aside the ideology and the nonsenses that invariably come from not inhabiting the real world. Let us face up to reality, as this White Paper seeks to do, and reject these two ludicrous amendments that the Government have agreed to. In due course, let us wake up to the further reality: we will end up in the single market and the customs union; the only question is when.

[Mr Chris Leslie (Nottingham East) (Lab/Co-op)]

I commend the right hon. Member for Broxtowe (Anna Soubry) for the passion with which she has spoken. She spoke authentically about the care and attention that she has taken to look into the supply chain issues, the just-in-time delivery systems that are the foundation of modern manufacturing in our country. She was not taking an ideological view, which certain Conservative Members, who may guffaw at that, might take, but thinking about the economy: our constituents’ jobs and all the prosperity and tax revenues that pay for the vital public services that we need to keep this country going. The national health service, the education system, housing and local government all depend on a healthy, vibrant economy.

--- Later in debate ---

[Mr Davis]

My right hon. Friend is exactly right. It is an issue that I will return to in a second, but before I do I want to make a point about friction. The presumption in all this is that we have a magical, frictionless system at the moment. Actually, we will have seen on our television screens that that is not true. This entire House will have watched Operation Stack in progress over various years. Operation Stack is what we do when one of the ports gets locked up for one reason or another—a strike in France or whatever. It has been operated 74 times in 20 years. In 2015, it took up 31 days of friction, and our businesses—the just-in-time businesses and the perishable goods businesses—all coped with it, so let us not frighten ourselves in doing this negotiation. Nobody wants it and nobody likes it, but they cope with it. My hon. Friend the Member for Dover (Charlie Elphicke) pointed out that with World Trade Organisation facilitation, we will actually minimise the friction on trade through these ports, as was reinforced by my right hon. Friend the Member for Wokingham (John Redwood).

Secondly, while people understandably focus on some of the pressure points—most particularly Dover, which we heard about a second ago—they forget that there is strong competition between the ports on the North sea and the ports on the channel. Zeebrugge, Antwerp and Rotterdam all want to increase their throughput at the cost of the Calais-Dover crossing. They are already preparing for increases in throughput in their own areas when we are outside the EU and preparing for the increase in work—because there will be some increase in work—but again, as my right hon. Friend said, it will not happen at the border. It will happen before they get there or after they pass through it, so our so-called dependency on French ports will turn out to be illusory.

Thirdly, in support of the arguments that any friction at the border is unacceptable we hear lots of talk about supply chains. We had it from my right hon. Friend the Member for Broxtowe who proposed this new clause. The simple truth is that this ignores the fact, as my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin) pointed out, that lots of international supply chain operations operate across borders where there are customs, tariff and currency arrangements. I happen to know one of them very well, because I operated a business across just such a border myself—between Canada and the USA. [Hon. Members: “Thirty years ago.”] I went back last year.

[Anna Soubry]

Will my right hon. Friend give way?

[Mr Davis]

No, I will not give way.

I went back last year to look at it again, and yes it was 15-year-old technology. It could be better now; it could be faster. What happens in Detroit, the centre of the American motor industry? In Ontario, across a very difficult and constrained border, tougher than Dover, there is an entire industry supplying parts, components and engines for that motor car industry. It operates across a border that has tariffs on it, too.

[Mr Davis]

No, if my hon. Friend will forgive me. I am short of time.

The simple truth is they operate even where there are tariffs, and we are proposing a non-tariff arrangement—there would be no tariffs here; the primary concerns will not be the collection money but other things.

[Anna Soubry]

Will my right hon. Friend give way?

[Mr Davis]

No, if my right hon. Friend will forgive me.

The issues that remain at the border will depend on the customs policy we decide on, which very clearly will alter how that border operates. It will include rules of origin, as has already been pointed out; tariff-paid status, if we are in the future customs arrangement, which is more difficult than rules of origin; and regulatory compliance. None requires action at the border. All can be dealt with by electronic pre-notification or pre or post-audit at either origin or destination.

Without doubt, the most difficult issue in the negotiations as they relate to borders has been Northern Ireland. There is no way, however, that a UK Government are ever going to install a hard border in Northern Ireland—that is as plain as a pikestaff. No UK Government would risk the peace process, which has been going on for decades. Neither would the Irish Government. I cannot imagine in a century that an Irish Government would do that either. What many people forget, however, are that there is already a border there—there is a currency border, a VAT border, an excise border, and there are other tax borders. They are operated north and south of the border by the UK and the Irish tax and customs collection organisations, operating together using intelligence- led intervention.

Much is made of the 300 border crossings. One of the outstanding issues with being outside the customs union is, as somebody said, the issue of rules of origin, but in Northern Ireland, while there may be 300 border crossings, there are only six ports. Rest-of-world imports can actually be surveilled and controlled very straightforwardly. This issue, which has become much more difficult since it was politicised—it was actually working quite well in the negotiations before it was politicised—is eminently soluble, by technical means and co-operation between the two states.

--- Later in debate ---

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

It is interesting to follow the former Brexit Secretary and to reflect on the speech he has just given. It explained why he resigned from the Government but, in the end, it just clashes with reality—that is the unfortunate detail of the evidence he has put to the House today.

I shall speak in support of new clause 1, but also to my new clause 6 and amendment 9, which relate to conducting an impact assessment on the effect of leaving the common external tariff. I shall also speak against amendment 73 and new clause 36. We have heard why the former Brexit Secretary believes that any kind of customs union would somehow be bad for Britain and why we would be better off without it, and I will first address the fallacies in his argument. He was extraordinarily dismissive of the impact of checks at the border and of delays and additional costs, particularly for manufacturers and just-in-time production.

I make no bones about the fact that I am speaking strongly in support of manufacturing industry in my constituency. I will resist the temptation to go off on a tangent about Haribo and the Starmix I am sometimes allowed to test when I go to visit, but people there do tell me how important it is that they can bring ingredients to and fro smoothly across the border and talk about the impact of such delays.

[Anna Soubry]

Did the right hon. Lady notice that there was no detail about the reality of the America-Canada border, which took 10 years to construct, cost £10 billion, deals with facial recognition and involves 100 companies in the automotive sector of Detroit and nothing more? Does she think that such a model would not provide the frictionless trade that our manufacturing sector needs?

[Yvette Cooper]

I completely agree with the right hon. Lady. The former Brexit Secretary seems to be arguing that because companies trade across borders that involve customs checks, we should rip up our customs-free borders. He is saying that because those trades take place, it is okay somehow to add costs to our trading process. Why on earth would we do that? Why on earth would we add burdens to businesses that do not face them at the moment? Why on earth would we make the process difficult and more costly for them? It is not that we think all trade will stop—of course it will not—but the point is that that trade will become more costly and burdensome, and our businesses and manufacturers will be at a disadvantage compared with their European neighbours and competitors. That is unfair on our manufacturers, which we in this House should be standing up for. I certainly believe in standing up for Yorkshire manufacturing.

The former Brexit Secretary also seemed to be arguing that, because we coped with Operation Stack before, let us have more delays again. Yes, we can cope, but Operation Stack cost businesses coping with those long delays a fortune.

--- Later in debate ---

[Sir Bernard Jenkin]

My right hon. and learned Friend, who seems to be becoming a remainer again, judging from his article in the Evening Standard—

[Anna Soubry]

Oh, come on.

[Sir Bernard Jenkin]

No, that is what he said. He said that we will have to rethink Brexit completely if we cannot get a satisfactory arrangement. That is the direction he is going in. I respect his view, but throwing around insults like “useless” is not elevating the debate.

My amendment 72 simply removes from the Bill an extraordinarily powerful Henry VIII provision that we should be signed up to a customs union with the European Union simply by order. Following the amendment that my right hon. and learned Friend the Member for Beaconsfield (Mr Grieve) tabled to clause 9 of the European Union (Withdrawal) Bill, I thought that what is sauce for the goose is sauce for the gander. I do not suppose that I shall hear him speak against my amendment, because it puts Parliament back in control of the decision to join a customs union with the European Union. That is what I think we should do.

--- Later in debate ---

[Mr Speaker]

For one sentence, I call Anna Soubry.

[Anna Soubry]

New clause 36 and amendment 73 are designed not to help the White Paper, but to wreck it. I am going to try to help the White Paper, which is why I seek leave to withdraw new clause 1.

Clause, by leave, withdrawn.

Customs and Borders

Anna Soubry Excerpts

Thursday 26th April 2018 Commons Chamber

[Yvette Cooper]

I think the right hon. Gentleman is simply making the point that our trade was growing, within the current arrangements, with the rest of the world. That seems to be a good thing, and suggests that perhaps, therefore, we can carry on increasing our international trade and our global trade, even within customs union arrangements.

[Anna Soubry (Broxtowe) (Con)]

Would it not also be the case that, as a country that champions free trade, we have seen the reduction of barriers with those other non-EU members, which may explain the growth? Does the right hon. Lady agree that it seems rather perverse that, at a time when we want to increase free trade, we are going to put up a whole load of barriers to stop access, in the best existing free trade area in the world?

[Yvette Cooper]

The right hon. Lady is exactly right. Where we currently have good free trading arrangements we should cherish them, because the truth is that it is getting harder to negotiate new trade deals. The politics of trade deals has become more complex, as communities across different countries become more worried about the losers and winners of big changes to trade arrangements. At a time when it could take very many years to negotiate new trade arrangements, if we pursue the idea of ripping up our existing ones before the conclusion of such negotiations it will be deeply damaging to many of our jobs and communities.

--- Later in debate ---

[Mr Clarke]

I quite agree. The Norwegians have a second-best solution by a good long way. When I was Chancellor, we were engaged in negotiating with the Norwegian Government and with other would-be new members over full membership of the European Union, which on the whole the entire Norwegian political class, left and right, supported. The same thing happened here during the referendum, when every significant political party in this country was in favour of remaining, with the exception of UKIP and the Democratic Unionist party. The Norwegians came out with not a bad compromise, but it was far less satisfactory than the one we are starting from as we negotiate now.

[Anna Soubry]

Will my right hon. and learned Friend give way?

[Mr Clarke]

With great respect to my close ally and friend, I must make a little progress and finish making this point. I might already have had my 10 minutes.

The theory is propounded to the British people that we somehow have nothing to do with these EU trading arrangements and that somehow, when trade deals are done, grey men in the European Commission secretly impose upon us all sorts of restrictive terms. Indeed, the right-wing press give the impression to all their readers that that is what we are facing now. They suggest that Jean-Claude Juncker and Michel Barnier are somehow plotting against us, that the whole thing is being done by unaccountable Eurocrats who are trying to take revenge on us, and that the trouble with our EU trade deals is that we have no say in them and they happen mechanically. That is complete rubbish, and it is rubbish that has been propounded for the last 30 or 40 years.

The Commission does have some roles that our civil service does not have, but basically it can negotiate only if it has the approval of each and every member state’s Government. It negotiates only within a mandate that the states have agreed. In my own ministerial experience of EU trade and economic affairs, the bigger countries —particularly Britain—have a huge influence on what is being negotiated. In my last job in the Cameron Government, when I was in the Cabinet Office without portfolio, I was asked by David Cameron to lead for us on the EU-US Transatlantic Trade and Investment Partnership deal. I spent time in Brussels and Washington doing that. I cannot say that I played a key role, but the whole point was that the British were keen advocates of that, along with the Germans, the Italians and the French. We were all close to what was going on, and seeking to find out where things were going and whether we could push it. No deal has ever been done by the EU with any other country that anbody has ever objected to in the United Kingdom. For example, no British Government ever protested about the EU deal with South Korea, which is one of the better ones that we have achieved recently. No one ever told me they were against it.

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[Sir Hugo Swire]

Will the hon. Lady give way?

[Anna Soubry]

Will the hon. Lady give way?

[Kate Hoey]

No.

I believe that the EU is using the border to try to change our policy. It is obviously unhappy that we are leaving and is doing everything possible. It is being helped by the Irish Government, but the Irish Government should be terribly worried that we will end up with no deal, which is not what anyone wants, because that would really hammer the Republic of Ireland. Varadkar and the Irish Government should get in there and use their position to get the European Union to see some common sense. Such a small proportion of total European Union trade relates to the Republic of Ireland, yet the Irish Government have got into a position where it is their country that the European Union is listening to.

There is a whole dishonesty about the debate in this Parliament, and I hope we do not see that. I mean that not in the sense of people being dishonourable, but in the sense that we are not really saying what we want to say. I hope that I am saying what I want to say: we should leave the customs union and the single market—that was what people voted for. The country will recognise the way in which the debate is now being pushed by those who fought so hard to remain, and people will see though that. We have to go ahead with getting out of the EU, getting our trade deals, getting our laws, and not being subject to the European Court of Justice, which we would have to be if we stayed in the customs union. I hope that today will be the preparation for what will be a very big and serious debate in a few weeks’ time.

--- Later in debate ---

[Anna Soubry (Broxtowe) (Con)]

I join all those who have spoken today, other than the hon. Member for Vauxhall (Kate Hoey), and endorse and embrace pretty much everything that has been so ably said. As my right hon. Friend the Member for Loughborough (Nicky Morgan) said, this is not just a simple case of our having a debate, which of course we should have had some time ago in order to assist the Government in this extremely difficult process, but of having the debate that we should have had in the run-up to the EU referendum.

I do not know whether the good people of Vauxhall actually did sit and discuss the intricacies of the customs union and the single market. Perhaps they did. That might explain why, of course, they voted to remain in the European Union. What we are seeing—I am sorry that I am repeating myself here—is the dawning of a Brexit reality. In that reality, businesses the length and breadth of our country are worried. They are extremely worried, especially those in the manufacturing sector.

On Tuesday, a real-life business in my constituency, which employs 750 people, came to see me. Such is the atmosphere in this country that it has not allowed me to tell Members its name, because it is frightened of the sort of abuse that many Members on these Benches have received and to which we have become accustomed. We will not give up, and we will speak out, because it is not about us, but about the generations to come and indeed the people in our constituencies who now, in the real world, face the real possibility of losing their jobs.

What did this company tell me? It makes a world-leading medicine. I am enormously proud to have it in the borough of Broxtowe. The reality is that, as it uses specialised medicinal ingredients, it imports them into our country. In Broxtowe and Nottingham, it puts them altogether and makes a world-leading medicine. Some 60% of its exports go directly to the European Union. Tariffs do not concern it so much. They concern the car industry where margins are so tight that any imposition of a tariff simply will see those great car manufacturers, which employ 425,000 people—people, whom I am afraid, the hon. Member for Vauxhall, casts to one side—move their production and new lines to their existing facilities in countries such as France, Germany and other places.

Returning to the pharmaceutical company that came to see me, any delay at all of those basic ingredients will have a considerable effect on its ability to produce, and time costs money. Any delay also means that it has to look for warehouse spaces—and it is doing this now—so that it can stockpile. I am talking about the sort of expanse that we can barely begin to imagine. It is looking for warehouses so that it can store and stockpile both the ingredients and the finished products. It fears that any delay will affect its business of exporting into the European Union.

[Albert Owen]

As a member of the Business, Energy and Industrial Strategy Committee, I met some pharmaceutical companies. One thing they told us, which was quite stark, was that research and development is done in this country, and manufacturing in the Republic of Ireland, and the product is then transferred back to the UK to go to mainland Europe. They will be paying tariffs perhaps half a dozen times, adding costs to our NHS.

[Anna Soubry]

The hon. Gentleman speaks with authority because he knows the reality. He will also know that pharmaceutical batches must be checked to ensure that the quality and ingredients are right. That work has to be done in a European Union country in order for those products to be sold within the European Union, so this pharmaceutical company it is going to replicate exactly the same brilliant labs that it has in Broxtowe and in Nottingham over in Amsterdam. This is the stuff of madness. The company is looking at flying qualified, high-skilled technicians out to Amsterdam on a weekly, if not daily basis, to do the work there. Replication adds to costs, and I have no doubt that it will not be long before the senior managers simply say, “Why on earth are we doing it in the UK, facing the end of the customs union and the single markets, when we could simply go into another country in the European Union and replicate our manufacturing process there?”

[Kevin Hollinrake]

Is my right hon. Friend therefore proposing that we stay members not just of the customs union, but also of the single market?

[Anna Soubry]

I absolutely am. I made it very clear to my constituents when I stood for re-election in Broxtowe last June that I would continue to make the case for the single market and the customs union—oh, and by the way, for the positive benefits of immigration—and they were good enough to give me and our party their vote. As my right hon. Friend the Member for Loughborough said, each and every one of us must look deep into our hearts when deciding the future relationship that we will have with the European Union. It is imperative that we put our country and the best interests of our constituents first and foremost—and, in particular, over and above any ideological drive that too many people have—in this most critical of debates.

The final thing I want to say is this: I get rather agitated at the notion that we are about to be global Britain. Why? Because we are already global Britain. I had the great pleasure of going to the far east with David Cameron, and I went to China with George Osborne. Why did we go to these countries? To do trade. In fact, to do more trade; we already trade all around the world. That ability to trade should not be diminished in any way, and it will not be by our membership of the customs union. We have struck up well over 40 deals, and at the heart of those deals we made the case for free trade in a way in which no other European Union member state has done. We are recognised for our strong belief in free trade and we have achieved that by virtue of our membership of the customs union.

I am old enough to remember when we were described as the sick man of Europe, and we were. The reasons that we became such a hugely successful economy was because of our membership of the single market and the customs union. Other Members—especially my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke), who was undoubtedly around at the time— have referred to Margaret Thatcher’s great speech, when she not only described the single market, but was the finest exponent of it. She believed in the single market. As many of us now know, she promised the Prime Minister of Japan that our country would never leave the single market, and that is why the Japanese invested in our country on the scale that they did.

I hope that the House does not have to divide tonight; nobody wants that. But we all want the best deal for our country, and that is in the customs union—and, by the way, the single market.

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[Matt Warman]

My right hon. Friend proclaims, “Rubbish!”, from a sedentary position. I think he knows me well enough to know that I am not an ideological hard Brexiteer, by any means. However, surely we all have to accept that we should be ideological about preserving the primacy of democracy. If we in this place are not all democrats, then we have a real problem.

[Anna Soubry]

rose—

[Matt Warman]

I give way to my right hon. Friend, who—

[Mr Speaker]

Order. Before the right hon. Lady intervenes, can I make this point? People are perfectly entitled to intervene, but if they keep doing so, particularly those who have already spoken, they do so knowing that they are stopping other colleagues speaking. Let us be clear about that. Does the right hon. Lady still wish to intervene?

[Anna Soubry]

No.

[Matt Warman]

I was about to say that my right hon. Friend is talked of frequently in my constituency. I say that because I know that she does not seek to undermine democracy. I know that she, of all people, is a democrat. However, the impression that is too often given outside this place is that people here do not trust the result and that they do not trust people out there in this country to have made a decision.

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[Antoinette Sandbach]

I apologise to my hon. Friend the Member for South East Cornwall (Mrs Murray)—I am corrected.

Pharmaceuticals, car manufacturing, agriculture, food manufacturing, the energy sector and the nuclear sector are absolutely key to the north-west. The Government’s own analysis shows that if we do not have an EEA-style agreement, there will be a 12% reduction in GDP growth in the north-west. If I am to represent my constituents, I have to vote in a way that supports their interests—that is what I am elected to do. A decision was taken to leave, but the question of how we leave was delegated to the House. I am not a delegate; I am a representative for the interests of my constituents.

[Anna Soubry]

Does my hon. Friend share my concern that so many Members do not even know what the customs union is? For example, while we have heard today that there are no other customs unions in the world, there are 12. As for state aid rules, we now know that the Government said on Monday that they would adopt all the state aid rules that we currently have as a member of the European Union.

[Antoinette Sandbach]

I am grateful for my right hon. Friend’s intervention.

Let me explain why the customs union is so important. There is evidence that the crankshaft of a Mini crosses the English Channel three times on a 2,000-mile journey before the car is even finished. It is first cast in France, before being sent to Warwickshire to be milled into shape. Once it is complete, it is sent to Munich to be added to the engine. Finally, it is sent back to Oxford, where the engine is installed in the car.

The Chair of the Business, Energy and Industrial Strategy Committee, the hon. Member for Leeds West (Rachel Reeves), spoke eloquently about the additional costs to the motor manufacturing sector of not being party to a customs agreement. We may call it a partnership or a union, but I am not bothered about what it is called. It is the outcome that I want to achieve, and that outcome is what leave campaigners promised to my constituents: free and frictionless trade. That must be delivered, and if the way to deliver it involves leaving the political institutions of the EU while remaining in the single market and the customs union, I will support that.

As for all this guff about being a rule taker, if we want to export to any other country in the world, we must export according to that country’s rules. If other countries want to export to us, they must accept our rules. It is in our interests to have aligned rules. In fact, much of the body of our rules is global regulation, as is made clear in the BEIS Committee’s report on the aerospace sector. In many cases, we are talking about not EU standards but international standards.

Most of the countries involved in the free trade deals that have been held up by leave campaigners are covered by our membership of the European Union. If we are part of the single market and a customs union, we may be able to gain access to the 32 Commonwealth countries that already have free trade deals with the EU. It will be much easier for us to roll over our existing free trade deals, which is the Government’s aim—I support it. Only 12% of countries do not have current free trade agreements with the EU or agreements that are being negotiated with the EU. It makes absolute sense for us to consider an EEA or EFTA-style agreement that would allow us to take back control of fisheries and agriculture, provide a brake on immigration and take us out of the jurisdiction of the European Court, but would be a recognised and acknowledged partnership.

Leaving the EU: UK Ports (Customs)

Anna Soubry Excerpts

Monday 19th March 2018 Commons Chamber

[Mel Stride]

The right hon. Lady is right to say that the Government have clearly ruled out any infrastructure at the Northern Ireland border. In the discussions on Dover—not necessarily with myself directly, but through officials—all those options, including the number plate recognition to which she refers, have indeed been talked about.

[Anna Soubry (Broxtowe) (Con)]

As my right hon. Friend knows, if there were two countries that were ever going to have a completely frictionless border, they would be Norway and Sweden, because they are both in the single market, but, as we know, there is a hard border there. In any event, will he be so good as to go to his officials at the conclusion of his appearance in the House to ask them to make sure that the costs of the system the Government hope to achieve with our neighbours in the EU are fully calculated?

[Mel Stride]

I thank my right hon. Friend for her question, but of course we do not yet know, as we negotiate these arrangements with the EU27, exactly what form of arrangements will be in place. Of course we will be assessing those carefully.

European Affairs

Anna Soubry Excerpts

Thursday 15th March 2018 Commons Chamber

[Mel Stride]

While being ingenious in his use of language, my right hon. Friend will I am sure agree with me that the purpose of the implementation period is to make sure we have a period of certainty for business, so that when we end up with our final withdrawal agreement we only have one set of changes to make from where we are now to where we will be at that point. That is the purpose of the implementation period.

[Anna Soubry (Broxtowe) (Con)]

I do not want to alarm you, Mr Deputy Speaker, but I completely agree with my right hon. Friend the Member for Wokingham (John Redwood), which may be a first in this sort of debate—[Interruption.] He is in a state of high shock. In all seriousness, this is an implementation period—the clue is in the name—but many of us fear that by October we will have achieved nothing more than a woolly set of heads of agreement and that there will be little to implement. How does the Minister see things panning out in reality?

[Mel Stride]

Whether it is a transition period, an implementation period or whatever period one seeks to term it, the important thing is to understand what the period is about, and we have always been clear about that. It is a period in which we will remain closely involved—similar to how we are at the moment—so that when we move into the post-transition or implementation period we have undergone just one set of changes and that we have certainty in the interim for British businesses, which is exactly what they have been telling us they would like.

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[Paul Blomfield]

I thank you for that clarification, Madam Deputy Speaker. I apologise for any offence, but I was simply quoting from the Financial Times column by the right hon. Gentleman, which said:

“Time to look further afield as UK economy hits the brakes”.

[Anna Soubry]

I hope we can return to the subject we are meant to be debating today. The hon. Gentleman talks about manifestos, and of course his party failed to get elected on its one. Is he familiar with the Conservative manifesto, which some may say we have drifted away from to some considerable extent? It made it clear that the Government’s policy, should they be re-elected to govern our country, was that we would seek a customs arrangement.

[Paul Blomfield]

I was aware of that manifesto, and the right hon. Lady is right in what she says. I also reflect that the manifesto and the narrative surrounding it sought an overwhelming mandate for a hard Brexit, which the British people failed to give to the Conservative party.

Let me move on to explain why we believe a comprehensive customs union with the EU that replicates the current arrangements also does not weaken our opportunity to develop trade with the rest of the world—certainly not in services. As Germany has shown, we do not need trade deals to develop trade, for example, with China. As the International Trade Secretary acknowledged when he was there with the Prime Minister in February, membership of a customs union will not hold back bilateral trade. Where deals can be done, we think member- ship of a customs union gives us a stronger hand in trade negotiations, as part of a market of 650 million people, rather than just one of 65 million people, and in maintaining strong EU standards.

Members of this place and the Government must be honest about the fact that any trade agreement—

--- Later in debate ---

[John Redwood]

I quite agree.

We wish to take back control. We will be a very different and much better country when this Parliament can settle how much tax we levy, how we levy it, how we spend money, how we conduct ourselves and what kind of laws we have.

My main remarks for the Minister and his colleagues on the Treasury Bench, however, concern the conduct of the negotiations. Like the Minister, I wish the Government every success. I hope that they get a really good deal—I look forward to seeing where they get to—but the EU is trying to make the process as difficult as possible by insisting on conducting the negotiations in reverse order. It says first that we have to agree to pay it a whole load of money that we do not owe. It then says that we have to agree a long transition period that coincides with its further budget periods, so that it can carry on levying all that money, and that is before we get on to what really matters: the future relationship and the questions of whether there be a comprehensive free trade agreement, what it will cover, and if it will be better than just leaving under WTO terms.

In order to have a successful negotiating position, the Government have rightly sketched out a couple of important propositions. The first is that nothing is agreed until everything is agreed. That is fundamental, and I urge Ministers to understand that they must not sign any withdrawal agreement unless and until there is a comprehensive agreement that is credible and that can be legally upstanding, because there is no point paying money for nothing. There would only be any point in giving the EU all that money if there was a comprehensive agreement that the Government and the country at large could be proud of, and which enough leave voters could agree with as well as remain voters.

The second thing that the Government have rightly said is that no deal is better than a bad deal. That, again, is fundamental to the negotiations. I have never made any bones about this, because I said before the referendum that no deal was quite a likely outcome, and a fine outcome. For me, no deal is a lot better than staying in the EU: it would give us complete control over our money, meaning we could start spending it on our priorities; it would give us complete control over our laws, meaning we could pass the laws and levy the taxes that we wanted; it would give us complete control over our borders, meaning we could have the migration policy of our choosing; and it would give us the complete right and freedom to negotiate a trade policy with the EU and anybody else. That would depend, of course, on the good will of the other side as well, but I would far rather be in that position than part of a customs union in which I had little influence and that was extremely restrictive against others. There is therefore an awful lot going for no deal.

The Minister and his colleagues must stick to the proposition that they will recommend a deal to the House only if it is manifestly better than no deal. They need to keep reminding the EU negotiators that no deal offers Britain most of what it wanted when it voted to take back control.

[Anna Soubry]

Will my right hon. Friend confirm whether he has seen the Government analysis—apparently it involves excellent modelling and is far better than anything they did in the run-up to the EU referendum—showing that if we were to crash out without a deal and rely on WTO tariffs, our projected increase in productivity and economic growth would be reduced by 7.7%? Is that what his remain-voting constituents—the majority—voted for?

[John Redwood]

No, of course it is not, but that is not true. I have written at great length about that elsewhere. Unfortunately, I do not have time to go into a detailed rebuttal of those proposals, but we know that the Treasury modelling got entirely the wrong answer for the first 18 months after the referendum. Its short-term forecast, which should be easier to make, was massively wrong and predicted a recession. I and a few others put our forecasting reputation on the line during the referendum by saying that there would be growth after an out vote, rather than what the Treasury forecast. We were right.

I assure my right hon. Friend that I have not voted for anything that will make us poorer. We will be growing well, as long as we follow the right domestic policies. It is complete nonsense to say that there will be that kind of hit. It implies that we lose over half our exports to the European Union, and it is not a proper reflection of what would happen to our trade adjustment were anything that big to happen. I want to concentrate on the customs union.

--- Later in debate ---

[Anna Soubry (Broxtowe) (Con)]

It is an absolute pleasure to follow the hon. Member for Nottingham East (Mr Leslie). On this, we are absolutely as one. It has been a consistent feature not only of the debate in the run-up to the referendum, but in everything that has followed, that there has been so much agreement between those of us on these Government Back Benches and those on the Opposition Back Benches. If I may say so, Opposition Front Benchers are also increasingly recognising the strength of the argument that Opposition Back Benchers and some Government Back Benchers have been making. We also have the agreement of SNP and Plaid Cymru Members; that is about it, unfortunately.

The point is very clear: this issue—the biggest issue that our nation has had to wrestle with in 40 years, and certainly since the second world war—has, on the one hand, divided our country and that division continues, but, on the other hand, has also brought together people from different political parties. We have put aside our party differences, because on this we are as one, and we have put our country first. I pay tribute to all the Members who have spoken out—often in the face of death threats, appalling emails and criticisms, and indeed unpleasantness even from within our own political parties—as doing so has not always been easy. However, it is very important that we do so because this is about our country and of course our constituents—it is not about us—and it is even more about our children and our grandchildren. As hon. Members have said, it is about making sure we get this right because the consequences will affect generations to come.

My view is that people in this country are undoubtedly getting utterly fed up with Brexit. I was going to say that they do not understand it, and that is not a criticism, but when we sit here talking about the finer details of “a” or “the” customs union “arrangement” or “agreement”, and when we delve into the detail of WTO tariffs on bananas, cars or beer—goodness me—people do not want to be involved. That is not because they do not care about our country—of course they care, desperately—but they elect us to this place so that we get on with that sort of stuff, and so that we put the country first and do the best thing for our constituents. They should not have, in effect, to micromanage the politics and detail of all the economic consequences and things that flow from that; they trust us to do it, but when they look at this place, I do not think they are particularly impressed by what they see.

In reality, the two major parties are almost together, although thankfully a difference is now emerging, which I will deal with in a moment. The Opposition have the good sense to come out in favour of a/the customs union—it does not matter what we call it; we now know that it delivers exactly the same arrangement that we currently have. [Interruption.] Sorry, “a” customs union, but I am not interested in the words. All I am interested in is what it delivers, and that is the only difference between the Labour party and the Front Bench of the Government who I obviously support. There is very little between them. Yet, as I have said before in this place, if we were to have a free vote, I have no doubt that the majority of Members would vote in favour of a/the customs union—we all know what we mean because we know what it would deliver, which is the continuation of peace and prosperity in Northern Ireland and the avoidance of a hard border. It would also convey many other benefits.

I also have no doubt that Members would vote in favour of us retaining our membership of the single market by being a member of EFTA, and I do not think that the people of this country are particularly impressed by the fact that that is not happening. They voted for us to speak up on behalf of them and their interests, and we should not be held back by three-line Whips and by an attitude that still exists in our society—led mainly by certain sections of the media—that anyone who has the temerity to speak out about or against the decision that was made in the EU referendum is in some way a “traitor” or a “mutineer”. It is an outrage! We come here to speak freely on behalf of our constituents.

[Sir Robert Syms (Poole) (Con)]

Is not a referendum the biggest free vote? Everybody participated; nobody was whipped. There were weeks and weeks of argument, and a decision was made.

[Anna Soubry]

That is a really interesting point. Of course we had a referendum, but can we just get real about this? First, 52% of those who voted did so for us to leave the European Union, but not one of them to my knowledge—certainly in my constituency—voted to be poorer. Of course, 48% of people voted for us to remain in the European Union, and they have a right to a say in what now happens. Too many people, including perhaps on the Government Benches, do not understand that a considerable portion of that 48% have accepted the vote, but now feel utterly excluded, sidelined and pushed to one side as we move forward to deliver the result in the interests of everybody in our country.

[Peter Grant]

The right hon. Lady is making, as always, an impassioned and well-informed speech. The ballot paper contained a question about membership of the European Union, but there has never been a referendum on membership of the customs union or the single market. Nobody knows for certain what people want regarding those institutions.

[Anna Soubry]

I completely agree; the hon. Gentleman is absolutely right. I take grave exception to the idea that across the length and breadth of this country people were sitting in pubs, cafés, bars or whatever discussing the finer points of the merits or otherwise of the customs union and the single market. The truth is that there are Members of this House who do not know what the customs union is, and there are Members of this House who do not understand what the single market is.

I am not going to name people, but I have had very good conversations with right hon. and hon. Friends about EFTA. I have explained, for example, that members of EFTA can retain their own fisheries and agriculture policies. There are colleagues who have said to me, “Good heavens, I didn’t know that. How very interesting. Can you tell me now about immigration?” So then I explain about articles 112 and 113, and so on and so forth, and about the brakes that could be put on immigration. These conversations have occurred only in the past three or four months, 18 months after the referendum and nearly a year after we triggered article 50. That is why I will say it again: when history records what happened in the run-up to and after the referendum, it will not be in any form of glowing testimony. On the contrary, I think we will all be painted very badly, apart from those right hon. and hon. Members who at least stood up and spoke out. If I dare say it, I think we have been increasingly proved right.

I think people are fed up. They want us to get on with it. They do not quite know what “it” is. Some people actually think we have already left the European Union. But they know that it is getting very difficult and very complicated. I believe that people are becoming increasingly worried and uneasy. It is the dawning of Brexit reality. They know that the deal, which they were told would take a day and a half, or a week and a half, will now take, if not for ever, then a very long time. When I say “for ever”, I mean that, if the Government continue to stick to their timetable, it will not be concluded until way after we have left the European Union. We will get very loose heads of agreement by way of a political statement attached to the withdrawal agreement, which this place will vote on sometime this October or November. People are beginning to realise that they have been sold a bit of a pup.

Only last week, I spoke to a constituent who voted leave who told me, in no uncertain terms—she was quite angry about it—that she had no idea about the implications for the Irish border of not getting this right. People of a particular generation really get it and understand this. Frankly, we are old enough to remember the troubles in all their ghastliness. We also remember the border. Some of us are old enough to remember customs border checks, when we had to go through a particular channel. We remember being terrified that the cigarettes or a bottle of whatever—I certainly would never have done any of these things, of course—might suddenly be uncovered by a customs officer, but that means absolutely nothing to huge swathes of our country. Older people, however, remember the troubles and they know how important it is that the border does not return. They understand how critical not having a border between Northern Ireland and the Republic of Ireland has been to the peace process. They are now not just worried about the return of the border, they are quite cross about it. They are getting cross not just because they do not want it, but because they feel that none of this was discussed and explained before the referendum.

As I have said, we are now having the debate that we should have had before the EU referendum. I am looking towards those on the Scottish National party Benches. The debate held in Scotland in the run-up to the independence referendum was a long, long proper debate. If I may say so as an outsider, every single issue pertinent to the debate was properly teased out and discussed. I do not think anybody could have complained that they did not know the consequences.

[Jonathan Edwards]

The right hon. Lady is making an excellent point. In Scotland, the Scottish Government produced a White Paper—650 pages long—outlining completely what they were proposing. During the European referendum, the leave campaign produced a poster on a bus. That is why we are in the mess we are in now.

[Anna Soubry]

I might not quite go that far, but the hon. Gentleman makes a really important point. I was a member of the Government that decided we would have a referendum. To be very blunt, I am now quite ashamed of the fact that I made a decision that we should have a referendum without the proper debate that we clearly should have had and without the long run-up. More than that, this is the conclusion that I think the British people have also reached: how on earth did a responsible Government put in front of us, the people of this country—notwithstanding how brilliant we are—an alternative that we now see will cause our country so much harm? During the referendum campaign, when “Project Fear” was at its full height—the campaign was very poor on both sides, but “Project Fear” in particular was madness and nonsense—I think that subconsciously, people thought to themselves, “No responsible Government would put something to us as an alternative to their preferred option that would deliver all this stuff, when actually, it will harm our economy, and even undermine or threaten our security and the future of peace in Northern Ireland. They wouldn’t do that.” Of course, now we know that that is exactly what that option was, but we have moved on, as I must too.

[Alison Thewliss]

Will the right hon. Lady give way?

[Anna Soubry]

I will make one last point—no, I will take the intervention, because it is probably more relevant to what I just said.

[Alison Thewliss]

I thank the right hon. Lady for the speech that she is giving, because it is another good one. The point has been made about the very short period running up to the referendum, when people had to make a very big decision on the basis of very scant information. Does she agree that it was far too short to counteract the decades of misinformation, and that we have a real responsibility as politicians to get more information and more facts out to constituents, so that they can understand the basis on which they are going to make decisions?

[Anna Soubry]

The hon. Lady makes a very good point. Look, some people would argue that it is a miracle that 48% voted for the EU. Anybody who plays or watches cricket knows that before a game, they roll the pitch. We have taken a JCB digger to the pitch for the past 40 years. It is astonishing. On both sides, we have all blamed the EU for all our misfortunes: if something was difficult, we just blamed the EU. Then, of course, in a very short period, we said, “You know that thing that we said was really rather rubbish—actually, it is really rather wonderful. Would you go out and positively vote for it?”

The other dawning of the Brexit reality was in the excellent speech that the Prime Minister delivered a few weeks ago. In it, she faced up to the reality in a highly commendable way—her tone was right and I agreed with much of her content. However, the reality of what she said was this: in admitting that there would be, for example, no passporting for financial services and that we would have reduced access to the market, what she was saying—as others have observed—is that for the first time, I think, in the history of any Government in any country in the world, we are actively going to pursue a course, knowing that it will make us less prosperous than we are under the current arrangements. That is the view of Her Majesty’s Government. I hope as we go forward that perhaps the Government, in that spirit of reality, will also understand that this can and must be stopped. We cannot pursue a course that will make the people of this country less prosperous.

We are meant to be talking about the economic side of our EU relations and affairs, so I will make this observation. The OBR’s predictions were to be welcomed because they were better than its previous predictions about our prospects of growth. I observe, as many others have, that we benefit at the moment from a strong labour market. We are almost at the point of having record levels of employment, which means, of course, that we have more money in the coffers by way of taxation and national insurance. In the financial and insurance sectors, we have seen pay rises of some 7%, and as many have observed, services comprise 80% of our economy.

We know that consumer spending has risen, and that, too, would account for the increased money in the coffers, because it means that our VAT receipts have gone up again. The weakness of sterling means that the companies whose foreign earnings are important to them have seen the worth of those earnings go up.

We must take all those factors into account to understand why it is the view of many that, notwithstanding the OBR’s better forecast, our country is actually experiencing some of the slowest growth in the G20. We think we are doing well, but when we compare ourselves to other G20 countries, we see that we are not doing anywhere near as well as we should be. I have given an explanation of why we are not where we thought we might be, but the point, of course, is that if we were not leaving the European Union, we would be doing considerably better and our prospects would be considerably higher.

Let us be clear about this. Investments are already being delayed, and we know that unless we get this transition in place, a number of important businesses will leave our shores. We also know that business wants certainty, and, in my opinion, the certainty that it is crying out for is the certainty of knowing that we will stay in both the customs union and the single market. No one should underestimate the real risks that our country faces. If we do not get this right, businesses will simply leave. We have already seen examples of that. There are Japanese companies that were promised by Margaret Thatcher, one of the finest proponents of the single market, that our country would never leave the single market. They have invested billions of pounds in real, skilled jobs in our country. Anyone who speaks to those companies—as many of us do—should ask them how they see the prospect of our leaving the single market and the customs union, and, indeed, the European Union. The fact is that instead of investing here, they will invest in other European countries, because we were the bridgehead into the EU.

I have dealt with the Government’s analysis in my interventions, and I know that you are urging me to speed up, Madam Deputy Speaker, but I have not had an opportunity for some time to make a long speech about this matter, which is dear to my heart, so I hope you will forgive me. I hear you—or, rather I see you—and I take the hint. I am about to make my concluding remarks. However, these things need to be said.

The Government, quite rightly and responsibly, asked civil servants in all Departments to look at the different options that were available and to analyse the economic benefits that they might or might not convey. I urge Members to read the papers. They should go into the darkened room, or even better, get hold of those papers, because the Exiting the European Union Committee has had the good sense to publish them. This is new modelling—the best available framework, prepared by civil servants who act with complete independence and, as usual, have exercised the huge skills that they possess. They recognise all manner of variances. They believe that these analyses are the very best, and they are keen to sing the praises of the modelling.

What does that modelling reveal? It reveals that even if the House and the Government were sensible enough to accept the single market and the customs union, membership of the European economic area after we had left the EU would cause our projected growth to fall by 1.6%, a free trade arrangement would reduce it by 4.8%, and World Trade Organisation rules—the cliff edge urged by some Conservative Members; the most irresponsible of all options—would involve a reduction of 7.7%. Moreover, those models do not include the value of the customs union.

I want to conclude—you will be pleased to know, Madam Deputy Speaker—by expressing some views on trade deals. It concerns me greatly that the British public are not being properly and fully informed about them. I say with respect to those on the Treasury Bench that it is very important that they are absolutely up front with people and stop putting forward the chasing of what are effectively unicorn deals. We enjoy 50 free trade deals by virtue of our membership of the EU. The idea that we will not get a deal with Australia is madness, because of course the EU will soon be doing a deal with Australia, and who do we think they will be doing a deal with first, the EU or the UK? The EU of course. So we will benefit from all these free trade deals in any event; we are not getting anything different by leaving the EU.

It is very unfortunate that we are not explaining the facts on free trade arrangements—the 50 or so we currently have by virtue of our membership of the EU, and the other arrangements we also enjoy by virtue of our membership. As this analysis shows, the reality is that even if we get every single free trade deal that is available, that still will not make good the loss to our economy of leaving the EU.

So—finally, Madam Deputy Speaker—people must wake up and realise that our EU colleagues will miss us and they want us to stay, and if we leave and a future generation wants us to return we will not be able to re-join on such good terms as we currently have. The EU will not miss us because of our trade—they will find new markets; we must get real on that—but they will miss us because of what our country has always brought to the EU: we are the voice of sanity; we are the check on the excesses; we are the ally that many seek to keep the EU—

[Giles Watling (Clacton) (Con)]

indicated dissent.

[Anna Soubry]

My hon. Friend shakes his head, but, with great respect, he should go and speak, as many of us have done, to ambassadors and senior members of Government. They are genuinely upset that our country is leaving, because of the loss from that and the damage and harm it will do to the EU and because of the great role our country has played in many respects in the best part of the EU’s work, which is the advancement of free trade.

I believe that the people of this country are looking for some way out of this mess, because it is a mess, and it is up to us as politicians to provide the leadership. This place cannot overturn the referendum result; the people began this and it is for the people to finish it. However, the people are now entitled to have their say on the final deal—I have no doubt about that—because their future is what is most important and increasingly, as the reality dawns and they understand the full detail of what we have done, it is not that they are regretting their vote, but they do not like what they see on offer as the future out of the EU. So let us be clear: let the people have a final say on the final deal.

[Several hon. Members rose—]

--- Later in debate ---

[Mrs Madeleine Moon (Bridgend) (Lab)]

It was wonderful to hear the speech by the right hon. Member for Broxtowe (Anna Soubry). I cannot say how much I agree with her about how much this House knows that what we are working towards will be an absolute unmitigated disaster for our constituents. Every one of us in the House, apart from the tiny minority who are driving this disastrous move forward, is absolutely clear that we are going to leave our country and our constituents poorer. It will be a disaster.

I have to say to the hon. Member for Clacton (Giles Watling) that it is nonsense to say that when the facts change, one does not change one’s opinion. Were that true, there would be no divorce. It would mean saying to every woman in the House, “You would never be able to take back that dress that you thought was wonderful when you first saw it but that looked an absolute unmitigated disaster when you got it home.” The facts are changing and we are finally getting to the truth of the disaster of where we are going, so it is right that we go back to the people and say, “Do you want to change your mind? Is this the right direction?”

The impact on London will be tremendous, as we have heard from my hon. Friend the Member for Lewisham East (Heidi Alexander), but I cannot begin to talk about how disastrous it will be for Wales. May I start with the issue of gross value added? Gross value added is one of those terms that does not really resonate with constituents, but let us look at what it means in Wales. In 2016, it was £59.6 billion. The Government’s projections mean that Wales would lose about £5.7 billion in the event of no deal, and around £3.3 billion if we secure a trade agreement. That is over a period of about 15 years, but it will have a huge impact on the Welsh economy. It is not the most vibrant economy, but it will have a devastating impact.

I could throw lots of figures about, but one that impacts on families across my constituency is inflation. Inflation remains at 3%. Wages are not going up, but prices are, and my families are becoming worse off. The cost of food and other goods is soaring as a result of the fall in the value of the pound, which remains about 15% below pre-referendum levels. That is a visible and very real impact on the daily lives of my constituents. Having seen that impact, my constituents deserve the right to another opportunity to decide whether this is a bet that they want to take given that, even under the Government’s own policies and analysis, it will bring further poverty, further disaster and limited opportunities for their children.

I have talked to many of my constituents about how they voted. Some of them say, yes, they got a great result. They got the result that they wanted out of the referendum; they got rid of David Cameron—job done. That is what they have actually said to me. It was not about Europe; it was about austerity. They hated what was happening to their families. They hated the fact that so many of them were heading off to food banks. Some of them say, yes, it was about immigration, but really it was about the wages that they were getting and the 1% pay rise that, year on year, meant that they and their families were falling behind.

For many of them, it was about taking back control. They would say to me, “These unelected bureaucrats”, and I would say, “Well, okay, but tell me the name of the director of education in Bridgend County Borough Council.” They would say, “What? I don’t know, Mrs Moon.” Well, that is an unelected bureaucrat. It is not who the bureaucrats are that we need to know; it is who the politicians are. It is the politicians who hold those bureaucrats to account and it is the politicians who make the decisions. It is about knowing who our politicians are and getting behind them that is the important part of democracy.

A grim time lies ahead. Most businesses constantly approach MPs to say that if we leave the customs union there will be severe consequences, which makes me really, really nervous. I have two major employers at two ends of my constituency: the Ford engine plant and Tata Steel. The impact on both the car industry and the steel industry will be devastating when we leave the European Union. I cannot begin to talk about the impact that job losses in those two industries will have on my constituents. I cannot begin to talk about the loss of future opportunities for the children in my constituency. I have fantastic schools and I am so proud of the bright, alert, really eager youngsters for whom we should, as a country, be promoting a future of opportunity, instead of which I hear fantasies about wonderful trade deals with countries that will never, ever bring the benefits—I ask Members to read the submission from Tata Steel—that access to the European markets currently brings to Tata Steel.

[Anna Soubry]

The hon. Lady is making a very important speech. I suggest that my hon. Friend the Member for Clacton (Giles Watling) visits her constituency, and talks to Ford and Tata Steel in order to understand the importance of frictionless supply chains, membership of the customs union and membership of the single market in the very real industrial world that the hon. Lady and her constituents inhabit.

[Mrs Moon]

I thank the right hon. Lady for saying that, because I have those conversations all the time.

When I trotted over to DExEU to read the wonderful insight reports that we were meant to see, I was absolutely appalled by the poor quality of analysis that would be devastating for the people I represent. I will not vote for anything in this House that I think will damage the people I represent. I feel awful guilt—the right hon. Member for Broxtowe also mentioned this—about having voted for that referendum without insisting that we had all these debates before we took it to the people. I recently attended one of my local Women’s Institutes, where a lady said to me, “We shouldn’t have been asked to vote, should we? I didn’t really know what I was voting for. I went with what everybody else was saying, but I didn’t really understand the consequences, and now I’m worried about my grandchildren.” We should all be worried about those grandchildren.

So here we are. It is really quite obvious that we are not going to have frictionless trade. If we leave the single market and the customs union, we are going to make sure that our families are worse off. Europe is on our doorstep. We can get from here into the centre of Europe in a matter of hours. The EU has 37 trade deals with more than 65 countries around the world, covering 15% to 17% of the UK’s trade in goods. The EU has trade deals in place with more countries than the US, which has 20; China, which has 23; and Australia, which has 19. And yet, what are we going to do? We are going to throw that away.

Finally, I am a Member of the NATO Parliamentary Assembly. Every time I attend a meeting, colleagues there tell me of their fear of the consequence of Britain’s departure for the stability of Europe. Every time I see them they ask me, “Is there any chance?” I just hope to God that we wake up in time and say, “Yes, there’s a chance.”

[Robert Neill (Bromley and Chislehurst) (Con)]

I have a lot of sympathy with what has been said by the hon. Member for Bridgend (Mrs Moon) and my right hon. Friend the Member for Broxtowe (Anna Soubry). I will put my case slightly differently and, perhaps, a little more succinctly.

I take the view that this country made an error. It was a democratic error, but it was an error. And because we are democrats, we have to live with the consequence of the error until such time as I hope may one day be the case, when the future generation reverses that error in some way. However, I am also a realist and know that that is not likely to happen any time soon. Therefore, we must ensure that we respect the outcome of the referendum—like it or not—but that we do so in a way that mitigates, to the greatest extent possible, the damage that will inevitably flow from it. The Prime Minister at her Mansion House speech was frank and honest, as I have always found her to be, about the fact that there is damage and that we must therefore mitigate the risk.

I do not do my politics in belief and faith; that is appropriate for the confessional, but not government and litigation. I do my politics in hard-headed reality, which is why I want to talk about services. Financial services underpin the economy of this country. We are a service economy or we are nothing. The position on services is worrying. My constituents are dependent on services, as 36% of them work in the financial and professional services sector—the 16th highest proportion in the country. Other hon. Members have already set out the massive contribution that the financial services make to our economy, beyond any other.

Anything that damages financial services damages the economy, the tax take, our public services, and the lives of every man and woman in this country. It directly damages the lives of my constituents. I will not support anything that materially damages the lives, the wellbeing and the services of my constituents. I want to help the Prime Minister to avoid that happening. To do that, I want to give her flexibility. As soon as she expresses realism, seeks flexibility and recognises that there must be compromise, some of my hon. Friends promptly appear with another pot of red paint. They are the ones who make her life harder, not those of us who support her in the realism and honesty that she set out in her Mansion House speech.

Let us then look specifically at what needs to be done to achieve the result that we need for financial services. First, we have to find for the City of London, if possible—it is a big if, and whether it will be achieved I know not, but let us set it out very clearly—a means, where mechanisms exist, to enable maximum access for financial services firms and for the legal services firms that underpin them: the two go together. There has to be an early transitional arrangement, or implementation—what’s in a name?—to ensure day-one continuity.

Secondly, there has to be—I want to hear from Ministers how we take this forward and a reassurance that it is central to their view—mutual market access built on the existing position of regulatory convergence. Moving away from that would damage market access; it is not in this country’s interest. That should be based on a commitment—frankly, an ongoing commitment—to mutual recognition and regulatory co-operation, with a joint UK-EU mechanism to ensure that regulation and principles of supervision are monitored as they evolve over time.

There would have to be a dispute resolution mechanism. We can call it a court or a tribunal—I do not much mind. We ought to think about the costs of a plethora of arbitration tribunals, although perhaps remaining within EFTA, or the EEA, will give us a ready-made dispute reconciliation mechanism through the EFTA court. It might be unwise to rule that out.

[Anna Soubry]

Is my hon. Friend concerned about the cost of all the provisions that will have to be made to govern all these various sectors and to manage all these new arrangements? Would he like the Government to produce, before any final meaningful vote in this place, the actual costs of delivering the Brexit deal?

[Robert Neill]

My right hon. Friend makes an entirely fair point. We should do that, because there is going to be an administrative cost that will ultimately be borne by consumers and taxpayers.

The industry itself has done analysis of the costs in some areas of financial services. For example, the wholesale banking industry estimates that if there is regulatory fragmentation, it is likely that $30 billion to $40 billion of extra capital will need to be raised. The London Stock Exchange Group calculates that changing the location of clearing houses—we must try to retain euro clearing, which is critical for the sector—will have a potential cost of some $25 billion, not just to us but to the EU27. It is in our mutual interest, on both sides, to get an agreement. No analysis of costs has been done: we should be honest about that and do so. We have to get these agreements.

We must ensure, too, that there is the ability to hire talent across the board and to move it seamlessly. It has to be possible that people can move staff from an office in Brussels, Paris or Frankfurt to London without any hold-up or delay—not even the need for the slightest bit of paperwork. That has to be achieved sensibly. Again, it is in our interest because otherwise we damage the ecosystem of the global financial hub that London is. As the Chancellor rightly acknowledged in his speech last week, the depth of the London capital markets frees not only businesses but sovereign debt for the EU27 nations. Too much rigidity from either side makes that difficult and puts it at risk.

The other thing that underpins this is the legal structure that goes with the professional services. Our legal services are second to none. We are the venue of choice for international litigation and dispute arbitration. That itself is a great gainer of income for this country. The legal services sector was worth £26 billion to the economy in 2015-16—1.5% of GDP—and is responsible for about £4 billion of exports, about 55% of which goes to the EU.

Fly-in fly-out arrangements are critical to that. We need an arrangement whereby, post the establishment directive, lawyers can have their qualifications mutually recognised in the EU27 states, can move seamlessly from one office to another, have the professional standing to advise their clients in EU27 countries and—this is very important but not often mentioned—have their client legal privilege recognised and protected, which can happen only where a lawyer’s qualification is recognised. Without a deal on that, British lawyers will not be able to advise clients or firms in EU27 countries—because professional privilege will not apply—appear in their courts or have the right to arrive in those countries and be present for negotiations with clients in important commercial contracts. It is critical, therefore, that we do not forget the need to get the legal services sector absolutely squared off in our future arrangements.

We must ensure the recognition and enforcement of judgments. A derivative contract—something we lead the world in—is worth while only so long as it can be enforced. We must ensure that they and all other commercial contracts have certainty of enforcement, not only over the transition period, but going forward, as they are typically written for three to five years. At the moment, we do that with one simple EU directive. It would be most unfortunate if we had to replicate that with each country plus those with which the EU has reciprocal arrangements. We can mitigate that by immediate action to join the Hague convention, but that is a back-up, not an ideal situation; we have to go further. I ask the Minister to detail what meetings he and his departmental officials have had with the Bar Council, the Law Society and, where appropriate, the senior judiciary to discuss the practical steps we need to take to safeguard the position of Britain’s legal services sector going forward and how it underpins the broader financial and professional services sector.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)]

I am grateful for the opportunity to respond to today’s debate, and I thank all right hon. and hon. Members who have taken part. I have very much enjoyed closely following the debate and the valuable contributions that have been made, and I am sorry that I will not be able to acknowledge them all in the eight minutes that remain.

I want to acknowledge the range of advice that the Government have been given, from my right hon. Friend the Member for Wokingham (John Redwood), who made a strong case for no deal, to my right hon. Friend the Member for Broxtowe (Anna Soubry), who made a strong argument for the customs union and EFTA, to which I will return in a moment. I was also grateful to my hon. Friend the Member for Clacton (Giles Watling) for representing his constituents by supporting the Prime Minister’s centre ground position.

The Prime Minister has been very clear that the UK will leave the EU on 29 March 2019, a date that is fixed as a matter of international and UK law under the article 50 process. That position respects the vote of the people in the referendum on 23 June 2016 to leave the EU, and there will not be a second referendum. As the Prime Minister set out in her Mansion House speech, our decision to leave the EU does not mark an ending; it marks a new beginning for our relationship with our European allies. We want the closest possible partnership. It is pragmatic common sense that we should work together to deliver the best outcome for both sides, and that is what we are doing.

I want to take a little time to talk about some of the solutions that have been proposed in relation to off-the-shelf models. As we have emphasised, we do not want an off-the-shelf solution or an existing model; we want the greatest possible tariff-free and barrier-free trade with our European neighbours, as well as to negotiate our own free trade agreements around the world, particularly in relation to our comparative advantage in services.

We want to ensure that UK companies have the maximum freedom to trade with and operate in European markets, and we want to let European businesses do the same in the UK. But we have always said that we are not looking for a Norway-style deal or a Canada-style deal. There is no point starting from scratch as we build our new relationship, because, unlike a country such as Canada, we start from the position of already having the same rules and regulations as the EU. Seeking a Norway-style agreement based on participation in the EEA agreement would not pass the first test that the Prime Minister set out for our future economic partnership with the EU. It would deliver control of neither our borders, nor our laws.

On borders, remaining in the EEA agreement would mean that we had to continue to accept all four freedoms of the single market, including freedom of movement. On laws, continued participation in the EEA agreement would mean the UK having to adopt at home, automatically and in their entirety, new EU rules, over which in future we will have little influence and no vote. This would not deliver the British people’s desire to have more direct control over the decisions that affect their daily lives.

Membership of EFTA, in and of itself, does not deliver any market access to the EU; it is a trading bloc between four European countries, Switzerland, Norway, Iceland and Liechtenstein. Three of those countries participate in the EU’s single market through the EEA agreement, while Switzerland participates in some areas through a series of bilateral agreements with the EU. Therefore, joining EFTA does not say anything about our future economic partnership with the EU. Although we want to maintain our deep and historical relationships with the EFTA states, the UK is in many ways different from those countries. Our population is about 65 million, whereas the EFTA states together comprise about 14 million people. In 2015, the EFTA bloc’s collective GDP amounted to £710 billion, which compares with the UK’s £1.9 trillion. So the UK’s participation in EFTA would fundamentally change the nature of that group and would not be an appropriate model for our future relationship with the EU or with those countries.

[Anna Soubry]

I was making the case for the single market and the EEA, and I am sure the Minister would agree that that is not an extreme position to hold.

[Mr Baker]

I listened carefully to the words my right hon. Friend used and I am sure the record will show that she referred to EFTA, but I am glad she has clarified that, in saying she supports EFTA, she means EFTA as an EEA member. But I stand by the remarks I just made. I hope she will not mind my saying to her gently that from the perspective of many who want to leave the EU, saying that we want to solve the problems of leaving the EU by staying in the EU’s internal market, with all that that entails for non-member states, and staying within the EU’s customs union, so that we have to accept the EU’s common commercial policy, appears to suggest that we must solve the problems of the EU by, de facto, staying within it. That is how it comes across to many people who wish sincerely to leave the EU. I did listen carefully to her—[Interruption.] The hon. Member for Nottingham East (Mr Leslie) mentions transition, and of course we have set out the case for the implementation period.

I must press on, because I want particularly to pick up a point relating to borders and migration.

Oral Answers to Questions

Anna Soubry Excerpts

Tuesday 27th February 2018 Commons Chamber

[Mel Stride]

The Government have made their position very clear: we are leaving the European Union, and that means we are leaving the customs union and the single market. However, we are determined to negotiate a deal under which our trade with the EU27 is as frictionless as possible and we are able, as a globally facing nation, to secure free trade agreements with other countries around the world.

[Anna Soubry (Broxtowe) (Con)]

Will the Minister confirm that the Conservative Government are and will continue to be the voice of British business, and that securing a strong economic future will be at the heart of the Brexit negotiations?

[Mel Stride]

I thank my right hon. Friend very much indeed for that question. I can of course confirm that we remain entirely committed to the strength of our economy and to supporting businesses up and down the country, not least in our negotiations with the European Union. I have some responsibility for the customs part of the negotiations, and we are committed to making sure that goods and services move as frictionlessly as possible across the boundaries with the EU27 following our departure.

Finance (No. 2) Bill

Anna Soubry Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 21st February 2018 Commons Chamber

[Peter Dowd]

That is not surprising: the banks returned to profitability because the taxpayer bankrolled them. That was how they got back into profitability, and they must pay their fair share of taxes as a result. The constituents of every Member of Parliament paid towards that, and when the profits came back in, the taxes went back up. We have helped the banks out, and they have to help our public services out.

The Government claimed that their introduction of the 8% corporation tax surcharge would offset the cuts to the bank levy. If we look at the autumn’s Budget Red Book and the forecasts from the Office for Budget Responsibility, however, we clearly see that the surcharge will not match the fall in the bank levy. According to forecasts, the surcharge is set to increase by £300 million a year, while the receipts that the Exchequer receives from the levy will fall by £1.7 billion a year. That leaves a £1.4 billion gap. That is a fact that is printed in the Government’s Red Book and, as John Adams opined, “facts are stubborn things”.

In 2018, we are still feeling the economic consequences of the actions of the banks. Every day, the Government tell us that there is no money for productive investment and that austerity must continue, yet they have conspired to undermine and limit any remuneration from the banks that caused this sorry state of affairs in the first place. Once again, the Opposition’s ability to amend this Bill has been hamstrung and blocked by the Government’s continued use of arcane parliamentary procedure.

[Anna Soubry (Broxtowe) (Con)]

The person who said that there was no money left was actually the occupant of the Treasury who left a note for the incoming Conservative-Liberal coalition Government in 2010. The reality is that of course there is money. We raise taxes and we spend them exceptionally wisely as a Conservative Government, particularly on infrastructure which, as the hon. Gentleman must surely agree, is now at record levels. It is just that we are still having to clear up the mess that was left by the last Labour Government.

[Peter Dowd]

The right hon. Lady can believe what she wants, but who will pay any attention to the Chief Secretary to the Treasury who took over from a Labour Chief Secretary to the Treasury, but was out of that job within two weeks because of issues around his parliamentary expenses? Does she expect us to pay any attention to that whatever? [Interruption.] That was what happened. David Laws—

[Anna Soubry]

Will the hon. Gentleman give way?

[Peter Dowd]

I will not give way. I am going to move on—

[Anna Soubry]

There’s a surprise!

[Peter Dowd]

The right hon. Lady can come back later on. This is not a dialogue, as you would no doubt tell me, Madam Deputy Speaker.

We have a timid, feckless and self-obsessed Government who are frightened of their own shadow. They continue to give more money back to the banks, notwithstanding the fact that they keep telling us that the resources coming into the Government are insufficient to support our public services.

We are seeking three things by moving new clause 3. First, we want to require the Government to carry out a review of the bank levy, including of its effectiveness in relation to its stated aims. Secondly, we want to establish the extent of the effect of the 2015 cuts on revenues from the levy. Thirdly, we wish to calculate how much would have been raised if the Government had stuck with Labour’s bankers’ bonus tax. Such a report would put under the microscope for all to see the Government’s malpractice—that is what it amounts to—in cutting frontline services while offering tax giveaways to banks that can more than afford them. It would require the Minister to acknowledge that far more would have been raised under Labour’s bankroll tax and, just as importantly, that the Government’s current bank levy has done little to influence and mitigate the risky banking practices that remain in use in our financial services industry.