European Affairs

Debate between Anna Soubry and Jonathan Edwards

Thursday 15th March 2018 Commons Chamber

[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.

European Union Citizenship

Debate between Anna Soubry and Jonathan Edwards

Wednesday 7th March 2018 Commons Chamber

[Jonathan Edwards]

I am extremely grateful to the hon. Gentleman for his intervention. As always, he makes a very valid point. I congratulate him on the excellent work he is doing on the Select Committee. I was privileged to serve on that Committee with him in the last Parliament, and his contributions are always extremely valuable.

Much of the debate following the referendum has surrounded the economic impact of Brexit. There is little doubt in my mind that the best way to protect the Welsh economy is to stay inside the single market and the customs union, and that has been my position from day one. The issue of European Union citizenship rights of UK subjects, however, has not had the level of consideration it deserves.

At this point, I should pay tribute to Jill Evans, the Plaid Cymru MEP representing the whole of Wales who commissioned a report on that issue in the immediate aftermath of the referendum. Her work has gathered considerable support in the European Parliament—including, critically, from Guy Verhofstadt, the lead Brexit negotiator for the European Parliament. Indeed, I understand that the Under-Secretary of State for Exiting the European Union, the hon. Member for Worcester (Mr Walker), has had discussions with Mr Verhofstadt on that issue. I would be grateful to learn from the Minister in his response whether that issue was discussed yesterday with Mr Verhofstadt during his visit to London. The idea has also gained the support of the European Parliament’s Committee on Constitutional Affairs.

I sense, perhaps wrongly, that the British Government have an open mind to what we are proposing today. I am being kind, because it has been a very good-natured debate so far. The Secretary of State for Exiting the European Union, in response to the hon. Member for Stafford (Jeremy Lefroy)—who I am delighted to see in his place and thank for his contribution, which hit the nail on the head—said:

“The aim of this exercise is to be good for Europe and good for Britain, which means good for the citizens of Europe and Britain. That is what we intend to do.”—[Official Report, 2 November 2017; Vol. 630, c. 947.]

In her speech last Friday at Mansion House, the Prime Minister failed to provide any great clarity on some of the main issues that have concerned Members in relation to the British Government’s Brexit policy. However, a part of her speech did catch my attention, when she conceded that, despite her hard Brexit policy, she would seek to negotiate UK associate membership status with several EU agencies.

[Anna Soubry]

I completely agree with the hon. Gentleman about the benefits of our remaining in the single market and the customs union. However, I disagree with him when he says that the Prime Minister’s policy is to have a hard Brexit. If one thing absolutely came out of the Mansion House, it was a firm rejection of a hard Brexit. Does he at least agree with me on that?

[Jonathan Edwards]

I am always delighted to hear from the right hon. Lady, with whom I work very closely on these matters. However, I fear that the Prime Minister in her speech managed to continue the strategy of trying to placate both sides of the Conservative party. Ultimately, she is going to have to make a call one way or the other. The fact that the right hon. Lady welcomed the speech and the hon. Member for North East Somerset (Mr Rees-Mogg) welcomed the speech—

Duties of Customs

Debate between Anna Soubry and Jonathan Edwards

Ways and Means resolution: House of Commons
Monday 20th November 2017 Commons Chamber

[Jonathan Edwards]

That is grounds for huge concern, because these trade negotiators will be up against expert teams that have been carrying out such negotiations for many years, and this is not just about the EU deal. If it is the British Government’s intention, as one of their first options, to take on the United States in trade negotiations, I would advise them to take the advice of the experts who told the Exiting the European Union Committee in the previous Parliament that the UK should perhaps look to smaller countries for their initial trade negotiations, rather than something as powerful as the US trade lobby.

The EU customs union’s numerous existing international trade deals have already have been mentioned. Those deals cover more than 50 countries, and several other trade negotiations are ongoing. A third of all EU members’ trade outside the EU is with those countries. When the Department for International Trade was set up and the Secretary of State for International Trade answered oral questions for the first time, the first question I asked him was what would happen to all the trade deals that we already enjoy around the world. His view was that they were going to be renegotiated, seamlessly, but I fear that that showed extreme naivety on his part. Why would those countries agree to the same terms and conditions with a far smaller trading bloc, which is what the UK will be, as they agreed with the EU customs union? Surely they will want to renegotiate so that they look after and promote their own interests, rather than just accept what is on the table.

The British Government’s intended policy of leaving the single market and customs union is already having a huge impact on Welsh people’s standard of living. The Centre for Economic Performance has calculated that Brexit has already cost the average worker in Wales £448 annually, with its effect on wages and the higher cost of living disproportionately affecting people in Wales—and that is before we actually leave the EU.

With 90% of Welsh food exports destined for the EU customs union, a reckless Brexit could be disastrous for the communities I serve in rural Carmarthenshire. In a recent meeting with sheep farmers, I was amazed to find out that 50% of their produce was sold domestically, with 50% sold in Europe. Domestic markets will not be able to fill those gaps if we lose unfettered access to European markets.

It is also worth concentrating on some of the tariffs associated with food products. The average tariff on dairy products is 38%. For meat products, we are talking in the region of 58% to 70%. That would clearly make our food products destined for the EU completely uncompetitive. Farmers are preparing for 2019-20 at the moment, so they need answers now. They cannot wait for a protracted trade negotiation.

I also want to concentrate on the impact of leaving the customs union on the border between the British state and the Republic of Ireland. Much has already been said on this matter tonight and it has also had considerable media coverage, not least because the border on the island of Ireland is one of the three sticking points that need to be resolved before we reach first base in our negotiations with the European Union. Despite the fact that both sides have focused on this matter since the beginning of the negotiations, we are no nearer a solution. Indeed, press reports over the weekend seemed to indicate that things are getting even more difficult.

The British Government have miscalculated the resolve of the European Union. The EU’s overriding priority in these negotiations is maintaining the integrity of the single market and the customs union. Therefore, in choosing to leave those frameworks, the UK will become a third country—in other words, a competitor. In those circumstances, we will not get a “have your cake and eat it” solution. As the right hon. Member for Broxtowe said, the British Government are living in fantasy land. There will be no such thing as a special partnership. If we are not part of the single market or the customs union, the best thing that we can hope for is a free trade agreement similar to that of Canada. A welcome development in recent months is the fact that both Labour and the Government have agreed that a transition is a good idea, but the key question is what happens at the end of the two years.

[Anna Soubry]

Does the hon. Gentleman agree that the reality is that we will not get a great deal because the EU does not want to give us a great deal? If it gives us a great deal, it would have to give one to a whole load of other people who might decide to leave the European Union. Although I am not saying that it wants to punish us—I do not think that it does—it does have a responsibility to keep the European Union together.

[Jonathan Edwards]

The right hon. Lady captures my sentiments exactly. By deciding to leave the single market or the customs union, we effectively become a competitor —a third country. On that basis, the overriding priority of the European Union is to protect its interests. A lot of the problems that are arising in our negotiations, as we heard from the hon. Member for Glenrothes (Peter Grant), could be dealt with if we said that we wanted to stay in the single market and the customs union.

The transition period is a welcome development, although I am slightly unclear about whether the British Government and indeed the Labour party are arguing for being in “the” customs union or being in “a” customs union with the European Union, because they are diametrically opposed. Even if we did decide to stay within the single market and the customs union for the transition period, the key question arises of what happens at the end of that two-year period. If we are to have a free trade agreement such as that with Canada, it will take far longer than two years to negotiate.

With reference to the border on the island of Ireland, Michel Barnier, the chief negotiator on behalf of the European Union, has said that the EU will not tolerate the UK using this soft border between the six counties and the Republic as a way of avoiding the trade consequences of leaving the customs union. That is the crux of the problem. Even if the British Government’s position stands, there will be two types of borders between the Irish Republic and the British state. There will be a soft border on the island of Ireland and a hard border on the maritime divide between Ireland and Wales. Inevitably, that will have a huge impact on Welsh ports.

We heard earlier about the huge tailbacks that we can expect at Dover and some of the Channel Island ports. Welsh ports will face exactly the same situation, and the infrastructure is not there to deal with such challenges. That might lead to business being diverted away from the traditional Wales-Ireland trade routes to trade routes between Belfast and Scotland and England. Therefore, instead of businesses flowing between Dublin, Dun Laoghaire, Rosslare and Cork to Holyhead, Fishguard and Pembroke, they will be flowing between Belfast and other parts of the UK. We must remember that the Welsh ports sustain thousands of jobs. This is all an unintended consequence of the British Government’s muddled policy.

I want to finish with a point about the impact of leaving the customs union on the UK’s constitutional arrangements. International trade is a reserved matter. However, trade policy could have massive ramifications on the ability of the Welsh, Scottish and Northern Irish Governments to deliver on devolved competences. For instance, if the British Government were to allow food products of a lower standard to enter the UK, it would obviously have an impact on Welsh agricultural policy, not least our ability to export to our main European market in the customs union. If the British Government, for whatever reason, open up public services to further private interference, which has been the concern of many experts in this field, it would fundamentally undermine the ability of the devolved Governments to deliver competences within their public services for which they have responsibility. There is probably a whole range of other problems that I have not even considered yet.

In recognition of those potential problems ahead, the trade White Paper does talk about reconstituting the Board of International Trade with representatives from all four constituent parts. However, that does not go anywhere near far enough. In my view, trade policy would have to become an area of shared competence between the British and the devolved Governments. Within the EU customs union, EU trade deals need the endorsement of all member states and even some other governments, as we saw with the issue of Wallonia during the comprehensive economic and trade agreement discussions. It would be absolutely incredible to me if trade policy was the sole preserve of Westminster, with the interests of Wales, Scotland and Northern Ireland neglected, and our devolved and democratic Governments and Parliaments not allowed to have a say on that. In my view, Brexit will make a new UK constitutional settlement inevitable. Inter-governmental networks within the British state will need to be formalised and strengthened. If we fail to do that, every trade deal could be a constitutional crisis.

EU Referendum: UK Steel Industry

Debate between Anna Soubry and Jonathan Edwards

Wednesday 13th July 2016 Westminster Hall

[The Minister for Small Business, Industry and Enterprise (Anna Soubry)]

It is a pleasure to serve under your chairmanship, Mrs Gillan. I do not know whether you have had the great pleasure of chairing a steel debate before, but I know that you have family connections in Wales. The majority of the speakers in this excellent debate are from Wales—a part of the United Kingdom that is very dear to your heart—so welcome to the gang. As you will have gathered, we regularly meet here or in the main Chamber to debate this issue with all its twists and turns. It is fair to say that, the last time we debated this issue, none of us anticipated that the next time that we gathered for a debate it would be on this subject.

I pay huge tribute, as ever, to the hon. Member for Cardiff South and Penarth (Stephen Doughty) for securing this debate. I will not have time to address all of the points that have been raised, but I will try to stick to the actual topic of the debate, which is the effect of Brexit on the steel industry.

It is right, good and fair to say—I am going to be a bit partisan here—that it is very much to the credit of my party that we have avoided the uncertainty that we undoubtedly would have had if we had waited until September to elect a new leader and install a new Prime Minister. That would not have been the best thing for our country or, indeed, our economy and our steel industry. We absolutely need certainty, and my hon. Friend the Member for South Northamptonshire (Andrea Leadsom) did everybody an enormous favour with her greatly courageous decision. We now have a new Prime Minister who can, frankly, get on and do all the things that need to be done to create certainty. She can answer many of the questions that I cannot answer, because this is a matter for the new Prime Minister and her Government.

In the words of the hon. Member for Aberavon (Stephen Kinnock), Brexit is a fact. It might hurt us but, as he rightly said, it is the will of the British people. At least we know where we are on that. We have a big task ahead of us, and I am sure nobody here is under any illusions about the scale of the complexity that we face as we withdraw from the European Union. It will take a number of years and it will be hugely complicated, but we are beginning. We will see stability and confidence return to the economy, and that will have a great impact on our steel industry.

The United Kingdom steel sector exported 6.3 million tonnes of steel last year, 3.3 million tonnes of which went to European Union member states. That is how important the EU is to the exporting of steel. Access to the single market is absolutely critical, not just for steel but for the whole of our economy.

The automotive sector has been a massive success story in recent years. We have exported a huge number of cars—many of which are made with British steel—to EU markets. I went to Nissan only the other week, and I was reminded that 45% of the steel that it uses is made here in Britain. That is the point that the hon. Member for Cardiff South and Penarth was making. I gently say to the Scottish National party and the Scottish Government that it is not just processing that is so important. It is also important that we buy British-made steel—steel that is made in Port Talbot or Scunthorpe, not Turkey.

It is important that we secure tariff-free access to the European market, not just for the steel sector but for the parts of our economy that buy British steel, such as the automotive sector. I have personally spoken to the important people at all the large automotive companies to reassure them and to tell them how critical it is that they keep putting in orders to Port Talbot, and they told me that tariff-free access is important for their sector.

[Jonathan Edwards]

The Minister mentioned the complexities following the referendum result for export strategy. What analysis have the UK Government done to date of the countries that UK-based steel producers export to? How many trade deals are now going to have to be renegotiated so those exports can continue?

[Anna Soubry]

I do not know about the actual figures, but we have looked at that with considerable care, and we will continue to do so. A special unit has been set up, and—if I can put it this way—will be beefed up by the incoming Prime Minister. Those are exactly the sort of issues and complexities that we are going to have to deal with.

Let me make it very clear that, until we actually leave the EU, we are a member of the EU. I think some people think we have left. Well, we have not left. We are still subject to all its rules and regulations—for example, the state aid rules—and we have access to the single market. Those things are incredibly important throughout the process that will now unfold. While we remain a member of the EU, we are subject to the state aid rules, the trade defence measures and so on. What replaces those rules—we may remain subject to them in return for market access—is for the new Prime Minister and her team to negotiate. Whatever my role is—I may end up on the Back Benches—[Hon. Members: “No!”] The worst nightmare of the hon. Member for Hartlepool (Mr Wright), who has been my hon. Friend on many occasions, is that I return to the Back Benches and then end up on his Select Committee.

UK Steel Industry

Debate between Anna Soubry and Jonathan Edwards

Thursday 21st January 2016 Westminster Hall

[The Minister for Small Business, Industry and Enterprise (Anna Soubry)]

It is a pleasure to serve under your chairmanship, Mr Rosindell, as it was to have Mr Walker in the Chair before you. I congratulate the hon. Member for Aberavon (Stephen Kinnock) on securing the debate through the Backbench Business Committee. It is pertinent that it is being held in this very sad week when, yet again, we have seen a huge number of job losses at Port Talbot and other parts of south Wales, followed by yesterday’s news that Sheffield Forgemasters will be making 100 of its employees redundant.

I apologise, Mr Rosindell, for often not even chuntering but speaking quite loudly from a sedentary position, but I get somewhat agitated because I am a little tired of Opposition Members consistently misrepresenting not only my own views—there is nothing that makes me more cross than when somebody tells me what I think—but the views of the Government, and questioning our determination and all that we have achieved to secure the future of a sustainable steel industry. Nobody but nobody has a monopoly on compassion, support and care for any of the workers in this country. We all come to this place—at least I hope we all do; this is certainly my experience—with the same passion and care for all our constituents and, indeed, everyone. Where we disagree is on how we achieve the things that, by and large, we all want.

[Jonathan Edwards]

Will the Minister give way?

[Anna Soubry]

In a moment.

I want to put something on record. I do not know whether it is significant, but my great-grandfather worked as a cutler in Sheffield. He then became a teacher, and then music teacher. In fact, he was knighted, but those are matters that do not concern us.

--- Later in debate ---

[Anna Soubry]

I can do better than that, and I intend to.

My grandmother came from south Wales. We do not know much about her history, but we believe that her family also worked in the steelworks. Many of us can draw on our family experience, which is perhaps why I have a passion for securing the future of the steel industry, as does my Prime Minister. When I was appointed in May, one of the things that he asked me to do, apart from effectively being the Cabinet representative for small businesses, was to help to support and assist the steel industry in difficult times.

[Jonathan Edwards]

Based on the Minister’s opening remarks and the disgraceful comments from the Labour Front-Bench spokesman, will she explain why during Prime Minister’s questions yesterday the leader of the Labour party had six opportunities to ask about steel, but did not raise the issue once? It was left to Plaid Cymru to raise the matter during the most important parliamentary event of the week.

[Anna Soubry]

The hon. Gentleman has put all that on record.

My hon. Friend the Member for Brigg and Goole (Andrew Percy) quite rightly said that some of this should be well above party politics. It is tedious that Opposition Members do not understand that they judge everyone by their own standards; the Government are genuinely not as tribal. Opposition Members—

Steel Sector

Debate between Anna Soubry and Jonathan Edwards

Monday 18th January 2016 Commons Chamber

[Anna Soubry]

No, I am afraid I do not agree with that. I think we are better within a reformed European Union, and this is a good example of the benefits of our continuing membership of the EU.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Port Talbot and Trostre are situated within an EU tier 1 assisted area. What consideration has the UK Government made of a holiday for employer national insurance contributions to help Tata reduce its employment costs?

[Anna Soubry]

That is exactly the sort of conversation that I am more than happy to have with—I nearly said my right hon. Friend, but the hon. Gentleman might take exception to that. I am more than happy to discuss that issue with him.