Motor Sector: Export Markets

Baroness Randerson Excerpts

Monday 14th September 2020 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

My Lords, of course there is a plan. It is to conclude a successful negotiation with the EU in relation to these matters. That is vital because the automotive sector is extremely important to the UK. The UK exports 80% of vehicles manufactured, which accounts for no less than 14% of UK-manufactured exports.

[Baroness Randerson (LD) [V]]

My Lords, this industry is deeply integrated with the EU and was already suffering because of Brexit. Honda in Swindon and Ford in Bridgend are both casualties, and the decision has been made by Ineos not to build in Merthyr. The pandemic has added more problems. Vehicle manufacturers need zero tariffs and the same regulations as the rest of Europe. Will they get that, and what tariff mitigation measures are the Government putting in place to protect the industry if there is no deal?

[Lord Grimstone of Boscobel (Con)]

My Lords, we know that the automotive industry has concerns about the cost implications of any tariffs, frictions at borders and divergence in regulation following the end of the transition period. These are the very reasons why we want a relationship with the EU based on friendly co-operation between sovereign equals and centred on free trade. Those are the objectives we are working towards.