Leaving the EU: North-East Exports

Debate between Barry Gardiner and Philip Hollobone

Tuesday 25th October 2016 Westminster Hall

[Barry Gardiner (Brent North) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate my hon. Friend the Member for Sedgefield (Phil Wilson) on securing this vital debate. Had he not, I know that my formidable colleagues, my hon. Friends the Members for Sunderland Central (Julie Elliott) and for Houghton and Sunderland South (Bridget Phillipson), who both spoke with such clarity, would certainly have initiated the debate otherwise. It is good to see a strong contingent from the north-east here in defence of their region.

The north-east is the major goods-exporting region of this country, with more than £12 billion of goods exported last year. It is therefore a powerful indicator to the rest of the country about the impact that the Government’s approach to Brexit will have. Let us be clear: 58% of voters in the region voted to leave, and all of us who have spoken from the Labour benches have said that we respect that—and we do. We must now all rise to the challenge of delivering that departure from the EU, but that departure must not undercut our industry, our labour rights or our prosperity. That is our clear message to the Government today. We have heard from several hon. Members about the destabilising effect on industry in the north-east of a divided Cabinet and a Secretary of State for International Trade who is pushing his own ideological agenda that will disrupt investment and threaten jobs in the north-east.

Of the £12 billion-worth of goods exported last year from the north-east, £7 billion were exported to the EU. That is 50% of the region’s total exports, making the region one of the most highly exposed to the uncertainty arising from the Government’s refusal to set out a clear plan and approach to the negotiations with the EU Parliament, or indeed to make that clear to the public. The value of north-east exports to the EU grew 30% from 2005 to 2015, yet in July, after the vote to leave, companies across the north-east suffered the sharpest rate of decline in business activity in four years, leading to scaled-down activity and jobs being laid off. Lloyds bank attributed that downturn to

“post-referendum vote market uncertainty”,

which caused the number of new incoming orders to the region to fall at the fastest pace in almost seven and a half years.

We know the Government will not provide a running commentary, and we do not ask for that, but perhaps they will provide some much-needed clarity to business about their futures. That is what I think all Members here are really asking of the Minister. What guarantees will the Government provide to businesses in the north-east about access to those markets in the future, and how similar will those terms be to the current ones? James Ramsbotham, chief executive of the North East England chamber of commerce, said:

“With the automotive sector being such a major part of the business community in the North East the future of the car-making is of crucial importance to our economy and employment prospects.”

What assurances will the Minister provide to car manufacturers about continued access to import parts from the EU to their supply chains, and to export cars, tariff-free, into mainland Europe?

My hon. Friend the Member for Sunderland Central raised that issue, but there is also a need for the Minister to answer the question about non-tariff barriers. Country of origin rules may well mean that, in the future, if we are outside the EU we cannot provide goods from this country—indeed, from many of the smaller companies in the north-east that my hon. Friend spoke of—that feed into supply chains in Europe for products that are then sold into third countries. They will not be admitted into the supply chain in the first place. The Minister knows that those supply chains are 18 months’ long, which means that decisions will be taken in Europe within the next six months on whether to source items for the supply chain from the UK. This is of vital and urgent importance, and it is critical that the Minister provides some answers on it for business.

What assessment have the Government made of the contribution that skilled workers coming into the UK make to the north-east export industries? Skilled workers in these industries are vital. Have the Government conducted a survey to find out what the skills base is in the north-east and to determine how they will continue to ensure that skills supply in the future?

While the weakened pound has given a short-term boost to certain exports, the steel industry is not benefiting from a low pound. The deal to buy the Tata pipe mill in Hartlepool is clouded with uncertainty, and the suggestion is that it would have been completed by now if it were not for the referendum result. That puts hundreds of jobs at risk. We have heard from my hon. Friends about the household brands that are facing difficulties, but we must not forget the small and medium-sized enterprises and the family businesses that are finding it impossible to invest in their own future in the region until the Government provide a clear plan. Ministers continue to drop heavy hints about their preferred—often contradictory—directions of travel. That is causing these businesses absolute turmoil with their investment profiles.

The priorities of manufacturing bodies are clear. The Society of Motor Manufacturers and Traders, EEF, the Chemical Industries Association, the British Ceramic Confederation and the UK Petroleum Industry Association—all representing phenomenal industries based in the north-east—are demanding guaranteed access to the single market to continue exporting without the extra costs that will make it harder to keep doing business there. Almost two thirds of the north-east’s exports to the EU are reliant on road vehicles, medical and pharmaceutical products and organic chemicals.

It is not just the goods exporters calling for this. A fast-growing marketing and PR agency based in Newcastle told my colleague, the MEP for the region, Jude Kirton-Darling,

“Creative and digital service industries like ours don’t export in the traditional way that goods companies do—but we benefit just as much from...membership and could be impacted badly by exit”

from the single market. Service industries are asking the same questions of Government. What analysis has the Department conducted of the impact on the trading balance in the north-east of different post-Brexit trading arrangements with the EU? Have the Government quantified the impact of losing access to the single market on the north-east economy? Will they do so before making a firm decision on their negotiating priorities? If we default to WTO tariffs post-Brexit, what impact will that have on exporters in the north-east? Bearing in mind the strong dependence on the single market of north-east exports and the regional trade surplus, what special measures will the Government consider to diversify export options for the region and avoid negative employment impacts that might arise?

The Government must clarify what will happen to the UK’s European Investment Bank status. Will we continue to be a shareholder and have unrestricted access to funding, or will we be considered a third country and thus only be eligible for the 10% of the fund made available for third countries? The Government’s webpage entitled “UKTI North East: helping companies export and grow overseas” was last updated in May this year. It reads:

“We’ve helped…create 346.5 new jobs through the European Regional Development Fund (ERDF) project”

and

“secure a further 1,014 jobs with our trade support activities for the ERDF project”.

That fund was actually proposed by the United Kingdom in 1972, but it is available only to European member states. We need to know what access we will have to those funds in future, because they are vital for industries in the north-east.

The Government might want to update their website, but it might also help if they provided their new strategy. The Government’s strategy has relied on EU funds to boost exports to BRICs markets and create jobs in the north-east. They must now provide answers about how they will ensure jobs and exports are maintained in the future through support for new projects once we have left the EU. The Chancellor’s guarantee of funding while we remain a member state, and for projects agreed before this year’s autumn statement, does not go far enough in giving answers to families, businesses and investors in the north-east. Can the Government commit to continued investment in trade promotion measures for the region post-2020?

[Mr Philip Hollobone (in the Chair)]

Order. I am enjoying the hon. Gentleman’s speech hugely, but he is almost twice over the guideline limit. If he carries on much longer, he will speak for longer than the Minister. He may, out of politeness, want to draw his remarks to a close.

[Barry Gardiner]

I would not wish to leave the Minister too little time to answer all the questions that my hon. Friends and I have asked this afternoon.

I will simply conclude by saying this. The danger is that the favoured trade model will not give control back to voters who told us that that was what they wanted. If the Government wanted to make the UK a great trading nation, they would not be putting forward options that would decisively cut ties with the world’s largest free trade area. The Government are not pursuing a free trade agenda. It would appear that they are using the vote to leave to embark on a ruthless deregulatory agenda, which will threaten jobs, public services, labour standards and environmental protections in the north-east and the rest of this country. The Minister must provide answers and clarity for business and the public.

[Mr Philip Hollobone (in the Chair)]

If the Minister could conclude his remarks at no later than 5.27 pm, Phil Wilson will have time to sum up.

Kashmir

Debate between Barry Gardiner and Philip Hollobone

Thursday 11th September 2014 Westminster Hall

[Barry Gardiner (Brent North) (Lab)]

In exactly a week’s time, the people of Scotland will go to the polls in a referendum to decide the future of our country. The debate has been hotly contested and not without its ill temper; but imagine the outrage on both sides of that debate if the Indian Parliament, the Lok Sabha, were today debating the merits or demerits of Scottish independence and passing judgment upon what we in the United Kingdom see as a matter for us, and us alone, to decide.

The Simla agreement between Pakistan and India is actually quite specific upon this point: it requires the two countries to deal with Kashmir bilaterally and without the involvement or interference of any other state. India and Pakistan have both signed that agreement; it is therefore disingenuous for any politician here to claim that this is somehow a matter in which they have a legitimate role or voice.

Certainly, it is the role of all hon. Members to represent the concerns of their constituents. I do not doubt that or disparage the hon. Member for Bradford East (Mr Ward) for seeking to do so. But I believe that it is still the custom for every Member, on first entering this House, to be sent a copy of the speech of that great parliamentarian Edmund Burke, in which he speaks to the electors of Bristol in the following manner:

“it ought to be the happiness and glory of a representative to live in the strictest union, the closest correspondence and the most unreserved communication with his constituents. Their wishes ought to have great weight with him; their opinion high respect; their business unremitted attention… But his unbiased opinion, his mature judgment, his enlightened conscience, he ought not to sacrifice to you, to any man, or to any set of men living. These he does not derive from your pleasure, no, nor from the law and the constitution. They are a trust from Providence, for the abuse of which he is deeply answerable. Your representative owes you, not his industry only, but his judgment; and he betrays, instead of serving you, if he sacrifices it to your opinion.”

I would ask all hon. Members who contribute to this debate to have the humility to reflect upon and cast their judgment over the following salient fact. Earlier this year, the people of India conducted the largest exercise in democracy and expression of the public will that has ever been concluded in the history of humanity, when 550 million free Indians—7 million of them living in Jammu and Kashmir—voted in peaceful elections. Nobody was assassinated; nobody refused to leave office. The world witnessed an orderly transition of power, as one Prime Minister gave way to the democratic will and passed the levers of state to a new Prime Minister with a different political vision for his country.

In the last elections to the 89 seats in the Legislative Assembly of the state of Jammu and Kashmir, 61.23% of the electorate—a total of 6.479 million citizens— expressed their confidence in the democratic structures of the state of India by voting. They also expressed their faith that the choices they made would find proper expression through their elected representatives under the constitution of India. It is worth recalling that 74.9% of the population of Jammu and Kashmir is of the Muslim faith, because simple mathematics then gives the lie to those who would claim that this is not true for the overwhelming majority of Muslims in Jammu and Kashmir.

The fact is that millions of Muslims in Jammu and Kashmir will make their way to the polls later this year, just as they did in 2008, but there is a significant difference this year. In the general election earlier this year, three of the six Lok Sabah seats from Jammu and Kashmir were won not by the traditional parties of power, but by the Bharatiya Janata party, which actually took the largest share of the vote in Jammu and Kashmir despite having promised to scrap article 370, which gives Jammu and Kashmir special status under the Indian constitution. It won 32.4% of the popular vote ahead of the National Congress party, ahead of the Peoples Democratic party and ahead of the Jammu and Kashmir National Conference party, which finished on 11.1%.

The significance of those statistics cannot be lost on anyone with any understanding of Indian politics. The Bharatiya Janata party—the Hindu nationalist party, led by Narendra Modi—is regarded as the no-nonsense scourge of cross-border Pakistani-sponsored terrorism and topped the poll in Jammu and Kashmir. What should that tell the world? Perhaps that the people of Jammu and Kashmir want the constant cross-border interference from Pakistan to stop.

The border between India and Pakistan that lies along the state of Jammu and Kashmir is 1,125 km long. Jihadi terrorists have been infiltrating along that length for more than 40 years and the construction of underground tunnels and the cover fire provided by the Pakistan military has been a constant means of undermining India’s security and integrity.

More than 20,000 people have already been killed by terrorists in Jammu and Kashmir, and it is no use hon. Members here in this Chamber of all places condemning the radicalisation of young Muslim men in their own constituencies, while ignoring the fact that those young men are trained in the terror camps that are operating on the Pakistan border with Jammu and Kashmir. Those who continue to argue to undermine the legitimate sovereignty of India might do better to reflect that the people of India live in a relatively transparent and well-functioning democracy where the economy is growing.

Those who point to the presence of the Indian army in the state of Jammu and Kashmir might reflect that it is not Indians who have seen successive Governments overthrown by military coups, and that if it were not for the constant cross-border attacks the Indian army would not need to be there with such a strong presence. It is there to guarantee the country’s border integrity, nothing more.

Many of the victims of the cross-border terror have been Muslims. That is, of course, particularly so in the Kashmir valley, where by far the overwhelming majority of people are followers of Islam. I welcome the fact that on his recent visit Prime Minister Modi spoke of the need to give specific help to those bereaved families. Another group from the Kashmir valley who deserve specific attention is, of course, the Kashmiri Pandits, who for so long have been displaced from their homes because of the fighting and live in the sort of refugee camps that, were they elsewhere in the world, would be a constant item in our evening news.

I welcome the fact that Prime Minister Modi’s first intervention after his election to office was to ask Nawaz Sharif to come from Pakistan to attend his inauguration. I welcome the fact that, as Prime Minister, he visited Jammu and Kashmir just last month, not to engage in political rhetoric against Pakistan’s continuing border violations, but to inaugurate a new hydroelectric power project. To my mind, he seems to be doing as he did in Gujarat and focusing on bringing prosperity and development to people in the belief that votes will follow. It is right that peace in the subcontinent over the issue of Jammu and Kashmir will come only when people living on both sides of the line of control see their quality of life and standard of living improve. With that in mind, it is ill-judged for British politicians to be debating the history and status of people who are currently facing the most devastating floods in 50 years.

Our attention should surely be on the human plight of the people of Jammu and Kashmir and the humanitarian crisis of the people affected by the bursting of the banks of the Jhelum river. At least 200 people are known to have died and thousands have been stranded. Against that background and while politicians here have been raising questions alleging human rights abuses by the Indian army, the Indian army itself has mounted an enormous relief operation that has already saved the lives of 76,500 people in the flood-affected area. It has deployed 30,000 troops for rescue and relief operations, the vast majority of them—244 columns—deployed in the Srinagar region and the Kashmir valley. Eighty transport aircraft and helicopters have been mobilised, and almost 1,000 helicopter sorties have taken place, dropping almost 1,000 tonnes of relief materials. Eighteen relief camps have been established to deal with the appalling aftermath of this natural disaster.

Perhaps those who have shown themselves so keen to decry the actions—

[Mr Philip Hollobone (in the Chair)]

Order.

Information for Backbenchers on Statements

Debate between Barry Gardiner and Philip Hollobone

Tuesday 20th July 2010 Commons Chamber

[Mr Hollobone]

I appreciate the hon. Gentleman’s point. I would say in answer to his question that it is a sensible way forward for the Procedure Committee to take evidence from hon. Members, and I suspect that he will be the first in the queue. The Chair of the Procedure Committee is here tonight to hear contributions from hon. Members. We can develop a sensible protocol that everyone can understand, including Ministers of Crown, and we can find a better way forward. I also say to the hon. Gentleman that the motion has been sitting on the Order Paper for some time, and if he had wanted to table an amendment, he would have been quite within his rights to do so.

[Barry Gardiner (Brent North) (Lab)]

The hon. Gentleman is making an excellent case, and I welcome how he is standing above party politics in order to do it. He mentioned the advent of 24-hour news. Does he similarly deprecate the fact that for once the news Galleries in this place are empty? There seems to be no appetite in the media for what the Chamber is trying to do in asserting the power of Parliament back over an overweening Executive.

[Mr Hollobone]

I thank the hon. Gentleman for that helpful intervention, although actually it was my right hon. Friend the Member for East Yorkshire (Mr. Knight), the Chair of the Procedure Committee, who made the point about 24-hour news media. However, the point made by the hon. Gentleman was spot on. The thrust of this motion, and the reason the Backbench Business Committee put it forward tonight, is that all too often the Press Gallery is empty. Why is it empty? It is because the media have generally heard about it all before we get to hear about it on the Floor of the House.

--- Later in debate ---

[Mr Hollobone]

There’s food for thought. My hon. Friend makes an excellent point.

[Barry Gardiner]

I rise simply to correct the assertion I made earlier that the Press Gallery was bereft. I have since noticed the not inconsiderable frame of one of the members of the press—I believe from the Jewish Chronicle—who—