European Affairs

Christian Matheson Excerpts

Wednesday 14th March 2018 Commons Chamber

[Greg Hands]

I think I understand my hon. Friend’s intervention, but the Government have been clear for more than a year, since the Lancaster House speech, that our objective is not to seek an EEA-style agreement. Nor is it our objective to seek a CETA-style agreement. It is our objective to seek a deep and comprehensive agreement with the European Union, the like of which, I remind my hon. Friend, who I know studies these matters very carefully, was not modelled in those analyses. That is the most important point.

[Christian Matheson (City of Chester) (Lab)]

rose—

[Greg Hands]

I am going to make a bit of progress.

I am going to give a few examples of our work around Europe. I promoted the UK’s defence industry in Sweden, visiting Saab, whose new generation Gripen fighter jet could be worth £1.1 billion to UK industry. I and my colleagues engaged with the Polish Government directly on behalf of UK companies to discuss high-value retail opportunities in the Czech Republic—in Czech, I might add, Madam Deputy Speaker. I and my colleagues from DIT and the Department for Exiting the European Union have addressed chambers of commerce right the way across the European Union—in Austria, Hungary and Bulgaria, among many others. I enjoyed making use of my language skills when I gave speeches in German to senior business leaders in Munich, Düsseldorf, Osnabrück, Tegernsee and so on.

DIT’s relationship with Europe does not just extend to export and investment promotion. The vote to leave the EU was not a vote to undermine the EU. It is very important to understand that it is in this country’s interest to have a strong and effective EU. We continue to engage constructively in ongoing EU trade policy, as we currently are a full and equal member of the EU. As the House heard on Monday, we are working closely with our European partners as well as bilaterally to respond to President Trump’s decision to impose tariffs on imported steel and aluminium.

--- Later in debate ---

[Stephen Gethins]

I salute the hon. Gentleman’s courage in bringing that up, but I am actually using his own Government’s figures.

[Christian Matheson]

Will the hon. Gentleman give way?

[Antoinette Sandbach]

Will the hon. Gentleman give way?

[Stephen Gethins]

I would like to make a little bit of progress, but I will come to the hon. Members in just a moment.

I am using this Government’s figures. We need to have a real and proper debate about how we plug the gaps in tax and in GDP.

[Christian Matheson]

The hon. Gentleman has obviously gone through a methodical process of working out the effect of Brexit on GDP. Has he worked out the effect on GDP of an empty Tory slogan?

[Stephen Gethins]

Well, we have worked out the impact on the NHS and on education, and that will be devastating to our public services because of the empty promises that each and every one of us will pay for.

--- Later in debate ---

[Christian Matheson (City of Chester) (Lab)]

Nothing I have seen since the referendum has convinced me that the plan for the UK to leave to EU is anything short of an act of national lunacy. The chaos that we are seeing now—whether over the intractable problems with the Irish border, or over the Government’s unwillingness to put anything on trade and customs issues to a vote in the House—just adds further to that impression.

Part of the problem is the Prime Minister’s inability to stand up to her Brexit extremists. Their letter demanding a hard Brexit had the added effect of reminding her that they have enough names to force a Tory leadership election. For me, that is what this business has been all about right from the start. David Cameron agreed to a referendum because he had failed to stand up to UKIP, so he dumped the Tory party’s Euro-divisions on the rest of the country. Then, as now, it was party before country. But I do not include all Conservative Members in that assessment, as I know that many share my concerns about the crazy rush to a hard Brexit because they know the catastrophic financial and economic effects that it would bring. They must make a stand and not allow their side of the House to be dominated by the minority of European Research Group fanatics who currently make all the running, and I pay tribute to those who have had the courage to do so. My hon. Friend the Member for Streatham (Chuka Umunna) floated the interesting suggestion that there should be a free vote on the final deal—that is quite an intriguing proposition.

Just as I do not believe that there is a majority in the House for a hard Brexit—a nasty Brexit—nor do I believe that such a majority exists in the country. We know that 48.5% of those who voted did not want any Brexit, and I cannot believe that every one of the 51.5% who voted leave did so to make the country worse off as a result of a harsh and nasty Brexit—and make us worse off it will, as every single one of the Government’s own sectoral and regional analyses demonstrates. The very least we must be aiming for is a customs union, as my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), who has led the debate for the Opposition with methodical thoughtfulness and a case based on evidence, has long argued.

On the other side we have no evidence, only vague promises that everything will be just fine post Brexit and that we will simply be able to trade freely with the rest of the world. It is like promising a five-year-old rainbows and unicorns. In his speech just two weeks ago, the Secretary of State for International Trade talked vaguely about exploiting “opportunities of the future”, without really laying out what that meant. At the same time, the Government pin all their hopes on a free trade deal with Trump’s America—the same regime that has sought trade conflict with us in the automotive and aerospace sectors, and now in the steel sector.

There is abundant evidence from industry to contradict the Government’s position. We heard from Ralf Speth of Jaguar Land Rover, who said that without a customs union, JLR would be hit with additional annual costs of £1.1 billion from profits of £1.4 billion. We see PSA raising the spectre of doubt about the future of the Vauxhall plant in Ellesmere Port, which is next door to my constituency. Although I welcome the new investment by Toyota, including in the Deeside engine plant that is also next door to my constituency, the basic fact is that such investment decisions are made two to three years in advance. That decision was already made before the Brexit negotiations. I am more concerned about the words of warning from the Japanese ambassador, after his meeting with the Prime Minister, about Japanese companies having to reassess their investment in a UK without easy access to Europe.

Similarly in aerospace, Airbus needs certainty over a customs union. Flights come in and out of Chester airport several times a day, carrying parts to and from Hamburg and Toulouse. Without sensible customs arrangements, the company’s brilliant, efficient, multinational manufacturing process would be impossible. Aerospace and aviation companies also need regulatory certainty—and quickly. Again, we are already approaching the cliff edge because of long lead times. I have heard Conservative Members making the absurd suggestion that we should simply align ourselves for regulatory purposes with the United States Federal Aviation Administration, which demonstrates that, for those hard-line Brexiteers, this is all about ideology and lining up with a right-wing, Trumpist America, rather than doing what is right and best for British industry, jobs and skills.

I finish with a point that was touched on by my right hon. Friend the Member for Leeds Central (Hilary Benn) regarding our relations with Russia. I am clear that I welcome the Prime Minister’s strong words today on Russia. We must be tough in standing up to Putin’s bullying, but we have to ask why Putin is attacking the UK at this time. There might be some domestic reasons, but he does seem focused on the situation here. He has already meddled in the EU referendum, and I expect more details of that to emerge in the coming months, but he knows that by isolating ourselves from the EU—from our allies who share our values and oppose his—we are weaker than we were.

I strongly support NATO and Britain’s active membership of that great alliance, but the EU is also an alliance of security. When it comes to economic as opposed to—God forbid—military conflict against an aggressor, we should be seeking the support of our allies in the EU. Now is not the time to be walking away and going it alone when we are faced with Russia’s threats. I hope that hon. Members might, in quieter moments, take the time to consider whether, in the light of Putin’s latest aggression and his meddling in our democracy, we need to reassess this whole Brexit mess as something that is not currently in the UK’s national interests. Putin’s tactics are to sow chaos through doubt, discord, confusion and disharmony. Surely even from the point of view of Brexit extremists, all of a sudden there is a greater threat to the UK and the west than the European Union—I hope that they wake up to it.