Exiting the European Union

Christian Matheson Excerpts

Tuesday 24th November 2020 Commons Chamber

[Lucy Powell (Manchester Central) (Lab/Co-op)]

Can I also, at the beginning of this debate, express, I am afraid, my absolute shock and disgust, frankly? This statutory instrument was deemed so important that it was brought to the Floor of the House rather than a Committee. Frankly, I could have been there as well and given a cursory speech and been at home with my children. But, instead, I prepared a proper speech that is fitting of a debate on the Floor of this House on a statutory instrument that has wide-ranging—very wide-ranging—powers.

The Minister and I do not usually stand opposite one another. We did have that pleasure this morning. This morning, in the debate we had in Westminster Hall, I thought to myself that I respected the Minister. It was the first time I had seen her in action, and I really did think what a sound and reasonable Minister she was. But, frankly, she is taking instructions from her Whips. That is her judgment to do. But in time, that will not be very fitting of her ministerial role. I know she will feel deeply uncomfortable with what she is being asked to do and it is pretty embarrassing for her.

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

I am listening to this, and I have to say that the impression I am getting is that the shadow Minister, whom I thank for giving way, is being asked to do the job of the Minister—namely, explaining to the House the basis of the statutory instrument that is before the House. Surely that is not the role of the shadow Minister.

[Lucy Powell]

Absolutely not, and my hon. Friend is right to make that point. It is not just we in this House who need these explanations. Frankly, businesses in particular are being left completely blind at the moment about how on earth they are supposed to prepare for the end of the transition. We are no further down the road with a deal, and they have no idea of the terms under which they are going to be trading in a few weeks’ time. I am sure many of those businesses, notwithstanding the total chaos that they are subject to at the moment as well, are tuning in to the parliamentary channel today to try to shed some light on this issue, and they did not even get a hello or a by your leave from the Minister.

[Lucy Powell]

My right hon. Friend is absolutely right. He makes a very important point. Really, if this Government want to have any standing whatsoever with business, which is very shaky at the moment, I have to say—their reputation with business is incredibly shaky—they must do better. Any business tuning in right now would be, frankly, appalled because this has given them no information whatsoever.

[Christian Matheson]

I am now beginning to share the indignation of my hon. Friend on the Front Bench, because we have gone through a process from “eff business” to an “oven-ready” deal that frankly was not oven-ready, and now we have businesses waiting, as my right hon. Friend the Member for Leeds Central (Hilary Benn) says, to find out what is looming upon us in 39 days, and there is still no absolute clarity. Does my hon. Friend agree that the real problem is that the progression is getting steadily worse, with steadily more disrespect for the business that pays the bills of this country?

[Lucy Powell]

I absolutely agree. I said at the Dispatch Box a few weeks ago that the Conservative party was no longer the party of business. The Government are doing themselves no favours whatsoever. I do not know what shenanigans are going on or why the Whips are telling the Minister to speak for only a minute or two. I thought that such shenanigans would depart when Dominic Cummings left No. 10, but it seems that they are going to continue. If this is about curtailing debate, well, I am very sorry but I have news for the Government, because we are not going to be curtailing this debate.

[Lucy Powell]

My hon. Friend is absolutely right. I have not even started my substantive speech yet, which I intend to make, but I will come on to make some of those points. Time and again this Government show disregard not only for business but for devolution and power sharing. I think we have made our point about our real—[Interruption.] The Minister is now taking further instructions from the Whips, and I have no doubt that her winding-up speech will be even shorter than her opening remarks. She might want to maintain a bit more social distancing while she is doing this, because that is nowhere near—[Interruption.] Oh, are you allowed to sit that close together?

[Christian Matheson]

There is another possibility, of course, which is that the Government Whip on the Treasury Bench is explaining the basis of this statutory instrument to the Minister because she was not aware of it.

[Lucy Powell]

I don’t know what is going on, but I want to put on record my huge disappointment on behalf not just of those of us who have spent time preparing for this debate but of all those watching these goings-on. If this statutory instrument is important enough to be brought to the Floor of the House, it is important enough to be debated. I can see that there are decent, honourable Conservative Members who have not withdrawn and who are here to make a substantive speech for themselves, and I hope that the right hon. Member for Wokingham (John Redwood) will take his time in doing so.

I will now get on to my speech, as I have perhaps taken up a lot of the time that the Minister might have used to explain the statutory instrument to us. We do not oppose this statutory instrument today, because we recognise that it is a natural consequence of leaving the EU and an end of the transition period.

--- Later in debate ---

[Lucy Powell]

My hon. Friend makes an excellent point, and those are the real risks that we currently face. There is real uncertainty around the deal. Many of the previous commitments made are now undermined, and that will have a devastating impact on particular sectors, such as the automotive industry and the aerospace industry—perhaps my hon. Friend the Member for City of Chester (Christian Matheson) wants to come in on that. Both those sectors are particularly powerful when it comes to the so-called levelling-up agenda, and I worry about that.

[Christian Matheson]

I was going to talk about the automotive sector, but since my hon. Friend tempts me, I will mention the aerospace sector, which is a major employer in my area and the region that we share. Aerospace jobs with prime contractors or first-tier members of the supply chain have a jobs multiplier effect of four, five or six jobs for every one job in that prime or first-tier supply chain. It is not simply about the aerospace companies; the manufacturing industry right across is holding on, dangling, and waiting for some kind of hope of a deal, but we are not getting it.

[Lucy Powell]

My hon. Friend makes a powerful point. Those big manufacturing businesses are waiting every hour that passes for some news on a deal, and today they will be tuning into the Parliament channel to find out what will happen with the movement of goods after we end the transition period. Those cornerstone companies are what communities are built on, and when they go, they are gone. That is why this debate is so important, and frankly the Government’s disregard for it is embarrassing.

--- Later in debate ---

[Lucy Powell]

My hon. Friend is absolutely right. This statutory instrument should and could be an opportunity to clarify those matters but, as I said at the beginning of my speech, it will take provisions away without any of us understanding what will replace them. That is causing a huge amount of uncertainty, not just here in the UK but, as my hon. Friend says, in the UK territories. I am sure that, given its closeness to the EU, Gibraltar will be worried as well.

[Christian Matheson]

My hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty) is absolutely right. I was grateful to visit the Falkland Islands during the squid-fishing season as a guest of the Falkland Islands Government. Squid fishing is a major part of their economy. It is an utterly inevitable consequence of what has happened that our overseas territories—my hon. Friend the shadow Minister mentioned Gibraltar as well—will feel out on a limb. We need to be able to assure them, as soon as possible, that they are not out on a limb. That assurance is still not forthcoming with, as my right hon. Friend the Member for Leeds Central (Hilary Benn) has said, 39 days to go. These are territories that choose to be British and they are not getting the kind of reassurance that they desire.

[Lucy Powell]

My hon. Friend makes a powerful point. Perhaps next time he goes on a delegation there he can see whether I want to join them, as the shadow business Minister. It sounds like a good trip, and I am partial to a bit of calamari, so I would enjoy that.

This statutory instrument relates not just to UK-EU trade, but to the requirement for a new framework for UK-wide trade, as we have been debating through the United Kingdom Internal Market Bill—now in the other place—because current treaty provisions also govern trade in goods across the UK. Will the Minister update us on where these issues are now up to, as we need to know before stripping away all the trade regulations that currently apply across the UK? As has been raised, any divergence needs to be agreed with the devolved Administrations, and that is why we are hoping that common standards for trading agreements will be agreed via the common frameworks put on a statutory basis. Ministers herald this approach yet refuse to put them on a statutory footing. There have been many long discussions on this in the Chamber and in the other place. The Government recently lost votes on this aspect of the internal market Bill, so we are hoping that the Government will accept these amendments when they return. Can the Minister confirm that?

[Lucy Powell]

My hon. Friend is absolutely right. That is why it is such an important issue, and we really are hoping and expecting that the Minister will confirm today that the Government will accept the amendments on this that were passed in the other place, because it is about how we as a country are coming to an agreement about standards. I am sure that these issues will be raised later in the debate.

The Government must respect the devolution settlement and work collaboratively, in good faith, with the devolved Administrations to build that strong and thriving internal market with common standards underpinning it. Not doing so would threaten our precious Union by putting rocket boosters under the campaign for independence in Scotland. I know that the Prime Minister is very keen to talk about Christmas at the moment, but he seems to be giving the Scottish First Minister all her Christmases at once by his constant undermining of devolution recently. He seems to have made another blunder on that recently, propelling her campaign for Scottish independence by, as I said, putting rocket boosters under it.

On that point, I wonder whether the Minister would also explain to us the status of this statutory instrument. It is my understanding that her colleague, the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Stratford-on-Avon (Nadhim Zahawi), wrote to his counterparts in the devolved Administrations to seek their consent for him to lay this statutory instrument, which she is taking on his behalf, as some goods potentially affected by this instrument fall under devolved competence. I understand that consent has been received from the Welsh Government, but not yet from the Scottish Government—I do not know whether the hon. SNP spokesman wants to come in on this. I am not sure whether we can lay and agree to this statutory instrument today on that basis. What happens if the Scottish Government do not consent to it but Parliament already has? I do not know whether anyone knows the answer to that or if the Minister wants to rise to clarify that.

[Christian Matheson]

rose—

[Lucy Powell]

Maybe my hon. Friend knows.

[Christian Matheson]

We can do better than that, of course, because we had word from the Prime Minister last week, who described devolution as “a disaster”. Conservative Members are playing fast and loose with the Union. They are playing fast and loose with the United Kingdom. They are playing fast and loose with devolution, and their attitude to devolution was shown from the very top by the Prime Minister. That surely answers my hon. Friend’s question.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. We will stick to the terms of this statutory instrument, which is fairly narrow.