European Union (Withdrawal) Bill

Lord Mackinlay of Richborough Excerpts

Wednesday 13th June 2018 Commons Chamber

The Government’s own economic impact assessments for the north-east portray a major reduction in our region’s GDP and economic growth in the coming years, whatever the deal. I do not know how making people poorer will lift the grievances felt in some of our communities. Surely they will stay, and I fear that our communities will look for even more simple answers to complicated issues when Brexit turns out not to be the panacea that people believe it to be. The Government have estimated that the difference in public borrowing between an EEA-type agreement and from a free trade agreement is about £38 billion a year. If we are prepared to borrow that much every year, why can we not be in the EEA and use that money to invest in our communities that we love so much? I will be supporting Lords amendment 51 today.

[Craig Mackinlay (South Thanet) (Con)]

I will confine my comments to the EEA and customs union. We have heard just about every side of the spectrum from the Opposition today: some want the EEA; some want the customs union; and some want both. So I am none the wiser now about exactly where the Labour party currently sits on this issue than I was at the start of the debate five hours ago, but what is clear for many is that it is a barely disguised attempt to keep Britain in the European Union in all but name. It is a barely disguised attempt to say to the 17.4 million people and to the 66% of constituencies across this country, “You were wrong. You little people did not know what you were doing and we know best.” I am sorry but the people of this country do know best. They knew what they were voting for, and that means leaving the customs union and the single market and gaining control of our laws, borders and money.

What is the reality of customs union membership? The EU has some of the most complicated trade schedules in the world. Why? Because it is a protectionist organisation. It is there to protect the food producers of France and Spain and the industrialists of Italy and Germany. If we were to join the customs union, we would be accepting in perpetuity whatever the EU decided to do for us. We would no longer ever be able to seek free trade arrangements or new trade deals around the world. We would be dragged into whatever trade war the EU might like to commence around this world, and we would have no voice—we would be able to do nothing about it.

There is a phrase that has not been said this afternoon, and that is vassal state. That is exactly what many Opposition Members would like us to become. We all have a view on the Department for International Development, but one thing is true: aid can work, and it often does, but what really works is trade. It has taken 1 billion people out of poverty around the planet over a generation. Peculiarly, the customs union has managed to do two unique things. It has managed to impoverish the poorest in this world by imposing trade barriers, and it has managed to force the poorest in this country—those on the lowest pay—to pay higher amounts for international goods that we do not produce ourselves, including footwear and food. Let us not slip into the customs union, because the single market will follow and it will mean not leaving the EU.

[Emma Reynolds]

I will focus my remarks on the customs union and the single market. There may well be differences of opinion on our Benches, but I respect all my right hon. and hon. Friends; I know they are trying to do the right thing by the country and by their constituents. But our differences are nothing compared with the divisions on the Government Benches, and it is a bit rich of the hon. Member for South Thanet (Craig Mackinlay) to lecture us on being divided.

The truth is that the Government are making a huge mess of Brexit. Two years after the referendum, we still do not know what their position is. The truth is that kicking the can down the road cannot continue to be the Government’s strategy. The clock is ticking and time is running out; we cannot leave everything to the October summit.

I shall vote in favour of the customs union amendments because I believe that to remain in it is vital to manufacturing. Jaguar Land Rover is on the border of my constituency and has recently announced job cuts and the movement of facilities to Slovakia, which I am very concerned about; those announcements were partly down to concerns about Brexit uncertainty.

Today, the CBI president warned that manufacturing sectors, including the car industry, will face extinction if we leave the customs union. He also said:

“There’s zero evidence that independent trade deals will provide any economic benefit to the UK that’s material.”

That is borne out by the Government’s own leaked economic analysis. In trade, geography matters. The EU is on our doorstep and our economy is deeply integrated with its economy.

That brings me to Lords amendment 51 and the Labour Front-Bench amendment (a) to it, both of which I shall support, after careful consideration. These may be complex issues—as a member of the Brexit Select Committee, I have spent many hours hearing evidence about the customs union, the single market, the EEA and the other different models—but my approach to this question is simple: the economy has to come first. The economics are clear, and I feel I have a duty to prioritise jobs, livelihoods and public services for my constituents. I acknowledge that the EEA is not perfect, but, for the minute, the combination of the EEA and the customs union is the only way to avoid a hard border on the island of Ireland.

I acknowledge that my constituents and others have serious and sincere concerns about immigration, but another motivation for voting leave among people in my constituency was a sense that the economy is not working for them. We need a new settlement for working-class communities in our country. We need targeted investment in public services in areas such as mine. We need more teachers in schools and much better early years childcare. Austerity was one reason why we lost the referendum; people really do feel that their economy is not working for them.