Taxation (Cross-border Trade) Bill

Debate between Damian Collins and Sammy Wilson

2nd reading: House of Commons
Monday 8th January 2018 Commons Chamber

[Damian Collins (Folkestone and Hythe) (Con)]

This debate and the presentation of this Bill are incredibly timely. Before Christmas, at the European Council meeting, the Prime Minister moved our negotiations on leaving the EU on to the second phase, with the agreement of the other member states, and we will now discuss the future relationship and the future trading relationship. It is important that, so soon after that Council meeting, although there is still a lot more to be done and negotiated in terms of how that relationship will work, we are debating a vital piece of enabling legislation that gives the Government the legal power to implement whatever is negotiated.

We could have a different scenario, where the Government could negotiate without any legal basis to implement the agreement. They could just negotiate on the basis that they would then have to bring legislation forward at some point in the future. There is no guarantee there would be the time to do that, and it would be a rather strange process to go through. It is far better that the Government are able to pass enabling legislation that gives us the legal authority to implement what they negotiate. At least then, when negotiating with the Europeans, they know that we can implement what we negotiate and we will not be left high and dry because we have run out of time.

[Sammy Wilson]

That is an important point, and it has been reflected in the speeches from Members from two Opposition parties. Does not the hon. Gentleman therefore find it rather odd that on one hand they talk about urgency, yet on the other hand they have tabled motions saying we should not proceed with this Bill on Second Reading?

[Damian Collins]

Absolutely. If we waited until every question that has been posed today could be answered—if, indeed, they can all be answered—before we introduced legislation, we could end up with no time for scrutiny or debate, or to implement the legislation in the first place. We can enter into the negotiations on our future trading relationship with any sort of purpose only if it is clear that we have in place the legal frameworks to implement whatever we agree and only if the EU negotiators can see that the UK has the legal basis to implement its own regime and requirements, whatever the trade deal or scenario.

The hon. Member for Aberdeen North (Kirsty Blackman) presented a compelling amount of detail in her speech. It is tempting to lay out all the difficulties and say that there is no point in introducing legislation until we have an answer to all the problems that seem insurmountable, but that would be entirely the wrong way to go about it. We need to make sure that the enabling legislation is in place. It can also be tempting—I say this as someone who campaigned for Britain to remain in the EU—to rerun all the arguments that were made during the referendum, as if the referendum had not happened, but it did happen and the country voted to leave the EU. It is now our responsibility to put in place the legal framework that enables the Government to negotiate so that we can put in place the best possible deal. It is far better that we do that now than in a year’s time.

--- Later in debate ---

[Damian Collins]

My hon. Friend makes an important point. Frictionless trade is just as important between Northern Ireland and Great Britain as it is on the island of Ireland. It is vital to the economies of the island of Ireland and Great Britain and to everyone who lives and works on the island of Ireland and in Great Britain. As I said earlier, because of our proximity and the integrated nature of so many of our businesses, that trade is so important, and it is vital to the protection of so many jobs. There should be no artificial borders in the Irish sea, and nor should there be borders that create friction on the island of Ireland or with the continent of Europe across the English channel.

[Sammy Wilson]

The hon. Gentleman makes an important point that is sometimes overlooked in these debates: it is vital for the Irish economy that there is no line of demarcation or border on the Irish sea, because its main market for either the sale or the transit of goods is Great Britain. If we simply talk about the border between Northern Ireland and the Republic, we miss the point: there has to be integration among all the islands.

[Damian Collins]

That is absolutely right. As the hon. Gentleman will know, a third of the goods processed through Warrenpoint port in Northern Ireland come from the Republic of Ireland, so it would do great damage to the economy of the island of Ireland were artificial barriers to be put in place. The same is true for goods that move through what is effectively the Great Britain land bridge to the continent of Europe. A large amount of goods from the Republic of Ireland are exported to continental Europe through ports such as Dover, as well as through the channel tunnel, and it is vital for so many businesses and for the free flow of trade that they are not treated as goods being imported from a third country but allowed to flow freely just as they currently do.

It is important that we make sure not only that we get the tariff regime and the rules of trade right, but that part of our preparedness is about ensuring that we have the right physical infrastructure alongside the enabling legislation that the Government are seeking to pass. I was really pleased to hear the Chancellor announce £3 billion in the Budget to help the UK to prepare the physical infrastructure it will need for trade. Technological solutions can be put in place to make sure that trade can flow without restrictions and frictionlessly at the key trading points and the key points of entry to other markets, but the infrastructure also needs to be put in place now.

It is particularly important for my constituents in Kent that we provide a long-term solution to deal with issues such as Operation Stack. If trade is being held up, for whatever reason—be it bad weather in the channel or strike action in one of the French ports—we need the physical infrastructure in place to keep Kent’s roads open. As part of our preparations for a future in which we can keep goods and services flowing freely around our key points of trade, it is important that we have in place the right physical infrastructure. That includes a commitment to deliver the Operation Stack relief lorry park in Kent. I was pleased that the Financial Secretary was able to confirm before Christmas that the £250 million that the Government had earmarked for the delivery of that vital piece of infrastructure is still there, and I hope we will see good progress on the design this year. Not only can that relief lorry park be considered as a piece of infrastructure for dealing with Operation Stack, which can happen at any time—it has happened while we have been a member of the EU and could happen again in future—but that physical infrastructure will be there in case we need it because of delays in the movement of goods.

Broadcasting

Debate between Damian Collins and Sammy Wilson

Tuesday 18th October 2016 Commons Chamber

[Damian Collins]

It is a new post and it was literally made for him. It was not advertised widely for other people to apply for it. My right hon. Friend the Member for Maldon said in his speech—I said this in an intervention as well—that, regardless of people’s views of the capabilities of James Purnell, or concerns that people may have about his past political involvement, the key thing is the process that was run to appoint one of the most senior directors at the BBC. Why was there no competition within—or, indeed, outside—the BBC involving people who may have had the requisite skills to apply for the job? If we are going to be critical of the way in which Rona Fairhead was appointed as interim chair of the BBC—as I have said, that should have been a clear and transparent process—that should also apply to other senior executives, including those on the BBC board. That certainly applies in the case of James Purnell; I agree with my hon. Friend the Member for North West Leicestershire (Andrew Bridgen).

[Sammy Wilson]

Does the hon. Gentleman agree that the transparency applied to those on top salaries should also be applied to those who are on contracts that enable them to avoid tax either by paying only corporation tax on money that is paid directly to them, or by participating in tax avoidance schemes, which the BBC now uses for hundreds of its well-paid employees?

[Damian Collins]

I completely understand the point that the hon. Gentleman is making. People must certainly pay the taxes that are due on the income that they receive, wherever it comes from. That applies to BBC executives as much as to anyone else. I note what the Secretary of State said in her intervention a few moments ago, and I believe that this is something that we must keep under close review. If BBC Talent is trying to use a loophole by channelling more of its income through independent production companies to avoid having to declare it—our concern, through the work of the National Audit Office, is that there has been an acceleration in that process and that people are trying to get around the rule in the new charter that those who earn more than £150,000 should declare what they earn—we should look again at the matter in the mid-point review.

I want to touch on the comments about the Scottish Six made by my friend on the Culture, Media and Sport Committee, the hon. Member for East Dunbartonshire (John Nicolson). As I was the acting Chair of the Committee and a member of the Committee when we discussed the matter, I was able to give my view on the significance of the Scottish Six. We felt—I certainly felt this, and I hope the hon. Gentleman agrees—that we were calling for the BBC in Scotland to be given editorial independence over the six o’clock news, so that it could reflect the fact that devolution made certain news items less relevant to the Scottish audience than to the rest of the UK audience. We envisaged that the BBC in Scotland would have the editorial independence to make those decisions and the freedom to change the running order of the programme if it chose to do so. The Scottish Six would still be a national news programme, but it would be broadcast from Scotland, it would be produced and edited in Scotland and it would have a Scottish perspective on the national news. We considered the fact that the BBC was comfortable to make that decision with radio, so why should it not consider doing so for television?

That is, of course, an editorial decision for the BBC to make, but one of the things that the Committee hoped to do with this recommendation in the report was to give the BBC a shove and say, “You have been looking at this for quite a long time, you have tried various different formats and you have tried to make a decision. Here is our view, but it remains something for you to do.” I agree with the comments made a few weeks ago by the Secretary of State. I think I am right in interpreting her as saying that, as others have discussed, the Government should not dictate to the BBC what it should do about this; it is a decision for the BBC to make.

Finally, I want to touch on the BBC iPlayer, which has been mentioned. It is important that we remove the loophole whereby people can get out of paying the licence fee by watching programmes—both catch-up and live—on the BBC iPlayer. This also takes us into important new territory that the BBC should explore. By far the most practical way to police such an arrangement would be to give each licence fee payer a PIN that they could put into a portable device to access the iPlayer, to prove that they had paid the licence fee. That is common in other digital services that people use all the time, and it would be the simplest and most logical way to proceed. It would certainly be a lot easier than having digital enforcement cameras—a modern-day version of the TV detector van—going around, trying to work out whether people were viewing the BBC online.

One of the reactions of people in the BBC to such a suggestion is that they do not like the idea of licence fee payers becoming subscribers, or of the BBC becoming a subscription service. I do not think that that would be the case at all. That suggestion is simply an acknowledgement of the fact that new technology allows people to access BBC services in a different way. Those services are still free to access and use for people who pay the licence fee. We would simply be using new technology to make them more readily available.

I believe that a sensible step forward would be to have complementary subscription services that gave people deeper access to the back catalogue and enabled them to stream other programmes that might not be available for broadcast. That would allow the BBC to grow its revenues from its back catalogue and to be innovative in its programme making. It would in no way represent a shift away from the licence fee-funded BBC; it would simply be a recognition of the fact that new technology, platforms and tools will allow the BBC to innovate in ways that simply were not possible in the past. Over this charter renewal process, I would like to see the BBC taking further steps in that direction.