Oral Answers to Questions

David Jones Excerpts

Thursday 9th March 2017 Commons Chamber

[Antoinette Sandbach (Eddisbury) (Con)]

5. What discussions his Department has had with representatives of the farming sector on the implications for that sector of the UK leaving the EU.

[The Minister of State, Department for Exiting the European Union (Mr David Jones)]

We are listening and speaking to as many farming organisations and institutions as possible as we develop our negotiating position. I have met a range of representatives of the agricultural sector, including all the UK farming unions, and have attended the stakeholder roundtables of the Department for Environment, Food and Rural Affairs, one of which focused on farming and horticulture.

[Victoria Atkins]

Louth and Horncastle boasts highly productive farms that produce excellent food. Will my right hon. Friend reassure our farmers that encouraging British food production and maintaining high-quality standards will be uppermost in his mind during the exit process?

[Mr Jones]

The British farming industry is noted throughout the world for the quality of its produce. Outside the European Union, we have an unprecedented opportunity to redesign our policies to make them work for us and to ensure that our agriculture industry is competitive, productive and profitable, and also that our environment continues to improve.

[Antoinette Sandbach]

Farmers in Eddisbury apply the highest standards of welfare to their livestock and the produce deriving from that livestock. What safeguards will be put in place to ensure that produce that does not meet those high standards does not affect the competitiveness of our farmers?

[Mr Jones]

Again, my hon. Friend makes an important point because animal welfare and traceability are important elements of British agricultural production. We are committed to high animal welfare standards and will continue to push for those standards to be maintained in international trade arrangements.

[Mary Creagh (Wakefield) (Lab)]

British farmers face a triple threat from the vote to leave the European Union: the loss of the common agricultural policy subsidy; cheap imports from countries with lower animal welfare and traceability standards; and potential tariffs on exports to the single market. What is the Minister doing in particular to mitigate that third threat, as we could see tariffs of up to 40% on lamb?

[Mr Jones]

The hon. Lady makes very important points, but this Government have already demonstrated their commitment to supporting the agriculture industry by supporting common agricultural policy pillar 1 until 2020 and giving support for pillar 2. On tariffs, as she will know, this Government aim to achieve the best possible free trade agreement with the continuing European Union and to ensure that whatever customs arrangements are put in place are frictionless and for the benefit of both Britain and the EU.

[Dr Alasdair McDonnell (Belfast South) (SDLP)]

16. What discussions has the Minister had with the Government of the Republic of Ireland on the free movement of goods? That will be a particularly important issue for the agricultural sector after the UK exits the EU, because many farms in Northern Ireland straddle the border and much of the produce of those farms transits the border a number of times—for example, milk sometimes crosses it five times.

[Mr Jones]

The hon. Gentleman raises an extremely important point that is at the forefront of the Government’s mind—in fact, the Prime Minister has discussed this very issue with the Taoiseach. Indeed, all the Ministers in the DEXEU team have had similar discussions, and I have had very recent discussions with representatives of the Irish Government too.

[Mary Glindon (North Tyneside) (Lab)]

7. What plans he has to retain the benefits of membership of the single market and customs union for the manufacturing sector after the UK has left the EU.

--- Later in debate ---

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

13. What plans he has to retain the benefits of membership of the single market and customs union for the manufacturing sector after the UK has left the EU.

[The Minister of State, Department for Exiting the European Union (Mr David Jones)]

The UK manufacturing sector is world leading, and we are determined to secure the best deal for it which enables it to go from strength to strength. We are aiming to agree a bold and ambitious free trade agreement with the EU, including zero tariffs, that is more ambitious than any other trade deal agreed with the EU to date.

[Mary Glindon]

In North Tyneside, Smulders, a Belgian company, has filled a void in the manufacturing market left when this Government failed to back OGN. The company hopes to create up to 400 new jobs and expand even further. What guarantees can the Minister give that will allow it the same benefits it currently gets with access to the single market and customs union after Brexit?

[Mr Jones]

I had a discussion just this week with the Flanders chamber of commerce, and it recognised the important issue of bilateral trade between Belgium and the UK. I am pleased to say that it fully realised the need for frictionless agreements once we leave the EU, and of course this Government are committed to that.

[Jo Stevens]

The Prime Minister has said that Britain will not remain a full member of the customs union, but this morning the Chancellor said it is

“clear that we can’t stay in the customs union”.

Which of them should we believe?

[Mr Jones]

It is clear that if we are to seek free trade agreements around the world, we will not be able to remain in the customs union as it currently stands. Having said that, we seek arrangements with our EU partners that will enable us to construct customs arrangements that are as frictionless as possible, for the benefit of both the EU and the UK.

[Tom Blenkinsop]

The post-Brexit fall in the pound has led to a boost in manufacturing exports, with 45% of north-east manufacturers expecting orders to rise over the coming year, but it has also led to an increase in import costs. These costs will only increase if customs checks are required at borders. What is the Secretary of State planning to do for north-east manufacturers to make sure that costs at borders are not being increased for products they are making?

[Mr Jones]

Of course, north-east manufacturing is at the forefront of the Government’s mind; the hon. Gentleman will know that with Nissan we arranged a state of affairs that will allow it to continue to manufacture in the north-east. He is right to say that we do not want to see customs arrangements that impede trade with the EU, and we are looking to agree arrangements, for our mutual benefit, that are as frictionless as possible.

[Michael Fabricant (Lichfield) (Con)]

But is it not the case that when the UK leaves the EU we will be its largest export market? Does the Minister not agree with my favourite politician at the moment, Wolfgang Schäuble, Germany’s Finance Minister, who says that if the Germans or the EU were to cause any damage to the UK, it would be increased tenfold for the EU?

[Mr Speaker]

I am sure the Finance Minister in question will be uncontrollably excited to discover that the hon. Gentleman is such a staunch fan.

[Mr Jones]

My hon. Friend makes an extremely good point: the UK market will be the biggest export market for the continuing European Union after we leave. I am glad to say that that is recognised not only by Herr Schäuble but by the Belgian chamber of commerce, with which I spoke earlier this week.

[Mr Peter Bone (Wellingborough) (Con)]

Does the excellent Minister agree that it is much more in the EU’s interest for it to do a deal with us than it is in ours, because it has a £60 billion trade surplus with us?

[Mr Jones]

I think it is very much in our mutual interests, and I am sure that once the negotiations begin we will move towards a sensible and satisfactory mutual conclusion.

[Charlie Elphicke (Dover) (Con)]

Does the Minister agree that, although we hope for the best, the chaotic patchwork of EU institutions and election cycles may mean that a deal is not done in two years? If that is the case, will he consider the case for investing in the roads to the channel ports and, indeed, in frictionless and modern borders, to ensure that we have a seamless flow of trade in future?

[Mr Jones]

I agree with my hon. Friend about frictionless agreements. We have a huge advantage in that Britain is, of course, currently a member of the European Union, so our standards and regulations are in complete alignment. I was heartened to see that Michel Barnier, the chief negotiator for the European Union, has recognised that a deal is doable in two years.

[Stuart Blair Donaldson (West Aberdeenshire and Kincardine) (SNP)]

22. The food and drink industry is a growing sector in West Aberdeenshire and Kincardine. What plans does the Minister have to retain the benefits of membership of the single market and customs union for the food and drink sector after the UK has left the EU?

[Mr Jones]

Although we will not continue to be a member of the single market, as I indicated previously we are looking to achieve a very good free trade agreement with the continuing European Union, which would be very much to the mutual benefit of the UK and the European Union.

[Rishi Sunak (Richmond (Yorks)) (Con)]

As my right hon. Friend considers the customs union, may I urge him to look at the experience of close trading partners around the world? The US and Canada trade half a trillion dollars of goods annually, Norway does 70% of its trade with the EU, and China buys 30% of Australia’s exports; none of them has seen fit to form customs unions with each other.

[Mr Jones]

My hon. Friend makes an excellent point. It is not necessary to be part of a customs union, but we seek frictionless customs arrangements for the benefit of the EU and the UK.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

23. In a document leaked to The Times, the oil and gas industry was shamefully listed as a low priority for the UK Government in their negotiations with the EU. Given the Minister’s earlier answer, will he confirm that he has no plans to retain membership of the customs union and the single market for the oil and gas industry?

[Mr Jones]

The fact that the oil and gas industry is a high priority for the Government was shown by the Chancellor’s announcement yesterday. Frankly, rather than talking bleakly about the future of the industry, the hon. Gentleman should urge his colleagues in the Scottish Government to work strongly with the United Kingdom Government to ensure that arrangements can be made that are satisfactory for the industry.

[Tom Pursglove (Corby) (Con)]

One of the advantages of our leaving the European Union is that we will be in a position to design our own package of trade defence instruments, which I would think Opposition Members would welcome. Will my right hon. Friend update the House on the ongoing cross-Government work on that?

[Mr Jones]

Clearly, any arrangements we strike will have to be WTO-compliant, but my hon. Friend is entirely right. British industry has recently experienced many difficulties, not least in the steel industry, in which he has a particular interest. He will know about the support the Government have given to that industry.

[Paul Blomfield (Sheffield Central) (Lab)]

This week, a report by the American Chamber of Commerce to the European Union concluded that

“America’s significant commercial and financial presence in the UK has been premised in large part on UK membership in the European Union—the largest, wealthiest and most important foreign market in the world to U.S. companies.”

Do the Secretary of State and the Minister recognise the importance of our relationship with the single market to those non-EU countries with which the Government are keen to build trade and investment?

[Mr Jones]

The importance of the United Kingdom to the United States was reflected very strongly in the Prime Minister’s recent meeting with the new President, in which he showed great enthusiasm for free trade arrangements between the United States and the UK.

[Paul Blomfield]

Well, the significance of that and the “America First” policy is yet to be demonstrated.

On 24 January, the Secretary of State told the House that he is seeking

“a comprehensive free trade agreement and a comprehensive customs agreement that will deliver the exact same benefits as we have”.—[Official Report, 24 January 2017; Vol. 620, c. 169.]

Will the Minister confirm that that is still the Government’s aim?

[Mr Jones]

The Government’s aim is to seek a bold and ambitious free trade agreement with the continuing European Union that will be to the benefit of both the United Kingdom and the European Union.

[Mr David Nuttall (Bury North) (Con)]

Thanks to the new opportunities that will open up for the UK after we leave the EU, the accountancy firm PricewaterhouseCoopers has said that the UK will have the fastest growing economy in the G7 over the next 30 years. Does my right hon. Friend agree that that demonstrates that manufacturing has nothing to fear from our leaving the EU?

[Mr Jones]

My hon. Friend is entirely right to point out that the naysayers and doom-mongers who said that the British economy would crash after we decided to leave the European Union have been proven wrong.

[Mr Jim Cunningham (Coventry South) (Lab)]

8. What steps he is taking to ensure that maintaining human rights protections is included in negotiations on the UK leaving the EU.

--- Later in debate ---

[Mr Philip Hollobone (Kettering) (Con)]

19. What the UK’s total net financial contribution has been to the EU since the UK joined the European Economic Community.

[The Minister of State, Department for Exiting the European Union (Mr David Jones)]

Neither the United Kingdom, nor the European Union, publishes an aggregate audited figure representing the total net financial contribution since the UK joined the EEC, but details of annual UK public sector contributions to the EU are published in a document entitled “European Union Finances”, the latest edition of which was published in February in 2016.

[Mr Hollobone]

A one-word answer with a figure would have been more helpful than the answer the Minister has given me. I suspect that the answer is that a massive amount of money is being handed over by British taxpayers to the European Union. As in any good divorce, that will entitle us to a huge share of the EU’s assets or to massive financial compensation if we do not get that.

[Mr Jones]

My hon. Friend is right—it is rather a lot; but the issue is to what extent the United Kingdom is liable for payment of anything, and if so, how much. The point is this: the United Kingdom has always adhered to its international treaty obligations, and it will continue to do so. It will adhere to those obligations, but, similarly, it will insist on the rights it has pursuant to those treaties, and that is the basis on which it will approach these negotiations.

[Kerry McCarthy (Bristol East) (Lab)]

20. If he will protect the rights of non-UK EU nationals resident in the UK as part of his Department’s plans for exiting the EU.

--- Later in debate ---

[Rebecca Pow (Taunton Deane) (Con)]

I am sure that my right hon. Friend will agree that reform of the common agricultural policy represents a positive opportunity for the farming industry. Does he agree that, among other measures, rewarding farmers with payment for acting for the public good—for example, storing water on land as a flood resilience measure, which would be very beneficial in Somerset—would be very helpful?

[The Minister of State, Department for Exiting the European Union (Mr David Jones)]

My hon. Friend has highlighted how much of an advantage it will be to the UK to be in a position to design its own agricultural and environmental policies.

--- Later in debate ---

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

T6. The manufacturers’ organisation EEF last week highlighted the difficulties that manufacturers are having in filling skilled engineering posts. Manufacturers warn that if the situation is not to get worse post-Brexit, they will need the flexibility to employ and deploy people across Europe. What consideration has the Secretary of State given to the representations from EEF, and what reassurance can he give?

[Mr David Jones]

We have had such discussions. The right hon. Gentleman is right to say that we need an adequate supply of skilled labour in this country, and the Home Office is working on policies that will achieve just that.

[Robert Neill (Bromley and Chislehurst) (Con)]

The UK legal services sector is worth some £21 billion to our economy. A good percentage of that comes from legal services provided into the European Union. Will my right hon. Friend meet the Bar Council and the Law Society to discuss what they need to retain access to that key market?

--- Later in debate ---

[Andrew Stephenson (Pendle) (Con)]

What discussions has the Department had with representatives of the tourism sector on the implications of the UK leaving the EU?

[Mr David Jones]

We regularly engage with the tourism industry, and we will continue to do so. Tourism is an important part of the British economy, and we fully recognise its particular concerns.

[Clive Efford (Eltham) (Lab)]

The Government have said that they want to secure the rights of British nationals living in Europe, but what about British nationals living in this country who are married to European nationals whose futures have been thrown into doubt by the repugnant position that the Government have adopted? Is it not time to end the doubt for those people?

[Mr David Nuttall (Bury North) (Con)]

Does my right hon. Friend agree that the huge investment by Dyson in research and development facilities in the UK is a sign of confidence in the UK economy outside the EU?

[Mr David Jones]

Yes, it certainly is. That is only the latest in a long line of new investments in the British economy, showing the huge confidence that the international business community has in our country.

[Rachael Maskell (York Central) (Lab/Co-op)]

May I push the Secretary of State further on the answer he gave my hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) regarding frictionless trade? Is the Secretary of State saying that trade tariffs remain on the negotiating table?