Oral Answers to Questions

Diana Johnson Excerpts

Thursday 27th June 2019 Commons Chamber

[Bill Esterson (Sefton Central) (Lab)]

10. What recent discussions he has had with the Chancellor of the Exchequer on the effect on the UK economy of the UK leaving the EU without a withdrawal agreement.

[Diana Johnson (Kingston upon Hull North) (Lab)]

18. What recent discussions he has had with the Chancellor of the Exchequer on the effect on the UK economy of the UK leaving the EU without a withdrawal agreement.

[The Secretary of State for Exiting the European Union (Stephen Barclay)]

I have regular conversations with Cabinet colleagues on all aspects of our EU exit. The Chancellor has provided £4.2 billion to prepare for all areas of our exit.

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[Stephen Barclay]

The clue is in the hon. Gentleman’s own question. He talks about “unilaterally”. Clearly, GATT 24 would need to be agreed. I think all the leadership contenders recognise that.

[Diana Johnson]

Beckie Hart, the director of Yorkshire and the Humber CBI, said recently that many firms are unaware that it is not just their relationship with EU customers that is at risk from a no-deal Brexit, but relationships across the globe. Tonight, Hull MPs and the shadow Brexit Secretary are meeting the Hull and Humber chamber of commerce to discuss our region’s economic prospects under Brexit. What reassurances can the Secretary of State give to Humber businesses on what is being done to avoid a no-deal Brexit, and what is being done to prepare for it to minimise the damage to the northern powerhouse from years of underfunding and austerity from his Government?

[Stephen Barclay]

The hon. Lady raises a number of issues within the question of how we are preparing for no deal. It is essential, which is why the Government are investing in that preparation. I am keen to see to us do so at pace. In terms of the wider economy, it is about looking at, if we were in a no-deal situation, what flexibilities we could exploit, what issues of mutual benefit to the EU and the UK we can agree on, and where the flexibilities are that we can work on with the industry in that particular region. Those are the discussions we are having with applicable sectors. We are looking at key sectors to the region, such as offshore wind, and seeing what support the Government could provide in that situation.

--- Later in debate ---

[Stephen Barclay]

My hon. Friend has made an astute observation. He will be aware that 40% of Irish exports go through the short straits between Dover and Calais. We hear forecasts of delays at Calais from Labour Members, but it is not simply UK goods that will be delayed there; it will obviously be Irish exports too, as well as the many Irish imports.

There are a number of areas in which it is in Ireland’s interests to avoid the disruption of no deal. There has been very little debate in the UK about the impact on Ireland, and my hon. Friend is right to highlight it.

[Diana Johnson (Kingston upon Hull North) (Lab)]

T3. The Secretary of State has just said that considerable work is being done in preparation for no deal, so can he answer this question? Will he rule out accepting any renewed bid from Seaborne Freight during those preparations?

[Stephen Barclay]

The hon. Lady will know that this is not Department for Transport questions; this is questions to the Department for Exiting the European Union, and she will know from the written ministerial statement we published yesterday that we have set out a framework. But in respect of Seaborne Freight it is worth reminding the House that it was a contract in which payments were linked to performance, and as the performance did not flow the payment did not go with it.