Oral Answers to Questions

Debate between Drew Hendry and Greg Hands

Thursday 15th December 2022 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Of course the Minister will bluster and try to divert as much as he possibly can from the substance, as he normally does. Sir Christopher Chote from the UK Statistics Authority wrote to me, saying:

“It is misleading to describe the £800 billion figure as a measure of ‘new global trade’ resulting from the recent deals.”

That is black and white. Will the Minister now apologise on behalf of his party and Ministers for sharing that tweet and misinformation and set the record straight? Yes, or no?

[Greg Hands]

May I start by correcting the hon. Gentleman: it is actually Sir Robert Chote who is the chairman of the UK Statistics Authority? I do not resile from the fact that we have concluded free trade agreements with 71 countries plus the EU. I notice, of course, that he voted against the EU deal, preferring no deal. I checked before coming here exactly what the SNP’s record was on these deals. I will read it out. On Japan, it was against —[Interruption.]

UK-India Trade Deal

Debate between Drew Hendry and Greg Hands

Wednesday 26th October 2022 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Welcoming a Minister back to his place is now a standard response, but I welcome the Minister back.

Increased trade, ties and co-operation between India and the UK are welcome, especially in Scotland. However, that should not be at the expense of human and workers’ rights. Will the Minister belatedly guarantee that issues about human rights, the environment and health and safety, along with climate and equality concerns are fully resolved before any deal is signed?

Does the Minister really believe that there is no anger and no problem about the Home Secretary’s comments in India that might cause difficulties for the deal?

Scotch whisky exports to India are already subject to 150% tariffs. New Delhi has threatened even higher tariffs on whisky and gin in retaliation for domestic steel protections. Whisky and gin producers need to know that the UK Government are doing something to reduce those tariffs drastically. What is going on? What will be done to ensure that barriers are not just replaced at Indian state level?

Jagtar Singh Johal remains in an Indian prison without trial. He has been detained since 2017. The UK has had four Prime Ministers and five Foreign Secretaries since his illegal detention. What is the Minister doing during negotiations to right that wrong?

[Greg Hands]

I thank the hon. Gentleman for that list of questions. As ever, the UK’s commitment to workers’ rights in our trade deals and negotiations and in all our international talks remains undiminished. That is fundamental for this country.

I am glad that the hon. Gentleman mentioned whisky tariffs. He did not support the Australia free trade deal, which means a reduction in whisky tariffs. Tariffs on Scotch whisky going to India are currently 150%. I will therefore watch closely his approach to the deal. Our successful removal of the Airbus-Boeing tariffs has hugely benefited the Scotch whisky industry. I am not sure whether the hon. Gentleman fully supported that.

The hon. Gentleman raised human rights. At all times, the Foreign Office engages vigorously on the case mentioned and on other cases.

Let me end with the SNP. On trade deals, it is even worse than Labour. SNP Members have never supported a trade deal concluded by either the European Union or the UK. They did not even support the trade deal between the EU and the UK. They voted for no deal two years ago. They were against the deals with Canada, Korea and South Africa. They did not even support the trade deal between the EU and Ukraine. They also abstained on the Japan and Singapore deals. The SNP is fundamentally against trade and the interests of Scotland as a trading nation.

Net Zero Strategy: High Court Ruling

Debate between Drew Hendry and Greg Hands

Thursday 21st July 2022 Commons Chamber

[Greg Hands]

I was referring to the adoption of net zero, of course, which was by this Government in 2019. I answered a question earlier about the jobs being provided through our action on climate change and our move into renewable energy, which I would hope the hon. Lady supports. The hon. Lady suggests that this Government and this party are not taking the tough action that we need and not putting the money there, but we have pledged £30 billion to combat climate change over this spending review. That is a considerable sum and a considerable political commitment by this Government.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

The High Court ruling that the Government’s flagship policy on climate change is unlawful is a clear warning that this UK Government are not doing enough on climate change. They should embrace that criticism and do something about it urgently, but instead they try to dodge it. The Minister mentioned the Climate Change Committee. It has said that nuclear will take too long; there needs to be a rush for electricity through renewables, and carbon capture and storage needs to be developed more quickly too. Why are the Government lagging behind and not taking this advice to deal with this important issue?

[Greg Hands]

As I said, we are considering our options in the aftermath of the Court ruling, but let me deal with some of the substance of what the hon. Gentleman is saying. He is saying that nuclear will take too long. The SNP has been opposed in principle to nuclear power since its very existence. So on the one hand he is saying he does not want it, but on the other hand he is saying it is taking too long. That makes no sense at all. The hon. Gentleman will remember that on the very day we published the net zero strategy we also announced the programme to move forward with carbon capture, utilisation and storage—we are on good track there.

On renewables, the whole of the UK is taking part in our huge move into and boost for renewable energy. Scotland is a vital part of that, which is why we have announced the first ever tidal contracts in the contracts for difference regime, as well as the first floating offshore wind deals. We are making sure that the whole of the UK benefits from our offshore wind assets, including, for example, in the Celtic sea between Wales and Cornwall, as well as off the north-east coast of Scotland, the North sea and the Irish sea.

Low-carbon Off-gas Grid Heating

Debate between Drew Hendry and Greg Hands

Thursday 16th June 2022 Westminster Hall

[The Minister for Energy, Clean Growth and Climate Change (Greg Hands)]

I congratulate my right hon. Friend the Member for Clwyd West (Mr Jones) on securing this important debate. I reassure him that decarbonising heat remains a key priority. We recognise that this is a deeply worrying time for most of our constituents, for whom the impact of rising energy bills is perhaps the biggest concern. That applies as much to rural communities as to any other.

I commend my right hon. Friend for his long-standing work as one of the key voices for north Wales ever since we were both first elected in 2005. At the time, he was the first Conservative Member to be elected in north Wales in about eight years, and he has consistently stuck up for his constituents ever since.

We are taking action on bills. The Chancellor recently announced a £15 billion package—as part of an overall £37 billion this year—to help families who are struggling with their bills. However, as we set out in our recent British energy security strategy, which was launched by the Prime Minister and the Secretary of State in April, if we are to keep prices down for ordinary households and businesses for the long term, we need to rely on affordable, clean and, above all, secure sources of energy.

Off-gas-grid households and businesses already understand those challenges as well as anyone. Many of them rely on traditional forms of energy such as oil for their heating needs, so they have been particularly exposed to the impact of rising global energy costs. Of course, compared with other buildings, properties off the gas grid are some of the biggest emitters, so transitioning those properties to low-carbon heat is a key Government priority. That will not only put us on track for our different obligations, but it will help to move us off imported oil, build our energy independence and help to protect consumers from high and volatile energy prices.

As Members from all four nations of the United Kingdom have recognised during the debate—showing that we are better together when it comes to approaching these matters—the problem is not necessarily confined to the remoter parts of England, Scotland, Wales and Northern Ireland. We heard from my hon. Friend the Member for Buckingham (Greg Smith), and I know that parts of Kent and other counties that might be regarded more traditionally as the home counties also have large numbers of off-gas-grid properties.

As my right hon. Friend very ably said, most off-grid properties will ultimately transition to heat pumps, which are a proven and highly efficient technology. In electricity, they benefit from a secure energy source that is not subject to the same price spikes as oil, and critically, they are consistent with net zero as the electricity grid decarbonises. Heat pumps have been successfully deployed in high numbers across the world, including in countries that are colder than the United Kingdom, such as Sweden and Norway.

The up-front cost of installing low-carbon heating may be prohibitive for some, however, and I think that is the core of the question before us. That is why we are investing £450 million through the boiler upgrade scheme to provide £5,000 grants towards the cost of installing a heat pump, and £1.1 billion through the home upgrade grant to help lower-income households off the gas grid to upgrade their energy efficiency, save on bills and transition to low-carbon heating. That funding will help to kick off our wider plans to grow the heat-pump market to 600,000 installations by 2028 and to deliver on our ambition to reduce the cost of a heat pump by between 25% and 50% by the middle of the decade.

Alongside our action to remove distortions in energy prices—starting with the launch of our proposals to rebalance energy costs later in 2022—we anticipate that heat pumps will be no more expensive to install and run overall than gas boilers by the second half of the decade. That is why we consulted last year on regulations that would end the installation of high-carbon fossil fuel heating systems off the gas grid later this decade. I reassure my right hon. Friend that we will take every step to ensure that the transition to clean heat will be fair and affordable for off-gas grid households and businesses.

I also reiterate that our continued support for decarbonisation policies relying on heat pumps is contingent on the industry taking action to drive down the costs. By signalling now our intention to take the action later, once the cost of heat pumps is much lower than today, we aim to give industry the long-term confidence to invest and drive the costs down. We will also keep the cost of heat pumps under constant review. Making sure they become more affordable is a key part of Government policy and, well ahead of implementing any regulation, we will set out what additional actions may be needed to support the phasing out of high-carbon heating systems.

I also take the chance to reassure my right hon. Friend the Member for Clwyd West that no one will be required to install an unsuitable technology in their home or business. We know well that heat pumps will not work everywhere, at least not with the current technology. Some off-grid properties are simply too poorly insulated or have certain characteristics that would make installing the technology impossible. We will take care to ensure that that group of hard-to-treat properties will have access to suitable alternatives, such as high-temperature heat pumps, solid biomass and so on, which I will explain in a little more detail.

My right hon. Friend the Member for Clwyd West raised various points. I believe his central question was: why off grid first? Off the gas grid, there is currently no strategic option to decarbonise heat with hydrogen or other technologies. That is why we are taking a range of actions to bring forward the decarbonisation of this critical group of buildings. If we can make heat pumps affordable, there are considerable advantages in moving forward, including for off-grid households and businesses, even if that means that they will be required to switch from fossil fuel heat earlier than their on-grid counterparts. My right hon. Friend asked me to reconsider the 2026 deadline. Equally, the pace at which we can make heat pumps become affordable will guide our decisions on the right time to introduce regulation and the other actions needed to make a fair transition.

My right hon. Friend asked how many off-grid homes are hard to treat. Our analysis shows that 80% of off-grid homes already have sufficient insulation for a heat pump to work effectively. They have already been deployed successfully in high numbers across the world; I mentioned Sweden, Norway and other countries. On his questions about hybrids and biofuels, along with those from my hon. Friend the Member for Buckingham, we would like to see those fuels become another solution, particularly for off-grid properties that cannot use a heat pump. We are working closely with industry to build the evidence that will inform the biomass strategy mentioned by my hon. Friend, due to launch later in 2022. The strategy will review the amount of sustainable biomass likely to be available to the UK and set out how this can be best used across the economy to achieve our net zero targets.

My hon. Friend the Member for Buckingham asked for some good news. I think I have been bringing quite a lot of good news so far. However, we are also investigating whether hybrid systems could give hard-to-treat properties additional choices and that is an area of active investigation, as we also ask whether they have potential to help us stretch limited bioresources further. I urge my hon. Friend to wait for the biomass strategy later this year. There are key considerations there in biomass production, alternative uses and trying to get a sense of where that overall market will be heading. In time, renewable liquid fuels such as HVO and bioLPG may also play a role, although they are currently in short supply and more expensive for households to use. We need to better understand the scope to expand production of those fuels for use in heat, consistent with very low emissions while remaining affordable for consumers.

The hon. Member for Ceredigion (Ben Lake) mentioned those not subject to the energy price cap. It is worth remembering that the energy price cap, which predates me in this job, was not introduced to provide a blanket level of protection for all consumers, but was instead a specific protection brought in to remove the penalty for people who did not switch between their grid gas or electricity provider. That was the purpose of the price cap. I do not think it would be fair to say that the heating oil market or the market for off-grid properties is any less competitive. There is a highly competitive market in heating oil companies, and there is the ability for the Competition and Markets Authority to look at the issue. If the hon. Member for Ceredigion has evidence of anti-competitive practices, I urge him to bring it forward, send it on to me or speak to the CMA. That is exactly what the CMA is there for.

[Drew Hendry]

The Minister is saying that if there is an issue with off-gas grid households, it should be brought to the CMA. Does he support the basic ask to get Ofgem involved in regulating off-gas grid areas? A very simple solution would be for Ofgem to take action directly.

[Greg Hands]

We have to think about the nature of that market, which I am satisfied the CMA has the ability to regulate. Although it involves an energy product, that does not mean that Ofgem, rather than the CMA, is best positioned to provide the oversight to prevent anti-competitive practices. There is a lot of Government support for off-grid properties, as there is for on-grid ones, including the £400 payment and the £150 council tax discount in England, with Barnett consequentials for Wales, Scotland and Northern Ireland.

[Greg Hands]

Of course, energy prices for businesses attract a lot of very keen Government attention. The hon. Gentleman is right to suggest that there was a consultation on the workings of the scheme, which has closed; the Government will respond shortly. Energy costs for businesses is an area of active Government interest. We provide a lot of support for energy-intensive industries, and want to ensure that overall we have a sustainable position, whereby businesses are able to afford energy bills in order to continue the vital work that they do for us across the rest of the economy.

Many of the additional Government support measures, including the warm home discount, the winter fuel payment and the cold weather payment, are also available for those off the gas grid. Energy efficiency measures are a major area of Government investment, with £6.6 billion to be provided over the course of this Parliament. I have already mentioned the boiler upgrade scheme, which costs £450 million, and the home upgrade grant, which amounts to £1.1 billion.

As somebody who used to work in a swimming pool, I was intrigued by what the hon. Member for Ceredigion described as the difficulties facing the swimming pool in his constituency. The great news is that one of the Chancellor’s key announcements this year was the reduction of VAT on solar panels. I am sure Plaid Cymru was very supportive of the Chancellor’s overall package of measures, which will bring particular benefit to the swimming pool in the hon. Member’s constituency.

The use of hydrogen is an interesting question. Decisions will be made in the coming years on where we think hydrogen can be used as a source of heat. We will have to think about our hydrogen production capacity, and the alternative pressing needs for hydrogen, such as decarbonising industry and major forms of transportation, including maritime, heavy goods vehicles and aviation. There are a lot of potential uses of hydrogen, we will need to look at the option of using it to heat buildings before taking a decision, particularly given the other alternative uses of hydrogen.

The hon. Member for Ceredigion mentioned the rules around heating oil providers not providing less than 500 litres. I urge him to speak to the UK and Ireland Fuel Distributors Association, which is a helpful trade body. I think the basic problem is that providing small volumes of heating oil is likely to raise fixed costs, and therefore to make an inefficient market with ultimately more expensive provision. His motive is a good one—to try to make heating more affordable, in smaller pieces, for constituents who are facing trouble with their bills—but the perverse impact might be to raise the fixed costs of such deliveries, but I urge him to speak to UKIFDA, which is the real expert.

I congratulate the hon. Member for Strangford (Jim Shannon) on being the chair of the healthy homes and buildings all-party parliamentary group. We are of course keen to see Northern Ireland, like all parts of the United Kingdom—I stress that it is fantastic to have all four nations represented here today—play its full role in decarbonisation, and to ensure that it is supported during times of high prices. He said that he had learned that I speak to Gordon Lyons, the Northern Ireland Minister for the Economy, frequently and perhaps even weekly. In fact, I spoke to him only yesterday about ensuring that Northern Ireland’s renewable energy opportunities are boosted. The hon. Gentleman will also know that one of the key reasons that we are taking the approach that we are on the Northern Ireland protocol is to ensure that things such as the VAT cut on solar panels can be enjoyed as much by the people of Northern Ireland as by the people of England, Wales or Scotland. Watch this space; we are always keen to help in Northern Ireland.

The SNP spokesman, the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), called UK Government support inadequate. Well, almost regardless of what we had announced as the level of support, I could have predicted that he would say that it was inadequate. I remind him—

[Drew Hendry]

Will the Minister give way?

[Greg Hands]

Just let me explain what the support is: £37 billion for consumers so far this year and a £450 million boiler upgrade scheme. The hon. Gentleman might talk about fuel poverty, which is a very serious issue, but I remind him that it is of course a devolved issue in Scotland. I have reason to believe that he may know one or two people in the Scottish Government, so I urge him to direct his inquiries on fuel poverty to his party colleagues in the Scottish Government. Of course I am happy to take his intervention, if he will tell us whether he has raised the issue of fuel poverty with the Scottish Government.

[Drew Hendry]

I am delighted that the Minister has allowed me to intervene. Can I just clear up a couple of things? I raise the issue of fuel poverty in every way I possibly can with every Government, but I think he has forgotten that energy is reserved to the UK Government; he should have a wee look at his brief just to check. My question is this: does he think that £8 per head spent on insulation in England is good compared with the £27 per head spent on insulation in Scotland?

[Greg Hands]

Insulation is only one part of the picture when it comes to energy efficiency. I am delighted that the hon. Gentleman has recognised, and reminded us all, that energy is reserved to the UK Government. That is always refreshing to hear. I keep telling people in Scotland, “Thank God it is reserved, so that we don’t have to embark on the anti-nuclear policies of the SNP, or the anti-oil and gas sector policies,” even though the main emphasis of the oil and gas sector is indeed in Scotland.

On the regulator of the gas grid, as I have said, the CMA can intervene. Gas and electricity markets are considered natural monopolies when it comes to the grid. They are characterised by high fixed costs and start-up costs. For those reasons, these markets fall under the remit of Ofgem regulation. The heating oil market—

Oral Answers to Questions

Debate between Drew Hendry and Greg Hands

Thursday 15th July 2021 Commons Chamber

[Greg Hands]

I think the hon. Gentleman is confusing a number of different things, but let me start by saying that the UK proposed an equivalence agreement on sanitary and phytosanitary rules in negotiations—that was proposed by Lord Frost—but the EU refused. The EU does have agreements with, for example, New Zealand and others that still respect regulatory autonomy. We are very happy to discuss with Brussels an agreement on SPS rules so long as it respects UK regulatory autonomy and we do not sign up to dynamic regulatory autonomy. That is the read-across to other trade agreements; it allows us to have an independent trade policy while maintaining the high-quality trade deal that we have with the European Union.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

The Minister can defend his Government’s Brexit bourach all he likes, but EU-UK trade fell by 27% in quarter 1, with Scotland punished even further. He cannot blame covid, as the fall was over three times worse than the global comparison. Official statistics show that for every £245 that Brexit cost in lost trade, even if the Government were to agree multiple free trade agreements, it will bring in only around £18 in return. The UK is virtually alone in facing this kamikaze blow to its exports. Scotland voted against this trade catastrophe. When will the UK Government renegotiate this disaster—or do they intend to continue to be anti-trade?

[Greg Hands]

I take that with a bucket of salt from the SNP about being anti-trade. As we have heard so often in this House, the SNP has failed to support any trade agreement negotiated either by Brussels or by us in Westminster. I do not think there is a single party in this House that is more anti-trade than the Scottish National party. I urge the hon. Gentleman to have a look at the latest data. Trade with the EU is recovering—it may not yet be fully recovered, but it is recovering—and the latest data, in May, shows a very significant 8% improvement on the previous quarter. I refer him to last Friday’s data.

[Drew Hendry]

Mr Speaker, you can see why we do not support any trade deals from this Government—because they always sell Scotland out. Let us hear what industry is saying. Fishing representative bodies continue to say that the Prime Minister has betrayed them and that they have been sold out. Individual losses of tens of thousands of pounds are commonplace due to export delays. A perfect storm of red tape, driver shortages and other Brexit issues are destroying businesses across the board, but especially in food and drink. According to the Road Haulage Association, almost a third of UK hauliers say they are having to avoid working with the food and drink industry due to increased checks and admin. Costs are up everywhere on materials, admin and transport—20% in distilleries. What compensation is planned for those affected—or, when the Prime Minister said “eff business”, was that an instruction?

[Greg Hands]

There was a lot in that further supplementary. May I just remind the hon. Gentleman that most of the trade deals that he and his party have not supported are actually the EU’s trade deals? His party’s policy is to re-join the EU. The SNP was against the EU-Japan deal in the European Parliament and abstained here; it was against the Canada deal; it was against the Singapore deal; it abstained on South Africa, and it abstained on Korea.

When it comes to fisheries, I refer the hon. Gentleman back to what the ONS said, not this past Friday but in relation to February’s data—he is so out of date. This is what the ONS said in April:

“The disruptions to food exports in January 2021 appear to have largely been overcome and may have only had short-term impacts on trade.”

That is what it said in April, yet he is still not up to date. On hauliers, we are discussing all the time with the Department for Transport what extra action needs to be taken.

Finally, the hon. Gentleman asks for compensation. Perhaps he can come to this House and account for the £180 million given by this Government to the Scottish Government for dealing with the consequences and the impact of Brexit at the end of the transition period, because we are not at all sure where that money has gone.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership

Debate between Drew Hendry and Greg Hands

Thursday 24th June 2021 Commons Chamber

[Drew Hendry]

I thank the shadow Secretary of State for that clarification, and she is indeed right. There I was being generous to the Government about the effects; I will certainly try to learn the lesson there.

The Government have ignored industry and the advice of trade experts just to prove their own self-harming political point. They were warned that the precedents of the Australia deal would inevitably lead to other countries demanding the same capitulations, but they said that that would not happen. Now the New Zealand Trade Minister is on record demanding zero-tariff access to UK markets as a result, and of course others are following. In negotiations on the CPTPP, the UK cannot decline to align on too many areas, such as ISDS, agrifoods, consumer standards and more, and still expect to become a member.

In short, if the UK joins, the consequences are very likely to be disastrous. In all of the nations of the UK, the farming unions have stressed the importance of protecting the UK’s current high food and farming standards. After a calamitous few months for the food and drink sector across the UK, almost every organisation representing Scottish agrifood interests has written to the UK Government calling on them finally to take Scottish interests into account over negotiations with the CPTPP’s Australia.

Having failed in their duty over consultation with industry, devolved Administrations and regulators, the Government have of course failed to give this Parliament a meaningful vote, so let us ask the Government: will they bring forward a meaningful vote on the CPTPP? I will give the Minister the opportunity to respond if he would like to do so.

[The Minister for Trade Policy (Greg Hands)]

I will respond at the end.

[Drew Hendry]

Okay.

Oral Answers to Questions

Debate between Drew Hendry and Greg Hands

Thursday 10th June 2021 Commons Chamber

[Greg Hands]

We—myself, the Secretary of State and the whole of the Department for International Trade—listen very carefully, of course, to the voices of British farmers. The Secretary of State opened expressions of interest to become members of the trade and agriculture commission just this week. It is very important to understand that the role of the commission never has been to advise on negotiations; its role will be as debated and approved during the passage of the Trade Act 2021 and the Agriculture Act 2020, and we are looking forward to seeing its scrutiny later this year.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Many happy returns to you today, Mr Speaker.

SMEs make up the backbone of the Scotch whisky industry and the Minister likes to talk about whisky, so let us talk about the reality for the industry resulting from the Government’s trade policy. Speyside Distillery, winner of best whisky at the world whisky awards, tells me that sales are dramatically down since Brexit and that this Government’s awful Brexit deal has led to the cost of its goods going up by a fifth—up 12% on glass and up 7% on cardboard—and increased shipping costs and delays. Extra paperwork alone is costing it 33p per case. It tells me that a deal with Australia will not even scratch the sides of its substantial losses from Brexit, so what additional support and compensation will the Government pay to distilleries such as Speyside for these losses?

[Greg Hands]

I am delighted to hear the Scottish National party raise the subject of whisky, because it did not do so in the urgent question two weeks ago on the Australia trade deal. I remind SNP Members that Scotch whisky currently faces tariffs going into Australia; it is one of Scotch whisky’s most important markets and is a growing market even during the pandemic. In terms of trade volumes with the European Union, we are continuing to see a recovery in the data. This is of course volatile data, but none the less there was a 46% increase in exports to the EU in February and a further 9% increase in March. Further data will be coming out in due course.

[Drew Hendry]

As ever, when presented with the realities the Minister just spins into Brexit fantasy. They just do not care about Scottish businesses. There is a good reason why the SNP has never supported Westminster’s trade policy, and that is because Scotland’s needs are always ignored. The UK Government said fishing was expendable during the EU negotiations in the ’70s, their Brexit obsession dragged us out of the world’s largest single market, and now they are betraying our farmers and crofters all while capitulating on standards in animal welfare. They do not listen to Scotland and they do not care about Scotland, but is the Minister aware that they are being found out in Scotland?

[Greg Hands]

I am not sure that the hon. Gentleman has been listening carefully enough to what I have been saying to him about the SNP and trade deals. It is not just Westminster trade deals that he and his colleagues have rejected; they have even rejected the trade deals negotiated previously by the European Union. He has pledged to rejoin the EU, in which case Scotland would become immediately subject to those trade deals. He also wishes to rejoin the common fisheries policy, which would be completely against the interest of fishers right across Scotland.

The SNP has never supported any trade deal. It has been against the Canada and South Africa deals, and it has not supported the Japan or Singapore deals. It is simply anti-business, anti-trade and against the interests of the Scotch whisky industry and of Scottish fishers.

Agricultural Exports from Australia: Tariffs

Debate between Drew Hendry and Greg Hands

Thursday 27th May 2021 Commons Chamber

[Greg Hands]

My hon. Friend is a doughty champion for his constituents in general and his farmers in particular. There are great opportunities worldwide for the Welsh lamb sector. For example, British lamb is currently not allowed at all in America. We are looking at fast-growing Asian markets, and I refer back to the importance of the Australia deal as a springboard to CPTPP. Half of today’s global middle class is in Asia, and almost 90% of the next billion middle-class people in this world will be in Asia. That is where the growing demand for high-quality meat, such as the Welsh lamb produced by my hon. Friend’s constituents, can be found, and that is where I see great prospects and great opportunities for his constituents, his farmers and farmers across the United Kingdom.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP) [V]]

Everybody wants more trade deals to be done, but the Minister simply is not listening to those at the sharp end. Martin Kennedy, president of the National Farmers Union Scotland, said:

“Our seafood industry has already been hit hard by Brexit and now Scottish farming is next to be sacrificed—and once again it’s Scotland’s key industries which will bear the brunt of a Tory Brexit people here did not vote for”.

NFU England has warned Ministers that farmers will struggle to compete if zero-tariff trade on lamb or beef went ahead. The RSPCA has warned that tariff-free access for Australia would betray the public, farmers and animals. Those are just some of the warnings to Government from those affected, not from politicians. Will the Minister rule out tariff-free access for Australian agricultural produce?

Nothing must threaten our actions to mitigate climate change. Australia is home to large energy and mining firms and has lagged behind other advanced economies when it comes to addressing climate change. Will the Minister guarantee that no deal with Australia will include investor-state dispute settlement mechanisms, or will he press ahead and betray not only today’s public, farmers and animals, but those of future generations?

[Greg Hands]

It is always good to hear from the hon. Gentleman. I noticed in his series of questions that there was, for example, no mention of the £113 million-worth of Scotch whisky sold into Australia at present that is subject to 5% tariffs. Australia is actually the eighth largest market by volume for Scotch and has been growing at 7% per annum. There was no mention of the opportunities for Scottish financial services, FinTech or agrifood more generally—we actually have an agrifood trade surplus with Australia.

The hon. Gentleman quotes NFU Scotland, which has great people. I have met Martin Kennedy personally twice in the last week, as well as the Scottish Government to discuss the prospect of this deal.

Let me reiterate: there will be no change in our standards as a result of this trade deal. We are absolutely committed to no compromise on our animal welfare, food safety or environmental standards.

The hon. Gentleman asked me to rule out tariff-free access to Australian agricultural products. There already is tariff-free access through an autonomous tariff rate quota. I think he seeks a rolling back of the trade arrangements we already have with Australia.

The hon. Gentleman asked about ISDS. It is a live negotiation, and there will be a chapter on investment. We are huge investors in each other’s markets, and I remind him that the UK has never lost an ISDS case.

However, the hon. Gentleman has serious questions to answer, too. Never in 20 years has the SNP supported any trade deal done by the UK or even by the EU, even though key sectors of the Scottish economy, such as whisky, apparel and fisheries, are dependent on our trade. SNP Members voted for a no-deal Brexit. They voted against deals with our friends, such as Canada, South Korea and South Africa. They did not support deals with Japan or Singapore. Whatever assurances I have given him today, or whatever turns out to be in the deal, I do not think it would make him and the SNP support this deal. When it comes to trade, the SNP is isolationist and against the best interests of Scotland.

Oral Answers to Questions

Debate between Drew Hendry and Greg Hands

Thursday 15th April 2021 Commons Chamber

[Greg Hands]

I thank the hon. Member for that follow-up question, and I wonder if, to coin a phrase, he has perhaps taken his eye off the ball, because actually there was a bounce back in trade in February. I will give him an independent view from the Office for National Statistics, which on the trade data says:

“Exports of food and live animals to the EU increased…in February 2021, after being significantly impacted in January… Exports of fish and shellfish to the EU also saw an uptick in February 2021 as exporters adjust to new regulations following the end of the transition period. The disruptions to food exports in January 2021 appear to have largely been overcome and may have only had short-term impacts on trade.”

That is from the Office for National Statistics, which he may seek to consult.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I am delighted the Minister has quoted the ONS, because figures out this week show economic output remaining nearly 8% below the pre-pandemic peak and exports to Germany, Italy and Ireland down by as much as 50% to 75%. These are not teething problems; they are the bite of long Brexit. Does the Minister agree with Matt Griffith from the British Chambers of Commerce that his members are experiencing a

“permanent deterioration in their competitive position due to higher admin, paperwork and shipping costs”?

[Greg Hands]

It is good to have an argument about statistics, but actually the UK exports to the EU in February of £11.6 billion were only just below the monthly average for the whole of 2020, which was obviously very impacted by the pandemic, of £12 billion. I would caution against using statistics in this way—we need to see the bigger picture—but I refer the hon. Member back to what the ONS said. On the help we are providing for exporters, we have various Government helplines, the Brexit business taskforce, Brexit SME support and various measures in place specifically to support the agricultural sector and the Scottish seafood sector.

[Drew Hendry]

Let us come away from statistics and back to what is happening. JP Morgan boss Jamie Dimon wrote to staff this month warning them that it will move all its EU-faced business out of London and into Europe. He says:

“Brexit was accomplished, but many issues still need to be negotiated. And in those negotiations, Europe has had, and will continue to have, the upper hand.”

The financial services sector is a huge employer in Scotland, and it is also facing this Westminster-inflicted disaster. Can the Minister now see why people in Scotland want to have their choice and their say over their own future?