Leaving the EU: Customs

Edward Leigh Excerpts

Wednesday 16th May 2018 Commons Chamber

[Ross Thomson]

No, thank you.

To return to the Brexit prize of being able to set our own trade policy, it was on 9 March 1776 that a great Scot, Adam Smith, published “The Wealth of Nations”, in which he outlined a vision of how trade produced prosperity and opportunity. Post Brexit, we can revitalise that vision. After we leave the EU, we can become a global leader in free trade, using trade to spread prosperity and political stability. I was pleased to welcome the Secretary of State for International Trade to my constituency last week, where he heard about the opportunities for fish processing and for oil and gas in trade across the world to increase exports and promote prosperity not just at home, but abroad.

[Sir Edward Leigh (Gainsborough) (Con)]

To cut through all this debate about whether we should stay in the customs union, I seem to remember that our manifesto was quite clear that we were leaving the EU, the single market and the customs union, and that we were going to negotiate a free trade agreement. Surely the whole party and the whole House can unite around that. That is why we are having the implementation Bill and ensuring that all these existing laws are in our law. What could be more simple than a free trade deal? Let us stick to it.

[Ross Thomson]

I could not agree more with my colleague. Not only was that in our manifesto, but I believe it was in those of other parties so that we would enact the wishes of the British people. I am not surprised that the only party not listening to those wishes is the SNP, because it puts its fingers in its ears to the results of all and any referendums.

I am delighted that the new Department for International trade has undertaken 167 visits overseas. It is clear from the trips that Ministers have taken that a British label on goods is regarded as a sign of quality, as it is for services, and the demand for British is huge. International demand for British goods is growing, and Aberdeen, which I represent—

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[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

Today’s motion shows definitively that the Opposition are unfit to be a party of Government. It is quite simply the height of irresponsibility for the Labour party to demand that the Government should publish confidential Cabinet papers about our future customs arrangements at a time of such crucial negotiations. That would inevitably expose every detail to our negotiating partners in Europe and destroy every inch of leverage that we have with them. No Government could assent to that, and no Opposition worthy of being a Government should ask for it.

[Sir Edward Leigh]

I do not know whether my hon. Friend heard the historical analogy from the hon. Member for Streatham (Chuka Umunna), but it was entirely false, because the Labour party then was not trying to get Cabinet papers revealed—that would have been ridiculous, either in wartime or now. What it was trying to do was bring down the Prime Minister. That suggests that this motion and this debate are not about the truth; they are about trying to bring down the Prime Minister.

[Mr Clarke]

I agree, and I would draw another historical analogy: it is 60 years ago this year that Nye Bevan issued his famous warning to the Labour party not to send a British Foreign Secretary into the negotiating chamber naked, and that is precisely what this motion would do. It runs directly contrary to our national interest, and the whole country will see how profoundly misguided it is. There is no way of overstating this: every Member who votes for this motion—every one—will be damaging the principles of Cabinet government in the hope of inflicting partisan advantage. It is unforgivable. Coming a week after north-east Labour MPs called for a second referendum—or, as they now euphemistically call it, a people’s vote, as if a referendum were not exactly that—this shows the Opposition in the worst possible light.

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[Emma Reynolds]

I sometimes agree with the right hon. Lady but on this occasion I do not. The paper I am holding up now is the kind of ludicrous document we have before us: the “Future customs arrangements” paper. It is the only thing written by this Government on the customs union, and it contains just five flimsy paragraphs on the Prime Minister’s supposedly preferred option. That is not acceptable. Members of this House have a right to scrutinise the Government’s proposals, and this document is for the moment all we have to go on.

At the crux of this debate is the fact that membership of the customs union is crucial for two reasons. It is crucial because it is the only way to protect jobs and investment in my region of the west midlands and across the country. The EU is the UK’s biggest export market and our manufacturers, such as those in the automotive sector like Jaguar Land Rover and in the aerospace sector, rely on a frictionless border with that market. Any delays on the border, any extra cost and any added bureaucracy will put jobs and investment at risk.

[Sir Edward Leigh]

Has the hon. Lady no higher ambition than to be like Turkey?

[Emma Reynolds]

Turkey’s arrangement with the EU was agreed when Turkey was on the path to membership; that is not the arrangement the Labour party is seeking with the EU, and to suggest otherwise is, frankly, ludicrous. We are proposing that we remain in the customs union and have a say over trade agreements done with the rest of the world. That is a more responsible policy than the hard Brexit that Conservative Members are preaching.

The other crucial issue in this debate is the border on the island of Ireland. The Prime Minister has made two contradictory promises: she has promised that there will continue to be an invisible border between the Republic of Ireland and Northern Ireland, but she has also promised that we will leave the customs union. Anybody who has rationally considered this in the round will come to the same conclusion as I have: it is clearly not possible to do both of those things. That is why both the models being considered by the Government have been rejected by the EU. The Prime Minister can have as many meetings of the Cabinet and the Cabinet Sub-Committee and with Tory Back Benchers as she likes, but that does not change the fact that the EU opposes both of these models and neither of them is tried and tested. If she spent a little less time negotiating with her party and a little more time negotiating with our EU partners, she might have made more progress in the negotiations to date.