Oral Answers to Questions

Emily Thornberry Excerpts

Wednesday 11th July 2018 Commons Chamber

[Mr Speaker]

Before I call the right hon. Member for Islington South and Finsbury (Emily Thornberry), I should mention that we are very fortunate today to be joined in one of our Galleries by two members of the Osmond family, Jay and Merrill Osmond. It takes some of us back to the 1970s. We are very pleased to have you—well done.

[Emily Thornberry (Islington South and Finsbury) (Lab)]

May I join the Minister in paying tribute to Lord Carrington, who served his country with such distinction in both the forces and in government and whose decision to resign the office of Foreign Secretary will be remembered as an act of great principle and honour?

I share the joy at the rescue of the boys in Thailand and salute the bravery and sacrifice of the diving teams, including the seven British divers.

On the question of tonight’s match, I am afraid that I am not going to be watching it. It will be the only game that I have missed, but I will be representing the Labour party at tonight’s memorial event for the anniversary of the Srebrenica genocide—something very close to my heart, given my father’s role in trying to prevent it.

Let me wish Gareth Southgate and the England team the best of luck for this match and hopefully for the final on Sunday. I may know very little about football, but even I can see that England’s progress so far at the World cup shows what can be achieved when all the individual players work effectively as a team, when there is a clear game plan, when they are all working together and, of course, when everyone respects and listens to the manager. Can I simply ask the Minister what lessons he thinks the England team could teach this shambles of a Government?

[Mr Lidington]

I think that the England team does teach some good lessons about the importance of having a clear plan which the leader, the team captain, has the full support of the squad in delivering. We will of course be publishing tomorrow full details of the United Kingdom plan for Brexit, which we will be putting to the British public and to our 27 European partners. When the right hon. Lady gets up again, perhaps she will tell us what the Labour party’s alternative plan is, for at the moment that is one of the best kept secrets in politics.

[Emily Thornberry]

I thank the Minister for that answer, but who does he think he is kidding? Even Donald Trump can see that the Government are in turmoil, and he has not even got to Britain yet.

May I ask the Minister once again the question I asked him at PMQs in December 2016, when he compared Labour’s shadow Cabinet to “Mutiny on the Bounty” remade by the “Carry On” team. By those standards, what would he describe his lot now as—perhaps “Reservoir Dogs” remade by the Chuckle Brothers? But let me take him back to our first PMQs in 2016, when I asked him how it was possible to retain frictionless trade with Europe without remaining in a customs union. I got no answer then. Let me try again today. Can he explain how frictionless trade is going to be achieved under this Government’s Chequers plan?

[Mr Lidington]

The right hon. Lady will see the detail in the White Paper but, if she had been listening to my right hon. Friend the Prime Minister on Monday, she would have heard the Prime Minister explain very clearly that we believe a combination of the common rulebook on goods and on agri-food, coupled with the facilitated customs arrangement that we are proposing, will provide just that. What is more, that takes full account of the wish of United Kingdom business to ensure that frictionless trade will continue. If the right hon. Lady disagrees, will she stand up and say what her alternative proposal is?

[Emily Thornberry]

I thank the Minister for that answer on the Chequers free trade proposal, but I was hoping today that he would go beyond the theory and explain in practice how it works. So let me check one specific, but important point. For the Chequers proposal to work in practice, based on what the Prime Minister said on Monday, not just the UK, but every EU member state will have to apply the correct tariff to imports, depending if they are destined for the UK or the EU, and then will have to track each consignment until it reaches its destination to stop any customs fraud. If that is correct, can I ask the Minister what new resources and technology will be required to put that system in place across the EU? How much is it going to cost, who is going to pay and how long is it going to take?

[Mr Lidington]

No, I am afraid the right hon. Lady is incorrect in her assumptions. For a start, the customs model that we are proposing would not, under the arrangements that we suggest, affect either imports or exports involving this country and the European Union. They would not involve exports from this country to the rest of the world. We are talking about imports to this country from non-EU member states. Our calculation is that when, in particular, we look at the importance of those sectors where either zero tariffs or very low tariffs already exist under World Trade Organisation arrangements, or where finished goods are involved and therefore it is easy to identify the final destination, we will find that 96% of UK goods trade is going to pay either the correct or no tariff at all at the border.

[Emily Thornberry]

The Minister has, I believe, said something quite interesting, and I do hope that his Back Benchers are listening very carefully. He says that the Chequers free trade proposal will require no new technology and will involve no tracking of goods, but how can that be possible if there is no divergence on tariffs and no divergence on regulation—in other words, on trade in goods we will continue exactly as we are at present?

[Mr Lidington]

I am afraid the right hon. Lady might not have sat through all the Prime Minister’s statement and responses to questions on Monday, but my right hon. Friend made it very clear that we are actively looking in these new circumstances—frankly, we would, as a sensible Government, be looking anyway—at the opportunities that new technology offers, and will offer in the future, to minimise friction on trade for businesses of all kinds.

[Emily Thornberry]

The Minister cannot answer these simple questions of detail because he cannot admit the truth. The truth is that the Chequers proposal is total delusion. The UK cannot set its own tariffs on goods and keep frictionless trade with the EU. The technology to do so does not exist. There will be no divergence on tariffs in a free-trade area and no divergence on regulation. It is a customs union in all but name, but it does not cover our service industries, because—the Government claim—that is the great area of potential to negotiate trade agreements with the rest of the world. Can I ask the Minister to explain why a country such as China would agree to import more of our services if we cannot agree, in turn, to lower tariffs on its goods?

[Mr Lidington]

First, I think that the right hon. Lady still misunderstands the customs arrangements that we are proposing, and I advise her to look at the White Paper when it is published tomorrow. The reason we are proposing to treat services differently is that it is in services that regulatory flexibility matters most for both current and future trading opportunities. Although the EU acquis on goods has been stable for about 30 years, the EU acquis on services has not been, and the risk of unwelcome EU measures coming into play through the acquis on services is much greater.

[Emily Thornberry]

Well, I have asked the Minister why China would accept such a one-way deal on services, and the answer is that it would not. It is simply another Chequers delusion—a Brexit dream with no grip on reality. There is an easy answer to this mess: an alternative that will offer all the benefits of the Chequers free trade area with no new technology, no cost and no delay; an alternative that both this House and Europe will accept; and an alternative covering both goods and services. Can I appeal to the Minister to accept that alternative, do what I urged him to do two years ago, and, instead of trying to negotiate some half-baked, back-door version of the customs union, get on with negotiating the real thing?

[Mr Lidington]

Again, the right hon. Lady keeps silent about what the Labour party is proposing. The truth is—[Interruption.]

[Mr Lidington]

The Labour party says that it would strike new trade deals, but its plan to stay in the customs union would prevent that because it would bind us to the common commercial policy for all time. It used to say that it would control our borders, but it backed an amendment to the withdrawal Bill to let freedom of movement continue.

The Labour party also used to say that it respected the referendum result, but now it is toying once again with the idea of a second referendum. The Labour leader will not rule it out; the deputy leader will not rule it out; and the shadow Brexit Secretary will not rule it out. Nothing could be better calculated to undermine our negotiating position, and lessen our chances of a good deal, than holding out that prospect of a second vote. Whichever side any of us campaigned on in that referendum, the country made a decision, and we should now get on with the task in hand. That is what the Government are doing.

[Emily Thornberry]

The Minister seems to argue that by leaving the EU the British people voted against a customs union, but that is the complete opposite of what he used to say. I take him back to 2011, when he said that a yes-no referendum would not give us that information. He said:

“that sharp division between the status quo and quitting the EU does not reflect the breadth of views held in…the country.”

For example, he said:

“If people voted to leave the EU would that mean having no special relationship with the EU or would it mean a relationship like Norway’s?”

He said it. My question is, we understand what he is saying, but when did he stop agreeing with himself? I fear that we will look back on this week as one where the Government could have taken a decisive step towards a sensible workable deal to protect jobs and trade. We have ended up with them proposing a dog’s Brexit, which will satisfy no one, which will not fly in Europe, which will waste the next few weeks and will take us—

[Mr Speaker]

Order. Thank you. [Interruption.] Order. No, I think we have heard it fully, and that is absolutely right.