Oral Answers to Questions

George Hollingbery Excerpts

Thursday 20th December 2018 Commons Chamber

[Kerry McCarthy (Bristol East) (Lab)]

2. What recent discussions he has had with members of the WTO on global (a) food security and (b) agricultural trade.

[The Minister for Trade Policy (George Hollingbery)]

I add my Christmas wishes to you, Mr Speaker.

Both issues have been covered recently in discussions with World Trade Organisation members. For example, agricultural global value chains were considered at the recent G20 trade and investment working group. As a supporter of the rules-based multilateral trading system, we believe that WTO members must continually look for ways of strengthening the system.

[Kerry McCarthy]

I understand that a number of important WTO member states have objected to the UK and EU splitting tariff rate quotas post Brexit. At the end of October, the Secretary of State announced that the UK would be entering into general agreement on tariffs and trade negotiations. Is that another illustration of the fact that we cannot unilaterally negotiate trading arrangements post Brexit with other countries, and that it requires agreement? It looks like it will be an incredibly lengthy and tortuous process that will not have quick results.

[George Hollingbery]

The hon. Lady will know that the vast majority of nations represented in the WTO accepted the deposit of our schedules. Some did not and we are entering article 28 negotiations with them, as is completely normal. We can trade on those schedules as deposited until then—the European Union has been trading on uncertified schedules since 1995, so it should not impede our trade. Yes, negotiations will continue to agree those tariff rate quotas.

[Mr Richard Bacon (South Norfolk) (Con)]

You have had a bit of a week, Mr Speaker—we all have. May I take this opportunity to wish you a very restful Christmas and a happy new year?

Does the Department for International Trade accept that what one needs for international trade is willing buyers and sellers? Has the Department made any estimate of how much lower food prices will be to British consumers if we leave the European Union without the withdrawal agreement?

[George Hollingbery]

The situation after a hard Brexit— a no-deal Brexit—is a complex one and will rely on a large number of factors. Some Government policies have yet to be absolutely finalised. The pricing of goods in the UK market, particularly for food, is regarded as extremely sensitive, as indeed are the incomes and livelihoods of farmers throughout the UK who rely on selling those products.

[Nick Thomas-Symonds (Torfaen) (Lab)]

Merry Christmas, Mr Speaker.

The memo published by the European Commission yesterday was clear that, if the UK leaves with no deal and ends up trading on WTO terms, customs declarations and other checks will be required on exports into the EU. Have the Government estimated how much that will cost UK business?

[George Hollingbery]

The Prime Minister has brought back a deal from Brussels. I believe it is the right deal for this country. If it is put in place, what the hon. Gentleman describes will plainly not be an issue.

[Rebecca Pow (Taunton Deane) (Con)]

Happy Christmas to you from Taunton Deane, Mr Speaker. [Interruption.] I thought I would get that in.

The EU is the largest trading partner for agriculture and food for this country and, under our relationship with the EU, agriculture has blossomed. Margins are very tight. Will the Minister give assurances that, in the worst-case scenario, agriculture will not suffer under WTO rules? In the best-case scenario, does he agree that accepting the deal is by far the best option for our farmers?

[George Hollingbery]

I apologise, Mr Speaker—I was not listening carefully to the question. I am told by my Front-Bench colleagues that the answer is yes and yes.

[Mr Speaker]

I think we appreciate the Minister’s candour. There was no dissembling there, and we thank him for that.

[Nick Smith (Blaenau Gwent) (Lab)]

Merry Christmas to everybody.

Will the Minister confirm that any future trade agreements will not undermine current environmental and animal welfare standards?

[George Hollingbery]

On this occasion I was listening and have the question in my mind. I deeply apologise to my hon. Friend the Member for Taunton Deane (Rebecca Pow)—she is listed as having another question.

My right hon. Friend the Secretary of State has repeatedly made it clear in the House that we will not lower our standards in pursuit of free trade agreements. To reassure the hon. Gentleman, apart from anything else it would be business madness to do so. A lot of our exporters rely on Britain’s reputation abroad for quality, and undermining it would simply not work. Further, large numbers of Labour Members did not vote for the comprehensive economic and trade agreement, which contained specific chapters—chapters 5, 23 and 24—that pursued exactly what he wants. Labour Front Benchers did not support it.

[Kevin Foster (Torbay) (Con)]

3. What steps he is taking to consult on potential new free trade agreements.

--- Later in debate ---

[Chris Elmore (Ogmore) (Lab)]

5. What steps he plans to take to ensure that future trade agreements deliver economic benefits to all constituent nations and regions of the UK; and if he will he make a statement.

[The Minister for Trade Policy (George Hollingbery)]

This Government are committed to working closely with all nations and regions to deliver a future trade policy that works for the whole of the UK, and we will continue to engage with the devolved Administrations. I visited Cardiff on 15 October, where I discussed this topic with Assembly Members. The Board of Trade will also ensure that the benefits of free trade are spread throughout the UK.

[Chris Elmore]

A very merry Christmas to you, Mr Speaker. I am grateful to the Minister for his answer. However, will he elaborate on his work with the Welsh Government to ensure that when trade agreements are made, regional investment happens across the south Wales valleys, north Wales and mid Wales and benefits the whole of Wales rather than focusing, for example, on cities, so that valley communities like mine can really benefit from the economic development that comes from trade agreements?

[George Hollingbery]

We are currently working on a concordat with the Welsh Government, through which they can contribute directly to the process for free trade agreements. I would expect them to make those points to us and tell us where the industries that matter to them are. We can therefore construct our free trade policies around that input.

[Martin Vickers (Cleethorpes) (Con)]

Increased trade inevitably leads to more business for our major ports, such as Immingham in my constituency. Does the Minister agree that free trade zones and free ports are worthy of serious consideration post-Brexit?

[George Hollingbery]

All I can say at the moment is that anything that can be done to increase free trade in the future should be looked at. Indeed, free ports have been looked at and I know that my hon. Friend has been a great champion of the idea. We will continue those discussions.

[Judith Cummins (Bradford South) (Lab)]

Supporting our regional economies through trade agreements is about more than just growing exports and opening markets to our producers; trade agreements should also be used to unlock and encourage investment across the UK. A recent report by the Centre for Towns shows that in 2017 nearly 60% of foreign direct investment went to the UK’s biggest cities, that 70% of that went to London, and that towns and communities elsewhere have seen FDI decline or remain flat. When will the Government listen to Labour and take the action needed to rebalance the economy and attract FDI right across the country?

[George Hollingbery]

I thank the hon. Lady for her question and, indeed, the whole Labour Front-Bench team for our associations and discussions during the year, which have, on the whole, been friendly and constructive.

The hon. Lady will be glad to hear that the Government absolutely understand the issue. Our foreign direct investment programme has begun to look at pre-packaging offers out in the regions, particularly in smaller towns, which quite a lot of major potential investors will not know of—they will not know about the skillsets there or about the availability of land and so on. They have been pre-packed into larger blocks so that foreign direct investors can be presented with them as places where they can take their investment outside London and the major cities.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[The Minister for Trade Policy (George Hollingbery)]

I am not aware of the exact statistic for cost, but I will happily admit to the House that our record on freedom of information requests in the past has not been good enough. However, a great deal of effort has been put into trying to ensure that we respond on time, and in the latest quarterly report from only yesterday we managed to reach 90%, which is what we were trying to achieve. If the hon. Gentleman wishes, I will happily write to him with an answer.

[Nigel Huddleston (Mid Worcestershire) (Con)]

The UK Israel Tech Hub estimates that the tech partnerships that it has created have an economic impact on the UK of around £800 million. What can we do to continue to grow this mutually beneficial relationship?