European Affairs

Giles Watling Excerpts

Thursday 15th March 2018 Commons Chamber

[Anna Soubry]

The hon. Lady makes a very good point. Look, some people would argue that it is a miracle that 48% voted for the EU. Anybody who plays or watches cricket knows that before a game, they roll the pitch. We have taken a JCB digger to the pitch for the past 40 years. It is astonishing. On both sides, we have all blamed the EU for all our misfortunes: if something was difficult, we just blamed the EU. Then, of course, in a very short period, we said, “You know that thing that we said was really rather rubbish—actually, it is really rather wonderful. Would you go out and positively vote for it?”

The other dawning of the Brexit reality was in the excellent speech that the Prime Minister delivered a few weeks ago. In it, she faced up to the reality in a highly commendable way—her tone was right and I agreed with much of her content. However, the reality of what she said was this: in admitting that there would be, for example, no passporting for financial services and that we would have reduced access to the market, what she was saying—as others have observed—is that for the first time, I think, in the history of any Government in any country in the world, we are actively going to pursue a course, knowing that it will make us less prosperous than we are under the current arrangements. That is the view of Her Majesty’s Government. I hope as we go forward that perhaps the Government, in that spirit of reality, will also understand that this can and must be stopped. We cannot pursue a course that will make the people of this country less prosperous.

We are meant to be talking about the economic side of our EU relations and affairs, so I will make this observation. The OBR’s predictions were to be welcomed because they were better than its previous predictions about our prospects of growth. I observe, as many others have, that we benefit at the moment from a strong labour market. We are almost at the point of having record levels of employment, which means, of course, that we have more money in the coffers by way of taxation and national insurance. In the financial and insurance sectors, we have seen pay rises of some 7%, and as many have observed, services comprise 80% of our economy.

We know that consumer spending has risen, and that, too, would account for the increased money in the coffers, because it means that our VAT receipts have gone up again. The weakness of sterling means that the companies whose foreign earnings are important to them have seen the worth of those earnings go up.

We must take all those factors into account to understand why it is the view of many that, notwithstanding the OBR’s better forecast, our country is actually experiencing some of the slowest growth in the G20. We think we are doing well, but when we compare ourselves to other G20 countries, we see that we are not doing anywhere near as well as we should be. I have given an explanation of why we are not where we thought we might be, but the point, of course, is that if we were not leaving the European Union, we would be doing considerably better and our prospects would be considerably higher.

Let us be clear about this. Investments are already being delayed, and we know that unless we get this transition in place, a number of important businesses will leave our shores. We also know that business wants certainty, and, in my opinion, the certainty that it is crying out for is the certainty of knowing that we will stay in both the customs union and the single market. No one should underestimate the real risks that our country faces. If we do not get this right, businesses will simply leave. We have already seen examples of that. There are Japanese companies that were promised by Margaret Thatcher, one of the finest proponents of the single market, that our country would never leave the single market. They have invested billions of pounds in real, skilled jobs in our country. Anyone who speaks to those companies—as many of us do—should ask them how they see the prospect of our leaving the single market and the customs union, and, indeed, the European Union. The fact is that instead of investing here, they will invest in other European countries, because we were the bridgehead into the EU.

I have dealt with the Government’s analysis in my interventions, and I know that you are urging me to speed up, Madam Deputy Speaker, but I have not had an opportunity for some time to make a long speech about this matter, which is dear to my heart, so I hope you will forgive me. I hear you—or, rather I see you—and I take the hint. I am about to make my concluding remarks. However, these things need to be said.

The Government, quite rightly and responsibly, asked civil servants in all Departments to look at the different options that were available and to analyse the economic benefits that they might or might not convey. I urge Members to read the papers. They should go into the darkened room, or even better, get hold of those papers, because the Exiting the European Union Committee has had the good sense to publish them. This is new modelling—the best available framework, prepared by civil servants who act with complete independence and, as usual, have exercised the huge skills that they possess. They recognise all manner of variances. They believe that these analyses are the very best, and they are keen to sing the praises of the modelling.

What does that modelling reveal? It reveals that even if the House and the Government were sensible enough to accept the single market and the customs union, membership of the European economic area after we had left the EU would cause our projected growth to fall by 1.6%, a free trade arrangement would reduce it by 4.8%, and World Trade Organisation rules—the cliff edge urged by some Conservative Members; the most irresponsible of all options—would involve a reduction of 7.7%. Moreover, those models do not include the value of the customs union.

I want to conclude—you will be pleased to know, Madam Deputy Speaker—by expressing some views on trade deals. It concerns me greatly that the British public are not being properly and fully informed about them. I say with respect to those on the Treasury Bench that it is very important that they are absolutely up front with people and stop putting forward the chasing of what are effectively unicorn deals. We enjoy 50 free trade deals by virtue of our membership of the EU. The idea that we will not get a deal with Australia is madness, because of course the EU will soon be doing a deal with Australia, and who do we think they will be doing a deal with first, the EU or the UK? The EU of course. So we will benefit from all these free trade deals in any event; we are not getting anything different by leaving the EU.

It is very unfortunate that we are not explaining the facts on free trade arrangements—the 50 or so we currently have by virtue of our membership of the EU, and the other arrangements we also enjoy by virtue of our membership. As this analysis shows, the reality is that even if we get every single free trade deal that is available, that still will not make good the loss to our economy of leaving the EU.

So—finally, Madam Deputy Speaker—people must wake up and realise that our EU colleagues will miss us and they want us to stay, and if we leave and a future generation wants us to return we will not be able to re-join on such good terms as we currently have. The EU will not miss us because of our trade—they will find new markets; we must get real on that—but they will miss us because of what our country has always brought to the EU: we are the voice of sanity; we are the check on the excesses; we are the ally that many seek to keep the EU—

[Giles Watling (Clacton) (Con)]

indicated dissent.

[Anna Soubry]

My hon. Friend shakes his head, but, with great respect, he should go and speak, as many of us have done, to ambassadors and senior members of Government. They are genuinely upset that our country is leaving, because of the loss from that and the damage and harm it will do to the EU and because of the great role our country has played in many respects in the best part of the EU’s work, which is the advancement of free trade.

I believe that the people of this country are looking for some way out of this mess, because it is a mess, and it is up to us as politicians to provide the leadership. This place cannot overturn the referendum result; the people began this and it is for the people to finish it. However, the people are now entitled to have their say on the final deal—I have no doubt about that—because their future is what is most important and increasingly, as the reality dawns and they understand the full detail of what we have done, it is not that they are regretting their vote, but they do not like what they see on offer as the future out of the EU. So let us be clear: let the people have a final say on the final deal.

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[Giles Watling (Clacton) (Con)]

I will endeavour to be as brief as I can, Madam Deputy Speaker. It is a great honour to follow the hon. Member for Lewisham East (Heidi Alexander), who made her points with great passion and eloquence. I find myself in an interesting position in this debate, because I was well known in my area as a remainer. I was shaking my head earlier because I believe we will still have a very close relationship with Europe. However, 70% of my constituents voted leave, and this was of course 10 months before 62% of them voted for me—Members may extrapolate from that what they will. Perhaps it was because I was a remainer and a Eurosceptic—you can be both.

The aforementioned interesting position in which I find myself is that, although I am a remainer, I am, above all, a democrat. Therefore, I am now determined to follow through on Brexit; we were given a very clear message, not only by my constituents, but by the UK as a whole. It was always going to be a rocky path and, as we have seen, it has been beset by those who might want to make the UK take another path or even, as has been said, hold a second referendum. That would be a serious mistake and take us back to the dark days of destructive populism, and I am sure none of us wants to poke that particular hornet’s nest again.

As we all know, referendums are, by their very nature, divisive. Let us take the example of the referendum in Scotland, a wonderful country where I have had the great pleasure of working on many occasions and in many places. There was always that united joshing at the token Sassenach—that was me, and it was a position I enjoyed very much. It was a part I had to play. Interestingly, shortly after that referendum, I returned to Scotland, where I was working in Glasgow, and found that the Scots were now at each other’s throats in Sauchiehall Street and the token Sassenach was largely ignored. We have now had our EU referendum and the results have had very similar effects, so I reiterate that we do not want a second, even more divisive, referendum.

The only sensible way forward is to ensure a clean break with Europe, while ensuring that we get the best deal possible—a unique deal, as the Minister said. I refer to a bespoke deal that suits the very special relationship that we already have with our European neighbours. Leaving the EU cannot mean long-term membership of the EU’s single market or the customs union. That would mean complying with the EU’s rules and regulations, with the UK having very little or no say over them at all. By remaining a member of the single market and customs union, the UK would, in effect, not be leaving the EU at all. It would mean less control for the UK, not more, and that is not what my constituents or the UK as a whole voted for.

My constituents voted to step out on to the world stage, taking the lead and taking advantage of new opportunities. I am pleased that we are building the economic base that will help our country compete in the world market. I am pleased to say that in withdrawing from the EU, the UK will be leaving the common fisheries policy, a policy that has had a profound impact both on the UK’s coastal communities and on the sustainability of our fish stocks. As an MP for a coastal community—the wonderful, glorious sunshine coast of Clacton, Walton and Frinton—I believe it is imperative that the Government do not give ground to the EU on this issue, especially now that Donald Tusk has requested that reciprocal access to our fishing waters be maintained.

I am also delighted that, according to press reports today, EU negotiators have accepted our demands to pursue an independent trade policy while remaining inside the customs union and single market, but only during the transitory or, as the Minister said, implementation period. Then, we come out of the single market and customs union, and, as we have done so many times before, strike out on our own to a bright new future. That bright new future can be achieved only if we give our negotiators a free hand to do the deal. Those who have challenged the deal makers to declare their hand in Parliament before any deal is struck demonstrate a fundamental ignorance of the whole process of negotiations. The 27 countries of Europe must not be given the luxury of knowing exactly where our bottom line is. That would clearly negate any negotiation. I say to Opposition Members that it is really a case of “Don’t tell ’em, Pike!”

We made a mistake when just before Christmas we narrowly voted for Parliament to have final approval of any deal. That weakened our negotiators’ hand. The EU is now aware that, whatever deal is struck, it might not be approved; thus, it might feel that it can strike a harder bargain. Furthermore, if I may be allowed a small analogy, if I come to buy your car, Madam Deputy Speaker, whatever odd sticker you might have in the windscreen, we both want something: I want your car and you want my cash. At the outset, we must both be prepared to walk away. That is the point that my right hon. Friend the Member for Wokingham (John Redwood) made, and that, as we all know, is how business works. To sum up with another analogy, one does not play poker and show one’s hand.

I, too, have lived and worked in Vienna in Austria, which is a lovely place; I had a long-term contract to work in Rome—it was five years, I think; and like many of us, I have holidayed all over Europe. Members would imagine that those experiences would make me a classic Europhile, and they did. But I reflected on the fact that I have also worked in America, Egypt, the far east, the Arabian states and Africa. So what does that make me now? A globophile? I think it does. The opportunities to live, work, trade and play all over the world will still be with us but, because we are leaving the EU, we will have control of our own borders. Perhaps more importantly, we will still be able to attract people from all over the world to be a part of the great British economy.

Finally, I declare myself to be wearing two hats in this debate: one as an optimist and the other as an animal lover. I have been an animal lover all my life. I own a house full of yappy dogs and in the 1990s I was part of a team that broke up a puppy-farming ring in Wales. I now see an optimistic future in which we can dramatically strengthen our animal rights laws when we are no longer constrained by the EU. The UK has higher animal welfare standards than any other country in Europe, and the Government have delivered a slew of animal welfare initiatives over the past months alone—for instance, an ivory ban to help end elephant poaching; CCTV in slaughterhouses; an increase in the maximum sentence for animal cruelty; a ban on electric-shock collars; a ban on microbeads; and the cutting down of single-use plastics that harm our fish, birds and sea mammals, just to name a few.

EU law should not be a benchmark for animal welfare. People can keep farm animals in unspeakably cruel conditions in Europe without breaking a single EU law. It would be depressing if that were the standard that we set for ourselves. I wish to focus on strengthening animal rights as we go through Brexit, and I see a good opportunity as we consider a ban on live animal exports as a part of our trade policy. I truly believe that we will, in the end, get a good deal. If we hold our nerve, the future can be very bright indeed.

Spring Statement

Giles Watling Excerpts

Tuesday 13th March 2018 Commons Chamber

[Mr Hammond]

The hon. Lady is a tireless campaigner on this issue, and both I and my right hon. Friend the Prime Minister have heard her pleas on behalf of parents in this terrible situation. I am sure, however, that the hon. Lady recognises that this is not a fiscal event; there have been no fiscal announcements today, but I am absolutely certain that she will want to make a representation to me ahead of the Budget in the autumn.

[Giles Watling (Clacton) (Con)]

I thank the Chancellor for his very spring-like statement, and it is good to hear that there is light at the end of the tunnel. What plans does he have to support our vital £90 billion creative industries sector, which is growing in my constituency of Clacton?

[Mr Hammond]

Creative industries is an increasingly important part of the UK economy, and one in which we have a significant comparative advantage, and the best way the Government can support the creative industries, apart from the obvious one of training and skilling, is through supporting the roll-out of digital technologies on which so many of the creative industries these days depend.

Oral Answers to Questions

Giles Watling Excerpts

Tuesday 27th February 2018 Commons Chamber

[Priti Patel (Witham) (Con)]

7. What plans the Government have to invest in major infrastructure during the 2017 Parliament.

[Giles Watling (Clacton) (Con)]

8. What plans the Government have to invest in major infrastructure during the 2017 Parliament.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

As my hon. Friend the Exchequer Secretary to the Treasury has just told the House, there has been more than £0.25 trillion of public and private investment in infrastructure since 2010. We continued to invest in infrastructure in the autumn Budget 2017 by expanding the national productivity investment fund, so that it will now provide £31 billion of additional investment, including more than doubling the housing infrastructure fund to £5 billion. The Institute for Fiscal Studies said after the Budget that our plans will see public investment increase to levels not sustained in 40 years.

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[Mr Hammond]

My right hon. Friend is a great champion of infrastructure in Essex, and I share her wish to create a more dependable railway with an increased focus on punctuality and reliability, which is why the Government are pursuing the biggest rail investment programme since Victorian times. Under the Greater Anglia franchise, there is a commitment to deliver more services and faster journey times, including two “Norwich in 90” trains each way a day from May 2019. The great eastern main line proposals are currently at an early stage of development, but we will carefully consider the case she has made for the passing loop.

[Giles Watling]

Will the Chancellor update the House on the steps being taken to ensure the Government’s ambitious plans for housing are supported by local infrastructure investment, such as through the housing infrastructure fund?

[Mr Hammond]

My hon. Friend is right to observe that we cannot build the homes this country needs without infrastructure. Often, the push-back from local communities against the idea of accommodating greater numbers of homes is caused by the fear that infrastructure will not keep pace. The autumn Budget 2017 more than doubled the housing infrastructure fund, taking it to a total of £5 billion. On 1 February 2018, we announced the first £866 million of investment from that fund to support 133 projects, which will unlock infrastructure for up to 200,000 new homes.

Taxation: Beer and Pubs

Giles Watling Excerpts

Tuesday 31st October 2017 Westminster Hall

[Mike Wood]

My hon. Friend goes right to the heart of this issue. Friends are made and communities come together in pubs. Research at Oxford University by Professor Robin Dunbar concluded that pubs play exactly that kind of vital role in tackling social isolation and contributing to wellbeing. People with a local are likely to be better off financially, physically and socially. They are likely to have a wider circle of friends. In a week when researchers have shown again the clear link between strength of social networks and resilience to conditions such as dementia, the social value to which my hon. Friend refers could not be more important.

People who drink in moderation in a pub are more likely to be healthier and register higher levels of happiness than people who do not drink at all. They are also likely to be better fed, with almost 1 billion pub meals sold annually.

We should not forget that pubs play a key role in tourism, being one of the attractions that tourists most want to visit when they are in the UK. Last year there were 600 million day visits to pubs by tourists, and more than half of all holiday visits to Britain included at least one visit to a pub.

[Giles Watling (Clacton) (Con)]

Does my hon. Friend agree that it is a terrible shame that we lost some 10,000 pubs between 2003 and 2013, ripping the hearts out of many of our villages and communities? Does he also agree that pubs represent part of our British way of life that other people come here to see?

[Mike Wood]

Absolutely. That is as true in our towns as it is in our villages. About 80% of pubs are community or rural pubs. They bring not just jobs, but a community focus, often in areas of the country where other traditional providers of jobs and community coming-togetherness might have been lost.

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[Jim Shannon]

No one in the Chamber today would disagree with that.

The Government rightly tried to incentivise the production of lower strength beers, up to 2.8% ABV, in order to encourage moderate drinking. Unfortunately, because of the taste of 2.8% beer, that has not stimulated the relevant part of the market. Current HMRC duty receipts show that those lower strength beers make up only 0.15% of total UK volumes. However, the industry has provided concrete evidence that the consumer will drink lower strength beers at 3.5% ABV, which is still significantly below the UK average strength. Legal advice has also been provided, which shows that the Treasury can indeed add another duty band between 2.8% and 3.5%, which would enable the Government to incentivise the production and consumption of lower strength products, in the interests of moderation. There no excuse for that change not to happen now; the current advice is compliant with the EU structures directive, but the Government have so far chosen not to act, or to ignore it. We should not be prevented by the EU, when we are trying to bring in a progressive policy that would benefit the UK.

The contribution of the hospitality industry in Northern Ireland in wages alone is £653.4 million. Tourism in Northern Ireland provides 58,000 jobs; the wider tourism economy contributes £1.6 billion to Northern Ireland’s GDP; and food and drink account for more than 30% of visitor spending. Those are significant figures, on which we can build.

[Giles Watling]

Tourism is vital to my constituency, but does the hon. Gentleman agree that the issue is also communities, and talking to each other? It is a question of talking to each other eye to eye and having a proper discourse—maybe, God forbid, about politics—instead of being on Facebook and Twitter.

[Jim Shannon]

Yes, I do hold with that. We all agree—it is very much a part of what we are about.

In Northern Ireland we are happy that we offer world-class shopping, spa facilities, eateries that are second to none, scenic views, and the friendliness of the local populace, but there is a need for Government to keep us competitive. The Republic of Ireland has much lower tax, and we need to address that. The Northern Ireland Assembly has set a target for the number of tourism jobs to grow by an additional 8,000 by 2025. As the House will know, the Assembly is in some disarray at the moment—it is not functioning, so it may fall to us in this place to help the industry. One step would be reducing taxation, something I want to support by taking part in the debate.

Tourism is an export generator—the value was £545 million in 2015. There is no point in being able to get a hotel room for £67 per night if a meal will cost £100; we must address the issue, and take action on what is a false economy. Previous attempts to increase Government revenue through duty rises proved ineffective. As a result of the beer duty escalator, from 2008 to 2013 duty increased by more than 42%, but Government revenues increased by only 11.5%. During that time beer sales in pubs fell by 24%, total beer consumption fell by 16%, 75,000 jobs were lost and 3,700 pubs closed.

Conversely, the Centre for Economics and Business Research found that an additional 750 million pints were sold in 2013-14 as a result of the first cut in duty after the escalator was stopped. It is necessary to spend money to make money. We may believe that increasing tax will help bring income to depleted coffers, but it has been shown that that is not the case. People simply drink at home, as has been said—or in a friend’s home, where no one is watching the limits, counting how many drinks have been had, or considering how safe it is for them to be in control of a vehicle.

In my constituency there are 39 pubs and two breweries—670 jobs and £7 million in wages, with a £14 million contribution to GDP and £5.4 million in tax paid. The issue is about more than a couple of people complaining about the price of beer in their local; it has the potential to be a factor in increasing tourism and helping local businesses. I ask the Minister seriously to consider what is being proposed.