Oral Answers to Questions Debate
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Greg Hands
Main Page: Greg Hands (Conservative - Chelsea and Fulham)Department Debates - View all Greg Hands's debates with the Department for International Trade
(3 years ago)
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Kevin Hollinrake (Thirsk and Malton) (Con)
The Minister for Trade Policy (Greg Hands) [V]
Employing 17 million people and generating £2.3 trillion in turnover, small and medium-sized enterprises are vital to increasing UK trade. That is why we are continuing to seek SME chapters and SME-friendly provisions throughout all our free trade agreements. Outside the SME chapter, the wider benefits of the agreements—for example, reducing customs costs, supporting intellectual property rights, facilitating mutual recognition of professional qualifications and increasing regulatory transparency—will help to level the field between SMEs and large businesses.
Mr Speaker
Mr Hollinrake is not here, so we will go instead to the shadow Secretary of State.
Emily Thornberry (Islington South and Finsbury) (Lab)
Small and medium-sized farms across the country are rightly worried that this weekend’s agreement with Australia and the precedent it will set for future trade deals will not just undermine their business but destroy them. Last November, the Minister of State promised these farmers that the new trade and agriculture commission would mean that
“all the National Farmers Unions…will play an active role in assessing trade agreements going forward”—[Official Report, 17 November 2020; Vol. 684, c. 190.]—
and that as a consequence the farming industry’s interests would be “advanced and protected” by the TAC. Does he stand by those statements today?
Greg Hands [V]
I thank the right hon. Lady for those questions and I absolutely stand by that. We are involving NFUs from all four nations; I have met NFU Scotland’s Martin Kennedy twice in recent weeks. We are confident that the new trade and agriculture commission will be up and running in good time for it to conduct its statutory review of the Australia free trade agreement.
Emily Thornberry
I thank the Minister for that answer but the British farming industry knows the truth: the trade and agriculture commission it was promised to defend the interests of British farmers is not the one advertised by the Government this week, and my question to the Minister of State is simply this: why? What are the Government so scared of? If they are confident that their deal with Australia will benefit British farmers, not undermine them, why do they not have the courage of their convictions and establish the trade and agriculture commission on the basis that farmers were promised last November and let the voice of British farming deliver its verdict on the deal?
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.
Mr Philip Hollobone (Kettering) (Con)
The Minister for Trade Policy (Greg Hands) [V]
There will be opportunities for businesses across Buckinghamshire as part of the 2,600 businesses in the south-east that were already exporting goods to Australia last year. They are set to benefit from action on tariffs in areas such as cars, food and drink, and machinery, and there will be benefits in services, including digital, data and innovation provisions that will future-proof the FTA for businesses in Buckinghamshire and across the United Kingdom.
Rob Butler
Many happy returns, Mr Speaker. I thank the Minister for his answer. Buckinghamshire has more microbusinesses than any other county in the country, so now that we are a free sovereign trading nation once again, what help can my right hon. Friend give to those very small businesses that want to export to Australia but might not yet have the expertise and experience to do so?
Greg Hands
I am well aware of the situation in Buckinghamshire; my father set up a microbusiness in Buckinghamshire 40-odd years ago. I can tell my hon. Friend that our refreshed export strategy will raise the exporting culture of the UK, taking advantage of our new independent trade policy by providing SMEs and micro-businesses across Buckinghamshire with new opportunities to build their exporting capability in both goods and services, to enhance support, to strengthen one-to-many digital services and to improve access to finance.
Beth Winter (Cynon Valley) (Lab)
Sir Edward Leigh (Gainsborough) (Con)
The Minister for Trade Policy (Greg Hands) [V]
Following two days of intensive discussions during the visit of Dan Tehan, the Australian Minister for Trade, Tourism and Investment, on 22 and 23 April, both sides reached consensus on most elements of a comprehensive free trade agreement. The UK and Australia are now working to agree the outstanding elements, with the aim of reaching agreement in principle this month.
Sir Edward Leigh [V]
I am speaking from Lincolnshire, the bread basket of England. It is a prosperous county, but in the area of world free trade before the second world war, we could walk on derelict farms from Lincoln to Grimsby. Can the Minister assure me that this free trade deal with Australia, which I welcome, will ensure a bright future for our farmers, and that there will be no relaxation of our high-quality standards and no imports of mass-produced wheat that could undercut our farmers?
Greg Hands
My right hon. Friend is quite right to point to the brilliance of the Lincolnshire farmers and their industry in helping both to feed this country and to export. We have been absolutely clear that, when it comes to trade deals, there will be no compromise on our standards, food safety, animal welfare and the environment. I agree that there is an opportunity here for Lincolnshire to be exporting more. We have secured more access last week in the Norway, Iceland and Liechtenstein deal. We are looking forward to joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which has big opportunities for UK agriculture and future free trade agreements going forward.
Richard Thomson (Gordon) (SNP)
Amy Callaghan (East Dunbartonshire) (SNP)
The Minister for Trade Policy (Greg Hands) [V]
This is a deal for the whole Union. Our scoping assessment found that Scotland will benefit in all modelled scenarios. Reducing tariff barriers for our world-class food and drink industry should help bolster exports of iconic Scottish goods to Australia, such as Scotch whisky, apparel and services, such as financial services. Once we accede to CPTPP, Scottish farmers will also gain access to the increasing middle class in Asia.
Richard Thomson
Australia’s red meat industry has the goal of doubling its sales by 2030, which requires access to UK markets. That expansion can only come, despite what the Government say, at the expense of domestic producers and standards. What absolute minimum SPS, bio-security and welfare standards will the Government insist on in any Australian trade deal to safeguard producers and consumers, and to ensure that our farmers are not simply the next industry to be thrown beneath the wheels of the Brexit bus?
Greg Hands
I have met with NFU Scotland a few times in recent weeks. To be honest, it would be nice to hear the hon. Gentleman and his colleagues for once sticking up for agriculture in Scotland and the opportunities that come from trade, rather than being against every single trade agreement. Australia apparently exports a lot to Asia—75% of its beef exports, 70% of its lamb exports—and only 0.15% to the UK. There are strong reasons for that. The production costs, for beef in particular, are much higher in countries such as Japan and Korea than they are in either the UK or in Australia. Staged over time, tariff reductions and making sure that safeguards are in place, we are confident that we will have the ability to protect UK farmers from any unforeseen increases in Australian imports to this country.
Amy Callaghan [V]
I wish you a very happy birthday, Mr Speaker.
Currently, the UK does not have specific legislation to ban meat from animals raised by inhumane methods such as battery cages—methods that are utterly intolerable here but permitted and used extensively in Australia. The Department for International Trade has also never set out if or how it might inspect animal welfare and food standards in countries with which we may sign new post-Brexit trade deals. Does the Minister truly believe that the people of Scotland are prepared to see food on their supermarket shelves reared in appalling conditions, all for the additional 0.1% to 0.2% of GDP over 15 years as per his Department’s own assessment?
Greg Hands
I have never heard the SNP support any trade deal, ever. SNP Members even voted for a no-deal Brexit last December. The hon. Member mentioned standards. We have been absolutely clear that there will be no compromise on our standards. However, Australia, in its standards on animal welfare, is actually ranked five out of five by the World Organisation for Animal Health for its performance in veterinary services across 38 categories. The hon. Member talks about meeting our standards; our import standards remain high, and will be unchanged as a result of this or any other trade agreement. Australian produce—as, indeed, other produce—must continue to meet our high import standards.
Steve McCabe (Birmingham, Selly Oak) (Lab)
Dehenna Davison (Bishop Auckland) (Con)
The Minister for Trade Policy (Greg Hands) [V]
The Government are clear that any deal with Australia must work for UK farmers and producers. We will use a range of tools to defend British farming. As well as improving access to the Australian market, an FTA will act as a gateway to CPTPP, creating unheralded new export opportunities for British farmers and producers.
Dehenna Davison
Last summer, the Secretary of State visited Grange Hill farm in Bishop Auckland, where leading farmers John and Jane are rightly proud of the fabulous beef that they produce. Will my right hon. Friend please tell the House how the gateway to the CPTPP—a deal with Australia—will open up new markets for British beef farmers?
Greg Hands
I know that the Secretary of State greatly enjoyed her visit last year to the farms in my hon. Friend’s constituency. CPTPP is a great opportunity. I referenced in an earlier question growing Asian demand for products such as meat and other British agrifood products. We see there being tremendous opportunities in that fast-growing market—13% of global GDP across four continents. This is a real opportunity to be able to sell British farming produce to those fast-growing Asian and American markets.
Joanna Cherry (Edinburgh South West) (SNP)