Australia and New Zealand Trade Deals

Debate between Greg Hands and Margaret Ferrier

Monday 14th November 2022 Commons Chamber

[Greg Hands]

My hon. Friend is an expert on the connections between the United Kingdom and the continent of Australasia. He makes a good point about restoring trading connections that existed prior to this country’s membership of the European Union. We should treat these two trade deals as an opportunity not a threat, which is a point he makes well.

These deals are a key part of our Indo-Pacific tilt. The Indo-Pacific region matters to the UK, as it is critical to our economy, our security and our global ambition to support open societies. Rapid economic growth in the Indo-Pacific region is shifting the world’s centre of economic gravity eastwards. In the first two decades of this century, the Indo-Pacific region accounted for 50% of global economic growth in real terms; by 2050 that is expected to be 56%. The Indo-Pacific is home to half the world’s people, and there are significant economic opportunities for the UK in trading with the region. These deals are just the start.

These two agreements are a significant step towards our accession to the CPTPP, membership of which will further open up 11 Pacific markets across four continents worth £9 trillion of GDP in 2021. Joining the CPTPP will put the UK at the heart of a dynamic group of growing nations. We negotiate deals that are tailored to the UK’s strengths, such as our world-class service industries that employ 82% of our workforce and account for 80% of our economy. These deals will unlock new markets, create jobs and drive the growth that the UK, like many other countries, needs right now. They will provide real outcomes for real businesses.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

What does the Minister make of the International Trade Committee’s finding that more export opportunities and greater safeguards for the food industry could have been negotiated? How are the Government implementing the lessons learned for future deals?

[Greg Hands]

I thank the International Trade Committee for its various reports on both deals, and I look forward to engaging with its Chair, the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil), and indeed the whole Committee.

It can be said of any negotiated deal that something might have been better, as that is an inevitable consequence of negotiation. There is a bit of give and take. The safeguards for UK agriculture build in a very considerable length of time, of 15 or, in some cases, 20 years, for people to adjust. I contrast that with the European Union deal—the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) voted to have no deal with the European Union—which gave instant access.

Today, I will explain to the House how these important deals will help firms in every part of the country to flourish and grow. First, these agreements will remove 100% of tariffs on all goods, most of which will come into effect as soon as the agreements are in force—that is particularly with reference to UK exports. They will reduce red tape on British goods sold to Australian and New Zealand markets, making our exports even more competitive. Our automotive sector is among the many UK industries that will reap the rewards. For example, McLaren says that these tariff reductions

“will support and facilitate customer and network growth across Australia in the coming years.”

Nissan says that removing the 5% duty on car exports will help further exports to Australian customers of the Leaf, Qashqai and Juke cars it makes at its Sunderland plant. The removal of tariffs of up to 10% on car parts and on some vehicles sold to New Zealand is good news for other vehicle manufacturers across the UK.

A range of other industries will also benefit. For example, Nairn’s, the Edinburgh-based oatcake manufacturer, says savings from removing 5% tariffs under our New Zealand deal will help offset the increased costs that have affected businesses following covid-19 and Russia’s invasion of Ukraine. The Food and Drink Federation believes the removal of a range of tariffs will help to give UK businesses significant growth opportunities and make them more competitive in the New Zealand market.

UK investors will benefit from more access than ever before to opportunities in Australia and New Zealand, with guaranteed rights to invest across the economy. We are maximising opportunities for British companies to invest and grow their businesses in Australia. It will be easier for UK businesses to expand into both Australia and New Zealand, because we have increased the screening thresholds in both deals, meaning that fewer UK investments will be subject to review.

We also secured outcomes that encourage further inward investment into the nations and regions across the UK. In 2020, the UK was the second most popular destination for Australian foreign direct investment, and Australia is a big global investor. In 2019, there were more than 2,000 Australian-owned local business units in the UK, employing more than 71,000 people, and in 2020 we were the fourth largest destination for foreign direct investment from New Zealand.

Our Australia and New Zealand trade deals will also give our service industries a competitive edge on data and digital. Some 80% of our economy is in services. Scotland’s financial services industry and engineering services firms in the west midlands will benefit, and new opportunities will be provided for Welsh fintech firms in Cardiff. Our Australia deal allows professionals in areas such as engineering, accountancy and architecture to get visas to work. The law firm Herbert Smith Freehills says that these measures will make it easier for its staff to work across the UK and Australia. We also have access to the £10 billion Government procurement market in Australia, putting our firms on an equal footing with Australian firms. Just last month, I visited Informed Solutions, which is headquartered in Altrincham, and its management told me how much they were looking forward to the ratification of the upcoming free trade agreements to assist their business as well.

We have world-leading digital chapters, opportunities in cyber-security trade and so on. We also have a small and medium-sized enterprises chapter, which is very important for helping these companies navigate a free trade agreement. My Department is working hard at spelling out our many advantages, to businesses large and small. The national chairman of the Federation of Small Businesses, Mike Cherry, has said that our trade deal with Australia was great news for many of its members, as the small business chapter will ensure that the needs of smaller businesses are fully catered for in the years to come. My right hon. Friend the Secretary of State for International Trade often likens trade agreements to new motorways: they are at their most useful when they are well used by cars. That is why my team is meeting companies around the country to explain how they can make full use of our deals. Of course, businesses that want to trade with Australia and New Zealand and need more personalised help can turn to our network of trade advisers.

I have reflected on the many economic advantages offered by our free trade agreements, but these deals are not just about commerce. They are also about creating deeper international partnerships that will benefit both our citizens and the wider world, as well as our wider strategic objectives.

Oral Answers to Questions

Debate between Greg Hands and Margaret Ferrier

Thursday 3rd November 2022 Commons Chamber

[Greg Hands]

I welcome my right hon. Friend’s interest, and he rightly represents the key agricultural interests in his Hampshire constituency. CPTPP removes tariffs from 99.9% of British goods. We frequently say in this House that Australia and New Zealand are principally motivated by fast-growing markets in Asia when selling their agricultural produce. This country wants a piece of that action. Our ability to sell British lamb into the far east will be key for us, and DIT is engaging on that through CPTPP.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

What recent assessment have Ministers made of the trends in services trade with the EU? What steps are the Government taking to increase that trade?

Net Zero Strategy: High Court Ruling

Debate between Greg Hands and Margaret Ferrier

Thursday 21st July 2022 Commons Chamber

[Greg Hands]

I always welcome questions from Northern Ireland. In my previous job at the Department for International Trade, I enjoyed greatly my interactions with the Ulster Farmers Union, with the hon. Gentleman, and with colleagues on behalf of agriculture in Northern Ireland. It is an important sector for the whole country. We are making sure that Northern Irish agriculture can access markets around the world. I would be delighted to pass on his comments to the Department for Environment, Food and Rural Affairs, though obviously agriculture is devolved to Northern Ireland. On trade in particular, we will make sure that Ulster farmers can access markets.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

Calculations have been made to quantify the emissions cuts that will result from the policies in the Government’s strategy. The cuts do not add up to the reductions required to meet the sixth carbon budget; there is a 5% shortfall. That is equal to 75 million tonnes of CO₂, which is nearly the total amount of emissions in a year from car travel in the UK. What measures will be implemented to ensure that in future, calculations as crucial as these are informed by those with expertise, and are checked thoroughly before they are relied on in national policy?

[Greg Hands]

To put this in context, what the hon. Lady describes as a 5% shortfall is not, if I read the judgment correctly, a doubt that the Government can reach the target; it is simply a criticism of why we had laid out only 95%, rather than 100%, of the measures that are needed. I remind her that we are talking about carbon budget 6, which is for the years 2033 to 2037. There is a reasonable case—it was made by the Government in court—for saying that it is commendable that they could outline 95% of the journey that we are intending to make in 11 years’ time.

Shale Gas Production

Debate between Greg Hands and Margaret Ferrier

Tuesday 15th March 2022 Commons Chamber

[Greg Hands]

We do invest in biofuels. My hon. Friend had a very good and productive visit, and I thank everybody in York who received him. We do invest, and we make sure that this is part of our diversified energy mix. Diversification is absolutely key in the space of energy, as other countries have perhaps learned to their cost.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

We cannot allow the current crisis to be used as an excuse to greenlight fracking, and, as the Minister said, any potential benefits to prices would not even be seen for years to come. The Government should be focusing on identifying other solutions such as investment in wind or solar power, or using new agricultural policy schemes in the UK to increase nitrogen use efficiency to reduce the waste of artificial nitrogen fertiliser. What alternative projects is the Minister considering?

[Greg Hands]

I thank the hon. Lady for that question. On hydrogen, I can confirm that one project pretty near to her constituency—the Whitelee wind farm just south of Glasgow, which I went to in November—is looking at how wind power, in this case onshore wind power, can be converted into hydrogen, with £9.8 million of UK Government support. That will drive buses and dustcarts in Glasgow city for many decades to come. It is exactly that sort of innovative project that the UK Government are backing.

Oral Answers to Questions

Debate between Greg Hands and Margaret Ferrier

Tuesday 22nd February 2022 Commons Chamber

[Greg Hands]

My hon. Friend is the MP for Springfields, as you rightly point out, Mr Speaker, and is a passionate backer of our nuclear industry. New nuclear is crucial to our plans for a low-cost, low-carbon resilient electricity system. On fracking, the Government’s position is unchanged: fracking will not be allowed to proceed in England unless compelling new evidence is provided that addresses concerns about the prediction and management of induced seismicity.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

The Nuclear Decommissioning Authority has rejected proposals aimed at increasing transparency and accountability. There is wide disparity from plant to plant in engagement with local communities on concerns about safety issues such as breakdowns. What does the Minister make of the NDA’s rejection of increased transparency? What steps is his Department taking to reassure communities?

[Greg Hands]

I am not aware of any rejection by the NDA of increased transparency. I am happy to look at what the hon. Lady has to say; my experience from quite a few meetings with the NDA is that transparency is very good, but I am happy to engage with her if she has a specific concern in relation to transparency in any nuclear plant in or near her constituency.

Oral Answers to Questions

Debate between Greg Hands and Margaret Ferrier

Tuesday 21st September 2021 Commons Chamber

[Greg Hands]

There are robust processes in place for bringing forward new grid upgrades to meet demand. Smart electric vehicle charging and other smart technologies of course reduce the need for new infrastructure, and the recent smart systems and flexibility plan sets out the actions the Government will take in an area in which I know my hon. Friend takes an ongoing interest.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

UK steel producers face dramatically higher electricity costs than our European competitors. How can the sector attract the investment needed to decarbonise when it faces a £50 million a year barrier to investment?

Continuity Trade Agreements: Parliamentary Scrutiny

Debate between Greg Hands and Margaret Ferrier

Tuesday 17th November 2020 Commons Chamber

[Greg Hands]

I can, and can I just say what a brilliant voice for Burnley my hon. Friend has been in this House over the last 11 months? I can confirm that we are working very hard indeed on the remaining continuity agreements, but let us also recognise how far we have come in the agreements that we have already got.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind) [V]]

Scrambling at the last minute has been a feature throughout the Brexit process, and the UK Government’s approach to trade agreements is no exception. The Minister’s predecessor used to say that the EU trade deal would be the “easiest in human history”, yet that is now a race against time too. Will the Minister launch a full review of the timeline and negotiating strategy for future trade arrangements, so that they are not blighted by the serial incompetence that we have seen over the last four years?

[Greg Hands]

I think the hon. Lady asked about scrambling at the last minute, but we have done deals with 52 countries that account for £142 billion of bilateral trade. That is a huge amount: 74% of the value of those non-EU countries’ trade before the start of this process. We look forward to further continuity agreements in the coming weeks.

Oral Answers to Questions

Debate between Greg Hands and Margaret Ferrier

Tuesday 1st December 2015 Commons Chamber

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

What recent assessment has the Chancellor made of the performance of the UK Guarantees scheme? When it was launched, the Treasury said in a press release that it would

“dramatically accelerate major infrastructure investment”.

The only thing that has dramatically accelerated since then is the national debt under a Tory Chancellor who has missed every target that he set himself. Will he please acknowledge at least one of his failures?

[Greg Hands]

The UK Guarantees scheme has already been approved for eight projects, including the Mersey Gateway bridge, the northern line extension, and Hinkley Point C nuclear power station. It has not always been necessary, and a further 18 projects worth almost £9 billion have been supported without the need for a guarantee.