European Union (Withdrawal Agreement) Bill
Debate between Hilary Benn and Matt WesternFriday 20th December 2019
(4 years, 4 months ago)
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Hilary Benn
My right hon. Friend makes an extremely powerful point. We have been told repeatedly that there will be no border in the Irish sea; there is now going to be a border in the Irish sea. That will have consequences for the way in which trade is conducted.
This Bill is also a gamble because of the clause that says that no Minister is able to apply for an extension. Quite why the Government need to legislate to prevent something from happening that they have already made clear they have no intention of allowing to happen—an extension to the transition period—escapes me, but I gently point out to the House that the point of no return will be next June. Under the withdrawal agreement, if a further extension has not been agreed between the parties by then—and the Government are ruling it out—there will be no possibility of extending the period. I say to the Government that they will need to be really, really confident about how the negotiations are going by June next year—not very far away—if they are to be certain that they will not need that additional time to get what they want.
There is no doubt that the Prime Minister is looking for a hard Brexit, because a free trade agreement of the type he has put before the British people—and for which, I grant him, he has won a mandate—has already been assessed by the Government as the second worst outcome for the economy after a no-deal Brexit. It is extraordinary that the House has still not been presented with an economic assessment of the single most important decision that we are going to take and the nature of the future relationship—nothing; silence. History will record that that was an act of irresponsibility.
I say to the House—in particular to new Members on both sides, whom I congratulate on their election—that, as these negotiations unfold, businesses that we represent will be coming to us; they will want issues to be raised in the negotiations and will be concerned about the outcome of the negotiations. Some of the things they are looking for will not be consistent with the policy that the Government have set out. This should not be about ideology; it is about the practical implications of having thrown away—because that is what Brexit does—the best trading relationship we have with any countries in the world. It is about what kind of new long-term arrangements will be put in place, on which our jobs, our factories and our communities depend. If the Government get it wrong, it will be a question not of getting Brexit done but of some industries being done over by Brexit.
Matt Western
My right hon. Friend is making such a powerful speech. Does he not agree that the great concern for this place has to be that it was promised that we would take back control? The greatest deceit of all is the fact that there will be no scrutiny in this place of any element of the trade deals and the impact they will have on our economy.
Hilary Benn
I agree with my hon. Friend: that is a matter of great regret.
I come to my final point. Our leaving the European Union will create great cheer on the Government Benches, just as it will sadden many of us on the Labour side. The divisions it has created will not easily be healed: many people still think that this is a terrible mistake that will weaken our economy and our influence in the world.
In the modern age, it is how we use our sovereignty that will determine how well we can advance our interests and protect our citizens. If we have learned anything from the events of recent times, it is that if we are to deal with the great challenges we face as a world—climate change, the movement of people around the globe, threats to peace and security, making sure that the global economy works in the interests of all—we can do it only by working together. We are about to walk away from one of the most important relationships that enables us to do that. I say to the Government that we will hold them to account as the process develops and unfolds.
Taxation (Cross-border Trade) Bill
Debate between Hilary Benn and Matt WesternMonday 16th July 2018
(5 years, 9 months ago)
Commons ChamberRead Full debate Taxation (Cross-border Trade) Act 2018 View all Taxation (Cross-border Trade) Act 2018 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 16 July 2018 - (16 Jul 2018)
Matt Western (Warwick and Leamington) (Lab)
I rise to speak to new clauses 1, 11 and 12, and very much in support of a customs union.
I was surprised by the way the former Secretary of State, the right hon. Member for Haltemprice and Howden (Mr Davis), described the border between Detroit and Ontario, which I was lucky enough to visit in February with fellow members of the International Trade Committee. I witnessed something slightly different from what he witnessed. I did see friction—even on a very cold, icy day, people spent considerable time at the border. There is an X-ray building for pantechnicons, and vehicles are frequently taken out of queues to be examined. The situation there is not as simple as he suggested. To underline that—perhaps he is not aware of this—Canada is having to invest in a second bridge across the river between Ontario and Detroit to safeguard its businesses because of the delays they suffer.
I agree with the right hon. and learned Member for Rushcliffe (Mr Clarke), for whom I have huge respect. He described the great fear associated with what seems to be the pursuit of ideological goals or indeed personal ambition on the part of certain individuals. Importantly, for almost a year I have been trying to encourage businesses—the likes of Jaguar Land Rover in my constituency and others—to speak out. Businesses are terrified of doing that because they fear incurring the wrath of the public. They see it not as their responsibility but as ours, as elected representatives. However, in recent weeks, they have felt it necessary to speak out, and of course we have heard from Airbus and Jaguar Land Rover. On the rare occasions they speak, they do so softly, but it is important that we and the public listen to them.
It is far more important for us to listen to the likes of Jaguar Land Rover and BMW-Mini than—dare I say it?—to the right hon. Member for Uxbridge and South Ruislip (Boris Johnson). I think the public are beginning to see that—and to recognise that, among all the debate that goes on in this place, those business voices are starting to provide some clarity.
Businesses have waited for more than two years for the Government to give them some sort of direction in the face of uncertainty, which is a threat to them. I was interested to hear the hon. Member for Harwich and North Essex (Sir Bernard Jenkin). I respect him and his experience, but disruption and uncertainty are the greatest concerns for businesses, which have been reviewing their options for the past 24 months. Irrespective of where we end up in the coming weeks, they are already making decisions and looking at options abroad for future investment.
Anything that makes life difficult for businesses—anything that adds cost and time—makes them review their options and consider what is in their best interest. In the automotive sector and many others, businesses would not be so obviously viable if they had to incur the cost of additional tariffs under WTO rules. They will review a 10% or 4.5% tariff, cost it in and think, “Is it really best for us to stay in the UK?”
Hilary Benn
My hon. Friend speaks with great experience on these matters. Does he agree that small businesses may not be able to accommodate the additional costs he mentions from tariffs, rules of origin—we discussed those earlier—and customs declarations, which may exceed the profits they make on the goods they sell? Small and medium-sized enterprises would be most adversely affected by a no deal situation, which some Government Members argue we should contemplate with equanimity.
Matt Western
My right hon. Friend is right that SMEs, particularly in the component supply chain, are the most vulnerable to these sorts of changes. They are the most likely either to lose business elsewhere or to have to move abroad. I can give concrete examples where that has already taken place.
The right hon. and learned Member for Rushcliffe described the apparent view that the customs union is some sort of problem holding us back. He is right that it has not held us back. The likes of Germany, which exports 10 times more to China than we do, are in the customs union, which has not been to their disadvantage. As he said, we have witnessed the most phenomenal explosion in the success of the automotive industry in this country over the past 10 years—after 20 years of relative stagnation, it grew by more than 50% in that period.
In summary, where it is rare for businesses to speak out, we should listen. They do not intervene lightly in politics, in this country or elsewhere. The preservation of a true customs union is critical to safeguarding business and investment in this country, and that is why I support new clauses 1, 11 and 12.