Leaving the EU

Iain Duncan Smith Excerpts

Tuesday 24th October 2017 Commons Chamber

[Charlie Elphicke]

A deal is in everyone’s interests, and that is what we hope to get. The British internal market is the best deal for all the country, including the people of Scotland.

[Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I congratulate my hon. Friend on securing this debate. With all this talk about the Government speaking with different voices, let me remind the House that Germany does not have a Government yet, Spain is in total chaos, the Netherlands has only just managed to get a Government and Mr Juncker seems to spend an awful lot of time in bars getting 28 pints of beer and not being able to figure out who is with him. Also, they are all now giving out separate messages about what their future relationship with the UK would be. Does that sound like speaking with one voice?

[Charlie Elphicke]

As ever, my right hon. Friend makes a powerful point.

My third point is that this would be no-regrets spending. We should have made this investment long ago. Our customs systems are creaking, our border systems are ageing and our roads are not resilient. In other words, this is investment that we ought to make anyway. There are strong reasons for us to invest now to have world-class systems. Singapore manages customs clearances in seconds, and Australia has cutting-edge border controls. We could have systems like that—systems that keep murderers out of the country and ensure that we can track down visa overstayers swiftly and help them home—yet it takes years to build the simplest road, and our airports and ports suffer from long-term underinvestment. This has cost our economy billions of pounds already.

Being ready on day one is not simply about Brexit; it is in the national interest to ensure that we have fast, efficient networks that will help to drive our economy forward. It is not just my own constituency of Dover that is affected. Gridlock at Dover will mean gridlock for the British economy. The midlands engine will conk out if it cannot get vital components, and the northern powerhouse will cease to whirr if it cannot get parts on time. Tailbacks are not new on the roads to the channel ports, and this underlines why we should be committing to this spending, irrespective of a no-deal scenario. A no-deal scenario without planning could also cause delays, damaging the economy and preventing Britain from taking advantage of Brexit’s opportunities. Even if a deal is struck, Britain will be hampered if we do not have world-class infrastructure. That is why we ought to be investing in it now. In order to enable the greatest opportunities of Brexit to be grasped, we must start preparing for a no-deal scenario right away. This would be responsible, no-regrets spending.

I have a response to the naysayers who say that it would be wrong to invest now. I say that it would be wrong to wait until the last moment, and that it is in the national interest that we invest now. At least £1 billion should be allocated in the November Budget to invest in upgrading our systems and infrastructure so that we will be ready on day one to forge ahead on day two. Will the Minister tell the House what discussions are happening on this, and whether such investment might be forthcoming? Some will say that however ready we are, those across the English channel will not be ready and that we should therefore not even bother. They say that we should simply run up the white flag. Can the Minister confirm that ports on the other side of the channel will be required to upgrade their systems in line with the World Trade Organisation global trade facilitation agreement that came into force last February? That agreement was warmly welcomed by the European Union. Can he also confirm that article 7 of that agreement makes detailed provision for fast customs clearances, electronic payment systems and trusted trader regimes? Does he agree that if we start preparing now, there will be no need for queues of lorries on either side of the channel? Will Britain take the case to Geneva and start insisting that EU member states spend money now to facilitate trade in a non-discriminatory way, as required under the WTO trade facilitation agreement?

There are those who say that our systems cannot possibly be ready in time, and that our systems of administration and Government organisation simply cannot cope with all this. Those are not people who believe in Britain. Nor are they people who have studied our history. The history of our island story is that when there is a need, there is no obstacle that we cannot overcome and no challenge that we cannot meet. That is true. Sometimes we are a bit late to the party and a bit late to realise the pressing issues facing our nation, but we always get there in the end. Our history books are clear on that. We can do this, and we must do it to deliver the greatest opportunities to our future generations by seeking a global future.

--- Later in debate ---

[Mr Baker]

Yes, and we are seeking a deal that works for all parts of the United Kingdom.

We are conducting a wide range of analysis of not only our strengths and interests, but those of our negotiating partners. We will continue that analysis, and it will continue to inform our negotiating position.

Our plans have been carefully developed to provide the flexibility to respond to a range of negotiated outcomes and to prepare us for the unlikely eventuality of not securing a deal. Some of our planning has already become evident, and more planning will become public over the coming months.

[Mr Duncan Smith]

Does my hon. Friend agree that we should not persist with the idea of a “deal or no deal” scenario? These are simple variations of a deal. The reality is that a free trade deal may or may not be secured, but there is a deal to be done under WTO rules that may, in a sense, subsequently include free trade, but not be a specialist free trade deal. Can we stop talking about no deal and start talking about a deal that the European Union will have to meet with the UK?

[Mr Baker]

I am grateful for the clarity with which my right hon. Friend makes his point, but I hope he will not mind if I say that, in the time available, I perhaps ought to leave that particular point for a debate on the negotiation, if such a thing were to arise.

In addition to the European Union (Withdrawal) Bill, which will ensure that we have a fully functioning statute book on the day we leave, the Government are already bringing forward other legislation as required. Our trade Bill will give the UK the foundation for an independent trade strategy. We will create a world-class international sanctions regime through the sanctions and anti-money laundering Bill. We will deliver an effective customs regime through the customs Bill. Our Nuclear Safeguards Bill will ensure that we can deliver a domestic nuclear safeguards regime. This legislation will support the future of the UK in a wide variety of outcomes, including one where we leave the EU without a negotiated outcome.

Alongside bringing forward necessary legislation, we will be procuring new systems and recruiting new staff when necessary to ensure that we deliver a smooth exit, regardless of the outcome of the negotiations. Secretaries of State have already begun to set out their plans to Parliament. For instance, in last week’s Transport questions, the Secretary of State for Transport explained that his priority was to seek

“new aviation arrangements—both with the EU and with those states where we currently rely on EU-negotiated arrangements for market access”.

He went on to say that he was seeing

“nothing but good will and constructive discussion between us and those countries in ensuring that there is no interruption in flying.”—[Official Report, 19 October 2017; Vol. 629, c. 976.]

We also understand that we need to prepare and deliver as a whole country. That is why we have been having positive and productive engagement with the devolved Administrations in Scotland, Wales and Northern Ireland, which is essential to our success as a country. We have been engaging with, and will continue to engage with, the devolved Administrations on issues where joint action is required across the UK to ensure that we are prepared for a smooth and orderly exit from the EU.