United Kingdom Internal Market Bill

James Davies Excerpts

Tuesday 22nd September 2020 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Just a gentle reminder that because we are in Committee, it is usually customary to call me “Chair” rather than “Deputy Speaker”. I know that it is difficult to follow, because we said this at the beginning and people are in and out of the Chamber, but that is just a reminder.

[Dr James Davies (Vale of Clwyd) (Con)]

Thank you, Dame Rosie. It is my pleasure to follow the hon. Member for Warwick and Leamington (Matt Western).

I wish to briefly speak in support of the Bill, and in particular, on the significance of clause 54 and the importance of rejecting amendments that seek to limit the territorial extent of the Bill. Since the Acts of Union of 1706 and 1707, the UK internal market has been a source of unhindered and open trade across the United Kingdom. Beyond the end of the transition period on 1 January 2021, divergence on policy on goods and services in the four constituent parts of the UK raises the threat that this seamless trade would come to an end, increasing costs and burdens for businesses and posing a sad state of affairs for the Union. It is common sense that we need to avoid this scenario.

As chair of the all-party group on Mersey Dee North Wales, I know how important the UK internal market is to businesses throughout the region, where 12 million daily cross-border commutes take place annually. In fact, a 2018 Welsh Government policy briefing noted:

“In the case of the UK internal market the economy in Wales is deeply embedded within the wider UK economy.”

It went on to say:

“Close proximity means natural transport routes and lower transport costs, shared institutional and business contexts, and cultural and historical ties”.

Parts 1 to 3 of the Bill propose a commitment to market access. This will guarantee that UK companies can trade unhindered in every part of the United Kingdom, ensuring the continued prosperity and wellbeing of people across the land. Qioptiq, a manufacturer of optical instruments, which has a base in my constituency, says:

“With the current economic uncertainty driven by the global pandemic, it is important for industry to be able to continue with a consistent approach to trade across all of the UK. Legislative stability and consistency, without additional barriers, are keys to success.”

Wales sells three times more to the rest of the UK than it does to the whole of the rest of the world combined. UK supply chains are also highly integrated. Data shows that almost three times as many intermediate inputs used by businesses in Wales come from other parts of the UK as from every trade market combined, and modelling shows that Wales would suffer a GDP loss five times higher than the UK as a whole from any reduction in internal trade due to unmitigated differences in regulation.

The clauses under consideration today are vital to provide certainty for businesses and ensure that we retain the status quo of no barriers to the movement of goods and services in all parts of the United Kingdom, so that companies can focus on their recovery and plan to invest and create jobs.