European Union (Withdrawal) Act

Jim Shannon Excerpts

Tuesday 4th December 2018 Commons Chamber

[Mr Paterson]

My hon. Friend, having been a Minister in the Department for Exiting the European Union, knows this subject in great detail and he is spot on. We cannot be in any customs territory like that because it is a breach of the promise to the people, and we will never do trade deals around the world. Sadly, the right hon. Member for Twickenham (Sir Vince Cable) is not in his place; it is pathetic to say that we cannot do trade deals with India, America and China, when we are the great international country and these people want to buy from us. We will not be able to do this if we are in some sort of customs territory.

[Jim Shannon (Strangford) (DUP)]

I congratulate the right hon. Gentleman on his remarks so far. Has he heard, as I have, various Government Ministers assuring Unionist MPs from Northern Ireland that we have nothing to worry about, even though they do not like the agreement themselves? In the Lobby this afternoon, the Secretary of State for Northern Ireland told us that she did not like what was put forward. When we put it to her that this could only be annulled by the Republic of Ireland, the EU and the UK together, she had no answer. The fact of the matter is that this is what it means; the backstop will be there forever.

[Mr Paterson]

The hon. Gentleman is absolutely right. There is no way out of the backstop. As we heard from the Attorney General yesterday, whether we support this is ultimately a political decision because we do not get out unless the European Union agrees, and it is not going to let us go while we are stumping up the cash, nor while it has us trapped in an arrangement whereby it can impose law on us that is perfidious and can damage our economy but benefits the EU, which has a £100 billion surplus with us.

Before we get off the question of the economy, let me say that so many Members who have spoken this evening think that the EU is the most wondrous organisation and that the economy is booming in Europe. There is one continent in the world with a slower rate of growth: Antarctica. The European Commission says that 90% of world growth is going to be outside the EU, and that is where we want to be. But we have got hung up on the Northern Ireland border, where there is already a border that is handled with modern technology. The turnover—incredibly important locally—is tiny, at 4.9% of Northern Ireland’s sales. That is 0.2% of UK GDP and 1.6% of the Republic of Ireland’s exports north. This can all be done with modern techniques.

I have engaged with real-world experts at an organisation called CLECAT, which represents—[Interruption.] Opposition Members are laughing. I think that an organisation with a membership of 19,000 customs brokers and freight forwarders that handles 80% of customs transaction in Europe knows a lot more than the Labour Front Bench. CLECAT recommends very clearly that we should move on. We should recognise that borders are no longer inspection points, but tax points. Inspection happens before goods are shipped. Earlier, we heard about just-in-time delivery. One thousand trucks will turn up at the border tomorrow with car parts, and they have all been pre-cleared. Pre-clearance will carry on. The border inspection point in Rotterdam is 40 km from where the containers land. If that were the distance from Newry, we would be looking at somewhere well north of Lisburn, into the suburbs of Belfast. Looking at the most contentious products—food and agri-tech—landing in Rotterdam, there are 30,000 containers a year, and they are all inspected. They go to the border inspection post, some for less than a minute, and 97% or 98% of them whizz through. Of the remaining 2% or 3%, only 10% are physically opened up. People have this ludicrous idea of borders—that we have a man in a tricorn hat stopping the stagecoach with a ladle and testing the brandy. That does not happen. Goods are tested in advance. They are pre-cleared. We have modern systems like REX—the registered exporter system—on rules of origin. We have Transit, and records that are so accurate that I saw when I went to Larne that only two goats went through there in 2016. That is the sort of modern system that could work not just on the Northern Ireland border but at Dover-Calais.

We must vote against these ghastly proposals. This is absolutely appalling, and I am delighted that so many Members from across the House are going to vote against it. So what is the alternative? The answer is to go back to what President Tusk offered us on 7 March—a wide-ranging free trade deal that foundered on the issue of the Northern Ireland border. Using existing techniques and technologies within the existing customs code, we can resolve the problem of the border and go back and take up that offer. It was very clear at the meeting with Monsieur Barnier and his senior colleagues that that offer is still on the table.

The European Union will have to face the fact that if this proposal goes down, as I hope it will this time next week, we should go straight back and take up that offer. I am glad to see that the Secretary of State is here. He should go straight back and do that. We can solve the problem of our borders. We can immediately start negotiating for this wide-ranging free trade deal. Just to show that we are serious, he should also make it very clear that we are going to make preparations for what “Project Fear” calls no deal, which means World Trade Organisation terms. Those are the terms on which 164 countries conduct 98% of world trade. It is absolutely childish to describe this as “leaping off a cliff” and a “catastrophe”.

We should show that we are deadly serious because obviously we are not going to get the free trade deal done by March. If we have a short temporary period in which we have set up a genuine agreement with the European Union, then we can invoke article 24—which I am not sure many people have heard of—of the general agreement on tariffs and trade, which enables us to go on at the current rate of zero tariffs for a reasonable length of time, potentially up to 10 years, so we can carry on exactly as we are. Goods will carry on moving. We will prosper and grow at a tremendous rate, as has been proposed by various forecasters. That is the alternative and that is the way ahead.