European Union (Withdrawal) Bill

John Baron Excerpts

Committee: 8th sitting: House of Commons
Wednesday 20th December 2017 Commons Chamber

[Mr John Baron (Basildon and Billericay) (Con)]

Will the hon. Lady give way?

[Mrs Moon]

No, I am going to carry on, because others need to get in.

Turning to the steel sector, I found what I already knew: Wales employs 5,000 people in the steel industry, and the knock-on effect on the steel industry in Port Talbot, Neath, Swansea, Ogmore and Bridgend will be devastating if those jobs are affected in the slightest. I did not waste my time going through all the Government nonsense again; I went straight to the sectoral views. The view of the steel sector was very blunt, just like the people who work in it, and I like that. It stated that policies and practices should remain as closely aligned to the EU as possible. Have I heard the Government promise that at any time during these debates? No.

The sectoral view asked that we retain the UK’s existing trade relationship through the EU’s free trade agreement and similar preferential trading agreements. I have seen no promise of that either. It said that this should be a priority over the negotiating of a new free trade agreement. It also said that if we are to minimise the disruption that Brexit will entail, it will be vital that UK trade policies and practices remain as closely aligned to the EU as possible. The sector would not be happy to learn about the bonfire of the vanities proposed under the Henry VIII clauses in the Bill. My local employers and workforce need to know in advance of our exit that the Government have taken into account the economic and financial impact on their lives, their jobs and the future of their children before modifying or abolishing anything.

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[Mr Baron]

Before the hon. Gentleman whips himself up into too much of a state of pessimism, may I gently remind him that inward investment is at a record high? If anything, it has picked up recently. In addition, because the EU has no free trade deals with big trading partners such as the US, China, Australia and New Zealand, and neither do we. That has not prevented trade from being conducted handsomely; if anything, our surpluses are with those countries rather than with the EU.

[Mr Leslie]

I will come to the US situation in a moment. I have to tell the hon. Gentleman that the inward investment figures are massively inflated because of mergers and acquisitions data. When we consider the buy-outs of some of the large technology companies—[Interruption.] Well, I do not believe that the hon. Gentleman should necessarily interpret the stripping out of British ownership of such companies as a great British success. If he digs beneath the statistics, he might see a slightly different picture.

Our mythology about the UK’s potential to strike a great and bountiful set of trade deals if we could only rid ourselves of the shackles of the customs union is becoming a bit of a joke across the British economy.

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[Mr Leslie]

Absolutely. My hon. Friend makes his point well. The idea is that we should turn a blind eye to the trading arrangements we have with our nearest neighbours—50% of our markets—in pursuit, as an alternative or substitute, of some deal with far-flung countries a lot further away, but Australia accounts for 2% or 3% of our current trade and a deal with Australia will not offset many of these problems. It is not just the 50% that we have directly with our nearest neighbours. All those free trade agreements that the European Union has worked up and signed, to which we have been a party, over the past 40 years add up to a further 14% of our trade. So going on for two thirds of our trade is tied into the customs union process—36 bilateral free trade agreements with 63 different countries. How shall we ensure that they continue the day after we exit?

[Mr Baron]

rose—

[Mr Leslie]

I will not give way; other Members want to speak.

The Secretary of State for International Trade and President of the Board of Trade has said, “These can be grandfathered; they can be cut and pasted and we will just sort all those out,” and junior Ministers at the Department for International Trade have said in the past, “Those countries have all agreed to roll them over.” That is not the case. Maybe a bit of dialogue has begun, but those other countries might want to take the opportunity to reopen some of those long-standing agreements—who knows? The Minister will give us the answers when he winds up the debate.

[Mr Baron]

rose—

[Mr Leslie]

I want to conclude my remarks because others want to speak. I simply want to make a final point about why the customs union is such a crucial issue, and why I urge my hon. Friends on the Front Bench and hon. Members across the House to think about the consequences of not staying in the customs union.

If this country ends up with hard borders again, there will be big consequences. Our ports could grind to a halt. Lorries will clog up our motorways, with, potentially, vast lorry parks near the ports. The expensive, wasteful spending on bureaucratic checks will hurt our industries, and we ought to be evaluating the economic impact of industries, potentially, gradually relocating elsewhere because it is easier to do business in a different jurisdiction. Think of the jobs lost, particularly in the manufacturing sector, if we get this wrong. Bear in mind that we will not have any say on what happens on the EU side of the border after this whole process. There is no guarantee about what happens at the other end of the channel tunnel or in Calais.

The reason I have pushed new clause 13 as I have, is to do with the austerity that we risk in this country for the next decade—a decade of Brexit austerity that will potentially befall many of our constituents because of the lost revenues. Unless we stay in the single market and the customs union, we will have that austerity on our conscience, and I urge hon. Members, especially all my hon. Friends, to think very seriously. We have to make sure we stay in the customs union.

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[Mr Baker]

I am grateful to my hon. Friend. My hon. and learned Friend the Solicitor General and I look forward to working with him on this issue.

In conclusion, Sir David—

[Mr Baron]

Will the Minister give way?

[Mr Baker]

I will give way one last time.

[Mr Baron]

May I briefly take the Minister back to amendments 381 and 400? I thank him for his kind words about amendment 400, and for his work on the Bill. He will know that I did not put my name to amendment 381, but I will support amendment 400 so long as that power will be used only in extremis and for the shortest possible time. We have had an assurance on that from the Prime Minister at the Dispatch Box today, and I know that those on the Government Front Bench have taken that on board, but if there is any dissension on this, it would be nice to know about it now.

[Mr Baker]

Perhaps my hon. Friend was not in the Chamber when I gave my assurance on this earlier. I am happy to repeat it. I can assure the House that we would use this power only in exceptional circumstances to extend the deadline for the shortest period possible, and that we cannot envisage the date being brought forward. I think that my right hon. Friend the Prime Minister explained that earlier.