(1 year, 10 months ago)
Commons ChamberI appreciate the kind words that my hon. Friend said at the start of his intervention. He is right to highlight the success of the PE and sport premium funding, which is exactly why the Government have doubled that funding. We are considering the arrangements at the moment for the academic year 2023-24, and I hope that we will be making an announcement as soon as possible.
Does the Minister agree that a good way of promoting sport within the public sector and in public facilities is a joint use of facilities between schools and the wider community, so that, with the right maintenance and support staff, those facilities can be used at weekends and during the holidays?
My right hon. Friend is absolutely right. Our Departments are working on that; it is going well in some areas, but we need to see it improve right across the country so that those great facilities are available to as many people as possible.
(4 years, 6 months ago)
Commons ChamberYou do not need to pay to trade: I welcome the policy behind this legislation and the Bill itself, which makes it very clear that the United Kingdom wishes to be a positive trade partner with as many countries around the world as would like a free trade agreement with us. This Bill ensures that we can carry across the FTAs that the EU has with a range of countries that naturally fall to transit to us as well as to it. Many of us were told that we were wrong when we argued that during the referendum and afterwards, but the Government have proved us right in that of course those countries wish to roll over those agreements. In one or two cases, they wish to go considerably further than the agreements we already have. I welcome the Government’s positive response to that to see what more can be added so that we can have a better deal as we leave the European Union than we had when we were in it.
We must see the policy background to this Bill as including the most important letter written this week by our trade negotiator to Mr Barnier about the parallel negotiations for a possible UK-EU free trade agreement. It is an admirably lucid letter which makes it very clear that, just as in this Bill, we are not sacrificing our fish, offering special payments or agreeing to accept the laws of other countries in order to create a free trade agreement with them, and neither should we do so in the case of the European Union. We voted very clearly to leave the single market and to leave the customs union. Many of us who voted that way strongly believed then, and believe even more so today, that we want a free trade-based agreement with the European Union if that is also its wish, but we would rather trade with it under WTO rules and the excellent new tariff we have set out for external trade if it wishes instead to claim that we need to be some kind of surrogate member taking its laws, paying its bills and accepting many of its views on matters like our fish resources.
It is more likely that we will get a free trade agreement from a reluctant European Union just before the deadline at the end of the year if we have made great progress in negotiating free trade deals elsewhere. That is why the Government are absolutely right to respond very positively to the United States of America, to Japan, to Australia, to New Zealand and to the Trans-Pacific Partnership. In each of those cases, the counter-party is very willing. In each of those cases, there are precedents for good agreements between other parts of the world and those countries, and we can build on those and our own models for a positive free trade arrangement.
The EU will see how relatively easy it is to make such progress with those countries we have agreements with. When we were in the EU, the EU had not got round to having agreements with some of those countries—big countries such as the United States of America. When we are outside the EU, that will make the EU even keener to want to have a free trade agreement with us. Rather reluctantly, it will have to admit that it has been making a mistake over these past years in trying to make our exit so protracted and so difficult, and claiming that you do need to pay for trade.
I will vote for the Bill as vindication that, of course, many countries wish to trade with us on as free a basis as possible. I will vote for it as part of a much bigger package of a free trade loving United Kingdom driving a free trade agenda around the world. I will vote for it because it sends a clear message to the European Union that it is negotiating in the wrong way and running the danger of ending up without a free trade agreement that is rather more in its interests than ours, given the asymmetry of our trade.
Free trade is a good way to promote prosperity. It is even more vital now we need to recover our economies from the covid-19 crisis. I urge the EU to understand that and to co-operate sensibly, just as I give the Government full support to press ahead in negotiating deals with all those great countries and regions of the world that think Britain is a hugely important future partner, and where we see fast-growing trade that can enrich both sides.
(5 years, 1 month ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
As the hon. Gentleman knows, these tariffs relate to single malt whisky products. I can say to him that I have visited Bushmills many times and that I am a fan of Bushmills whiskey. The old inn at Bushmills is among the finest places to stay anywhere in the United Kingdom. His father and my grandfather shared something in common: they never drank at all. I did not follow my grandfather’s example. I am sure he followed his father’s.
As the UK Government are rightly considering lowering some tariffs on food and drink products once we leave the EU, what opportunity will there be to get some benefit or leverage out of that spontaneous reduction?
As my right hon. Friend knows, we are determined to take full advantage of the opportunities of leaving the European Union. We believe, as a Government and as a party, that low tariffs, preferably no tariffs, are mutually beneficial to us and to countries with whom we do business. Free trade creates jobs, prosperity and wealth. We have to continue to articulate that case, particularly to our friends in the United States who are normally free market in outlook and light touch in regulation, and who mirror our basic political philosophy. A trade war benefits nobody, not least those we are elected to serve.
(5 years, 8 months ago)
Commons ChamberWe got there just before Brexit, Mr Deputy Speaker.
The hon. Gentleman did not say very much about trade remedies, so there is very little to respond to. In fact, it is a great example of “If you haven’t got anything to say, don’t say anything”. The Government’s policy is quite clearly correct and is supported by what he calls producers but I call employers. I know it was a slip of the tongue and that he did not mean that his policy is to leave the UK—I am sure that is the policy of the SNP.
The hon. Gentleman says that I want a less regulated economy. Yes, of course I want a less regulated economy, but it is against the rules of the WTO to impose regulations and trade remedies where there is no UK production or where we do not meet the threshold. Is he actually suggesting that we maintain remedies where there is no UK business and industry to protect, to the detriment of our consumers who will pay higher prices without protecting anything in the UK itself?
The hon. Gentleman talks as though cheaper prices are somehow a bad thing. I would love to see an improvement in the disposable income of people across all income ranges. If we can do that by removing tariffs—which are effectively taxes—by procedures such as this, we should be willing to do so. In fact, this is one of the real advantages of our ability to leave the European Union—to set our own tariffs.
The hon. Gentleman asked about the Trade Bill. Report stage in the House of Lords will be on Monday 4 March. He does not seem to understand the consultation we have had. We have engaged widely with stakeholders. He said correctly that we have spoken to those who produce these products, but we have spoken to those who are involved further downstream and whose costs may be reduced by what we are doing. We have spoken to trade associations, in particular UK Steel and the British Ceramic Confederation. We have had bilaterals, roundtables and technical meetings. We have written to all MPs twice, which one would have thought covered a very wide range of consultation if MPs are doing what they should be doing in their constituencies.
On the European Union, if we go into an implementation period, all trade remedies will be rolled over and we will adopt any new European trade remedies during that period.
An excellent statement with a good balance: protecting our industries against dumping where needed, but giving our customers more choice and lower prices where we do not have an industrial interest. Will my right hon. Friend promise me that those same excellent principles will be applied when he sets out our full tariff schedule, where I hope, for example, we will have zero tariffs on imported components to give a really big boost to British industry?
(6 years, 4 months ago)
Commons ChamberI want to be able to understand whether this is a real problem. Can the hon. Gentleman give me a specific example of where he thinks the UK Government might assert a power that they should not assert, and how that might arise?
That is a reasonable question, and I will answer it properly. Clearly we cannot tell precisely where the problems will arise, because we do not yet know precisely what the UK Government might do. Having said that, the Bill gives back to Ministers discretionary powers over procurement. In Scotland, because of the actions taken there, 78% of publicly procured contracts go to small and medium-sized enterprises, 60% to Scottish SMEs. The UK Government figure is 20%. If that power is taken back, and if oversight is retained by Westminster, there would be a real risk that we could lose that economic diversity and that fantastic achievement in a real-life area. That is a real concern that I hope the right hon. Gentleman will share.
I shall turn briefly to the amendments. Amendments 25 and 26 seek to address an issue in the Bill that has a direct read-across to clauses in the European Union (Withdrawal) Act 2018 that confer powers on UK Ministers in devolved areas without any form of devolved consent. No amendments have been made to the Act to alter that approach or to require the consent of Scottish Ministers when UK Ministers make regulations in devolved areas. Amendments 25 and 26 seek to ensure that the UK Government seek consent from devolved Ministers before amending legislation in devolved areas.
Before I move on, I meant to say that I recognise that Government amendments 64 and 66, and consequential amendments 65 and 67, now require Scottish Ministers only to consult and not to seek consent in certain areas. However, the number of areas is limited, and the amendments do not address all the problems.
Amendment 27 requires the Secretary of State to consult Scottish Ministers before deciding whether, or for how long, to prolong the period during which implemented powers can be used. That is important because there is no equivalent provision in the European Union (Withdrawal) Act 2018, and because no amendment has been made to the existing provisions in the Trade Bill that allow the UK Government unilaterally to alter the powers of Scottish Ministers in relation to grandfathering trade arrangements for further periods of up to five years at a time.
At present, it is envisaged that the powers in the Trade Bill relating to the grandfathering of existing free trade arrangements with third countries would have to be used in only a very small number of cases that could not be dealt with under the European Union (Withdrawal) Act—for example, for reasons of timing. However, with so much uncertainty around the ease with which existing agreements will be rolled over, it is possible that this restriction could have a more significant impact, not least because many of the 24 areas likely to be subject to the clause 11 regulations—that is, the power grab—are highly relevant to the world of trading and trade deals. If left unamended, or amended only along similar lines to the amendments in the withdrawal Act, this provision in the Trade Bill would in effect allow the UK Government to change the law in devolved areas to allow for the implementation of these arrangements, which might not necessarily remain exactly as they are at present. In essence, that is close enough to having an ability to implement a new trade Bill with almost no consultation or consent at all. Our amendment 28 deals with that problem.
Amendment 29 is small and seeks a direct read across from the European Union (Withdrawal) Act 2018. It would replace the need for consent from UK Ministers in certain circumstances with the need only to consult. As I said, I note the Government amendments in that regard.
We are not arguing for vetoes for Scotland nor for any sense of Scottish exceptionalism; we are simply looking at the facts, understanding what is going on and what needs to happen. If Scottish Ministers are required to consult or seek consent when Scottish parliamentary responsibilities intersect with UK responsibilities, we are simply arguing that UK Ministers should be under the same obligation to consult or seek consent where UK policy responsibilities intersect with those of the devolved Administrations. It was said in the last debate that that happens with the Parliaments of Belgium, and it also happens with the Canadian provinces. The world does not collapse when proper respect and statutory weight is given to the rights and responsibilities of sub-state administrations. It is common sense. We are trying to improve the situation to make it work and to ensure that our voices and our national interests are protected and that the rights of the devolved Administrations are respected.
Time is short, and we do not want many votes on this group so as to allow time for the last group, particularly new clause 18, which needs to be properly debated, but I hope to press amendment 25 to a vote.
I will not speak for long because our Front-Bench spokesperson, my hon. Friend the Member for Dundee East (Stewart Hosie) has covered the issues well, but I want to talk briefly about why it is important that the Scottish Parliament, Scottish Ministers and the Scottish people in general should have more of a say in deals going forward than is proposed by the UK Government.
In recent times, the UK Government have not had responsibility for signing off and negotiating trade deals. They have not been the key player. Therefore, they have not been able to undertake some of the practices that we think they could undertake, so it is understandable that the Scottish people are worried given that we have been monumentally badly served by the UK Government over decades. Just look at the roll-out of universal credit, the bedroom tax, the rape clause and the passage of the European Union (Withdrawal) Act 2018—legislation that happened despite the Scottish Parliament refusing consent. All those things show the ways in which the UK Government are badly serving Scotland.
Until I was an MP, I genuinely thought that the UK Government were, at times, probably trying their best. When I got elected to this place, I discovered that when the UK Government propose legislation and we say to them, “Have you thought about how this will affect Scotland?” the answer is not that they are trying to do anything bad, it is just that they forget we exist. They just do not even consider the views of Scotland or the differences in Scotland. Look at how the common fisheries policy has been negotiated by the UK Government, for example. The way that the Government negotiated swaps removed quota rights from Scottish fishermen to the benefit of fishermen in the south of England. Such choices made by the UK Government have a direct negative impact on Scottish people. On that basis, it is understandable that we are worried that the UK Government will not take decisions in Scotland’s best interests because they may simply forget that we exist.
Does the hon. Lady understand that the common fisheries policy and international trade deals have been entirely in the power of the European Union? To the extent that they do not suit Scotland, it is the EU’s fault. Can she not see that power is coming back to the benefit of Scotland and the United Kingdom?
Does my hon. Friend understand that last year 21% of all the components needed for making cars under just-in-time principles came from outside the EU and passed our borders without friction or difficulty?
My right hon. Friend has just made the point that 79% of them do, and in business I was always taught the 80/20 rule, which I would advise him to apprise himself of.
As I was saying, the White Paper is very similar to the common rulebook, and that I think is appropriate. I will not dally too long on clause 9, but I think that the EEA-EFTA, as an institutional structure, is off the shelf, tested and something the EU is familiar with and which we could engage with. I accept, however, that the White Paper sets out a different direction, and I want to make sure we keep the White Paper and the plan negotiated and moving forwards.
What I really want to talk about tonight is new clause 18. I would contend, and I say to my Front Bench, that new clause 18 is exactly in line with their White Paper. It says that,
“it shall be the objective of Her Majesty’s Government to achieve the implementation of an international agreement to enable the United Kingdom to establish a frictionless free trade area for goods between the UK and the EU.”
That is absolutely in line with the White Paper. What causes the Government and others in the House concern is the word “union”.
Every day, a large number of components come into our country from outside the EU and they meet the deadlines of the just-in-time systems, as do the components from the EU. My hon. Friend the Member for Wimbledon (Stephen Hammond) should understand that you cannot send a car out with only 79% of its components assembled because they are the ones that came from the EU. Manufacturers send their cars out with 100% of their components, including the non-EU ones, which are coming in perfectly well. More than half our trade is done with non-EU countries that are not part of the single market or the customs union. We have already thought about the need to get rid of frictions on the borders for non-EU trade. We have worked internationally through the WTO which, through its trade facilitation agreement, has several instructions for us and for the EU to ensure that there is a minimum of friction at the border for non-EU, non-customs-union trade as well, which is why our manufacturers can work with it.
EU trade is not without administration and bureaucracy. The Intrastat declaration must be made, the commodity code must be identified, the VAT has to be settled and the excise must be settled if necessary. Those things are not done at the border. The lorry drivers do not have to stand in a queue while trying to work things out. When we are outside the EU’s customs union, the situation will be the same for everything else that does not come in within the customs union framework. This is the modern world. It is electronic. There are computers. There is the off-site settlement of taxes and of customs. The WTO knows about that.
The future for us will be great, but we must be free to have our own international trade policy and our own agreements with countries other than those in the EU. We must have the ability to set out our laws and spend our own money. The British public would expect no less of this Parliament, and they will not accept any higgling of their decision to leave the EU.
(6 years, 4 months ago)
Commons ChamberMadam Deputy Speaker, of all Members of the House I know what it is like to invoke your wrath, so I will not stray into that territory about what may happen on legislation later today. All I can say is that the Government gave a commitment that before the recess we would come to the House with our proposals for consultation on and scrutiny of new free trade agreements, and that is exactly what we have done.
I strongly support the Government’s line that where we have an existing trade agreement through the EU, we are as entitled to take that over for us as it is for the residual EU. I trust my right hon. Friend will just crack on with that and have it ready by March 2019 in case we leave then, while having a different process for a new trade deal, which I am sure the public will welcome.
We have always made it clear, as I did at the beginning of my statement, that there is a distinction between the continuity agreements covered in the Trade Bill that we will debate tomorrow and new free trade agreements, which we promised we would set out the scrutiny procedure for, and that is what has happened today. I know that it sometimes comes as a shock to the House when a Government do exactly as they said they would do in exactly the timescale allocated, but I am afraid that that is exactly what has happened today.
(6 years, 4 months ago)
Commons ChamberI am glad that the Secretary of State is now stressing to Labour Members, who do not seem to understand it, that the deal that the EU has done novates to us as well as to the rest of the EU. The EU that signed the agreement will not be in existence once we have left, so there is an equal opportunity for it to novate to us. There is no reason why it will not novate to us, and I am sure that my right hon. Friend will be able to improve on it subsequently.
I have said twice that we have already had discussions with Canada to see how we can build on the agreement that we will inherit as we leave the European Union. It is not a question of choosing one or the other. The agreement will already be there for us—assuming, that is, that the House of Commons passes the trade legislation which is necessary to give our businesses, our communities and our workers the certainty of continuity as we leave the European Union.
(6 years, 8 months ago)
Commons ChamberI am grateful to the hon. Gentleman for his co-operation over the weekend and for some of the constructive suggestions he made about how we might apply some further pressure to those US producers to enable them to seek exemptions for imports from the UK. He is right that there is overcapacity. The G20 global forum on steel excess capacity has made 28 recommendations. We now wait to see whether China will implement those recommendations, which is the key to sorting out the global overcapacity issue.
We have regularly said that we do not believe that section 232 was an appropriate vehicle for carrying out this investigation. Not only does the UK send some specifically high-end steel products into the United States that the US market is not necessarily able to provide for itself, so tariffs will apply an unavoidable increase in cost to American inputs, but we sell some specialist steel into the American military programme, making action taken against the United Kingdom on a national security ground quite an absurdity.
The hon. Gentleman is right to mention the sincere co-operation. I have made it very clear to the Commission that we continue to operate on that basis and that we will replicate the EU’s trade remedies systems as we leave the European Union. I remind him, though, that the Labour party voted against the setting up of the Trade Remedies Authority, not the issues that relate to its operation. That was a dangerous thing to do. However, it is right that we regard this as a national issue. There is no fundamental difference between us on the basis on which the section 232 investigation was conducted, nor on the options that we believe the European Union should take as a response.
Will the Secretary of State stress to the EU that it is in our interests to try to take some of the tension out of this festering dispute, rather than to take it on to another height, given that the President is already talking about tariffs against German cars, for example? It is surely in our interests to get back to tariff-free or low-tariff business.
The EU is taking countermeasures because the EU views section 232 itself as a safeguard. Any action that the United States were to take in response to that would be completely out of line with international trade law, as well as exacerbating an already tense situation.
(6 years, 10 months ago)
Commons ChamberThe hon. Lady gives me a good opportunity to pay tribute to my right hon. Friend the Member for Old Bexley and Sidcup (James Brokenshire), who stood down from the post of Secretary of State for Northern Ireland yesterday, for his work in trying to achieve a deal in Northern Ireland. We all hope that there will be a functioning Government that the UK Government are able to deal with, because it is in the best interests of all concerned in Northern Ireland that we get a functioning democratic Government in Stormont.
Will my right hon. Friend confirm that all the countries that have trade deals with the EU either have indicated that they would like to have a similar agreement with the UK or have certainly not indicated the opposite, so we can look forward to those deals novating, or transferring, to us?
I can indeed confirm that there is considerable interest in the continuation of those trading agreements with the UK, for one overwhelming reason: we are the fifth biggest economy in the world and provide a large market to countries that want to trade with us, so they have every interest in wanting to continue those agreements.
I will make a little progress.
The Government are taking a similar approach on the transitional trade agreements and on the GPA, looking to maintain the guaranteed access created by our current participation to ensure stability and continuity for UK businesses. As I mentioned earlier, the UK participates in the GPA through our membership of the European Union. Clearly, if we are to retain the benefits of the GPA, we will soon have to join as an independent participant. This legislation will enable the UK Government to make any changes required in domestic law as part of the UK becoming an independent member of the GPA and provide the power to make changes in future to reflect new countries joining the GPA or existing countries withdrawing from it. It is in the UK’s best interests for its businesses to continue to have guaranteed access to the GPA’s global procurement markets and for us to continue to work with our partners in the GPA to address trade barriers within the government procurement sector. We intend the UK to join the GPA, while maintaining our existing terms of participation. Clause 1 will allow the UK to legislate to reflect our new independent GPA status.
Will the Secretary of State confirm that a helpful and comprehensive trade facilitation agreement came into effect at the WTO in spring last year? It should be reassuring to all those who are worried about possible disruption to UK-EU trade—pending any agreement—that a lot of it will be governed by those helpful provisions because we and the EU will of course remain members of the WTO.
My right hon. Friend is right. That agreement was the first multilateral trade agreement for decades, which shows how difficult it is to get such multilateral agreements. It does reduce friction for customs arrangements worldwide, but although, as he said, the benefits are great, it is still in the best interests of the UK to come to an open and comprehensive trading agreement with the EU itself.
The Bill provides powers for HMRC to collect and share trade data, as has been mentioned. Those powers include the one in clause 7 that allows primary legislation to be amended to provide for HMRC to collect exporter information. Clause 8 will grant HMRC the authority to share data with those bodies that require those data to carry out a range of public functions relating to trade. Currently, HMRC collects a range of data from import and export declarations that is shared with the European Commission, as well as with other Departments and public bodies, under information gateways governed by EU law. Such gateways will, of course, cease to apply once we leave the European Union, and numerous functions that are currently carried out by the European Commission will be transferred back to the United Kingdom. HMRC will therefore need to be granted the legal authority to request data from exporters and share that data to ensure the continued smooth operation of the UK’s trade frameworks and clear and informed policy making from my Department, as I said to the hon. Member for Livingston (Hannah Bardell). The powers in clauses 7 and 8 will grant that authority, and nothing more.