Oral Answers to Questions

Justin Madders Excerpts

Thursday 1st February 2018 Commons Chamber

[Mr Walker]

My hon. Friend makes an excellent point in speaking up for his constituents and the businesses within it. I have met the Scotch Whisky Association on a number of occasions to discuss the global opportunities for Scotch whisky. We must ensure that we have the flexibility to take them.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

11. What recent assessment the Government have made of the effect of the UK leaving the EU customs union on the automotive sector.

[The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)]

The Government have been conducting a broad overall programme of work on EU exit issues and will continue to do so. That means that all decisions, including those relating to the customs union and the automotive sector, are supported by a range of analytical work. We want our deep and special partnership with the EU to include the automotive industry. We want to ensure that trade is as free and frictionless as possible, with minimum disruption to the industry. The UK remains the second-largest market for cars in Europe, so it is in both our interests to continue the partnership between our industries. I know that the Vauxhall car plant in the hon. Gentleman’s constituency is extremely important, and I look forward to visiting it soon.

[Justin Madders]

As the Minister knows, the Vauxhall plant in my constituency is fighting for its survival. Vauxhall’s parent company, PSA, has said that it is not prepared to make any long-term investment decisions until there is clarity about the final trading arrangements, and, having heard what Ministers have said this morning, I am not sure we will get that any time soon. Can the Minister at least guarantee that the trading arrangements for the automotive sector will be no less favourable than they are now?

[Mr Baker]

The Government understand that Vauxhall’s decision was a commercial one, taken as a result of challenging European market conditions. Vauxhall has made it clear that the decision was made to safeguard the competitiveness of the plant. The Government maintain close ongoing dialogue with Vauxhall and its parent group, PSA, as they make their joint plans for the future, including potential investments. Ministers have met senior management representatives of PSA and Vauxhall regularly throughout the process, and will continue to do so.

I hope and expect that as we progress through our negotiations, agree on an implementation period and then move on to our economic partnership, the hon. Gentleman will find that an accelerating degree of certainty emerges.