(6 years, 5 months ago)
Commons ChamberI will press on, make my case and take some further interventions later on.
I was saying that the proposal in Lords amendments 1 and 2 that the Government should seek to negotiate a customs union with the EU as part of the future arrangements is a sensible one for many reasons. The first is the economy. Over a number of decades, our manufacturing model has adapted to the arrangements that we currently have with the EU, including the customs union. Thus, typically, we see, across the UK, thousands of manufacturing businesses that operate on the basis of a vital supply chain in goods and parts from across the EU. The car industry is an obvious example, but not the only one.
Such businesses operate on the basis of a just-in-time approach. Whereas years ago there were stockpiles of parts and so on, these days there is a just-in-time approach. Parts come in and are assembled, and the finished product then goes quickly and seamlessly across the UK and/or out to the EU. That is the manufacturing model that this country has operated for many years, and MPs across the House know that that is what goes on in their constituencies.
The outgoing president of the CBI said today that manufacturing sectors, particularly the car industry, would be severely damaged if the UK did not stay in a customs union with the EU. Does my right hon. and learned Friend agree that those comments are very concerning?
One of the risks for Members taking interventions is that the very next point we are about to make is stolen, but my hon. Friend is absolutely right. I will just remind the House that the president of the CBI this morning said:
“If we do not have a customs union, there are sectors of manufacturing society in the UK which risk becoming extinct... Be in no doubt, that is the reality.”
This is at the heart of the debate. If we destroy the manufacturing model that I just described, we destroy a vital part of the economy and job losses will be considerable. That is why there are such high levels of concern across the business community about the Government’s current approach.
(6 years, 9 months ago)
Commons ChamberI am grateful for that intervention, because it is consistent with the point that was made earlier about the regions. Each of the regions and nations needs to understand the risk that it faces, so that it can then, if necessary, put the various mitigations in place. We need to press on these issues, so that is vital.
Does my right hon. and learned Friend agree that if the Government had at their disposal any economic evidence or forecast that backed up their chosen approach, it would already be in the public domain; it would not be called a leak?
I am grateful for that intervention, and I agree that it would be highly likely that such material would be put into the public domain.
I come back to this serious point: the choice now to be made is how we leave the EU and what the future relationship might be. That is a profoundly important question. There are many different choices, and we absolutely need—and there should be—a robust impact assessment that we can all see and all discuss.