Oral Answers to Questions

Kwasi Kwarteng Excerpts

Thursday 4th April 2019 Commons Chamber

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

17. What recent steps he has taken to prevent the UK from leaving the EU without a deal.

[The Parliamentary Under-Secretary of State for Exiting the European Union (Kwasi Kwarteng)]

On Tuesday, my right hon. Friend the Prime Minister set out a process through which we will seek to agree a plan to leave the EU with a deal. She has asked for a short extension in order to do that. The best way to avoid no deal, as the House well knows, is obviously to agree a deal. While no deal remains the legal default, the Government must go on preparing for this scenario as a contingency.

[Marion Fellows]

All of the leave campaigns promised that we should leave with a deal. Last week, no deal was rejected by over 71% of MPs, and the Prime Minister’s deal has also been overwhelmingly rejected. Will the Government finally admit that there are alternatives to leaving without a deal that can gain more support from Parliament than the Prime Minister’s deal?

[Kwasi Kwarteng]

The hon. Lady is absolutely right. If she has followed events this week, she will know that that is exactly why my right hon. Friend the Prime Minister has extended the negotiations to and engaged in conversation with the Leader of the Opposition. It is precisely to find a solution to the impasse.

[Martyn Day]

No deal did not appear on any ballot paper in 2016 and was ruled out by all the main leave campaign groups. Does the Minister therefore agree that it would be totally unacceptable to crash out without a deal, without first putting it back to the people?

[Kwasi Kwarteng]

The hon. Gentleman is quite right: the House has shown no inclination to leave the EU without a deal. That is why my right hon. Friend the Prime Minister is looking for a way forward and engaging with the Leader of the Opposition on precisely that issue.

[Jenny Chapman (Darlington) (Lab)]

Leaving without a deal would affect everybody, not least our dentists. I hope you will find it in order, Mr Speaker, for me to raise the issue of dentistry in a no-deal situation at this point. A third of the 6,500 European qualified dental registrants intend to leave UK dentistry. The British Dental Association chair, Mick Armstrong, has said:

“Government has failed to even acknowledge the scale of the crisis”.

I know that Ministers have recruitment and retention issues of their own at the moment, but is not the chair of the British Dental Association right, and what are the Government going to do about it?

[Kwasi Kwarteng]

I would like to pay tribute to my former colleague, my hon. Friend the Member for Daventry (Chris Heaton-Harris). He was a wonderful Minister and it is a shame that he has left us.

On the issue of professional qualifications, it is in the withdrawal agreement and it has always been the stated aim of the Government that there will be mutual recognition of qualifications. This is not controversial, and I think that it will assure many EU citizens in our country that they can continue to pursue their professions without any interruption or uncertainty.

[Peter Grant (Glenrothes) (SNP)]

The Government have had any number of opportunities to take no deal off the table. Last night, Parliament had to start the almost unprecedented step of passing legislation that is fiercely opposed by the Government to put Parliament and these islands where the Government should have put us a while ago. Last week, we had the astonishing spectacle of the Chief Whip going on the record to say that the Prime Minister had got it all wrong. Does the Secretary of State agree with the Chief Whip?

[Kwasi Kwarteng]

What my right hon. Friend the Prime Minister has got right is the fact that we need a solution to the impasse. That is why this week, she has very openly invited the Leader of the Opposition to talks to track a way forward.

[Peter Grant]

It is very noticeable that the Prime Minister is still refusing to talk to anyone who might say anything she disagrees with, but we will see what comes out of the talks. Given that it is the clear will of this House that no deal must be avoided and that this Parliament is in the process of passing legislation to prevent no deal from happening, is it tenable for any Minister of the Crown to continue actively to promote a no-deal Brexit that has been rejected by Parliament and was never endorsed by the people in the first place?

[Kwasi Kwarteng]

In respect of my right hon. Friend the Prime Minister listening to diverse views, my understanding is that she spoke to the First Minister of Scotland yesterday and has been engaged in conversations with her. The position of the Government has always been the same: we favour a deal. We want to leave the EU with a negotiated deal, but it would be irresponsible of the Government not to prepare for no deal, because that still might happen. Indeed, Michel Barnier said this week that it was likely. It is therefore exactly the right thing for the Government to prepare for the scenario of no deal.

[Ronnie Cowan (Inverclyde) (SNP)]

12. What recent discussions he has had with the devolved Administrations on the UK leaving the EU.

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[Diana Johnson (Kingston upon Hull North) (Lab)]

13. Whether the Government plan to bring forward legislative proposals to prepare for the UK leaving the EU without a withdrawal agreement.

[The Parliamentary Under-Secretary of State for Exiting the European Union (Kwasi Kwarteng)]

The Government have undertaken extensive work to identify the legislation essential to deliver our exit from the EU. In fact, as I speak, almost all the statutory instruments—93% of them—required for a functioning statute book on exit day have been laid before Parliament.

[Diana Johnson]

The Government have failed to pass the Trade Bill, the Agriculture Bill, the Fisheries Bill, the financial services Bill and the environment Bill, and they have even failed to introduce the EU withdrawal Bill. Does that not show those who think we are ready to leave in a no-deal situation on 12 April that the Government are not prepared for that at all?

[Kwasi Kwarteng]

I reject the assumption behind the question. As I stated, almost all the SIs required—93% of something like 600—have been passed. The hon. Lady is quite right that there are Bills currently in Parliament that are being discussed and that are going through both Houses. All those Bills provide for a range of negotiation outcomes, as she knows, including a no-deal scenario.

[Stephen Timms (East Ham) (Lab)]

Is it not now inconceivable to pass a meaningful vote before the EU Council next Thursday and therefore unavoidable to seek a lengthy Brexit delay and to hold European Parliament elections?

[Kwasi Kwarteng]

Given what we have seen in the past few weeks, I would never say “inconceivable”; anything can happen, as the right hon. Gentleman knows. I am confident that we will get a deal through. I am hopeful of that, because that is the only way that we will get a negotiated and orderly exit from the EU.

[Toby Perkins (Chesterfield) (Lab)]

14. What assessment he has made of the effect on UK manufacturing of the UK leaving the EU without mutual recognition of regulatory standards in that sector.

[The Parliamentary Under-Secretary of State for Exiting the European Union (Kwasi Kwarteng)]

The hon. Gentleman will be aware that we have had extensive meetings across the country, and I have seen many companies. We continue to recognise the importance of UK manufacturing and of maintaining a close trading relationship with the EU. As the political declaration sets out, we have already agreed to establish a free trade area for goods. We recognise that manufacturing is an essential part of the economy.

[Toby Perkins]

That was not really much to do with my question, which was about regulatory standards. Weightron Bilanciai, a Chesterfield-based industrial weighing machine manufacturer, had to spend around £50,000 to have all its products re-certified in the Netherlands, because they will no longer be certified and recognised for sale in the EU after we leave. Are the costs paid by UK manufacturing and the impact on British businesses the most serious example of the Government’s failure to come up with a trade deal?

[Kwasi Kwarteng]

I will tell the hon. Gentleman about failure. What is actually crippling and increasing uncertainty for his manufacturing sector is his repeated rejection of the deal, which would actually have an implementation period and would give certainty and direction to the very companies he seeks to represent in the House.

[Melanie Onn (Great Grimsby) (Lab)]

The Minister said that anything can happen. Total Lindsey oil refinery contacted me this week to warn me about the risk, in the event of no deal, of the equivalent of Chinese steel dumping but with US gasoline if we end up with 0% import tariffs. That will result in the loss or downgrading of up to 900 jobs in my area. Does he agree that that would irrevocably damage our local economy?

[Kwasi Kwarteng]

The question I ask myself—[Hon. Members: “Answer!”] I am answering the hon. Lady’s question. Given that she has so much concern for manufacturing interests in her constituency, why on earth has she rejected, on three occasions, the only deal that would provide certainty and a degree of consistency for the companies she seeks to represent?

[David Duguid (Banff and Buchan) (Con)]

15. What steps his Department is taking to help maintain the rights of EU citizens in the UK in the event that the UK leaves the EU without a deal.

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[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

16. What recent assessment he has made of the effect on the UK manufacturing sector of the UK leaving the EU without a deal.

[The Parliamentary Under-Secretary of State for Exiting the European Union (Kwasi Kwarteng)]

Obviously, manufacturing is vital to everything we do. We remain committed, through our industrial strategy, to making the UK the best place to start and grow a business. There are now 3.5 million more people in work than in 2010. It seems very remiss of Opposition Members to complain about uncertainty when they have rejected the deal not once, not twice, but three times. This deal will provide the certainty that the hon. Gentleman’s manufacturing interests will recognise and appreciate.

[Mr Sheerman]

We all had a late night last night, but this is a zombie Secretary of State with zombie Ministers. When will they wake up? Yesterday, the all-party parliamentary manufacturing group, which I chair, was told by a leading professor from the business schools of both Sheffield and Birmingham that, however we leave Europe, we will have a 4% to 5% drop in GDP, but that GDP in the constituencies and towns that voted to leave will drop by a crippling 17% to 20%. That may not include Spelthorne, where I grew up, but it will devastate this country’s manufacturing base.

[Kwasi Kwarteng]

First, I would like to confirm to the House that we are not zombies. Secondly, Spelthorne has manufacturing interests, as the hon. Gentleman’s constituency does. The manufacturing interests in my constituency always tell me, “Back the Prime Minister’s deal—back certainty. Let’s get this thing over the line and move on with our lives.” That is what they want.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

The highly integrated supply chains in the motor and aviation industries require convergence and regulatory alignment with product manufacture, both in the EU and in the UK. What guarantees can the Minister give that, in the event that the UK leaves the EU without a deal, we will have a role in shaping the future regulatory framework?

[Kwasi Kwarteng]

Obviously, it has been the Government’s repeated intention not to leave without a deal. The hon. Gentleman will know that part 3 of the withdrawal agreement deals extensively with the kind of regulations that would be in place in the implementation period, which, if the deal goes through, will give us another 20 months to negotiate a free trade agreement.

[Tom Pursglove (Corby) (Con)]

18. If he will make an assessment of the potential negative effect on his Department’s policies of a second referendum on the UK leaving the EU.

[The Parliamentary Under-Secretary of State for Exiting the European Union (Kwasi Kwarteng)]

My hon. Friend will appreciate that a second referendum would have a very corrosive impact not only on our politics but on trust, which has been mentioned many times. A clear instruction was given in 2016 to withdraw from the EU, and that is what the Government remain absolutely committed to fulfilling.

[Tom Pursglove]

I am grateful to the Minister for that answer. Beyond that impact, what assessment has he made of the democratic and financial impacts of pursuing such a change in policy?

[Kwasi Kwarteng]

My hon. Friend is quite right: holding a second referendum would create enormous uncertainty that would undermine the strong economic achievement of the Government and of our businesses. It would essentially take us back to square one and result in more delay at a time when the public simply want politicians to deliver what they promised.

[Sammy Wilson (East Antrim) (DUP)]

After the talks with the Labour party leader yesterday, the Chancellor said this morning that a second referendum is more likely. Are we seeing the start of yet another U-turn from a Government who have abandoned all their promises on going forward with no deal, having no border down the Irish sea and ensuring that we leave the EU on 29 March?

[Kwasi Kwarteng]

In respect of the second referendum, as I said to my hon. Friend the Member for Corby (Tom Pursglove), it is Government policy to honour the 2016 referendum. That is what we have been tasked to do, and that is what we are 100% focused on. The second referendum is a red herring, frankly. It is not something that we countenance. We want to deliver on the 2016 referendum.

[Tim Loughton (East Worthing and Shoreham) (Con)]

19. What recent assessment he has made of the potential effect on the financial services sector of the UK leaving the EU.

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[Andrew Lewer (Northampton South) (Con)]

T6. The digital single market copyright directive is on its way to becoming law in the EU. This could have significant implications for the UK’s intellectual property-rich creative industries, particularly publishing, whose successes are underpinned by the gold standard copyright system. How consistent will the UK’s copyright regime be with the EU’s when—perhaps I should say if—we leave?

[The Parliamentary Under-Secretary of State for Exiting the European Union (Kwasi Kwarteng)]

The UK’s IP regime does indeed represent a gold standard internationally, and that will not change as we leave the EU.

[Ruth George (High Peak) (Lab)]

T2. The Prime Minister has confirmed that the future declaration is not legally binding, so what assurances can the Government give us on trade tariffs, rights at work, food standards and environmental protections that will be binding on whoever ends up negotiating our permanent deal with the EU?

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[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

North-east manufacturers have achieved great success as part of integrated, just-in-time pan-European supply chains, which mean that, as one manufacturer puts it, their stock room is somebody else’s delivery van. These manufacturers are now having to stockpile as a consequence of this Brexit chaos, and that has implications for their cash flow and finances. What help is the Minister looking to provide for them and what hope of future economic integration can he offer them in the case of there being a deal without a customs union?

[Kwasi Kwarteng]

I have travelled in the north-east, although not quite in the hon. Lady’s constituency, and I have seen chemicals firms in the petrochemicals industry. They say with one voice that they want a solution to this impasse, just as we do in this House. They want to have a deal, to have the implementation period and to move on from this.

[Rachel Maclean (Redditch) (Con)]

Forcing the UK to take part in European parliamentary elections would show a fundamental lack of respect for our democratic process, wouldn’t it?