Taxation (Cross-border Trade) Bill

Laurence Robertson Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Monday 16th July 2018 Commons Chamber

[Mr Laurence Robertson (Tewkesbury) (Con)]

I rise to speak to new clause 37, which is in my name and those of my right hon and hon. Friends. I will press the new clause at the appropriate time. It would make it

“unlawful for Her Majesty’s Government to enter into arrangements under which Northern Ireland forms part of a separate customs territory to Great Britain.”

The purpose is simple: it is to secure the future of the United Kingdom. I speak as a proud Unionist and a friend of Northern Ireland. I have had the honour of working closely with people across Northern Ireland, having been Chairman of the Northern Ireland Affairs Committee for seven years and, before that, a shadow Northern Ireland Minister for five years. Interestingly, I also co-chaired the British-Irish Parliamentary Assembly for some five years. We have a lot to fight for in Northern Ireland.

This new clause would provide a guarantee that shows we value the Union and recognise the importance of strengthening it, but also acknowledge the importance and the value of our most important trading arrangement, the UK internal market. Above all, it would contribute to upholding the constitutional integrity of the United Kingdom and safeguard the Union for the future.

New clause 37 reinforces a view that I am confident is shared on both sides of the House, which is that we cannot accept a deal that would allow Northern Ireland to be considered a separate customs territory from Great Britain. I recognise that this is the view the Prime Minister has put at the forefront of our negotiations.

[Ian Paisley (North Antrim) (DUP)]

Will the hon. Gentleman reiterate the point that new clause 37 simply underlines and reaffirms what the Prime Minister has said from the Dispatch Box on four separate occasions? The hon. Gentleman is right to seek to nail this into the Bill because we might not always have the luxury of having a Unionist Prime Minister.

[Mr Robertson]

Of course I completely agree with the hon. Gentleman, although I hope we always do have a Unionist Prime Minister. Many of us will be working towards that end for many, many years.

The Prime Minister said in December

“the whole of the United Kingdom, including Northern Ireland, will leave the EU customs union and the EU single market. Nothing in the agreement I have reached alters that fundamental fact.”—[Official Report, 11 December 2017; Vol. 633, c. 27.]

If nothing has changed, I am confident—and I understand it is the case—that the Government will support this amendment.

During the past two years, we have had many polarising debates on our withdrawal from the European Union, but this amendment is straightforward and should be supported by anyone who values and believes in the Union. This is not a matter of leave or remain; it is about protecting the Union and ensuring that any deal we secure with the European Union upholds the constitutional integrity of the UK.

As well as protecting Northern Ireland’s constitutional position in the UK, new clause 37 is also about protecting the economy of Northern Ireland by securing our most important single market, the UK itself. There are no absolute figures, but estimates from the Northern Ireland Statistics and Research Agency suggest that external sales of goods and services between Northern Ireland and the rest of the UK were worth £14 billion in 2016, which represents approximately 58% of Northern Ireland’s total external sales. To jeopardise that by subjecting Northern Ireland to extra border arrangements, effectively down the Irish sea, would be foolish.

Earlier this year, the Prime Minister rightly rejected the European Commission’s proposed version of the backstop, which would have treated Northern Ireland differently from the rest of the United Kingdom. As the Prime Minister has said a number of times, no UK Prime Minister could ever agree to it. I understand that is still the Government’s view.

New clause 37 does not look to tie the Government’s hands. Rather, it will galvanise the Government’s position on this issue and signal to the people of Northern Ireland that they will not be left behind or left out. The Irish border is being used as a red herring by the European Union. As the Prime Minister has agreed on a number of occasions, we cannot know what arrangements, if any, will be needed on the border until we know the details of any deal with the European Union. To think the opposite of that is to put the cart before the horse.

Her Majesty’s Government, the Irish Government and politicians of all colours in Northern Ireland have said that they do not want to see a hard border in Ireland. When we say “hard border,” we are not talking about troops being stationed along the border—that is not going to happen. Nor will whatever arrangements we reach with the EU provoke violence along the border—those years have surely gone.

What will happen, though, is what has been happening for a very long time. The two jurisdictions already have different laws, different currencies, different VAT rates, different levels of corporation tax, different fuel duties, different levels of tourism tax and different levels of air passenger duty, yet trade takes place. People cross the border each day, with some people crossing several times a day. Some checks are carried out at various places in the north and south, which is how it will continue to be, without the disruption to trade and to everyday life that some people predict.

There is, therefore, no need for discussions about the border in Ireland to hold up the wider trade talks with the European Union, nor is there any need to threaten Northern Ireland’s position within the UK or Northern Ireland’s economy during these talks. New clause 37 will ensure that will not be the case.

The Prime Minister has repeatedly said that the backstop proposals for Northern Ireland are something no Prime Minister of the United Kingdom could ever agree to, and this new clause will enshrine that policy in law.

[Caroline Lucas (Brighton, Pavilion) (Green)]

I support all those who have been arguing for continued membership of the customs union, and therefore I support new clause 1. It is clear from everything we have heard today that, if we are to avoid serious economic hardship, membership of the customs union is essential. Frankly, the wrecking ball that the hard Brexiteers would bring to British business and industry is pretty extraordinary, and all for what?

The Prime Minister had it pretty much right when she spelled out:

“We export more to Ireland than we do to China, almost twice as much to Belgium as we do to India, and nearly 3 times as much to Sweden as we do to Brazil. It is not realistic to think we could just replace European trade with these new markets.”

She said that in April 2016, and I contend, as the Prime Minister herself is fond of saying, that nothing has changed.

In the brief time available to me, I will raise the issue of standards, particularly in relation to my amendment 71. Clause 8 sets out factors to which the Treasury must have regard when considering the rate of import duties that apply to goods. Those factors include the interests of UK consumers and the desirability of maintaining and promoting productivity and external trade.

Amendment 71 would add to those factors. First, it would add the interests of UK producers, particularly farmers. Secondly, it would add the desirability of ensuring that UK standards of animal welfare, food safety and environmental protection are not undermined by imports produced to lower standards.

The Prime Minister said at Prime Minister’s questions in February 2017, and many times since:

“We should be proud that in the UK we have some of the highest animal welfare standards in the world—indeed, one of the highest scores for animal protection in the world. Leaving the EU will not change that…we are committed to maintaining and, where possible, improving standards”.—[Official Report, 8 February 2017; Vol. 621, c. 424.]

Similarly, we have heard the Secretary of State for Environment, Food and Rural Affairs say on many occasions that we need to maintain, and where possible enhance, environmental and animal welfare standards. However, if the UK is unable to protect its farmers from being undermined by lower-quality imports, those farmers are likely to find it hard to be competitive and to go further on improving their animal welfare and environmental standards. Accordingly, when negotiating new trade agreements, it will be vital that the UK insists on the inclusion of a clause permitting it to require imports to meet UK animal welfare and environmental standards. I have tabled an amendment to the Trade Bill to that effect.

If that were not to happen and we were to lose the principle of prohibiting products that do not meet our standards, we would need some kind of backstop, which is where amendment 71 comes in. It would give Ministers the power to place differential tariffs on imports. Imports that do not conform to UK welfare standards would be subject to tariffs high enough to safeguard UK farmers. It would ensure that UK farm businesses were not undermined by low-quality products and that UK consumers would be protected from goods of a lower standard—chlorine-washed chicken, ractopamine-fed pork and hormone-treated beef, to name but a few—through tariffs on imports that do not meet UK standards. These tariffs would effectively make the cost of these lower-welfare products an awful lot higher to protect our standards here in the UK.