Exiting the EU

Lord Reid of Cardowan Excerpts

Monday 9th July 2018 Lords Chamber

[Baroness Evans of Bowes Park]

We are confident we will be able to reach an agreement with the EU. On the withdrawal Act, a White Paper will be published in the coming weeks which will provide more detail on what will be in the Bill.

[Lord Reid of Cardowan (Lab)]

My Lords, I first apologise for having missed the first few minutes of the noble Baroness repeating the Statement. I was in the other place, listening to the Prime Minister’s Statement. With great respect, it does not improve much by repetition. On the subject of the quaintly named “facilitated customs arrangement”—in simple terms, for anyone who has not ploughed their way through the three pages, it means that we will have two different rates of taxation at the border of the United Kingdom for imports—the noble Baroness is a very intelligent Leader of the Opposition—

[Baroness Smith of Basildon]

Leader of the House!

[Lord Reid of Cardowan]

Sorry, that was both inordinate expectation and a Freudian slip—probably overhopeful thinking. Does she not recognise that having two rates of import tax at the borders will inevitably lead, first, to a bureaucratic nightmare for British manufacturers and, secondly, to a smugglers’ paradise not only here but in Northern Ireland—I speak as a former Secretary of State for Northern Ireland, where they have 300 roads between the north and the south? Thirdly, it is clearly a method of undermining fair competition in manufacturing throughout the United Kingdom, as anything that you as a distributor claim that you are importing for a British manufacturer will be incorporated in a product at less cost, which we will then try to export to Europe. Lest I am accused of not having an alternative plan, why do we not just stay in the customs union?

[Baroness Evans of Bowes Park]

I thank the noble Lord for his question. We believe that this is a business-friendly model which will seek to facilitate the greatest possible trade between the UK and its trading partners, whether in Europe or the rest of the world, while allowing the UK to set its tariffs. There will be no new routine checks or controls for UK businesses trading with the EU. In relation to his suggestion of a smugglers’ paradise, the proposal includes additional behind-the-border enforcement to prevent third-country trading countries from seeking access to the UK through trade circumvention rather than through agreeing free trade agreements with preferential tariffs.