Taxation (Cross-border Trade) Bill

Debate between Matt Western and Justine Greening

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

[Matt Western]

My right hon. Friend is right that SMEs, particularly in the component supply chain, are the most vulnerable to these sorts of changes. They are the most likely either to lose business elsewhere or to have to move abroad. I can give concrete examples where that has already taken place.

The right hon. and learned Member for Rushcliffe described the apparent view that the customs union is some sort of problem holding us back. He is right that it has not held us back. The likes of Germany, which exports 10 times more to China than we do, are in the customs union, which has not been to their disadvantage. As he said, we have witnessed the most phenomenal explosion in the success of the automotive industry in this country over the past 10 years—after 20 years of relative stagnation, it grew by more than 50% in that period.

In summary, where it is rare for businesses to speak out, we should listen. They do not intervene lightly in politics, in this country or elsewhere. The preservation of a true customs union is critical to safeguarding business and investment in this country, and that is why I support new clauses 1, 11 and 12.

[Justine Greening (Putney) (Con)]

I should say first that I recognise the importance of the Bill and why it is necessary if we are leaving the European Union. However, many of the amendments reflect the fact that, regrettably, the White Paper simply does not represent the clearcut, deliverable strategy that I believe our country needs—it is a fudge.

As my right hon. Friend the Member for Chelsea and Fulham (Greg Hands) set out, remainers question why we are accepting so many rules while forfeiting the right to sit at the table where they are decided. I know that many of my colleagues who campaigned strongly to leave are equally unhappy and believe, with some merit, that people who voted leave in the referendum are simply not getting the kind of Brexit they feel would give our country the clean break it needs if it is going to be successful.

I spent a long time in business before I came to this place, and I know that if a strategy is to be successful, it needs to be clearcut and one that everyone can get behind. I may not agree with some of my colleagues about what the best strategy is, and I may not want to leave on WTO rules, but in the context of the White Paper it is important for us to listen to colleagues who are respected on this issue—perhaps none more so than my right hon. Friend the Member for Haltemprice and Howden (Mr Davis). Of course, he has been at the forefront of this deal’s development for the past two years, alongside my hon. Friend the Member for Wycombe (Mr Baker), whom I think we would all describe as ever-resourceful. Both took principled decisions to leave the Government, and I respect that. I know from my own circumstances that such decisions are not easy, but I also fully understand why they took them.

There might, in practice, be three practical options for our country’s way forward, but I believe that, in reality, there are only two clear strategies, and therefore only two paths to take if we are to achieve a successful Britain in the long term. Of course, both paths have pros and cons, and although there are passionate views on both sides, it is important that we debate these, as far as possible, in a measured way.

But the Prime Minister has now presented us with a third way—a compromise between the other two pathways. I understand the Government’s desire to achieve compromise, but I genuinely believe that the White Paper demonstrates that, in reality, our choice is between either one approach or the other. It is vital that we have a realistic, clearcut strategy that can actually be delivered. If we have a plan that we cannot deliver, it is not a plan. Regrettably, the White Paper attempts to ride two horses, and that never works.

It is on that basis that I have said that this deal is the worst of all worlds, and in the end it will please no one. It is probably the worst outcome we can get. It keeps nobody happy at all. Whether one accepts my arguments or those of my right hon. Friend the Member for Witham (Priti Patel), for example, both paths have pros and cons, but both represent clear routes forward that are genuine strategies for our country.

My concern is that this place has reached stalemate. As this debate exemplifies, there are still deep divisions in people’s views, and I think we understand why. My view now is that, because of that stalemate, it is time for the British public to have the final say on the clear approaches we face on Brexit. We absolutely must settle this now if we are to move beyond Brexit and get on to the vital issues facing our country such as housing, a lack of social mobility and social care. That is what we should be aiming to do. I do not believe that we should have a compromise that simply has to be reopened and renegotiated later. I have reached my conclusion on the Chequers deal, and I know that colleagues will look more closely at it in the coming days. I leave Members to think on these words:

“Standing in the middle of the road is very dangerous; you get knocked down by the traffic from both directions.”