GB-EU Border Operating Model
Michael Gove Excerpts(3 years, 7 months ago)
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The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)
Today, the Government will publish an updated border operating model, to provide further clarity and certainty for businesses. The model—the first version of which was published on 13 July—has been updated to reflect feedback from stakeholders and to include additional detail on policies and processes. We would like to thank the devolved Administrations for their engagement with this.
This detail will help businesses which trade with the EU to understand the new arrangements and take action. We are encouraging businesses to go to gov.uk/transition to use the transition checker which will help them understand not just new border requirements but all of the steps they need to take to be ready for the end of the transition.
A copy of the updated border operating model has been deposited in the Libraries of both Houses.
Attachments can be viewed online at: https://questions-statements.parliament.uk/written-statements/detail/2020-10-08/HCWS498.
[HCWS498]
Future Relationship with EU: Negotiations
Michael Gove Excerpts(3 years, 7 months ago)
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The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)
The Government have made a commitment to update Parliament on the progress of our future relationship negotiations with the EU. This statement provides an update on the ninth round of negotiations.
Led by the UK’s Chief Negotiator, David Frost, negotiators from the UK and the EU held discussions in Brussels on 29 September-2 October 2020. There were substantive discussions on almost all issues.
Discussions covered all workstreams including:
Trade in goods: Core areas of the goods elements of the FTA, including market access, customs and regulatory issues.
Trade in services, investment and other FTA issues: Including mode 4, procurement, digital and intellectual property (including geographical indications).
Fisheries: Quota-sharing and governance.
“Level playing field”: Covering subsidies, tax, competition, labour, environment, sustainable development and governance.
Energy: Including civil nuclear co-operation and electricity and gas trading.
Transport: Road transport, aviation safety and air services.
Law enforcement: Covering a number of capabilities including Prüm, mutual legal assistance, extradition and our future arrangements with EU agencies.
Mobility and social security co-ordination: Social security co-ordination arrangements.
Participation in Union programmes: Covering the general terms for UK participation and Peace+.
Thematic co-operation: Including future health security and security of information arrangements.
Governance: Including appropriate institutional architecture.
There were positive discussions in the core areas of a trade and economic agreement, notably trade in goods and services, transport, energy, social security, and participation in EU programmes. This has however been true for some time. Progress has also been possible on a law enforcement agreement. In other areas, however, significant and familiar differences remain, notably on the level playing field, and on fisheries where the gap between us remains very large.
The Prime Minister spoke to President von der Leyen on 3 October to review the progress of negotiations. They agreed on the importance of finding an agreement, if at all possible, and instructed the chief negotiators to work intensively to try to do so, given how short time now is before the European Council on 15 October.
[HCWS487]
Oral Answers to Questions
Michael Gove Excerpts(3 years, 7 months ago)
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Justin Madders (Ellesmere Port and Neston) (Lab)
The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)
This week the ninth round of negotiations with the European Union is taking place. Since the last round of negotiations, as set out in the terms of reference, UK negotiators have continued informal discussions with the Commission in both Brussels and London. Differences, of course, still remain, but we are committed to working hard to reach agreement within the timeframe that the Prime Minister has set out. On financial services, we are still seeking to provide a predictable, transparent and business-friendly environment for firms that undertake cross-border business.
Tom Hunt
Stopping illegal crossings of the English channel must be a top priority, but my understanding is that, while we are still in the transition period, our ability to tackle this issue at sea in a robust way is significantly curtailed. Will my right hon. Friend reassure my constituents that a plan is in place to deal with this issue swiftly as soon as the transition period is over?
Michael Gove
My hon. Friend raises a very important question that is of concern to constituents across the United Kingdom. We are actively looking at the steps we can take after we leave the transition period to ensure that we can both maintain our commitment to providing a safe haven for those genuinely fleeing persecution and safeguard our borders. My right hon. Friend the Home Secretary has appointed Dan O’Mahoney to lead the United Kingdom’s response in tackling illegal attempts to reach the United Kingdom.
Harriett Baldwin
Financial services are this country’s biggest export sector. The Treasury Committee heard evidence from the Bank of England last month that equivalence could be a real problem, as it could be withdrawn quickly. Could the Chancellor of the Duchy of Lancaster update the House on how negotiations on financial services regulations are going?
Michael Gove
I am grateful to my hon. Friend for raising that question, as a former Treasury Minister and a very effective advocate for one of the most successful parts of our economy. The granting of equivalence is an autonomous process within the European Union, but we are confident that the high standards of financial services regulation in this country command confidence not only in the EU but elsewhere. It is also the case that it is in the interests of EU citizens and companies that they have access to the broad and deep capital markets in London and across the United Kingdom.
Justin Madders
Vauxhall Motors in my constituency exports the majority of its vehicles to the EU, but at the moment it does not know where it stands on rules of origin, and it does not look like that will be a priority in the next round of negotiations. Is it not time that the Government actually supported the UK automotive sector and made that a big priority in the next round of negotiations?
Michael Gove
I am grateful to the hon. Gentleman for raising that question. If I may gently correct him, we do put the interests of the automotive sector front and centre. When it comes to rules of origin, diagonal cumulation or seeking a tariff-free and quota-free deal, that is at the heart of our negotiating approach, and the interests of his constituents are at the heart of the approach that Lord Frost is taking.
Hilary Benn (Leeds Central) (Lab)
Yesterday, the Committee on the Future Relationship with the European Union was told by representatives of the UK chemicals industry that the cost to the sector of registering all chemicals under the new UK REACH system after 1 January will be about £1 billion because of the Government’s negotiating decisions. Can the right hon. Gentleman explain why, in the midst of an economic crisis, the Government have chosen to impose such enormous costs and red tape, to no benefit whatsoever, on one of our most important and successful industries?
Michael Gove
The right hon. Gentleman is right that the chemicals sector is one of the many economic success stories of the United Kingdom. It is an inevitable consequence of leaving the European Union single market and customs union and freeing ourselves from the jurisdiction of the Court of Justice of the European Union that we have to have our own regulatory systems in place. They will enable us to be competitive and to take advantage of increased autonomy and independence in the future. One of the great prizes of leaving the European Union is that, when it comes to life sciences and other areas, we will be freed from the often anti- science and anti-innovation approach that the EU has had hitherto.
Paul Blomfield (Sheffield Central) (Lab)
The Government have said repeatedly, and I have heard the Minister say it many times, that they want a Canada-style deal. The Minister will know that Canada’s deal with the EU—the comprehensive economic and trade agreement—contains many commitments on a level playing field, with both parties signing up to an entire chapter on workers’ rights and two chapters on environmental standards. Could he try a straight answer to this question: will the Government be prepared to sign up to similar commitments in their deal with the EU?
Michael Gove
Absolutely—we are totally committed to ensuring that there can be reassurance on workers’ rights and environmental protection. In a previous life, I was the Secretary of State for the Environment, Food and Rural Affairs, and as a result of our endeavours in the Environment Bill, the creation of the Office for Environmental Protection will mean that the UK is a world leader in upholding environmental standards. We will be upholding them to a higher level than the European Union does. What we cannot accept, however, is the European Union seeking to tie the United Kingdom to its laws and its jurisdiction. We are an independent country. The people voted in a referendum and a general election for us to reclaim our sovereignty. It is a pity that the Labour party thinks that the British people, when they have the freedom to choose, will choose lower standards. That is a lack of faith in this country and a lack of faith in democracy.
Tommy Sheppard (Edinburgh East) (SNP)
Anne McLaughlin (Glasgow North East) (SNP)
The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)
Our Union is strong.
Tommy Sheppard
Given that the Cabinet Office refused to answer my written questions within the agreed timescales, will the Minister confirm whether his Department undertakes opinion polling and research into public attitudes to the Union? If that is the case, will he commit to putting that information in the public domain, since it is paid for by the taxpayer?
Michael Gove
First, I apologise to the hon. Gentleman for any delay in answering his written questions. I will take that up with the team in the Cabinet Office.
Of course, Government do undertake research, and that research reinforces to us the vital importance of serving every part of the United Kingdom effectively. The research that we undertake, for example, reveals that, across the United Kingdom, people believe it is vital that Governments work together to deal with the current covid pandemic, and it is important that the good co-operation that we have recently enjoyed with the Scottish Government continues.
David Linden
It seems to be the approach of a slippery fish from the Chancellor of the Duchy of Lancaster. How much money—UK taxpayers’ money—is he spending on this private polling? Given that all public polling shows that there is an increase in support for Scottish independence, is it not correct that support for the Union is pretty weak at the moment and it is only a matter of time before Scotland becomes an independent country?
Michael Gove
Talking of fish, slippery or otherwise, one of the benefits of leaving the European Union is that we will be taking back control of our territorial waters. As the Scottish Government have pointed out, and as I know the hon. Gentleman is aware, there will be hundreds of thousands of new jobs and millions of pounds of new investment in the north-east of Scotland as a result of leaving the European Union. We do not need any opinion polling to tell us that that is a Brexit boost for the north-east. These are facts, and facts are chiels that winna ding. Therefore, that is a ding-dong for the Union.
Anne McLaughlin [V]
This House has approved a Bill that allows the democratically elected Scottish Government to be overruled by the right hon. Gentleman’s Government—happy to ignore laws they have not made, happy to break treaties and hungry to take power from everywhere they can. Alongside this appalling level of respect for the law and for Scotland, can I at least highlight one silver lining and thank him for the contribution he is making towards Scotland’s independence?
Michael Gove
It is always flattering to receive compliments from colleagues across the House and across parties, and I am grateful to the hon. Lady for the gracious compliment that she pays me, but it is one that I am afraid I must gently turn down, because the Scottish Parliament will be receiving additional powers—a power surge—as a result of our departure from the European Union. That proves that devolution works. I think, and I think the majority of people in this House think, that devolution provides the people of Scotland with the best of both worlds—a strong Scottish Parliament and a strong UK Parliament. The Scottish National party, I am afraid, would force people to choose between being Scottish and being British, and I do not think that people should be forced to make that choice. They should, as Andrew Wilson, the author of the Scottish Government’s growth commission report, recently pointed out, take pride in being both Scottish and British.
Pete Wishart (Perth and North Perthshire) (SNP)
If the right hon. Gentleman’s Union is so strong, as he contends, can he tell me why he thinks Scottish independence is at a record high of 55% and has been at a sustained majority all year?
Michael Gove
The evidence of my eyes is that support for our United Kingdom across Scotland, Wales and Northern Ireland, and in England, is strong. People recognise that it is the broad shoulders of the UK Treasury that have been responsible for helping to ensure that we can borrow money cheaply and invest in the people of Scotland’s welfare. In the conversations that I have had with Scottish Government Ministers, they always express their thanks and gratitude for the support the Treasury is giving. Whether it is the furlough scheme, Eat Out to Help Out or the support we have been giving to investment in hydrogen technology in Glasgow and in Aberdeen, the United Kingdom Government work with both the Scottish Government at Holyrood and Scottish local government to strengthen our United Kingdom. This has been a partnership for good for hundreds of years, and I know it will endure for many more.
Pete Wishart
The right hon. Gentleman will not produce his own opinion polls and he will not believe actual opinion polls, so maybe I will give him a few suggestions as to why support for Scottish independence is so high. He can see if he agrees with me in this. How about this? The power grab; the attacks on our democracy in Parliament; the contempt this place shows for our beautiful country; the constantly saying no to a majority of our people in Scotland; taking our nation out of the EU against our national collective will; the Prime Minister; him. Do any of them sound familiar to him at all?
Michael Gove
What an impressive list. What a pity that so many of the items in it sadly do not stand up to scrutiny. There is no power grab; there is a power surge as the Scottish Parliament receives additional powers as we leave the European Union. I think the hon. Gentleman used the phrase “contempt”. Actually, one of the things that the beautiful country of Scotland has achieved throughout our time in the United Kingdom is improved productivity, improved competitiveness, improved employment and a stronger health service. Sadly, over the last 10 years, some things have blighted progress in Scotland: a declining level of educational attainment as Scotland has gone down international league tables; a failure to procure the basic ferries that will mean that Scotland’s islands are connected to its mainland; and a failure to invest in the sick kids’ hospital in Edinburgh and elsewhere. All of those are failures of the Scottish Government. It is a sad state of affairs when the United Kingdom Government and the Scottish Government, who have so often committed to working together, are faced with a situation where the Scottish Government have comprehensively failed in these areas, but we stand ready to help the people of Scotland do even better in the future.
Sir George Howarth (Knowsley) (Lab)
The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)
We want to see visa-free arrangements for tourists and short-term business visitors as part of our future relationship with the European Union. Temporary entry for business purposes, or mode 4, sets out terms under which a business person can move between trading partners. On short-term business specifically, we are only seeking to lock in on a reciprocal basis arrangements that the UK already offers to third-country nationals.
Sir George Howarth [V]
I thank the Chancellor of the Duchy of Lancaster for that answer. He will be aware, because I wrote to him about it, that some European Union countries, such as Portugal, require people to be on a professional register before they can be issued with a visa to work in that country on a short-term contract. Can he give me some assurance that that problem will be resolved before the end of the transition period?
Michael Gove
The right hon. Gentleman raises a very important question. He is an assiduous advocate for workers and for his constituents. We are working in these negotiations to ensure that, whether in Portugal or elsewhere, those who have skills have the opportunity to work in the European Union to the benefit of both. I am really grateful to him for being so vigilant on their behalf.
Sally-Ann Hart (Hastings and Rye) (Con)
Richard Fuller (North East Bedfordshire) (Con)
The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)
Since the Ditchley lecture, I have been working closely with our colleagues in the civil service to ensure that the Government can deliver our ambitious agenda for this country. Like all institutions, the civil service and, indeed, Ministers must constantly seek to improve how they deliver, and our plans for reform for both civil servants and Ministers will be set out in due course.
Richard Fuller
There is a vital democratic connection between the manifesto commitments that we stand on at elections and the formulation of policies to enact those commitments. In what ways is my right hon. Friend looking to make better use of data and to have better interpretation of data in that vital task?
Michael Gove
My hon. Friend is absolutely spot on. One of the things that we need to do is to transform the way in which we use data in the public sector in order to best deliver for all voters. It is crucial to democracy that Government fulfil their manifesto commitments. We are currently advertising for a new Government chief digital officer to help to lead that transformation. If my hon. Friend were not in his current role, then he would be an ideal person to fulfil that very important job.
Sir Desmond Swayne (New Forest West) (Con)
The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)
We and the devolved Administrations recently published a joint statement showing our commitment to work together to protect the health of our citizens, to protect our communities, and to enhance our economic recovery. Ministers from all the devolved Administrations attended Cobra on 22 September following bilateral discussions with the Prime Minister the day before. Of course I have regular meetings with the First Ministers of all the Administrations.
Sir Desmond Swayne
If the effort against covid is a war, then the first principles are the selection and maintenance of the aim. In March, the aim was to flatten the curve and protect the NHS. Has it changed?
Michael Gove
No. My right hon. Friend is absolutely right, as a distinguished Territorial Army officer as well as a very successful former Defence Minister. Yes, our aim is to flatten the curve, to protect the NHS and to save lives.
Vicky Foxcroft (Lewisham, Deptford) (Lab)
The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)
On Monday, the Paymaster General and I were in Brussels for the latest meeting of the Withdrawal Agreement Joint Committee, which I co-chaired with my EU counterpart, Vice-President Maroš Šefčovič. We made progress on a number of areas, and specialised committees will meet in the coming weeks to conclude further work.
Vicky Foxcroft [V]
The Government have confirmed that they are adopting a public health approach to tackling youth violence. This involves a cross-departmental, multi-agency approach, and a long-term strategy over a minimum of 10 years. Can the Minister therefore offer any explanation as to why the serious violence taskforce has not met for over a year?
Michael Gove
I am grateful to the hon. Lady for raising this question. She has been a consistent voice in this House, and beyond it, for new, imaginative and effective ways of dealing with the scourge of youth and gang violence. Her attention and focus on this issue has helped to improve the work of Government and others. Some of the issues that she mentions are subsumed within the work of the broader criminal justice taskforce that the Prime Minister has set up. I will ask the Home Office to make sure that there is an opportunity for her to be briefed on its work, and if there is more that can and should be done, then we will benefit from her involvement.
Rachel Reeves (Leeds West) (Lab)
We are told that the two sticking points in the Brexit negotiations are state aid and fisheries, but we have now learned from a leaked letter—not from Ministers—that cars made in Britain are likely to face tariffs from 1 January next year, deal or no deal. Detailed negotiations on automotives or on crucial rules of origin requirements are not on the agenda for the crunch talks taking place this week, and there are no further rounds of negotiations planned. So can the Minister tell the House at what point precisely do the British Government give up on the British car industry?
Michael Gove
The hon. Lady, not least during the time when she was Chairman of the Business, Energy and Industrial Strategy Committee, was a strong champion for manufacturing, and indeed this Government are strongly committed to manufacturing, not least in the automotive sector. Of course we are fighting for the best possible deal on rules of origin and diagonal cumulation, and we are seeking a no-tariff and no-quota deal with the European Union. That has always been our consistent aim.
Rachel Reeves
The complacency is staggering. It is the responsibility of the British Government to stand up for British industry. The letter from the Government’s chief negotiator says that they “obviously cannot insist on” tariff-free trade. But our Government should be insisting on the very best deal for car manufacturing and for British industry. There are 150,000 jobs that depend on car manufacturing. I can tell this House that a Labour Government would do that. Will the Minister get out of first gear and prioritise and protect the jewels in the crown of British manufacturing? Will he agree to urgently meet representatives of the automotive sector and the trade unions Unite and GMB to ensure that we do not do away with this vital industry and the vital jobs that depend on it?
Michael Gove
The hon. Lady knows how to wound with her reference to getting out of first gear. I suspect that she knows, as many Members know, that it took me seven attempts to pass my driving test and therefore I am not an expert—
Michael Gove
I took my final successful test in Aldershot, not County Durham, but still.
On the hon. Lady’s serious and substantive point, she is right and I will happily meet representatives of the manufacturing sector, including representatives of the trade unions. It is our aim to secure tariff-free access. Officials from the Cabinet Office talked to Ford Motor Company only earlier this week to make sure that we could support them through the end of the transition period. The hon. Lady is right to emphasise the importance of the sector, not least as we move from internal combustion engine manufacture and towards electric and other zero carbon vehicles.
Rob Roberts (Delyn) (Con)
Michael Gove
My hon. Friend makes an important point. As I said earlier, there was a Cobra meeting just last week at which the First Minister of Wales was an important and constructive participant, and my right hon. Friend the Prime Minister talked to the First Minister prior to that. I enjoy my regular conversations with the First Ministers of Scotland, Wales and Northern Ireland and the Deputy First Minister of Northern Ireland. I think I have probably spoken to the First Minister of Wales more often in the past couple of months than I have to my own mum and dad, and that is a reflection of the high regard in which I hold the First Minister of Wales, not of any lack of regard for my parents in Aberdeen.
Hilary Benn (Leeds Central) (Lab)
Michael Gove
Yes of course. I have found that the Road Haulage Association, valuable organisation though it may be, has not always necessarily been the most constructive partner at every stage in the conversations that we needed to have. Nevertheless, I think it is the case that we are having conversations with it and others to ensure that these and the other IT systems that we need for the end of the transition period are in place.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
Michael Gove
The Government’s campaign to ensure that businesses are ready for the opportunities and to meet and master the challenges that come at the end of the transition period has seen an uptick in the preparedness of UK business, but there is much more that needs to be done. We published our reasonable worst case scenario last week to demonstrate the consequences if we do not all work together to ensure that we are ready for 1 January.
Joy Morrissey (Beaconsfield) (Con)
Michael Gove
We are undertaking a number of strands of work. One is making sure that we can more effectively disperse key decision makers across the UK—to Teesside and other parts of the UK—and my colleague Lord Agnew is leading work to ensure that new senior civil service posts are located outside central London. Work requires to be undertaken to make us more transparent and effective in how we deliver for all parts of the UK. As I said to my hon. Friend the Member for North East Bedfordshire (Richard Fuller), we are doing more to use data and digital tools to make transparent the work of Government.
Paul Howell (Sedgefield) (Con)
Michael Gove
Hon. Members for Sedgefield have always been powerful advocates for the north-east, but none more so than my hon. Friend the current Member. He is absolutely right that Teesside, with Sedgefield in particular and County Durham as well, is at the beating heart of the economic future of this country. We need to invest in the next generation of manufacturing excellence; it is the young men and women of his constituency who will be at the cutting edge of that revolution, and they have no better advocate for manufacturing, for growth and for smarter government than him.
Mr Speaker
I come now to the hon. Member for Bedford, whose birthday it is. Happy birthday, Mohammad Yasin.
Mohammad Yasin (Bedford) (Lab)
Thank you very much, Mr Speaker. The Chancellor of the Duchy of Lancaster has said that over his dead body would he accept United States food standards, so will he take the opportunity to protect our farmers and keep our food clean and safe in a post-Brexit future by enshrining our standards in law when the Agriculture Bill returns to this place?
Michael Gove
I am grateful to the hon. Gentleman for his question and I wish him a happy birthday. I also take the opportunity, while at the Dispatch Box, to wish my right hon. Friend the Member for Maidenhead (Mrs May) a happy birthday. It is her birthday as well today, and I hope that she has an enjoyable day and a relaxing weekend. On the broader question of food standards, it is already the case that in law we uphold very high animal welfare, environmental protection and food safety standards, and there will be no compromise on those.
Elliot Colburn (Carshalton and Wallington) (Con)
Like many small and medium-sized enterprises, Hydro Cleansing in Carshalton and Wallington provides very specialist services that are not available on the open market, yet it still has trouble getting access to public sector contracts. What more can my right hon. Friend do to ensure that SMEs such as Hydro Cleansing can get access to those contracts?
Michael Gove
My hon. Friend makes a very important point. Small and medium-sized enterprises are the backbone of our economy, and in Carshalton and Wallington there are a number of SMEs, effectively represented by him, who deserve a squarer go when it comes to getting access to Government contracts. We need to simplify the process of procurement, and outside the European Union we can do precisely that.
Kate Hollern (Blackburn) (Lab)
Given that today we have heard a number of very positive comments from Ministers about the effectiveness and the quality—sorry, I am trying not to laugh here—of the delivery of test and trace by the private sector, is the Chancellor of the Duchy of Lancaster aware of the recent survey that showed that 74% of the public want those services delivered by local public health teams, which have proven to be far more effective in stopping the spread of the virus?
Michael Gove
The hon. Lady makes an important point. The important thing to say is that, when it comes to the delivery of all public services, what is right is what works. We need to ensure that we have an effective mix of public sector and private sector delivery. It is the case that we would not have been able to increase testing capacity to the current levels that we have without the involvement of the private sector, and it is central Government, local government and the private sector working effectively together that ensures that we can both test, and track and trace, in the way that is best guaranteed to keep our respective constituents safe. So we look at the evidence, but we also ensure that we do everything we can to have the innovation of the private sector and the compassion of the public sector working hand in hand.
James Grundy (Leigh) (Con)
Does my right hon. Friend not agree that it is in the interests of both Unions—the EU and the UK—for the EU to return to the negotiating table, end its games of brinkmanship and sign the deal?
Michael Gove
My hon. Friend is absolutely right. One reason that David Frost is in Brussels today is to seek to ensure that we can get the best possible deal. Progress has been made in a huge number of areas, but, as the hon. Member for Leeds West (Rachel Reeves) pointed out earlier, there are still one or two sticking points—on state aid, the level playing field and fisheries. With good will on both sides, we can achieve resolution. I certainly know that the Government are determined to do that, but of course we have clear red lines that we will not cross. It is vital that we maintain our faith with the British electorate, and ensure that on 1 January we leave the European Union, single market and customs union, and take back control.
Mr Speaker
In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those participating in the next, I am suspending the House for three minutes.
Withdrawal Agreement Joint Committee Meeting
Michael Gove Excerpts(3 years, 7 months ago)
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The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)
The withdrawal agreement Joint Committee met on 28 September 2020 in Brussels, with delegations attending in person and by video conference.
The meeting was co-chaired by the Chancellor of the Duchy of Lancaster and the vice-president of the European Commission, Maroš Šefčovič. The meeting was also attended by representatives of the Northern Ireland Executive and EU member states.
The Committee undertook a stocktake of Specialised Committee activity since the second meeting in June and was updated on implementation of the withdrawal agreement more generally, including the Northern Ireland protocol.
The UK reiterated the importance of commitment by both sides to upholding obligations under the withdrawal agreement and protecting the Belfast (Good Friday) agreement in all respects.
The UK underlined the need for timely and proper implementation of citizens’ rights commitments by the EU and member states. The UK reiterated its commitment to supporting EU citizens in the UK and UK nationals in the EU.
The UK reiterated that the measures set out in the United Kingdom Internal Market Bill are designed to create a “safety net” to ensure the communities of Northern Ireland are protected. The UK was clear that those measures would not be withdrawn.
The UK affirmed its commitment to ongoing constructive engagement with the EU through further Joint Committee meetings and making progress on all issues.
[HCWS476]
EU Exit: End of Transition Period
Michael Gove Excerpts(3 years, 7 months ago)
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The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)
With permission, I would like to make a statement on preparations for the end of the transition period.
There are now just 100 days to go until the United Kingdom leaves the single market and the customs union, and that will be a moment of great opportunity, but also of significant change and challenge. It is vital that we all take the steps required to grasp those opportunities, and to meet and master those challenges. The Government are of course committed to negotiating a new free trade agreement with the EU before the end of the transition period, and those talks are progressing; but whatever the outcome of those negotiations, things will change for businesses and individuals as they trade with and travel to the EU. It is important that we, as parliamentarians, all understand that, and that we all take action to prepare.
Whether we secure a good FTA before January or not, whether we get a Canada-style deal or exit on Australian terms, we will have left the single market and the customs union, and that fact means adjustments for businesses trading with the EU; changes for citizens travelling to the EU; and, of course, new responsibilities for Government in both scenarios.
The superb civil servants at Her Majesty’s Revenue and Customs and their colleagues across Government are working with business to ensure that exporters and importers are ready for new rules. Every business trading with Europe will need to thoroughly familiarise itself with new customs procedures and, whether they develop their capacity in-house or work with a customs intermediary, enhanced preparation is vital. The Government have invested in increasing customs agent capacity and supported growth in the sector, and of course we stand ready to do more. HMRC is also able to support businesses to secure authorised economic operator, consignor and consignee status, which will ease the flow of goods.
Businesses that are fully ready for life outside the customs union will also be better prepared for the growing number of export opportunities outside Europe, as the UK establishes new trade relationships with partners across the globe following the highly successful conclusion of our new trade deal with Japan. Because preparing for customs procedures will be required with or without a free trade agreement, these adjustments cannot be left until the last minute. More and more businesses are becoming fully prepared, but there are still many that have not quite taken the steps they need to take. Our survey evidence indicates that while 78% of businesses have taken steps, just 24% believed that they are fully ready. Indeed, 43% of businesses believe that the transition period will be extended, even though the deadline for any extension is now long past and the date on which we leave the single market and the customs union is fixed in law and supported across the House.
The Government are taking action to prepare for that date, with the XO Committee—the EU Exit Operations Committee, the Cabinet Committee charged with preparations for the end of the transition period—now meeting almost daily and taking decisions on trader and haulier readiness, border infrastructure and fisheries protection. The Committee has met 136 times since it was established, and it will continue to meet to ensure that we have taken all the steps required to prepare, but we also need businesses to prepare. The consequences of a lack of business preparedness will be not just missed economic opportunities for those companies that do not prepare but potentially much wider disruption.
That is why today we are publishing our reasonable worst case scenario planning assumptions, indicating what could happen if we do not all secure improved preparedness. I should stress that this is not a prediction or a forecast; it is just a prudent exercise in setting out what could, in the worst circumstances, occur if we do not improve preparedness and, of course, if our neighbours decline to be pragmatic. The scenario builds on an estimate that only 50% to 70% of large businesses and just 20% to 40% of small and medium-sized enterprises will be ready for the strict application of new EU requirements. In those circumstances, that could mean that only between 30% and 60% of laden heavy goods vehicles would arrive at the border with the necessary formalities completed for the goods on board. They would therefore be turned back by the French border authorities, clogging the Dover to Calais crossing. In that scenario, flows across the critical short-strait crossings could be reduced by up to 60% to 80%, compared with the normal rate, and such circumstances could lead to queues of up to 7,000 HGVs in Kent. Those queues and the associated disruption and delay would of course subside, as unready businesses that had had their goods turned back at the French border would not want to repeat the experience, but it is clearly far better for everyone to be aware now of what is needed to prepare, rather than face additional disruption next year. This is why we are publishing our reasonable worst-case scenario today: not just because any prudent Government will always prepare contingency plans for the worst, but to illustrate the costs of a lack of preparedness while there is still plenty of time to prepare.
The Government are committed to doing whatever it takes to help business, and we have brought in a comprehensive series of measures to help businesses and individuals to adapt to the changes ahead. We are helping businesses that import by introducing new border controls on imports in stages, and full controls will be imposed only from July of next year. We have produced a comprehensive border operating model, which provides a simplified guide, complemented by the work of gov.uk for business, and we will be publishing an updated version with more granular detail in the coming weeks. We have invested £705 million in new technology, infrastructure and jobs at the border, and we are ensuring extra personnel: Border Force has recruited more than 1,000 additional staff, with hundreds more being recruited now. We have also made available over £80 million in grants for organisations to recruit and train new customs agents to support an expanded customs intermediary sector.
A new network of information and advice sites will help to ensure that hauliers are up to speed with their new requirements and the correct paperwork. They will be able to check that their documentation is export-ready using the new Smart Freight web portal. We have complemented all this activity with a public information campaign to help businesses to prepare. The campaign communicates the actions that all businesses need to take before the end of the transition period, and there is a user-friendly checker tool on the gov.uk/transition page, which details exactly what businesses need to do.
The Government are taking all these steps to help businesses to prepare, because change requires preparation. But change is what the British people voted for because, outside the single market and the customs union, the UK can exercise all the freedoms and flexibilities of a truly sovereign state. Outside the common agricultural policy, we can support our farmers better and enhance our natural environment. Outside the common fisheries policy, we can revive our coastal communities and improve our marine environment.
We can strike new trade deals, which help developing nations to grow faster and lower prices for consumers. We can develop tailored policies to better support new technologies and level up our economy. We can invest the money that we currently send to Brussels in the NHS, in our science base and in improving productivity in all the nations of the United Kingdom. We can develop freeports, which bring investment to overlooked communities. We can regulate more smartly, legislate more accountably and strengthen our democracy.
These are great prizes, and the British people voted in the 2016 referendum and the 2019 general election to make sure they were delivered. This Government are committed to honouring those democratic choices, and I commend this statement to the House.
Rachel Reeves (Leeds West) (Lab)
I thank the right hon. Gentleman for advance sight of his statement.
The news today that there could soon be tailbacks of 7,000 lorries in Kent is quite extraordinary. I know that the Government have said that they are committed to building new infrastructure, but I did not realise it meant concreting over the garden of England. Today’s warnings are based on a reasonable worst-case scenario, but given that we have a reasonable worst-case Government, we have to assume that these scenarios could play out quite soon.
In their letter to the road haulage industry, the Government say that business should get ready, but what about the Government? There is a long list of promises for the future in the letter: the UK Government will be contacting haulage companies; they will be running targeted advertising; they will be publishing an updated haulier handbook; and they will launch advice stands at UK service stations. Why are these essential prerequisites for a smooth transition not already here? It is all well and good to tell businesses to act now, but without the systems in place, frankly, it is like telling me to bake a cake but forgetting to turn the oven on.
Sectors from farming to haulage and car manufacturing are crying out for the Government to get this right. These sectors are the backbone of British industry, and they are vital to our everyday economy. If we do not listen to these experts, we will lose exports. I met the Road Haulage Association last week. It is tearing its hair out. It has since met Ministers and described that meeting as “a washout”. Frankly, this is not good enough.
In the summer, I visited the proposed lorry park in Ashford, Kent, where construction had just begun. It was with some dismay that I later read that workmen had encountered a Saxon brick wall in their excavations. I hope this is not a metaphor, but can the Minister assure the House that progress there is on track? Another site apparently earmarked is in Ebbsfleet. It is currently a covid testing centre. With the test, trace and isolate system on its knees, this would be farcical if it were not so serious. Is it really too much to ask for a little bit of joined-up government from Ministers?
On 4 September, the Government granted themselves the power to build additional lorry parks in 29 local authority areas without consulting residents. Can the Minister tell us exactly where those facilities will be? That is the least that local people deserve. Will he also tell the House how many customs agents and intermediaries are trained and in place? This is so important for the system to work.
In the summer, the Government admitted that there would be £7 billion-worth of additional bureaucracy for UK businesses. It is the last thing they need right now, so is that still the most accurate assessment of the costs for businesses?
It has been estimated that 10 new IT systems will be needed to make our new trading relationship with the European Union work. Can the Minister list those IT systems and guarantee that they will be in place and fully operational on 1 January? Given that we were promised a contact tracing app, first in May, then in June and then in July, and it is now September, what assurance can he give that this time the Government will deliver that vital technology and that it will be working and delivered on time? Frankly, the Government’s track record does not inspire confidence.
We have just 100 days until the end of the transition period. Labour’s message to both sides in this negotiation is clear: stop the posturing, and start negotiating. It is in our national interest—it is in all our interests—that the Government get a deal, and get it soon, so that businesses have time to prepare. The Conservatives have had three Prime Ministers and four years since the referendum in 2016. We have seen serial incompetence and countless U-turns. I say to Ministers: get a grip on preparations, and get a grip now. The transition period comes to an end on 31 December. Will the Minister guarantee, not just to this House but to the whole country, that we will be ready?
Michael Gove
I am grateful to the hon. Lady for her questions. She makes the point that there have been three Prime Ministers and four years since the referendum and alleges that there have been some U-turns. This Government have been consistent in our determination to honour that referendum result. If we are thinking of U-turns, I think of the Labour party, which at different times has been in favour of a referendum or of extending the transition period, against our exit from the EU, and it now seems to be resolutely in favour of that exit. I am grateful that the Labour party has now taken the decision to recognise the democratic verdict of 2016, but when reflecting on U-turns, flip-flops and changes of position, we should all exercise appropriate humility.
The hon. Lady asks what is required in order to prepare. We will, of course, be stepping up our intensive co-operation with business, but when the chief executive of the port of Dover appeared in front of the Committee on the Future Relationship with the European Union in June this year, he made it clear that at that point it was possible for any business to know exactly what was required, from the acquisition of an economic operators registration and identification number, to securing a customs intermediary or having in-house capacity. Everyone knew at that stage what would be required on our departure from the customs union and the single market. That information is there, and we want to ensure that more and more businesses, including those who think the transition period will be extended, realise that, as the hon. Lady rightly pointed out, there is no turning back from that date, and we all need to be ready by 1 January.
The hon. Lady asks about our determination to secure a deal. We are determined to do everything we can to secure a deal, but one purpose of this statement is to underline that, whether or not we secure a deal, because we are leaving the single market and the customs union, there are some activities that all businesses must engage in. I hope that Members across the House, whatever their views of the merits of our departure from the European Union, will work with the Government to ensure that businesses are directed towards the information they need and given the support they deserve.
The hon. Lady mentions to her visit to Ashford. I am grateful to her and to others for drawing attention to the need for additional infrastructure at or near the border, as well as Government investment to ensure that we are ready. The Ashford motorway site will provide transit facilities for those who are exporting, and from July 2021, it will also provide facilities for those who are importing. I am grateful to everyone who has played a part in ensuring that that site will be ready on time.
The hon. Lady refers to the Ebbsfleet site, which was acquired by HMRC some time ago, in preparation for a potential no-deal exit before the withdrawal agreement was secured. It was temporarily allowed to become a testing site, but testing facilities have now moved to another location in Kent. Ebbsfleet, along with North Weald, is available as a transit site. It is important that this Government, like all Governments, ensure that we provide not only for the public health of our people, but also for the free flow of commerce.
The hon. Lady refers to customs agents and intermediaries. The £80 million provided has not yet been fully drawn down, and I hope that our exchanges today will encourage businesses and others to ensure they have access to that money. She asks about IT systems, and systems such as the import of products, animals, food and feed system have been in place for some time now. That new IT system will replace the EU trade control and expert system—TRACES—to which we will, of course, no longer have access. Other systems such as the smart freight system or the goods vehicle movement service are in operation and being tested with business now.
As I said earlier, it is vital to recognise that business needs our support to navigate, meet and master these challenges and to take advantage of these opportunities. The Government stand ready to work with everyone across the House to ensure that business is ready, and at what is undoubtedly a difficult time for the economic life of our country, we will do what we can to help.
Damian Green (Ashford) (Con)
I can assure my right hon. Friend that the so-called Saxon wall on the Ashford site is in fact a myth: it is not Saxon and it is not holding up work.
The prospect of 7,000 trucks queuing to cross the channel will send a chill through my constituents, because we know the disastrous effect that has on all the roads in Kent. I very much support my right hon. Friend in his work to prepare the road haulage industry for the end of the transition period, but may I ask about the Government’s own preparations and specifically the smart freight system that he mentioned, which is essential for the smooth running of traffic across the channel? Can he give a guarantee that that system will be fully up and running and operational from January?
Michael Gove
My right hon. Friend makes a number of very important points, and I am grateful to him for clearing up the point about archaeology, which I failed to address in my response to the hon. Member for Leeds West (Rachel Reeves), but his expertise in this area is greater.
My right hon. Friend is absolutely right that we want to avoid the level of congestion that this reasonable worst-case scenario sets out, and he is also absolutely right that that requires people to work together. It requires not just the haulage industry, but in particular those goods exporters who commit goods to haulage to be ready in time. Part of that is the smart freight system, which has been developed and is being shared with business. We want to make sure that people use a relatively simple process to get what will become known as a Kent access permit, which means that they can then proceed smoothly through Kent because they have the material required. If they do not have the material required, through policing, ANPR cameras and other means, we will do our very best to ensure that his constituents are not inconvenienced.
Pete Wishart (Perth and North Perthshire) (SNP) [V]
Today is the day when all the Brexit chickens come home to roost, only of course they will not, because they will be sitting in a 7,000-strong lorry queue on a Kent motorway for two days, waiting to be dispatched. I remember the days of the easiest deal in history, of having our cake and eating it while observing the sunny uplands, when even the Duchess himself told us that we hold all the cards. Well, it seems that the only card we are holding is the joker with his “Spitting Image” mush all over the front of it. What I do not understand is why he continues with the charade of seeking a deal when we know that it is the no deal that they all want and all covet?
I can tell the right hon. Gentleman that the Scottish people are also scenario planning. We are planning our best-case scenario, when we get out of rogue state UK before the worst of this Brexit madness consumes our beautiful nation. His European counterparts must be looking forward to the next round of talks with all the relish of a vegan being served a platter of chlorinated chicken.
We are told that the talks are at a delicate stage; they are so delicate that the EU is close to telling the UK to go and get stuffed, and I can see its point. It is having to deal with a UK that is prepared to tear up the withdrawal agreement that was oven-ready and the greatest deal ever just a few months ago and, in the process, break international law, but there is one good thing that has come out of all this: it has focused Scottish minds on the type of future that we want. Do we want a future in rogue state UK, with all the horror of their low-deal, no-deal Brexit, or a future as a normal European nation making our own decisions free of this clown-shoed Government? As a famous son of Aberdeen, the right hon. Gentleman must know which direction the Scottish people are travelling in.
Michael Gove
I do not know where to begin: chickens or cake. Those questions were a mixter-maxter of mixed metaphors the likes of which even the most impressive makar would be proud. It was a remarkable performance —they usually are. I thank the hon. Gentleman for referring to the fact that “Spitting Image” has fashioned a rubber puppet in my likeness. It is one of the greatest honours that has ever been paid to me, and I hope that other Members will enjoy that recognition in due course.
The hon. Gentleman asked about chickens. One of the things we will do is ensure that we prioritise day-old chicks, and fish and shellfish from Scottish harbours to make sure that they reach the fish market in Boulogne without let or impediment. As we take back control of our waters, and access to our marine resources enables Scotland to get thousands of new jobs and millions in new investment, we want to be able to take full advantage of that. Sadly, one of the Scottish Government’s decisions is that they wish to re-enter the European Union, give up access to that bounty and sell Scotland’s coastal communities short. I gently suggest that that is probably a mistake.
The hon. Gentleman makes the point that the best-case scenario for Scotland is independence. That has long been his position. Of course, while we set out to answer questions in this House, there are many questions about independence that have not been answered. What currency would an independent Scotland use? How would UK pensions be guaranteed in an independent Scotland? What would be the replacement for the furlough scheme in an independent Scotland when HM Treasury was no longer capable of providing that money? As Andrew Wilson’s growth commission has pointed out, an independent Scotland would have to pay a premium for borrowing on international markets. No pounds, no pension and poorer, an independent Scotland—unless the hon. Gentleman can come up with better answers—is the worst case of call.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
May I ask a question that actually matters in relation to jobs and the economy in Scotland? With only 100 days to go to the end of the transition period, will my right hon. Friend confirm that the UK Government have given up on the EU’s resolving the Airbus-Boeing dispute, which has led to damaging tariffs on Scotch malt whisky in the US? Will the UK Government pursue a bilateral resolution of that dispute to see those tariffs lifted and enable the Secretary of State for International Trade to negotiate a free trade agreement that banishes such tariffs forever?
Michael Gove
My right hon. Friend is absolutely right to raise that issue. It is because of the EU’s mishandling of the Airbus project that the US imposed tariffs on malt whisky that did not exist beforehand, hitting one of Scotland’s most important exports. My right hon. Friend the International Trade Secretary has been negotiating on Scotland’s behalf directly with the US to see those tariffs lifted. She has already secured progress on gin and I hope that she will secure progress on whisky. The excellent Karen Betts, chief executive of the Scotch Whisky Association, has been appointed explicitly as an adviser to the Secretary of State to help ensure that the UK Government, with their negotiating weight, can do for the Scotch whisky industry what the EU was not capable of doing.
Hilary Benn (Leeds Central) (Lab)
I am grateful to the Secretary of State for his statement, although a queue of 7,000 lorries would not be much of a great prize for the country. As he knows, for months, those who move goods for a living across the short straits have been warning Ministers that systems and training will not be ready in time. Now the industry says that it is being “fitted up” to take the blame for the Government’s failure to grasp, in the words of one logistics expert involved in the talks, “real-world complexities”. The Chancellor of the Duchy of Lancaster just told the House that the Goods Vehicle Movement Service and the Smart Freight IT systems are in operation. When did that happen?
Michael Gove
They have been developed. They are in operation now. We are refining with business exactly how they should operate for businesses’ benefit.
Mr Andrew Mitchell (Sutton Coldfield) (Con)
I congratulate my right hon. Friend on his “Spitting Image” puppet and on the literary prowess visited on him in recently published diaries.
I remind my right hon. Friend of his considerable generosity in coming to the west midlands to attend a roundtable with manufacturers some 12 months ago. He did that with our outstanding west midlands Mayor, Andy Street. As my right hon. Friend discharges his most important duties as set out in his statement, will he remember two of the points that were raised with him at that roundtable? The first is concern about just-in-time supply chains and the second is the importance of removing tariffs on finished goods and components in those supply chains.
Michael Gove
I am grateful to my right hon. Friend. I was not aware that there were any diaries being published this week.
Michael Gove
I will look out anxiously when I next pass Waterstones in Camberley.
On the substantive point that my right hon. Friend makes, he is absolutely right. There is no better champion of the automotive sector than the West Midlands Combined Authority Mayor, Andy Street. The roundtable that I had with him, as well as the opportunity I have had with him to visit Jaguar Land Rover to talk to Ralf Speth and others, have impressed upon me the importance of doing everything we can to support that sector, on which so many jobs depend. That is why we are so anxious to secure a deal.
Ben Lake (Ceredigion) (PC)
The Minister will be aware of the considerable concern that Welsh ports such as Fishguard and Holyhead will be severely impacted by any delays to the introduction of the goods vehicle movement and smart freight systems. Could he tell the House what proportion of vehicles crossing the Irish sea from Wales to Ireland he expects to face disruption in the Government’s reasonable worst-case scenario?
Michael Gove
Goods coming from Ireland to Wales should not face impediment because we are staging our processes in the way that I described. For goods going the other way, much depends on the determination made by EU member states about the processes they will apply, but we are working with the Welsh Assembly Government to invest in a facility near Holyhead in Anglesey, to ensure that transit and other procedures can facilitate the flow of traffic and trade.
Sara Britcliffe (Hyndburn) (Con)
The people of Hyndburn and Haslingden voted overwhelmingly to leave the EU and for someone who would respect their decision, and yet they are still urging me to press the Government not to extend the transition period. Can my right hon. Friend confirm that the EU has accepted that we will not accept or seek an extension to the transition period and that, at the end of this year, we will deliver on our promise to the British people and regain our economic and political independence?
Michael Gove
My hon. Friend makes absolutely the right point. The certainty of knowing that we will leave on that date and the publication of the information today will, I hope, help businesses to prepare with certainty for the end of the transition period. Every Conservative Member of Parliament was elected on a manifesto which made it clear that we would end the transition period on 31 December. One of the difficulties we have in this House is that, while those on the Opposition Front Bench quite rightly support that position, Labour politicians in power, such as the First Minister of Wales and the Mayor of London, take a different position. The leader of the Labour party was talking yesterday about patriotism. I think it would be patriotic if he were to make it clear that Labour is united in backing the British people.
Feryal Clark (Enfield North) (Lab) [V]
The Government have promised a shared prosperity fund to replace EU structural funding for regeneration and growth since 2017. Despite originally promising a consultation, we have not seen one. There have not even been any engagement events since the Prime Minister took office. When will the Minister publish the framework through which the shared prosperity fund will work, to keep it accountable and prevent pork barrel politics and bungs to target seats?
Michael Gove
The hon. Lady makes an important point. The Secretary of State for Housing, Communities and Local Government will outline how the shared prosperity fund will be distributed. She is right: as a result of our departure from the European Union, we will have more money to spend on our priorities, and we will, of course, spend that money on what the Prime Minister has called the levelling-up agenda. There are parts of our country—overlooked communities and undervalued families—that have been neglected by Labour local authorities for far too long and now have Conservative MPs in this place, and it is vital that their advocacy on behalf of their constituents to improve their productivity is supported. That is why everything from new free ports to increased investment will go to those areas that have been neglected by Labour for far too long.
Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)
The figures that my right hon. Friend has given today on business preparedness for 31 December are concerning. Is not the important advice that he has given that those businesses should either do the paperwork themselves or get an intermediary to do it on their behalf?
Michael Gove
My hon. Friend is right. We want to help and support business. That is why we have provided the funding that we have. One reason for publishing the reasonable worst-case scenario today is to draw attention to the fact that, if we do not all work together, there will be disruption, but if we do work together, there are huge opportunities to be seized.
Kevin Brennan
Seven thousand HGV lorries parked end to end would stretch from this building to Dover—that is the scale of the problem that the Minister has set out. Where will the 29 extra lorry parks be? We need to know that. This is about Government preparedness. His statement seemed to be all about passing the blame on to business for the chaos being caused by his Government.
Michael Gove
No. The hon. Gentleman, by emphasising that figure, is helping, because what we want is to avert that scenario. As I pointed out, it is not a prediction, but it is a warning. He is right that there is a responsibility on Government, which is why we have invested in the sites in Ebbsfleet and North Weald, Ashford, Warrington and the west midlands. Should we need to deal with specific areas of traffic management in Kent, steps have been taken with the Kent resilience forum to do just that. The reason for publishing the scenario today is to avert that happening. I hope he will work with businesses in his constituency to make sure they let Government know what more they need to be ready.
Alun Cairns (Vale of Glamorgan) (Con)
The most senior Labour politician in office in the UK is the Welsh First Minister, and he has called for the transition period to be extended beyond the end of the year. Some people see that as a way of avoiding or delaying Brexit. I can advise my right hon. Friend that the Welsh people voted in greater numbers than the average across the UK to leave the European Union. Can he reassure me that the end of the year will be the end of the transition period?
Michael Gove
My right hon. Friend makes an important point. The result across the United Kingdom—we voted as one United Kingdom—was clear, but it is true that support for leaving the European Union was very strong across Wales. I have great respect for the First Minister of Wales and we have worked well together in dealing with the covid pandemic, but I do think that my right hon. Friend is absolutely right. It would be sensible now for all politicians, rather than saying that the transition period should end later and creating that illusory prospect, to work together to prepare for 31 December.
Christine Jardine (Edinburgh West) (LD)
The road haulage industry has been talked about a lot, and its workers have kept food on supermarket shelves and medicines in our pharmacies through the recent crisis. The statement says the Government have put aside £80 million for customs agents. How many agents do we have at the moment? How many will we need on 1 January? How many will this training provide on 1 January to ensure that the haulage industry can keep operating?
Michael Gove
The hon. Lady is right. The haulage industry has been doing a fantastic job. I make no criticism of the industry or of individual hauliers—quite the opposite. Most of the work required will be required by the companies that are exporting rather than by the haulage industry, and it is they who will either hire customs intermediaries to do the work for them or, as my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown) pointed out, do that work in house. So some of the work is being done in house, some by major players and some by companies such as Kuehne+Nagel, which is expert in the area. The market is moving; the response we have had from some is that, particularly in the past couple of weeks, there has been significantly greater call for their services, and they are recruiting, but the £80 million we have has not been entirely drawn down yet, and we keep the amount we are providing under review to ensure that if more is needed, more can be provided.
Ben Everitt (Milton Keynes North) (Con)
I am sure we are all aware that when we finally leave the transition period, at the end of the year, we will also be leaving behind the common agricultural policy, which has done such damage not only to agricultural economics but to our environment. Will my right hon. Friend detail how the replacement system we are preparing will be better for farmers, fairer, better for our agricultural economy and our environment, and support our target of net zero?
Michael Gove
My hon. Friend makes an important point. As the Secretary of State for Environment, Food and Rural Affairs has pointed out, as we move away from the common agricultural policy, we move to a system where farmers can be supported with public money to provide public goods—for example, increasing the organic content of their soil or contributing to better and cleaner management of our waters—and, as the recent trade deal secured by my right hon. Friend the Secretary of State for International Trade shows, we have improved access for our superb produce to new markets.
Jim Shannon (Strangford) (DUP)
I thank the Chancellor of the Duchy of Lancaster for his statement. Last Friday, I had the opportunity to meet Gordons pharmacy in Newtownards. As a type 2 diabetic, I declare an interest. Many are saying that insulin and other medications will not be able to be sourced post-Brexit. Will the right hon. Gentleman tell me what progress has been made to ensure that the supply of medicines from the EU to the UK, and then from GB mainland to Northern Ireland, will continue after the transition period ends?
Michael Gove
The hon. Gentleman raises a very important consideration, because of the operation of the Northern Ireland protocol. I was discussing yesterday with a Minister of State at the Department of Health and Social Care, and officials in the Northern Ireland Office and other Departments, how we can make sure that the supply of medical goods continues uninterrupted to Northern Ireland. He is quite right that one of the single most important is insulin, because of the particular requirements that diabetics like him, and indeed my father, faces.
Mary Robinson (Cheadle) (Con)
I am grateful for the statement setting out the current position. During these uncertain times, it is vital that businesses have as much clarity as possible, especially the many businesses in Cheadle that rely on trade with the EU. In addition to the preparations my right hon. Friend outlined, we can give those businesses the certainty they deserve by agreeing a free trade deal with the EU this year. Can my right hon. Friend therefore reassure my constituents that the Government continue to work towards that prime objective?
Michael Gove
Yes, absolutely. The Government are absolutely committed to securing a Canada-style free trade agreement. One of the difficulties we have had in the talks is that, as our negotiator David Frost pointed out, the European Union still has not come to grips with the fact that we will be a sovereign equal, not in the size of our economy but in our democratic mandate. There are, therefore, still one or two sticking points, because it is seeking to tie us to its rules rather than recognising that we will follow our own path. However, I am confident we can overcome those difficulties and secure a free trade agreement, which would be in everyone’s interests. Of course, many preparations that businesses are required to undertake are the same whether or not we have an FTA.
Stephen Farry (North Down) (Alliance)
Businesses in Northern Ireland and elsewhere urgently need to see the detail of the border model between Great Britain and Northern Ireland. Previously, the Chancellor of the Duchy of Lancaster promised that that would be published by the end of July. It is desirable that we see the outcome of Joint Committee and future relationship negotiations, but they are not essential for that. Will he therefore give a revised commitment on when we will see that?
Michael Gove
Yes. The hon. Gentleman makes a very good point. The Joint Committee should, God willing, meet next Monday in Brussels. I will be seeing Maroš Šefčovič then, as we seek to make progress on those matters. The hon. Gentleman will know that we made more than £200 million available through the trader support service and support for IT to help businesses in Northern Ireland. Even though it has been a subject of contention in this House, the provisions in the United Kingdom Internal Market Bill are there to make sure that Northern Ireland’s businesses do have a guarantee that, whatever happens, they will not be required to have export declarations when goods move from Northern Ireland to Great Britain, because the principle of unfettered access is so important.
Julie Marson (Hertford and Stortford) (Con)
I welcome my right hon. Friend’s statement, in particular the extra £705 million for infrastructure at our border. Will he be able to update us a bit more on how the technological solutions are developing, such as the smart freight service, to facilitate movement across the borders?
Michael Gove
I am very grateful to my hon. Friend for making that point. Yes, there are a number of systems. For example, I mentioned earlier IPAFFS, which is critical for those in the agrifood sector and has been developed for some time now. The smart freight system and the GVMS are being operated within Government at the moment, in consultation with business, and we hope they will go live so they are there for all to see in their ideal form in the course of the next few weeks.
Daniel Zeichner (Cambridge) (Lab)
In just 100 days, all food exports to the EU will require an export health certificate and an authorised vet to sign it off. Do we have enough vets to do that? I understand that £80 million has been made available for the 50,000 custom agents required. Can we be told how much of the money has been drawn down and put in place? As a former IT person, may I ask the right hon. Gentleman if he is really confident that the IT systems will be in place and working?
Michael Gove
Those are three very good points. On the question of vets yes, but there is a requirement on every part of the United Kingdom to play their part. For example, we have been talking to the Northern Ireland Executive about making sure that the specific need for vets and the new border control posts in Northern Ireland is satisfied. It is the case that there are vets and others who can carry out that job across the UK, but for example I hope, fingers crossed, that the Scottish Government have provided enough money to Aberdeenshire Council to make sure that those who provide export health certificates in the harbours of Fraserburgh and Peterhead are in place. I do not think that voters in either Fraserburgh or Peterhead would forgive the Scottish Government if they had not made that investment and had used the money elsewhere. I am sure they will not have done so.
On the point about IT, we are working hard, internally and with authoritative expertise, to make sure that those IT systems will work. I do not think any of us can make a confident prediction that everything will always be perfect, but some of the very best people in Government and in the private sector are committed to making them work.
Jo Gideon (Stoke-on-Trent Central) (Con)
Would my right hon. Friend agree that, as we reach the end of the transition period, as well as seeking a positive future relationship with the European Union as a sovereign independent nation, we are well positioned to take advantage of new global opportunities? Will he join me in congratulating advanced ceramics research company Lucideon in my constituency, which is set to receive a £1 million boost as a result of the new Japan trade deal that the UK and Japan have agreed in principle? Lucideon’s joint venture with a Japanese partner will bring new jobs to Stoke-on-Trent Central and plans for an advanced ceramics campus in north Staffordshire a step closer.
Michael Gove
I agree with my hon. Friend that that is unmitigated good news. The ceramics sector is well placed to take advantage of new international trade deals, and it could not have a more effective champion than my hon. Friend.
Sir Mark Hendrick (Preston) (Lab/Co-op) [V]
With the end of the transition period fast approaching and our borders with the EU woefully ill-prepared for the trading arrangements a no-deal Brexit will bring, may I ask the Minister how the £700 million he has announced will, over the three months he has available, enable us to recruit and retrain the hundreds of new customs officers required to carry out border checks? With so little time left to fully test, install and commission the smart infrastructure technology required to implement those checks, is this not just another example of what the whole of Brexit has been about—wishful thinking and self-deception, rather than accepting the reality on the ground?
Michael Gove
The first part of the hon. Gentleman’s question was, I think, very apposite. The £705 million is being made available of course to ports. It will also help pay for inland infrastructure, but I should stress that much of that infrastructure will be required only when we ourselves are imposing checks, which will not come until next July. Any individual Member of this House who will be seeing infrastructure built in their constituency will be contacted, if they have not already been, by my colleagues Lord Agnew and the Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez).
Aaron Bell (Newcastle-under-Lyme) (Con)
The people of Newcastle-under-Lyme voted very clearly to leave the European Union, but contrary to the wild claims from the SNP spokesman earlier, they are not seeking a no deal. They want a good, fair, constructive deal negotiated in good faith with the EU, but they do want this over and done with. Would the Minister join me and them in rejecting the calls from senior members of the Labour party, such as the Welsh First Minister and the Mayor of London, to extend the transition period? We cannot have that happen, because if it does happen, it will only lead to more uncertainty for business. We need to move on.
Michael Gove
My hon. Friend makes an absolutely important point. We have set out a timetable, and sticking to that timetable will enable people, I hope, to take all the steps required. He makes the point that we on this side of the House do not seek a no deal: quite the opposite—we are keen to seek a deal. But one question that has never been answered is if there were ever a vote for independence in Scotland—I am sure there will not be ever, but if there were ever—the SNP has never made it clear whether it would rely on there being a negotiated settlement or would go for a no-deal Scexit. It is one of the many questions that the SNP declines to answer.
Andrew Gwynne (Denton and Reddish) (Lab) [V]
I was listening very carefully to the Chancellor of the Duchy of Lancaster about business preparedness, not least because it is only three months to the end of the transition period. Businesses in the food and drink industry in my constituency would love to be able to be ready for Brexit, but there is no guidance yet about what labels businesses need to use to legally sell their goods in the EU and in Northern Ireland next year. When will the Government announce these measures, so that food and drink manufacturers are not held back from making the preparations they need to make?
Michael Gove
The hon. Gentleman makes an important point. Some of that detail has already been published, but there is more that depends on the negotiations. If he gets the companies in his constituency with particular concerns to get in touch with me directly, I will work with him to provide them with the information we have.
Sir Desmond Swayne (New Forest West) (Con)
The markets Bill does not break any law, does it?
Patricia Gibson (North Ayrshire and Arran) (SNP)
The UK Government fought an election and won a majority in this House on the basis that they had an oven-ready Brexit. In March last year, the right hon. Gentleman said:
“We did not vote to leave without a deal”;
now, we are staring down the barrel of a no-deal Brexit, the consequences of which will be magnified by the economic fallout from Brexit. What does the right hon. Gentleman say to those who voted for his Government on the basis that they had an oven-ready Brexit and now feel utterly betrayed?
Michael Gove
I have not met anyone in that position. The truth is, of course, that we left on 31 January. Increasingly, I find lots of people in Scotland who, the more they look at the position of the Scottish National party and the Scottish Government, are becoming yes-to-no voters—that is the growing trend.
Stephen Hammond (Wimbledon) (Con)
I welcome my right hon. Friend’s statement. He will know that there are two important industries in the UK that begin with the letter F: one contributes £1.4 billion to the UK economy; the other contributes £132 billion and employs more than a million people. In his July statement, my right hon. Friend committed the UK to upholding international norms so that there is a free flow of capital and efficient markets. Is he convinced that he can still deliver those international norms so that there is delegation? Is he convinced that there will be equivalence for UK financial services in July 2021?
Michael Gove
I am confident of that. One thing about equivalence is that it is what is called an autonomous process in the EU. To be very fair to the EU, since the Prime Minister drew attention to the slow progress of some of those autonomous processes, it has meant an acceleration, so I am confident, yes.
Justin Madders (Ellesmere Port and Neston) (Lab)
I do not think we have had clarity in response to earlier questions as to how many customs agents are in place now. Will the Secretary State provide that figure? Will he also guarantee that when the time comes, any business that needs the services of a customs agent will be able to access one?
Michael Gove
Customs agents are provided by the market. It is the case that a number of customs intermediaries’ businesses are growing, and a number of other businesses will employ people in that role. Just as I cannot precisely state at any given time in a dynamic market how many people are doing exactly what job, I can state that the £80 million that we have made available has not yet been fully drawn down. Any company that operates in customs will know that come 1 January there will be increased demand for its work, so this is an opportunity to expand and Government stand ready to help.
Brendan Clarke-Smith (Bassetlaw) (Con)
As we reach the end of the transition period and take back control, I welcome the Government’s United Kingdom Internal Market Bill. One issue that has been raised many times during the debates is the EU’s refusal to give us third country listing. Does my right hon. Friend agree that third country listing is vital to agreeing a deal with the European Union? Will he assure me that he will continue to push to make the EU take reasonable steps to make sure that it happens?
Michael Gove
My hon. Friend is absolutely right. The reluctance to grant, or slow pace in granting, third country status for food exports to the UK has been concerning, but thanks to the Prime Minister’s having drawn attention to the issue, progress has been made.
Gareth Thomas (Harrow West) (Lab/Co-op)
Further to the question asked by the hon. Member for Wimbledon (Stephen Hammond), the Chancellor of the Duchy of Lancaster will know that financial services firms in the UK generate a huge number of jobs, a not insignificant number of which are held by my constituents. Will he tell the House exactly what progress has been made on the vital issue of achieving equivalence, and what remains to be sorted out?
Michael Gove
The hon. Gentleman makes an important point. Equivalence is decided by the EU. It is an autonomous process separate from but occurring in parallel with the negotiations. As I mentioned earlier, with the Prime Minister having drawn attention to the slow pace in these processes, we have seen an acknowledgement of that on the EU side. The EU is obviously a sovereign equal and will make its own decisions, but I should say that it helps EU businesses to have access to the broad and deep capital markets that we have in this country. Were the EU to cut itself off from our capital markets and financial services, the cost of EU businesses’ transactions would increase and their shareholders would lose out.
Mr Richard Holden (North West Durham) (Con)
This Government were elected with an overwhelming mandate to get Brexit done. In fact, substantially in order to ensure that the 2016 vote was respected, constituencies such as mine and others across the blue wall returned Conservative MPs for the first time ever. Will my right hon. Friend confirm that, in order that to give businesses clarity and to respect the will of the people of North West Durham, there will be no extension to transition?
Michael Gove
Yes. My hon. Friend is a brilliant advocate for the people of Consett and the whole of his constituency. There will not be an extension.
Chris Stephens (Glasgow South West) (SNP)
In the worst-case scenario that the Secretary of State outlined, on the basis of no employment Bill, which the Government had committed to, and the European Union looking to strengthen workers’ rights for zero-hours contract workers, agency workers and those workers susceptible to short-term shift changes, are the Government still committed to at least matching the employment protections of the European Union?
Michael Gove
It is a good question from the hon. Gentleman. He has a distinguished background in the trade union movement and elsewhere in defending workers’ rights, and I pay tribute to him for his work in that area. Yes, we want to ensure that we protect workers’ rights. We will always look at what the EU and other jurisdictions are doing to see where we can match and, where possible, exceed the protections offered.
Jacob Young (Redcar) (Con)
I and many of my constituents want to see supertrawlers banned from destroying our marine wildlife and damaging our fishing towns, which is something that we cannot do while part of the EU. My right hon. Friend has long been committed to support our fisheries as we leave the EU, so will he confirm that after 31 December we will have the ability to stop foreign supertrawlers operating in our seas? At a time when our negotiations are at their fiercest, will he stand firm on our commitment to take back control of our waters?
Michael Gove
My hon. Friend is absolutely right that one of the benefits of departing from the EU is that we can safeguard our marine environment from predators, and we will take all steps necessary to do so.
Carla Lockhart (Upper Bann) (DUP)
Seven thousand truck long queues in Kent and two-day delays to trade would be disastrous for UK businesses, but so too would any delays and queues as a consequence of checks imposed within the UK as a result of the repugnant Northern Ireland protocol. What assurances will the right hon. Gentleman give me and businesses in Northern Ireland that no such delays will feature at Larne? Will he give an assurance to meet me and the major agrifood sector businesses in the not-too-distant future?
Michael Gove
I am grateful to the hon. Lady for raising that and for the opportunity I had to visit Ulster Carpets in her constituency over the summer. The Government are committed to ensuring that the Northern Ireland protocol operates in such a way as not in any way to disadvantage Northern Ireland’s agrifood businesses. I would be delighted to meet them with her.
Sir Edward Leigh (Gainsborough) (Con)
Despite all the scare stories, surely there is no bar to a deal. We will surely not undercut the EU on state aid—we will not return to picking winners and all that rubbish—and with the regulation of business, we will not create a bargain-basement economy or produce rust buckets like the Morris Minor I drove to university with a hole in the floor in 1968. Breaking news just now, however, is that if the deal is conducted late, there might be not indeed an extension of the transition period, but a two-year implementation period. I want now an absolute commitment from the Secretary of State: no extension to transition and no implementation period. We want a clean break, as we promised the electorate, at the end of this year.
Michael Gove
Everything my right hon. Friend said I completely agreed with, apart from one thing—I cannot believe that he went to university in 1968. He looks much younger than that.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
This morning I met the North East England chamber of commerce and local businesses. We discussed the massive investment in technology and digital skills required by the pandemic to move processes, services and products online. Now we have another transition to face, so will the Minister list each IT system with which a business will have to interface, and when it will be available to be tested by them so that they can begin the process of preparedness?
Michael Gove
The border operating model, which we published earlier, outlines the IT systems—
Michael Gove
It was published in July. It outlines the IT systems with which business will interact, but of course we are augmenting and updating it, so it will be published later this month.
Damian Collins (Folkestone and Hythe) (Con) [V]
Does the Chancellor of the Duchy of Lancaster accept that although the worst-case scenario situation of 7,000 queuing lorries would be intolerable for people in Kent and my constituency, even only half that number would require the closure of the coast-bound M20? Will he assure us that he will do all he can to ensure that that is not the reality that people are confronted with next year?
Michael Gove
My hon. Friend makes a very good point. It is precisely because we want to avoid that scenario that we are sharing it today in order that Government can be held to account for doing everything possible to avoid it, and so that we can work with business in order to avoid it. We have to be ready for the worst, which is why we have taken appropriate contingency plans. In order to avert that scenario, we want to work with him and those in his constituency, and businesses everywhere, to ensure that we can be ready. Eurotunnel, in his constituency, has been brilliant in the support that it has been giving to the business sector as well.
Bill Wiggin (North Herefordshire) (Con)
How much does my right hon. Friend think the EU will lose in the event of no deal? Is not this figure not helped by senior Labour politicians suggesting that we might extend the transition period?
Michael Gove
My hon. Friend is absolutely correct that no deal is in nobody’s interests. The fact that the First Minister of Wales or the Mayor of London are holding out the prospect of an extension to the transition period does not contribute to the concentration of minds and—to be fair to the hon. Member for Leeds West (Rachel Reeves)—the productive work required in order to secure a deal.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
The London School of Economics estimates that a no-deal Brexit could lead to a 63% decrease in exports to the European Union. For the salmon farmers, the crofters producing lamb and the shellfishermen in my constituency, that could be absolutely ruinous. What comfort can the Chancellor of the Duchy of Lancaster give to the people in my constituency whose livelihoods depend on that export market?
Michael Gove
The right hon. Gentleman makes an important point. One of the things that the Government have always stressed is that in the event of a no-deal exit, the sectors that would be most adversely affected by tariffs would be in the agriculture sector, with red meat producers particularly hard hit. That is why we are anxious to avoid that outcome and to secure a deal. Come what may, there will be new processes, but also new markets, for producers in Orkney and Shetland. I will work with him to make sure that, in whatever eventuality, we support the high-quality producers in his constituency.
Dehenna Davison (Bishop Auckland) (Con)
My right hon. Friend will know that I share his vivacious optimism about Britain’s future as an independent sovereign trading nation, but the farmers of Teesdale and Weardale are understandably concerned about what happens if we get to the end of the year without an agreement. Will he reassure the House and my constituents that all is being done by our negotiators to reach that deal? Does he agree, in terms of the future of Britain’s trading policy, that our independence as a trading nation will provide great opportunities for our agricultural sector?
Michael Gove
I am grateful to my hon. Friend for attributing to me vivacity as well as optimism. I am certainly optimistic, but it is Conservative Members who were elected in the 2019 general election who provide the vivacity, including herself. She is absolutely right to raise the concerns of farmers in Teesdale and Weardale, and indeed across the north-east. As I mentioned in response to the previous question, it is red meat producers who, in the event of no deal, will most need our support, but it is also red meat producers, particularly lamb exporters and sheep farmers, who have a great deal to gain. One of the biggest consumers of lamb and sheep meat in the world is the US. At the moment, our access to the US market is restricted. It is one of many markets, including markets in the far east and the middle east, to which we could have access. My hon. Friend’s advocacy on behalf of the farming sector and on behalf of free trade shows the way to future prosperity for the constituents she serves so well.
Withdrawal Agreement Joint Committee
Michael Gove Excerpts(3 years, 7 months ago)
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The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)
The fourth meeting of the Withdrawal Agreement Joint Committee will take place on 28 September 2020 in Brussels, with delegations attending in person and by video conference.
The meeting will be co-chaired by the Chancellor of the Duchy of Lancaster, Right hon. Michael Gove MP and Vice President of the European Commission, Mr Maroš Šefčovič.
The agenda will include three items:
Introduction and opening remarks from co-chairs
Stocktake of Specialised Committee meetings
Update on withdrawal agreement implementation
Citizens’ rights
Protocol on Ireland/Northern Ireland
Protocol on Sovereign Base Areas in Cyprus
Protocol on Gibraltar
Financial provisions
AOB and concluding remarks the UK delegation will include:
Chancellor of the Duchy of Lancaster, Rt Hon. Michael Gove MP
The Paymaster General, Rt Hon. Penny Mordaunt MP
Representatives from the Northern Ireland Executive have also been invited to form part of the UK delegation.
[HCWS465]
Point of Order
Michael Gove Excerpts(3 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Wendy Chamberlain (North East Fife) (LD)
On a point of order, Madam Deputy Speaker. We were informed yesterday that the Paymaster General’s calls are set to resume. Members will remember that those calls were used earlier this year, while the House was not sitting due to the coronavirus pandemic. Many Members were very concerned by the lack of opportunity for scrutiny during that period, and that concern is ongoing. I am still struggling, as I know other hon. Members are, to get a response from Ministers from many Departments, including the Treasury, and I am concerned about what the resumption of these calls implies. I am sure that Members from across the House will agree that any resumption of the calls must be in addition to existing scrutiny, rather than a substitute that allows Ministers to be required to come before the House less frequently.
Madam Deputy Speaker, I should be grateful if you would offer guidance on how best to seek assurances from the Government that they are committed to parliamentary scrutiny, and that the resumption of these calls does not herald new limitations on the mechanisms available to Members of the House to hold Governments to account.
The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)
Further to that point of order, Madam Deputy Speaker. I am grateful to the hon. Lady for raising that point of order. The Paymaster General, who of course is a Cabinet Office Minister and does an excellent job in keeping Members from all parties updated, and has done throughout the difficult time of the coronavirus pandemic, is resuming the calls to augment the scrutiny that, quite rightly, Ministers will be exposed to at this Dispatch Box, as we all seek to ensure that we do the right thing by all our constituents at this inevitably testing time.
Madam Deputy Speaker (Dame Rosie Winterton)
I thank the hon. Lady for that point of order. I am very glad that the Chancellor of the Duchy of Lancaster was present to respond, and I hope that that will give her some reassurance.
In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those participating in the next, I am suspending the House for three minutes.
UK’s Future Relationship with the EU
Michael Gove Excerpts(3 years, 7 months ago)
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The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)
The Government have made a commitment to update Parliament on the progress of our future relationship negotiations with the EU. This statement provides an update on the eighth round of negotiations.
Led by the UK’s chief negotiator, David Frost, negotiators from the UK and the EU held discussions in London on 8 to10 September 2020. There were substantive discussions on almost all issues.
Discussions covered all workstreams including:
Trade in goods: core areas of the goods elements of the FTA, including the UK’s regulatory regime on SPS and proposals for product specific rules of origin.
Trade in services, investment and other FTA issues: including professional qualifications, investment, telecommunications and intellectual property (including geographical indications).
Fisheries: quota-sharing and stock lists.
“Level playing field”: covering subsidies, tax and dispute settlement.
Energy: including civil nuclear co-operation, nuclear safety and electricity trading.
Transport: road haulage standards, aviation security and air traffic management (ATM).
Law enforcement: including mutual legal assistance, Prüm, extradition, and criminal records exchange.
Mobility and social security co-ordination: social security co-ordination arrangements.
Participation in Union programmes: financial management, EGNOS (European geostationary navigation overlay service), EU SST (space surveillance and tracking) and Peace+.
These were useful exchanges. However, a number of challenging areas remain and the divergences on some are still significant. We have been consistently clear from the start of this process about the basis on which agreement is possible between us and these fundamentals remain.
We remain committed to working hard to reach agreement by the middle of October, as the Prime Minister set out in his statement of 7 September. Negotiators have agreed to meet again, as planned in line with the terms of reference, in Brussels this week to continue discussions.
[HCWS451]
United Kingdom Internal Market Bill
Michael Gove ExcerptsMonday 14th September 2020
(3 years, 7 months ago)
Commons ChamberRead Full debate United Kingdom Internal Market Act 2020 View all United Kingdom Internal Market Act 2020 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Notices of Amendments as at 11 September 2020 - (14 Sep 2020)
Ian Blackford
The right hon. Member makes a very good point. There are policies that we are very proud of introducing in Scotland, such as minimum alcohol pricing, which was so critical in dealing with misuse of alcohol in Scotland, but there is no guarantee that we would be able to bring in such initiatives in the future. We would have to go cap in hand to Westminster for authority. The days of us being “too wee, too poor, too stupid” are well and truly over.
The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)
Don’t be so hard on yourself.
Ian Blackford
The sneering contempt that we get from the Minister for the Cabinet Office—he really ought to be ashamed of himself.
In part four, provision is made for the establishment of a new unelected monitoring body called the Office for the Internal Market. The Bill proposes to hand that unelected body—we often hear about unelected bureaucrats, but here we are—the power to pass judgment on devolved laws, directly over the heads of the Scottish people’s chosen Government. It will also lead to an open invitation for businesses with deep pockets to challenge the democratic decisions of our Scottish Parliament.
Clause 48 reserves state aid: one of the most blatant power grabs in the Bill, and that is a very high bar. We know that the state aid provisions will merely mirror those of the World Trade Organisation. That will inevitably make a deal with the EU even more difficult and provide little or no scrutiny. Finally, there is clause 46: the ultimate insult and the ultimate attack on devolution. If this legislation is forced through, powers will be given to UK Government Ministers to design and impose replacements for EU spending programmes in devolved areas: infrastructure, economic development, culture and sport, education and training—all of it.
The Government’s agenda is clear. The Transport Minister would have input and decision-making powers over road building in Scotland, over the heads of the Scottish Parliament. We won a referendum in 1997, when 75% of the people of Scotland voted to have a Parliament. We have elections every five years. Manifestos are put in front of the Scottish people. It is the settled will of the people that that Parliament has control over health, education, housing and transport. How dare this Tory Government feel that they can come in and impose their will on those areas of democratic accountability in Scotland? What an insult to our Parliament in Edinburgh and our Parliament in Wales. I say to this Government, “We will stand up against this attack on our Parliament, and on those that enshrined that Scottish Parliament.”
The agenda of the Conservatives is clear. The Tories will seek to bypass democratically elected MPs and Ministers in Scotland. Union Jack-badged projects will be paid for and prioritised ahead of the priorities of our Parliament. Bitter experience is a good teacher. Tory Governments cannot be trusted to spend money in Scotland.
We remember what happens when the Tories control state aid spending. In 1992, John Major’s Government diverted cash from the highlands to try to boost dwindling Tory support in south-east England. And we have not forgotten that this legislation comes from a Prime Minister who bragged that a pound spent in Croydon has far more value to the country than a pound spent in Strathclyde. That is the way that the Conservatives look upon Scotland. The Tories will look after their own interests. They will never—not ever—support Scotland’s interests. This Bill would allow them free rein to serve their own narrow needs.
At its heart, this Bill confirms the centralising obsession of this UK Government. Those in No. 10 who not so long ago made a lucrative living scribbling endless newspaper articles about a supposed centralised Brussels elite are now attempting to centralise and grab every devolved power that they can get their hands on. Apparently, the Tories are not only determined to preside over the death of devolution; they are clearly determined to oversee the death of irony, too.
The real reason behind this Government’s hunger to pursue this power grab is what should concern us most, though. Paragraph 26 of the explanatory notes makes it clear that the Business Secretary will be given the power to change exemptions from the Bill at any time. In effect, this is a Trojan horse allowing Tory Ministers to encroach even further on devolution, and we know where that will inevitably lead. In order to deliver bad trade deals—the only deals they can now realistically get—the Tories want private health companies to have a guaranteed right to trade unhindered in Scotland and across the UK. With no protections for our Parliament, this would fundamentally weaken and undermine our national health service in Scotland. The same is true for private water companies, with the same threat of undermining standards and raising prices in Scotland. The Tories’ real agenda is about imposing the creeping privatisation and rampant deregulation that they are already implementing in England.
I am heartened by one thing: the scale of the threat of this legislation is equalled by the scale of the opposition with which it has been met across Scottish society. Those on the Government Benches, especially the Scottish Tories—mind you, there is only one of them in here—would do well to listen to this. The National Farmers Union Scotland confirmed that
“the proposals pose a significant threat to the development of Common Frameworks and to devolution.”
The chair of the Scottish Crofting Federation, Yvonne White, expressed fear that
“the proposed legislation will lead to a race to the bottom, threatening our high standards in food, environment and animal welfare, thus damaging the image of Scottish produce.”
She concluded:
“These standards are best safeguarded by the Scottish Parliament.”
[Interruption.] I hear someone shouting from a sedentary position, “Don’t let the facts get in the way.” That is a statement from the chair of the Scottish Crofting Federation. It might not suit those on the Tory Benches, but that is the reality.
The Scottish Council for Development and Industry believes that
“mutually agreed common frameworks should be the foundation of the UK internal market, rather than the imposition of a single approach across the UK in devolved policy areas.”
The SCDI is absolutely right. Why is the Joint Ministerial Committee not finishing the work it was engaged on in delivering those frameworks on a consensual basis? But of course that does not suit the Tory Government, who want to attack our democratic institutions.
The General Teaching Council for Scotland said that supporting the Bill
“would undermine the four UK nations’ devolved education functions.”
Ian Blackford
I hear the Cabinet Office Minister shout, “How?” Perhaps he should go and talk to the General Teaching Council, and it will give him its views directly. [Interruption.] Really? We have the Business Secretary, who is supposed to be taking this Bill through, sitting laughing—laughing at the legitimate comments made by stakeholders in Scotland. It is little wonder that the Tories are rejected in the way they are at the polls in Scotland.
On its impact on devolution, Professor Nicola McEwen, co-director of the Centre on Constitutional Change, found that the internal market Bill
“limits policy divergences and risks stifling innovation”.
The Scottish Trades Union Congress stated that the Prime Minister
“is uniting political parties, trade unions and wider civil society in Scotland against a power grab which would see UK Government interference in previously devolved matters and a rolling back of the”
devolution
“settlement we voted for in 1997”.
What is happening is that the Tories are uniting civic Scotland against this attack on our Parliament and its powers—farmers, crofters, teachers, industry, academics and trade unions: a coalition of opposition to this Bill and this Tory agenda. Civic Scotland has made its voices and views crystal clear. Anyone supporting this Bill will be ignoring their interests.
We all have a responsibility to listen to these voices. The new Scottish Tory leadership have been running around half the summer, telling anyone who would listen just how keen they were to stand up to the Prime Minister when they think he is wrong. Well, you have that chance tonight. Listen to the coalition of opposition in Scotland rather than your masters in Downing Street. If the Scottish Tories follow their colleagues into the Lobby in support of this power grab, they will expose themselves as being weaker than ever, as failing to stand up for Scotland’s interest against a London power grab. The very first test of the new Scottish Tory leadership will have turned out to be their biggest, and they will have failed. They will simply have shown themselves to be the Prime Minister’s poodles, turning their back on Scotland’s interests. They will have failed once again to stand up for Scottish democracy.
There is also a special responsibility that falls on the Labour party. Much of the devolution project is a legacy of its Government in 1997. This Bill is a direct attack on that legacy. We must collectively oppose the Bill. I am urging the Labour party at every parliamentary stage to take full responsibility and work collectively with us to hold the Government to account. The Welsh Labour Government are advising the same. They have said that
“the UK Government plans to sacrifice the future of the union by stealing powers from devolved administrations”,
and that it is
“an attack on democracy and an affront to the people of Wales, Scotland and Northern Ireland, who have voted in favour of devolution on numerous occasions.”
That statement and its analysis comes to the very core of the argument. Over the course of the last 21 years of devolution, Scotland’s people have benefited from the progressive and divergent priorities that our own governance has given us the freedom to pursue. They have seen it, experienced it and come to fiercely value it. Even with limited powers, Scotland’s Parliament and our Government have always sought to mitigate or reject the Conservative policy paths set out at Westminster. We have forged our own path. If this legislation had been in force previously, it would have prevented many progressive policies and divergent choices.
Over recent months, that conviction and belief in our Parliament has grown. People have seen the exceptional leadership of our First Minister throughout the course of this terrible pandemic. It has reaffirmed their faith and confidence in our institutions, our governance and our nation. Our people have come to a simple but powerful conclusion: decisions about Scotland are best made in Scotland. Right now, poll after poll—the latest one only last Friday—shows that a growing majority have come to the conclusion that all decisions and all powers should now be fully entrusted to the people of Scotland.
The Tories have never been able to reconcile themselves to that truth. As usual, when they are confronted with change, they are in the depths of denial. Instead of accepting the right of Scottish people to choose their own future, they are trying to grab the powers back that were returned to Scotland 21 years ago. That is exactly what this law is designed to do. It is a full-frontal attack on Scotland’s Parliament and on Scotland’s democracy.
It has been stated that power devolved is power retained. This implies that this Tory Government can do anything they like with the powers of our Parliament. That is what this Bill is about. It gives them direct spending in Scotland in devolved areas: in health, education, housing and transport. Just dwell on this. We send parliamentarians to Holyrood so that they can enact the people’s priorities, but Westminster is about to ride roughshod over that. If the Bill passes, this Government in London can interfere directly in all those devolved areas, over the heads of the Scottish Parliament and our people. There is only one way to stop them—only one answer, and only one option.
The only way to defend Scotland’s Parliament and its powers is by becoming independent. Our Parliament will consider a new referendum Bill before the end of 2021. The chance to choose an independent future is now coming. No amount of Tory denial and disruption can stand in the way of Scotland’s people’s democratic right to choose a different and better future, and once it comes, people will have their democratic say. I am more confident than ever that they will choose to be part of a new Scotland back at the heart of Europe. We can choose to leave behind the chaos and instability of Westminster. We can get on by becoming an independent, international, law-abiding nation.
The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)
It is always a pleasure to follow the hon. Member for Leeds West (Rachel Reeves), who always makes her case with clarity, with force and from principle. I know that everyone who listened to her speech will have recognised the powerful case that she was making. I did not agree with everything that she said, but I am sure everyone in the House recognises that she is a strong and effective advocate for her party and her principles.
I thank all those who spoke in this debate. We had more than 60 speeches, all of them I think contributing to the reputation of this House. We had very thoughtful speeches of course from a variety of Select Committee Chairs and also some very passionate speeches, including, as the hon. Lady mentioned, from the hon. Member for Foyle (Colum Eastwood) and the right hon. Member for East Antrim (Sammy Wilson). Those two representatives of Northern Ireland constituencies took passionately different views on the merits of this legislation. It is that very passion and, indeed, the importance of democracy, not just to Northern Ireland but to the whole United Kingdom, that means we should all try to look calmly at the Bill before voting tonight and before looking at the various amendments that may be tabled in Committee.
It is important that I remind the House of what the Bill does and what it does not do, as well has how, together, we can address the legitimate concerns that have been raised in good faith by hon. Members. The Bill protects, enhances and strengthens our Union and the prosperity of all our people. It is all the more crucial that we take these steps as we recover from the dreadful covid-19 pandemic. We need to work together as one United Kingdom, displaying solidarity and resolve, to ensure that the prosperity that we generate is shared for all the people we represent. It is a fact that each of the parts of the United Kingdom trade more with each other than with anyone else. It is a fact that each of the peoples of the United Kingdom rely more on each other than anyone else. All the peoples of the United Kingdom are stronger when we work together, act together and stick together.
No one summed up the essence of the Bill better than my hon. Friend the Member for Moray (Douglas Ross). He said it is a Bill about jobs and businesses. As he reminded us, some 545,000 jobs in Scotland rely on the integrity of our internal market. He reminded us that, coincident with this Bill, there is a power surge for all the devolved Administrations, with hundreds of powers going to the devolved Assemblies to strengthen devolution. He also stressed that the importance of devolution was that all our citizens could see our Governments working together—the United Kingdom Government working with the Northern Ireland Executive, the Senedd in Wales and, of course, the Scottish Government.
Michael Gove
Not at this stage.
The Bill does not walk away from negotiations with the European Union. Those negotiations go on with David Frost and Michel Barnier and with myself and my friend Maroš Šefčovič in the Joint Committee. We are committed to making a success of the negotiations. The Bill is not about abandoning the withdrawal agreement. The withdrawal agreement is there. We are safeguarding the rights of 3 million EU citizens in the UK, just as EU nations are safeguarding the rights of 1 million UK citizens in the EU.
The Bill is certainly not about declining to implement the Northern Ireland protocol. As the right hon. Member for East Antrim reminded us, with some regret on his part, we are erecting border-inspection posts for sanitary and phytosanitary checks in Northern Ireland, even now. We are investing hundreds of millions of pounds in helping Northern Ireland businesses to be ready for the new processes that come with the protocol. If we were not serious about implementing the protocol, we would not be incurring the inevitable resistance, from some, as we see those border-inspection posts erected and traders being prepared for the implementation of the protocol. The idea that we are abandoning it is simply for the birds.
The Bill is also not a threat to devolution. I must turn to my old friend, the right hon. Member for Ross, Skye and Lochaber (Ian Blackford). He gave the longest speech in this debate and, like all his speeches, it was true to the John Lewis guarantee: no argument was knowingly undersold. In his gusto to make his arguments and the lyricism with which he made his case, I fear he obscured one or two details. He talked about the threat to water in Scotland, but the Bill and the schedule are clear that water is excluded from the provisions of the Bill. He talked about the threat to the NHS, a UK institution, but if we look at the schedule to the Bill, we see that healthcare services are excluded.
I am perfectly happy to spend more time with the right hon. Gentleman, because it is always a pleasure to take him through the Bill, to calm him and to point out the ways in which it not only strengthens the Union but respects devolution. And devolution is what, indeed, it does respect—
Alison Thewliss (Glasgow Central) (SNP)
Will the right hon. Gentleman give way?
Michael Gove
No.
The other thing about the right hon. Member for Ross, Skye and Lochaber is that sometimes in his speeches he employs the Humpty Dumpty principle: a word means what he wants it to mean, whatever else the rest of us understand by it. He talked about defending devolution; well, what is devolution? It is two Governments working together—the Scottish Government and the UK Government; the Welsh Government and the UK Government. He says he wants to protect devolution, but how does he want to do that? By going for independence, smashing the devolution settlement, separating this family of nations and undermining the prosperity of the people who he and I love in Scotland. Even though he spoke at length, and lyrically, when he was challenged he could not give one single example of any power that the Scottish Government or the Scottish Parliament currently has that is not being retained. Indeed, powers are increasing.
Let me turn briefly to the speech given by the shadow Secretary of State for Business, Energy and Industrial Strategy, the right hon. Member for Doncaster North (Edward Miliband). I think we can all agree that it was an excellent speech. He raised a number of legitimate concerns and fair questions, which I hope to address. He talked about the importance of common frameworks, and we agree on that, which is why progress has been made on them. Indeed, one of those common frameworks specifically covers food standards and provides reassurance that the fears that he and others have about a race to the bottom will not be realised. It is also the case, as is acknowledged widely, including in his speech, that common frameworks are important but they are not enough. Progress on common frameworks is a good thing, but we also need legislation to underpin the internal market overall. I also noted his passionate commitment in his speech to getting Brexit done, and I am pleased to welcome him to the ranks of born-again Brexiteers.
One thing the right hon. Gentleman will know—indeed, the Chairman of the Select Committee on the future relationship with the European Union, the right hon. Member for Leeds Central (Hilary Benn), repeated the point—is that the EU has not always been the constructive partner that all of us might have hoped. In excellent speeches, my hon. Friend the Member for South Thanet (Craig Mackinlay), my right hon. Friend the Member for Basingstoke (Mrs Miller) and my hon. Friend the Member for Bassetlaw (Brendan Clarke-Smith) pointed out that the EU has not always done what we might have hoped it would do. The EU is bound by a system of what are called autonomous processes to ensure that we have equivalence on data and financial services, and that we are listed as a third country for the export of food and other products of animal origin. There has been no progress on any of those. We were told that we would get a Canada deal, but that is not on the table. The Prime Minister has reminded us that the threat on third country listing could mean an embargo on the transport of goods from Great Britain to Northern Ireland. The EU has also insisted on an interpretation of an end to the common fisheries policy that would mean that they could carry on fishing in our waters just as before, even though we had pledged to take back control. I am not a diplomat but let me try to put it in diplomatic language: some people might think that the EU had not been negotiating absolutely 100% in line with what all of us might have hoped. Given that, it is important that we redouble our efforts to seek agreement but that we are also prepared for any eventuality.
Importantly, it is not just me who acknowledges that the EU might not have been doing everything it should to secure agreement. As I say, the Chairman of the Select Committee made the point that there is no need for exit declarations for goods coming from Northern Ireland to Great Britain. He made the point that it is a shame that we have not got third country listing, and I agree with him—and I agree with the hon. Member for Leeds West that the EU must up its game.
It is also crucial that we recognise what this Bill seeks to do in order to ensure that we can get an appropriate resolution, and here I turn to the remarks made by my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill). He is an old friend of mine and he is on to something here. He made the point that we need to show that we are operating in a constructive spirit, and I agree. That is why we want to secure agreement through the Joint Committee, which is why we met last week. It is why Maroš Šefčovič and I have been working, setting aside our differences, in order to achieve agreement. It is also why our first recourse will be to the arbitral panel if we do have problems. We recognise, as my hon. Friend pointed out, that if we cannot secure agreement, under section 16 there are steps we can take in extremis, as a safety net, to ensure that our interests are protected. It is the case in international law that we can take those steps, if required, in order to achieve the goals we wish.
Tom Tugendhat (Tonbridge and Malling) (Con)
My right hon. Friend is making some clear points. Will he make it absolutely clear that any breach of the withdrawal agreement will come only at the very end of a long process, at which point the only resolution in respect of keeping food flowing between GB and Northern Ireland is this Bill?
Michael Gove
My hon. Friend, the Chairman of the Foreign Affairs Committee, makes an important point. It is the case that patient negotiation is the way forward. [Interruption.] No, I entirely agree with him. This time last year, we and the EU were at loggerheads. There were obstacles and roadblocks, but we negotiated with rigour, with determination and not without some bumps in the road in order to achieve progress. If we apply the same determination now as we did then, I believe that we can make progress in these negotiations, but just as last year, when we were ready to support our Prime Minister in showing steely resolve to get the best possible deal and to make sure that our negotiators had everything that they needed, so now we must back our Prime Minister and our negotiators and recognise that this safety net is a critical part of making sure that we can achieve everything that we wish. We should support the Bill this evening.
Question put, That the amendment be made.
Withdrawal Agreement Joint Committee
Michael Gove Excerpts(3 years, 7 months ago)
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The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)
The withdrawal agreement Joint Committee met on 10 September at Lancaster House, London. The meeting was chaired by the Chancellor of the Duchy of Lancaster, and the European Commission vice-president, Maroš Šefčovič, alongside the alternate co-chairs of the Committee, the Paymaster General and Michel Barnier. Representatives from the Northern Ireland Executive and the EU 27 member states also joined by videolink.
The Committee discussed the UK Internal Market Bill and the Northern Ireland protocol. The UK made it clear that the legislative timetable for the Bill would continue as planned and reiterated its commitment to implementing the withdrawal agreement, including the Northern Ireland protocol, and the decisions of the Joint Committee.
The UK Government also stressed their obligations to the people of Northern Ireland, their determination to uphold the constitutional status of Northern Ireland, and their responsibility to provide good governance for the whole United Kingdom. As co-guarantor, along with Ireland, of the Belfast/Good Friday agreement, the Government’s commitment to that agreement remains absolute.
The UK Government will continue to engage in Joint Committee discussions constructively, with the aim of finding a satisfactory outcome for both sides.
[HCWS449]