EU-Singapore Free Trade Agreement (FTA) AND INVESTMENT PROTECTION AGREEMENT (IPA)

Michael Tomlinson Excerpts

Monday 10th September 2018 General Committees

[The Chair]

Before we begin, I will briefly outline the procedure for European Committees. First, a member of the European Scrutiny Committee—in this case, Mr Tomlinson—will make a statement of no more than five minutes on the Committee’s decision to refer the documents for debate. The Minister will then make a statement for up to 10 minutes. Members of the Committee may not make interventions during either statement. Questions to the Minister will follow. The Minister’s statement and subsequent questions may take up to one hour. The Minister will then move the motion on the Order Paper and the debate will take place. We must conclude our proceedings by 7 pm. I call Mr Tomlinson.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

It is a real pleasure to serve under your chairmanship, Sir Henry.

The EU’s proposed free trade agreement and investment protection agreement with Singapore are expected to be signed on 18 or 19 October. We thank the Government for tabling this debate, particularly given the timing and the timetable, because it is imperative that Parliament has the opportunity to scrutinise and have its say on the Government’s position on the new EU trade and investment agreements, which obviously continue to generate interest inside and outside this House.

Let me first point out the broader Brexit implications of the proposed FTA considered by the European Scrutiny Committee. First, the Government reiterate their commitment to securing the continuity of the EU FTAs after we leave the EU. Under the draft withdrawal agreement, the EU intends to notify third parties that the UK is to be treated as a member state for the purposes of international agreements for the duration of the implementation period. However, the question that remains unanswered is whether the Government consider this notification or request to third countries wholly sufficient to secure the benefit of these EU bilateral agreements for UK businesses and consumers. We note Singapore’s agreement in principle to the continuity of trade relations during any implementation period. How and when will that be translated into a legally binding commitment?

Turning to the expected benefits of the FTA, the Government have assessed that the FTA will increase GDP by £95 million each year. Bilateral exports are expected to increase by nearly £300 million, and imports by just over £600 million, in the long run. Can the Minister explain how the expected £300 million trade deficit with Singapore will generate the £95 million per annum benefit? In particular, which UK firms or sectors are likely to be most affected?

The Minister states that the Government are working towards new bilateral agreements with Singapore after the end of the implementation period. Are the Government seeking a copy and paste job of the EU negotiated deal, or a more ambitious deal? When will the Government consult UK stakeholders on a new agreement and publish an accompanying revised impact assessment? Furthermore, and importantly, how might the Chequers plan have an impact on the UK’s ability to strike a more ambitious trade deal with Singapore after Brexit? Clarification on cross-border trading relationships with Singapore and other countries in a no-deal scenario—in which there is no withdrawal agreement and no implementation period—is also required. For example, what costs will UK businesses and consumers face if the UK reverts to World Trade Organisation most favoured nation trading terms with Singapore?

Turning to the proposed investment protection agreement, one of the most controversial issues in recent EU trade agreement negotiations, including those with Singapore, has been proposals involving investor-state dispute settlement mechanisms and the new version, investment court systems, which allow investors to sue Governments in independent arbitration tribunals. The Minister considers that ratification of the proposed investment agreement is unlikely to happen until after the end of any implementation period, so that will not apply to the UK. However, the Government remain silent on what sort of investment protection and dispute resolution mechanisms they would include in future agreements. With just six months until the UK’s exit from the EU, when do they expect to determine their position on this fundamental aspect of post-exit relations with third countries? For the reasons set out in the Committee’s report—we note the Minister’s response of 19 July—the issues require urgent clarification.

The Committee has also highlighted the need for transparency in, and effective scrutiny of, trade deals—both EU-negotiated deals and deals negotiated in the future. Will there be more or fewer opportunities than at present for parliamentary scrutiny and public accountability with respect to trade deals after Brexit, and if so why? For example, further to the Secretary of State’s oral statement to Parliament on 16 July, how does the proposed outline approach to new trade agreement negotiations before formal negotiations begin compare with the Commission’s negotiating directives, and to what extent will Parliament be involved in setting or amending such approaches?

Those are the main issues raised by the Select Committee. I look forward to the debate. It is good to see the Minister in his place, and I look forward to his responses.

Oral Answers to Questions

Michael Tomlinson Excerpts

Thursday 23rd November 2017 Commons Chamber

[Dr Fox]

I had discussions recently with all the different parts of the devolved Administrations. They will clearly be very important partners in putting together our future free trade agreements, and they should be treated with due respect in that. However, I would say that they are not the only voices in Scotland, Wales and Northern Ireland. We will want to consult businesses, consumers, unions and the general public, and we will need to have a much wider consultation in future than we have had in the past.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

Small Business Saturday is an increasingly important business day in the run-up to Christmas. How are the Secretary of State and his Department helping small businesses in my constituency to export more?

[Dr Fox]

Small Business Saturday is in its fifth year. It is a celebration of our small businesses, and I imagine that all Members of the House will be taking part and celebrating businesses in their own constituencies. I shall be with the UK export hub, which some Members have had experience of, in Portishead in my constituency. I encourage as many as possible of the members of the public who may be paying attention to these proceedings to attend.

Foreign Direct Investment 2016-17

Michael Tomlinson Excerpts

Tuesday 12th September 2017 Westminster Hall

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

I beg to move,

That this House has considered foreign direct investment into the UK in 2016-17.

It is a real pleasure to serve under your chairmanship, Mr Gray. You might be forgiven for thinking that foreign direct investment is rather a niche subject for a Tuesday morning, but it is vital, particularly in the context of Brexit and of course international trade more generally. I am delighted to have secured this debate. The timing is especially apt after last night’s vote on the European Union (Withdrawal) Bill and our consideration of the Finance Bill later on today and into this evening.

FDI refers specifically to cross-border investments made by residents and businesses from one country into another and—importantly—with the aim of establishing a lasting interest in the enterprise that is operating in a foreign economy. I hope that this debate will focus on inward investment into this country—into UK companies —by foreign companies and enterprises. I will explore several main themes, including investment in the UK in the context of Brexit. I will give specific figures on FDI and statistics for 2016-17, and describe how FDI is spread across the regions, which is certainly important for me as a Member of Parliament from the south-west. I shall also discuss opportunities for FDI after Brexit and put some specific questions to the Minister.

First, let me talk about investment in the UK generally. As The Economist points out this week, many people warned of a slump in our economy following last year’s EU referendum. The expectation was that investment would decrease and that FDI itself would dry up, but that has not happened. Companies such as Google, Nissan, Toyota, Amazon and even Snapchat have shown that Britain is still a great country in which to invest.

Toyota recently announced an investment into the UK of more than a quarter of a billion pounds for its plant near Derby. Nissan is increasing its production in Sunderland by a fifth, doubling the amount of parts that it sources from within the UK and stepping up production by about 20%. Importantly, as we look to the future and electric vehicles, Nissan is investing strongly in this country, particularly in Sunderland. Google has invested £1 billion in 3,000 more jobs, and Amazon recently announced that it was taking over 15 storeys and 600,000 square feet of a new building in Shoreditch, which is even more than it originally promised back in 2014. That shows that London really is the capital of research and development, certainly for Amazon, which is also increasing the number of jobs.

[Stephen Kerr (Stirling) (Con)]

I congratulate my hon. Friend on securing this debate on a vital subject. He mentions London, but I would like to mention my home turf of Scotland. I am sure he is aware that Scotland was recently voted the most beautiful country in the world by the readers of a certain travel publication, but is he also aware that for the last five years in a row, Scotland has been the top location in the UK outside London for FDI? In fact, despite the warnings of naysayers and prophets of doom, 2016 was a record year, with 122 FDI deals done in Scotland during that year, which was up from the previous year. Does he agree that an industrial strategy with an emphasis on education and skills, combined with proactivity on the part of the Department for International Trade and business-friendly taxes, can help to make all the nations and regions of the United Kingdom irresistible to foreign investors? Should we not all be very positive about our future outside the European Union?

[Michael Tomlinson]

I completely agree that we should be positive about our future outside the EU. The whole purpose of the opening part of my speech was to show that, even after last year’s EU referendum result, the situation has not been all doom and gloom. I will talk about Scotland and the regions a little later in my speech, but my hon. Friend is absolutely right.

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

I congratulate the hon. Gentleman on securing this debate. Even though we are all a little tired after last night, many of us have turned up here today because this is an important subject.

I urge the hon. Gentleman not to be too optimistic. During my career in Parliament, I have spent a long time as chair of the all-party group on manufacturing and I have tried to encourage investment in this country. At the moment, proposals from Japan, China and America are very tentative. They think that, as we go through the Brexit process, some sensible solutions will be reached regarding our access to the European market, but nothing is definite yet. There are lots of things hanging. I have just come back from New York, and what I find is that nobody in financial services in New York will accept or even apply for a job in London at the moment—

[James Gray (in the Chair)]

Order. The hon. Gentleman is a very experienced Member and he knows very well that that intervention was too long. The previous intervention was from a new Member, the hon. Member for Stirling (Stephen Kerr), and he can be excused both for its being rather lengthy and for reading it, which is not something one would normally expect. I remind Members that interventions should be short, and they should be direct questions, not mini-speeches.

[Michael Tomlinson]

Thank you for that reminder, Mr Gray. I am grateful to the hon. Member for Huddersfield (Mr Sheerman) for his intervention. Last night was a late night and we can anticipate that tonight will be a late finish as well, but this is an important debate and I am very grateful that he is here in the Chamber this morning.

The hon. Gentleman is right—I am a glass-half-full, optimistic kind of person. However, we must not take a rose-tinted view, and I will say later that we should anticipate where there will be bumps in the road ahead. It is right that we do that, but where FDI is still happening in this country—even though the doomsayers said that it would not happen—that is a good early sign. Nevertheless, he is right that we have to look out for bumps ahead, and I will talk about the south-west region in particular.

Amazon is creating 450 new high-tech jobs in the UK, in addition to the 5,000 Amazon jobs that are already here. That is a real demonstration that Amazon and other companies believe that this is a good country in which to do business. I do not know whether you are on Snapchat yourself, Mr Gray—

[James Gray (in the Chair)]

Of course.

[Michael Tomlinson]

If you are, perhaps we should all get on to Snapchat. It has opened its new global hub right here in London, which again shows that it believes in this country in a post-Brexit world. There may well be bumps ahead, but let us look at the facts and the evidence of what has happened so far, while also being cautious about the future.

Having looked at the general picture, let me give some specific details of FDI. The latest report on inward investment results from the Department for International Trade, which is from 2016-17, showed that there were more than 2,260 inward investment projects in the UK. The good news is that that is up by 2% on the previous year and the investments secured over 75,000 new jobs, which is a huge number. However, there is one reason to be cautious, on which I specifically challenge the Minister. We are told that the jobs figure is down by 9% from 2015-16, so I invite him to explain why that is. Obviously the number of projects being invested in is still rising, but why are the jobs figures not quite as high as before? Of course I welcome the jobs that are being created and retained; in the south-west region alone, there have been nearly 3,500 new jobs and I very much welcome them.

Let me turn to the specific regional figures. As one would expect, London and the south-east is the region of the UK that attracts the most FDI. My hon. Friend the Member for Stirling (Stephen Kerr) mentioned Scotland, which receives the next largest amount of FDI. Again, that shows the strength of the whole United Kingdom, which is good for our United Kingdom. However, I challenge the Minister specifically about the south-west, my own region—other speakers will no doubt champion their own region. Although I welcome the 3,500 new jobs in the south-west, I invite the Minister to ensure that there is sufficient FDI in the regions outside London and the south-east.

[David Simpson (Upper Bann) (DUP)]

The hon. Gentleman will know that Northern Ireland has a land border with the Republic of Ireland, where corporation tax is 12.5%. We hope to neutralise that and have corporation tax at the same rate. Does he agree that although there is a lot of FDI in Northern Ireland, as we move forward after the vote last night, we will remain part of the United Kingdom out of the EU and the future is bright?

[Michael Tomlinson]

I am very grateful for that intervention. I will mention Northern Ireland in relation to the “Britain is great” project. The hon. Gentleman is absolutely right. As I said earlier, I am optimistic about the future of our country in a post-Brexit world.

Foreign direct investment is important for a number of reasons. It is important for job creation, which I have touched on, and for growth. Businesses in receipt of FDI have been shown to be more productive. All those things raise living standards, and they are why I challenge and invite the Minister to ensure that all regions across the United Kingdom—the south-west in particular—benefit. It is right and proper that London and the south-east attracts FDI—it is to be expected that our capital city should be the largest recipient of FDI—but I ask the Minister to ensure that all regions are attractive.

I declare an interest as chairman of the all-party parliamentary group on youth employment.

[Mr Alister Jack (Dumfries and Galloway) (Con)]

Although foreign direct investment into Scotland has been increasing, the Scottish National party’s constant pursuit of a second independence referendum creates economic uncertainty, and businesses are loth to go into such an environment. Does my hon. Friend agree that if the SNP were to drop that desire, we would see more inward investment into Scotland?

[Michael Tomlinson]

My hon. Friend is absolutely right. We are always hearing about business certainty. What do businesses want? They want to be able to anticipate what is going to happen, to know about the future, and the prospect of another referendum hanging over Scotland creates uncertainty. We have heard comments in exactly that vein from businesses across Scotland, so I am grateful for that intervention.

[Hannah Bardell (Livingston) (SNP)]

Picking up on the point about a second referendum, the hon. Member for Dumfries and Galloway (Mr Jack) will be aware of the comments made by First Minister Nicola Sturgeon with regard to that, but he might also be aware that many businesses, including the London Insurance Group, to which I spoke recently, were looking favourably upon Scotland and the opportunity it offered because of Brexit and the threat it posed. He might also be aware that Mark Harvey, a senior EY partner in Scotland, said that according to recent research,

“the EU Referendum vote and its aftermath may be having an influence on global perceptions of…the UK”.

So Brexit, not a Scottish independence referendum, is the greatest threat to the UK’s competitiveness.

[Michael Tomlinson]

I beg to differ. In my speech I have shown that, even after the referendum, FDI and investment more generally are still coming into this country. What I heard in the intervention by my hon. Friend the Member for Dumfries and Galloway is that businesses in Scotland want the certainty of remaining part of the biggest single market which, as far as they are concerned, is the United Kingdom and not the European Union.

Before changing portfolios, the hon. Member for Livingston (Hannah Bardell) served briefly on the all-party parliamentary group on youth employment. Each month we track the job figures, and month by month in recent years they have looked very good. The youth unemployment figure is now 12.2%, which is within touching distance of record lows, and the global employment rate is at its highest since comparable records began.

[Hannah Bardell]

I welcome those figures, which are great news for youth employment across the UK. Does the hon. Gentleman know and welcome the fact that Scotland’s youth unemployment figures are also at a record low? In my constituency, there is only 8% youth unemployment. Is that not something to celebrate?

[Michael Tomlinson]

I completely agree, and I very much welcome the hon. Lady’s intervention. The figures are a sign of strength in the United Kingdom, not in the separatist agenda that she and her party would pursue. I of course welcome all record levels of youth employment, whether in Scotland, London or my own region. I appreciate the short time that the hon. Lady spent on the all-party group on youth employment. I invite the Minister to consider how we can pull out all the stops to ensure that the figures keep going in the right direction. That is the challenge as we near full employment, or as full as we might be able to reach.

One of the most popular measures for boosting FDI are enterprise zones, in which companies receive preferential tax, planning and other financial incentives. That measure is most popular among non-UK companies, which have constantly advocated the creation of such zones. I am delighted that the Dorset Green Technology Park, just outside my constituency, was recently announced as an enterprise zone. Such zones promise the creation of engineering excellence, and this one will generate 2,000 new jobs and 20 new employment units as the result of a massive £2.5 billion investment. Although the park is just outside my constituency, I firmly believe that it will benefit the whole of Dorset, bringing an extra opportunity for attracting FDI into the region.

Northern Ireland was mentioned, and I want to hear from the Minister about his Department’s “Invest in Great Britain and Northern Ireland” campaign. As we look forward to the challenges and opportunities this country faces, the whole of the United Kingdom must go forward together. I invite particular attention to be paid to regions such as the south-west—and of course other regions represented by Members here today—where there is a risk of their being left behind or slipping behind.

I end on this point: to foreign investors, the United Kingdom is an attractive place in which to invest and with which to do business, but I strike a warning note for the Labour Front-Bench team. Foreign investors, just like domestic businesses, like our low rate of corporation tax. They like our country for a number of reasons, but one of them is the corporation tax rate, which at 19% is the lowest in the G7. That has not resulted, as some argued it would, in our having to compromise on the tax take, which is so important. In fact, the tax take in 2016 was £6.6 billion higher than in 2010. So we must also keep an eye on that and ensure that businesses keep investing in this country.

Much of the Brexit debate is about how we divide up the national cake. This discussion about foreign direct investment is about ensuring that our cake is even bigger in the first place. I firmly believe in the importance of FDI and the opportunities that Brexit can present to us, and I look forward to hearing from other hon. Members and the Minister in due course.

--- Later in debate ---

[Jim Shannon]

I am always happy to receive an intervention from the hon. Gentleman. He is definitely an optimist as he is a Huddersfield Town supporter, and that is an indication of optimism at its highest. I wish him well, although on Saturday I hope Leicester beat them. I digress slightly, but there are ways of doing better and we need to address productivity.

[Michael Tomlinson]

The hon. Gentleman is making an excellent point about Northern Ireland, but it has been shown that as foreign direct investment comes into companies, that in and of itself helps to improve productivity, which is a great benefit.

[Jim Shannon]

I will illustrate that point in some of my comments about Northern Ireland and how our economy, productivity and employment grow. In Northern Ireland, we have a skilled, dedicated workforce. Regardless of our place inside and outside of Europe, the fact remains that people are interested in investing in Northern Ireland and across the United Kingdom. The fact that we are world-renowned for our research, our cyber-technology and our skilled workforce means that we can attract the investment that we so need. We are already playing above our level in Northern Ireland. We lead the world with some of the technology we have developed, and some of that skill can be found in the constituency of my hon. Friend the Member for East Londonderry (Mr Campbell).

According to the figures, foreign direct investment projects into Northern Ireland were down 62% to just 15 in 2015, but at the time, the economic development agency Invest Northern Ireland claimed that the figures did not reflect the full picture. Invest NI said that the full picture is that there were 35 direct investment projects in that tax year, but because those projects had not started, they were not part of the figures. The original figures were wrong and gave the wrong indication. The new figures show that the investment, new jobs and new projects are significant.

No matter the predictions that come our way from economists one way or the other, our duty is to promote our abilities and industries and attract that inward investment. I seek to do that, and my colleagues and Members from all parties travel worldwide seeking to do that. Many from Northern Ireland do the same.

--- Later in debate ---

[Bill Esterson]

The evidence is mixed on whether the fall in corporation tax since 2010 has had benefits in attracting inward investment. Under our proposals, we would still have the lowest corporation tax in the G7. Although investors like the idea of a low-tax economy, they equally dislike the consequences. Recent research by the London School of Economics shows that the downside implied by a low-tax economy of poor public services is profoundly unattractive. The approach that the Prime Minister set out at Lancaster House may be the preferred route for many Conservative MPs who want to shrink the state, but as well as continuing to damage our NHS, schools and pensions, such a policy will restrict the Government’s ability to deliver the very infrastructure and skills that foreign investors want and need.

The view of our investors is set out starkly in EY’s UK attractiveness survey. EY said that it has been a “mixed year” and that it is

“difficult to make a clear assessment of the UK’s performance attracting foreign direct investment and maintaining its appeal to investors since our 2016 attractiveness reports, because every positive indicator is offset by an equivalent negative development.”

It added that,

“the UK’s share of European R&D projects slumped from 26% to 16%, its lowest since 2011. With software projects also slipping despite a Europe-wide increase, these results raise concerns over the UK’s future performance in key growth sectors.

Europe was the leading origin for projects into the UK…Cross-border investments in Europe grew in 2016, with Central and Eastern Europe becoming an important area for higher value-added FDI such as R&D. As European value chains become increasingly integrated, investors appear concerned about the UK’s future access to these value chains.”

The EY 2017 global survey of investors’ perceptions

“reveals a split between current plans and future expectations…Some 31% of investors expect the UK’s FDI attractiveness to decline over the next three years, while 33% expect it to improve.”

Before we get too excited about the net positive figure, EY states that those figures are

“significantly worse than the long-term average, and 50% of investors based in Western Europe expect the UK to become less attractive.”

[Michael Tomlinson]

I have listened carefully to the hon. Gentleman’s speech. If I may say so, it is a rather glass-half-empty sort of speech compared with some of the other contributions. He is absolutely right about some of the notes of caution in EY’s attractiveness survey, but does he accept that there are also positive noises coming from it, including that the UK remains hugely successful in attracting FDI?

[Bill Esterson]

I read out the key point about the mixed picture. We must do everything we can to retain our existing successes as well as build new ones—that is the thrust of what I am saying—but there is no point in the hon. Gentleman or any of his colleagues pretending that there are not great challenges and causes for significant concern. I was tempted to say in response to his earlier comment that he has rose-tinted glasses half full. [Interruption.] It is too early in the morning for that, isn’t it? That one is a work in progress—I will leave it in the locker.

The hon. Gentleman is quite right about a positive attitude; I do not disagree with him. Of course we have to be positive and do everything we can—some of my questions for the Minister are along those lines—but it is worrying that the EY report shows a sharp fall in how global investors rank the UK’s attractiveness on key criteria, such as education, transport infrastructure, local labour skills, political stability and access to the European market. There has been a year-on-year decline of up to 30% in some of those criteria, which is unprecedented in the past decade. Bank of England Governor Mark Carney said just last month, as the Bank reduced its growth forecasts, that Brexit uncertainty was holding back investment. Of course, in the past year we have grown more slowly than our competitors—a fact that supports that comment and some of the other analysis I have described.

Mr Carney’s comments go alongside AIB’s decision to suspend investment in the UK due to uncertainty about the UK’s future. Two Japanese banks are establishing European bases in Frankfurt, and reports suggest that JP Morgan and Goldman Sachs are considering relocating significant business operations. Japan is a major investor in the UK, with some 1,000 UK businesses under Japanese ownership generating an estimated £72 billion of turnover last year. The Japanese ambassador estimates that 10,000 Japanese firms operate in the UK, employing 140,000 people. Many of those jobs are in the UK’s flagship automotive industry with big players such as Nissan, Toyota and Hitachi.

--- Later in debate ---

[Michael Tomlinson]

I thank all hon. Members who took part in the debate. The hon. Member for Strangford (Jim Shannon) talked about his optimism and about strength and growth in Northern Ireland. My hon. Friend the Member for Richmond (Yorks) (Rishi Sunak) talked about his business background and what a good place this country is to do business in. He also set out some challenges and constructive suggestions as to how we can improve our productivity and attractiveness.

We heard some notes of caution from the hon. Members for Livingston (Hannah Bardell) and for Sefton Central (Bill Esterson), who both cited EY’s attractiveness survey. The hon. Gentleman did accept that it was a mixed picture but that there was some positivity there. I urge him to look to that positivity: the UK remains hugely successful in attracting FDI and has clear potential and opportunities to sustain that success in a post-Brexit world.

I am grateful to the Minister for his words, particularly in relation to my region, the south-west. My constituents will be reassured. My remaining challenge to him and his Department is to ensure that they look out for all the regions—as he said he would in his speech—and continue to do that as we go forward, forging new trade deals.

Question put and agreed to.

Resolved,

That this House has considered foreign direct investment into the UK in 2016-17.

[James Gray (in the Chair)]

Order. That very useful debate having concluded, and with the Minister and Member responsible for the next debate being in the Chamber, it may be convenient to continue without any gap.

Oral Answers to Questions

Michael Tomlinson Excerpts

Thursday 6th July 2017 Commons Chamber

[Guy Opperman]

I look forward to meeting the all-party group when it is reformed, but I make the point that revisiting the 1995 Act and the 2011 Act would cost well in excess of £30 billion, as my hon. Friend knows. However, I look forward to those meetings and discussions.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

Notification is clearly a key concern. Will my hon. Friend confirm what steps have been taken to raise awareness of the changes in the state pension age?

[Guy Opperman]

I am grateful to my hon. Friend for the question. As he will be aware, there have been multiple leaflets, letters, debates, advertising and discussion all the way through from 1995—for the past 22 years. He will no doubt be aware that there have been multiple debates in Parliament as well.

EU-Canada Comprehensive Economic and Trade Agreement

Michael Tomlinson Excerpts

Monday 6th February 2017 General Committees

[Greg Hands]

I simply do not accept the hon. Gentleman’s premise that the UK sacrificed some key interests on the altar of getting an EU-wide common position before going into these complex and intricate negotiations. The important thing is that CETA would no longer apply after we leave. Having negotiated at an EU level can form a basis but there is nothing to stop us negotiating our own deal thereafter.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

It is a pleasure to serve under your chairmanship, Sir Edward. A number of the points I was going to make have already been made and, breaking with tradition, I will not repeat them. However, the Minister said that this is a good trade deal. I would like to know what the implication is especially for the UK and an EU free trade deal post-Brexit. We will be looking for own free trade deal, so will this be used as a model?

[Greg Hands]

I thank my hon. Friend for asking that very good question. The answer is yes, of course there will be some benefits in looking at the deal and its benefits once we are outside the EU. We remain strongly supportive of the deal. It is UK Government policy to support CETA going through, so of course we welcome it. We would of course look at that as the basis for a future deal. Notwithstanding that, it does not prevent us from having the flexibility also to look at the deal afresh.

--- Later in debate ---

[Barry Gardiner]

I am not interested in university debating points ad hominem. Free trade has become narrowed in its interpretation. The right hon. Gentleman will have noticed that I have focused on the benefits that an open and fair trading system can bring, and that is what we want, but we want trade agreements that respect sovereignty and that benefit little companies, not just major corporations. We want trade agreements that make our society a more, not less, equal place. That is why I am delighted to support the amendment tabled by my hon. Friend the Member for Swansea West.

I want to deal with the process first. I will try to be brief because we talked a great deal about this issue during the questions. The failure to bring consideration of CETA to a full debate on the Floor of the House should be a matter of not only regret by the Government, but deep disquiet for hon. Members from all parties. The job in front of the Committee today is very clear. It is not to decide whether CETA should proceed or not. It is to decide whether it is appropriate, given all the concerns there are about CETA, that the Secretary of State should honour the promise and commitment he gave to the House in his written statement and to the European Scrutiny Committee and that we should debate this on the Floor of the House.

I welcome the fact that we have finally today been given the opportunity to discuss this issue, but I cannot help but record that at its meeting on 7 September last year the European Scrutiny Committee recommended CETA for an early debate on the Floor of the House. It did so in view of the unprecedented public interest shown in this new generation of international trade agreements and the complex legal and policy issues raised for the UK. The Committee granted the Government a waiver to allow them to sign CETA at the EU Council of Ministers, but that waiver was conditional upon the promised debate being scheduled urgently to take place on the Floor of the House and at the very latest, it said, before the provisional application of CETA.

As I said, the Secretary of State appeared before the Committee on 26 October. He said that that he was “very happy” to have that debate on the Floor of the House and claimed that the failure to do so had been the result of scheduling problems in the parliamentary calendar. In reality, as the freedom of information request I referred to earlier showed, the Government had not been delayed by a scheduling problem in the parliamentary calendar at all. In fact, the first time the Secretary of State’s Department even approached the business managers to discuss a potential debate on CETA was 25 October—one day before the Secretary of State was due to appear before the European Scrutiny Committee to account for his failure to do so.

“What advice would you give”—

the Department asked—

“would it be better to have an actual date or do you think we can just tell the chair we are in the process of scheduling a debate”.

That does not sound like a Secretary of State committed to full parliamentary scrutiny and to keeping his promise. The Government confirmed in their subsequent letter of 30 November that they recognised a debate on the Floor of the House of Commons to be “of the utmost importance”.

[Michael Tomlinson]

Earlier in the Committee, the hon. Gentleman asked many questions about the process, but we are now in the debate. All Members of Parliament are entitled to attend the Committee and debate the matter, although not all Members are entitled to vote. I agree with him that it is regrettable we are not there; we are here. Should we get on with the debate?

[Barry Gardiner]

The hon. Gentleman is right that all Members of the House have the right to attend the Committee, but he will have noticed that this one and only opportunity for them to do so was deliberately timetabled at the same time that the European Union (Notification of Withdrawal) Bill is being considered in Committee on the Floor of the House. I do not believe that is a coincidence. I do not believe that is a mistake. I believe that it is part of a deliberate attempt to stop proper scrutiny. The hon. Gentleman talks about scrutiny and about moving this debate on to substantive issues within CETA, but the debate on the motion and amendment is precisely about whether this matter should go to the Floor of the House. That is why the process is important. We need to see that proper process has been kept, and sadly it has not.

Oral Answers to Questions

Michael Tomlinson Excerpts

Thursday 8th September 2016 Commons Chamber

[Greg Hands]

It is a bit rich for Opposition Members to talk about having a clue. I noted with interest the Leader of the Opposition yesterday attacking something he called “free trade dogma”. Let us be absolutely clear: the Prime Minister has said that under her leadership, Britain will seek to become the global leader in free trade, and that is what we will do.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

3. What recent discussions he has had to promote trade with south-east Asian countries.

[The Parliamentary Under-Secretary of State for International Trade (Mark Garnier)]

Our posts across the region are in frequent, regular contact with their host Governments. In my second week in the Department, I visited Burma and Thailand to promote trade and investment. Since the referendum, major Association of Southeast Asian Nations—ASEAN—economies have expressed an interest in discussing future trade relations with the UK. We have been clear that the UK will remain open for business and investment, and we are committed to strengthening our already excellent economic ties with the region.

[Michael Tomlinson]

I am grateful to the Minister for his answer, and I warmly welcome him to his place. As the vice-chairman of the all-party parliamentary group on Singapore, I also welcome the indication that Singapore is open to removing the barriers to trade between our countries. What discussions will he have to promote investment opportunities for UK businesses in Singapore and across south-east Asia?

[Mark Garnier]

I congratulate my hon. Friend on his important work for the all-party group on Singapore. The opportunities in ASEAN and Singapore are absolutely enormous. In the next 15 years, the members of ASEAN will make up the fourth biggest economy on the planet. We are in constant discussions, we have trade envoys going out to the region and we are very keen to open negotiations to promote trade between our countries.