Oral Answers to Questions

Penny Mordaunt Excerpts

Thursday 2nd December 2021 Commons Chamber

[Peter Grant (Glenrothes) (SNP)]

13. What recent assessment she has made of trends in the level of UK trade with the EU.

[The Minister for Trade Policy (Penny Mordaunt)]

UK trade in goods with the EU has been increasing this year. According to the latest data available, goods exports in September were up by 5.7% on those in the previous month.

[Steven Bonnar]

Between 2019 and 2021, the value of exports from Scotland decreased by 24%. In England the figure was 12%, in Wales it was 24%, and in the north of Ireland it was 15%. This follows a period of steady decline since 2018. It is economic vandalism. There is hardly a sector in the country that does not attribute at least some of the blame for its difficulties to Brexit. What agreement that removes all tariff and non-tariff barriers do the Government plan to make with another country that can account for 48% of all UK trade?

[Penny Mordaunt]

Goods exports between Scotland and the European Union were up 4% in quarter 2 compared with the same period last year. We are getting growth back after a period of dealing with the pandemic and other shocks to the global economy, and I ask the hon. Gentleman and his colleagues to start focusing on those opportunities. I have had discussions this week with representatives of pretty much every other political party—I have talked to parliamentarians, metro Mayors, local enterprise partnerships and all sorts of bodies around the country in preparing for the further negotiations that we will have in the forthcoming weeks—but I have not heard a peep from his party.

[Peter Grant]

If the members of the Minister’s party had not cold-shouldered the positive and constructive suggestions made by the Scottish Government immediately after the referendum—if they had even bothered to open and read the document—we might not be in the mess that we are in now.

This month, our figure has improved slightly from an all-time low, which is nothing to celebrate. Exports of food and drink from the United Kingdom to Europe have halved. The Food and Drink Federation has described that as a “disaster” and said that there have been only tiny gains in other markets. There was never going to be a Brexit that would be good for British businesses, but why do the Government not finally come clean and admit that their botched handling of Brexit has made the position even worse?

[Penny Mordaunt]

I ask the hon. Gentleman: what possible good could come from plugging every part of the UK economy back into the global economy, including the trading powerhouses of the future in emerging parts of the world? What possible good could come from championing a free trade policy globally that would end trade distortions and lift millions of people out of poverty? What good could come of that? I urge his party to get focused on those opportunities and to work with us and enable us to work with the businesses in his constituency to seize those opportunities. The country has decided that that is the future for the United Kingdom. I do wish that he would get on board.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

Is it not interesting that my right hon. Friend highlights the recent increase in exports to the European Union, in stark contrast to the doom and gloom that we heard from our opponents, who are saying that there will be a catastrophe and collapse in trade? Will she focus on the countries in central and eastern Europe and the Three Seas initiative—some of the fastest-growing countries on our continent—and build strong bilateral trade agreements with countries such as Poland and others?

[Penny Mordaunt]

I thank my hon. Friend for highlighting the opportunities that exist there. Clearly, we had good news recently on exports, but we also had fantastic news about inward investment and he is right to be optimistic. I think that our businesses are going to thrive in this new environment. There are some challenges that we have to address, but they are being addressed and we can see from the numbers that this is paying off.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

11. What assessment her Department has made of the potential impact on UK farmers and crofters of the planned UK trade agreement with New Zealand.

[The Minister for Trade Policy (Penny Mordaunt)]

This deal brings new opportunities to agricultural producers, making it easier to trade with New Zealand. It is a gateway to joining the comprehensive and progressive agreement for trans-Pacific partnership—the CPTPP—a high-standard free trade agreement involving 11 Pacific nations. This will create new export opportunities for British farmers to those markets.

[Mr Carmichael]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests. I have to say to the Minister that her confidence is not shared by hill farmers and crofters, or by the National Farmers Union and the National Farmers Union of Scotland. If the Government are confident in their assessment of the opportunities and threats from this agreement, will they commission an economic and environmental impact assessment, independent of Government, to show that they are correct?

[Penny Mordaunt]

As the right hon. Gentleman knows, this will be independently scrutinised, and there is obviously the Trade and Agriculture Commission as well. We have ensured that any reports are produced in good time for all the relevant Select Committees of this House to scrutinise them. There are tremendous opportunities. I also work closely with my counterparts in the Department for Environment, Food and Rural Affairs to ensure that we are dealing with the genuine concerns of that sector, and we will continue to do so as the negotiations and deals progress.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

Obviously the concerns of farmers and crofters will have to be addressed as the final agreement comes into place, but does my right hon. Friend agree that counter-seasonality offers a huge opportunity for British farmers to enter into agreements with farmers in New Zealand, so that markets across the world can be supplied all year round?

[Penny Mordaunt]

There are certainly opportunities through that to grow the market further still. I also think that we have to dispel some myths. It is not the case that the market is going to be flooded with New Zealand lamb. New Zealand already has tariff-free access through its WTO quota, of which it uses only half, so it is not the case that those things are going to come to pass. There are some massive opportunities and it is those opportunities that we need to focus on.

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[Liz Twist (Blaydon) (Lab)]

16. What assessment she has made of the potential effect on UK industry of the Trade Remedies Authority’s investigation into aluminium extrusions.

[The Minister for Trade Policy (Penny Mordaunt)]

It is an ongoing independent investigation by the Trade Remedies Authority. Although the authority indicated last month what it is minded to do, it would not be appropriate for me to try to pre-empt the outcome of the investigation.

[Liz Twist]

It has now been more than eight months since the European Commission imposed anti-dumping duties on aluminium extrusions from China. Will the Minister tell us why, by comparison, our Trade Remedies Authority has been so slow to act on this issue? Will she assure us that the authority will take into account the risk of Chinese imports being diverted into the UK after the EU decision?

[Penny Mordaunt]

I am afraid that, as I alluded to, I cannot comment on the investigation or its potential outcome. The TRA is carrying out its work methodically and thoroughly. I encourage the hon. Lady to ensure that the businesses in her constituency that have an interest in the issue make representations to the TRA. I am sure she is encouraging them to do so, and that evidence is critical in ensuring that we get the right outcome. I will undertake to keep her up to date as things progress.

[Lee Anderson (Ashfield) (Con)]

T1. If she will make a statement on her departmental responsibilities.

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[Alexander Stafford (Rother Valley) (Con)]

T2. Earlier this year, in partnership with Google, I arranged a digital course to train and upskill service sector businesses across Rother Valley. Will my right hon. Friend set out how our trade deals, including the recently announced New Zealand trade deal, support the service sector, 70% of which is based outside London and some of which is based in Rother Valley?

[The Minister for Trade Policy (Penny Mordaunt)]

I thank my hon. Friend for what he is doing to improve digital skills in his constituency. In 2019, 40% of service exports to New Zealand were delivered digitally. Under the New Zealand deal, service exporters, particularly those in his constituency and region, will benefit from more opportunities to deliver services through digital trade. My right hon. Friend the Secretary of State, in her topical statement, referred to the Department’s focus on digital trade, which is vital for the future.

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[Penny Mordaunt]

I thank my hon. Friend for highlighting that trade in itself is a force for good in the world, as well as having environmental chapters in trade deals. One example of that is our free trade agreement with New Zealand, which will include the most comprehensive environmental list of goods with liberalised tariffs in a free trade agreement to date. He is right to point to the technology being developed in the UK, which can provide solutions for nations around the world, whether they are developed or developing nations, to meet net zero.

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

The Secretary of State has a long history of being a supporter of the creative industries and I know that, like me, she will be concerned about the possibility of Channel 4 being lost to Leeds if it is taken over by a global player and taken away—I hope she is concerned about that. We have the BBC in Salford and Channel 4 in Leeds, so does she agree that levelling up would be deeply damaged if we were to lose Channel 4 from Leeds?

[Penny Mordaunt]

I thank the hon. Gentleman for raising this important issue. The points he makes are well understood. We often talk about the BBC and soft power, influence and all it brings, but Channel 4 has also done some incredible things, particularly in the disability space, during the Paralympic games in 2012 and since. His points have been well made. This is a matter for the Department for Digital, Culture, Media and Sport, but I am sure those in that Department will have heard him.

[James Daly (Bury North) (Con)]

Will my right hon. Friend update the House on what steps are being taken to establish a free trade agreement with our historical ally Pakistan, and specifically to encourage trade between our country and the Kashmir region?

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[Peter Grant (Glenrothes) (SNP)]

I could never have thought that I was about to be called, Madam Deputy Speaker.

In a few weeks’ time, the United Kingdom will start to apply import controls to goods coming from the European Union. Last year, when the European Union started to apply its controls, a large number of small and medium-sized exporters, particularly in the Scottish food and drink industry, felt that they were simply left to sink or swim. What assurances can the Government give that small import businesses in Scotland will not be hung out to dry next year in the way that small exporters in Scotland were left hung out to dry last year?

[Penny Mordaunt]

I encourage the hon. Gentleman, if he has not already done so, to put businesses in his constituency in touch with our Department. The export support service runs alongside the trader support service—indeed they are joined up organisations—and we are there to provide bespoke support to businesses, to help them work through some of the challenges with new paperwork and so forth, and to give them the information they need to make business planning decisions. I encourage him to put those businesses in touch with us directly, and we will support them.

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[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

Let us try again, Madam Deputy Speaker.

Exports from Ireland to GB soared in the first six months of 2021 after Brexit, as imports sent in the opposite direction declined. I wonder whether the Minister can come to the Dispatch Box and advise the House on this matter. With a post-Brexit imbalance in trade, with Irish imports up 20% in the first six months of 2021 and GB exports to Ireland down by more than £2.5 billion, do they not recognise that, for GB—not Northern Ireland—Brexit is a trade disaster?

[Penny Mordaunt]

From figures that I mentioned earlier, the hon. Member will know that the situation is improving for Scottish businesses. He will also know that the bulk of the disruption and slowdown has been because of the pandemic. We are now coming out of that, and we would love to have a constructive dialogue with his party and its Members of Parliament to ensure that businesses in their constituencies are getting the right support to seize the opportunities that are now opening up. If we provide the right support for businesses, this should be an exciting time when they will be able to thrive. I encourage the Scottish National party to come to terms with the fact that we have left the EU, and that we are determined to make a success of this and to plug the economy of every part of the UK back into the global economy. The sooner that SNP Members come to terms with that and start pulling in the right direction, the better off their constituents will be.

[Mike Wood (Dudley South) (Con)]

Big landmark trade agreements such as those with Japan, New Zealand and Australia make the headlines, but the excellent work that my right hon. Friend the Secretary of State is doing to remove trade barriers around the world also creates big new opportunities for businesses in my constituency of Dudley South. What progress is being made on the work to remove the trade barriers that restrict the flow of British goods and services?

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[Jim Shannon (Strangford) (DUP)]

What discussions have taken place with the Foreign, Commonwealth and Development Office and the Home Office to place Afghan refugees in work in places such as Mash Direct and Willowbrook Foods in my constituency of Strangford, and across the agrifood sector in Northern Ireland, which is in need of migrant workers to fill the vacancies that presently exist?

[Penny Mordaunt]

I would be happy to get those Departments to give the hon. Gentleman some further details. Every Department across Government, including the Department for Education, is focused on ensuring that people who are coming here to restart their lives in safety are given every opportunity, and that their skills can be utilised. We are also thinking about how we can help those who are still left in country. I undertake that the FCDO will write to the hon. Gentleman.

[Jason McCartney (Colne Valley) (Con)]

As the co-chair of the all-party parliamentary group for Fairtrade, I have been heartened by how many British people have been looking to support Fairtrade products, including bananas, coffee and chocolate, and to support Fairtrade producers and farmers around the world. Will the Minister continue to put fair trade at the heart of new trade deals so that we can continue to support these Fairtrade producers and farmers around the world?

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[Penny Mordaunt]

That story might be true in terms of how some people in the United States feel, but it is a false narrative. These are two entirely separate issues. My right hon. Friend the Secretary of State will be discussing the issue of steel and other matters next week with her opposite numbers in the United States, but we not do ourselves any favours if we perpetuate these false narratives. They are entirely separate issues. I again encourage the hon. Gentleman and his party to start talking about what the UK has done to protect peace on the island of Ireland, and our reasonable request to the EU. He might also like to talk to his American friends about what the EU has done to disrupt that, including triggering article 16 on the most sensitive of goods—vaccines. We have acted in good faith. We will do more to tell America that we have acted in good faith and are determined to be pragmatic, and Lord Frost is going to do that. The hon. Gentleman has to separate false narratives from how some in the US feel.