Conflict, Stability and Security Fund Allocations 2020-21

Penny Mordaunt Excerpts

Thursday 28th January 2021 Written Statements

[The Paymaster General (Penny Mordaunt)]

I wish to update the House on the progress of the Conflict, Stability and Security Fund (CSSF) for the Financial Year 2019/20, as well as to announce the initial regional and thematic allocations for this Financial Year, 2020/21.

The CSSF is a cross-Government fund which uses both official development assistance (ODA) and non-ODA resources to deliver against both national security and UK Aid objectives, through security, defence, peacekeeping, peace-building and stability activity. In 2019-20, the CSSF spent £1,234.3 million against a cross-Government allocation of £1,266.2 million (97.5%). A further breakdown of spend against regional and thematic allocation, by department and by discretionary and non-discretionary spend is included in the CSSF’s Annual Report for 2019-20, published today.

The report outlines the impact that the Fund has had, and demonstrates how the Fund is contributing to the delivery of national security and UK Aid objectives. The report also highlights ways in which the Fund has made further improvements to programme management processes including how it monitors and measures results. A copy of this document will be placed in the libraries of both Houses and has been published on gov.uk.

Future Relationship with the EU

Penny Mordaunt Excerpts

Thursday 10th December 2020 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

(Urgent Question): To ask the Minister for the Cabinet Office to make a statement on the progress of the negotiations on the UK’s future relationship with the EU and preparations for the end of the transition period.

[The Paymaster General (Penny Mordaunt)]

I am grateful for the opportunity to update the House again on the progress of our negotiations with the European Union. The Prime Minister met the Commission President yesterday evening in Brussels. They, along with the chief negotiators, Lord Frost and Michel Barnier, discussed the significant obstacles that still remain in the negotiations. It is clear that we remain far apart on the so-called level playing field, fisheries and governance. However, they agreed that talks should resume in Brussels today to see whether the gaps can be bridged. They also agreed that a decision should be taken by Sunday regarding the future of the talks.

We are working tirelessly to get a deal, but we cannot accept one at any cost. We cannot accept a deal that would compromise the control of our money, laws, borders and fish. The only deal that is possible is one that is compatible with our sovereignty and takes back control of our laws, trade and waters. As the Prime Minister said, whether we agree trading arrangements resembling those of Australia or Canada, the United Kingdom will prosper as an independent nation. We will continue to keep the House updated as we seek to secure a future relationship with our EU friends that respects our status as a sovereign, equal and independent country.

[Rachel Reeves]

The country was hoping for a breakthrough last night, yet there was none. There is a sense of huge dismay, as we all wanted to hear significant progress, but we heard more about the Prime Minister’s meal than we did about his deal. In fact, we have not heard from the Prime Minister at all, even though he was supposed to be taking charge of these negotiations.

On Sunday, we will have just 18 days to go until the end of the transition period. How has it come to this? Businesses desperately trying to plan need to know what on earth is going on. If talks break down and the Government pursue no deal, what happens next? Will the Government look to swiftly restart negotiations, or do the Government believe there should be no talks next year or even for the rest of this Parliament? Or have the Government not thought that far ahead?

I want to focus in my question today on the security implications of no deal. The political declaration, signed by the Prime Minister, stated that there should be a

“broad, comprehensive and balanced security partnership.”

Yet despite numerous questions from the Opposition, and indeed from the right hon. Member for Maidenhead (Mrs May), Ministers have been unable to tell us how border officers and police will be able to access security data. The Government’s “No-Deal Readiness Report” admitted that, without a deal on security and data, the UK would lose access to key law enforcement tools such as SIS II—the second-generation Schengen information system—Europol and the European arrest warrant. These databases help us to fight organised crime and terrorism. Can the Minister guarantee that the security of the British people will be in no way undermined in the event of no security agreement?

The Labour party believes that the security of our country and our people are crucial. The Government will not be forgiven for undermining those. So for our economic prosperity and for our country’s security, will the Government do the responsible thing and bring back the deal?

[Penny Mordaunt]

I thank the hon. Lady for her comments. First, let me assure her of the Prime Minister’s resolve, efforts and determination to secure a deal. It is one reason why she is having to endure me today and not others. We are going to do everything we can to secure a deal. The best outcome is a Canada-style arrangement, and we are going to leave no stone unturned. We will carry on in talks and carry on negotiating until there is no hope of that happening, but at the moment there is hope of that happening, even though things do appear gloomy.

I appreciate also that Members are very concerned about these matters. Ministers are always happy to come and answer questions and update as much as we can on these issues, but I would say to all colleagues, particularly those on the Opposition Benches, that calling for urgent questions or asking other questions on the Floor of the House with the express mission of trying to undermine our negotiating position by pretending we are not ready for any outcome that these negotiations might yield is not helping to secure the outcome we all want, and it is certainly not in the interests of the country. These are serious times and none of us should be doing anything that may undermine the possibility of us getting the deal we all want.

Let me turn to the issues the hon. Lady raises. We have been clear that the end of the transition period will bring both opportunities but also challenges. We have been making extensive preparations for a wide range of scenarios at the end of the year, including whether it is an Australian-style outcome, and we are ready to seize those opportunities of being outside the single market and the customs union. This includes investing over £700 million in jobs, technology and infrastructure at the border and providing £84 million in grants to boost the customs intermediary sector, alongside implementing border controls in stages and ensuring that we have the necessary time to prepare.

We will not compromise on security. This has been an absolutely key part of our preparations on any outcome, and it is one of the reasons why, even in these gloomy times, I still am optimistic that a deal can be secured, because I do not believe that any European Union member state would wish to affect or compromise the security of its own citizens. But if we leave on an Australian-style outcome, we have measures in place to ensure that our citizens will be safe, and that we will be able to share intelligence and the other things we need to do to ensure our security arrangements are as they should be. I urge all colleagues, whatever their political hue or imperative, to put our nation first over the next few days, to support our negotiating team, to demonstrate our readiness under any scenario and our resolve, and to help us get a deal.

[Mr Mark Harper (Forest of Dean) (Con)]

It was interesting that the hon. Member for Leeds West (Rachel Reeves), who speaks for the Opposition, did not address the central question at the root of these issues, which is about the ability of this House of Commons to make decisions about our rules without the European Union being able to override it. That is the central question and on that question I would like the Government to hold firm. My constituents voted to leave the European Union and to take back control of making our laws. Will my right hon. Friend take a message to the Prime Minister that, whatever decision he takes on Sunday—I am glad we are still talking, which shows that there is still opportunity—to secure the ability of this House to make our laws, he has the support of this side of the House? Perhaps the other side of the House should reflect that their approach is why they have lost the last two general elections and are probably going to lose a third.

[Penny Mordaunt]

I thank my right hon. Friend for his remarks. It is helpful for the negotiating team that we are facing across the table to hear the resolve of Members in this House and that they are representing the views of their constituents. We have had many years of wrangling over this, but the Government have a clear mandate to deliver on the referendum result. We will do that and we will hold to our promises.

[Pete Wishart (Perth and North Perthshire) (SNP) [V]]

Here we are again—yet another deadline. October was a deadline, then it was November, then 1 December, then Friday, then Monday, then it was the last supper and now it is Sunday. God knows what it will be after that. I remember the good old days when Brexit was concluded and this was the easiest deal in history. The easiest deal in history now has more cliffhangers than “EastEnders” and we are just 21 days away from a likely no-deal Brexit—a no deal that will bring chaos, disruption and ruin for many.

The only policy in the negotiation position that the Government seem to have left is the forlorn hope that the EU will back down to their demands and concede that the British are right. The Government have made themselves hostage to their own Brexit right wing—any compromise will now be interpreted as a sell-out by that right wing. They have only themselves to blame, with the appalling language that they have used against the EU and their demonisation of the EU as some sort of cartoon villains. The EU are not going to back down, this Government are not going to compromise, so what is going to change in the next few days?

[Penny Mordaunt]

I am going to miss these exchanges with the hon. Gentleman, but my experience of my involvement on the Joint Committee under the withdrawal agreement and all aspects of these negotiations is that they have been done constructively and that there has been good rapport. The critical factor, however, in this is the EU recognising that the United Kingdom is a sovereign equal in these negotiations. That can be laid on the table in a charming way, but that is the bottom line, the cold hard facts of this situation. I appeal to the EU not only to recognise that fact, but to put the interests of the citizens and businesses in their own member states first, above any political project and above the political imperatives of the Commission. That is what we should all be doing. The negotiating position of the United Kingdom is one that creates that mutual beneficial outcome and I am hopeful that the EU will recognise that before the time runs out.

[Hilary Benn (Leeds Central) (Lab)]

We all want a deal, but UK businesses—let us be frank—are looking at the prospect of no deal with utter dismay. In the political declaration, the Government signed up to common high standards

“commensurate with the scope and depth of the future relationship”

and agreed to robust level playing field commitments to

“prevent distortions of trade and unfair competitive advantages.”

What proposals has the UK made in the negotiations to maintain common high standards in the years ahead, given that it is inevitable that these standards may change on both sides of the relationship?

[Penny Mordaunt]

We have always given that commitment. Clearly, there have been discussions in recent days focused on that precise issue, but right back even when we set out our opening positions, the UK position made those commitments. This Government and future Governments would not want to roll back on those standards, so we did not hesitate in giving those guarantees. The sticking point is our ability to control our own destiny. The EU has got to recognise that it cannot keep us within its own orbit, and that is something we will not compromise on.

[Tom Hunt (Ipswich) (Con)]

Many on the Opposition Benches see that the biggest failure would be for there to be no deal, but does my right hon. Friend agree with me that actually the biggest failure would be to capitulate and to accept a deal that would not fully respect a sovereign Britain leaving the EU? Also, does she agree with me that it is not a great look for the Opposition Benches when it comes to this negotiation—and, of course, it does take two to tango—to incessantly, all the time, be seeing reasonableness in the EU and unreasonableness in our own Government? For a party supposedly looking to reconnect with some of its patriotic voters, this is hardly a good look.

[Penny Mordaunt]

I thank my hon. Friend for his remarks. I would say that we have compromised on a great deal. We have not been intransigent in these negotiations. We have compromised on all sorts of things, including accepting an overarching framework to the agreement. We are going to be as creative and as determined as we possibly can be in the next few days in order to try to secure that deal, but he is right: we will not compromise on those fundamental issues.

[Christine Jardine (Edinburgh West) (LD)]

Can I assure the right hon. Lady that no one, as far as I am aware, on this side of the House in any way wants to undermine the negotiating position of this Government in Europe, because so much about the future of this country hangs on successful negotiations with the European Union? But in the rollercoaster of emotions that we have been through in the past few days—there is going to be a deal, there is not going to be a deal—and at the end of four years of a rollercoaster, would she accept that what we need is some reassurance that if, by Sunday, there is not an agreement, the Government will not give up on trying to reach a trade deal with the European Union that does not see us crash out on 1 January, with all the catastrophic effect that could have for our local businesses and for the economy?

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[Penny Mordaunt]

We are already out, I would just remind the hon. Lady, but clearly we have prepared for every eventuality. We have a phased approach to the border. We have many pots of work going on into the new year to ensure that there are not those cliff edges that she refers to. We have thought long and hard, and there has been a huge effort by the civil service to ensure that, whatever the outcome, it will be as smooth as possible for our businesses and our citizens. I thank the hon. Lady, who has been consistent in helping us secure a deal, and I urge all Members of this House to follow her example. I think that all Members can, from whichever seat they sit in in this Chamber, help us, and I would ask that everyone does that in the coming days.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind) [V]]

One of the concessions the Government made this week is on clause 45 of the United Kingdom Internal Market Bill, which would have allowed the UK Government to apply UK state aid rules in Northern Ireland. Given that the UK Government feel comfortable conceding on this clause, will the Minister now also look at deleting clause 50, which reserves the power to Westminster to apply state aid rules in Scotland and Wales?

[Penny Mordaunt]

I refer the hon. Lady to the statement by my right hon. Friend the Chancellor of the Duchy of Lancaster yesterday and just reiterate Northern Ireland’s unique position in the United Kingdom.

[Geraint Davies (Swansea West) (Lab/Co-op) [V]]

The Government have already published an economic impact assessment of no deal. Will the Minister ensure that they publish an economic assessment of any EU deal on offer, so if any deal is rejected we will all know at what cost?

[Penny Mordaunt]

At the moment efforts are on securing a deal, and the deal that is there—the component parts of it—is in the best interests of the people of the United Kingdom and in the best interests of the citizens and businesses in the member states of the European Union. That is very clear and that is what we are all hoping for and all working towards. The question is: will the EU accept that?

[Greg Clark (Tunbridge Wells) (Con)]

We end 2020 with Britain as the first country in the world to be protecting its citizens against covid with a properly authorised vaccine. For millions of workers in the manufacturing sectors—automotive, aerospace, food and drink, pharmaceuticals, chemicals—to end 2020 with a free trade agreement will be a huge relief and boost to confidence, so can my right hon. Friend reinforce with the Prime Minister the opportunity for 2021 to be a very much better year for Britain than we might have expected a few months ago, and to use all his personal efforts, energy and creativity to secure a deal in the remaining days ahead?

[Penny Mordaunt]

I thank my right hon. Friend for that and assure him again of the Prime Minister’s resolve to leave no stone unturned to get the Canada-style arrangements that we would all hope for. I would say to him that, as well as a boost for our own manufacturers and scientists and everyone else in the United Kingdom, securing such a deal would be a boost for the world economy and I hope that that focuses minds over the next few days.

[Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP) [V]]

In terms of the internal market Bill, we all remember Scottish Tory MPs in this House voting against amendments from the other place that would have forced the Government to seek the consent of the people of Scotland, and time and again we have witnessed the utter violation of not only the devolution settlement but potentially Scotland’s entire constitutional existence. We in Scotland did not vote for this Brexit, or indeed any Brexit, and we will not watch idly as our work and relations with our European friends and neighbours is unravelled. We will make our voice heard at next May’s Holyrood elections, but the truth is that the people of Scotland have had enough now. So I ask the Minister: come May, will she accept our democratic intent, or will we in Scotland always come a distant second to such reckless Tory ideology?

[Penny Mordaunt]

I would ask the hon. Gentleman if he thinks his constituents and the people of Scotland would benefit from us securing the deal that we seek. Would they benefit from us being able to take back control of our waters and not cede that to European partners? If he thinks that is the case, and I understand that is his position, he might like in the coming days to add his voice to those of Scottish MPs on these Benches who are supporting our negotiating team.

[Duncan Baker (North Norfolk) (Con)]

I am sure it was absolutely no coincidence that the Prime Minister dined on scallops and turbot last night. I represent a coastal community. Can my right hon. Friend assure me that this is not about the fact that fishing is a necessarily small part of our GDP at the moment; it is about what the future can be for our coastal communities? It is so important to return sovereignty and that those coastal communities have a fishing future that includes my constituency of North Norfolk.

[Penny Mordaunt]

My hon. Friend understands these issues very well and makes those points very well. He will also understand the Prime Minister’s resolve on this issue. I can reassure him that, with the exception of the scallops and that very fine piece of turbot, fish was not on the table last night.

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

I get on well with the Minister, but I must tell her this morning that it is our duty to hold this Government to account at this crucial time for all our constituents. That being said, being creative and determined is all very well, and I have been impressed by the negotiating skills of the two men leading this over these weeks, as I sit on the Committee on the Future Relationship with the European Union, but this is about leadership. As soon as the Prime Minister gets his sweaty hands on this issue, there is failure—failure of leadership, failure of determination and failure really to deliver this Government’s message. I hope the Minister comes back on that.

[Penny Mordaunt]

I thank the hon. Gentleman for the kind remarks that he makes about our negotiating team. They have done an incredible job. It is an incredibly technical job, with many details to work through, and their respective teams have done an incredible job. We owe them an immense debt of gratitude, whatever the outcome of these negotiations.

The hon. Gentleman is absolutely right: it is the job of Members of Parliament to hold the Government to account. We will always be here, whether it is on an urgent question or other matters. Again, I should plug that I am available at 10 am every day to take calls from Members of Parliament on any issue, whether it is Brexit or covid-related. But I would just say to him: please do not misinterpret the Prime Minister’s determination on sticking to these fundamental principles as somehow a negative in these negotiations. The only way we are going to get any arrangement that will enable our country to thrive is if he sticks to his guns, and he is going to stick to his guns.

[Sir Robert Neill (Bromley and Chislehurst) (Con)]

A free trade agreement is manifestly, overwhelmingly to the advantage of both sides, and it should be pressed for to the very last opportunity. However, does my right hon. Friend also recognise that security issues are critical to the welfare of this country, and so is civil justice co-operation? Those do not depend on a free trade agreement as such. The data adequacy agreement would certainly be of great advantage in sharing intelligence information. Now that the Chancellor of the Duchy of Lancaster has reached an agreement in relation to the Joint Committee and it is not necessary for us to deal with certain potentially controversial clauses in the United Kingdom Internal Market Bill, it would be greatly to the advantage of both sides if the EU Commission were to withdraw its objection to the UK joining the Lugano convention on civil justice co-operation in its own right. That would benefit both sides too, regardless of whatever else is decided.

[Penny Mordaunt]

My hon. Friend is absolutely right. There are many things that we could agree to and could do that would be beneficial to both parties. Of course, what lies behind the politics and the negotiations are decades of relationships between law enforcement and all the agencies, services and forces that work together and will continue to work together in the interests of all our citizens.

[Hywel Williams (Arfon) (PC) [V]]

On Monday, the Paymaster General had no opinion as to whether a 20% average tariff on food imports would be “modest” for poor people. With the prospect of a no-deal resolution now greater than ever, does she think that an export tariff of 48% on lamb and 84% on beef would be modest for Welsh farmers?

[Penny Mordaunt]

Clearly, the information on tariffs has been published. It is on gov.uk, but I stress to the hon. Gentleman that we are working to secure a deal that is in the best interests of our farmers, our hauliers, our businesses and our citizens, and we will continue to do that until all hope is exhausted.

[Nigel Mills (Amber Valley) (Con) [V]]

Would my right hon. Friend accept that even if a deal is done now, it will be very late for businesses to have a chance to understand and interpret it? Will she therefore urge the EU to go further than in the announcement that it made this morning and mirror our proposals not to impose the full import formalities for a period of six months to give a period of time for business to understand and get used to the new rules?

[Penny Mordaunt]

I thank my hon. Friend for that suggestion. I think it is in everyone’s interests if a pragmatic stance is taken on all these issues. That has, by and large, been the case to date. We should continue to do that as we go into the new year, no matter what the outcome of the future relationship.

[Carla Lockhart (Upper Bann) (DUP)]

The Minister will be aware of my party’s support for a deal, and we wish the Prime Minister well in his continued negotiations. She will also be aware of my party’s views on the Northern Ireland protocol and our opposition to it. In light of the announcement yesterday, will the Minister outline what actions she and the Government plan to take at the end of the six-month derogation on chilled meats moving from GB to Northern Ireland, so that businesses do not look elsewhere for those supplies? Will she commit to take unilateral action where necessary if all these new arrangements are seen to be detrimental to Northern Ireland’s economic wellbeing?

[Penny Mordaunt]

I thank the hon. Lady for her question. She will know that throughout all this we have sought to provide not just the practical support that Northern Ireland businesses need, but also the confidence in the environment that businesses need to continue to make investments. She will be aware that this morning the Northern Ireland Office announced a further £400 million, which has been committed to assisting businesses and boost economic growth, and to support throughout the transition. She has my assurance that the success and some new opportunities that will come with this if we get it right for Northern Ireland are there to be seized.

[Mike Wood (Dudley South) (Con)]

My right hon. Friend and I both campaigned for leave in the referendum, but more importantly 70% of voters in Dudley South and a majority nationwide decided to take back control over our laws, our borders and our trade. Does she agree that an agreement is only going to be possible if it respects that decision and ensures that laws are made here in the United Kingdom?

[Penny Mordaunt]

My hon. Friend is absolutely right, and this comes to the heart of it. I cannot, I am afraid, give him any guarantees as to whether the EU will reconcile itself with those facts, and I cannot say what the outcome will be. All I can assure him of is that the Government will stick to those principles and are absolutely determined within that to do everything we can to secure a deal.

[Stephen Farry (North Down) (Alliance)]

I would like to press the Minister further on the issue of policing, justice and security co-operation. This is, of course, of huge importance to the whole of the UK, but particularly so for us in Northern Ireland given our problems with organised crime and terrorism, and the existence of a land border. Given that the UK is facing a cliff edge at the end of the month in this regard, can she tell us what will be happening specifically on matters such as extradition, data sharing and data adequacy?

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[Penny Mordaunt]

Of all people, I know the importance of these matters to every part of the UK. We will be gaining access to new information via safety and security declarations. These will be required by the middle of next year. For every issue the hon. Gentleman raises, there are clear plans for how we can ensure a smooth transition to new arrangements. However, I would also just emphasise the fundamental principle that I do not think anyone—a member state, in the Commission and certainly not in this Government—is going to compromise on matters of security.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

Whether it is a Canada or an Australia deal, the people of Stoke-on-Trent North, Kidsgrove and Talke, 72% of whom voted to leave the European Union in 2016, are rightly proud that this Government are sticking up for the United Kingdom’s interests, something the Labour party desperately needs to learn if it wishes to regain the red wall in the future. Will my right hon. Friend assure me that no matter what comes out of these negotiations, the fine world-leading potteries have an exciting future in global Britain?

[Penny Mordaunt]

I thank my hon. Friend for that upbeat question. He is absolutely right to say that we have taken care of the challenges in any scenario, and again great credit goes to the civil service for preparing for that. There are also opportunities, which is why the people of this country voted to extract themselves from the EU. We would be doing them a disservice if we did not create the conditions for us to be able to seize those opportunities, and that is what we will do in the coming days.

[Bill Esterson (Sefton Central) (Lab)]

Last October, in preparation for a possible no deal, the Chancellor of the Duchy of Lancaster told us that stockpiles had been built up of essential medicines, including asthma inhalers, antibiotics, paracetamol and ibuprofen. That was just as well, given that they were needed in the coronavirus pandemic. Have stockpiles of those things been returned to the levels they were at in October 2019?

[Penny Mordaunt]

The hon. Gentleman is right to say that the efforts the civil service went to in order to prepare for a no-deal scenario last year stood us in much better stead for what then happened with regard to the pandemic. That is not an argument for Brexit; it is simply a fact that this nation was much more resilient because of the no-deal planning scenario. I cannot give him drug by drug, line by line details on the stocks, as he will appreciate, but I am sure the Department of Health and Social Care can. I can, however, reassure him on those matters. A huge amount of work has done, in a multi-layered approach, asking suppliers of medicines, medical products and other medical devices to help us replenish those stocks, while making sure that they themselves are trader-ready, so that their businesses are not interrupted. [Interruption.] No, I am saying that he should have reassurance on the points he has raised, and I will be happy to follow up with him with further detail regarding paracetamol and the other items he mentioned.

[Felicity Buchan (Kensington) (Con)]

Financial services are crucial for not only London but Scotland and many of our regional cities. Will my right hon. Friend assure me that financial services, and indeed the service sector as a whole, will be at the forefront of our minds in the next few days, given the importance of services to our economy?

[Penny Mordaunt]

I can give my hon. Friend those assurances. Services were one area where we were very poorly served by our membership of the EU. As well as the negotiations, the Department for International Trade has been doing fantastic work in signing roll-over trade agreements and new agreements with many nations. There are fantastic opportunities for our service economy in those nations.

[Rachel Hopkins (Luton South) (Lab)]

Investing in green industries and our transport infrastructure will be key to building back better after the pandemic and transitioning to net zero. With Government support, the automotive sector, including Vauxhall in my constituency, could move more quickly to producing more electric vehicles and councils could move to implementing the required green infrastructure to support them. Will the Minister outline whether a position on what is considered state aid has been reached, and whether any agreement will enable Government to invest in and subsidise green sectors?

[Penny Mordaunt]

There were certainly elements of the Chancellor of the Duchy of Lancaster’s statement earlier in the week that touched on that, but the hon. Lady is absolutely right to say that we want to be able to secure opportunities to set the conditions for our economy to thrive. Clearly, we have very challenging environmental goals that we wish to reach. Those are the freedoms we are working and fighting for.

[Dr Neil Hudson (Penrith and The Border) (Con) [V]]

The end of the transition period will present both opportunities and significant challenges for those involved in the agriculture and food production sector. Will my right hon. Friend reassure those in that sector in Penrith and The Border, Cumbria and the wider UK that sufficient provisions are in place for veterinary and certification work at borders? Will she reassure farmers in sectors that may face severe challenges in tariffs, such as the sheep and beef sectors, that the Government are prepared to step in and provide support?

[Penny Mordaunt]

My hon. Friend raises two important points. I can assure him that a great deal of thought has gone into ensuring that we have the supplies and enough personnel to meet the requirements on the veterinary side of things. We have always stood by any sector or part of the UK that is facing tough times, and we will continue to do so.

[Mohammad Yasin (Bedford) (Lab) [V]]

England and Wales were due to qualify for BSE negligible risk status next year, but due to the diversion of Government resources and staff to work on Brexit and covid, the Government missed the OIE—the World Organisation for Animal Health—submission deadline. Will the Minister apologise to my constituent in Bedford who runs Dunbia Cardington, who, despite his attempts to send out a message in a post-Brexit world that he is open for business and has the highest food standards in the world, will have to wait at least another year for his meat to qualify for this world-class status because of her Government’s failure?

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[Penny Mordaunt]

I am sorry to hear of the issue that the hon. Gentleman raises. I do not know the details, but I would be happy to look into it if he would like to pass those details to my office.

[Scott Mann (North Cornwall) (Con)]

Will my right hon. Friend confirm that, if we cannot find suitable compromises with our European friends on the remaining issues of the level playing field, governance and fisheries, we will be fully prepared to leave the transition period on Australian terms on 1 January?

[Penny Mordaunt]

I can give my hon. Friend that assurance. I thank him for all he has done to champion the interests of his constituents, in particular the fishing industry.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Yesterday the Prime Minister said that Scotland “will benefit” even if the UK crashes out of the EU single market without a trade deal with the EU, despite the fact that no deal will mean higher food prices, additional costs for businesses and job losses. As we stare down the barrel of a no-deal Brexit, can the Minister explain to what extent she believes Brexit is turning into the titanic success that the Prime Minister predicted it would be?

[Penny Mordaunt]

I say to the hon. Lady, as I have said to her colleagues, that if she does not want that scenario—and I get that impression from the tone of her question—she ought to be helping this Government to secure the deal that would be in the interests of her constituents. I urge her, even at this late hour, to consider that.

[Mr Peter Bone (Wellingborough) (Con) [V]]

I have no doubt that the Prime Minister will achieve a good trade deal for this country if there is one to be achieved. However, when I was in business and negotiating international trade deals with Governments, I found that they could only be concluded if there was a firm deadline, or they would continue to be pushed back. Given that, could the excellent Minister confirm that Sunday is the absolute deadline, which will make people focus on the negotiations and come to a conclusion?

[Penny Mordaunt]

I can give my hon. Friend greater assurance than that, because there is a very firm deadline, which is that at the end of this year, we and others have to legislate. Time is running out. We will carry on negotiating until there is no hope left, and the statement made yesterday would indicate that, unless progress is made, Sunday may well be that deadline.

[Deidre Brock (Edinburgh North and Leith) (SNP) [V]]

On Tuesday, the chief executive of the Food and Drink Federation said that his members could not agree export sales for next year with any certainty as they cannot be sure what tariffs may apply, what delays they may face or how much they will get paid for their goods. He also said that there is a shortage of general ambient warehousing space and cold chain storage. Businesses are trying to stockpile against the shocks and offset increased costs, but how can they do that if there is not facility for that stockpiling? What are the Government going to do about that, and why on earth have they not thought this through sooner than just three weeks before exit day?

--- Later in debate ---

[Penny Mordaunt]

These are serious issues and, partly because of the stresses that global trade is under with regard to the pandemic, there are other issues—for example, containers being at the wrong end of the globe to enable particular trade to continue—to contend with in addition to the ones the hon. Lady mentions. For each of these issues, the relevant Department has a mitigation plan that it is carrying out. I understand that this situation is very difficult for business, but we are here to provide both the practical and the financial support, as we have done through the investments we have made in infrastructure, technology and people. Where specific issues affect particular sectors, the relevant Departments are doing all that they can to rectify those situations.

[Mr John Baron (Basildon and Billericay) (Con) [V]]

I know that my right hon. Friend agrees that it is good that the negotiations continue—we all want a good trade deal—but will she convey to the Prime Minister that if the EU refuses to recognise or accept British sovereignty, which was at the very heart of the 2016 vote, and there is no deal, he has the party’s full support? After all, both the UK and the EU trade very profitably with much of the world, including the United States, China, India and Australia, on no-deal terms.

[Penny Mordaunt]

My hon. Friend is absolutely right in what he says and I thank him for that demonstration of support for the Prime Minister and the position of the negotiating team. I think it will help, in the coming days, for them to have heard that.

[Stephen Timms (East Ham) (Lab)]

In acknowledging its importance yesterday, the Minister for the Cabinet Office told me that he could “see no reason why” a data adequacy agreement with the EU should not be in place by the end of the month. Will the Minister confirm that one has actually been applied for? When is a decision expected? Does she recognise that, in the national interest, we must have one?

[Penny Mordaunt]

The Department for Digital, Culture, Media and Sport is the lead Department on that issue; I will ask the Secretary of State for Digital, Culture, Media and Sport to update the right hon. Gentleman on the precise timetable that the Department is working to. The right hon. Gentleman is right at the heart of what he says: there is no logical reason why all sorts of things cannot be agreed to—they are in the interests of all parties and I hope that that is the conclusion that the EU negotiating team come to in the coming days.

[Lia Nici (Great Grimsby) (Con)]

The fishing communities in Grimsby are pleased that we have not accepted the EU’s unreasonable requests in the negotiations. Does my right hon. Friend agree that any deal must allow us as a country to control who fishes in our waters?

[Penny Mordaunt]

My hon. Friend makes a good point. I reassure her, as I have other hon. Members, that the Prime Minister knows what his responsibilities are, the expectation of the fishing industry and what is in the interests of this country.

[Tony Lloyd (Rochdale) (Lab) [V]]

Does the Minister accept that even the sovereign United States believes that trade disputes can be resolved through internationalised mechanisms such as the World Trade Organisation and others? In that context, is not the concern of business about a crash-out no deal limited by the fact that it is not so much the Prime Minister’s guns that he is sticking to but the guns of those siren voices behind him who want that no-deal Brexit?

[Penny Mordaunt]

No, I think the Prime Minister has been very clear about what the optimum outcome is. We are not crashing out; what is being decided over the next few days is which set of rules will be taken forward for our future relationship with our European friends. There are plans and support in place for every scenario and I think what business really wants is the certainty of what that will look like. We are talking about an incredibly resilient group of organisations and people who can prepare for any scenario; what has been a strain is preparing for every scenario. They will get certainty in the coming days.

[James Sunderland (Bracknell) (Con)]

I am clear that most of my constituents in Bracknell, and those beyond, really want a free trade deal, but given the ongoing inability of the bully boys in Brussels to accept that we are now a sovereign nation, does the Minister agree that there may be a point in time at which a clean break is the only option, with a view, perhaps, to returning to the table in 2021, as a sovereign nation, to secure a deal that other sovereign nations have already achieved?

[Penny Mordaunt]

If we have to go on those terms then that is what will happen and we will prosper, but it is clearly not our first choice. The key factor in this is whether the EU is going to place above its own political interests, the interests of the citizens and businesses in its member states. Fundamentally, that is what is at the heart of this, and if the EU does not do that, that will be a very serious mistake.

[Marion Fellows (Motherwell and Wishaw) (SNP) [V]]

The EU is the source of 26% of the UK’s food. The next highest country of origin for food imports to the UK provides only 4%. Considering that we are not acceding to any new markets on 1 January, never mind that we are leaving one with which we have unfettered access, will the Minister finally come clean with consumers and shoppers that no deal will mean increased costs for putting food on the table and that it is the actions of this Government that are directly responsible for this?

[Penny Mordaunt]

The future is not yet written and I invite the hon. Lady to consider at this critical moment for Scotland and the rest of the United Kingdom what she might do to assist the UK Government in achieving the objective that she wants.

[James Daly (Bury North) (Con)]

Will my right hon. Friend reassure the House that, because of the agreement reached by the Joint Committee on the Northern Ireland protocol and regardless of the outcome of our negotiations with the EU, there will be no new customs infrastructure required in Northern Ireland?

[Penny Mordaunt]

I can give my hon. Friend that assurance. We accept our responsibilities with regard to the Northern Ireland protocol, as does the EU, and, again, I put on record my thanks and congratulations to the Chancellor of the Duchy of Lancaster on all the work that he has done to secure that.

[Tim Farron (Westmorland and Lonsdale) (LD)]

I spent yesterday in meetings listening to businesses small and large, locally and nationally, including the aerospace industry, farming, hospitality, tourism, finance and manufacturing. They had two things in common. Thing one was that they spent the past nine months completely battling all they could to protect their workers and to keep their heads above water during the covid crisis. The other thing they have in common was complete and total frustration and dismay that we are three weeks off a new arrangement of one kind or another and whatever great contingency plans the Minister speaks of, she has not shared them with them. Will she allow businesses in this country to do the best for our country by giving them an adjustment period after whatever happens on 1 January, so that they are not clobbered by changes for which they are not prepared?

[Penny Mordaunt]

I can certainly give the hon. Gentleman that assurance. It is called the phased approach to the border. The civil service and the experts that we have on all these matters relating to the border, whether they sit in Her Majesty’s Revenue and Customs, the Department for Environment, Food and Rural Affairs or elsewhere, have spoken to tens of thousands of businesses at literally thousands of events and on webinars. When colleagues in this House request access to that expertise, those meetings are set up by my office. We will do everything we can to give them the right advice and support. Colleagues can help in this, too. I do not know whether he has seen in his inbox the pack that we put together for his caseworkers.

[Tim Farron]

indicated assent.

[Penny Mordaunt]

Good. Please use it. There is contact information in there if there are technical questions that he needs to follow up on. We know that this is really hard for businesses, and that our businesses have been amazing in dealing with everything that they have had to in the past year. We will do all we can to support them, both practically and in the information that we will give them, so please do use the services that are there.

[David Johnston (Wantage) (Con)]

My right hon. Friend will know that, throughout this process, some have tried to suggest that the Government actively want to trade only on WTO terms, but does she agree that the huge amount of time and effort spent on the negotiations in these months shows that the Government do want a good trade deal, but, rightly, not at any cost?

[Penny Mordaunt]

Absolutely. As someone who has been very close to this whole process and sits on the Withdrawal Agreement Joint Committee, I can say that that is our prime effort. It is the focus of the Prime Minister, but he is, as my hon. Friend says, not prepared to compromise on those issues that would affect our ability to capitalise on our new-found freedoms. That is what, I think, the people of this country understand and expect.

[Jim Shannon (Strangford) (DUP)]

I, too, thank the Minister for her hard work and for her positive responses to the urgent question. Will she outline the steps that are being taken with regard to the beef, sheep and pork industries and the vegetable sector—particularly the potato sector—to secure tax-free, hassle-free and EU bureaucracy-free transport between Northern Ireland and the other nations of this great United Kingdom of Great Britain and Northern Ireland?

[Penny Mordaunt]

The hon. Gentleman will be aware of the very large amount of work that DEFRA and other parts of Government have undertaken to get the best possible outcome and smooth the path for businesses, whatever the destination of their products. I mentioned the announcement today of £400 million of new money from the Northern Ireland Office; that is obviously on top of the £650 million UK investment announced in August, to deliver the trader support service and our contribution to the PEACE PLUS programme.

[Matt Vickers (Stockton South) (Con)]

In the four years since the referendum, the Opposition have wanted to be in, to be out, to shake it all about. Does my right hon. Friend agree that their failure to support any deal that we deliver means that they have learned nothing from last year’s general election and that they cannot be trusted to deliver on the will of the British people?

[Penny Mordaunt]

Second only to the outcome of the negotiations is what Labour’s position on Brexit will be. We all need to focus on the first job, which is to secure a good deal for this nation. I hope all Members of this House, whatever their political hue, will recognise the seriousness of this moment and will support the Government in securing that objective.

[Rachael Maskell (York Central) (Lab/Co-op)]

The only thing that those on the Labour Benches want is a decent deal that serves the people of this country well and supports business. There are just 18 days left for businesses to prepare, and they certainly do not have the tools to understand, digest and implement a new deal. What additional resources will the Minister bring forward for businesses across my community and others to ensure that they can be helped not only to the end of the year but beyond 1 January?

[Penny Mordaunt]

Most of the things that businesses will have to do are not contingent on these final negotiations. As I mentioned, there has been a huge amount of investment in people, technology and infrastructure, and there will be a phased approach next year. We are giving businesses, colleagues and other intermediaries who will be working with those businesses the information they need to prepare well; that includes the hon. Lady’s casework team, who will have had the pack that I mentioned earlier. If there are outstanding issues, specifics or technical matters that you need help on—I am sorry, Mr Speaker: I mean “the hon. Lady needs help on”, or indeed you, Mr Speaker—we are available to assist. Please do make use of those services.

[Jacob Young (Redcar) (Con)]

This Saturday, it will be a whole year since I was elected on a manifesto pledge to get Brexit done. Two thirds of people in my community voted to leave the EU and take back control of our laws, borders, fishing waters and money. Will the Minister confirm that we will not sell out on any of those priorities, and that no trade deal remains better than a bad trade deal?

[Penny Mordaunt]

My hon. Friend makes an excellent point. I congratulate him on reaching his anniversary, and I thank him for all the work he is doing to represent his constituents’ interests in this matter and many others.

[Wendy Chamberlain (North East Fife) (LD)]

This afternoon, the Government are finally removing the clause from the United Kingdom Internal Market Bill that would break international law, arguably after having committed to do so as a concession to secure a deal. If there is a no-deal outcome this weekend, do the Government have any plans to bring forward new measures that break international law, either in the Taxation (Post-transition Period) Bill, which was introduced this week, or as part of any unknown business?

[Penny Mordaunt]

The hon. Lady will know the reasons why those clauses were in the UKIM Bill. We will not compromise on the integrity of the United Kingdom. The fact that the Prime Minister made that offer shows that we are doing everything we can to be creative and try to ensure we get a preferable outcome. As I say, the Prime Minister has resolved that he will not move on those red lines.

[Mr Speaker]

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 a few minutes.

UK-EU Future Relationship Negotiations and Transition Period

Penny Mordaunt Excerpts

Monday 7th December 2020 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

(Urgent Question): To ask the Minister for the Cabinet Office if he will make a statement on the progress of the negotiations on the UK’s future relationship with the EU and preparations for the end of the transition period.

[The Paymaster General (Penny Mordaunt)]

I am grateful for this opportunity to update the House on the progress of our negotiations with the European Union.

Intensive talks continue. In fact, the United Kingdom’s negotiating team, led by Lord Frost, has been in talks with the EU almost every day since 22 October and is working tirelessly to get a deal on our future relationship. This also affords us in this place the opportunity to show our collective resolve to get a good deal, our expectations of what that needs to look like, and what we will not accept. While there has been some progress across many areas, familiar differences remain on the so-called level playing field, fisheries and governance. Of these, the level playing field issue is currently the most difficult.

On Friday, after an intensive week of talks in London, the respective chief negotiators, Lord Frost and Michel Barnier, issued a joint statement. This outlined that the conditions for an agreement had not been met, and that talks should pause briefly to allow the Prime Minister and the Commission President to discuss the state of play on Saturday. Following their telephone call, the Prime Minister and President von der Leyen issued a joint statement. It welcomed progress, but noted that an agreement would not be feasible if the issues on the level playing field, fisheries and governance were not resolved. They agreed that a further effort should be made by the UK and the EU to assess whether the outstanding differences can be resolved, and instructed the chief negotiators to reconvene in Brussels.

We are at a critical moment in the negotiations. Teams are negotiating as we speak, and the Prime Minister will call the Commission President later this afternoon to discuss progress again. My right hon. Friend the Chancellor of the Duchy of Lancaster is in Brussels today, meeting the European Commission vice-president; they are meeting in their capacity as co-chairs of the UK-EU Joint Committee under the withdrawal agreement.

We are all working to get a deal, but the only deal that is possible is one that is compatible with our sovereignty, and that takes back control of our laws, trade and waters. While an agreement is preferable, we are prepared to leave on so-called Australian-style terms if we cannot find compromises. As the Prime Minister has made clear, people and businesses must prepare for the changes that are coming on 31 December, most of which are related to our departure from the EU single market and customs union, and not the outcome of these talks.

Mr Speaker, we will continue to keep the House updated as we seek to secure a future relationship with our EU friends that respects our status as a sovereign, equal and independent country.

[Rachel Reeves]

Last year, the Prime Minister said that to leave with no deal would be a “failure of statecraft”, so this Government must take responsibility for their failure if we leave without a deal. We will hold the Government to account for whatever they bring back—deal or no deal.

With just 24 days to go until the end of the transition period, let me ask a few basic questions about this Government’s and our country’s readiness. Trading on World Trade Organisation terms would mean tariffs on lamb exports of 40%, so what is the latest assessment of how many farms would go to the wall in the event of no deal? Tariffs on car exports would be 10%, so what is the viability of our great automotive industry if there is no deal on rules of origin?

The Office for Budget Responsibility said last week—I am surprised the Chancellor did not mention it at all in his spending review statement—that if we leave without a deal, GDP would fall by an additional 2% next year, unemployment would rise by an additional 1% and inflation would be up 1.5%. Those are not just numbers; this is about British industries and people’s jobs. The detail does matter, so will the Minister admit to the House how many of the 50,000 customs agents who the Government agreed are needed by the end of the year have actually been recruited?

Today, the Minister for the Middle East and North Africa claimed that the oven-ready deal had already been delivered. If that is the case, it must have been sent to the wrong address, because the whole country is still waiting for the comprehensive trade and security deal that was promised to the British people at the general election less than a year ago.

Mr Speaker, you will remember that the former International Trade Secretary, the right hon. Member for North Somerset (Dr Fox), once said that a trade deal with the EU would be the “easiest in human history”. Let me finish by asking the Minister: is that still the view of this Government?

[Penny Mordaunt]

I have some sympathy with Her Majesty’s Opposition today, because although I have been involved with various aspects of the negotiations and am vice-chair of the Joint Committee under the withdrawal agreement, I have not been in the room for these negotiations, and neither has any Member of this House. I understand that we have so much invested in getting a good result, for all the reasons the hon. Lady sets out. This is how it must have been for an expectant father waiting for news outside the delivery room. I can understand the tension and frustration many Members must be feeling at this critical moment.

We are all waiting for what we hope is good news, but we are not powerless in this. We are all active players and participants, and we should all be doing everything we can at this critical moment to ensure that our negotiating team are supported, and that we get the best result for this country. That means that we should provide clarity and resolve about what we want from a deal and what we are not prepared to accept, and show united support for our negotiating team. I hope that all Members of this House will join me in sending our resolve and good wishes to Lord Frost and his team as they continue to work on our behalf. We must also provide the necessary focus to get the negotiations over the line, which many Members of this House did by ensuring that we did not extend the transition period.

Sadly, the hon. Member for Leeds West (Rachel Reeves) and her colleagues on the Opposition Benches have failed to do any of those things to help us secure a good deal for this country. That is fair enough if Labour does not have a position on Brexit, but it might like to get one in the next few days.

All of us in this House must show support and resolve to get the deal that the hon. Lady articulates, and that we all want for citizens and businesses, not just within the UK but throughout the remainder of the EU. [Interruption.] I am turning to her questions; there were not that many. The tariff issues are published on gov.uk. I know that she has recently written to the Chancellor of the Duchy of Lancaster, who will reply to her in detail, as he always does.

What I would say to the hon. Lady, having been involved with transition preparations, is that when we have got into some of the detail—site visits and so forth, and helping ports, for example, put together their bids for the port infrastructure fund—assumptions that have been made about what we will need have been reduced. In my own local patch, for example, we were looking at having to have 10 freight gates. We now need only three because we have had greater clarity about how things will work.

We will keep the hon. Lady and all Members of the House updated on this front, but I assure her that we are making every effort to secure a deal. That is our aim. That is what everyone, I think, in this House would want, but that deal must respect the United Kingdom’s sovereignty and its integrity as a nation. We want to be able to control our own borders, set our own robust and principled subsidy control system, and control our waters. Those things are not up for compromise. We will not compromise. If the hon. Lady and colleagues want to assist Lord Frost and his team in that, that is the message that they should send them this afternoon in this place.

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I thank my right hon. Friend for the statement. I, for one, absolutely have confidence in Lord Frost and the Prime Minister, who are basing their negotiations on a manifesto that won us a huge majority at the last election. The British public voted for a sovereign departure—that is to say, that we would be a sovereign nation. She is right, therefore, and does she not agree that although this is entitled a trade discussion or a trade deal, the truth is that at the end of the day, as she said, this is essentially about sovereignty? To have continuing control of our laws, our territorial waters and, for that matter, our trade are matters of sovereign control, not just trade. Will she give that message back to our negotiators, and say that they have the Government side of the House completely behind them?

[Penny Mordaunt]

I thank my right hon. Friend for his comments, and for saving my breath in saying that again. He is absolutely right. I think it has been a difficulty on the EU side to come to terms with the fact that we are a sovereign equal in these negotiations. We have made this point time and again. I know that many Government Members have made that point many times, but that is the sticking point. I hope that the EU negotiators, and all member states, have heard his message loudly and clearly.

[Pete Wishart (Perth and North Perthshire) (SNP) [V]]

So here we are at the 59th minute of the eleventh hour, where we were arguably always going to be. What was supposed to be the easiest deal in history has become the biggest unconcluded disaster of modern times. The oven-ready deal was in fact a barely defrosted turkey. We still do not know if it is to be a low deal or a no deal. The chaos is due to commence in a few short weeks, and we still do not know the scale of the carnage that each sector will have to endure.

What we do know, I suppose, is that it will all be the fault of these Europeans. We know that even if it is a low deal it will cost every Scot £1,600 and Scotland’s GDP will fall by 6.1%, and we know, of course, that Scotland rejected this whole miserable project. Will the Minister concede that these negotiations have been nothing other than a shambles, that the Government simply do not care about the repercussions of no deal, and that the views of Scotland simply do not matter? If the Government do not care about the views of Scotland, why should Scotland endure this misery any longer?

[Penny Mordaunt]

The hon. Gentleman has surpassed himself today. As someone who has worked very hard with Mike Russell and other colleagues to ensure that their views and ideas are taken up by the negotiating team, I can tell the hon. Gentleman that throughout the course of the negotiations the position has evolved to take on board many aspects of what his colleagues have been asking for—for example, participation in programmes. The team changed their original position and have gone in to negotiate very hard on things that they have asked for. If we have good news in the coming days, I hope that he will give the UK Government the entire credit.

[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

Will my right hon. Friend ensure that the Government point out to our European partners that under their own treaty there cannot be any kind of deliberate go-slow or disruption of UK exports to the continent, whether or not we have a free trade agreement, because under their own treaty they are obliged to pursue free and fair trade with their neighbours, and, under article 8(1), to pursue good neighbourliness? Both the UK and the European Union have also signed up to the trade facilitation agreement at the World Trade Organisation, which obliges us to ensure that trade flows and does not get blocked by people doing box-ticking exercises, which are basically unnecessarily.

[Penny Mordaunt]

My hon. Friend makes an excellent point, and is absolutely right. If our European partners were to do such a thing, they would also be disadvantaging the businesses in their own member states.

[Hilary Benn (Leeds Central) (Lab)]

We all wish the negotiators well, not least—as my hon. Friend the Member for Leeds West (Rachel Reeves) pointed out earlier—because of the assessment of the Office for Budget Responsibility that no agreement could reduce real GDP by a further 2% in 2021, on top of the adverse consequences that will come from Brexit anyway. Does the Minister agree with that assessment? If so, can she explain to the House why, in the middle of the worst economic crisis for 300 years, the Prime Minister still appears to believe that no deal would be a good outcome? British business certainly does not.

--- Later in debate ---

[Penny Mordaunt]

The right hon. Gentleman will hear no argument from me to say that no deal is going to be better than getting a deal, but everyone is working to get a deal; that is our objective. That is why Lord Frost, as I speak, is there with his team trying to secure that. I would say to the right hon. Gentleman that delaying a decision and extending the negotiations—[Interruption.] Well, I think that is what he is driving at, but the facts are not going to change. We have all the information and the positions are as they are. It is only by continuing those negotiations, and by us continuing to put the pressure on for those negotiations to be concluded, that we will, I hope, arrive at a deal.

[Dr Liam Fox (North Somerset) (Con)]

We all want to see a deal, but the difficulties are not really about trade. Uniquely, we began these negotiations with an entire identity of regulations, of tariffs and of trade law, which is unprecedented in the history of trade negotiations and should have made this more straightforward. Does my right hon. Friend agree that this is not really about trade difficulties, but about EU politics? It is about ensuring that no country follows the United Kingdom in exercising their legal powers to leave the European Union, and about the desire of some in the EU to limit the competitive potential of post-Brexit Britain.

[Penny Mordaunt]

I agree with my right hon. Friend. It is not just the issues that I have set out in the UK’s position that should be focusing the minds of the EU’s negotiating team and the Commission; it is also what is in the interests of their member states. Britain’s position—the United Kingdom’s position—is that we want this outcome not just for our own benefit, but for the benefit of all member states, and the businesses and citizens within them.

[Wendy Chamberlain (North East Fife) (LD)]

According to the Cabinet Office’s leaked reasonable worst-case scenario document, in the event of a no-deal Brexit, the supply of medicines and medical devices could be reduced by up to 40%. In the spirit of doing all we can, can the Minister advise us of which products might be affected and whether my constituents, and indeed the constituents of every Member in this place, should start to stockpile them?

[Penny Mordaunt]

As has been said at the Dispatch Box before, a reasonable worst-case scenario is not a prediction; it is the worst case that we need to prepare for and mitigate for. We thought it was right—as we do across many areas, including covid—to think through those consequences and put those documents in the public domain, and the reasonable worst-case scenario was a document that we published. Whether it is food supplies, medicine or anything related to the covid pandemic, we have put in place mitigations for all sorts of things that could happen and could go wrong. We are not anticipating disruption to those supplies, and the work that we have undertaken includes the stockpiling of certain goods, securing our own freight capacity and many other things.

[Tom Hunt (Ipswich) (Con)]

With regard to the fact that we are the first country in the world to have approved a vaccine for covid-19, does my right hon. Friend agree that we benefited from the ability to act quickly, nimbly and dynamically and that one of the key benefits of Brexit is that it will extend that ability across a number of different areas—for example, international trading relationships and social employment legislation? Will she assure me that, whatever happens come 31 December, we will have that ability and that power as a country to chart our own course and have a wonderful future?

[Penny Mordaunt]

I supported Brexit—I voted for it—and I think there are many positives and opportunities that will come from it, not least being able to increase our collaboration and co-operation with many countries around the world. Unless we eradicate covid, and unless we ensure that every nation has access to vaccines and can benefit from the science, whatever its provenance, we will not defeat this pandemic. We are an incredibly connected nation, and we need to do that. With the future that we have, we will be able to be a major player in ensuring that that happens.

[Sammy Wilson (East Antrim) (DUP)]

The Government are doing the right thing in resisting any demand from the EU to take the power to impose penalties on the UK at some time in the future if Brussels deems that we have not kept pace with laws made outside the United Kingdom. Taking back control is the whole point of Brexit. In resisting the level playing field demands of the EU, the Government must also ensure that the EU’s demand for Northern Ireland to be included in its level playing field is resisted. If the Government do not do that, we have not taken back control—we have surrendered part of the United Kingdom to EU demands.

[Penny Mordaunt]

The right hon. Gentleman makes very good points that he has made many times over. The level playing field is the most difficult issue facing the negotiating teams at the moment, and I thank him for his comments, which will have been heard by the team today.

[Rob Butler (Aylesbury) (Con)]

In simple terms, could my right hon. Friend confirm that the UK Government will not sign up to any agreement that compromises our sovereignty or our ability to reach new trade agreements with the many countries around the world that are very keen to do business with an independent Britain?

[Penny Mordaunt]

I can give my hon. Friend those assurances. The Prime Minister has been very clear on this point, and it is something that the EU negotiating team will be fully apprised of.

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

The Minister might know that I am a member of the Select Committee on the Future Relationship with the European Union, which will be abolished next week. As a member of that Committee, I have witnessed the sheer incompetence of the Government’s leadership. On Small Business Saturday this weekend, a businesswoman said to me, “We have suffered 1,000 cuts in the last year from covid. Why would any Government inflict another 1,000 cuts by coming out of Europe on the wrong terms, in the wrong way?”

[Penny Mordaunt]

What would be damaging for business is more prolonged uncertainty. Our businesses, as we have seen especially over the past year, are incredibly resilient and can cope with all sorts of things. What they cannot cope with is every eventuality as opposed to any eventuality. We need to give them certainty. I hope that we will soon be able to inform them of the remaining issues that the negotiating teams are working on. That will provide them with 100% clarity about the situation that they are facing. We will continue to support them to get ready for the transition.

[Richard Graham (Gloucester) (Con)]

We all wish the Prime Minister, Lord Frost and the negotiating team every success in securing a deal with the EU, but should the trade talks fail, the Government’s reasonable worst-case scenario suggests that there might be significant issues with the flow of imported medicines in the first few months. Will my right hon. Friend therefore reassure all our constituents that, come what may, there will be no impediment to imported covid-19 vaccines and other crucial medicines—if need be, in the worst-case scenario, deploying military transport?

[Penny Mordaunt]

I can give my hon. Friend and his constituents those assurances. This is an incredibly serious matter. The supply of medicines and medical devices, even without the pandemic, has always been a priority, going right back to last year and the potential no deal scenario planning that went on, with huge efforts. His question affords me the opportunity to pay tribute to the civil servants, military personnel, local resilience forums and many other people who have been planning and conducting exercises—and of course all the people who have been working on the winter planning assumptions around that. I can give him those assurances that we take this very seriously indeed.

[Mr Ben Bradshaw (Exeter) (Lab)]

Those assurances were flatly contradicted only last week by the head of the UK’s pharmaceutical industry, Richard Torbett, who said that border delays and, crucially, the absence of mutual recognition standards in the event of no deal will disrupt the supply of vital medicines to this country, including vaccines. Why should we believe Government Ministers rather than the man who heads our multibillion-pound medicines industry and knows what he is talking about?

[Penny Mordaunt]

There are many potential problems, but those problems have been methodically thought through. As I say, they range from administrative issues that the right hon. Gentleman refers to, right through to freight transport issues, including our securing back-up plans if commercial transport is not available or we have issues of pinch points on the key transit routes. In addition to that, and in addition to the phased approach to the border that is being taken next year, we have also, for the first few weeks, put additional measures in place to really try to ensure that there are no delays and no snarl-ups on those key freight routes.

[Sir Robert Neill (Bromley and Chislehurst) (Con)]

I refer to my entry in the Register of Members’ Financial Interests.

My right hon. Friend is right, of course, to observe that it is in everybody’s interests that there should be a deal, and that uncertainty is damaging for everyone. Will she bear in mind that that is particularly acute for the people of Her Majesty’s territory of Gibraltar? Will she ensure that they, above all, as we have responsibility in these negotiations, are not allowed to become collateral damage? Will she also undertake to ensure that the Government of Gibraltar are kept fully informed of all developments and every assistance is given to ensure that whatever the outcome, there is a smooth and flowing land frontier and the delivery of essential services for Gibraltar?

[Penny Mordaunt]

I agree with all the points that my hon. Friend has made. I can assure him, from my involvement in the negotiations and keeping our partners informed, that all those issues with regard to Gibraltar are absolutely at the heart of our negotiating position. I thank him for raising that on the Floor of the House today.

[Hywel Williams (Arfon) (PC) [V]]

In the worst case of no deal, tariffs on food imports from the EU would on average be over 20%, but on beef mince they would be 48%, cheddar cheese 57%, oranges 12%—the list goes on and on. Over the weekend, however, the Environment, Food and Rural Affairs Secretary said that the impact of tariffs would be “modest”. Will the Minister concede that that is not true for the third of children in Wales who live in poverty, or for poor children all across the UK?

[Penny Mordaunt]

As I said, information about tariffs has been published on gov.uk. What I would say to the hon. Gentleman is that we are negotiating to ensure that we can get a deal. I understand his concerns, but our efforts are to secure that deal. I hope he would join us in that effort and send a clear message today to the EU negotiating team that that is in the interests not just of his constituents, but of all citizens across the EU.

[Robin Millar (Aberconwy) (Con)]

There is no doubt that it is in the best interests of all parties to secure a deal. However, for many residents in Aberconwy who voted to leave, sovereignty was a key driver. It has been cited throughout the negotiations as a red line, so will my right hon. Friend reassure all our constituents that, come what may, deal or no deal, after we leave the negotiations, we will do so with our sovereignty intact?

[Penny Mordaunt]

I can give my hon. Friend those assurances. The Prime Minister has been very clear on that point and the EU negotiating team will recognise that it is a point from which we will not move.

[Mr Tobias Ellwood (Bournemouth East) (Con)]

My right hon. Friend knows more than most how increasingly unstable our complex world is becoming. Does she agree that the threats we face, from both state and non-state actors, do not recognise international borders or the membership of political unions, and that no decision taken this week should diminish our collective security responsibility?

[Penny Mordaunt]

I agree with my right hon. Friend absolutely. It is one thing I have never accepted about what has been said about the EU’s negotiating position. I do not believe that member states would tolerate their own citizens being put in the way of greater harm. The security and defence co-operation we have between member states and ourselves is highly valued, and I think that would be recognised by all member states in that respect.

[Caroline Lucas (Brighton, Pavilion) (Green) [V]]

Does the Minister see the irony of UK negotiators trying to persuade our EU counterparts of our good faith when it comes to compliance with the rules of any new trade deal at exactly the time that the Prime Minister is today asking Parliament to vote to break international law by ripping up rules that were agreed barely a year ago? Can she tell us why the Government are apparently yet to agree to non-regression over current standards, when Ministers have repeatedly assured us that they intend to maintain and even enhance our own environmental standards?

[Penny Mordaunt]

I think that the trust for which the United Kingdom is renowned is deep. I think it is very well understood that the moves the Government have taken with regard to the United Kingdom Internal Market Bill have had to be taken as an insurance policy to preserve the integrity of our country. The Prime Minister and the Minister for the Constitution and Devolution, my hon. Friend the Member for Norwich North (Chloe Smith) have been very clear, as has been the Secretary of State Justice, on why we are taking this particular course of action. I still think that the United Kingdom is held in very high esteem in that respect.

[Dehenna Davison (Bishop Auckland) (Con)]

A large number of colleagues have already mentioned the importance of parliamentary sovereignty, which we recognise as one of the most important cornerstones of our democracy. With people across the country voting overwhelmingly to get Brexit done, will my right hon. Friend assure Bishop Auckland residents and the House that any deal we sign will categorically not undermine our sovereignty and our ability to set our own border policy, or our ability to strike free trade deals with our global friends around the world?

[Penny Mordaunt]

Quite right. We have as a nation been on a rollercoaster over the past few years, and the British people have been absolutely resolved, as demonstrated at the last general election, that we are going to get this done. I think it would be a very difficult discussion to have with our constituents if we had gone through that rollercoaster for no upside. We have to secure these freedoms; we are a sovereign nation, and that is the future we must all look forward to.

[Stephen Farry (North Down) (Alliance)]

Like the rest of the UK, Northern Ireland badly needs to see a deal, not least because no deal means the prospect of some tariffs being levied down the Irish sea interface. However, regardless of a deal or no deal, can the Minister give this House an assurance that the Government will work in good faith with the EU over the coming days to conclude the discussions in the Joint Committee around the implementation of the protocol, and that that will also include consideration of a grace or adjustment period for Northern Ireland businesses, which simply no longer have the time to prepare for 1 January?

[Penny Mordaunt]

Yes, I can give the hon. Gentleman those assurances. Although we are talking about issues that are extremely difficult, particularly the three issues that I alluded to earlier, the talks and negotiations are constructive and they are continuing apace. I hope that we will have good news in the coming days.

[Jo Gideon (Stoke-on-Trent Central) (Con)]

In light of the Opposition’s recent refusal to make any decision—as their constituents sent them to this place to do—in support of or opposition to the tier restrictions, what assessment has my right hon. Friend made of demands from some parts of the House for the Government to reach any deal with the European Union, while simultaneously considering voting against or not at all if any such deal is brought before this House?

[Penny Mordaunt]

I agree with my hon. Friend that it only makes sense to keep one’s powder dry if one is prepared to accept no deal, but the position of the Opposition is a matter for them—I just hope they get one in the next few days.

[Fleur Anderson (Putney) (Lab)]

This is a shambles. I held a meeting with local businesses in my constituency about the impact of this ongoing uncertainty all year. One owner of a logistics company said to me that the damage has been done. She waited throughout November for the deal; it did not come, and her business has now been killed and her staff have lost their jobs. Will the Minister apologise to business owners such as my constituent for this utter mess?

[Penny Mordaunt]

I am sorry to hear about the plight of the hon. Lady’s constituent. As I have reiterated many times before, I am available every day on covid or Brexit issues, if hon. Members want to talk. I am available at 10 am every single day and have been for weeks. I am not making a political point, but saying to all hon. Members, “If businesses are in difficulty for whatever reason, please do get in touch.” We would have liked this resolved earlier, but we are not prepared to compromise on matters that are of immense importance to many of her constituents. We will not compromise on those, but we are working incredibly hard to resolve the remaining issues, and I hope that in short order we will be able to provide her constituents and everyone else with the certainty that they need.

[Mr Peter Bone (Wellingborough) (Con) [V]]

The Prime Minister has done a fantastic job over Brexit; he has taken the United Kingdom out of the European Union and I am absolutely confident that he will only bring back a deal to this House if it takes back control of our laws, borders and trade. In fact, I would bet my house that he will not betray those principles. However, may I ask the excellent Minister why the negotiations are still continuing? The EU said the absolute deadline for these negotiations was 31 October, and here we are on 7 December. Was the Minister hinting to us in her answer to the previous question that tonight we will get a decision one way or the other, a deal or no deal?

[Penny Mordaunt]

I am not hinting at that, although it would be jolly nice. In my opening response, I outlined what I am expecting to happen this afternoon in terms of the Prime Minister’s speaking to the Commission President. I am not raising that hope, but these negotiations are continuing because a deal is still possible, and we will continue to negotiate until that ceases to be the case.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

Brexit has already cost our country billions, and we have seen investments slump in crucial sectors, a rise in unemployment, and some businesses leave our shores before we even reach the artificial, self-imposed deadline at the end of this year. How many more jobs will be lost? How much more economic damage will we suffer, and what further undermining of our international influence and national security will it take, before those who peddled the false promises of 2016 admit that they are simply undeliverable, in these negotiations or anywhere else?

[Penny Mordaunt]

I would ask the hon. Gentleman to reflect on why he thinks that our nation, collectively and together, voted to leave the EU. I am sure there was a range of issues. Some were economic, because people may not have wanted to be tied to the eurozone, but there were many other reasons. For many, it was about sovereignty, and being able to shape our own future. The policies that we are carrying out and doing our best to secure a deal for, are what we have a mandate to do from the British people. We put the question to them, they gave us their response, and it is incumbent on all of us in this place to act on their wishes.

[Danny Kruger (Devizes) (Con)]

The Government are under huge pressure this week to secure a deal—any deal. Does my right hon. Friend agree that the long-term economic and political consequences of a bad deal that keeps the UK in the regulatory orbit of the EU and not as an independent sovereign state, would be far worse than any temporary short-term consequences that might flow from no deal?

[Penny Mordaunt]

I agree with my hon. Friend. There has to be a point to all the upheaval that we have been through together as a nation over the past few years, and we can look forward to many positives with those new-found freedoms, including being able to make the right choices for this country. I say again: this is not just about the interests of the United Kingdom; I think that the negotiating position of the UK is also of benefit to the remainder of the EU.

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

The National Police Chiefs’ Council has said that losing access to criminal information if there is no negotiated agreement would have a “major impact” on counter-terrorism and serious organised crime. Obviously we all hope that a full agreement is imminent, but if an agreement is not reached on fish or level playing fields, have the Government drawn up proposals for a fallback security agreement? Does the Minister agree that if the UK and EU negotiators fail to secure arrangements that protect our citizens’ security, that would be highly irresponsible of both?

[Penny Mordaunt]

The right hon. Lady makes an excellent point, and that is one reason why a deal is in everyone’s interest, and why I have always thought that nations would not compromise on the security of their citizens. It is the responsibility of the Government on every aspect—whether on those issues raised by the right hon. Lady, freight transport, or whatever—to have thought through the consequences and prepared for them. That is the case for all issues, including the ones she raises.

[Shaun Bailey (West Bromwich West) (Con)]

The 70% of my constituents who voted to realise this country’s potential four years ago want the negotiating teams to succeed in obtaining a deal. I represent communities that are heavily based on manufacturing, so can the Minister reassure me that the negotiating team will continue to negotiate robustly on the point about rules of origin, and that they will stand up for manufacturing businesses, such as those in Wednesbury, Oldbury and Tipton?

[Penny Mordaunt]

I can give my hon. Friend those assurances. The team have done a tremendous job, and I know the detail they have gone into on each sector on that issue. It is helpful that my hon. Friend has reiterated the importance of those matters to his constituents this afternoon.

[Dr Philippa Whitford (Central Ayrshire) (SNP) [V]]

Even if there is a deal at this eleventh hour, it will be very thin, inflicting customs costs and delays on sectors that are already struggling to survive covid. The Minister has called on businesses to get ready, but the Government’s own IT systems are not ready; indeed, the fish export service will go live just two days before the end of transition. Does the fact that this Government are having to plan military flights to bring in medical supplies, including the vaccine, not make them pause for thought before such an act of self-harm?

[Penny Mordaunt]

It is right that we prepare for every possible contingency. There are all sorts of things that we have not mentioned this afternoon that are part of the Government’s in-tray—all sorts of contingencies that we have to think about. In the Cabinet Office, for example, I look after cyber issues. There are many things that we have to think about and many things that we have to prepare for, and it is right, particularly on medicines and medical devices, that we ensure that we have every contingency in place.

However, I would also point out to the hon. Lady that the border operating model and many things that businesses will need to do to get ready are not contingent on the final negotiations going on. We have invested heavily in support services for traders, businesses and citizens, and it has been right to do so. Again, if colleagues have issues with their constituents or businesses, please talk to me and I will do my best to get an official to talk to the business and put it in touch with the many webinars that are going on to help support businesses and citizens to make this transition.

[Ben Bradley (Mansfield) (Con) [V]]

I, for one, am delighted that we are finally going to reach a Brexit conclusion on 31 December. I am pleased to hear the continued commitment from my right hon. Friend to the red lines that have been set, and I know that many of my constituents will appreciate the stance taken by Lord Frost and the negotiating team. Will my right hon. Friend also recommit that, regardless of the outcome of trade talks, the Government will ensure that a UK shared prosperity fund is realised and that it finds its way to those places across the UK that most need it?

[Penny Mordaunt]

I thank my hon. Friend for his question. I do hope that next year, as we hopefully recover from the covid pandemic and make progress on the phased approach to the border and all the other things that we have been working so hard to put in place, we will really be able to turn to how we get economic growth happening across the whole United Kingdom and ensure that communities such as the one that he represents get the investment that they need and the opportunities that they deserve.

[Martyn Day (Linlithgow and East Falkirk) (SNP) [V]]

Scottish Government modelling of a basic trade agreement of the type that the Government are still trying and, it would appear, failing to negotiate finds that Scottish GDP is estimated to be 6.1% lower by 2030 compared with continued EU membership. That equates to an equivalent cost of around £1,600 for each person in Scotland, and that now looks like the best-case scenario. What assessment have the Government made of the combined impact of Brexit on top of the already severe impact on business and those about to lose their jobs due to the covid crisis?

[Penny Mordaunt]

What we need to be focusing on is how we ensure that, in every part of the UK, we can get the economic growth that we need and the infrastructure investment that we need. There will be opportunities that come from some of the investments that are being made over the transition period, and I would ask the hon. Gentleman to turn his energy and focus to those issues. We have left the EU. We will hopefully have news of a deal, but we will certainly have certainty for all our businesses and constituents in the coming days. We need to turn and look to the future and how we can help realise our constituents’ ambitions, and I encourage him to do that.

[Greg Smith (Buckingham) (Con)]

The 17.4 million people who gave such a clear instruction some four and a half years ago will look on with bemusement that there are still voices seeking to undermine that democratic mandate. Does my right hon. Friend agree that, in order to respect that democratic mandate, despite all the negativity and the negative voices undermining our excellent trade negotiators, the verdict must be a binary one—either we will be sovereign or we will not?

[Penny Mordaunt]

There is no question but that we will be sovereign; this is not an issue we are prepared to compromise on, but, as he has mentioned leave voters, I will stick up for remain voters. I have said this before, but I will say it again: the greatest act of patriotism in the past few years was shown by them in accepting the democratic result of the referendum. I think that everyone in this country wants us to be successful and make use of the opportunities that will be there next year as we come out of this ghastly pandemic. I hope that all Members will be working positively in the interests of all their constituents to do that.

[Chris Bryant (Rhondda) (Lab)]

I confess that I find all of this very depressing, partly because if I understand the Secretary of State for Environment, Food and Rural Affairs correctly, the anticipation is that if there is no deal, the Government will be paying Welsh farmers to burn Welsh lamb carcases next spring when they cannot sell them in Europe. If I understand all the police forces in the UK and the National Crime Agency correctly, if there is no deal they will not be able to have the same access to EU databases to be able to track down criminals and send them to prison. Even more worrying than that for me is that historically, this House and this country have always been good at doing deals. Frankly, we have always been the country that has compromised. We have always known how to get the signature on the paper, but every time another Member from the Government Benches stands up and demands more intransigence from the Government, the more likelihood there is that there will be no deal, and that will be a catastrophe for all of us.

[Penny Mordaunt]

I would say two things to the hon Gentleman. There are many things that we can point to. In fact, the Prime Minister has tabled a statement this afternoon—I think it was tabled before I came into the Chamber—that points to two things that he has offered the President of the Commission as a way of moving this forward with regard to the United Kingdom Internal Market Bill. We have at many stages compromised and sought to find ways to encourage the EU negotiating team forward, so, with all due respect, I reject the hon. Gentleman’s description of how the Prime Minister and the negotiating team have operated. They have operated in good faith and have compromised on many areas, but there are some areas we will not compromise on, because it is not in the interests or the integrity of the United Kingdom to do so.

Finally, I just point the hon. Gentleman to the plan that the DEFRA Secretary set out at the start of the weekend just gone about the opportunities that exist for UK farms. We have opportunities to look after the environment, to actually have scientists at DEFRA, as opposed to lawyers, and many other things that are hugely beneficial to UK farming and the environment. I encourage him to look at them.

[Philip Davies (Shipley) (Con)]

May I convey my full support to Lord Frost and the Prime Minister for their stance during these negotiations? I genuinely do not think they have put a foot wrong throughout this entire process. Like the Minister, I want to see a comprehensive free trade deal with the EU, but certainly not any deal and definitely not a deal that leaves us shackled to EU rules and regulations in perpetuity. I urge the Government to stand firm in these negotiations to ensure that we deliver on the Brexit that so many people voted for and that so many of us campaigned for over so many years.

[Penny Mordaunt]

I thank my hon. Friend for his comments, and I absolutely can give him those assurances. His question also affords me the opportunity to pay tribute to not just to the negotiating team and Whitehall civil servants, but the very many individuals, politicians and civil servants in the devolved Administrations, the Crown dependencies and elsewhere, who have worked incredibly hard to get us this far. It is because of all those efforts that I want to ensure that we get this over the line. All the encouragement that my hon. Friend and others can give in that respect is gratefully received.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab) [V]]

The north-east region has consistently exported more than it imports, and the Government promised the people of the north-east an oven-ready deal with no tariffs, fees, charges or quantitative restrictions—a deal that would safeguard workers’ rights, consumer and environmental protections and keep people safe through a comprehensive security agreement. With the negotiations now going late in the day, and those promises looking increasingly overcooked, what are the Government doing to ensure that businesses and individuals in the north-east are able to properly prepare for and manage these changes to come?

[Penny Mordaunt]

The hon. Lady raises a very important point. I reiterate that we are working to get a deal. We will continue to negotiate until that becomes an impossibility, but I am hopeful that we will get a deal. We have invested a huge amount in ensuring that businesses are ready. Most of the things that businesses and citizens will need to do are already known and are not contingent on the final negotiations. I stand ready to assist if the hon. Lady’s constituents or businesses have particular issues, but an enormous amount of support is available—not just information but webinars and dialogue with experts and officials—to ensure that people have all the information. There is also, of course, the substantial campaign, which has been running for many weeks, to ensure that people are fully informed about what they need to do before the end of the year.

[Bob Blackman (Harrow East) (Con) [V]]

I am sure that my right hon. Friend will join me in congratulating the International Trade Department on the new trade deals with major markets, including Japan, Kenya and Canada, with many more to come. Will she confirm that nothing will be done in our negotiations with our friends from the European Union that will compromise our ability to do new trade deals around the world?

[Penny Mordaunt]

I can give my hon. Friend those assurances. That is one of the main motivating factors as to why people wanted to leave the EU. Many other reasons related to the EU’s trade policies, protectionism and their impact on developing nations in particular. I will happily join my hon. Friend in praising the International Trade Department, which has had a huge amount of work to do in not only forging new trade relationships, but rolling over and improving existing arrangements with many nations. That does not often make the press, but it is a substantial amount of work and the Department has done an excellent job.

[Mick Whitley (Birkenhead) (Lab)]

The covid-19 pandemic has led to a tsunami of job losses in the British manufacturing sector, and thousands more will be lost if tariffs are slapped on British goods. What steps are the Government taking to help British manufacturers make the critical investment needed to save jobs and skills and to compete internationally in the event of a no-deal Brexit?

[Penny Mordaunt]

I reiterate that we are working to get a deal, and the issues raised by the hon. Gentleman are at the forefront of our mind as we do that. The Department for Business, Energy and Industrial Strategy has done a huge amount: it has sector committees and structures, and it is working hand in glove with the sector, listening to its needs. That is, obviously, informing policies produced from the Treasury and elsewhere. As we enter a new year and a new start, we want to ensure that exactly those types of businesses, particularly those that have been eroded in certain parts of the country, have what they need in order to have a renaissance. That will be our focus in the new year.

[Jerome Mayhew (Broadland) (Con)]

Is my right hon. Friend aware of the strength of solid support from the Conservative Benches for the Government’s negotiating position? Does she agree that a deal can be done, with all the necessary compromises that will entail on both sides, only if it starts from a point of fundamental acceptance of the United Kingdom as a sovereign, independent third country?

[Penny Mordaunt]

I agree entirely with my hon. Friend. I thank him for his support and I thank all Members in this House who are getting behind the negotiating team and sending that clear message to the EU negotiating team this afternoon. There is huge support not only on these Benches but in our constituencies. Whichever way people voted in the referendum, they know that this is the way forward. They want to get these final issues resolved swiftly so that we can all get on with it in the new year.

[Peter Aldous (Waveney) (Con)]

The REAF—Renaissance of East Anglia Fisheries—project sets out an exciting vision for the renaissance of the East Anglian fishing industry. Two preconditions for achieving this are the certainty that significantly more fish will be available to land in ports such as Lowestoft and that there is a framework for promoting investment in ports and the processing sector. Will my right hon. Friend confirm that these two requirements are not being compromised in the negotiations that are taking place?

[Penny Mordaunt]

I can give my hon. Friend those assurances. Clearly, fish is one of the sticking points. The negotiating team are obviously working very hard, but it is a sticking point because we will not compromise on these issues. I have to say, in a former life I was coastal communities Minister and, having visited his constituency and discussed the potential that is there for the renaissance of that industry, I think that is a prize worth holding out for.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The Government spend goodness knows how much money on radio adverts and newspaper adverts telling businesses to be ready for 1 January. A business in my constituency—a nursery that imports plants from Europe—wants to be ready to continue importing, but the C1800 form for handling freight imports is not available on the Government website so it does not know what inspection arrangements will be. Are there any inspection agents for plants? Where will inspections take place? Nobody knows what the conditions in road haulage will be for outgoing goods. Can the Minister tell me what I can tell my constituent about how his business can continue to trade successfully from 1 January, because it is not apparent from anything I have seen?

[Penny Mordaunt]

I am sure that the hon. Gentleman has done his homework and done his best to help his constituent. I do not know whether he has used the toolkit that was sent to his casework team on, I think, 26 November—[Interruption.] Okay. That will give contact details for him to get in touch with officials who are standing ready to talk to businesses to give them the bespoke advice that many of them will need. If he wishes to pass the details of the company to me after this, I will ensure that the relevant official can speak to them—I mean this very genuinely; I am not trying to get one over on him. We are making every effort to ensure that all Members of the House have the information that they need if people need further help than what is on gov.uk and the webinars and so forth that are going on. We want to ensure that every business is supported in these efforts and, if he passes me the details, I will ensure that his constituent is.

[Nigel Mills (Amber Valley) (Con) [V]]

What does my right hon. Friend say to those on both sides who seem to believe that now is not the best time to make a deal and that perhaps it will be better to come back next year when a better deal could be done? Surely that is ridiculous and this is by far the best time for a deal. It is pretty much now or a long time in the future.

[Penny Mordaunt]

I am tempted to say no, no, no. I think my hon. Friend makes a very good point. We know that delaying negotiations—extending the period of negotiations—is not a possibility now, but it is also the wrong thing to do. We need the focus and resolve for both parties to come together and agree a deal. It is very clear what that needs to look like from our point of view, but the negotiations are still continuing and I remain optimistic.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab) [V]]

Despite the recent re-signed fisheries framework agreement with Norway, there is currently no legal basis for UK fisheries’ distant water vessels to fish cod in the Norwegian economic zone from the end of this year, as they have been doing for decades. In the event of a no-deal Brexit, what are the Government doing to ensure continued access to these waters?

[Penny Mordaunt]

Our position is exactly in line with the existing precedent of the EU’s current fisheries agreement with Norway. We now have a seat at the forums that decide these matters—we have our UK seat back. On the specifics, I will ask a DEFRA Minister to write to the hon. Lady. If she wishes to give me any further details about a particular company that is having difficulties, I will connect it with the relevant official.

[Joy Morrissey (Beaconsfield) (Con)]

Beaconsfield businesses are bracing themselves for and embracing the end of Brexit and the transition period, but will my right hon. Friend provide further assurances of the plans and the support that is in place for supporting businesses, particularly small businesses in Beaconsfield?

[Penny Mordaunt]

As I have stated, all Members have special information that has been put together to help signpost any inquiries that come to their offices, but clearly we have put in place a huge amount of support for each sector. There is the Trader Support Service that has been stood up and the work that is going on in the relevant Departments for each sector. The officials have done a tremendous job and spoken to tens of thousands of businesses across the UK, through webinars and, in some cases, on a one-to-one basis, to talk through the issues. As I have said, we know about the bulk of things that businesses need to do. I also give a nod to the Central Office of Information, which has been running the campaign that colleagues have spoken about this afternoon. That has had a great effect in raising awareness and ensuring that people are ready by the end of the year.

[Barbara Keeley (Worsley and Eccles South) (Lab) [V]]

Orchestras in the UK are being hit by a double whammy of the covid pandemic and uncertainty around what they need to do to perform on tour after 31 December. The Northern Ireland protocol means that goods moving between Great Britain and Northern Ireland will require customs declarations. Orchestras that work between Great Britain and Northern Ireland have to transport their instruments to perform there. Can the Minister confirm whether an orchestra in this position will require carnets for their instruments after 1 January because orchestras have not been able to find out, despite the Government promising to give the information and support needed for the end of the transition period?

[Penny Mordaunt]

I suspect that there is more to it than all the information that I heard in the question, because I do not think that orchestras should require—if I have understood the journey correctly—any paperwork of that sort. Again, if the hon. Lady would like to give me the details of that case, I will get her a swift answer on that.

[Mark Jenkinson (Workington) (Con)]

I remain confident in the ability of Lord Frost’s negotiating team to strike a deal over the next few days, but it is right that my right hon. Friend and Lord Frost’s team stand firm on reclaiming our sovereignty. Can she confirm to me and the people of Workington who stand squarely behind her and Lord Frost that we will leave the transition period on 1 January 2021, on Australian terms if necessary?

[Penny Mordaunt]

As I have said, we will work until there is no hope left of getting a deal. I, too, have the same great confidence that my hon. Friend has kindly expressed in Lord Frost and the great team that are supporting him. None the less, it is very clear that if we cannot resolve these final issues, in particular the three that I mentioned in my opening remarks, we will not be able to conclude that deal. We must ensure that our sovereignty is not up for grabs. We have been crystal clear from the get-go on that, and I think that that is what the people of the United Kingdom expect.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for her answers to the urgent question and also wish the negotiating team all the best for the next few hours, and perhaps the next few days. I have seen many concerning reports regarding the deals that have been done in reference to our seas. I ask for a clear and unequivocal assurance from the Minister on behalf of the fishing sector in Portavogie in my constituency that there will be no surrender of our seas or our rights to European fisheries and that we will bring the fishing industry back home, as was promised by our Government in the past.

[Penny Mordaunt]

I can give the hon. Member those assurances. Sometimes, people say that we should not be holding out on these issues, that this is a small contributor to the economy or that it has got some kind of talismanic status because of what went before many years ago, when we first went into the EC. It is not because of those things. This is an incredibly important part of the economy, but also of our communities and our identity as the United Kingdom, and we will not compromise on that. We are a sovereign nation, and these are our waters. We have plans for a resurgence of these industries, and he has my assurances that the Prime Minister will not compromise.

[Lee Anderson (Ashfield) (Con)]

Exactly a year ago today, I was banging on doors in Ashfield telling people we were going to get Brexit done, and we are getting Brexit done, but there has been some speculation over the past few days regarding Brexit negotiations, which has led to a number of Ashfield residents contacting me with their concerns. Could my right hon. Friend please assure the residents of Ashfield and Eastwood that we will regain control over our borders, laws and fisheries, and our economic and political independence will be restored?

[Penny Mordaunt]

I hope that if the EU negotiating team have not heard the resolve of Members on these Benches this afternoon, they will have heard the resolve of my hon. Friend’s constituents. It is absolutely right that this has been confirmed not just in a referendum, but in a general election, giving a very clear mandate about what the British people expect us to deliver on. As we enter the final stages of these negotiations, I hope that is well understood by the other negotiating team, and the sooner they come to terms with that and the Prime Minister’s resolve, the sooner we will be able to get a deal.

[Alec Shelbrooke (Elmet and Rothwell) (Con)]

Can I first congratulate my right hon. Friend on the work she has done in getting the country ready for the new regulations that are coming at the end of this month? I must admit that it seems a bit like the millennium bug, when everybody thought it was going to be a disaster, but we did the prep work and got there in the end. Could I ask her what plans she has in place for other things that may happen between now and 31 December that businesses will need to be ready for and what action plan she has, because the work she has done so far has been outstanding and I would not want it to stumble at the last hurdle?

--- Later in debate ---

[Penny Mordaunt]

I thank my right hon. Friend for his very kind words. It would be remiss of me not to mention, in his absence today, the Chancellor of the Duchy of Lancaster, who has done an incredible job, in addition to his work on the covid pandemic, with chairing XO—the EU Exit Operations Committee—every single day, I think. Since I have been in this post, I have been the default chair, but I have only chaired it on a few occasions. He has done that, he has done a huge amount of work in building rapport with his oppo on the Joint Committee on the withdrawal agreement, and I think he deserves huge credit for the immense efforts that he has taken both on the transition and on ensuring that the withdrawal agreement Joint Committee and its specialised committees are churning through the work that they need to do not just for UK citizens, but for citizens in the rest of the EU. So I shall take my right hon. Friend’s praise and pass it on to the Chancellor of the Duchy of Lancaster.

As I said, there will be very few things that are outstanding that businesses will need to be apprised of that are contingent on the final negotiations. We have put together comprehensive information for all Members in this House, and they will find that in their inboxes. We will also conduct webinars with their caseworkers if there is a demand for that. We have a programme already set up to do that. I would also put on record the incredible work of the border delivery group and civil servants in all Departments, who not just have ensured that we are ready for the transition and whatever comes to pass, but have been working to secure these negotiations. I thank all Members for putting on record in the Chamber today our resolve and our will to get a deal, but not a deal at any price.

[Madam Deputy Speaker (Dame Rosie Winterton)]

We will now have a three-minute suspension to allow for the safe exit and entry of hon. and right hon. Members.

Draft Definition of Qualifying Northern Ireland Goods (EU Exit) Regulations 2020

Penny Mordaunt Excerpts

Tuesday 10th November 2020 General Committees

[The Paymaster General (Penny Mordaunt)]

I beg to move,

That the Committee has considered the draft Definition of Qualifying Northern Ireland Goods (EU Exit) Regulations 2020.

It is a pleasure to serve under your chairmanship, Mrs Miller.

The statutory instrument relates to the establishment of a definition of “qualifying goods” for the purposes of delivering unfettered access for Northern Ireland goods moving to the rest of the United Kingdom market from the end of the transition period. The SI should be seen in the wider context of the Government’s clear commitment to deliver unfettered access, and to guarantee that in legislation by the end of this year. That commitment was made in the 2019 Conservative manifesto and in the ‘New Decade, New Approach’ deal, which restored power-sharing to Northern Ireland. The SI is fundamental to the delivery of that commitment.

Unfettered access is based on several fundamental tenets. First, that there will be no customs and regulatory checks and processes for qualifying Northern Ireland goods moving from Northern Ireland to Great Britain. Secondly, that no additional authorisations or approvals will be required for placing those goods on the market in the rest of the UK; and thirdly, that those goods can continue to be sold throughout the UK market.

The United Kingdom Internal Market Bill puts the building blocks in place for unfettered access for the long term. It will enshrine in primary legislation that qualifying Northern Ireland goods will benefit from mutual recognition—enabling goods to continue to be placed on the whole of the UK market, even where the protocol applies different rules in Northern Ireland—and prohibits new checks and controls as goods move from Northern Ireland to the rest of the UK.

Those are significant and robust protections, and they will be subject to only the most limited possible exceptions, such as to ensure that the UK can comply with its international obligations, for example regarding the movement of endangered species. For those protections to have effect, we must have a definition in law of what are the ‘qualifying Northern Ireland goods’ that benefit from them. That is the purpose of the SI.

It is important to be clear that the policy of unfettered access will be given effect in two phases. The first phase is focused on avoiding disruption and maintaining continuity from the beginning of next year, in line with our broader Great Britain-European Union approach. For that reason, the SI takes a necessarily broad-based approach, outlining that goods will qualify where they are in ‘free circulation’ in Northern Ireland, on the basis that they are not under any customs supervision, as will any good that has undergone processing operations in Northern Ireland under the inward processing procedure, and which only incorporates GB inputs, and inputs that were in free circulation in Northern Ireland.

Those are quite technical descriptions, but in practice they mean no more than no change to how Northern Ireland businesses move goods directly to the rest of the UK from 1 January 2021 compared with now. The SI is an important first step to make sure that Northern Ireland traders can continue to move their goods in an unfettered way from the end of the transition period, which meets the Government’s clear commitment under the ‘New Decade, New Approach’ deal. It is a necessary first step, but we want to guard against the possibility that it is used by other actors who may wish to avoid import formalities that should otherwise be met. That is why the SI is the first phase and will be accompanied in due course by anti-avoidance measures contained in legislation brought forward by my colleagues in the Treasury, which will enable us to take action in such cases.

The SI represents only the initial approach. During 2021 it will be replaced with a regime that targets its benefits on Northern Ireland businesses, to ensure that they have a competitive advantage over other traders on the island of Ireland, and that goods moving from Ireland or the EU are subject to full third-country checks and controls. That regime is in the process of being finalised through work with Northern Ireland businesses and the Northern Ireland Executive. We will provide further details on that in due course. We are also engaging with the devolved Administrations more broadly on the implications of that second phase, and we welcome that ongoing work.

In the meantime, we consider that it is right to proceed in a pragmatic way that maintains continuity for business, and our phased approach will achieve that. I hope that both Houses approve the SI because that will enable us to bring forward clear guidance for businesses that ensures that they are ready for the end of the transition period in that regard. I commend the regulations to the Committee.

--- Later in debate ---

[Penny Mordaunt]

I thank the hon. Member for Sheffield Central for his helpful remarks, and for the Opposition’s support for the SI. It is important that we regulate for the definition of qualifying Northern Ireland goods and that we can move on to provide the explanations and certainty that business would like.

We are discussing a narrow issue, and there are much more exciting things going on this week with the United Kingdom Internal Market Bill, so I will not rehearse all arguments about that now. Fundamentally, the controversial clauses to which the hon. Gentleman referred are about protecting the integrity of the United Kingdom. I believe that that is well understood, certainly by the vast majority of Members of this elected House. That is the purpose of those clauses, and their powers will only ever be drawn on should we be in a situation where they are required.

I assure the Committee that the SI is part of our clear commitment to unfettered access, and I am sure that the hon. Gentleman knows that that is its purpose, along with protecting Northern Ireland’s place in the internal market. Those will remain our overriding priorities in our work in the weeks ahead.

The hon. Gentleman asked whether the definition of ‘qualifying Northern Ireland goods’ is too broad. It is important to note that the SI is part of a phased approach to develop a bridge, and it is intended to be no more than a stopgap to a longer lasting regime that will focus its benefits on Northern Ireland businesses. As I outlined, that regime is being developed with Northern Ireland businesses and the Northern Ireland Executive, and will introduced during the course of 2021. In line with our broad policy, we will take a sensible, practical phased approach to that regime, which is what businesses in Northern Ireland and elsewhere have asked us to do. I note the hon. Gentleman’s concerns, but the SI is just a stopgap measure.

The hon. Gentleman also spoke of the risk of Northern Ireland being used as a back door to the GB market, and cited the seasonal example of mine pies. To prevent any traders from misusing the proposed system, the United Kingdom Internal Market Bill and the SI will be accompanied by anti-avoidance measures. I cannot give him any further information about the timetable other than what is already in the public domain. The anti-avoidance measures of which we spoken about many times, and to which we have a clear commitment, will be introduced in a timely manner to prevent businesses from moving goods via Northern Ireland in order to avoid required import formalities.

On farmers and biosecurity, appropriate authorities can use existing powers and those granted within the United Kingdom Internal Market Bill from the end of the transition period to manage and control the threat of disease, pest outbreaks and so forth in Northern Ireland and Great Britain. That will ensure that our high standards on food safety, plant and animal health, and animal welfare and environmental protections, are maintained while ensuring trade from Northern Ireland to Great Britain can continue as now. Those risks will be managed as and when they arise and they should not be the basis on which we limit access for Northern Ireland businesses to their most important market.

The hon. Gentleman referred to the devolved Administrations, and of course many of the issues that we have dealt with throughout the whole process have been very complex in terms of what powers sit where, how organisations will operate and the frameworks that govern them. I reassure him that we are working very closely with those Administrations. I spend a lot of my time doing that—I have a quad with them this week—when we talk about the issues we are debating today. Of course their views are taken into consideration and account when it comes to shaping the regimes we will set up. They are heavily involved in the operational aspects, and now attend XO meetings when appropriate and of interest to them.

I must say a word in defence of the Chancellor of the Duchy Lancaster, because I think that he is Mr Standards, as he was when at Education or when at the Department for Environment, Food and Rural Affairs, when he worked for animal welfare standards, environmental and air quality standards, and he has been a champion of our retaining those standards throughout this process. A great deal is happening in the world on trade, with moves towards international standards, but fundamentally it comes back to the integrity of the United Kingdom, our country, and the standards that we wish to apply across a raft of sectors. That is incredibly important.

The regulations are simply a stopgap, another stepping-stone on the way to building new systems and regimes, and I am sure that it will not be long before my colleagues at the Treasury and elsewhere bring forward the other measures that the hon. Gentleman inquired about that will ensure that we can give businesses sight of and certainty over their future. I thank all members of the Committee for their attendance and assistance in considering the SI, which is fundamental to achieving that.

Question put and agreed to.

Prosperity Fund Annual Report 2019-20

Penny Mordaunt Excerpts

Thursday 5th November 2020 Written Statements

[The Paymaster General (Penny Mordaunt)]

I wish to inform the House of the publication of the Prosperity Fund’s fourth annual report for the financial year 2019-20.

Over the last four years, the Prosperity Fund has aimed to promote economic growth and reduce poverty in developing countries. As well as contributing towards achieving the UN sustainable development goals, the fund has responded to the increasing demand from developing countries to build deeper trade, investment partnerships, and economic relations with other countries.

I am placing a copy of “The Prosperity Fund: Annual Report 2019/20” in the Library of both Houses. The publication of the report reflects the Government’s continuing commitment to transparency in the delivery of official development assistance.

Attachments can be viewed online at:

https://questions-statements.parliament.uk/written-statements/detail/2020-11-05/HCWS557.

[HCWS557]

Government Response to Covid-19

Penny Mordaunt Excerpts

Tuesday 3rd November 2020 Westminster Hall

[The Paymaster General (Penny Mordaunt)]

It is a pleasure to serve under your chairmanship, Sir Charles. In making a speech, the advice is usually say what you are going to say, say it, and then say what you have said, but I am going to start by saying what I am not going to say, because I understand that the specific rules around this next lockdown were signed off during the course of this debate, and will be published at around 5 o’clock this evening. Some hon. Members have mentioned specifics for places of worship, golf, gyms, and so forth. So as not to give Members duff information, I will not go into detail on that, except to say that I have had daily calls with Members. I have been listening to concerns from many Members about those issues and ensuring that those taking decisions and designing policies are very aware of the concerns of Members on both sides of the House, as well as the importance of things such as exercise to people’s wellbeing, alongside the importance of visits to family members in homes and the isolated elderly in particular.

I am also not going to go into detail about the general issues that my hon. Friends the Members for Ipswich (Tom Hunt) and for Wycombe (Mr Baker) and the hon. Members for Coventry North West (Taiwo Owatemi) and for York Central (Rachael Maskell) have raised about testing, track and trace and PPE. Those issues have been well rehearsed, and those Members’ points have been well made and will certainly be listened to.

I want to get to the heart of this matter, and of the issue that was raised by my hon. Friend the Member for South Dorset (Richard Drax), who secured this debate. I thank him for having done so and, in response to his opening remarks, I will not say that that any Member who has spoken today wishes to let this virus rip. I regret those accusations that have been made in the past about people who are sceptical of the Government’s approach. None of wants to let this virus rip. All of us understand how devastating it is; many of us have had bereavements as a consequence of it. We have all been touched by this virus, and my sympathies go to the hon. Member for Strangford (Jim Shannon). Given that there is no silver bullet on the horizon, hon. Members are rightly asking whether this is the right course of action. That is a completely legitimate question to ask; in fact, it is our job in this place to ask those kinds of questions.

The question is whether we are paying too high a price to push infections out. As hon. Members will know, the Prime Minister has been trying to avoid a second lockdown, and has instead been pursuing local and regional lockdowns in the first instance. However, he has reluctantly decided to take this decision, and outlined his reasons for doing so at the weekend and yesterday in the House. I realise that it is incredibly bad news for many hon. Members and their constituents. I understand that people who are in areas of the country that have very few infections or none will be very aggrieved by this situation, and I also understand that there are parts of the country that have not just had the double whammy of two lockdowns—one gone and one to come—but have been under other restrictions in the interim. That is a very painful place for them to be.

Why are the Government pursuing this strategy? At the heart of it is the NHS. The aim is simple: to avoid hospitals buckling under the weight of covid patients, and to prevent deaths. Shortages of bed spaces and staff in certain parts of the country mean that the system is already under pressure, and we are told that the whole system capacity, including the additional Nightingale capacity, could be overwhelmed by Christmas if we do not take this course of action. Of course, there are costs to healthcare and the NHS of pursuing that strategy. Many hon. Members have spoken, not just today but previously, about the consequences of the first lockdown. We know that there were people who did not seek help —who did not access healthcare. We know that treatments were delayed, and we know that there is a real human cost to delaying those treatments and surgeries.

In social care, too, there has been a price to pay: isolation for many of those in their twilight years, but also—this is often not spoken about—adults of working age, such as those with a learning disability who have seen their care packages cut because of the provisions understandably put into the Coronavirus Act 2020. Mencap’s survey of carers across the UK revealed that 69% of people with a learning disability have experienced cuts to their social care during the pandemic. That is not for any malicious reason: it is because they could not access daycare centres and have the social contact that was so critical to their care. Of course, there will be an economic hit, too: if people are poorer, they are likely to suffer the long-term effects of mental and physical poor health.

However, the Government argue that the price of not pursuing this course of action would be greater than the damage I have outlined. The bottom line is that if the NHS becomes overwhelmed, deaths from covid and other diseases will soar, with doctors unable to treat everyone. The bottom line is that if the NHS becomes overwhelmed, then deaths from covid and other diseases will soar, with doctors unable to treat everyone. That is the worst outcome from the negatives I have outlined.

The strategy that the Government are pursing would indicate that that also has consequences for the future of healthcare spend and policy. Whatever criticisms are levelled at the NHS, it is a very efficient system. People often argue that it could have better outcomes, but it is a lean and efficient system. What it has, it uses. There will undoubtedly be questions in the future about capacity and staffing levels. Lessons must be learned about the future shape of policy in the NHS, as well as the specifics of the pandemic, not just in health but in social care too.

How effective will this lockdown be? It will drive down infections, but by how much depends on who is making the estimate, as we have debated today. Some models show infections being reduced to a quarter of what they are now, but others show reductions of just 10%, in which case the NHS will still be under strain. It will be a fortnight, at least, before people see change. I am afraid to say that those who may sadly lose their lives from covid at the end of November, probably have the virus today.

The Prime Minister and his team think that doing this now will provide the optimum outcome. They are hopeful about being able to unlock in December, but, as they have said, they are being driven by the data. Once lockdown is lifted, as Members have said, cases will rise. It means that a high proportion of the population will remain vulnerable to infection, which is why some scientists expect a third or more waves of the virus to be managed by repeat lockdowns.

Others argue that the need for future lockdowns is evidence that they do not work, but that is to misunderstand what they are there to do. As the Health Secretary has stated, this approach buys us time and is the optimum use of the healthcare we have in the meantime, while capacity is built and vaccines are sought. I thank hon. Members who have paid tribute to those working in health and care, in track and trace, in testing, in the heroic search for a vaccine and in improving treatments.

My hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski), made some comments about devolution. I think it is a good thing, but the price of devolution is divergence and diversity. I know that it has had very real consequences for border communities, particularly for businesses that have been asked to lock down one side of the border and not on the other. We have to learn lessons about better co-ordination from that, and we might try using the same app in the future. Devolution is a good thing and diversity is the price.

Many hon. Members have spoken about the hit to the economy and the human consequence of that. About a quarter of GDP was erased in quarter 2, but in quarter 3 there were signs of a sharp recovery. A number of factors were involved in that, including confidence in the drop-off of cases but also pent-up consumer demand and the Chancellor’s measures to stimulate the economy, which Members have mentioned. I know that Members do not want that choked off. That upturn shows that we have an incredibly robust and innovative private sector.

All of us are impressed by how businesses have adapted swiftly, to carry on and live with this virus, from investing in signage, PPE and sanitiser, dealing with fewer customers, moving online, changing shift patterns and introducing one-way systems in stores. I understand that those adjustments had real costs and, having invested in them, how aggrieved businesses must be to have to close down. We must not forget that.

Before I close, I wish to say a few words about the authoritarian nature of the lockdown, as people have described it. I say that knowing that the British people like rules. Anyone familiar with the off-side rule or the Duckworth–Lewis–Stern method will testify that British people like their rules. They like clarity and fairness, but I understand that they also like to be able to choose to follow rules. I know how uncomfortable many of us are in having to take these measures. I was asked by the Department of Health to take through the Coronavirus Bill and I remember the emotional state of my hon. Friend the Member for Wycombe (Mr Baker), who was kind enough to say that he recognised that I might be in a similar state today.

I know that we have asked our constituents to do very painful things, and there has been real material harm to people’s livelihoods and emotional well-being, including, as my hon. friend the Member for Shrewsbury and Atcham said, women having to give birth on their own. I can assure Mrs Coleman that, in great part due to the efforts of my hon. Friend the Member for Rutland and Melton (Alicia Kearns), those guarantees were secured for women giving birth and, I think, were announced at the weekend.

We are asking our constituents to do very difficult things, and that is matched by how little agency Members of Parliament feel they have over this situation. You, Sir Charles, alluded to this, saying that you felt the only thing you could do was to vote against the Government. However, I think that whatever seat we occupy, whether junior Minister, Secretary of State or Back Bencher, there is always something that we can do. What I will take away from this debate is to feed back to the Government the need for better and clear data. I looked at what the House of Commons provides Members with as well as what Government provide, and there is room for improvement. I will do that, recognising suggestions that hon. Members have made. If there are specifics on data, please let me know. As hon. Members know, I take calls with all MPs every single day, and I want to hear their ideas if they think policies are not working. I will continue to take that forward.

We also need to think about the future and our economic recovery. My hon. Friend the Member for South Dorset, in whose name this debate stands, called for low taxation. We need to think about the future—not just about how we can ensure that we stick to our agenda of levelling up but how we can, through the G20, lead the global recovery as well. We are well placed to do that.

Finally, I think everyone in this debate will agree that we have to learn how we can live with the virus. I know my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin) has suggested that we need a White Paper on that topic, and I will report back. I thank all Members who have taken part in this debate. If there is a lesson we should have learned in this place over the last four years, it is that when politics and politicians are in tune with the British people’s character, success follows. That is a lesson that we should bear in mind in the coming days and weeks.

Covid-19: Future UK-EU Relationship

Penny Mordaunt Excerpts

Wednesday 15th July 2020 Commons Chamber

[The Paymaster General (Penny Mordaunt)]

It is a pleasure to respond to this Opposition day debate, not least because it affords me the opportunity to pay tribute to UK and, in particular, Scottish businesses, which have been so resilient and creative during these unprecedented times. It is not just that we want the economy to recover and that we want to beat coronavirus; it is that we can only defeat coronavirus, and whatever might follow it, if the economy recovers. Without businesses and the tax revenue that they generate, we will not have an NHS or a care system, or room for manoeuvre at the Treasury. I want to thank all those businesses for what they have endured and for all the efforts they are taking to keep going. I am sure the whole House would agree with that.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Will the Minister give way?

[Penny Mordaunt]

One moment, please. I should also like to genuinely and sincerely congratulate the right hon. Member for Ross, Skye and Lochaber (Ian Blackford) and his party on having a policy on the transition period, which is more than the official Opposition have managed to do to date.

In the time I have, I want to touch on some of the very understandable issues that concern hard-pressed businesses about next year and about how the Government are helping to mitigate the economic effects of coronavirus and to prepare for when we will take back control of our borders and leave the single market and the customs union. These will bring significant changes, and also opportunities, for which we all need to prepare, which is why we have already undertaken a series of measures to help businesses and individuals to get ready for the end of the transition period, whatever the circumstances are.

Before I do that, however, I want to put this debate in context. I wonder what the right hon. Member for Ross, Skye and Lochaber thinks the odds are of the Government extending the transition period. How likely does he think it is that we would do that, given that its end date is enshrined in law; given that the Government of the UK were elected on a mandate not to extend the transition period; given that the deadline for asking for an extension to the transition period has passed; given that doing so would simply prolong the negotiations and bring uncertainty for our businesses; given that it would hinder our economic recovery; given that an extension would see us paying more to the EU, which is not a good idea; given that we would have to back EU laws and decisions that we had no say in designing, which is an even worse idea; and given that the legislative and economic flexibility that we need to respond to coronavirus would not be possible? What are the chances of the Government doing that? What are the chances of this Opposition day debate succeeding or having any influence? I suggest none.

The Government have been very clear multiple times that we will not extend the transition period. Some might argue that it is not only undesirable to do so but now impossible, so why are we having an Opposition day debate on this issue, on this particular topic, and not on, say, rewards for health and care staff, not on investment in Scottish infrastructure, and not on food standards or Scottish farmers, which my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) debated recently? Why are we having this debate in a week when key negotiations are ramping up and David Frost is going into bat for Scotland’s interests—[Laughter.] I am sure that Scottish fishermen do not appreciate Members laughing. Why not have a debate on issues that might strengthen his hand in negotiation? Why not hold a debate on fishing or, indeed, on any practical or tangible issues that Scottish MPs on these Benches have been talking about at every single opportunity they have been given to stand up for their constituents. Why pick this issue? Why pick the issue of the transition period? Sadly, it is because the purpose of this debate is not to influence or secure change, or even to suggest any further practical measures that could help business. There was no mention in the right hon. Gentleman’s speech of the phased approach, the Goods Vehicle Movement Service, or Treasury schemes. No, this Opposition day debate is designed to do what Scottish nationalists always try to do, which is, sadly, to further divide, to sow seeds of doubt, to undermine confidence and to highlight differences right at the moment when everyone should be pulling and working together. Stirring up division is clearly something that SNP Members enjoy, and I have never understood those motivations in politics. Even if that is what floats your boat, to do it now, when we should be maximising the benefits and focusing on those benefits for the whole of the United Kingdom and for the sake of all our citizens, is truly amazing. It shows, sadly, that SNP Members, and anyone else supporting them today, will have learned nothing from the past few years.

The sizeable majority that this Government enjoy is, in very great part, down to the fact that the people of this country want to move forward. They want to look to the future, not unpick the past, and they respect democracy. This Opposition day debate is simply an attempt to undermine and prevent an instruction given to this Government by the people of the United Kingdom. The right hon. Gentleman and his colleagues wish to return to division, to chaos, to paralysis, which is what pushing out the deadline for negotiations would do. The motion does not focus on anything practical in the report. That is not surprising really as that report was written prior to the announcement on the phased border and the border operating model. None the less, it is the SNP’s debate today, so, despite the fact that events and people have moved on, I will focus on the issues that those Members have raised.

[Alan Brown]

I thank the Minister for giving way and ending her lecture, telling us what we should be thinking about. If we are talking about division, a lot is predicated on what she said about control of our borders, ending free movement and controlling immigration. Earlier she talked about business resilience. Can she tell me how ending free movement will help businesses, how it will help the fruit and vegetable growers who already cannot get people to do their work? Can she explain what good that will do for the economy and what it will do for food exports, when we have a reliance on EU vets?

[Penny Mordaunt]

I have been through the detail of the report mentioned in the motion and looked at each sector that it focuses on and mentions. We have not just brought through schemes that help to support business and to mitigate the changes that are going to have to be brought in. The Treasury has also introduced schemes in the wake of coronavirus, and I will come on to that. However, I want to address—

[Several hon. Members rose—]

[Penny Mordaunt]

Bear with me.

I want to address the issues the report raises, because the reasons why we are having this debate are illuminating. The report proposes a two-year delay to our timetable and claims that not having one would reduce Scotland’s GDP. The version of the report I have seen says that that will be by £1.8 billion, but the hon. Gentleman refers to £3 billion—a figure that many dispute. However, some say that the cost to UK GDP of a delay would be around 2%.

There are a number of interesting graphs to support the right hon. Gentleman’s points, but I would ask any SNP Member present to add an additional line—one illustrating the hit to Scottish GDP from the break-up of the United Kingdom. Pre Brexit, the Scottish Economic Association put the cost of Scottish independence at 5.5% of Scottish GDP, stating that that would be even greater after Brexit. So why does £1.8 billion or £3 billion matter, when £5.5 billion does not?

The right hon. Gentleman cannot wring his hands about the 144,000 jobs contingent on exports from Scotland—jobs that we are determined to protect—while discounting the 545,000 jobs reliant on trade with the United Kingdom. He cannot claim to mourn the end of EU funding mechanisms that bring benefits to Scottish citizens—and that will be replaced, I might add—and at the same time discount the very real United Kingdom dividend to the taxpayers of Scotland of about £2,000 per household. He cannot complain about the results of negotiations, on the grounds that he thinks he has not been consulted, and at the same time advocate extending a transition period that would make us subject to EU laws, schemes and decisions over which he has had no say whatever. He cannot claim to use economic forecasts to make one argument, but disregard them for another. And he cannot claim to be a democrat, while ignoring the results of votes.

This debate is simply about creating conflict and division, just as the right hon. Gentleman’s press release today is. He has not seen the details of the proposal he alluded to at Prime Minister’s questions earlier, but he does not need to, because the facts are irrelevant to his case, as were many of the things he said in his speech about these proposals.

I want to turn to the substance of what we are doing to support business, because, after all, that is what matters. There will be significant changes and opportunities ahead, and we will help businesses and citizens to manage the necessary adjustments in a very practical and flexible way in order to minimise the challenges and maximise the opportunities. None of those schemes did the right hon. Gentleman mention.

In the withdrawal agreement struck by the Prime Minister, we removed several significant uncertainties that were a feature of our contingency planning ahead of 31 October. We are now taking the necessary steps to ensure that the UK is ready to take advantage of the opportunities. That includes the £705 million of investment announced to make sure we have the right infrastructure, tech and border personnel in place. That is in addition to the £84 million to boost the capacity of the customs intermediary sector. The border operating model and the phased approach we announced earlier have been put in place after extensive consultation with the sector and provide further clarity and certainty for the border industry and businesses.

While we have already made good progress in getting ready for the end of the year, there is still more to do. There are actions that we would strongly encourage businesses and citizens to take now to ensure we are ready to hit the ground running as a fully independent United Kingdom. That is why, earlier this week, we launched a new, major campaign to communicate the steps that we must all take to prepare for the end of the transition period.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I thank the Minister for eventually giving way. She asked many times why we have brought this debate today. Let me just pick out one sector and give her another 1.8. Scotland’s quality food sector exports £1.8 billion of food per year, 70% of which goes to the EU. My question to the Minister is, how many businesses in Scotland has she spoken to about the effects on them, because that, in just one sector, is why we are bringing this debate?

[Penny Mordaunt]

When I came into office I spent a considerable amount of time working with the central office of information and all Government Departments to improve our communications with business. An enormous number of meetings and forums take place not just with me and the Chancellor of the Duchy of Lancaster but with every single Department across Whitehall. Our officials continue to have those discussions and consultations, as do Ministers.

I would say to the right hon. Member for Ross, Skye and Lochaber, who mentioned one or two sectors: you have not spoken about any of the Government schemes. You have not spoken about the phased approach. You have not spoken about free services that are available from Her Majesty’s Revenue and Customs and how they can be improved. You have not called for any of that.

The right hon. Gentleman began the debate calling for leadership and for the Government to adapt. Indeed, the past few months have been an inflection point for nations and individuals. I call on the SNP to adapt: try co-operation; try finding some common ground for the sake of all our businesses and citizens. I would say that to you at any time but now more than ever, against the backdrop of this unprecedented time that we face.

[David Linden]

The Minister talks about the need for the SNP and the Scottish Government to compromise. She is in the Cabinet Office and will be aware of the document, “Scotland’s place in Europe”. Can she name any part of that document, which contains a raft of proposals and compromises from the SNP on the single market and the customs union? On which of those would the United Kingdom Government compromise?

[Penny Mordaunt]

There are many things that I could talk about, but one of the first meetings I held was to put together our negotiating position: we listened carefully to all the devolved Administrations on some of their concerns, particularly on programmes, and we changed our negotiating mandate accordingly. We do listen, and I have taken great pains. I gently point out—I am not going to repeat the vast number of meetings I have had, as I have done that frequently at the Dispatch Box—that as someone who has, in quite difficult circumstances, made sure that I could attend every single meeting that I had planned with the devolved Administrations and the Scottish Government, as I am happy to do, I was stood up by the Scottish Minister. I have shown up for every meeting—the Scottish Minister has not shown up for every meeting.

To conclude, I call on the SNP to adapt—to find common ground—for the sake of all our citizens and businesses, because that is what leadership looks like, and it is what Scotland deserves.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. Before I call the spokesman for the official Opposition, many people in the Chamber are making the serious mistake of calling other people “you”—even the Minister, whom I have never heard make such a mistake before today. I am anxious that people who are new to the House and have not really seen the Chamber operating properly should not be led astray by those who should know better. Throughout Prime Minister’s questions today, people called the Prime Minister “you”. In the Chamber, “you” means the Chair. One addresses other Members as “the hon. Gentleman”, “the hon. Lady” or something else, but not “you”. [Interruption.] Quite. I call Paul Blomfield.

The European Communities (Designation) Order 2020

Penny Mordaunt Excerpts

Tuesday 30th June 2020 Written Statements

[The Paymaster General (Penny Mordaunt)]

An error has been identified in the laying letter for The European Communities (Designation) Order 2020, and as a result it was laid under an incorrect procedure. The Order should have been laid under the negative procedure but the laying letter indicated that there would be no parliamentary procedure. This was due to an administrative error.



A correction has been issued under Votes and Proceedings 23 June 2020.



The statutory instrument was laid on 27 May 2020 and the House authorities have agreed that they consider this instrument to be laid under the negative procedure from the date of laying. I wish to inform the House that the 40-day laying period ends on 3 July 2020.

[HCWS325]

Future Relationship with the EU

Penny Mordaunt Excerpts

Tuesday 9th June 2020 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

(Urgent question): To ask the Minister for the Cabinet Office if he will make a statement on the fourth round of the negotiations on the UK’s future relationship with the European Union.

[The Paymaster General (Penny Mordaunt)]

Negotiators from the UK and the EU held full and constructive discussions last week via video conference led by David Frost, the UK’s chief negotiator. The talks covered trade in goods and services, fisheries, law enforcement, criminal justice and other issues, in which both sides engaged constructively. There was, however, no movement on the most difficult areas where differences of principle are at their most acute, notably fisheries, governance arrangements and the so-called level playing field.

We have now reached an important moment for these talks. To make progress, we need to accelerate and intensify our work, and the Government are working closely with the EU to achieve that. It is our priority to conclude this negotiation in good time to enable our citizens and businesses to have certainty about the trading terms that will follow at the end of this year and, if necessary, to allow any ratification of agreements reached. We have always been clear that such a deal must of course accommodate the reality of the UK’s well-established position on the so-called level playing field, on fisheries and on the other difficult issues, and fully recognise the UK as a sovereign equal.

The House should also be aware that this Friday, the Chancellor of the Duchy of Lancaster and I will be at the second meeting of the withdrawal agreement joint committee. We will be able to update the committee about the positive progress the UK is making on implementing our obligations, not least on citizens’ rights and the Northern Ireland protocol, but we will also emphasise that we will not be extending the transition period, and will push the EU on implementing its obligations under the terms of the agreement.

The Government remain committed to our negotiations with the EU and the implementation of the withdrawal agreement and will continue to keep the House updated on developments.

[Rachel Reeves]

The UK left the European Union in January, and our task now is to build the best possible new relationship with our European neighbours. Our chief negotiator, David Frost, said last week:

“We need to conclude this negotiation in good time to enable people and businesses to have certainty about the trading terms that will follow the end of the transition period at the end of this year”.

We agree, but currently we are in the dark about what this new relationship looks like.

Both the CBI and the TUC are warning about the impact of chaos and uncertainty on jobs and livelihoods. The Association of the British Pharmaceutical Industry warned this week that, as a consequence of covid-19, the stockpile of medicines has been run down and cannot be rebuilt, in terms of volume or range, by the end of this year. The Road Haulage Association says:

“We are still missing the essential practical information on all new processes and procedures”

as the Government look to introduce millions of extra declarations at the border each year. Does the Minister believe that having 50,000 new customs officers to process those declarations will add to or reduce the red tape for UK businesses?

From freight to farming, fisheries to pharmaceuticals, we need clarity. During the general election, the Prime Minister claimed time and again that the Government had an oven-ready deal. Its fundamental ingredients matter, so will the Minister confirm that the Government still, as they did in December, guarantee that there will be no tariffs, fees, charges or quantitative restrictions across all sectors? Leaving on WTO standards, or even a Canada-style deal, does not guarantee that. Will she also confirm that the Government will safeguard workers’ rights and consumer and environmental protections? There is much concern that that is no longer Government policy. Are the Government still committed to a broad, comprehensive and balanced security partnership, which is essential to bring criminals to justice? Will the Government respect the Good Friday agreement in its entirety?

To conclude, this is not just a deal between the UK Government and the European Union. Through the course of the election, it was the basis of a deal with the British people. We urge both sides to redouble their efforts over the next few days and weeks to ensure that progress is made by the end of this month, so that the Government can honour their commitment to ensuring a good deal for Britain by the end of this year.

[Penny Mordaunt]

I thank the hon. Lady for those questions. At the start of her response, she made a powerful argument for not extending the transition period. If we have learned anything over the last few years, it is that that would only extend the negotiations. I agree that business, our citizens across the EU, and the rest of the world, with which we are also focused on trade negotiations, want to have certainty about the future, so we must press on with that. That is one of the many reasons why we will not extend the transition period.

The hon. Lady is also right to draw attention to the fact that the covid crisis is going on. I know that she is aware of the huge amount of work that was done last year on no-deal preparations, and the tremendous work that civil contingencies and all Government Departments have been doing to ensure that supply chains remain strong, that we can quickly adapt, and that we have stocks of all sorts of goods, including the medicines that we need. These are challenging at times, in the light of what the world is facing, but they are our focus. I assure her of the incredible work that those civil servants are doing to ensure that our citizens have what they need when they need it.

I take a keen interest in those areas as a former employee of the Freight Transport Association. We will shortly be saying more about our border operations. A tremendous amount of work has gone on to improve on our communication with businesses from every part of the UK last year to ensure that is good, and that we are not just giving people the right information, but picking up solutions from the sector, because that will be key to getting it right.

On the hon. Lady’s remarks about rights, animal welfare, security, zero tariffs and zero quotas, our policy has not changed. We will of course respect the Good Friday/Belfast agreement and we expect the EU to do the same.

[Mr William Wragg (Hazel Grove) (Con)]

Regrettably, is not the insurmountable blockage in this entire process the refusal of the EU to accept the UK as a sovereign nation and, therefore, its refusal to countenance a large-scale copy and paste of existing arrangements with the likes of Canada, South Korea and Japan to reach a mutually beneficial trading partnership?

[Penny Mordaunt]

My hon. Friend makes a good point. The areas where we still need to make progress will be helped when the EU remembers that we are a sovereign equal.

[Pete Wishart (Perth and North Perthshire) (SNP)]

Surprise, surprise: there is no Michael Macavity; when the going gets tough, the tough get gone in this case. It now looks like the Minister for the Cabinet Office will secure the no-deal Brexit he has always coveted. It will be misery heaped on misery, as covid and Brexit appear like the twin horsemen of the economic apocalypse trampling over any prospect of recovery.

Whose fault will that be? Obviously, not the Government’s: “Nothing to do with us, guv. It’s all these nasty, invidious Europeans. How dare they hold the Government to the commitments they’ve already given in good faith? These fiendish Europeans, asking us to deliver on what we’ve already agreed to.” When they sit down to negotiate, it is like watching Scotland’s B team take on Brazil of the 1970s. It is almost cruel to observe them with their screeds of documents and facts, and Team GB with its ill-fitting clown shoes.

We are having nothing more to do with this. Scotland is wanting out of all this. Another opinion poll at the weekend showed a majority for Scottish independence once again. The Union that we covet is not their failed variety; it is the European Union one. Does the Minister concede that we will have no deal, and that there is no way Scotland will be part of that impending disaster?

[Penny Mordaunt]

I am sorry that the hon. Gentleman is disappointed to see me here today. I am always delighted to see him, and he will know that the Chancellor of the Duchy of Lancaster needs no encouragement to come to the Dispatch Box. My right hon. Friend has come to update the House and appeared in front of Select Committees, and he is committed to doing so. I am here because he is unable to attend today.

I am not sure there was a question in the hon. Gentleman’s remarks, but I reassure him of my commitment to working with the Scottish Government to ensure the best possible outcome from these sets of negotiations. I have been changing the format of how that is done, and we have put more time into key areas such as fisheries, to ensure that the Scottish Government have everything they need to contribute. We must ensure that we work together, constructively, and get what our businesses and citizens need.

[Mr Laurence Robertson (Tewkesbury) (Con) [V]]

Given that the German constitutional court recently said that Germany does not have to follow rulings from the European Court of Justice if that goes against German interests, despite Germany being a member of the European Union, would it not be unreasonable to expect the United Kingdom to obey any rulings from the European Court of Justice, now that we are no longer a member of the European Union?

[Penny Mordaunt]

My hon. Friend makes a good point. The German constitutional court decision emphasises the point that we are a sovereign equal, and the EU needs to accept that. That decision will obviously have implications for the EU to consider.

[Hilary Benn (Leeds Central) (Lab)]

Article 131 of the political declaration states that if a dispute raises a question of interpretation of Union law,

“the arbitration panel should refer the question to the Court of Justice of the European Union…for a binding ruling as regards the interpretation of Union law.”

Given what the Minister just said, do the Government still stand by the commitment that the Prime Minister signed up to in October?

[Penny Mordaunt]

The political declaration is not a treaty and there will be differences on both sides as to its interpretation. The point we have emphasised in the past few days is that the EU cannot be the referee in that.

[Selaine Saxby (North Devon) (Con)]

I have received a large number of emails from farmers and constituents in North Devon who are concerned about food standards once we leave the EU. Will my right hon. Friend assure me, and worried constituents, that we will retain our current food standards, and prevent the import of chlorinated chicken and other inferior food?

[Penny Mordaunt]

I refer my hon. Friend to the very good joint letter that was recently sent out by the Secretaries of State for Environment, Food and Rural Affairs and for International Trade. In this we should be trusting the consumer—if people do not want to put their faith in Government, we should trust the consumer, and I think consumers want high-quality, fairly priced food, with high animal welfare standards.

[Fleur Anderson (Putney) (Lab)]

It is clear from the Minister’s remarks that this deal is far from “oven-ready”. Are the Government prepared to say no to any deal that will diminish our food and environmental standards and undermine British farming?

[Penny Mordaunt]

Of course we are working towards a deal on those issues, and many others. On some issues we very much feel that our interests are better served by having separate agreements. The key point is that we cannot keep negotiating for ever, and we must allow our businesses, farmers, and citizens time to implement the decisions taken. That is why we are now at this key stage and have to increase and escalate negotiations. We need to arrive at a deal soon.

[Robert Courts (Witney) (Con)]

The EU is insisting on level playing field guarantees,  the extent of which are not seen in any similar agreements and to which no sovereign country could agree. Does the Minister agree that if we are to reach that mutually agreeable and profitable deal, the EU will have to stop cherry-picking?

[Penny Mordaunt]

I thank my hon. Friend for that well put point. The EU’s proposals would bind us into EU law and impose controls over our domestic legal regimes, which cannot be acceptable. It is not in the political declaration and it is certainly not in any free trade agreement that I know of.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP) [V]]

Tapadh leibh, Mr Speaker, and thank you for enabling this. During the covid crisis, people are getting a taste of border restrictions and they do not like it. Leaving the customs union and the single market would give businesses more significant Brexit borders. Anybody worth their salt in business and trade negotiations knows the numbers. Given that there is no good Brexit for the economy and that the damage to the economy was reckoned by the UK Government at one stage to be between 6% and 8% of GDP, does the Minister have updated figures for the damage, deal or no deal, to the UK economy, jobs and business, or are we still looking at 6% to 8%?

[Penny Mordaunt]

The Government’s policy is that, over the medium to long term, our approach to Brexit will maximise the economic benefits to the United Kingdom. That needs to be our focus in not just our negotiations with the EU but the work we are doing on rest-of-world trade. There are massive benefits for every part of the UK from that, and that is what we should all be working together to achieve.

[Scott Benton (Blackpool South) (Con)]

The speculation regarding a possible extension of the transition period is concerning the residents of Blackpool, nearly 70% of whom voted to leave the European Union. Does my right hon. Friend agree that extending the transition period at this point would merely prolong the negotiations, prolong the uncertainty for businesses, and delay the moment at which we can finally gain back our control of our borders; and that none of those things are in the best long-term interests of the United Kingdom?

[Penny Mordaunt]

My hon. Friend’s constituents are very wise indeed. It would just prolong the negotiations. It would also see us paying into the budget and being subject to laws that we had no say in designing.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The Minister spoke a moment ago about accommodating reality. May I urge her to accommodate reality on the supply of crucial medicines and other supplies to our NHS rather than false hopes and aspirations, which have not served us well in the current crisis? The pharmaceutical industry said, in an internal memo provided to the Government in May, that after the pandemic ends there will be:

“less or zero product available in the market to allow for stockpiling of a broad range of products.”

Who is right: the pharmaceutical industry or the Minister?

[Penny Mordaunt]

The hon. Gentleman is right that there are challenges, but those challenges are known and a huge amount of work is going on to ensure that we can address them. We will be saying more in the coming weeks about those issues and on our border operations.

[Nicola Richards (West Bromwich East) (Con)]

We have heard that Germany thinks it can pick and choose which laws it complies with, yet Mr Barnier still expects us to be subordinate to EU laws. The Minister said that there will be implications for the EU. Does she agree that this not only undermines the negotiations but the EU project as a whole?

[Penny Mordaunt]

The judgment of that court clearly raises issues that are for the EU to consider, and not for me at the Dispatch Box. The key point that my hon. Friend outlines is that we are a sovereign equal in the negotiations. Once the EU accepts that and looks at the negotiations from that perspective, we can make some progress on those remaining tough issues.

[Claire Hanna (Belfast South) (SDLP) [V]]

On 20 May, the Chancellor of the Duchy of Lancaster said in the Chamber that the UK was now prioritising the principle of consent—the Government’s interpretation of it. On the same day, in relation to the Command Paper on the Ireland protocol, the Government insisted that the Northern Ireland Assembly should have the final say on the protocol. The Assembly finally gave a say on Brexit when it voted last week to request an extension to the transition period to allow businesses, which are currently in the fight of their lives due to covid, to adapt and to have the certainty that the Minister refers to. If the Northern Ireland Assembly’s consent is so vital, should the Government not listen to what it says?

[Penny Mordaunt]

Many of the issues, including the protocol, will ultimately rest with the people of Northern Ireland through their elected representatives. However, for the reasons that I have already set out, we will not extend the transition period. We believe that it would not be in the interest of any part of the UK to do so. It would just prolong negotiations. Hon. Members on both sides of the House, including those who have recently joined, will know what that looks like, having seen what happened to this country over the past few years.

[Jo Gideon (Stoke-on-Trent Central) (Con)]

The people of Stoke-on-Trent, who voted overwhelmingly for Brexit, expect the extension not to happen. A comprehensive free trade agreement could easily be agreed by both parties, without major difficulties, in the time available. Does my right hon. Friend agree that the EU must accept that the UK is an independent sovereign state and an equal partner in these negotiations?

[Penny Mordaunt]

My hon. Friend makes some very good points. Yes, absolutely: we are a sovereign equal and the EU must accept that. She is also right to point out that we are not starting from scratch in these negotiations. There are many precedents being set and the asks we are making are extremely reasonable and are found in many other arrangements that the EU has with other nations.

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

Farmers and crofters in my constituency and across the country require a minimum of two things from these negotiations: tariff-free access to the European markets, and the protection that their produce gets from the protected designation of origin regimes. Given the Minister’s description of progress in negotiations, how likely does she think they are to get that, and what would she suggest they do if they do not?

[Penny Mordaunt]

We are very aware of the asks of every sector in Scotland. I have been working with all the devolved Administrations to ensure that they are able to feed in. Indeed, those discussions have materially changed the shape of the negotiations. We will continue to do that. They know that I am committed to doing that. Many of the things we are asking for are in everyone’s interests. They are mutually beneficial things, so I remain optimistic.

[Felicity Buchan (Kensington) (Con)]

Financial services are very important to my constituency, and indeed to the country as a whole, given their huge contribution to the Exchequer and the number of people they employ, not only in London but in Scotland and in the north of England. Will my right hon. Friend assure me that the interests of financial services will be protected as part of the negotiations?

[Penny Mordaunt]

I can give my hon. Friend those assurances. We are obviously working very hard to deliver for that sector. It is a sector that was not well served—the whole of services were not well served—by our previous relationship with the EU. The asks that we are making with regard to financial services are in other agreements that the EU has, notably that with Japan, so we think it perfectly reasonable that they be extended to us.

[Nick Smith (Blaenau Gwent) (Lab)]

Ebbw Vale in Blaenau Gwent has a European-based car parts manufacturer that provides well-paid jobs. What engagement have the Government had with this sector and its trade unions about their role in these negotiations?

[Penny Mordaunt]

I thank the hon. Gentleman for his question. One of the areas that I look after in the Cabinet Office is our communications. We have had a complete overhaul involving every Government Department, including those for local government and for transport, which will be key to the sector that he raises, to improve our communications. Clearly, a lot of policy announcements are yet to happen because they are contingent on decisions that have been taken, but that structure is now in place. I make the commitment that the communications between all sectors and Government will be considerably better than what happened last year.

[Nickie Aiken (Cities of London and Westminster) (Con)]

What assurances can my right hon. Friend give to businesses in the Cities of London and Westminster that both the UK and the EU are keen to have certainty and clarity in any future relationship, particularly to deliver an attractive business and investment environment, since financial and professional services will play a huge part in the post covid-19 economic recovery?

--- Later in debate ---

[Penny Mordaunt]

My hon. Friend makes an extremely good point. The City of London is not just vital to the UK’s economic recovery; it is also a key institution for many nations around the world. We must ensure its success, and I assure her that the Government are very focused on that.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

I voted for the European Union (Withdrawal Agreement) Bill. I want the Government to get a good deal. Delay will only increase uncertainty, but last week it was reported that talks about the oven-ready deal have stagnated. What red lines will the Government compromise on, if at all, to achieve that promised deal?

[Penny Mordaunt]

I thank the hon. Lady for her commitment to helping us deliver a good deal. The key aspect of why we cannot let these negotiations go on is that prolonged uncertainty. We believe that our asks are very reasonable. There are precedents set. They are upholding our rights in international law, and we will continue to ask for them. What is required is for the EU to understand that we are a sovereign equal in these negotiations, and I hope that that happens in the coming weeks.

[Julian Smith (Skipton and Ripon) (Con)]

I welcome the Minister’s comments on speed. We need to give people and businesses notice as soon as possible about the changes that they need to prepare for. On guidance, may I urge her to look at the fact that many businesses have not realised the consequences of coming out of the single market and the customs union? We can start preparing them for that reality. On the Northern Ireland protocol, there are businesses reporting to me that they are now moving jobs to the Republic. What progress has been made on implementing and discussing the checks and other measures that businesses will have to prepare for in Northern Ireland?

[Penny Mordaunt]

I thank my right hon. Friend for that important question. In addition to shortly being able to talk more about border operations and how we envisage things working in the future, we are already in discussion with businesses in every part of the UK. The Secretary of State for Northern Ireland has led some of those discussions. We have received a great deal of submissions from businesses in Northern Ireland, and those views are being taken into account as we design what the future will look like.

[Patrick Grady (Glasgow North) (SNP)]

The London mayoral elections have been delayed by a year. The conference of the parties on climate has been delayed by more than a year. Where is the harm in delaying the Brexit negotiations for a year as well, so that we can get it right, by understanding the impact that the pandemic is having and will continue to have at the end of the year rather than going barrelling off the cliff edge? All it would take is a phone call, and we would give people the kind of certainty that we are being asked for by taking the time to get it done properly.

[Penny Mordaunt]

We will not be barrelling off a cliff edge. One of the reasons why we want to conclude the negotiations is to give people time to prepare for the end of the year. The hon. Gentleman is right to point to the fact that the situation we are in with covid has been grave. We need to ensure that our economies recover swiftly, and they will be helped not by perpetuating the uncertainty we saw over the last few years, but by enabling business to get on with it and using our finite resources to facilitate levelling up in the United Kingdom, not paying into an EU budget that we will never see any upside from.

[Tom Hunt (Ipswich) (Con)]

We have recently seen an unacceptable increase in the number of illegal migrants entering this country through unauthorised crossings across the English channel. Does my right hon. Friend agree that being tied to EU rules and regulations during the transition period makes the return of illegal migrants more difficult, which underlines one of the important reasons why we need to end the transition period on 31 December? Will she assure me and my constituents that the UK will rebuff any EU attempt to make a new deal on illegal immigration contingent on us conceding in other areas of negotiations?

[Penny Mordaunt]

All nations have an obligation to combat the appalling and dangerous trade in human beings. Britain has chosen to do that, partly because of our geographic location, by putting in large amounts of funding upstream to create job security and food security and alleviate the need for people to move away from their homes to seek a better life. We will always uphold our obligations and our humanitarian obligations, and we want all other countries to do the same.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

When does the Minister hope to be able to offer some reassurance to the west midlands motor industry that the negotiations will protect the industry and will not result in the imposition of a disastrous tariff on UK-manufactured vehicles intended for European export?

[Penny Mordaunt]

That and many other matters are why we want to increase the pace of negotiations. We will soon be able to talk about some of the operational aspects in respect of how we see our border working and many other issues that will be of interest to that sector. In preparation for that we have done a huge amount of work to ensure that we are talking to everyone we need to.

[Dr Kieran Mullan (Crewe and Nantwich) (Con) [V]]

The reality is that a comprehensive free trade agreement, with all the benefits it could bring to both parties, is well within reach. Does my right hon. Friend agree that, rather than discussing an extension with Opposition parties, the EU should focus on securing a deal so that we can reach an agreement by the end of the year?

[Penny Mordaunt]

I do agree with my hon. Friend. It is vital that we get a move on with this; it is in the interests of the UK and the EU that we do so. The EU must accept that we are a sovereign equal in the negotiations; I think we will then make some progress. In fairness to the Opposition, even though they are campaigning on a transition period, they have not quite adopted that as their policy—I suspect because they know it would be crazy to extend it.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Scotland has important trading links with Northern Ireland, but Stena Line is really struggling because of covid-19. The Minister keeps talking about certainty; so that we can look forward with certainty, will she be the first Minister to explain how the invisible border between Northern Ireland and Ireland is going to be maintained? What technology has been invented and will be deployed in time for the end of the transition period? How will she ensure that that does not affect the movement of goods and people between Scotland and Northern Ireland?

[Penny Mordaunt]

The hon. Gentleman raises some important points. We will soon be able to talk in depth about border operations. I am not able to do that today, but he will not have long to wait.

[Theresa Villiers (Chipping Barnet) (Con)]

The nature of the trading relationship that the UK is now seeking with the EU means that, whatever the outcome of the negotiations, the formalities with which exporters will need to comply will change on 1 January. I urge the Government to step up engagement so that businesses large and small throughout the country are ready for the end of the transition period and all the formalities that will bring.

[Penny Mordaunt]

My right hon. Friend makes an incredibly important point that is absolutely accepted. We hope to be able to start to do that very soon indeed. In advance of that we have, as I have alluded to, done a tremendous amount of work, looking at all the stakeholders that Departments are working with and ensuring that we are talking to all the businesses that we need to, not just the obvious ones that are always at the roundtables. We do a good job not only of communicating that but of listening, because many of the solutions that need to be put in place will be derived from the ideas of businesses themselves.

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

I am sure the right hon. Lady will agree that we need a good deal. We need a deal in the time that we have set ourselves, but to get that, we need a mixture of trust, competence and integrity. As a new member of the Committee on the Future Relationship with the European Union, I—and the team—had the privilege yesterday of interviewing Michel Barnier and the Minister’s boss, the Secretary of State. Does it not worry her that I get a real feeling that the trust, competence and integrity are more on the Barnier side than on her boss’s side? Why can we not get a movement in which we look back to the political declaration and stick to its principles?

[Penny Mordaunt]

I am very disappointed to hear that from the hon. Gentleman. On the withdrawal agreement Joint Committee, I am Barnier’s oppo, and I thought I was charming.

[Dr Liam Fox (North Somerset) (Con)]

No one would disagree with that sentiment. Post-covid, it will be essential to get the global trading system moving, and nothing could give greater confidence in that system than seeing a UK-EU trade agreement in place. To enable that to happen, the EU could give Britain a Canada-style agreement. Does my right hon Friend agree that the UK has a right to expect from the EU no less than what the UK itself agreed, as part of the EU, with Canada?

[Penny Mordaunt]

My right hon. Friend makes a very good point, which I agree with wholeheartedly. He is also right to put the focus on rest-of-world trade. Clearly, many decisions that will be taken in the negotiations and the workstreams going into implementing the withdrawal agreement are linked to our ambitions with rest-of-world trade. We must always remember that while the EU side of things is clearly a priority for many in this House, we ought also to be talking about the opportunities that exist with other nations around the world.

[Jim Shannon (Strangford) (DUP)]

I congratulate the Minister on her stance and her determination to deliver Brexit. Will she outline whether there have been further discussions regarding our agrifood and fishing sectors in the United Kingdom, and in Northern Ireland in particular, with special reference to the protection needed to secure our dairy, beef, pork, poultry and fish markets? What have the latest discussions brought about to ensure that that happens?

[Penny Mordaunt]

The last round of negotiations touched on all the workstreams. There was in-depth discussion across all areas, and it was very constructive on both parts, but as I outlined in my opening statement, there are some very tough areas. One of them is fishing and we are asking for our rights, as enshrined in international law, to be upheld. We are not wavering from that point, and the EU needs to recognise that.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

In my last exchange with the Chancellor of the Duchy of Lancaster on 27 February, we learned that we were going to need 50,000 new customs officers by the end of the year. What assessment has the Department made of the annual cost to the UK economy of those officers, and who is going to foot the bill for them?

[Penny Mordaunt]

Our civil servants have been working on the personnel, training and recruitment aspects of this, and on the many other aspects that will need to be put in place. There are regular updates on readiness with our partners and with the devolved nations. I am leading on that aspect. Where there are additional costs to be borne, there is work that needs to be done, and the Treasury is aware of that fact. I am personally keen to see that where we are making investments, whether in personnel or in additional facilities that need to be created, we are also looking at the economic opportunities that will come with that for particular areas. I know that the Treasury is very keen on that, too.

[Dame Cheryl Gillan (Chesham and Amersham) (Con) [V]]

With both sides being confident that a deal can take place by the end of year, the EU ratification process means that, in practical terms, agreement probably needs to be reached by the end of October. Ratification in the UK can take place relatively quickly. What guarantees has the Minister received from Michel Barnier that the EU will not allow a deal to fall because of the time it would take to complete the complex EU ratification processes?

[Penny Mordaunt]

All sides are very aware of the timetable we have to operate in, which is why we want to increase the pace of discussions and focus on those remaining tough issues, but we will not extend the negotiations. We are determined to ensure that any ratification or other practical measures needed can be done by the end of the year. That is critical and the reason we want to conclude the negotiations swiftly.

[Stephen Farry (North Down) (Alliance)]

The Northern Ireland protocol is the sad and inevitable consequence of Brexit and the need to protect the Good Friday agreement, but it is right we do all we can to mitigate its impact. Does the Minister recognise that the greater the divergence by the UK from the EU—or indeed the absence of any trade deal by the end of the year—the greater the impact down the Irish sea in terms of checks and bureaucracy?

[Penny Mordaunt]

The best way to protect the Belfast/Good Friday agreement and to implement the protocol is to take a pragmatic approach that always has at its forefront jobs and the economy in Northern Ireland. That is why it is our policy that there should be no new procedures, no new customs infrastructure and no tariffs on internal UK trade, and that remains our policy.

[James Wild (North West Norfolk) (Con)]

Does my right hon. Friend agree that even the five months that Monsieur Barnier talked about on Friday for finalising legal texts on an agreement on the level playing field, fisheries and other matters is possible, provided that the agreement reflects the fact that we have left the EU? Is not what is needed here the flexibility in the EU mandate that we saw when the Prime Minister successfully renegotiated the withdrawal agreement?

[Penny Mordaunt]

I agree with my hon. Friend wholeheartedly. Remember, we are not starting from scratch; there are many precedents and it is perfectly possible for us to make progress. I sincerely hope we do so.

[Kirsten Oswald (East Renfrewshire) (SNP) [V]]

Last week, the Chancellor of the Duchy of Lancaster told me we did not need a Brexit extension, just good will on all sides, but this Government keep making commitments and then ditching them—hardly the way to encourage good will. Will the UK Government finally admit that they cannot deliver on their own commitments and just come clean that the real strategy is to crash out of the EU, leaving the rest of us to pick up the pieces?

[Penny Mordaunt]

No, that is not the strategy. The strategy is to escalate the pace of the negotiations, which the EU is aware is required, and make progress. As I say, in the latest rounds last week we had very constructive discussions on all workstreams, but there remain areas we need to focus on in the coming days and weeks. That is what we need to do. It is in everyone’s interests—not just ours in the UK, but the EU’s—that we secure this deal, and I remain confident that we will get there.

[Brendan Clarke-Smith (Bassetlaw) (Con)]

Our historic immigration Bill will end free movement, take back control of our border and pave the way for a new points-based immigration system. Does the Minister agree that as we come through coronavirus it is vital that we have this new immigration system in place so that we can attract the brightest and the best from around the world?

[Penny Mordaunt]

We need flexibility and the ability to respond to what our economy needs. Our immigration system needs to be based on a proper understanding of our own labour market and the needs of each local area, and yes, that will present us with opportunities that we need to be ready to seize.

[Munira Wilson (Twickenham) (LD)]

The CBI says that the coronavirus has left companies with almost zero resilience to a chaotic exit from the single market. Ending the Brexit transition period without a deal would on its own be an act of economic vandalism. To do so in the face of coronavirus would be economic vandalism on steroids. This is no longer about leave or remain; it is about a Government acting responsibly in the interests of their citizens. Will the Minister please put ideology aside and persuade her colleagues that it is time to seek an extension to the transition period?

[Penny Mordaunt]

All that seeking an extension would do is to prolong negotiations. We need to conclude the negotiations and get a good outcome. Not pushing deadlines out will help do that. Then we need to give our citizens and our businesses time to prepare; time to socialise them with the new border operations. That is our plan; that is what is going to happen. All that extending the transition process would do is push negotiations out. We would be back to where the British people do not want to be—to uncertainty and chaos. They want clarity. They want to get a move on and they want to maximise the benefits of being outside the EU.

[Harriett Baldwin (West Worcestershire) (Con)]

Is this not the only trade deal in history that starts out from a level playing field? Should that not make it much easier for us to find a pragmatic way forward?

[Penny Mordaunt]

My hon. Friend makes a very good point. It is not just that we have been in this partnership with the EU but the fact that its arrangements with other nations set the parameters for many of the things that we are discussing. This is perfectly doable. It is just a matter of good will and focus, but there is good will, and there is increasing focus.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

Time is running out, and there is a real risk of a cliff-edge Brexit, which would come in the context of a health pandemic and the associated economic crisis, with rising unemployment towards the end of the year. Have the Government initiated any planning for the event of a deal not being reached?

[Penny Mordaunt]

It would be prudent and wise for us to prepare for every scenario, just as we have always done. We did so last year and then did not need to implement those preparations. I am confident that we can not only come to an agreement but do so in a timeframe that gives people the time that they need to prepare and to understand. We are very aware of the other things that are going on in the world that form the backdrop to that. Our approach is going to be achingly pragmatic.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

The EU says repeatedly that it accepts the fact of Brexit, yet its entire negotiating strategy seems to be geared to keeping the UK squarely in the legal and regulatory orbit of the EU. Does my right hon. Friend agree that unlocking the deal will require flexibility and good will but also fundamentally requires the EU to be realistic and honest about the path that the UK has chosen?

[Penny Mordaunt]

My right hon. Friend makes very good points. The EU needs to recognise that we are now a sovereign equal and negotiate with us on that basis. There are massive opportunities from us coming to a deal. The EU will be aware of those opportunities, and I hope that we can get the focus that we need to resolve the remaining issues and get a move on for their Union and ours too.

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (SNP) [V]]

The Minister talks about time to prepare, yet the House has no clarity on where or how we will land, and businesses the length and breadth of the UK still do not know what tariffs will apply, which regulations they should follow, what customs processes will apply, how people and data can cross borders or whether professional qualifications will be recognised. Can the Minister honestly look business owners in my constituency and across Scotland in the eye and tell them that they are meant to prepare all of this in the next six months while battling the impacts of a global pandemic?

[Penny Mordaunt]

We are very aware of the backdrop against which these negotiations are taking place. Hon. Members will not have long to wait before they learn more about border operations, but in many of the areas that the hon. Gentleman mentions, we have made progress, and that progress is in the public domain. In other areas, we are simply asking for a reciprocal relationship for things that we currently do for other nations.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con) [V]]

As we begin to recover from the coronavirus, while a deal would be very welcome, does my right hon. Friend agree that the UK needs as much flexibility as possible to help rebuild our economy and communities, and that remaining bound by EU law during this time would not allow us to do that?

[Penny Mordaunt]

My hon. Friend is absolutely right; we have left the EU. At the end of this year, we will be a fully independent and sovereign nation. Our interests are best served by having that flexibility with rest-of-the-world trade and with the choices we make about our trading arrangements with others, as well as the EU. That is the basis of our negotiating position and it is one that we will hold to.

[Hywel Williams (Arfon) (PC) [V]]

Is it not now inevitable that both Northern Ireland and Irish companies alike will increasingly look to use the new generation of massive roll-on roll-off ferries for direct links with the mainland in Europe, which will have disastrous effects for bypassed Welsh ports such as Holyhead?

[Penny Mordaunt]

As someone whose constituency is a port, let me reassure the hon. Gentleman that I very much understand the concerns the sector has. It wants information about future operations, and support to put in place any adjustments that need to be made and timely information about them. A tremendous amount of work has gone on with ports, and the organisations they work with and rely on, in advance of announcements about border operations and future arrangements, as he will know, and we will continue to do that. We have to maximise the economic opportunities such investments in UK infrastructure will bring for his constituents and others around the country, and we will do that.

[Mr Richard Holden (North West Durham) (Con)]

A comprehensive free trade agreement can easily be reached by the end of the year between the UK and the EU for one simple reason, which is that we are starting from the same place. Does my right hon. Friend agree that it is time for the EU to get on with it and start negotiating in good faith?

[Penny Mordaunt]

I think that behind the political bluster there is good faith, because not only are we starting out from similar positions, as my hon. Friend points out, but a good deal is in our mutual interests. That is why I have always remained optimistic about the outcome of this process. [Interruption.] Because the EU needs to recognise us a sovereign equal, and I hope that it does.

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP) [V]]

World trade is forecast to decline by up to a third in 2020 due to the coronavirus pandemic, and that could encourage a move to more protectionist trade policies globally. Given that context, why does the Minister think it is a good idea to rush through major changes to the UK’s trading relationship with the EU, when businesses want more time to recover from the economic shock of coronavirus and avoid a no-deal scenario?

[Mr Speaker]

Minister, are you all right with that?

[Penny Mordaunt]

The hon. Lady was cutting out, but I think I have got the gist.

We believe in free trade and do not want protectionist practices, not just because that is in our interests, but because we believe it is in the interests of every nation on earth. I assure her that one reason why we do not want to extend the transition period and we want to conclude the negotiations swiftly is to give businesses and her constituents time to prepare before the end of the year. Our approach to that, on our borders and on many other aspects, is going to be extremely pragmatic and sensible, and once business hears more about it, I think it will be reassured.

[Robbie Moore (Keighley) (Con)]

Many constituents from across Keighley have expressed to me their frustration at the speed with which the EU is progressing with these negotiations. My right hon. Friend has been clear that we need to see a significant step forward in the EU’s approach if we are to reach an agreement by the end of this year. Can she confirm that the Government are prepared to walk away from these negotiations if adequate progress has not been made, and that we are prepared for that eventuality if needs be?

--- Later in debate ---

[Penny Mordaunt]

My hon. Friend makes some very good points. The key aspect to this is, as I have said, the timing. There is no point in our arriving at an agreement at the 11th hour: we have to arrive at an agreement to enable it to be implemented and ratified, but also in order for our citizens and businesses to prepare. That is what is dictating the timetable, and that is why we must have renewed focus. We are talking to the EU about having a change of format—about how we can increase the pace of negotiations, get the focus where we need it to be, and get a deal done for both our sakes.

[Chris Bryant (Rhondda) (Lab)]

Easy extradition has made it possible for paedophiles, murderers and violent criminals to be brought to justice in the UK from other countries in the European Union. I understand that the Government have now given up on the European arrest warrant for the UK. Several countries, including Germany, Austria and Slovenia, have made it clear that constitutionally they will not be able to extradite to the UK when we are no longer a member of the European Union. How are we going to make sure that we do not become a protected place for European criminals?

[Penny Mordaunt]

On that issue, but on many other issues related to law enforcement and security, the negotiations have been good and constructive. We were having discussions on those areas last week and making good progress on them. Ultimately, though, having an arrangement, whether it is on other aspects of security or on protecting all our citizens from those who would wish to do them harm, is in our mutual interests. I have said this from the get-go since the referendum, and I am confident that common sense will prevail.

[Jerome Mayhew (Broadland) (Con)]

Having a deadline promotes deals, and I have high hopes for the negotiations over the next few weeks. But does my right hon. Friend agree that where there is no sign of a convergence in negotiating positions, an extension of the transition period, four and a half years after the referendum vote, would serve no purpose other than to cost us money, prolong business uncertainty, delay effective control of our borders, and hamper our economic response to the covid crisis?

[Penny Mordaunt]

My hon. Friend is damn right.

[Andrew Gwynne (Denton and Reddish) (Lab) [V]]

One of the concerns has always been the potential for a future British Government to deregulate hard-fought workers’ rights. That ought not to be a worry if there is political will, so have the Government met trade unions and the TUC about maintaining and, indeed, improving our employment standards outside of the EU once the transition period ends in December?

[Penny Mordaunt]

Of course, not only the Cabinet Office but many other Government Departments have negotiations with a wide range of stakeholders, including the unions. The British people value the things that the hon. Gentleman has spoken about. They value their rights. They value high standards. They value high environmental standards, and all the other things that many Members care about, because they know their constituents care about them. On these things, including particularly on employment law, the UK has led the pack, so I would say to him: have a little faith. It is his job not to trust the Government, but he should trust the people.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

The Minister will understand that many of Scotland’s fishermen voted to leave the European Union to retake control of our fishing waters, so can she assure me that the UK will not compromise on our fishing rights and that the EU will need to accept that the UK will become an independent coastal nation by the end of 2020?

[Penny Mordaunt]

I can give my hon. Friend that reassurance. We want a separate fisheries framework that reflects our rights in international law. Our requests are simple, reasonable and straightforward. We want the EU to recognise those rights, recognise us as a sovereign equal, and come to the negotiating table with renewed vigour to ensure that we can get that agreement and a deal.

[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 now suspending the House for three minutes.

Covid-19

Penny Mordaunt Excerpts

Monday 11th May 2020 Commons Chamber

[The Paymaster General (Penny Mordaunt)]

I beg to move,

That this House has considered Covid-19.

We gather here today in the midst of a very great darkness that has descended upon our nation, and not just our nation—all nations. It has been by far the biggest challenge we have faced in a generation. We knew it was coming, but not when and not what its clinical characteristics would be. We trained to face it. How we have all responded to it has been a defining moment for us as individuals and as a nation. We have all been involved. We had no choice about dealing with it, but we had a choice about how we did so.

In the past few weeks, the darkness that has engulfed us all has been emotional, economic and extensive, but it has been illuminated by a million points of light: the response from the British people has been immense. People in all our communities have performed selfless, heroic acts—stoic, disciplined, kind—from now Colonel Tom to our health and care workers, our scientific and tech community, businesses, those who came out of retirement, critical workers, volunteers and the public who through their resolve have reduced the rate of infection and sent this virus into decline.

People have faced this crisis with personal courage and often good cheer, and I pay tribute to their resilience with pride. This virus called forth the question of who we are, and that question was answered—for families, for parents, for children, for communities, for the nation. It illuminated our values and our strengths: we chose to prioritise lives; we chose to support businesses and jobs; so many stepped up and volunteered; we pull together in times of crisis; we have seen the validation of a devolved but national health service that is free at the point of use and not linked to employment—our NHS. It has shown what we believe in and how much we value the actions of so many who are taking on a greater share of the risk to protect us all and defeat the virus, including, I am very proud to say, some Members of this House of Commons working in health or as first responders. When united in a national effort, the British people are a powerful force.

The virus has also shown a fragility: the structural and funding complexity of social care; the invisibility of some of those in care settings and mental health, of those with learning or behavioural disabilities, as well as older people; the lack of resilience in supplies of equipment when faced with a crisis of global proportions; the obstacles to providing support to some of our most entrepreneurial people; and the challenges of getting the world working together when nations are also focused at home.

This debate offers us parliamentarians the opportunity not just to scrutinise what has happened and the next steps in our response, but to discuss how we can continue to improve our resilience and adapt to what will be fundamental changes in the way we live our lives. This is, without doubt, an inflection point for our country and for the world, and we all need to rise to those challenges. We all have a role to play in finding solutions and answers.

This debate affords us the opportunity to remember and mourn all those who have lost their lives to this disease, and to think of those who are grieving without comfort—in some cases, without having said goodbye. The reported death toll stands at 31,855 souls. Our thoughts, too, must be with those who have survived covid but whose health has been impaired as a consequence, and to acknowledge those who have had to put their treatment and therapy for other conditions on hold because the NHS would not have been able to cope unless they did so. The full cost of that sacrifice has yet to be counted.

In particular, it is right that we acknowledge all those working in health and care who have succumbed to the disease. In full knowledge of the risks, they chose to work on the frontline to save lives, give comfort to others and provide care to those in their charge. The metaphor of this pandemic as a war against coronavirus has been used, and the courage and duty demonstrated by all those working with those who are infected is the same as going into battle. Many will have seen their friends fall ill. Some will have seen their colleagues die. And they will have headed back into the danger zone, day after day. I know that there will be disagreements during the course of this debate, but I also know that every Member of this House will want to express their gratitude and humility in the face of such service, and all will agree that, despite the difficulties, we must ensure that all frontline workers in this crisis have the equipment that they need to keep them safe. We are all aware of the challenges and of the efforts being made, but that is irrelevant. We must, and we will, do what is necessary.

I also want to thank the volunteers who have stood up to help care and health services. This include individuals who are facing the prospect of losing their job, financial hardship or worries about relatives. Instead of devoting themselves to their own needs or those of their families, they have gone into care homes, medical wards and Nightingale hospitals to serve their communities—often having to separate from their own loved ones to do so. Over 3 million additional volunteers stepped up.

We should also thank the critical workers who have carried on so that we could all be fed, protected and provided for: those in the supermarket and the store; the police and fire services; post office workers; public transport workers; cleaners; prison officers; refuse collectors; pharmacists; teachers; nursery workers; public servants, especially those in the resilience forums; and, of course, our armed forces, who have delivered aid to those being shielded, brought testing to communities, and provided planning expertise at every level of this response and in every local resilience forum in the land—all while carrying out their other duties to protect the nation. They have taken risks for all our sakes.

In the past few months we have seen so many people and organisations rally: from the businesses that adapted so swiftly to meet the needs of the nation, expanding services, altering their production lines and generously donating equipment and expertise; to the others who managed to keep their businesses going throughout this ordeal in order that they could provide for our families and support our public services. We must remember that without the wealth they generate, we cannot fund the services that we all rely on.

We have been right to provide an unprecedented level of support to retain jobs and help cash flow, with 25,000 loans, half a million firms furloughing workers, and 600,000 grants. We as a Government and all of us as citizens must do all that we can to get Britain back to work and start the recovery, as my right hon. Friend the Prime Minister has set out.

We have seen charities, faced with their fundraising plans in tatters, lead the local response and, of course, the public have followed the requests of the chief medical officer by staying at home. It has been tough, especially for those in cramped housing with no gardens, but they have done it, and thanks to them R is now below 1. In the next phase of the response, we must all continue to demonstrate that resolve.

In all the steps and all the issues that colleagues will raise in this debate, we will be more successful if we tackle them together, across party lines and across the Administrations of the United Kingdom, as we continue to do, with international co-operation, and across all sectors—public, private and the third sector—no longer deterred by dogma, just pulling together and focusing on what needs to be done.

In that spirit, opening this debate affords me an opportunity to thank all Members of this House who joined the Cabinet Office daily calls at the start of the pandemic. They were cross-party and they were constructive. We helped each other to help our constituents, shared our ideas, cut down workloads and supported each other. The information gathered on personal protective equipment, care homes, businesses and operational matters was incredibly helpful to every Department.

We should continue to work together not only to tackle the challenges but to seize the opportunities to tackle problems that were previously almost impossible. For example, since the start of this crisis, 90% of rough sleepers are now in accommodation. They are safe and secure. There will never be a better opportunity to wrap the services that those individuals need around them while we deal with the crisis, so we must.

These are dark times, but they are also illuminating times. We have reminded ourselves, as a country, what we can do when we are united in a mission. Millions of us chose not to curse the dark but to light a candle. The British people have given us a beacon of hope in the days ahead.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I now call Rachel Reeves, who is asked to speak for no more than 10 minutes.