EU Exit: End of Transition Period

Rachel Reeves Excerpts

Wednesday 23rd September 2020 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

I thank the right hon. Gentleman for advance sight of his statement.

The news today that there could soon be tailbacks of 7,000 lorries in Kent is quite extraordinary. I know that the Government have said that they are committed to building new infrastructure, but I did not realise it meant concreting over the garden of England. Today’s warnings are based on a reasonable worst-case scenario, but given that we have a reasonable worst-case Government, we have to assume that these scenarios could play out quite soon.

In their letter to the road haulage industry, the Government say that business should get ready, but what about the Government? There is a long list of promises for the future in the letter: the UK Government will be contacting haulage companies; they will be running targeted advertising; they will be publishing an updated haulier handbook; and they will launch advice stands at UK service stations. Why are these essential prerequisites for a smooth transition not already here? It is all well and good to tell businesses to act now, but without the systems in place, frankly, it is like telling me to bake a cake but forgetting to turn the oven on.

Sectors from farming to haulage and car manufacturing are crying out for the Government to get this right. These sectors are the backbone of British industry, and they are vital to our everyday economy. If we do not listen to these experts, we will lose exports. I met the Road Haulage Association last week. It is tearing its hair out. It has since met Ministers and described that meeting as “a washout”. Frankly, this is not good enough.

In the summer, I visited the proposed lorry park in Ashford, Kent, where construction had just begun. It was with some dismay that I later read that workmen had encountered a Saxon brick wall in their excavations. I hope this is not a metaphor, but can the Minister assure the House that progress there is on track? Another site apparently earmarked is in Ebbsfleet. It is currently a covid testing centre. With the test, trace and isolate system on its knees, this would be farcical if it were not so serious. Is it really too much to ask for a little bit of joined-up government from Ministers?

On 4 September, the Government granted themselves the power to build additional lorry parks in 29 local authority areas without consulting residents. Can the Minister tell us exactly where those facilities will be? That is the least that local people deserve. Will he also tell the House how many customs agents and intermediaries are trained and in place? This is so important for the system to work.

In the summer, the Government admitted that there would be £7 billion-worth of additional bureaucracy for UK businesses. It is the last thing they need right now, so is that still the most accurate assessment of the costs for businesses?

It has been estimated that 10 new IT systems will be needed to make our new trading relationship with the European Union work. Can the Minister list those IT systems and guarantee that they will be in place and fully operational on 1 January? Given that we were promised a contact tracing app, first in May, then in June and then in July, and it is now September, what assurance can he give that this time the Government will deliver that vital technology and that it will be working and delivered on time? Frankly, the Government’s track record does not inspire confidence.

We have just 100 days until the end of the transition period. Labour’s message to both sides in this negotiation is clear: stop the posturing, and start negotiating. It is in our national interest—it is in all our interests—that the Government get a deal, and get it soon, so that businesses have time to prepare. The Conservatives have had three Prime Ministers and four years since the referendum in 2016. We have seen serial incompetence and countless U-turns. I say to Ministers: get a grip on preparations, and get a grip now. The transition period comes to an end on 31 December. Will the Minister guarantee, not just to this House but to the whole country, that we will be ready?

[Michael Gove]

I am grateful to the hon. Lady for her questions. She makes the point that there have been three Prime Ministers and four years since the referendum and alleges that there have been some U-turns. This Government have been consistent in our determination to honour that referendum result. If we are thinking of U-turns, I think of the Labour party, which at different times has been in favour of a referendum or of extending the transition period, against our exit from the EU, and it now seems to be resolutely in favour of that exit. I am grateful that the Labour party has now taken the decision to recognise the democratic verdict of 2016, but when reflecting on U-turns, flip-flops and changes of position, we should all exercise appropriate humility.

The hon. Lady asks what is required in order to prepare. We will, of course, be stepping up our intensive co-operation with business, but when the chief executive of the port of Dover appeared in front of the Committee on the Future Relationship with the European Union in June this year, he made it clear that at that point it was possible for any business to know exactly what was required, from the acquisition of an economic operators registration and identification number, to securing a customs intermediary or having in-house capacity. Everyone knew at that stage what would be required on our departure from the customs union and the single market. That information is there, and we want to ensure that more and more businesses, including those who think the transition period will be extended, realise that, as the hon. Lady rightly pointed out, there is no turning back from that date, and we all need to be ready by 1 January.

The hon. Lady asks about our determination to secure a deal. We are determined to do everything we can to secure a deal, but one purpose of this statement is to underline that, whether or not we secure a deal, because we are leaving the single market and the customs union, there are some activities that all businesses must engage in. I hope that Members across the House, whatever their views of the merits of our departure from the European Union, will work with the Government to ensure that businesses are directed towards the information they need and given the support they deserve.

The hon. Lady mentions to her visit to Ashford. I am grateful to her and to others for drawing attention to the need for additional infrastructure at or near the border, as well as Government investment to ensure that we are ready. The Ashford motorway site will provide transit facilities for those who are exporting, and from July 2021, it will also provide facilities for those who are importing. I am grateful to everyone who has played a part in ensuring that that site will be ready on time.

The hon. Lady refers to the Ebbsfleet site, which was acquired by HMRC some time ago, in preparation for a potential no-deal exit before the withdrawal agreement was secured. It was temporarily allowed to become a testing site, but testing facilities have now moved to another location in Kent. Ebbsfleet, along with North Weald, is available as a transit site. It is important that this Government, like all Governments, ensure that we provide not only for the public health of our people, but also for the free flow of commerce.

The hon. Lady refers to customs agents and intermediaries. The £80 million provided has not yet been fully drawn down, and I hope that our exchanges today will encourage businesses and others to ensure they have access to that money. She asks about IT systems, and systems such as the import of products, animals, food and feed system have been in place for some time now. That new IT system will replace the EU trade control and expert system—TRACES—to which we will, of course, no longer have access. Other systems such as the smart freight system or the goods vehicle movement service are in operation and being tested with business now.

As I said earlier, it is vital to recognise that business needs our support to navigate, meet and master these challenges and to take advantage of these opportunities. The Government stand ready to work with everyone across the House to ensure that business is ready, and at what is undoubtedly a difficult time for the economic life of our country, we will do what we can to help.