EU Exit: Negotiations and the Joint Committee

Rachel Reeves Excerpts

Monday 19th October 2020 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

I thank the Minister for advance sight of his statement this afternoon.

At the last general election, the Prime Minister said that he had an oven-ready deal ready to go. The withdrawal agreement was the starter course, but we are still waiting for the main meal: a trade agreement with the European Union. At the weekend, the right hon. Gentleman was reminded of some of his previous remarks in 2016 when he assured the country that the one thing that will not change is our ability to trade freely with Europe. Even at this late stage, Labour expects the Government to reach an agreement with the European Union that honours that commitment. It is a question of competence and it is a question of trust; it is what this Government promised the British people.

Of course we were supposed to have a deal by now. This is the third deadline that the Prime Minister has set himself, and it is the third deadline that the Prime Minister has missed. Initially, he said that a deal with the EU would be sorted by July. Then he said by September, and then he said by last week. Will the right hon. Gentleman explain to the House why the Government find it so hard to meet their own deadlines and so hard to achieve their own promises?

Yesterday, when the Minister toured the television studios, he was asked what the chances were now of securing a deal, and he said it was less than two thirds. Can he tell businesses and this House the current probability, given that he has just said that events have, in effect, ended the trade negotiations? Over the past three days, we have heard more posturing than solutions, more excuses and explanations. It is time for the Government to take responsibility.

Of course everyone needs to prepare as best they can, but it is a bit rich for the Government to lecture businesses on getting ready when the Government cannot even tell them what they are getting ready for. Let us be clear: if the talks have run out of road, many industries will face prohibitive tariffs—from 10% for exporting cars to at least 40% for exporting lamb—to Britain’s biggest market in just 10 weeks’ time. I ask again: is that what the Government want businesses to get ready for, and is it even possible for those businesses to do business on those terms?

The Minister will recall that I raised the concerns of the car manufacturing industry on 1 October at Cabinet Office questions and the possibility of tariffs, and also on rules of origin. He agreed to meet the automotive industry and trade unions. The Society of Motor Manufacturers and Traders and Unite followed up with a joint letter on the same day—1 October. However, I am now informed that, 18 days later, that letter has not been replied to and that meeting has not happened. At what point did the British Government give up on British industry, and when will the Minister be meeting those businesses? It is all well and good to say prepare, but he cannot even be bothered to get round a table with them. I ask again: what are they supposed to be preparing for and what support are the Government giving them?

In his statement today, the Minister thanked the road haulage industry for its efforts, but you will also remember, Mr Speaker, that, at Cabinet Office questions, he said that the road haulage industry had been far from constructive, so I welcome the thanks that he gave them today. Earlier this month, I was with a haulage firm in Hull with my hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy). It was a fantastic business, established more than 100 years ago, yet it does not know how many of its fleet of lorries will be able to operate in the EU come 1 January. How are they supposed to prepare for that?

Ministers have blithely referred to leaving with no trade deal as trading on “Australian terms”. This morning, the Business Secretary was pressed on the difference between an Australian deal and leaving with no deal, and he admitted that it was “semantics”—semantics! They can call it no deal. They can call it an Australia-style deal. They can call it a Narnia deal, as far as I am concerned, but let us be honest about what that means and how damaging it is for this country. [Interruption.] Someone says from a sedentary position that it is not damaging—10% tariffs on British cars being exported to the European Union is damage; 40% tariffs on lamb being exported to the European Union is damage. If any Member wants to stand up and tell their constituents, British industry and British farming that that is not damaging, they can be my guest, but it is not the truth.

The Prime Minister promised that the UK would “prosper mightily” without a trade deal with the EU. Given that confidence, will the Government publish their full economic impact assessment of the implications if no trade deal is achieved, broken down by industry and by the regions and nations of our United Kingdom? That may at least help us to understand what we are supposed to be planning for.

While the Government lecture businesses about being match-fit, their own preparations are badly off pace. In late July, the Government announced £50 million of funding for customs intermediaries. Could the Minister update the House on how much of that fund businesses have drawn down and give us the latest figures for the number of customs agents trained up to be ready for 1 January? The Government have given authorisation for a number of lorry parks, so how many of these “inland border facilities”, as the Minister likes to call them, have had work started on them, and how many are now completed? Can he list how many of the IT systems needed are on track and whether the crucial goods vehicle movement system has been tested with all haulage businesses? He mentioned business preparedness. What is happening in terms of security and data sharing?

This Government must deliver a deal that provides guarantees and safeguards on workers’ rights, environmental standards and animal welfare, protects jobs and does nothing to jeopardise the Good Friday agreement. That was all promised last year. Time is short, so my message to the Government is blunt: stop posturing, start negotiating and deliver the deal that you promised to the British people.