Oral Answers to Questions Debate
Full Debate: Read Full DebateRobin Walker
Main Page: Robin Walker (Conservative - Worcester)Department Debates - View all Robin Walker's debates with the Department for Exiting the European Union
(7 years, 7 months ago)
Commons ChamberI welcome the fact that tourism is at its highest levels ever, with foreign visitors contributing £22.4 billion to our economy and the industry as a whole supporting some 1.6 million jobs. The start of this year was the strongest on record, and VisitBritain research shows that since the referendum more Europeans say they are more likely, rather than less likely, to visit the UK.
Southend, of course, is a wonderful tourist destination, with the longest pleasure pier in the world. London Southend airport flies to 26 international destinations. The airport does not do Brussels, however, but it does do Europe. Will the Minister, on his re-election, agree to come to Southend to discuss how a new, emboldened Britain can do the European Union and the country a good job globally with trade with all nation states?
My hon. Friend raises an important point both about regional aviation and the beautiful part of the world he represents. That part of the world is known for its common sense, which I am sure will be reflected on 8 June. We have been very clear that we are working to ensure the best possible liberal access to European aviation markets and are seeking to replicate third-country arrangements with the likes of the US and Canada. We are committed to working with the sector to get the best deal for the UK, and I will be delighted to meet him to discuss how we can boost tourism in Southend.
Tourism employs 12,000 people in Norwich, where the value of the sector has grown 87% over the last 10 years—my fine city is a top 10 destination. Tourism is a quarter of the city’s employment. Will my hon. Friend reassure me and Norwich employers, first, that the position of valued members of staff who may be citizens of other European countries will be a personal priority and, secondly, that in seeking a strong future, especially for our young people, the Government will address the skills that British workers could develop to offer Norwich’s growing tourism industry?
My hon. Friend is right to champion tourism in Norwich. As the Prime Minister has said, it is right that we ensure that tourism and hospitality businesses can access the skills they need from the EU and that we ensure that young people in the UK have the right skills to work in this sector. I know she will continue to support tourism through her Norwich jobs initiative and as vice-chair of the all-party parliamentary group on youth employment, on which I enjoyed working with her.
Tourism requires airports to be open to people, and the Association of British Travel Agents tells us that getting an early deal is of the utmost priority. The chief executive of Stansted airport recently told MPs from our region that no deal means no flights. What assessment has been made of the cost to the British tourism industry of no deal?
The hon. Gentleman should be more optimistic. We have the largest aviation network in Europe and the third largest in the world, handling more than 250 million passengers and 2.3 million tonnes of cargo last year. We are working closely with the industry and are confident that securing a deal on aviation will be in the interests of both the UK and the EU.
Many businesses in rural areas such as Angus have diversified in recent years into short-term holiday lets, many of which are taken by citizens of the European Union who come across at short notice. There are serious concerns that, when we leave the EU, there could be a downturn. Will the Minister give us an assurance that, in any deal with the EU, there will remain the freedom for people to come for short-term holidays and that there will be no visa requirements requiring them to get documents before coming to the UK?
I recognise the importance of that issue. I discussed some of those issues directly with the Scottish hospitality sector during my last visit to Scotland. Of course we want to ensure that visitors from Europe can continue to come to the UK and spend their money here, and we want to ensure that we have the best access for tourists in both directions. That will be a subject for the negotiations to come.
Southampton airport in my Eastleigh constituency provides regular flights to Amsterdam and therefore more than 55 African nations, driving, among other things, bilateral trade. Will the Minister outline what his Department is doing to promote similar initiatives to bring benefits to the UK economy ready for leaving the EU?
My hon. Friend is absolutely right to champion the aviation routes from her constituency, and of course the UK, as a global nation, will continue to want to trade with both Europe and the wider world. Having strong aviation links and liberal access for aviation will be an important part of that.
Tourism in Northern Ireland currently generates £764 million of revenue and attracts 4.5 million visitors. The aim is to double that by 2020 using major events such as the world police and fire games, the UK city of culture and the Giro d’Italia. To achieve that goal, will the Minister outline his strategy for incorporating the UK-wide tourism industry? What support is being offered in the interim?
We have been working closely with the Department for Culture, Media and Sport and our colleagues in the territorial Departments to ensure that we have the best approach to selling the UK brand around the world. I recognise that Northern Ireland has a fantastic tourism offer, and I was delighted to meet representatives of the Northern Irish hospitality industry during my visit last autumn.
As you know, Mr Speaker, some of the finest parts of the Peak District national park are in Staffordshire, alongside Shugborough, Doxey marshes, Cannock Chase and many other beautiful places. One of the skills that our young people need so that we can benefit from the tourism industry lies in the teaching of languages. What is my hon. Friend doing, together with the Department for Education, to ensure that that is a priority?
My hon. Friend, who is a great champion for his local area, is right to raise this issue, and we have discussed with the tourism and hospitality industry the importance of attracting people with language skills. One aspect we are looking at is how, through negotiations, we might be able to continue engagement with the Erasmus programme in the future, but there are many other ways in which we need to boost our skills domestically, and boosting languages will be very important to a global Britain.
Tourism is the main catalyst for economic development in South Down, which will have a land border with the EU. How will that burgeoning cross-border tourism trade be nurtured and financially protected in the face of the challenges from Brexit and given that the Republic of Ireland’s VAT rate on tourism is 9% whereas in my constituency it is 20%?
One of our highest priorities in these negotiations and in our whole strategy for the UK’s exit from the EU is to secure the soft border that exists, to make sure that there is no return to the hard borders of the past and that the economic progress we see as a result of north-south tourism within the island of Ireland continues, and to ensure that those bodies can be in place. I assure the hon. Lady that this is an issue on which we will continue to engage, and we will continue to promote the excellent tourism offer in Northern Ireland.
The Minister is obviously aware that a record 37.6 million overseas visitors came to the UK in the past year. Is he aware that 70% of those came from the EU? Does he agree that those figures show that although the UK may be leaving the EU, we are very much welcoming and open to visitors from the EU and the rest of the world?
I wholly agree with what my hon. Friend and neighbour says. He is a great champion for the tourism industry, and may I thank him once again for the work he has done to make sure that our Department gets to hear directly from the tourism and hospitality industry across the UK?
The Northern Ireland Executive, including Sinn Féin Ministers, have participated in the Joint Ministerial Committee processes, but to discuss our preparations for exit and ensure that we can deliver an approach that works for the whole and each part of the UK we want to see the political situation in Northern Ireland resolved and Assembly government continuing. That is what the Secretary of State for Northern Ireland is working hard to achieve.
I thank the Minister for that answer and for his interest in Northern Ireland; he has come over to visit us—including my constituency, which has a long and significant land border with the Republic of Ireland—on a number of occasions. How can he and the Department ensure that there is further good co-operation as Brexit negotiations continue, particularly in the absence of a Northern Ireland Executive?
I thank the hon. Gentleman for his question. The Secretary of State for Northern Ireland and the Prime Minister are fully committed to ensuring that as we establish our negotiating position, the unique interests of Northern Ireland are protected and advanced. I touched earlier on the issue of the common travel area. They have a clear understanding of the range of views from across Northern Ireland, and we will continue to champion the interests of Northern Ireland in the coming months. We remain committed to continuing to work with all parties and a new Executive in the months ahead, as part of our effort to ensure that we deliver a good deal for the whole of the UK, including Northern Ireland.
May I, too, thank the Minister for all his hard work on behalf of Northern Ireland and Scotland? In recent weeks many discussions have taken place in Northern Ireland about electoral pacts and the bid to block Brexit, as if the decision were reversible. Does he agree that the efforts of all parties would be much better if they were put together in seeking to achieve the best possible outcome for Brexit and for Northern Ireland?
Absolutely. One great strength of our electoral system is that it allows constituencies and their voters to choose the best candidate to represent them, and not stitch-ups between politicians and parties. Like the hon. Gentleman, I campaigned on the remain side during the referendum but am now working as hard as I can to make the decision of the UK a success for the whole of the United Kingdom. I think voters should reflect on whether their representatives are working constructively to get the best outcome for their constituencies and for the United Kingdom, rather than on deals behind closed doors.
Will my hon. Friend assure the House that he will do his utmost to ensure that the UK withdrawing from the EU does not disrupt peace on the island of Ireland?
Absolutely. My hon. Friend is right to raise that point. We must work continuously to ensure that we protect the peace, the agreements that underpin it and the close and unique relationship between the UK and the Republic of Ireland, which is in a better state than it has been in decades.
We want to ensure that UK companies have the maximum freedom to trade with and operate in European markets, and to let European businesses do the same in the UK. Financial services is one area for which a bold and ambitious trade agreement will be sought, and we will continue to talk to the industry as we prepare for negotiations. The Government have made it clear that we believe implementation periods will be important to minimise disruption, and the industry has welcomed that. The great repeal Bill will prepare the ground for the UK’s exit so that on the day we leave there is as little disruption and as much certainty and continuity as possible. A strong, stable Conservative Government will be best placed to deliver that.
I am grateful for the confirmation that the Government intend to include financial services in the free trade agreement. Will the Minister confirm that we will negotiate to ensure maximum access for licensed firms on the basis of mutual recognition and an equivalence regime?
My hon. Friend absolutely right. As a priority, we are pursuing a bold and ambitious trade agreement with the European Union. That agreement should be of greater scope and ambition than any seen before it, so that it covers sectors that are crucial to our linked economies, such as financial services. We know that our European neighbours have a stake in this, too, because they do not want European firms to lose access to the City of London’s financial services. Financial stability is important, not only for the UK but for the whole of Europe, which is one reason why we want to reach a deal with the EU on financial services. We will seek to establish strong co-operative oversight arrangements with the EU and will continue to support and implement international standards to safely serve the UK, European and global economy.
Will the Minister stop reading his brief and speak from the heart? I have two sets of workers in Huddersfield. Many people work in financial services for Lloyds, and their jobs are in peril. I also have a large number of people who work in the national health service, and the Government are doing nothing to stop the cruel closure of the Huddersfield infirmary. Will the Minister do something about my financial sector workers and my health workers, with the EU catastrophe arriving soon?
My counsel would be to stick to the financial services industry.
I will follow your guidance, Mr Speaker.
I am delighted that the Government are standing up for every sector of our economy, including the financial services sector. The hon. Gentleman neatly points out that the financial services sector matters not only in the City of London but throughout the country, in constituencies such as his. We will fight for those jobs; unfortunately, every Labour Government in history has destroyed jobs.
Was my hon. Friend as impressed as I was by the new spirit of resolve and optimism witnessed yesterday among senior City figures at the Prosperity UK conference, at which the Secretary of State spoke so inspirationally?
I welcome the hon. Lady’s question and her focus on financial stability, because, as I said in my answer to my hon. Friend the Member for Wimbledon (Stephen Hammond), we absolutely recognise the importance of financial stability for the whole of Europe, including the UK, and of reaching a deal with our European counterparts. When I met the financial services industry in Scotland to talk about these matters, it was clear on the importance of financial stability, and it was very clear on the vast importance of the United Kingdom market for Scottish financial services.
What assessment has my hon. Friend made of the French Government’s warnings that the City should continue to be overseen by EU regulators?
We recognise the importance of regulatory oversight and mutual regulatory understanding as we move towards a comprehensive trade agreement with the European Union. One thing I have learned while doing this job is the huge respect in which UK regulators are held around the whole of Europe. I think we have some of the best financial regulators in the world.
What assessment has the Minister been able to make of the loss of the European Banking Authority and the impact that it might have on the financial services sector?
The future of European agencies is of course a subject for the negotiations to come, but I have no doubt that the UK will continue to be a global centre both for financial services and for leading the conversation about the regulation of financial services in the years to come.
Financial services are important to the economy in my constituency, and I welcome all my hon. Friend’s comments. Does he agree that it is in Europe’s interests that it should have a good deal here, as it will need access to the City of London? It is not the UK that has a banking crisis at the moment.
My hon. Friend is absolutely right for drawing attention both to the importance of financial services across the whole of the UK and to the fact that this is about the mutual interests of the UK and the EU. We want a deal that works for both, and access to the global leading financial markets in London will be as important for the other side in these negotiations as it is for us.
Last month, the Secretary of State confirmed to the Brexit Select Committee that exiting the European Union on World Trade Organisation terms would mean an end to passporting rights. Does the Minister agree that that would be catastrophic for our financial services sector and all those who work in it? If so, does he agree that no deal is not a viable option for the financial services sector?
As a priority, we are pursuing the most ambitious trade agreement that has ever been achieved with the European Union. Its scope and ambition should be greater than that of any agreement before it. The financial services market access—access for European firms to the UK and access for UK firms to Europe—is hugely important. That is what we are focused on achieving. Let me say to the hon. Gentleman that the position of his party that any deal is better than no deal is an absurdity when it comes to defending the national interests of this country. We need to get the right deal and to be able to say to the other side that if they do not offer us the right deal the UK will manage and take the right steps to protect itself. Of course our focus should be on getting the best deal.
The latest draft EU negotiating guidelines discussed on Monday suggest that financial services will be separated from any agreement on our future trade deal. If the Government cannot secure the safety and certainty of the financial services sector as part of any future agreement, what is their back-up plan?
I say gently to the hon. Gentleman that we do not write the guidelines, but we recognise that financial services will be part of a comprehensive deal. We have talked about a comprehensive free trade agreement, and it certainly has not been ruled out. What the EU has said is that it does not want to do separate sectoral deals—well, actually, nor do we. We want the most comprehensive trade agreement available and we think that that should include services, including financial services.
My Department is responsible for overseeing negotiations to leave the EU, and establishing the future relationship between a global Britain and the EU. We are, of course, working hand in hand with the Department for International Trade as we seek a deep and special partnership with the EU, and a bold and comprehensive trade agreement. The great repeal Bill will ensure a smooth and orderly exit from the EU. The laws and rules that we have now will, wherever practicable, continue to apply. The negotiations with the EU on the future relationship with Britain will be unlike any before, since both sides will start from the point of exact equivalence.
I thank the Minister for that comprehensive reply. When it comes to these key negotiations, is it his intention to recruit and embed outside talent and expertise from different sectors such as law, insurance and financial services to reinforce and bolster the Government’s own civil service teams? Has this outreach programme started?
I can assure my hon. Friend that we have been doing that outreach. Both my Department and the Department for International Trade have been bringing in expertise from across the civil service and from key areas of the private sector. The Under-Secretary of State for International Trade, my hon. Friend the Member for Wyre Forest (Mark Garnier), tells me that his Department has already recruited more than 200 trade advisers.
I have asked Ministers six times in the last three months how the Government plan to extract us from the European economic area. Not once have I got a straight answer. Throwing away our membership of the single market with no plan for a vote in Parliament is the single largest act of economic self-harm and democratic nihilism that I can imagine. In which year does the Minister believe we should come out of the European economic area, and will the so-called “great” repeal Bill include the repeal of the European Economic Area Act 1993?
The Government’s position has been very clear: we are a member of the European economic area as a consequence of our European Union membership, and we respect the position of European leaders that the four freedoms underpinning the European Union are inseparable. We are leaving the European Union, but we will seek to form a deep and comprehensive free trade agreement between the UK and the EU.
We are of one mind anyway—it does not really matter very much.
In the interests of good government, will the Minister instruct the permanent secretary to ensure that there are worthwhile discussions with a possible future Government on how we square the circle of staying in the single market but controlling immigration and of being inside the customs union, or outside it—I do not know what they are going to do—and trying to make new trade agreements? I am sure that the permanent secretary is a very clever man and that he can do all this work.
I congratulate my hon. Friend on his demonstration of the single transferable question and on the point he makes. The speech from the shadow Secretary of State has been widely picked up as setting out a confused position and one that is irresolvable, but I have no doubt that our permanent secretary is brilliant enough to be able to work his way through it.
The Government have provided assurances to EU students in the UK. I particularly welcome the announcement on 21 April, which confirmed that EU students applying to study at English universities in 2018-19 will remain eligible for undergraduate, masters, postgraduate and advanced learner financial support, even if the course concludes after the UK’s exit from the EU. The Government want to create an environment in which the UK remains a world leader in research and academia, and continues to be home to the best universities in the world.
I echo those sentiments about international students and commend my hon. Friend for all his work on that campaign. I am very proud to have the award-winning Huddersfield University in our town. I visited its institute of railway research a couple of weeks ago. Thanks to the local enterprise partnership business growth fund, it is working on innovative rail and tram projects around the world, including in Australia. Will the Minister and his team make sure that our world-class universities are at the heart of the opportunities that Brexit brings?
My hon. Friend is absolutely right to champion our world-class universities. Along with my hon. Friend the Minister for Universities, Science, Research and Innovation, I have been meeting regularly with his higher education and innovation council, which represents the views of the university sector to us. It is very clear that UK collaborative research, both with European partners and more widely in the world, is a huge opportunity through this process.
I thank my hon. Friend for his recent Westminster Hall debate, when this issue was discussed. As he pointed out, a Conservative Government successfully secured the rebate in 1984, which was then introduced in 1985. Compiling an aggregate figure in real terms is a complex matter. The Government have not published such a figure, but I know that he has and estimated it to be well over £100 billion. Details of the most recent UK rebates are published in the document entitled “European Union Finances”. The latest edition was published in February and reported that the UK received a rebate of £3.9 billion from the EU in 2016.
The massive £117 billion total rebate since Margaret Thatcher negotiated it in 1984 is testament to her resolution and determination in getting the best deal for Britain and refusing to take no for an answer. Will my hon. Friend agree to emulate her negotiating style and swing the metaphorical handbag until we get the deal Britain needs?
I assure my hon. Friend that, as befits the tough reputation of both our Secretary of State and the Prime Minister, we will be robust in defending the UK’s national interest throughout this negotiating process. As the Prime Minister set out in her Lancaster House speech on 17 January, the days of Britain making vast contributions to the European Union every year will end. A strong, stable Government led by our right hon. Friend the Member for Maidenhead (Mrs May) will be best placed to secure the best deal for the British taxpayer. Just as our first lady Prime Minister secured the rebate and value for the British taxpayer, I am sure our second will fight Britain’s corner throughout the negotiations.
Thousands of my constituents work in Edinburgh’s financial sector, which is the second largest in the UK. Following the EU 27’s announcement this week that they intend to exclude the financial services sector from any future trade deal with the UK after Brexit, will the Minister tell me what contingency planning he is carrying out to protect my constituents’ jobs?
I would say to the hon. and learned Lady, as I said in answer to an earlier question, that we seek a comprehensive trade deal, which absolutely would include financial services. However, as I said previously, we have engaged with the Edinburgh financial services sector, which has been clear with us that access to European Union markets is enormously important, but even more important is its access to the United Kingdom as a whole and Scotland’s relationship with the rest of the United Kingdom.
Does my right hon. Friend the Secretary of State agree that financial services in London, Edinburgh and throughout the country will be able to benefit from principles of equivalence and mutual recognition as an alternative to passporting, to ensure that that sector remains open and thriving, as stated recently by Mark Carney, the Governor of the Bank of England?
My hon. Friend is absolutely right. We will continue to work closely with the regulators to ensure that we have some of the best, and best regulated, financial services in the world.
The Secretary of State is a wise man, and we all read his wise article in The Irish Times on 5 September last year, in which he said that Ireland did not have to choose between Europe and the United Kingdom but could commit itself to expanded trade and commerce with both. Ireland is a big market for England, but it is not the biggest. Given the Secretary of State’s wise words in Ireland, what patience has he with those who suggest that England would want trade barriers with its largest market in Europe, and, with exports worth £50 billion, its second largest export market in the world—Scotland?
Taking into account the state of devolution, how will Northern Ireland be represented in the preparations for the United Kingdom to leave the EU, and, specifically, how will the Minister be able to meet the intricate needs of Northern Ireland at this time?
We continue to urge all parties to come together so that the devolved Assembly can be restored and we can engage with all parties and communities in Northern Ireland to ensure that their views are represented throughout this period. Earlier this week I attended the British Irish Chamber of Commerce, where there was huge interest in maintaining strong and positive relations between Northern Ireland and the Republic of Ireland and the UK.
How can any negotiator achieve any concession from any other negotiator if it is known in advance that he will not walk away if no concessions are given?
Energy is the largest sector in my constituency. We have wind farms, nuclear power and gas. We even have a tunnel under the bay to carry electrical cables from one end of Cumbria down into Lancashire. EDF Energy is the largest employer in the constituency, and it is continually reinvesting and has plans to expand. Do my right hon. and hon. Friends agree that this is a sign of things to come?
We have had a number of meetings with the energy industry, including EDF Energy. I would be delighted to meet my hon. Friend to discuss this further, because ensuring that we continue to have the energy to power the British economy in the years ahead will be a vital part of our considerations.
Can the Minister confirm that Britain’s withdrawal from the EU will not affect the border and immigration controls that people from the EU are currently subjected to as they enter the United Kingdom?