European Affairs

Ross Thomson Excerpts

Wednesday 14th March 2018 Commons Chamber

[Stephen Gethins]

As usual, the hon. Lady makes an excellent and powerful point, and Government Members would do well to listen to her—in fact, the hon. Members beside her might do well to do so too sometimes. I will come on to the finances that she rightly raises, but before I do I want to talk about the broader impact on public services in areas such as access to the single market, which is so important in decreasing red tape. We often hear about red tape, but access to the single market has reduced red tape, not least for our SMEs. I have mentioned seasonal workers, but we must also think about the impact on services and on our doctors, nurses and dentists who enjoy freedom of movement and come from throughout the European Union. It can be difficult to get a dentist and my hon. Friend the Member for Glenrothes (Peter Grant) often mentions the practice in his constituency that is made up of several EU nationals.

The single market makes us more competitive. I just mentioned the benefits of Horizon 2020, and the European Medicines Agency is also important—it is based in London, but it is due to be taken away, taking jobs with it.

Another issue is cash for public services, as the hon. Lady just mentioned. The UK Government talk about finding common ground between themselves and the Scottish Government. There is one area of common ground between them—the Minister is right to look up at that point. They agree in their analysis that leaving the EU will be devastating for the economies of both Scotland and the United Kingdom. The Scottish Government’s figures—we were told that they were not right until the UK Government’s figures suddenly came out and agreed with them—showed that the hit on our GDP will be devastating in every single scenario set out. Every 1% reduction in GDP could hit tax by £8 billion, but that does not even start to address the amount of money that we will have to shell out just to leave the European Union, reported to be £40 billion. The Chancellor is preparing to leave with initial costs—initial—of £3 billion. The Financial Times estimates that Brexit has already cost the UK economy £18 billion, or about £350 million a week. I am not sure where we have heard that figure before.

If we have lower GDP and less money from the tax take, we will have less money to spend on public services—that is a basic fact. In Scotland, the Scottish Government have made changes in tax so that the majority are no worse off or better off, but that will raise an additional £164 million. That is welcome, but it is only a drop in the ocean of the money that we will need to try to save our public services from the hits that will come their way. If anyone could tell me how they will plug the gap in public services that will be caused, I would be delighted to hear from them. Would anybody like to make an intervention? I did not think so. Nobody has a clue—

[Ross Thomson (Aberdeen South) (Con)]

The whole premise of what the hon. Gentleman is saying is based on figures that do not take into account at all of what the Prime Minister has set out to achieve, which is a special and deep partnership with the European Union. The figures that he quotes are the same figures that Scottish National party Members campaigned on during the referendum, when they predicted that there would be a recession and that the economy would fall off a cliff. They were false prophets then and they are false prophets now.

[Stephen Gethins]

I salute the hon. Gentleman’s courage in bringing that up, but I am actually using his own Government’s figures.

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[Ross Thomson (Aberdeen South) (Con)]

As someone who actually represents, I hope, the young people of the next generation, I do not share the pessimism of the hon. Member for Streatham (Chuka Umunna), because the great Brexit prize will be regaining our ability to strike new free trade deals across the world. Not only will Britain rejoin the rest of the world, but we will have the opportunity to lead the rest of the world as a global free-trading nation, championing trade liberalisation and taking on the voices of protectionism. Let me be clear that we are not leaving Europe or turning our backs on our European neighbours and partners. Rather, the Prime Minister has been explicit that the Government are seeking a deep and comprehensive trade deal with the EU that covers goods and services.

By leaving the customs union, the UK will regain its ability to set its own independent trade policy. Our trade with the EU is in deficit and declining. As the Minister stated in his opening remarks, it was 56% in 2006 and is now down to 43%. However, our trade with the rest of the world is in surplus and rising. We should not play down the importance of Europe as a trading market and partner, but we must orient ourselves towards the thriving economies in the rest of the world, such as in south and east Asia, and their growing demand for goods and services. Fifty-seven per cent. of Britain’s exports are now to outside the EU compared with only 46% in 2006. Furthermore, the International Monetary Fund estimates that 90% of global economic growth in the next 10 to 15 years will originate from outside the EU.

International demands for British goods is growing, and Aberdeen, which I represent, is well placed to take advantage of that as 90% of the city’s manufacturing, which is mainly in oil and gas and environmental engineering, gets exported. The oil and gas industry is truly global, and anchored right here in the UK. Current industry exports accounted for 43% of the UK supply chain turnover in 2017, up from 41% in 2016. Oil & Gas UK’s “Vision 2035” has the ambitious aim of doubling the supply chain share of the global market from 3.7% to 7.4% in 2035.

The Balmoral Group, based in my constituency, provides an example. It was established back in 1980 and specialises in sub-sea buoyancy, renewable energy and engineering solutions. It employs about 500 people in Aberdeen. It is highly dependent on the export market: it is currently focusing on west Africa, South America and the gulf of Mexico. Its representatives have been clear with me that their only opportunity for growth is in the export market. They have already been working closely with the Department for International Trade on trying to exploit those opportunities.

Thanks to the investment from the UK Government, the Oil & Gas Technology Centre in my constituency was set up. It is working with the oil industry in developing solutions, new technology and innovation to maximise the full potential of the UK North sea—from asset integrity to maximising recovery from small pools, from drilling to decommissioning. The technology, developed in my constituency, is exportable and the opportunities are massive.

As my hon. Friend the Member for Banff and Buchan (David Duguid) highlighted, the north-east is home to a thriving food and drink industry. It is also known for its whisky exports. The story of whisky is well known; perhaps a less told story is that about our other domestic exports. Here are just a few examples. In fishing, there are companies such as Macduff Shellfish, Denholm Seafoods and Lunar Freezing, which export to countries such as Nigeria, China, Vietnam, Uruguay and Ukraine.

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

During the EU referendum campaign, the hon. Gentleman was pictured outside the Scottish Parliament with a placard saying, “Vote leave to bring control of our fishing back to the democratically elected Scottish Parliament”. Will he be recirculating that image?

[Ross Thomson]

I am grateful to the hon. Gentleman for raising that. As is so clear, we are leaving the European Union and taking back control of the more than 200 nautical miles of our waters, giving us the opportunity to rejuvenate our coastal communities. We are supporting Scottish fishermen. The party that wants to sell them down the river back to Brussels, handing all the powers right back and keeping people trapped within the confines of the common fisheries policy, is every single Member from the SNP. I will take no lectures from those on the SNP Benches about the benefits of Brexit for fishermen.

[Stephen Gethins]

rose—

[Ross Thomson]

I would like to make some progress, given that I have only three minutes left.

Companies in Aberdeen such as Saltire Seed and Alan Twatt are exporting seed potatoes to Thailand, Egypt, Israel, Saudi Arabia and Brazil. Those are just some examples of what is happening in my region.

[Stephen Gethins]

The hon. Gentleman is talking about the economy. Does he believe the figures that the UK Government have produced about the hit to GDP from leaving the EU?

[Ross Thomson]

No. The figures that have been produced are not based on what the Prime Minister has said herself she wants to achieve: a deep and special relationship with Europe. None of the figures is based on that assumption.

There are huge opportunities for Aberdeen and the wider north-east to use our competitive advantage to seize the benefits of Brexit. We must set our sights on the future—a new global future. It would not be in our or the EU’s interests for there to be any unnecessary restrictions on trade. I am confident that the Prime Minister will deliver a new, bespoke partnership that will support our mutual interests. The UK is the world’s fifth largest economy, the fifth largest exporter and the second greatest soft power. Our worldwide presence is reinforced by our global brands, our creative industries and the reputation of our universities. Britain is truly global and we must be ambitious in order to maximise the golden Brexit trade opportunities that lie ahead of us.

--- Later in debate ---

[Stewart Hosie (Dundee East) (SNP)]

My hon. Friend the Member for North East Fife (Stephen Gethins) made a very considered speech in which he laid out in some detail the damage that Brexit will do. I do not intend to go over that ground. Rather, I want to talk specifically about the Scottish Government’s continuity Bill. It is important that the House understands precisely what the Scottish Government are doing in relation to Brexit and why they are doing it.

Before I do so, I want to comment on two things that were said earlier. First, the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont), who is no longer in his place, spoke about the continuity Bill in Scotland being subject to many amendments. Indeed it is—147 or so wrecking amendments from the Tories. I simply say gently to the Tories from Scotland that it would have been better if they had signed up to amendments to the UK’s EU withdrawal Bill as a bloc rather than tabling all those wrecking amendments to the Scottish legislation.

Secondly, the hon. Member for Aberdeen South (Ross Thomson) spoke about trade liberalisation—and I agree with him. At the moment, however, an American company, the Harley-Davidson motorcycle company, is telling us that Donald Trump’s tariff regime will add $30 million to its cost base. If his Administration are prepared to damage all-American businesses, it is naive in the extreme to assume that some kind of good deal will be cut for the UK.

[Ross Thomson]

I am glad that the hon. Gentleman agrees about trade liberalisation. Does he not agree, therefore, that as the EU is the most protectionist organisation there is, with high tariffs on imports coming into it, we will be better off out of it, so that we can help lead the world in liberalising trade?