Customs and Borders

Ruth George Excerpts

Thursday 26th April 2018 Commons Chamber

[Yvette Cooper]

That is right. I think there is common agreement that we want no tariffs with the EU as part of this—I think that is shared across the House—but we also want to ensure that we do not end up with worse terms of trade with the rest of the world, rather than having the promises we have had that somehow things will magically be better.

[Ruth George (High Peak) (Lab)]

My right hon. Friend has mentioned that businesses are very concerned about this issue. I met over 20 businesses in my constituency that provide nearly 2,000 incredibly valuable jobs in my rural area. They are very concerned that they are already seeing European competitors coming in and taking contracts from under their noses. They cannot compete because they do not have the certainty that the UK will be in a customs union this time next year.

[Yvette Cooper]

That goes to the heart of the situation. It is partly about certainty and partly about knowing that businesses can smoothly trade in the way that they have been doing, and that we can build on that trade and not end up with new barriers in place. It is manufacturing where this matters most—manufacturing is still the spine of our economy and so much else depends on it. For so many of our towns, such as those in my constituency and across the north and midlands, manufacturing is still at the heart of the local economy, and it could be hugely jeopardised if we end up with a damaging change to the terms of trade.

--- Later in debate ---

[Kate Hoey]

There is an issue there, but it is something that we can solve through negotiation and discussion. We do not solve it by putting up an immediate barrier to countries that desperately want to benefit from trading with us but are currently prevented from doing so.

The public’s expectation when they voted to leave, or even when they voted to remain, was that if we chose to leave, we would regain our trade policy. I do not think that we can do that other than outside the regressive customs union.

I will move on to Northern Ireland in a moment, but let me respond to a number of points that have been made in various ways. Why should we not want to trade with the rest of the world? Why are we being weak? Why can we not get our own trade deals? The EU takes so long to get a trade deal. We have seen how long it has taken, and we can do so much better.

[Ruth George]

Will my hon. Friend give way?

[Kate Hoey]

I will not. Well, I had better give way to one Member from my own side.

[Ruth George]

Businesses in my constituency have expressed huge concern that, when we leave the EU, we will cease to receive the preferential tariffs that we currently enjoy with 188 countries outside the EU. Those businesses will cease to have the same competitive level playing field with EU countries that they have now, and by the time we have these free trade agreements, they will have lost their trade.

--- Later in debate ---

[Ruth George (High Peak) (Lab)]

I have sat and listened to some expert speakers this afternoon. As a Member who was elected only last summer, I do not pretend to be an expert on Brexit or its implications, but the right hon. Member for Wantage (Mr Vaizey) has just said it all; we have all learned an awful lot over the last 12 months or more. We have to be very good listeners, and that is what I have tried to do since my election.

I have heard from many hon. Members on Select Committees who have listened to businesses. Every single Member who has spoken and quoted what businesses are telling them has supported our remaining in the customs union. Less than two weeks ago, I held a Brexit seminar with local businesses in my constituency, rural High Peak in Derbyshire. I heard their huge concerns not only about leaving the customs union in a year’s time, but about the impact of the uncertainty that is being caused by Brexit and the possibility that we will not be able to continue in the customs union.

Leaving the customs union will slow up the supply chains of these companies. They have just-in-time procurement, and if they cannot manage that, it will slow the whole manufacturing process and increase their costs. If we have hard borders, their costs will increase further not only because of tariffs, but because of paperwork and bureaucracy. That does not just apply to their trade with European Union countries; much of their trade goes through EU countries, even if it ends up elsewhere in the world. Any impact on our borders with the EU will affect our trade elsewhere.

Such costs will put us at a serious competitive disadvantage to companies in other European countries, and those companies are not slow to take that advantage over British companies and approach their customers. My companies tell me that they are already losing contracts because, when they go to bid, they are asked, “Can you guarantee that you will remain a member of the customs union, and that you will be able to maintain frictionless trade and supply chains?” Less than 12 months from our departure from the EU, my companies cannot give that guarantee.

At least four companies in my constituency have already had to set up branches in European Union countries; the right hon. Member for Broxtowe (Anna Soubry) mentioned that issue. Ireland has a significant backlog of companies seeking to register for VAT in the Republic of Ireland, because so many companies are having to do so. Given the barriers to trade that may come with us leaving the customs union, we will end up with more and more jobs having to go from the UK to EU countries because it makes sense for companies to trade from there.

[Helen Goodman]

My hon. Friend is making excellent points. Is she also worried about the impact on inward investment? When the Japanese ambassador who represents companies as large as Nissan and Hitachi says that the customs union is important for Japanese trade, does that spell out a bad long-term future for us?

[Ruth George]

Absolutely. My hon. Friend makes an excellent point, and global companies in my constituency say that their head offices have put a kibosh on any inward investment into companies at UK sites until they know the outcome of the Brexit negotiations. That is holding them back compared with other sites in the rest of the world, and it is having a long-term impact on valuable manufacturing jobs and other high-skilled jobs in my constituency.

Whatever my constituents voted for when they voted—by a very small majority—to leave the European Union, they did not vote to give British companies a competitive disadvantage compared with those in Europe, or for jobs to be transferred from the UK to overseas, as is already happening at companies in my constituency. As the negotiations proceed, and as we vote in this place on the Brexit deal, I intend to keep listening, particularly to those businesses that will be most affected and feel that they have the least voice in this process. We must ensure that whatever deal we get will work for my constituents and the businesses that employ them.