Customs and Borders

Debate between Ruth George and Helen Goodman

Thursday 26th April 2018 Commons Chamber

[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.