Taxation (Cross-border Trade) Bill

Sammy Wilson Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Monday 16th July 2018 Commons Chamber

[Mr Speaker]

He has. We are grateful to him.

[Sammy Wilson (East Antrim) (DUP)]

When we had the referendum result, and given the bitterness that existed during the referendum, I had absolutely no doubt that, despite the overwhelming vote, we were going to see guerrilla warfare conducted against the will of the people of the United Kingdom. We have seen it over the past year and a half—fall-outs in this place and fall-outs in TV studios, newspapers and so on. The amendments to this Bill fall into one of those two categories. People will give a whole variety of reasons, but, basically, they want to move amendments to this Bill to keep us in the institutions of the EU, which has bound us for so many years and from which people voted to be free. On the other side, there are those who wish to remain true to the vote of the people and make sure that everything is done to deliver on the promises that were made during the referendum.

Unfortunately, Northern Ireland, which has featured in nearly every speech here tonight, has been caught in the crossfire of that guerrilla warfare between those who wish to keep us in the EU and those who wish to honour the result of the referendum. The Northern Ireland border, the Good Friday agreement and the peace in Northern Ireland have been thrown around willy-nilly. To be quite frank, the people of Northern Ireland feel abused in this whole process. I have heard people in this place talk about the Belfast agreement as if it were their bedtime reading. They probably do not even know what the document looks like.

It has been suggested that if we do not abide by those who wish to keep us in the customs union and the single market, we will have a hard border in Northern Ireland, which will affect the peace. I do not know what this hard border will look like, but I can tell Members one thing: if they think that a couple of border posts along the main road at Newry, the main road into Londonderry and the main road into Enniskillen will represent a hard border that will somehow protect the EU from the incursion of goods that they do not want, then they do not even understand what it means. It could be that they think that a hard border means a minefield around the border with watchtowers so that no lorries can sneak across the 300 or so roads, or that people cannot build sheds in the middle of field where they put goods in one side in Northern Ireland and they come out the other side in the Irish Republic. It is a ridiculous suggestion, yet it is thrown at us all the time.

We heard the right hon. Member for Broxtowe (Anna Soubry) talk about the impact on the border and that the World Trade Organisation would insist on the provisions because it would have to protect trade. The Irish Republic currently brings in goods from the rest of the world. Does it stop every container that comes in? No, it does not. Does it stop 10% of the containers? No, it does not. It does not even stop 1%. In fact, Gambia stops more trade coming through its borders than the Irish Republic stops. The idea that, somehow or other, every good that comes into the EU via Northern Ireland and then the Republic will have to be stopped does not even match with common-day practice.

When it comes to collecting taxes, 13,000 lorries a year cross the border carrying drink to other parts of the United Kingdom. There is duty to be collected on that, but not one of them is stopped because the duty is collected electronically through pre-notification and trusted trader status. We can protect the border and meet WTO rules without having all the kinds of paraphernalia suggested here tonight.

[Kate Hoey (Vauxhall) (Lab)]

The right hon. Gentleman is quite right; there seem to be an awful lot of people who do not really understand what goes on at the border now. Why would anyone who supports Northern Ireland even think of voting against new clause 37 tonight? The new clause clearly puts it out there that we want Northern Ireland to be treated the same way as the rest of the United Kingdom, so in voting against it, people would actually be supporting the Republic of Ireland.

[Sammy Wilson]

That is the whole point of new clause 37. First, it would deliver on the promises made by the Government; it puts those promises into law. Secondly, it would avoid the break-up of the United Kingdom and the kind of nonsense that we are going to hear from the Scottish National party—that we can redefine the United Kingdom to exclude Northern Ireland when it comes to trade issues. Of course, that would be against the Belfast agreement, because the Belfast agreement does not actually say a great deal about borders, but it says a lot about the integrity of the United Kingdom—that it cannot be changed by diktat from the EU or by demands from Dublin. It can only be changed with the will of the people of Northern Ireland. Yet the suggested backstop arrangement is at the behest of the EU, which seems to disregard the most important part of the Belfast agreement and has destabilised Northern Ireland as a result.

[Karin Smyth (Bristol South) (Lab)]

The right hon. Gentleman is of course right that the constitutional status of Northern Ireland has not been in dispute for a very long time and is underlined by the Belfast/Good Friday agreement. People have only started talking about the constitutional arrangements in Northern Ireland as a result of Brexit. That is the only thing that has now started to trigger any discussion around the break-up of the United Kingdom, and I am afraid that his party has helped that process.

[Sammy Wilson]

That is the point that I am making—that this red herring has been thrown into the debate to try to persuade people like me and Government Members to stay within the customs union and the single market. It is a red herring because, as I have said, it is not essential to have a hard border to protect trade between the United Kingdom outside the EU and the Irish Republic inside the EU. Other methods are currently used. We have a fiscal border, a regulatory border and a currency border. We do not need checks at the moment, so why would that change once we leave the EU?

The third thing about new clause 37 is that it would actually strengthen the Prime Minister’s hand. When she goes into negotiations, Barnier and Co. will still be badgering her and insisting that there has to be a different regime of regulation, law and EU interference in Northern Ireland. It will strengthen the Prime Minister’s hand to be able to say that the Parliament of the United Kingdom has said in law, “We will not and cannot change the status of Northern Ireland. We cannot have separate customs arrangements for Northern Ireland and the law says that.”

New clause 37 would also protect Northern Ireland from being cut off from its biggest market. The Irish Republic is not our biggest market. The whole EU is not our biggest market. Over 60% of the produce of Northern Ireland comes to Great Britain. Ironically, if the Government in Dublin were thinking with their head, they would recognise that the Barnier formula for the border is also detrimental to the Irish Republic, because it would mean having a border down the Irish sea, cutting the Irish Republic off from its biggest market. Over 50% of its agricultural products come here, yet it is concerned about the paltry border that counts for 1.6% of its trade. People just fail to understand why this should be the case and why the Government of the Republic should take that view.

The Prime Minister has an opportunity. New clause 37 would strengthen her hand in the negotiations coming up to October. She still has the opportunity to tell the EU, “If you want our money, give us a fair deal. We’ll prepare for a no deal if we can’t get a good deal. The balance of trade rests with us. If you want access to our markets, make sure that we get access to your markets.” That should be the approach. Get the handbag out, do a bit of swinging and get a good deal.