John Bercow
Main Page: John Bercow (Speaker - Buckingham)Department Debates - View all John Bercow's debates with the HM Treasury
Monday 16th July 2018
(6 years, 5 months ago)
Commons ChamberRead Full debate Taxation (Cross-border Trade) Act 2018 View all Taxation (Cross-border Trade) Act 2018 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 16 July 2018 - (16 Jul 2018)
Several hon. Members rose—
Mr Speaker
Order. The right hon. and learned Member for Rushcliffe (Mr Clarke) will be the last Member to speak under the 12-minute limit. By how much the subsequent limit will have to be lowered is very much dependent on the right hon. and learned Gentleman.
Several hon. Members rose—
Tom Brake (Carshalton and Wallington) (LD)
I hope that the penny is now dropping among those who inflicted the EU referendum and the subsequent chaos on the country as to precisely what damage this Tory farce is doing to our standing in the world and to our economy. We are two years on, yet no real progress has been made. Tory rivalries, leadership ambitions and factionalism are making this country a laughing stock, and Tory Members should be ashamed. I am sorry to say that Labour Front Benchers also often contribute to the farce.
I want to speak in favour of accepting new clauses 1 and 12 if they are pushed to a vote, and to speak against new clause 36, which is clearly a wrecking amendment. I hope that, when the Minister responds, he is able to explain why new clause 36 does not drive a coach and horses through the Chequers agreement. Everyone in the House knows that it does, but Ministers appear to be pretending that it does not. I commend the right hon. Member for Broxtowe (Anna Soubry), who is no longer in her place, for the anger and passion that she brought to the debate, and for starting to set out the consequences of Brexit. So far, the debate has been rather short on consequences. There has been a lot about aspirations, ambition, ideology and speculation, but rather little about the consequences of Brexit. Some Government Members pretend that Brexit will have no impact on the UK economy. Others are more honest, including the hon. Member for Harwich and North Essex (Sir Bernard Jenkin), who has just left his place—
Several hon. Members rose—
Mr Speaker
The right hon. Lady used commendable brevity, upon which I congratulate her.
Ian Murray (Edinburgh South) (Lab)
It is a great privilege to follow the right hon. Member for Witham (Priti Patel). We sit on the Select Committee on Foreign Affairs together and agree on much of its work. However, I am afraid that we agree on nothing when it comes to Brexit, and we have those battles in the Committee.
It is unfortunate that we have been left here this evening with a set of four amendments from the group of Conservative rebels who want to take us off a cliff edge. That is what the amendments are designed to do. We have unconfirmed reports that the Government may accept the amendments. I do not know whether the Financial Secretary to the Treasury will nod to indicate that he will accept them, but if he does, I hope he has a match or a lighter in his pocket, because he would do just as well to set the Chequers agreement alight, given the consequences.
On top of all that, the former Secretary of State for Exiting the European Union, the right hon. Member for Haltemprice and Howden (Mr Davis), must now regret leaving the Government, given that after threatening to resign five times, he finally went through with it by resigning following the Chequers agreement, which is just about to be ripped up by his own Front-Bench team and replaced with a much more hard-line position that will take us off the cliff with a hard Brexit. If he had only stayed on a few more days, he may have been able to see through the proposals that he started.
Craig Mackinlay
I am sorry, but that must have passed me by. I know that, to get around the difficulties that were caused by the tampon tax and the significant debate that we had in this Chamber, of which I was a part, the Government agreed to sort of equal the amount that was collected to pass it to charity. So it seems bizarre that we have not taken the steps that are available.
The other thing about going along with the VAT directives and how VAT is managed is that we have been subject to the missing trader intra-community fraud, the so-called carousel fraud, which cost this country £1.7 billion last year. It is estimated to cost the EU as a whole into the tens of billions of pounds. Over the period of the administration of VAT in its current form, it could have cost anything up to £100 billion across the EU. Are we really saying that these failed systems are something that we want to be attached to in perpetuity?
The Prime Minister has said very clearly that we will be in control of our tax policy. Just last week, following Chequers, the Secretary of State for the Environment also confirmed that we cannot actually set our own taxes as we would wish to at the moment because VAT is set in accordance with EU rules. That is another area in which we will be sovereign. Amendment 73 would make sure that, no matter what the future holds, primary legislation will be needed to do this. We cannot have the vestiges of some of the worst VAT rules that anybody could ever imagine remaining on our statute book. For that reason and given that powerful debate on the tampon tax, I certainly hope that others across this House will support that amendment this evening.
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.
Kevin Hollinrake
My hon. Friend is making some very good points. I certainly do not argue that we should be members of customs union, but the Freight Transport Association recently gave the example of a situation whereby a trailer full of 40 different consignments goes from Birmingham to Belfast, and then goes into 40 different white vans in Belfast. How does my hon. Friend propose that we would meet our responsibility to pay customs in such a situation?
Mr Speaker
Order. I am immensely grateful. May I encourage the hon. Member for Harwich and North Essex (Sir Bernard Jenkin) to draw his remarks to a close? He is within his time, but a lot of other people want to speak and I am being pressed by people who, quite understandably, want time. If the hon. Gentleman—with his brilliant eloquence and pithiness—could wrap up in a minute or two, that would be marvellous.
Sir Bernard Jenkin
Thank you, Mr Speaker. Just to answer my hon. Friend’s point, I think that we have to be practical. There will be a change in the way in which people treat consignments because they are crossing a customs frontier, but as the technology develops it will be possible to track individual consignments or multiple consignments in trucks across customs frontiers. We have discussed this matter with Revenue and Customs in this country. Ultimately, in future—looking ahead 10 or 20 years—the idea of customs frontiers existing between countries that trade tariff-free will become obsolete. To hinge our entire Brexit policy on the issue of not having customs declarations and customs frontiers is very last century, and we should not be captured by that.
My remarks are directed primarily at amendment 72, which I confess has turned out to be disappointingly uncontroversial. It was the intention of the European Research Group, a group of Conservative Back Benchers, to table four amendments—one or two of them in the light of the Chequers agreement and the White Paper—to test our understanding of the intention of Government policy. Every single one of our amendments, we believe, reflects Government policy. I do not imagine that the Government would have accepted any of them as calmly as they have if they did not reflect Government policy.
Sir Bernard Jenkin
No, that is what he said. He said that we will have to rethink Brexit completely if we cannot get a satisfactory arrangement. That is the direction he is going in. I respect his view, but throwing around insults like “useless” is not elevating the debate.
My amendment 72 simply removes from the Bill an extraordinarily powerful Henry VIII provision that we should be signed up to a customs union with the European Union simply by order. Following the amendment that my right hon. and learned Friend the Member for Beaconsfield (Mr Grieve) tabled to clause 9 of the European Union (Withdrawal) Bill, I thought that what is sauce for the goose is sauce for the gander. I do not suppose that I shall hear him speak against my amendment, because it puts Parliament back in control of the decision to join a customs union with the European Union. That is what I think we should do.
Sir Bernard Jenkin
I end on this one point, Mr Speaker. We have heard a lot about 40 MPs having an excessive amount of influence in this Chamber. In fact, 17.4 million people voted leave in the referendum, and 70% of Conservative MPs and 60% of Labour MPs represent leave constituencies. It would be bizarre if, in the end, the House of Commons, which was elected predominantly on leave manifestos, put up road blocks against leaving the European Union, and I do not believe that it will.
Mr Speaker
Thank you. The time limit will have to be reduced, with immediate effect, to five minutes.
Helen Goodman (Bishop Auckland) (Lab)
I wish to speak to new clause 11 and against amendment 73.
Last week, we had a debate in Westminster Hall in which the Financial Secretary to the Treasury, who is back in his place, advised me that everything would become clear when the White Paper was published. I am afraid that for me, 70 minutes before we are going to vote, Government policy is still not quite clear. I am going to ask the Minister a few questions in the hope that we might get some clarification from him. I am interested in the interrelationship between the Bill and the White Paper, which was published last week.
Contrary to what some right hon. and hon. Members wish to say, the common market, which is the customs union, is fantastically popular with the public. Whenever I ask my constituents, “What do you dislike about Europe?”, they say, “Being bossed around”, and “The immigration.” When I say, “What do you like about it?”, they say, “Oh, we love the common market.” Well, of course, the common market is the customs union. When I talk to industrialists, what they want—in the words of GlaxoSmithKline, which employs 1,000 people in my constituency—is “no disruption”. PPG Industries, which is a supplier to Airbus, wants a common rule book. When I spoke this morning to the North East chamber of commerce, it said that 90% of its members want to stay in the customs union. We know that legally speaking that is not possible, so we have to have a new one that will give them the “exact same benefits”.
I am not clear about whether the Bill facilitates the customs approach that is set out in the White Paper. Nor am I clear about which of the Government’s amendments have made changes to the Bill that will enable them to undertake the facilitated customs arrangement that they have described in the White Paper. Nor am I clear—I very much hope that the Minister will be able to explain this; I am sure that he now will be—about whether the Government’s proposed acceptance of amendments from the ERG means that they are abandoning the facilitated customs arrangement as their opening position or that they are still holding to it. If they are still holding to it, I would suggest that it is not wholly practical. It will need a tracking system so that when people import goods, they know where their final use is going to be. This is a whole new bureaucratic system. It means that people who import will have to have information along the supply chain that, at the moment, is of no concern to them. The White Paper says that there is going to be a formula so that we can follow the proportions from the past year, but what if things change from one year to another? Then people will have to make their rebates on the basis of new, fresh information in real time. It sounds very much as though we are going to have not only VAT but VAT mark 2.
Paragraph 20 on page 18 of the White Paper says:
“This could include looking to make it easier for traders to lodge information…This could include exploring how machine learning and artificial intelligence could allow traders to automate…This could…include exploring how allowing data sharing across borders”
would work. It could include rather a lot of things. I can only imagine officials saying to Ministers when they were drafting this, “This does seem to involve rather a lot of imagination.” It does not seem to be bottomed out. I would much prefer it if we could go along the path set out by my hon. Friends on the Front Bench in new clause 11, because what is being proposed will be horrendously bureaucratic and an open invitation to smuggling.
Several hon. Members rose—
Mr Speaker
Order. Several Members, all on the same side of the House, wish to speak. I suggest that the time limit be now reduced to four minutes, but it is not obligatory for Members to consume all four.
Mr Rees-Mogg
May I first thank my right hon. Friend the Member for Putney (Justine Greening) for making what I thought was a remarkably gracious speech, in quite a fevered atmosphere, and for putting both sides of the case so generously and kindly?
I want to speak to the four new clauses and amendments that I have supported and, in most cases, put my name to. They are broadly in line with Government policy, which is why the Government have accepted them. New clause 37 relates to the Northern Ireland question. It is clearly Government policy that Northern Ireland should not be removed from the rest of the United Kingdom, and I think that to put that in legislation would be beneficial.
Amendment 72 relates to Henry VIII clauses. I agree with my right hon. and learned Friend the Member for Beaconsfield (Mr Grieve)—or “beacon’s field”, as Benjamin Disraeli pronounced it—that we should not have Henry VIII clauses if we can possibly avoid them, as they are not good legislative practice. The fewer Henry VIII clauses we have, the better. I confess that I would have supported my right hon. and learned Friend in earlier Bills had I not thought that, in so doing, I would have caused suspicion on the other side of the European debate, with people wondering what on earth I was up to. However, I am very pleased that Henry VIII clauses are becoming less popular in the House.
Amendment 73 has been a topic of discussion in relation to no EU VAT regime. This is actually Government policy, as set out by my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs on “The Andrew Marr Show”, when he said that once we had left the European Union we would not be part of the EU VAT regime. The difference here is between acquisition VAT and import VAT. Import VAT is the normal way we charge VAT on third countries outside the European Union, whereas acquisition VAT is an EU system. Therefore, if we are leaving, it makes absolute sense to be out of this, and that fits with what the Government have said.
Several hon. Members rose—
Mr Djanogly
Let me start by saying that, to my mind, the European Research Group’s amendments are clearly aimed at restricting the Government’s ability to negotiate, if indeed they are compatible with the White Paper at all—a White Paper that I support. Amendment 73 and new clause 36 certainly fall into that category. I think that they have been tabled by those who wish to create such difficulties and red lines that we are forced into a hard Brexit, ostensibly by default but secretly by design. They will not have my support tonight.
I want to address the claims of those who say that we do not want the FCA, or indeed a customs union, because we cannot then strike our own trade deals. I note that the Government maintain that we should be able to separate goods from services, but others caution against that because goods and services are often so intrinsically linked that it is unrealistic. I will wait to see the EU’s position.
However, on the central issue of negotiating our own FTAs, I think that we need to question the benefits that so many seem to be taking for granted. First, we need to appreciate that the Department for International Trade is currently acting like something of a Jekyll and Hyde character—on the one hand the Secretary of State is talking about bravely striding around the world seeking new FTAs with countries such as the US and China, but on the other he is pleading with the EU and about 70 third-party countries to roll over the existing 40 or so FTAs that the EU now has with them. So, with more than one third of the world’s countries, Brexit represents the chance at best to get the same deal as from the EU. From the look of things, we may yet get a worse deal in some cases as those third countries start evaluating the decreased advantage of dealing with 50 million rather than 500 million people.
Secondly, there is little evidence that business sees any advantage in customs differentiation—indeed, quite the opposite. The vast majority see advantages in our customs negotiating position, which emanates from the power of the huge trading bloc that the EU represents, and will wish in any event to stick as closely as possible to whatever trading position the EU takes.
Thirdly, world trade is much more interlinked and complex than most people discuss. For example, some of the existing trade agreements that we want to roll over, such as those with Canada and South Korea, feature most favoured nation clauses. Therefore, if we agree a FTA with the USA that offers better terms than those we agreed with Canada, Canada would need to be offered the same. The advantages of being outside the customs union are thus much reduced in any event, and talk of becoming a colony or vassal state is ridiculous.
Fourthly, we live in a world of trading deals where size matters. Rather than discussing a trade deal with the US, we have become caught up in a trade battle. Again, if we were in a customs union, we would have more cover.
Finally, the process of negotiating new FTAs is a long and arduous business. The average time is seven years; Canada took 15 years. Bargaining is tough and based on potential market clout. That goes back to the possibility of US chlorinated chickens and so forth. We need—
Mr Speaker
Order. I am extremely obliged to the hon. Gentleman, to whom I could always listen at length, but we must move on.
Kevin Hollinrake
I want to speak against new clause 1, which my right hon. Friend the Member for Broxtowe (Anna Soubry) tabled.
Among many points my constituents have made to me in the past few weeks, they have asked why the House cannot work together on Brexit. I suppose the simple answer is that our biggest challenge—what divides us most—is not acceptance of the result of the referendum on 23 June 2016, but its practical interpretation as the basis for our future relationship with the EU.
Parliament is bound by our promise on Brexit, but perhaps it also needs to accept some key principles, which reflect the promises that were made during the referendum campaign. Where better to look for those promises than the voice of the official body that argued for Brexit—Vote Leave? On trade, the Vote Leave manifesto was clear:
“We take back the power to make our own trade deals”.
On that basis, it is clear that we must not remain part of a customs union as that would prevent us from directly negotiating and implementing trade deals. It is therefore strange that being part of a customs union seems to be Labour party policy, which goes right against the clear mandate that the people gave us.
There were other commitments in the Vote Leave manifesto, for example,
“one thing which won’t change is our ability to trade freely with Europe.”
On that basis, it is fair for businesses, and the people whose jobs rely on those businesses, to assume that nothing will change. Of course, Members have made the point that other countries manage to have just-in-time supply chains when they have a customs border, but most countries have not been part of a trading environment for 44 years in which they have not carried the burden of those complexities.
We know from Ricardo’s theory of comparative advantage that businesses have a choice to station themselves here or move jobs to other parts of the EU because extra costs will ensue if they do not: costs for customs checks and for checks on standards. I believe that staying part of a customs union is not consistent with the mandate that the people gave us, but that the White Paper, as articulated by the Prime Minister, deals with our obligation to leave the EU while also minimising the costs of comparative advantage. The House should support it.
Vicky Ford
We are leaving the EU and that means that we need to have a new relationship with the single market and the customs union—we cannot carry on as we were before. However, leave voters were told time and again that trade would continue and that having customs clarity was important to that trade.
I want to dispel some myths. First, zero-tariff regimes are not the same as no-tariff regimes. A no-tariff regime, which we have now, means no customs declaration and no rules of origin. A zero-tariff regime means both. That is why I am glad that the White Paper says that we will have no customs declarations and no rules of origin.
On myth two, we do not need to be in a customs union to resolve the rules of origin issue. That can be done through a PEM convention. On myth three, being in a single rulebook on goods does not stop us from doing trade deals with other parts of the world—just look at Switzerland. On myth four, trading on World Trade Organisation rules means that there will have to be a goods border in Ireland, otherwise the UK will breach our agreements with other trading partners, as will the EU. On myth five, just-in-time delivery of goods coming from China, which takes four weeks at sea, is not the same as just-in-time delivery across the channel.
I support some of the amendments. New clause 37 on no hard border in the Irish sea makes sense. Amendment 72 also makes sense. However, I am concerned about amendment 73. I do not like the EU VAT regime, but we need more clarity on that. On new clause 36, I agree we need a balanced approach on tax collection, but how it is worded is very unclear. I do not understand how the word “reciprocity” works in a legal framework when it is country to country versus us to EU. There needs to be a much clearer legal basis.
Jack Brereton (Stoke-on-Trent South) (Con)
I want to focus on trade remedies. This is particularly important for the ceramic sector in my constituency, so I am absolutely delighted that the Government have listened to the arguments I have been making over the past year and secured clarifying amendments on trade remedies that, critically, will deliver the right Brexit for the ceramic sector, for wider manufacturing industry, and, most importantly, for the workforce and the voters of Stoke-on-Trent.
The Government have tabled several critical amendments. I was very pleased last week to have an answer to a written question providing confirmation on establishing normal value. That is so important to resisting the dumping of ceramic products from China. Significant state subsidisation by China, particularly in the ceramics industry, threatens British industry, so I am pleased that the Government have listened to those arguments and, through their amendments, have taken action.
Mr Speaker
I call the Financial Secretary to the Treasury, Mel Stride, but, as I do so, I must advise the House that the right hon. Gentleman is accompanied tonight, on his 13th wedding anniversary, by his good wife Michelle and their daughters Ophelia and Evelyn. It is an unusual way to spend the evening, but we hope they are enjoying it and we look forward to hearing the right hon. Gentleman.
The Financial Secretary to the Treasury (Mel Stride)
Mr Speaker, that is quite an introduction; thank you most graciously for your lovely comments—you will no doubt be injecting some zip into my marriage.
The Government have been clear that when we leave the EU we will leave the customs union; this is a matter of fact. And when considering the end state, the Government will not be seeking to negotiate any form of customs union. The Government proposal will create a UK-EU free trade area which establishes a common rulebook for industrial goods and agricultural products. This will maintain common high standards in these areas, but also ensure that no new changes take place in future without the approval of Parliament. As a result, we will avoid friction at the borders and protect jobs and livelihoods, as well as meet our commitment to Northern Ireland. We are proposing a new business-friendly customs model with the freedom to strike new trade deals around the world, a facilitated customs arrangement.
Mel Stride
The negotiating strategy of the UK Government is to seek reciprocity in this respect, and that is set out very clearly in the White Paper. Importantly, amendment 72 does not interfere with the Government’s purpose. We have no objection to the principle behind the amendment and we therefore accept it.
Amendment 73, tabled by my hon. Friend the Member for South Thanet (Craig Mackinlay), will remove a specific power that will enable HMRC to make regulations covering the application of VAT to goods in circumstances where we reach a customs union agreement with other customs unions or territories under clause 31. The Chequers agreement does not propose such an arrangement with the European Union as part of the future economic partnership, so the Government accept this amendment.
The effect of new clause 37, tabled by my hon. Friend the Member for Tewkesbury (Mr Robertson), would be to ensure that Northern Ireland would not form part of a separate customs territory from Great Britain. This new clause is a straightforward statement of Government policy. It ensures that the Government will not act in a manner incompatible with the commitments made in the joint report of December last year, when we committed to protecting the constitutional integrity of the United Kingdom, as well as to turning the joint report commitments into legally binding form. The Government also accept this new clause.
I shall turn now to our future VAT arrangements with the EU. New clause 2 seeks to establish a negotiating objective to maintain the UK’s participation in the EU VAT area. This would limit our ability to appropriately consider our future VAT policy, and for that reason we reject it. The Government are also making an amendment to a schedule to the Finance Act 2008. Amendment 83 is consequential on the new customs framework provided for in the Bill and is necessary to ensure certain excise penalties remain in place on EU exit.
I now wish to turn briefly to the powers in the Bill. It is critical that we have these powers to allow us to respond flexibly, but we accept that in some cases it may be considered proportionate to apply the made affirmative procedure, and I am grateful for the discussion that I have had with my hon. Friend the Member for Eddisbury (Antoinette Sandbach) in this regard. It is on this basis that the Government have brought forward amendments 75, 76, 79, 81 and 23, which apply the made affirmative procedure to the powers under clauses 30, 42 and 47—the powers to make general provision in relation to import duty and to deal with retained EU VAT and excise law.
Clause 25 permits disclosures for customs duty purposes and makes it clear that disclosures that would contravene the Data Protection Act 1998 are not permitted. We accept the Scottish National party’s amendments 33 and 34, which seek clarity in that regard.
Finally, we have had a full, robust and comprehensive debate today, as is entirely appropriate for a Bill of such importance. It is important for our ability to continue as one of the world’s great trading nations after our departure from the EU and to accommodate our future customs arrangement within our future economic partnership with the EU.
Anna Soubry
New clause 36 and amendment 73 are designed not to help the White Paper, but to wreck it. I am going to try to help the White Paper, which is why I seek leave to withdraw new clause 1.
Clause, by leave, withdrawn.
Mr Speaker
Order. I am sure that this matter is of the greatest possible interest to the right hon. Member for North Norfolk (Norman Lamb). He is engaged in an animated conversation with his right hon. Friend the Member for Carshalton and Wallington (Tom Brake), but I feel sure that they are intensely interested in new clause 16 and the conduct of the democratic process relating thereto. Suitable interest is now demonstrated. Tellers for the Ayes are Mr David Linden and Mrs Marian Fellows. Tellers for the Noes are Wendy Morton and Mike Freer. Now those right hon. Members will be delighted to know that they can go back to talking to and listening, with rapt attention, to each other.
Mr Speaker
I informed the House earlier—which may have been of interest to those present, and with the encouragement of the right hon. Gentleman concerned—that the Financial Secretary was celebrating his 13th wedding anniversary in the presence of his wife and his two delightful daughters in the Gallery. I now must inform the House—[Interruption.] Well, whether I must or not, I am going to: I now must inform the House that the Mother of the House, the right hon. and learned Member for Camberwell and Peckham (Ms Harman), has become a grandmother. I congratulate the right hon. and learned Lady, and the hon. Member for Birmingham, Erdington (Jack Dromey), who has become a grandfather. I must tell the House that Holly was born yesterday at 4 o’clock in the morning. Congratulations to the right hon. and learned Lady.
Clause 25
Disclosure of information
Amendment proposed: 33, page 17, line 2, leave out “Data Protection Act 1998” and insert “data protection legislation”.—(Kirsty Blackman.)
Question put, That the amendment be made.
A Division was called.
Mr Speaker
Order. Colleagues will understand me if I say that I think there might be some evidence of what I might call ritualism involved in this matter, but it is up to people to find their own salvation, and I think that the Financial Secretary to the Treasury is well able to do so, with help from others if he is so minded.
Mr Speaker
Order. It is very good of the right hon. Gentleman, but I think that the Government had previously signalled, and I had been advised—although this is not a matter for the Chair—that they had accepted this amendment. However, when it was put to the vote, and Scottish National party voices shouted Aye, there was what might be described as an instinctive reaction of No from some quarters. If that is what the right hon. Gentleman was attempting to articulate, we are most grateful to him.
Mel Stride
Thank you, Mr Speaker. The instincts on our side are often divided, but not on this matter. We are at one in accepting amendment 33, as well as amendment 34, tabled by the Scottish National party.
Mr Speaker
Well, an absence of Tellers will suffice to achieve the objective of the Minister. Division off.
Amendment 33 agreed to.
Amendment made: 34, page 17, line 4, at end insert—
‘(8) In this section, “the data protection legislation” has the same meaning as in the Data Protection Act 2018.’ —(Kirsty Blackman.)
Clause 31
Territories forming part of a customs union with UK
Amendment made: 72, page 18, line 34, at end insert—
‘(4A) In the case of a customs union between the United Kingdom and the European Union, Her Majesty may not make a declaration by Order In Council under subsection (4) unless the arrangements have been approved by an Act of Parliament.’—(Sir Bernard Jenkin.)
This amendment provides that the delegated powers under this clause may not be exercised until a proposed customs union with the European Union has been approved by a separate Act of Parliament.
Clause 32
Regulations etc
Amendments made: 75, page 19, line 15, leave out paragraphs (a) and (b) and insert
“any regulations to which this subsection applies”.
Amendments 75 and 76 provide that regulations under Clause 30 (general provision for import duty purposes) cease to have effect if not approved by the House of Commons within 28 days of being made.
Amendment 76, page 19, line 21, at end insert—
“( ) Subsection (2) applies to—
(a) the first regulations under section8 (the customs tariff),
(b) any other regulations under that section the effect of which is an increase in the amount of import duty payable under the customs tariff in a standard case (within the meaning of that section), or
(c) regulations under section30 (general provision for import duty purposes).”—(Mel Stride.)
See the explanatory statement for Amendment 75.
Clause 39
Charge to export duty
Amendment made: 77, page 27, line 12, at end insert—
“( ) the interests of producers in the United Kingdom of the goods concerned,”.—(Mel Stride.)
This amendment requires the Treasury, when considering whether to impose export duty and the rate of export duty that ought to apply to particular goods if it is to be imposed, to have regard to the interests of UK producers of those goods.
Clause 42
EU law relating to VAT
Amendments made: 78, page 29, line 45, at end insert—
“( ) No regulations may be made under this section on or after 1 April 2023.”
This amendment provides that the powers to make regulations under Clause 42 (EU law relating to VAT) are not exercisable after 31 March 2023.
Amendment 79, page 30, line 1, leave out from “section” to end of line 2 and insert
“must be laid before the House of Commons, and, unless approved by that House before the end of the period of 28 days beginning with the date on which the instrument is made, ceases to have effect at the end of that period.
‘( ) The fact that a statutory instrument ceases to have effect as mentioned in subsection (6) does not affect—
(a) anything previously done under the instrument, or
(b) the making of a new statutory instrument.
( ) In calculating the period for the purposes of subsection (6), no account is to be taken of any time—
(a) during which Parliament is dissolved or prorogued, or
(b) during which the House of Commons is adjourned for more than 4 days.”—(Mel Stride.)
This amendment provides that regulations under Clause 42 (EU law relating to VAT) cease to have effect if not approved by the House of Commons within 28 days of being made.
Clause 47
EU law relating to excise duty
Amendment made: 80, page 32, line 47, at end insert—
“( ) No regulations may be made under this section on or after 1 April 2023.”—(Mel Stride.)
This amendment provides that the power to make regulations under Clause 47 (EU law relating to excise duty) is not exercisable after 31 March 2023.
Clause 48
Regulations under ss. 44 to 47
Amendments made: 81, page 33, line 12, after “section” insert “, or regulations under section 47,”.
This amendment provides that regulations under Clause 47 (EU law relating to excise duty) cease to have effect if not approved by the House of Commons within 28 days of being made.
Amendment 23, page 33, line 30, leave out “47” and insert “46”.—(Mel Stride.)
This amendment is consequential Amendment 81.
Clause 51
Power to make provision in relation to VAT or duties of customs or excise
Amendment made: 82, page 34, line 41, at end insert—
“( ) No regulations may be made under this section on or after 1 April 2022.”—(Mel Stride.)
This amendment provides that the power to make regulations under Clause 51 (power to make provision in relation to VAT or duties of customs or excise) is not exercisable after 31 March 2022.
Schedule 4
Dumping of goods or foreign subsidies causing injury to UK industry
Amendments made: 103, page 66, line 26, leave out from “that” to end of line 30 and insert
“it is not in the public interest to accept it.
‘(2A) In considering that, the Secretary of State must accept the TRA’s determination that requiring a guarantee in accordance with the recommendation meets the economic interest test (see paragraph 25), unless the Secretary of State is satisfied that the determination is not one that the TRA could reasonably have made.”
Amendments 103 and 108 provide that the Secretary of State may reject a recommendation by the TRA to apply an anti-dumping or anti-subsidy remedy only if the Secretary of State is satisfied that it is not in the public interest to accept the recommendation. In deciding that, the Secretary of State must accept the TRA’s view that the economic interest test is met, unless satisfied that the TRA could not reasonably have come to that view.
Amendment 104, page 68, line 42, leave out
“such period as the TRA considers necessary”
and insert
“a period of 5 years unless the TRA considers that a lesser period is sufficient”.
Amendments 104 and 105 provide that the recommended period for the application of an anti-dumping amount or a countervailing amount is 5 years unless the TRA considers that a lesser period is sufficient to counteract the dumping, or the importation of subsidised goods, which has caused or is causing injury.
Amendment 105, page 69, line 1, leave out from beginning to “and” in line 3.
See the explanatory statement for Amendment 104.
Amendment 106, page 69, line 8, at end insert—
“( ) In the case of a recommendation of such a prior date made by virtue of paragraph 19, the reference in sub-paragraph (2)(a) to a period of 5 years is to be read as a reference to a period of 5 years plus the relevant period (within the meaning of paragraph 19).”
This amendment ensures that where it is recommended that an anti-dumping amount or a countervailing amount is applied to goods from a date on or before the day of publication of the relevant public notice under clause 13, the default recommended period of 5 years for the application of the amount (provided for by Amendment 104) is extended by that prior period.
Amendment 107, page 69, line 8, at end insert—
“( ) See also paragraph 21 regarding the possibility, following a review, of extensions or variations to the period for which an anti-dumping amount or a countervailing amount applies to goods.”
This amendment is consequential on Amendment 105.
Amendment 108, page 70, line 12, leave out from “that” to end of line 17 and insert
“it is not in the public interest to accept it.
‘(2A) In considering that, the Secretary of State must accept the TRA’s determination that the application of an anti-dumping amount or a countervailing amount to goods in accordance with the recommendation meets the economic interest test (see paragraph 25), unless the Secretary of State is satisfied that the determination is not one that the TRA could reasonably have made.”
See the explanatory statement for Amendment 103.
Amendment 109, page 72, line 11, leave out
“5 year period referred to in paragraph 18(2)(b)”
and insert
“period referred to in paragraph 18(2)(a)”.
This amendment is consequential on Amendments 104 and 105.
Amendment 110, page 75, line 28, at end insert—
“(zi) the injury caused by the dumping of the goods, or the importation of the subsidised goods, to a UK industry in the goods and the benefits to that UK industry in removing that injury,”
Paragraph 25(4)(a) of Schedule 4 lists certain matters which the TRA and the Secretary of State must take account of, so far as relevant, when deciding whether the application of an anti-dumping or anti-subsidy remedy is not in the economic interest of the UK. Amendment 110 inserts an express reference in that list to the injury caused by the dumping of the goods or the subsidised imports to a UK industry in the goods and of the benefits to that industry in removing that injury.
Amendment 111, page 76, line 9, at end insert—
“(zi) the UK industry referred to in sub-paragraph (4)(a)(zi) and other producers of goods,”
Amendments 111 and 112 make clear that the references to “affected industries” in paragraph 25 of Schedule 4 continue to include the injured UK industry referred to in Amendment 110.
Amendment 112, page 76, line 10, leave out “producers and”.—(Mel Stride.)
See the explanatory statement for Amendment 111.
Schedule 5
Increase in imports causing serious injury to UK producers
Amendments made: 113, page 81, line 32, after “plan” insert
“or the TRA waives the requirement for the application to be accompanied by such a plan”.
This amendment enables the TRA to waive the requirement for an application for the initiation of a safeguarding investigation to be accompanied by a preliminary adjustment plan.
Amendment 85, page 84, line 12, leave out from “goods” to end of line 14 and insert
“or to specified relevant goods;
(b) that all the relevant goods, or specified relevant goods, should be subject to a quota for a specified period during which a lower rate of import duty should be applicable to imports of goods within the amount of the quota than is applicable to imports of goods outside the amount of the quota (referred to in this Schedule as a ‘provisional tariff rate quota’).
(3A) Where the TRA makes a recommendation under sub-paragraph (3)(a) in relation to relevant goods it must, as part of the recommendation, recommend to the Secretary of State how a provisional safeguarding amount applicable to those goods should be determined.”
This amendment enables the TRA, where it makes a provisional affirmative determination during a safeguarding investigation, to recommend that goods be made subject to a provisional tariff rate quota as an alternative to recommending that a provisional safeguarding amount be applied to the goods.
Amendment 86, page 84, line 16, leave out
“the application of a provisional safeguarding amount”
and insert
“applying a provisional safeguarding amount to relevant goods, or making relevant goods subject to a provisional tariff rate quota,”.
This amendment is consequential on Amendment 85.
Amendment 87, page 84, line 22, leave out sub-paragraph (5) and insert—
“(5) The TRA may only make a recommendation under one or other of paragraphs (a) and (b) of sub-paragraph (3) in relation to any particular relevant good.
(5A) The TRA may make a recommendation under paragraph (a) or (b) of sub-paragraph (3) in relation to specified relevant goods (rather than all the relevant goods) only if the recommendations which it makes under that sub-paragraph, when taken together, cover all the relevant goods.
(5B) If the TRA determines that there are one or more recommendations which it could make under sub-paragraph (3) in relation to all the relevant goods, or that there are one or more recommendations which it could make under sub-paragraph (3) in relation to specified relevant goods, it must make that recommendation or one of those recommendations (subject to sub-paragraphs (5) and (5A)).”
This amendment is consequential on Amendment 85. It has the effect that the TRA may recommend that goods in relation to which a provisional affirmative determination is made should be subject either to a provisional safeguarding amount or a provisional tariff rate quota, but not both, although some of the goods may be subject to one type of provisional remedy whilst the rest are subject to the other type of remedy.
Amendment 88, page 84, line 35, leave out “11(3)” and insert “11(3)(a)”.
This amendment is consequential on Amendment 85.
Amendment 89, page 84, line 41, leave out
“The recommendation referred to in paragraph 11(3)(b)”
and insert
“A recommendation under paragraph 11(3)(a)”.
This amendment is consequential on Amendment 85.
Amendment 90, page 84, line 42, at end insert “(see paragraph 11(3A))”.
This amendment is consequential on Amendment 85.
Amendment 91, page 85, line 11, leave out “11(3)” and insert “11(3)(a)”.
This amendment is consequential on Amendment 85.
Amendment 92, page 85, line 12, at end insert—
“TRA’s recommendations regarding provisional tariff rate quotas
12A (1) This paragraph applies to a recommendation by the TRA under paragraph 11(3)(b) in relation to goods.
(2) The specified period referred to in paragraph 11(3)(b)—
(a) must not exceed 200 days, and
(b) if the recommendation is accepted by the Secretary of State, must begin on the day after the date of publication of the public notice under section 13 giving effect to the recommendation.
(3) The recommendation must (in addition to the specified period) include—
(a) the TRA’s recommendation regarding—
(i) the amount of the quota,
(ii) how the quota should be allocated, and
(iii) the rates of import duty that should be applied to goods subject to the quota, and
(b) such other content as regulations may require.
(4) The TRA must consult the Secretary of State before making a recommendation regarding the allocation of the quota.
(5) The things recommended by the TRA by virtue of sub-paragraph (3)(a) must be such as the TRA is satisfied are necessary to prevent serious injury which it would be difficult to repair from being caused during the investigation to UK producers of the goods.
(6) Regulations may make provision for the purposes of sub-paragraph (5) about how the things which the TRA is satisfied are necessary to prevent the serious injury described in that provision are to be determined.”
This amendment makes provision about the content of a TRA recommendation that goods should be subject to a provisional tariff rate quota. See the explanatory statement to Amendment 85 concerning the making of such a recommendation.
Amendment 93, page 85, line 14, leave out “11(3)” and insert “11(3)(a)”.
This amendment is consequential on Amendment 85.
Amendment 94, page 85, line 37, leave out sub-paragraph (5).
This amendment is consequential on Amendment 85.
Amendment 95, page 85, line 40, leave out
“of a provisional remedy in respect of goods”
and insert
“for which a provisional safeguarding amount applies to goods”.
This amendment is consequential on Amendment 85.
Amendment 96, page 85, line 42, at end insert—
“Secretary of State’s power to subject goods to a provisional tariff rate quota
13A (1) If the TRA makes a recommendation under paragraph 11(3)(b), the Secretary of State must decide whether to accept or reject the recommendation.
(2) The Secretary of State may reject the recommendation only if the Secretary of State is satisfied that—
(a) making goods subject to a provisional tariff rate quota in accordance with the recommendation does not meet the economic interest test (see paragraph 21), or
(b) it is not otherwise in the public interest to accept the recommendation.
(3) If the recommendation is rejected, the Secretary of State must—
(a) publish notice of the TRA’s provisional affirmative determination in relation to the goods, of the recommendation and of the rejection of it,
(b) notify interested parties (see paragraph 29(3)) accordingly, and
(c) lay a statement before the House of Commons setting out the reasons for rejecting the recommendation.
(4) If the recommendation is accepted, the Secretary of State—
(a) must publish notice of the TRA’s provisional affirmative determination in relation to the goods, of the recommendation and of the acceptance of it,
(b) must notify interested parties accordingly, and
(c) is required under section 13 to make provision by public notice to give effect to the recommendation.
(5) The period for which goods are subject to a provisional tariff rate quota ceases (if it has not already expired) when the safeguarding investigation in relation to the goods terminates.”
This amendment makes provision about what the Secretary of State is to do if the TRA recommends that goods should be subject to a provisional tariff rate quota. See the explanatory statement to Amendment 85 concerning the making of such a recommendation.
Amendment 114, page 86, line 32, at end insert—
“( ) But sub-paragraph (5) is to be read as if paragraph (b) were omitted if the TRA waived the requirement for the application to initiate a safeguarding investigation in relation to the relevant goods to be accompanied by a preliminary adjustment plan.”
Paragraph 14(5)(b) of Schedule 5 to the Bill requires the TRA to be satisfied that an adjustment plan is in place before recommending to the Secretary of State, following the making of a final affirmative determination in a safeguarding investigation, that a definitive safeguarding amount should be applied or a tariff rate quota imposed. This amendment disapplies the paragraph 14(5)(b) requirement in cases where the requirement to provide a preliminary adjustment plan was waived at the point when the application was being made for the initiation of a safeguarding investigation.
Amendment 97, page 88, leave out lines 1 to 13 and insert—
“(7) If a provisional safeguarding remedy has been applied to some or all of the goods as part of the same safeguarding investigation, sub-paragraph (8) applies for the purposes of sub-paragraphs (2)(b) and (4)(b).
(8) The length of the specified period referred to in paragraph 14(3)(a), so far as relating to goods to which a provisional safeguarding remedy has been applied, is to be treated as extended by the length of the specified period for which the TRA recommended that a provisional safeguarding remedy should be applied to them.
(9) Where the application of sub-paragraph (8) results in the length of the specified period referred to in paragraph 14(3)(a), so far as relating to goods to which a provisional safeguarding remedy has been applied, exceeding 1 year, sub-paragraph (4)(b) is to be read as if references to goods were references to the goods to which the provisional safeguarding remedy has been applied.
(10) In this paragraph, references to the application of a provisional safeguarding remedy are to—
(a) applying a provisional safeguarding amount to goods, or
(b) making goods subject to a provisional tariff rate quota.”
This amendment is consequential on Amendment 85. It explains what effect the period of a provisional tariff rate quota is to have where the TRA later recommends the application of a definitive safeguarding amount. The amendment also incorporates the existing provision about the effect of the period of a provisional safeguarding amount.
Amendment 98, page 89, leave out lines 6 to 18 and insert—
“(7) If a provisional safeguarding remedy has been applied to some or all of the goods as part of the same safeguarding investigation, sub-paragraph (8) applies for the purposes of sub-paragraphs (2)(b) and (5)(b).
(8) The length of the specified period referred to in paragraph 14(3)(b), so far as relating to goods to which a provisional safeguarding remedy has been applied, is to be treated as extended by the length of the specified period for which the TRA recommended that a provisional safeguarding remedy should be applied to them.
(9) Where the application of sub-paragraph (8) results in the length of the specified period referred to in paragraph 14(3)(b), so far as relating to goods to which a provisional safeguarding remedy has been applied, exceeding 1 year, sub-paragraph (5)(b) is to be read as if references to goods were references to the goods to which the provisional safeguarding remedy has been applied.
(10) In this paragraph, references to the application of a provisional safeguarding remedy are to—
(a) applying a provisional safeguarding amount to goods, or
(b) making goods subject to a provisional tariff rate quota.”
This amendment is consequential on Amendment 85. It explains what effect the period of a provisional tariff rate quota is to have where the TRA later recommends that goods be subject to a tariff rate quota. The amendment also incorporates the existing provision about the effect of the period of a provisional safeguarding amount.
Amendment 115, page 91, line 8, leave out “the adjustment plan” and insert “an adjustment plan as”.
This amendment is consequential on Amendment 114.
Amendment 116, page 93, line 27, at end insert—
“(zi) the serious injury caused by the importation of the goods in increased quantities to UK producers of those goods and the benefits to those UK producers in removing that injury,”
Paragraph 21(3)(a) of Schedule 5 lists certain matters which the TRA and the Secretary of State must take account of, so far as relevant, when deciding whether the application of a safeguarding remedy is in the economic interest of the UK. Amendment 116 inserts an express reference in that list to the serious injury caused by the importation of the goods in increased quantities to UK producers of the goods and of the benefits to those producers in removing that injury.
Amendment 99, page 93, line 43, after “a” insert
“provisional tariff rate quota or a”.
This amendment is consequential on Amendment 85.
Amendment 117, page 94, line 1, at end insert—
“(zi) the UK producers referred to in sub-paragraph (3)(a)(zi) and other producers of goods,”.
Amendments 117 and 118 make clear that the references to “affected industries” in paragraph 21 of Schedule 5 continue to include the injured UK producers referred to in Amendment 116.
Amendment 118, page 94, line 2, leave out “producers and”.
See the explanatory statement for Amendment 117.
Amendment 100, page 96, line 18, after “a” insert
“provisional tariff rate quota or a”.
This amendment is consequential on Amendment 85.
Amendment 101, page 97, leave out lines 24 and 25.
This amendment is consequential on Amendment 85.
Amendment 102, page 97, line 29, at end insert—
“‘provisional tariff rate quota’ has the meaning given by paragraph 11(3)(b);”.—(Mel Stride.)
This amendment is consequential on Amendment 85.
Schedule 8
VAT amendments connected with withdrawal from EU
Amendment proposed: 73, page 135, leave out paragraph 14.—(Craig Mackinlay.)
Question put, That the amendment be made.