(5 years, 4 months ago)
Commons ChamberAs I mentioned in answer to the previous question, we are conducting a number of joint trade reviews with India, China and Brazil—some of the largest economies in the world—to ensure that we address some of these access barriers; to ensure that, for example, Chinese-language contracts are translated into an official English version; to ensure that service providers understand what the rules and regulations are; and to ensure that qualifications are matched across the piece. There is a great deal we can do and more that we will do.
I welcome what the Minister said about trying to open up overseas access to UK service companies. However, is it not hugely disappointing that the continuity agreements with Norway and Switzerland exclude trade in services? Is it not the case that if, post Brexit, we revert to WTO rules trade with the EU, we would see a massive 26% fall in global service trade, with just as bad a fall in the UK’s service trade even if we get that free trade agreement?
As we approach the negotiations with the EU on the future economic partnership, services will play a large part in that. We have signed mutual recognition agreements with Australia and New Zealand, and as for the Norway and Switzerland deals, we should never forget that 35% of pretty much all the goods contracts entered into by the UK is contained within services value. This is not just a matter of pure services, but of goods as well.
(5 years, 7 months ago)
Commons ChamberIt is complete chaos. It is ridiculous that businesses are having to prepare for a no deal because the Government continue to hold it over us, which is why Members on both sides of the House have signed a letter saying that a no-deal scenario is completely unacceptable. As has been said previously, opposition to no deal is one of the few things on which there is a majority in this House.
On the subject of free trade agreements, and on the subject of fantasy economics, the Government’s paper on the deal scenario, the no-deal scenario and the analysis of Brexit costs talks about the potential for signing free trade agreements with the US, Australia, New Zealand, Malaysia, Brunei, China, India, Brazil, Argentina, Paraguay, Uruguay, the UAE, Saudi Arabia, Oman, Qatar, Kuwait and Bahrain, plus rolling over all the FTAs on their current terms. The paper says that all the new free trade agreements will be signed on the basis of there being zero tariffs on everything in the scenarios that were modelled, and of all the FTAs being rolled over despite the bizarre assumptions that no sensible person would think are ever likely to happen. We are not going to have a free trade agreement with India with zero tariffs on everything within 15 years. That is absolutely not going to happen.
Despite all those bizarre assumptions, the UK Government still predict that our trade reduction will be 2.2%. So despite the most ambitious assumptions possible, which no realistic person would think could even vaguely happen, the Government still predict that our trade reduction will be 2.2% of GDP. I do not know how anyone who supports Brexit could stand up and say that we will benefit from increased international trade when it is absolutely clear that we will not, even in the best possible scenario.
One of the things that the Secretary of State for International Trade is very good at is talking about the increase in our trade with countries like South Korea, with which we trade through the EU’s free trade agreement.
My hon. Friend is making an excellent speech on the perils. I wonder whether the Chancellor would agree with a huge amount of what she says. It strikes me that the Scottish Government have outlined their economic analysis of what will happen, yet the UK Government have tried to keep theirs secret. Does my hon. Friend have any thoughts on why that is the case?
I think the UK Government are trying to say as little as possible about the economic analysis because they know that Brexit will damage the economy.
I am specifically focusing on the economy, but I will talk about other things in a few moments. Investors have pulled $1.01 trillion out of UK equity funds since the 2016 referendum. That is an eye-wateringly large figure, and it comes as a direct result of the referendum according to Emerging Portfolio Fund Research, a data provider.
The Scottish Government have said that our GDP would be £9 billion lower under a free trade agreement—that is not under a no-deal scenario—than if we stayed in the EU. Amazingly, the figure is significantly more than even the most Unionist of commentators said that independence would cost the Scottish people. We are stuck with the UK, which is making terrible decisions and cutting more off our GDP than even those least in favour of independence said that independence would cut from our GDP.
(6 years, 2 months ago)
Commons ChamberMy hon. Friend, as usual, raises interesting points. He is completely correct that a tit-for-tat dispute will help nobody. The United States has already seen an increase in the domestic price for steel. That means that input prices in the US are likely to rise, its output prices will ultimately rise and it will become less competitive, which is not an answer to its current trade predicament. When it comes to the position of the United Kingdom, had we been given an exemption by the US, we would still have been required to carry forward any counter- measures proposed and implemented by the European Union, but if we had implemented countermeasures without any measures actually having been applied to the United Kingdom, we would have been in breach of WTO law. It is a Catch-22.
In spite of what the International Trade Secretary says, so much for the special relationship and the special treatment that the Government were seeking from President Trump. Coming hard on the heels of the weekend’s report that the Government are preparing for a Brexit armageddon, the chickens are truly coming home to roost for Brexiteers, who have had years to prepare for their big moment. But this has an impact on all of us, and the Scottish Government were left to secure steelworks in Lanarkshire. Will the Secretary of State tell us what discussions he has had with the Scottish Government and the industry in Scotland? His statement shows just how important the European Union is in these matters. Does it not make more sense to remain close to those who are closest to us economically and politically in Europe, and stay part of the customs union?
The answer to the hon. Gentleman’s last question is no. The Minister for Trade Policy has been in touch with the Scottish Government in the past few days to discuss the wider impacts on the industry. I have made it very clear that we regard this as a UK-wide issue. The UK Government will take whatever measures are required, including safeguarding, to protect the whole UK steel industry.
(6 years, 5 months ago)
Commons ChamberI add the Scottish National party’s welcome to our colleagues and friends from Afghanistan.
Here we are with yet another European Union debate. I was elected almost three years ago. After I was appointed Europe spokesperson, the European Union Referendum Bill was introduced. Europe has dominated my time here, but that is because it is important. Almost three years on, I think it is fairly safe to say that things are not going terribly well for the Government.
The EU has brought us a huge number of benefits. I am somebody who has enjoyed some of those benefits through education, which we can access regardless of our backgrounds and our financial means, and through freedom of movement, from which not only do we benefit, because we can work and live throughout the EU, but our economy benefits, because of the people coming to the United Kingdom to live and work.
The hon. Member for East Renfrewshire (Paul Masterton) was right in the preceding speech to highlight some of the difficulties faced by financial services in his constituency. In my constituency, I am regularly approached about issues on which we still do not have an answer, such as seasonal workers and the food and drink industry, which relies so heavily on seasonal workers and freedom of movement. We have had no clear answers from the Government.
All that is important right now, because some farmers have told me about a decline in the numbers of seasonal workers. What does that mean for crops that are planted in advance for the following years, many of which need to be taken in by hand? Business decisions for after we have left the EU need to be made now. There is precious little certainty and precious little decision making going on about what is going to happen after 29 March next year and, crucially, in the harvest period after that. The tourist sector also relies heavily on seasonal workers and freedom of movement.
I have just mentioned some of the benefits that EU membership brings to students. We must also reflect on the fact that our centres of education and research rely on the excellence that comes from their being able to tap into a pool of talent and the benefits of freedom of movement, as well as the benefits that are brought by Horizon 2020 and the other programmes that are so important.
The biggest employer in my constituency is the University of St Andrews, and a great deal of people who live locally work at the University of Dundee and Abertay University, and even at the University of Aberdeen and the University of Edinburgh. Education and research is a big industry and a big employer. Not only are those jobs important and not only are these learning establishments at which our young people and mature people can grow and increase their skills, thereby improving our economy, but the industry will benefit us in the years to come as we get those breakthroughs on things like dementia, dyslexia and helping kids to have a better educational experience through some of the research that has been done by EU nationals and through Horizon 2020.
The hon. Gentleman is making a compelling speech. Does he agree that it is extraordinary to see a Government so proudly leading the country into a situation in which we will all be so much poorer, not just economically but in the terms he describes—the richness of our relationships with other EU countries in our research establishments and elsewhere, which are so important? It is young people whose futures are being closed down in a most unforgivable way.
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—
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.
I salute the hon. Gentleman’s courage in bringing that up, but I am actually using his own Government’s figures.
I would like to make a little bit of progress, but I will come to the hon. Members in just a moment.
I am using this Government’s figures. We need to have a real and proper debate about how we plug the gaps in tax and in GDP.
The hon. Gentleman has obviously gone through a methodical process of working out the effect of Brexit on GDP. Has he worked out the effect on GDP of an empty Tory slogan?
Well, we have worked out the impact on the NHS and on education, and that will be devastating to our public services because of the empty promises that each and every one of us will pay for.
I will just make a little bit of progress.
I say gently to Government Members that there are serious issues around tax raised and GDP that we must all wrestle with in a serious manner, offering some suggestions, but right now the Government are not handling some of the big issues of the day. Time that is being taken up with this issue is strangling political debate. The strikes in our universities right now are crucial for all parties and we should all take them seriously; yet, as we look to a fair solution, this matter cannot be a priority because this Government are so consumed by Brexit and what is going on with leaving the European Union that other issues simply get ignored. Brexit strangles that proper and serious debate.
I do not want the impression to be given to this House that the recent figures published by the Exiting the European Union Committee were the same as the figures that were used pre-referendum. Two totally different economic models were used. It would be wrong for the record of this House to suggest that the figures used before the referendum were the same as the ones after.
I thank the hon. Lady for her intervention. I note the differences that I sometimes have with her, but she makes an honest point. I note the correction to those Members on her Benches who have been avoiding the figures from their own Government.
I welcome the remarks of the hon. Member for Greenwich and Woolwich (Matthew Pennycook) on the customs union, and I hope that he will go to the next step on the single market. I particularly note and am grateful for his remarks on Northern Ireland, because Northern Ireland is one area that has been overlooked. The danger to the peace process is not something that any of us should take lightly, regardless of the views of different Members across this House. We have to take it seriously.
I know that my hon. Friends will talk about the continuity Bill in Holyrood, where we find the Conservatives utterly isolated in their latest power grab. When challenged, they say that we have to choose between the UK and the EU. That is nonsense and highlights the utter isolationism that sits at the hearts of many—not all—Government Members who reach out for this “ourselves alone” approach.
We need to start looking at where we can make progress. I have seen one silver lining in this House, for which I pay credit to Members from across the parties. I am seeing—from my short experience, I will admit—Members from across the House seeking to work together better than they have done before. It is not always easy, but Members are trying to put their differences aside and to find a way through. I salute a number of Members who have been able to do this.
Let me offer my own suggestion. Scotland voted to remain part of the European Union, as has been noted by Members in this House and by Members of Parliament from across the European Union. I suggest that bridges need to be built with our European partners economically. Whether we like it or not, this has been a shock to the system. It is really important. We need to build our economic ties. We would like to see support for immigration. If we can keep the Environment Secretary to his promises on immigration, that will be a good start. Scotland stands ready to try to rebuild those ties. Our economic ties with the rest of the United Kingdom are obviously important, but those with the single market and the rest of the European Union are crucial as well. I appeal to Members: look at your own statistics, look at the damage that is being done, and reach out to the devolved Administrations and to other Governments. This will hit our public services. We see people switching off with regard to this debate, but they will not switch off when it comes to a hit to the NHS in terms of personnel and cash, and a hit to education and other services. We have asymmetrical devolution in the United Kingdom; we should use it.
As my hon. Friend the Member for Glasgow Central (Alison Thewliss) pointed out, it is International Ask a Question Day. My question to Government Members is: do you know what you are doing and are you aware of the devastating damage you are doing?
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.
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.
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?
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.
(7 years, 8 months ago)
Commons ChamberSuperfast broadband is now available to over 90% of homes and businesses in the UK—up from 45% in 2010—and is on track to reach 95% by the end of 2017. After that, we are bringing in a universal service obligation in the Digital Economy Bill.
The Minister will be aware that rural communities such as those in North East Fife, and small businesses in particular, rely on broadband, and there are concerns that the current plans do not go far enough. Are there any plans to extend them further so that we can get faster speeds in rural communities?
Yes. The plan to bring in a universal service obligation means just that: it is about making sure that superfast broadband is available to all. If the SNP joined us in the Lobby to support the Digital Economy Bill, which is currently passing through its remaining stages in the other place, we would be very grateful.