European Union (Notification of Withdrawal) Bill

Suella Braverman Excerpts

3rd reading: House of Commons & Committee: 3rd sitting: House of Commons & Report stage: House of Commons
Wednesday 8th February 2017 Commons Chamber

[Suella Fernandes]

I am pleased to follow the hon. Member for Birmingham, Yardley (Jess Phillips), who speaks with passion about her cause and argues for women with much persuasion. I gently point out that only when the Labour party can claim to have elected its second lady Prime Minister can it preach to Conservatives on how to support women. I rise to speak against the entirety of the proposals tabled by Opposition Members, but particularly against the references to trade with the European Union and the rest of the world in new clauses 2, 11, 77 and 181.

I have two key points, the first of which is on trade. I am struck by the premise in the wording of, for example, new clause 181 on trade agreements, which calls on the Government to

“have regard to the value of UK membership of the EU Customs Union in maintaining tariff and barrier-free trade with the EU.”

The new clause is wrong for several reasons. It is totally misguided, and a misreading of what the British people voted for on 23 June. If we

“have regard to the value”

of the customs union, we are missing the point. Where is the call to have regard to the costs of UK membership of the EU customs union? Why does the new clause not refer to the reasons why Britain must leave the customs union, and what we stand to gain? There is simply no point to Brexit and no meaning to the result of the referendum if we do not leave the EU customs union.

Where is the acknowledgment of the restrictions and costs of the common commercial policy inherent in our membership of the EU customs union? The new clause and all those containing that reference to trade are one-sided, prejudge, and lack any objectivity or impartiality. Where is the reference to, or acknowledgment of, the simple fact that Britain can set her own rules on trade policy, and forge new and dynamic agreements with the rest of the world, only if she leaves the EU customs union? Where is the reference to the gains we stand to make by striking new trade deals with the rest of the world? The Legatum Institute special trade commission estimates a 50% increase in global world products over 15 years.

I am concerned that there is no impact assessment of the damaging effect of the EU’s trade agreements on developing countries, or of the common external tariff, which binds members of the customs union.

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

The hon. Lady is commenting on a proposal that is in my name and the name of three other Select Committee Chairs. Is she aware of the evidence given to the Home Affairs Committee by a series of hauliers, ports and so on? They said that if their goods from the EU were subject to the type of customs checks to which goods from outside the EU are subject, there could be delays of between one and three days.

[Suella Fernandes]

The right hon. Lady needs to do her research before she makes points like that. If she had attended the meeting I had with experienced trade negotiators just two days ago—they are part of the special trade commission and have led trade deals on behalf of other countries—she would know that they say that the rules to which she refers are already part of free trade agreements around the world. The problems she highlights are being blown out of all proportion, given the reality of what we stand to gain from leaving the customs union.

[Mr Baker]

My hon. Friend makes her point with typical force. At our last Treasury Committee meeting, we heard from the director of customs at Her Majesty’s Revenue and Customs, who pointed out repeatedly that 96% of customs clearance, where required, takes place electronically within a few seconds and requires no intervention.

[Suella Fernandes]

That is exactly the point that needs to be made. Where is the amendment making that point?

[Charlie Elphicke]

My hon. Friend is making a typically powerful case. As the Member of Parliament who represents Dover and Deal, where this issue will have the greatest impact, I have put together a group to look at it. It is perfectly possible to build a frictionless border, using the latest technology. The Opposition want it to fail; we will make it succeed.

[Suella Fernandes]

I could not agree more with the point that my hon. Friend makes.

[Helen Goodman]

The hon. Lady says that we are not interested in an unbiased assessment. Had she been here yesterday, she would have seen new clause 43, which sought an even-handed impact assessment. Why cannot she read the amendment paper before making her wild assertions?

[Suella Fernandes]

We can all see that the amendments are an attempt to pull the wool over the British people’s eyes and fob us all off, and I will have nothing whatever to do with them.

EU protectionism has placed farmers and workers in developing countries at a disadvantage when exporting to the EU, because of the common external tariff. Why should British consumers be denied cheaper sugar, wheat or tomatoes from developing nations to protect less efficient farmers in northern Europe? That is the effect of the common external tariff, and the effect on our consumers of our membership of the EU customs union.

[Chris Green]

Does my hon. Friend share my concern that it is perverse that the external tariffs impoverish third-world nations, and that we then hand money over through the Department for International Development to try to raise their standards?

[Suella Fernandes]

The absurdity of the current position is astonishing. We will be able to remedy that injustice only by leaving the customs union, taking control of our trade policy, having trade deals on a fairer basis and being real promoters of fair trade for those countries.

[Angela Smith]

Will the hon. Lady give way?

[Suella Fernandes]

I will not, because I have taken quite a few interventions and I want to make progress.

Business for Britain has estimated the cost to British consumers of the damage done by the common commercial policy and the customs union at some £500 per household. The amendments do not reflect the absurdity of the current position. British companies such as JCB are no more able to sell their machinery tariff-free from India to the UK than Tata can from the UK to India. Since 1973, Britain’s trade has pivoted from being global to being European, and that has all been negotiated on our behalf by the European Trade Commissioner. Why is there no amendment recognising the influence to be regained by Britain resuming its own seat at the World Trade Organisation? Why is there no reference to the fact that EU trade policy has wrecked the ports of Glasgow and Liverpool, which are on the “wrong” side of the country, and denied us any chance of determining our own trade policy? That is a reflection of the one-sided prejudice in, and misguided nature of, the amendments.

The amendments fail to point out that in 2015, the UK’s deficit in trade in goods and services with the EU was £69 billion, while the surplus with non-EU countries was £30 billion. Why is there no amendment asking for an impact assessment on the gains from trading more widely and more freely with the rest of the world, building on our surplus with countries outside the EU? The amendments do not reflect the fact that Britain is losing out now because of our membership of the customs union, and they miss the fact that we have more to gain by leaving. They omit those salient features because Opposition Members do not want to be honest about the fact that the EU still does not have any agreements with major nations such as Brazil, the USA or China, and that we have more to gain from increasing our exports to the rest of the world than by remaining a member of the customs union.

My second-to-last point is on EU nationals. I consider the Prime Minister’s position appropriate in the circumstances: she will guarantee the position of approximately 3.5 million EU nationals as soon as possible once the negotiations have started. I want to ensure that this issue is put in perspective. Of the 3.5 million EU nationals currently residing in the UK, approximately 64% already have the right to stay here, 8% are children with an EU national parent and therefore have a right to reside here, and 12% will have accrued their five years permanent residency by 2018. This means that 84% already have a secure immigration status in this country. We are talking about a minority of people.

[Sir Edward Leigh (Gainsborough) (Con)]

Let us be practical. We cannot even deport convicted criminals. The truth is that not a single EU national will ever be deported.

[Suella Fernandes]

I agree wholeheartedly. That course of action would go against any idea of natural justice, legitimate expectation and the rule of law.

[Stephen Gethins (North East Fife) (SNP)]

If that is the case and we have certainty for EU nationals, will the hon. Lady join us in voting for new clause 27 tonight?

[Suella Fernandes]

I will not be voting with the Opposition. I am very content with the Government’s position on EU nationals.

[Simon Hoare (North Dorset) (Con)]

Does my hon. Friend share my concern and disappointment that while EU Governments could have sorted this out already, some have put the brakes on and have refused to do so? We should be putting pressure on them to sort out this very important issue much, much earlier, and outside the renegotiation process.

[Suella Fernandes]

I could not agree more. I see my hon. Friend the Member for Mid Dorset and North Poole (Michael Tomlinson) is in his place; I recall the letter he sent to Donald Tusk on this very issue.

[Michael Tomlinson]

Was my hon. Friend not as disappointed as I was by the response to that letter, which signally failed to grasp the nettle? This could all have been resolved before Christmas, on 15 December. The answer then was no; it should have been yes.

[Suella Fernandes]

That reflects the wisdom of the current position. We must safeguard the rights of UK nationals abroad before making any move on this issue.

I was involved, with the right hon. Member for Birmingham, Edgbaston (Ms Stuart) and the hon. Member for Stretford and Urmston (Kate Green), in a cross-party study with the think-tank British Future. We made suggestions to the Government on how to regularise and deal practically with the legal position of the 3.5 million EU nationals in this country. There will be issues for the Government to deal with. For example, what should the cut-off date be? Our report recommended that the date after which the new rules should apply be the date when article 50 is triggered, at which point a legitimate expectation will have arisen in respect of new arrivals to the country. We felt that that struck the right balance between fairness and pragmatism.