Oral Answers to Questions

Suella Braverman Excerpts

Thursday 1st February 2018 Commons Chamber

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

2. What recent assessment he has made of the effect of the UK leaving the EU customs union on the economy.

[The Parliamentary Under-Secretary of State for Exiting the European Union (Suella Fernandes)]

The Government conduct an extremely broad range of work on EU exit issues and will continue to do so, which means that all decisions, including those on the EU customs union, are supported by many analyses. Leaving the customs union liberates the UK to establish new and fruitful trade deals with the rest of the world, as well as pursuing a new trading relationship with the EU that retains as frictionless a trade as possible in goods.

[Mrs Emma Lewell-Buck]

From that answer, it is clear that no assessment has been made. We have had it confirmed again this week that the north-east retail and manufacturing sector will be hardest hit in all scenarios. It is clear—is it not?—that nearly 200,000 workers in my region who work in these sectors are facing grim futures because of this Government’s inability to get their act together.

[Suella Fernandes]

One advantage—although there are many—of leaving the customs union is that Britain can be a champion for global free trade again for the first time in 40 years. Free trade through mutually beneficial partnerships has historically ushered in productivity, innovation, consumer choice, growth and prosperity—something I hope that the hon. Lady will encourage.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

I very warmly welcome my hon. Friend to her place. It is great to see a ray of sunshine, optimism and positivity from the Front Bench. What a shame that we do not see the same from the Opposition Benches. Is she surprised, as I am, that we are still discussing the customs union? The EU has ruled it out. The Prime Minister has ruled it out. The Leader of the Opposition—if not quite the shadow Secretary of State—has ruled it out. Why are we still talking about it?

[Suella Fernandes]

My hon. Friend raises a very prescient point. The British people voted to leave the EU in their historic decision in 2016. In doing so, they instructed this Parliament to take us out of the EU customs union. That is exactly what the Prime Minister and this Government are doing.

[Nick Smith (Blaenau Gwent) (Lab)]

Blaenau Gwent has just been boosted by the arrival of the car company, TVR. Does the Minister agree that we need a customs union with the European Union for such ventures to survive and thrive?

[Suella Fernandes]

The UK is the second largest market for cars in Europe, so it is clearly in both our interests to continue this partnership between our industries. Is it not encouraging that companies such as Jaguar Land Rover, Nissan, Toyota and McLaren have made significant investment decisions in the UK since the referendum? I am committed, with this Government, to ensuring as frictionless trade as possible, so that we can continue this fruitful arrangement and support this vital sector of our economy.

[Tom Brake (Carshalton and Wallington) (LD)]

It may be that the Minister is not aware that, in fact, car production went down for the first time since 2009 and that investment in the industry has also gone down by £500 million. When will the Government confirm exactly what their plans are in relation to the customs union, so that companies that manufacture here know that their components can get safely into the United Kingdom and not get stuck in a traffic jam at Calais?

[Suella Fernandes]

We are seeing a rise in manufacturing and in exports, and UK foreign direct investment is at a record high. The economy is doing very well, and there have been encouraging signs and votes of confidence in the UK economy since Brexit. As we enter the next phase of the negotiations, we want to ensure that the automotive sector benefits from any arrangement. That will be a priority for the Government.

[Peter Grant (Glenrothes) (SNP)]

We now know—no thanks to the Government—that all the analysis that the Government have done to date shows that Brexit is bad news. We know that the Prime Minister was shown that analysis a few days ago, and we know that the first thing she did was to jump on a plane to China. Will the Minister confirm the accuracy of the reports yesterday that the Government’s analysis also shows that their obsession with cutting EU migration will be seriously bad for the British economy?

[Suella Fernandes]

We are in the middle of the negotiations, but when it comes to migration, it is clear that the UK will be committed to designing its own immigration policy, which is determined by skills, talent and brains. That is what will drive our economy forward, and that is what will create jobs and growth.

[Peter Grant]

My question was whether yesterday’s report was correct. I take it from the Minister’s attempt to dodge the question that that report, like the previous ones, was entirely accurate. Given that the Government’s own analysis shows that leaving the European Union is bad news, leaving the customs union is bad news and leaving the single market is bad news—and now that we know that cutting immigration from the European Union is bad news—do the Government have any plans, at any time before Brexit day, to adopt a strategy that is based on facts and evidence, rather than on blind ideology?

[Suella Fernandes]

The document to which the hon. Gentleman refers is not Government policy. It comes with significant caveats and is limited in nature. It is clear that there are significant benefits from our departure from the EU and the customs union. First, we have the chance to pursue our independent global trade policy and foster growing economic ties with fast-growing economies for the first time in 40 years. Secondly, we will be free from the common external tariff, which could lead to a drop in consumer prices for British citizens. Lastly, we have the golden opportunity to build a new customs arrangement with the EU that is world-leading and enables prosperity, jobs and growth.

[Antoinette Sandbach (Eddisbury) (Con)]

3. What steps his Department is taking to plan for different outcomes in the negotiations on the UK leaving the EU.

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[Mark Pawsey (Rugby) (Con)]

6. What steps he is taking to ensure the Government engage with the international business community during negotiations for the UK to leave the EU.

[The Parliamentary Under-Secretary of State for Exiting the European Union (Suella Fernandes)]

Ministers from across the Government have carried out extensive engagement on EU exit, in both the UK and the EU, with businesses and industry bodies from all sectors of the economy. Those include international businesses with a footprint in the UK and British businesses with interests in the EU. The Prime Minister chairs a quarterly business advisory council to hear directly from senior business leaders on the key issues across EU exit and the wider economy.

[Mark Pawsey]

Coming from Coventry, which is the home of the UK motor industry, I have been delighted by the industry’s resurgence in recent years. Last year, however, it did see a fall in output of 3%, which was attributed by the Society of Motor Manufacturers and Traders to the need for clarity on Brexit transition. Given the importance of car manufacturing and its supply chain to the west midlands economy, what reassurance has the Minister been able to give the industry about the future relationship with our European partners?

[Suella Fernandes]

I, too, am delighted about the resurgence to which my hon. Friend refers. It is precisely because of such requests and the result of such engagement with businesses that the Government’s proposals for an implementation period—promising the clarity needed to plan ahead—have been welcomed by various sectors of our economy. We and the EU want to agree the detail of the implementation by the end of March, making good as swiftly as possible on our promise of certainty. We are seeking a bold and ambitious economic partnership with the EU, with the greatest possible tariff and barrier-free trade arrangement with our European neighbours.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Businesses that I speak to in the north-east tell me of international investments that have been put on hold while companies try to work out what kind of Brexit this Government are actually going for. They do not want to make that public, so will the Minister tell me how she is engaging with international business to assess the impact of that on our economy, and indeed—because I forget what the story is today—whether such an assessment is going on?

[Suella Fernandes]

I hope the hon. Lady listened to the Secretary of State’s very detailed presentation and speech on Friday in which he set out the terms of an implementation period and addressed exactly the issues that she raises now. The implementation period will provide a bridge and a platform for businesses to enable them to plan for the future, to give them the time that they need, and to enable them to plan on that basis for a prosperous future outside.

[Vicky Ford (Chelmsford) (Con)]

The services sector is of course the largest part of the British economy, and while the single market in services may not be complete, it is the deepest market in services anywhere on the globe. Will the Minister confirm that it is our intention that the full services sector will be included in our deep and special partnership?

[Suella Fernandes]

My hon. Friend brings to the House her experience of the European Parliament, which we all value. As 80% of the UK economy is services-based, it is absolutely vital that we incorporate provisions relating to services in any new arrangement with the EU.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

I was astonished to read in yesterday’s National Audit Office report on the equipment plan that the Ministry of Defence’s inability to hedge effectively against sterling fluctuations could cost up to £5 billion. Will the Minister advise us what DExEU is doing to support other Departments that are struggling with Brexit as they engage with the international community?

[Suella Fernandes]

As I have said, there is considerable engagement with the international business community. The Prime Minister herself chairs a business advisory council to hear directly from senior business leaders on key issues. On cross-departmental engagement, there is considerable work and engagement across all Whitehall Departments to prepare for all outcomes from these negotiations.

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[Bob Blackman (Harrow East) (Con)]

14. What assessment he has made of the effect of remaining in the EU customs union on the ability of the UK to seek free trade agreements with non-EU countries.

[The Parliamentary Under-Secretary of State for Exiting the European Union (Suella Fernandes)]

Remaining in the customs union would prevent the UK from striking new free trade deals and setting new tariffs on goods from countries outside the EU. By leaving the customs union and building a new customs arrangement with the EU, we will be able to forge new trade arrangements with our partners around the world while ensuring that trade in goods between the UK and the EU is as frictionless as possible.

[Mr Clarke]

One of the most exciting opportunities that will become available when we leave the customs union is that of establishing a free port at Teesport, as the Secretary of State and the Minister saw for themselves last week. Will the Minister confirm that the Government will give serious consideration to this excellent idea, which will put rocket boosters under my local economy?

[Suella Fernandes]

I thank my hon. Friend and the Mayor of Tees Valley for welcoming the Secretary of State and me to Teesport last Friday. My hon. Friend has been an indefatigable voice for his constituents since his election to Parliament last year. It was a pleasure to meet some of the 100 business representatives who were present when the Secretary of State made his speech last Friday. Teesport is an opportunity for global Britain, and a gateway to the world—an example of our forward-thinking, independent trade policy. When we leave the EU customs union, we will have the opportunity to create our own trading policy to benefit Teesport and other areas. I sincerely hope that the free port proposal on the table will be one of the options explored.

[Bob Blackman]

As my hon. Friend will know well, in Harrow, we have a thriving Indian diaspora, whose members are desperate to encourage trade between the UK and India. Will she ensure that, during the negotiations, they will not be held back from improving trade between India and the UK by artificial trade barriers between those countries?

[Suella Fernandes]

I pay tribute to my hon. Friend for his lifelong advocacy for the British Asian community, not least in the 1990s when he encouraged my mother to stand as a local councillor—you could say, Mr Speaker, that my hon. Friend is to blame for my being here today.

Leaving the EU offers us the opportunity to forge a new role for ourselves in the world. The Prime Minister’s first bilateral visit outside Europe was to India, which is very telling. It was encouraging that the Indian Finance Minister visited the UK for the year of culture launch in February last year. I am optimistic about the opportunities that leaving the customs union and the EU presents for UK-India relations.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Her Majesty’s Revenue and Customs is launching a new customs declaration service, which is due to go live in January 2019. Has it been designed to deal with the fourfold increase in customs declarations that will be required post Brexit?

[Suella Fernandes]

The customs infrastructure is going through the upgrade that the hon. Gentleman mentions, and that is on track and on target. I am looking forward to the opportunity to build on our customs regimes so that we have a customs and excise framework that sets the standard for the world.

[Ged Killen (Rutherglen and Hamilton West) (Lab/Co-op)]

9. Whether the Government plan to accept the EU’s guidelines for phase 2 of the negotiations for the UK leaving the EU.