Oral Answers to Questions

Suella Braverman Excerpts

Thursday 14th June 2018 Commons Chamber

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

The Department for Exiting the European Union is working with all Departments at both ministerial and official level to ensure that our preparations for exit from, and new partnership with, the EU are on track. We are committed to seeking the best possible deal for the United Kingdom—one that works for all the regions of the country, including the north-west. I was delighted to visit the region earlier this month, and meet local businesses to discuss their views on Brexit.

[Conor McGinn]

Despite the very positive work being done by organisations such as the St Helens chamber of commerce, the latest polling shows that confidence among businesses in the north-west has fallen by 22 points, to just 33%. I am intrigued to know to what the Minister attributes that; is it the fact that this Government’s chaotic and shambolic handling of negotiations means that there is a real anxiety among businesses that we will crash out of the single market with no deal?

[Suella Braverman]

I very strongly disagree with the hon. Gentleman’s analysis. During my visit to the north-west I was pleased to meet with thriving businesses that are looking forward to the economic opportunities flowing from Brexit, such as trading with an expanded global marketplace. Together with huge investment in the north-west, such as the Mersey Gateway bridge and the northern hub in Manchester, the port of Liverpool, for example, stands potentially to act as an expanded gateway for global trade. This week’s Office for National Statistics trade figures show that exports are rising—by 7% to the end of April—faster than imports. That is good news for ports like Liverpool, good news for the north-west region and good news for the country.

[Chris Davies (Brecon and Radnorshire) (Con)]

As well as the north-west, all other regions in the UK are important to the Union, including the devolved nations, so can my hon. Friend confirm that no area will be treated unfairly when we leave the EU?

[Suella Braverman]

Absolutely; the integrity of the United Kingdom is paramount as we pursue these negotiations. I am very encouraged by the Government’s commitment to securing a unique and mutually beneficial free trade agreement with the European Union that supports our businesses, our jobs and our economy.

[Ian Murray (Edinburgh South) (Lab)]

Given that all the analyses show that Scottish GDP would fall by 2.9% in the least-worst scenario of our staying in the single market and the customs union when we leave the EU, what GDP figure are the Government working towards with their current negotiating position?

[Suella Braverman]

Let us look globally: we have an economy that has increased output—those are the CBI’s figures—we have the OECD upgrading growth forecasts for this year and next, and we have the lowest net borrowing in over a decade. That is a very different picture from that suggested by the predictions that were made two years ago. Let us base our position on facts, not scaremongering about the future.

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[Henry Smith (Crawley) (Con)]

9. What assessment he has made of the potential effect of the UK remaining in the customs union on its ability to negotiate new free trade agreements throughout the world.

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

We have been clear that the UK will be leaving the EU’s customs union and the single market in March 2019. Only by leaving the customs union and establishing a new and ambitious customs arrangement with the EU will we be able to forge new trade relationships with our partners around the world. If the UK were to remain in the customs union, we would be unable to implement our own trade deals or to set our own tariffs. That would not give us control over our trade policy and it would not be respecting the referendum result.

[Robert Courts]

Any policy whereby Britain leaves the European Union but remains in the customs union would mean surrendering our trade policy to a third party, and would mean that we were required to open our markets to other countries without guaranteed reciprocal access to theirs. Does my hon. Friend agree that no independent, self-respecting nation could tolerate such a position?

[Suella Braverman]

I agree with my hon. Friend. A customs union creates an asymmetrical relationship. Turkey is an example of a country in a customs union with the EU but not in the customs union with the EU. The effect of that is that if the EU signs a free trade agreement with a third country—let us say, the US or Canada—goods from the US or Canada can enter Turkey tariff-free, but Turkish goods still face a tariff barrier in Canada or America, which puts Turkish businesses and exporters at a significant disadvantage. With free trade as the big prize for Brexit, Labour’s support for a customs union makes no sense at all.

[Rebecca Pow]

I do not know whether you are a cider drinker, Mr Speaker, but say the word Somerset and you inevitably think of cider. Last week I held an event for the cider industry trade, to which I invited all the cider makers from Somerset. There was a great deal of positivity and emphasis on the fact that we can grow in the world market when we leave Europe. Does my hon. Friend agree that yesterday’s decision will help us negotiate unfettered and that that will benefit our south-west industries?

[Suella Braverman]

I agree with my hon. Friend. You may well agree, Mr Speaker, that cider is a delicious drink and, if I may be so bold, like me you may have had many a joyous occasion, perhaps in your teenage or university days, where the memories were enhanced precisely because of the consumption of cider.

I am very pleased that companies, particularly in my hon. Friend’s constituency and her region, have a can-do attitude to Brexit and are looking forward to increased global trading opportunities. Brexit presents those opportunities, especially for the food and drink industry.

[Henry Smith]

When I have met elected representatives from places as far apart as Wellington and Washington, they have been very keen to do trade deals with the United Kingdom post-Brexit. Will the Minister confirm that that would not be possible if we remained part of the customs union?

[Suella Braverman]

Yes. Remaining in a customs union or the customs union with the EU would not be compatible with having a meaningful, independent trade policy. It would mean that we would have less control than we have now over our trading relationships with other countries. Neither leave nor remain voters would want that.

[Mr Speaker]

The hon. Lady has given an extremely clear and helpful answer, but the problem is that we have a lot of questions to get through and I want to accommodate colleagues. If all Ministers could be brief, that would be great.

[Phil Wilson (Sedgefield) (Lab)]

Car manufacturing in this country is world leading, but the president of the CBI has said that if we leave the customs union it would become extinct. What contingencies do the Government have to replace the 800,000 jobs affected, including the 30,000 jobs in the north-east of England?

[Suella Braverman]

I disagree with the hon. Gentleman’s description. The automotive sector is one of our great success stories and the Government will continue to support it. Just this April, Vauxhall announced an investment of more than £100 million in its UK plant, to build the next generation of Vivaro vans. We are seeing more and more success in the sector. We have to support that, and that will be an ambition of our future trade agreement with the EU.

[Kerry McCarthy (Bristol East) (Lab)]

As well as the motor sector, the food sector has expressed concern that rules of origin in the supply chain could have a real impact post-Brexit if we are not part of a customs union. What is the Department’s approach? Is it considering a broader definition of “local origin”? How else will it help those sectors deal with rules of origin post-Brexit?

[Suella Braverman]

The hon. Lady is right to highlight the issue of rules of origin with regard to the sector. We want to ensure as limited friction as possible, with a tariff-free arrangement for goods, so that we have the integrated supply chains that are vital to the success of the sector.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Will the Minister comment on the Foreign Secretary’s analysis that the Government’s EU negotiations are heading for “meltdown”? Is that not just another example of the chaos and division at the heart of Government?

[Suella Braverman]

I think that the hon. Lady’s interpretation is incorrect. The Government are making—[Interruption.] Let us look at the progress the Government have made. We have agreed an implementation period. Led by the Prime Minister, we secured agreement in December on EU citizens, and we are now in the phase of talking about the exciting future relationship with the European Union. I am looking forward to the opportunities and success that will be led by this Government, not the predictions of failure.

[Mr David Jones (Clwyd West) (Con)]

10. What preparations his Department is making for withdrawal from the EU without a deal.

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[Peter Aldous (Waveney) (Con)]

12. What steps he is taking to ensure that the Government engage with the international business community during negotiations on the UK leaving the EU.

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

The ministerial team undertakes regular engagements with the international business community, both in the UK and abroad. In addition to regular visits to Brussels the ministerial team has undertaken 27 trips across EU member states this year. That is supported by business engagement conducted by our embassies.

[Peter Aldous]

I am grateful to the Minister for her reply. Over the past 50 years, considerable expertise has been built up in the North sea energy sector, which has led to enormous global export opportunities. What steps are the Government taking to ensure that that continues after we leave the EU, with particular emphasis on the emerging offshore wind sector?

[Suella Braverman]

The UK has been an active member of the North sea’s energy co-operation initiative since 2010. The aim is to explore the most cost-effective way of developing offshore grid infrastructure to exploit the considerable renewable energy resources in the North and Irish seas. The UK brings significant experience and expertise to this co-operation. Working together with other countries through this initiative will enable us to maximise the considerable business opportunities in the emerging offshore wind sector.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

Business is getting more nervous as it watches the Government negotiating more with themselves than with the European Union. Can the Minister confirm that it is Government policy to ensure that there are no new impediments to trade for our world-leading service industries, such as financial services, education, the creative industries and others?

[Suella Braverman]

Considerable amounts of data have been released recently showing an increase in confidence in various sectors, whether it is retail, services, manufacturing or construction. We have to build on that, which is why the Government are committed to reducing barriers to trade to enable our businesses, our exporters, our manufacturers and our service sector to thrive outside the European Union.

[Martin Vickers (Cleethorpes) (Con)]

The Minister referred to the offshore wind sector. She visited my constituency, the port of Immingham and neighbouring Grimsby a couple of weeks ago. Does she agree that the facilities there for serving the offshore sector, and the wider trade deals that could follow Brexit, are greatly to the advantage of northern Lincolnshire?

[Suella Braverman]

I was delighted to visit the ports of Immingham and Grimsby at my hon. Friend’s invitation. I was very impressed by the energy estuary, which is located there, and by the wealth of experience and output. It is the energy powerhouse for our nation.

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

The Conservatives are already arguing about what promises were made, or not made, at the Dispatch Box on Tuesday night; the Cabinet cannot agree a position on the EU; and the Brexit Secretary threatens to resign every other week. What message does that send to the international business community?

[Suella Braverman]

Well, let us look at the facts. As I said, CBI data shows an increase in output generally, the OECD revised its forecasts upwards for this year and next, and there is record low unemployment throughout the country. Those are signs of an economy that is confident and optimistic about the future, not one such as the hon. Gentleman describes.

[Mr Speaker]

May I gently say that with ingenuity, the hon. Member for Banff and Buchan (David Duguid) could shoehorn in his question about fisheries policy, which is a matter of significant interest to the international business community? He is not obliged to do so, but we can happily give him a go.

[David Duguid (Banff and Buchan) (Con)]

18. Thank you for that, Mr Speaker. I understand that the Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Wycombe (Mr Baker), met the National Federation of Fishermen’s Organisations yesterday. Can he confirm today that he shares the ambition of the NFFO and the Scottish Fishermen’s Federation that when we leave the EU, we will have actual, as well as legal, authority over all fishing activities in UK waters, out to 200 nautical miles?

[Suella Braverman]

The Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Wycombe (Mr Baker), was pleased to meet the National Federation of Fishermen’s Organisations yesterday. He is keen to keep engaging with the sector. We have been absolutely clear that when we leave the EU, we will leave the common fisheries policy. Indeed, from 2020 we will be negotiating as an independent coastal state. Let me reassure my hon. Friend the Member for Banff and Buchan (David Duguid) that our plans for exit from the common fisheries policy are not affected by the backstop discussions.

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

13. What discussions he has had with Cabinet colleagues on the potential effect on local government funding of leaving the EU.

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

My Department continues to work closely with the Ministry of Housing, Communities and Local Government, and with other Departments across Government, to ensure that local government is prepared for the potential effects of EU exit. This work includes assessing any funding issues for local government.

[Luke Pollard]

Plymouth City Council’s new Labour council has established a Brexit scrutiny committee to look at the impacts of Brexit on vital public services. What conversations is your Department having directly with local authority leaders to help it to understand the impacts on the vital public services that many millions of people rely on?

[Mr Speaker]

I do not have a Department, but the Minister, fortunately, does.

[Suella Braverman]

Both the Secretary of State and I have met many local authority leaders around the country. We are keen to engage with them so that we understand their concerns about EU exit. Importantly, the UK will continue to participate in the 2014 to 2020 EU programmes until they close, and, thereafter, EU structural funding will be transferred through a UK shared prosperity fund. Comments from local authorities will be very well received.

[Mr Philip Hollobone (Kettering) (Con)]

rose—

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[Wera Hobhouse (Bath) (LD)]

T3. Most British manufacturing businesses, including businesses in my own constituency in Bath, are part of complex European supply chains. Why does the Minister think that leaving the customs union and the single market—she does not need to repeat that it is the will of the British people—is good for British manufacturers?

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

Since the referendum, and contrary to the predictions at the time of the referendum, we are seeing an increase in exports outpacing imports, an increase in manufacturing, and an increase in sales in particular sectors, such as the car industry. We must build on those successes. Leaving the customs union will enable us to develop an independent trade policy beyond the EU and with other countries, and leaving the single market will give us power and control over our rules and regulations.

[Craig Tracey (North Warwickshire) (Con)]

T6. Can the Minister confirm that, as the UK will be able to sign free trade agreements during the implementation period, we will have taken control of our trade and so will be able to enjoy all the benefits that that offers from March 2019?

[Suella Braverman]

My hon. Friend makes a good point. The green section of the withdrawal agreement includes an express indication that, during the implementation period, we will, for the first time in 40 years, have the freedom to negotiate, sign and ratify trade agreements with third countries, opening our markets for British manufacturers, exporters and businesses, which is a surefire way of generating growth, jobs and prosperity.

[Karin Smyth (Bristol South) (Lab)]

T4. In response to my previous question, I think the Minister said that there would be no additional Government resources for the Northern Ireland police force. Will he confirm that additional resources for any contingency would be met from within its existing budget?

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[Deidre Brock (Edinburgh North and Leith) (SNP)]

Will the Secretary of State join me in appreciating the irony inherent in the news today that even businesses set up by Members of his own party are announcing their intention to move business to Ireland and are warning their investors of the uncertainties of Brexit?

[Suella Braverman]

Let us also focus on the recent investment decisions that we are hearing about. We have a record number of foreign direct investment projects in the UK. We have just heard that Amazon will be investing more money to create 2,000 or so jobs in the UK. Multinational global companies in pioneering sectors are choosing the UK, after our decision to leave the European Union, to build their businesses and grow jobs.

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

The Dutch Government are offering advice on Brexit to Dutch businesses. The Irish Government are offering grants to Irish businesses affected by Brexit. In the absence of anything from this Government, the North East England chamber of commerce has produced a checklist. The Secretary of State seems to think it is unreasonable for businesses to demand greater clarity or progress, but could he at least offer them some advice?