Future Relationship Between the UK and the EU

Vicky Ford Excerpts

Wednesday 18th July 2018 Commons Chamber

[Keir Starmer]

I am grateful for that intervention. I will come to that, because I am coming to the detail now and I will go through it.

I turn to the facilitated customs union arrangement, because it demonstrates how unworkable the White Paper is. It is based on the idea that traders can reliably distinguish at the border between goods intended for the UK and goods intended for the EU. Paragraph 16a of the White Paper says that

“where a good reaches the UK border, and the destination can be robustly demonstrated by a trusted trader, it will pay the UK tariff if it is destined for the UK and the EU tariff if it is destined for the EU.”

The idea is that, at the border, someone can safely distinguish between goods that are going on to the EU and those that are not and then apply different tariffs and regimes to them. Whatever “robustly demonstrated” means is not set out, but it is a complicated two-tier system, which is why business has been so concerned about it. It involves the idea that we will account to the EU for the tariffs that are collected. If the destination of goods is not known, the higher tariff is paid at the border and recouped at some later stage. That is a hugely complicated two-tier system, with a third system overlaid for goods the destiny of which is not known.

I have heard it said that, happily, for 96% of goods, the destiny will be known on the border. The reference for that is footnote 6 on page 17 of the White Paper. I do not know whether the Secretary of State has chased that footnote, but I have. I challenge him to explain on some occasion—now, if he can—how that 96% figure is arrived at, because it is not at all clear from that footnote. However, the important point is this: whether it is 96%, or some lesser percentage, there will need to be checks to ensure the integrity of the system and to avoid abuse.

The solution that the Government have put forward is the tracking mechanism that was floated last summer. It is an interesting idea; it is a shame that it does not yet exist. It is no good Ministers on the Front Bench shaking their heads. If the position is that there will be no checking at all after the event to see whether the right tariff was indeed paid, to avoid abuse or to protect the integrity of the scheme, I will let the Secretary of State intervene on me to say that the proposal is that, as goods pass the border, that is it—no check. If that is not the case, he must accept that, as with any system, whatever the percentage rightly designated or not at the border, there will have to be tracking systems to check that the correct tariff was paid; otherwise, it is very obviously open to gross abuse.

[Vicky Ford (Chelmsford) (Con)]

This time last week I met Members of the European Parliament, including one from the Socialist group who explained to me that a senior member of the Labour party had addressed their group and, in the words of that parliamentarian, effectively they had been discouraged from giving the UK too good a deal because it would encourage other countries to Brexit themselves. Can the right hon. and learned Gentleman confirm whether he or any other Opposition Front Bencher has indeed addressed the Socialist parliamentary group of the European Parliament, and can he confirm that if and when negotiations are concluded along the lines of the White Paper, he will encourage people to vote for it in the best interests of our country?

[Keir Starmer]

I am grateful for that intervention. I have made many, many trips to Brussels. I have had many discussions with political parties across all of the EU27 countries, and I have never, on any occasion, sought to undermine the Government in any of those discussions. I made that commitment to the former Secretary of State when he started his role and when I started my role. Therefore, there is absolutely nothing in what the hon. Lady has said.

--- Later in debate ---

[Hilary Benn]

I will be delighted to answer the hon. Gentleman’s question when we have a deal—[Interruption.] We do not have a deal. We have a proposal. It is an opening bid. The time for the House of Commons to make that judgment, as the right hon. Member for Sutton Coldfield (Mr Mitchell) said, will be when the House takes the final decision. At that time, the hon. Member for East Renfrewshire (Paul Masterton) will see what stance each individual Member takes.

[Vicky Ford]

Does not the right hon. Gentleman agree that in order to move the negotiations along it would be helpful if those on the other side of the negotiating table understood whether Labour Members were prepared to vote for a deal along the lines of the White Paper? By not answering the question posed by my hon. Friend the Member for East Renfrewshire (Paul Masterton), the right hon. Gentleman creates greater uncertainty for the negotiators.

[Hilary Benn]

I will not allow the hon. Lady to get away with putting the responsibility for the difficulties that the Government and the governing party are in, which are of their own making, on those of us on the other side of the House.