Leaving the EU: Preparations

Yvette Cooper Excerpts

Tuesday 3rd September 2019 Commons Chamber

[Michael Gove]

My hon. Friend is absolutely right. One of the sectors that we most need to help and support is of course the haulage sector—this follows on from the question asked by the right hon. Member for Leeds Central (Hilary Benn)—and we are moving at pace to meet many of its concerns. However, as I have said at the Dispatch Box today and previously, the sector that faces some of the biggest challenges in the event of a no-deal exit is undoubtedly agriculture, and within agriculture, undoubtedly upland farmers, particularly sheep farmers. The Department for Environment, Food and Rural Affairs is working on steps to ensure that if, as we anticipate, a common external tariff is placed on sheepmeat exports, and therefore the price of sheepmeat falls, we can support hill farmers, who do so much for our country by producing high-quality food and safeguarding the environment we love.

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

I have been contacted by local manufacturers and food producers who are deeply worried about no-deal tariffs. One, an exporter, says that the price of his exports to the EU will go up by 30%, and he called it “manufacturing suicide.” Another is an importer; the price of his imports will go up by 50%. A third told me that they might have to close down altogether. Can the Secretary of State confirm that all his preparations about public information and committees will not mitigate the impact of those no-deal tariffs? What is the total cost to British industry of those no-deal tariffs?

[Michael Gove]

The right hon. Lady makes a very fair point, actually. The single biggest challenge in a no-deal exit is of course the existence of those tariffs—a requirement of the European Union’s single market rules. The common external tariff, which I just alluded to, is particularly high when it comes to the agricultural sector, and therefore, when it comes to exporting food into the European Union, that is a significant barrier. However, the temporary tariff regime that we are consulting on would ensure that in many cases tariffs were lower, to help business and consumers.

On the broader question about attempting to put a figure on the specific costs, that cannot be done in isolation, although I appreciate the sincerity with which the right hon. Lady asks that question.

More broadly, I would welcome the opportunity to talk to the right hon. Lady’s constituents about what we can do, because the Treasury is making money available for companies that are fundamentally viable but may face particular turbulence in the event of no deal, to ensure their survival in the future. I would be more than happy to talk to her about that.