Spending Round 2019

Yvette Cooper Excerpts

Wednesday 4th September 2019 Commons Chamber

[Sajid Javid]

I will gladly help my hon. Friend to organise such a meeting. I will certainly speak to Ministers in the relevant Department.

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

The Chancellor will know that the Select Committee on Home Affairs has called for a long time for substantial additional resources for policing and that is important, so can he confirm that the £750 million he refers to is a real-terms increase and is all central Government funding, as he will know that central Government funding for policing has been cut by £3 billion since 2010? Can he also confirm that this is not yet enough to fund the restoration of the over 20,000 police officers who have been cut since 2010, and it also does not reverse any of the cuts of 7,000 PCSOs and 5,000 specialists since 2010?

[Sajid Javid]

What I can confirm to the right hon. Lady, and I hope she will find this helpful, is that for the Home Office my starting point was to roll over all funding in real terms that it had received this year, so that was the baseline, which had not been done before. I added to that the extra costs that would be required, with the major cost being for the extra officers. So the real-terms increase in the Home Office budget is £800 million. That is an increase in the real-terms growth rate of 6.3%, the biggest real-terms increase in the Home Office budget in 15 years.

HS2: Buckinghamshire

Yvette Cooper Excerpts

Monday 29th April 2019 Commons Chamber

[Ms Ghani]

My hon. Friend has worked tremendously hard on behalf of his constituency, and I think him for his question. He has been disappointed by some of the behaviour of HS2 Ltd and by the fact that some of his representations have not been favoured. I recognise all his work to represent his constituency, but unfortunately I do not agree with him. This project is incredibly important for the future of our country.

We cannot lament that we do not build long-term infrastructure projects or invest in our country for future growth, while at the same time not having confidence in vital projects such as HS2. It is not about decreasing journeys, even though that is absolutely key, but about bringing communities together, spreading wealth and job opportunities, and increasing capacity for both freight and people. We do not want everyone to assume that once they have finished their apprenticeship or job they have to get to London and the south-east to secure work. We need to ensure that companies move out of London and the south-east to Birmingham and other points on the line. That will create opportunities for everyone along this route.

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

Does the Minister understand that there is real frustration in towns across the country that the Government are putting billions of pounds into an ever-escalating budget for a rail project to connect cities, while at the same time huge numbers of towns, including in my constituency, have rubbish train connections and cannot even get investment for the additional carriages we need, never mind rail route upgrades? Will she undertake to provide a breakdown from her Department of the amount of capital rail funding going into projects for cities and the amount of money going into projects for towns?

[Ms Ghani]

I am more than happy to put together a note to put on paper the amount of investment we are making in our rail infrastructure in the north. There is one budget for HS2, and we are sticking to it.

Transport for Towns

Yvette Cooper Excerpts

Tuesday 19th February 2019 Westminster Hall

[Caroline Flint]

I absolutely agree. As a former Public Health Minister, I have always thought that we should not be confined to the clinical aspect of public health. It is also about housing and transport. So much of this debate is about air pollution, and given that our buses could run on green fuel, I would have thought that that is a no-brainer as a way to get people on to more sustainable, greener and affordable transport systems, which benefit not only individual travellers but the wider community by reducing air pollution.

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

I congratulate my right hon. Friend on securing this debate about transport in our towns. Normanton in my constituency used to be at the heart of the national rail network. Now, we have only one train an hour into Leeds, even though it is only about a 20-minute drive away. We see that pattern across the country. Towns are losing their connections, and there is real resentment about the fact that such a high proportion of the investment and infrastructure is going into cities, while towns are getting an unfair deal. Does my right hon. Friend agree that the Government must change their pattern of investment across the country if towns are to get a fair deal in the future?

[Caroline Flint]

My right hon. Friend is right. It is unfair to blame people for not taking up some of the massive job opportunities that our cities offer when it does not make sense for them to do so. We must change not only the investment but the attitude to transport. It is not just about cities but our towns. My right hon. Friend is right that our communities are being not only left behind but bypassed. They are isolated and excluded by planners, operators and, I am afraid, policy makers, who see them as uneconomic.

Equitable Life

Yvette Cooper Excerpts

Thursday 31st January 2019 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the hon. Member for his intervention and for giving me prior notice of it. I am sure that the House will appreciate it that as soon as possible he has been able to register the fact that he had a relative who was involved in the scheme.

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

On a point of order, Madam Deputy Speaker. I understand that at business questions today the Leader of the House was asked by the right hon. Member for West Dorset (Sir Oliver Letwin) what the timetable would be if, when she puts her withdrawal agreement or a deal to the House again it is voted down. He asked whether in those circumstances an amendable motion would be laid the following day. My understanding is that the Leader of the House did not give a positive reply to that and did not suggest that it would be tabled the following day, even though the Prime Minister said in her statement that in those circumstances if the deal was voted down again she would table an amendable motion for debate the next day.

There is real alarm about the discrepancy between what the Prime Minister said and what the Leader of the House said. Have you heard anything from the Government about whether they are trying to change the proposals that the Government put forward and, if they are not, why was the statement of the Leader of the House different?

[Madam Deputy Speaker]

I thank the right hon. Lady for her point of order. I am afraid that I was not here to hear what the Leader of the House said. It is not for the Chair to rule on possible discrepancies, if there are any, between statements from one Minister or another. However, she has put her concern on the record. The Treasury Bench will have heard her concerns. There is obviously the opportunity at business questions next week to raise this, but in the meantime if further clarification is required I am sure that the right hon. Lady will know that there are various ways in which she can raise that in the course of next week.

Finance (No. 3) Bill

Yvette Cooper Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 8th January 2019 Commons Chamber

[Nicky Morgan]

I am afraid I am going to make some progress. My hon. Friend will be able to intervene on other Members.

Those who wanted Brexit talked often about the taking back of control. I have not had time to watch the film broadcast on Channel 4 last night, but I understand that that was a key part of it. As I have said before, it is right that control should come back to this Parliament, and it is right and it is time for Members of Parliament on all sides to make it clear to the Government that a no-deal Brexit outcome is absolutely unacceptable.

It will have been noticed that many of those who have put their names to amendment 7 are Chairs of Select Committees. The Treasury Committee took evidence in December—I am grateful to all Committee members, who have varying views on Brexit—and we produced a unanimous report. One thing that was made very clear is that, compared with today’s trading arrangements, and assuming no change to migration arrangements, our GDP would take a 7.7% hit on a modelled no-deal scenario. That is greater than the impact of the 2008 financial crisis. Members who have been in the House since 2010, and perhaps just before, will know the impact of the financial crisis on our constituents.

Finally, as a wise general said to me a few weeks ago, Britain is renowned for its confidence and competence. Currently, we are demonstrating neither. A no-deal Brexit will completely destroy any reputation we have for confidence and competence. The Government decided to put off the meaningful vote, although hopefully we will get it either this week or next. It is time for Members of Parliament on all sides to start ruling out options that would be deeply damaging to our country. That is what amendment 7 and 8 are about, and I will be delighted to support them both, should they be voted on.

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

It is a pleasure to follow the right hon. Member for Loughborough (Nicky Morgan), because although we represent different parties and disagree on many issues, and although we will take different positions on the Prime Minister’s deal when it comes to a vote, on this issue we agree. I rise to speak to amendment 7 and to support amendment 8.

We agree on the dangers of no deal to the country. I tabled amendment 7 because I am really worried that delays, drift or brinkmanship mean that there is now a serious risk that we will end up crashing out of the EU with no deal in just 80 days’ time. I am worried that we could come to the crunch and Parliament would not have the powers to stop it happening. We have a responsibility not just to stand by. I believe that the Government should rule out no deal but, if they will not, Parliament must make sure that it has the powers to do so if it comes to the crunch.

Amendment 7 has support from across the House. It has been signed by Chairs of cross-party Committees—it has the support of the Chairs of the Treasury Committee, the Exiting the European Union Committee, the Liaison Committee and the Business, Energy and Industrial Strategy Committee and others, too—and it is supported by those with a wide range of views on the best way forward. It is supported by those who support the Prime Minister’s deal and those, like me, who do not, and it shows that those who take a wide range of views on the best way forward have come together to say that we should rule out the worst way forward.

[Charlie Elphicke]

Just to clarify, does the right hon. Lady herself intend to support or oppose the Prime Minister’s deal?

[Yvette Cooper]

As I just said, and as I said when I spoke in the debate before Christmas, I am opposed to the Prime Minister’s deal. It is a blindfold deal that does not address some of the policing and security challenges, as well as customs union issues for manufacturing. I accept, though, that we take different views on that throughout the House. There are very different perspectives and views, which is why the opportunity to come together and rule out no deal is such an important one.

[Mr Marcus Fysh (Yeovil) (Con)]

rose—

[Yvette Cooper]

I will give way in a second. I am conscious of the time, so let me set out what the amendment would do and I will then of course give way to the hon. Gentleman.

The amendment applies to clause 89 of the Bill, which the Government say they need for minor amendments to tax-raising powers in the event of no deal. In practice, clause 89 is drafted much more widely than that, but that is the point that the Government have made. The amendment says that, if the Government want to use clause 89 powers to implement no deal, they first need to give Parliament a vote on no deal and to have Parliament’s support for no deal. The amendment provides a safeguard to make it harder for the Government to go ahead with no deal without even going back to Parliament.

[Mr Fysh]

I am still not clear. What could the Government do under clause 89 that this amendment deals with to rule out no deal? Can she say how exactly the amendment rules out no deal?

[Yvette Cooper]

The amendment provides a parliamentary safeguard. It does not, in itself, solve any of the many Brexit issues that we have, but it does provide an additional parliamentary safeguard that says that the Government cannot use the powers in clause 89 to implement no deal without first coming back to Parliament to ask for permission and support for a no deal. The hon. Gentleman is right that there may be other powers that the Government may choose to use. There may be other issues that they may choose to pursue, but this is our opportunity within this Bill to address these powers. That is why it is an important one to come around.

I have heard four sets of objections to the amendment. Some say that it is irresponsible; that it is somehow holding the Government to ransom on powers that they need. Some say that it is undesirable and perhaps even unpatriotic because they think that no deal is a good outcome and should not be ruled out. Some say that it is unnecessary because the Prime Minister’s deal is the best way forward. Some suggest that it is unstrategic because we need the threat of no deal to force a decision one way or another. I want to take each of those objections in turn because each of them is wrong.

First, on the charge that this is an irresponsible amendment, the amendment does not affect the normal Treasury and Government operations; those carry on as normal. It simply requires the Government to get Parliament’s permission if they want to use these powers to pursue no deal. Even if there is deadlock, the amendment provides a way forward. Let us suppose that Parliament votes against any deal that is put and also votes against no deal, and the Government still desperately want to use the clause 89 powers. In that event, they could follow paragraph (b) of the amendment if they still want to use the powers they need to apply to extend article 50. So in fact, this is an extremely responsible amendment. The irresponsible thing to do would be just to stand back and hope for the best, or to stand back and allow the Government to drift towards no deal without any attempt to put the safeguards in place to prevent that from happening.

The second objection is from those who think that no deal is a good option, or at least a good enough option not to rule it out. That is reckless. The damage to manufacturing industry, on which many of our constituencies rely, would be too serious. One local factory has said to me that the cost of its imports will double in price if we go to WTO tariffs. Another has told me that its European parent company would be under pressure to switch production to continental factories to avoid delays. Burberry has hundreds of jobs in my constituency, making clothing that is sold all over the world. It has written to me about the risks and concerns about delays to its supply chain. Its letter says:

“My hope in writing to you is that you will work with your colleagues across Parliament to ensure that there is no scenario possible where a No-Deal Brexit is a possibility.”

That is what I am doing.

[Rachel Reeves (Leeds West) (Lab)]

I thank my right hon. Friend for for tabling this amendment, which is so important. The Business, Energy and Industrial Strategy Committee has taken evidence from a number of businesses in the past few weeks, including Nestlé, Toyota and Airbus. Each one of them, and many others too, have said that the most dangerous thing would be to leave the European Union without a deal, which would have catastrophic impacts on their businesses and on the people who work for them. For that reason alone, anything that we can do to avoid a hard Brexit and going on to WTO rules, as some Members suggest, is the most important thing. This amendment at least helps to provide some safeguards to stop that from happening.

[Yvette Cooper]

My hon. Friend is exactly right. This is about dealing with risk, delays and increased costs. There is the risk that border delays will hit tight cross-border supply chains, but the CBI also estimates that the impact of WTO tariffs will mean a £4 billion to £6 billion increase in costs on our exports. The Environment Secretary—the leave campaigner himself—has said that WTO tariffs on beef and sheepmeat will increase by over 40%.

[Mr Baron]

The right hon. Lady is being very generous in giving way, but may I encourage her to temper her dire warnings about WTO terms? There were many forecasts and predictions from business organisations, the Bank of England and the International Monetary Fund about the disastrous consequences if we voted to leave the EU in 2016, including predictions of 500,000 extra unemployed by Christmas 2016. Those predictions did not materialise because investment is about comparative advantage such as low taxes and more flexible labour market practices. That is what determines investment at the end of the day.

[Yvette Cooper]

I am not drawing on macroeconomic predictions about the overall impact on the economy, although I note that there are predictions of a 9% reduction compared with the level at which we might otherwise be. I am actually focusing on the microeconomic impact on individual businesses across the country of simply seeing those costs go up. That is a real impact of the tariffs. It is not about confidence, levels of investment and so on; it is about the real impact of those costs on consumers, manufacturers, exporters and importers that is the real consequence of WTO tariffs.

[Ms Angela Eagle (Wallasey) (Lab)]

I am sure my right hon. Friend has noticed that the Office for Budget Responsibility said in its report on the recent Budget that there has been a loss of 1.5% of GDP since the referendum, and that the uncertainty was likely to make that worse, at least in the medium term. This Parliament has a duty to ensure that we mitigate that as much as possible, which is why I will be supporting her amendment.

[Yvette Cooper]

My hon. Friend is right that we have a responsibility not to make life harder for our manufacturers, which face huge pressure and huge international competition. We also have a responsibility not to make life harder for our consumers, who could see significant increases in prices. The British Food Importers & Distributors Association warns that WTO rules could mean that food prices go up by over 20%.

[Crispin Blunt]

The hon. Member for Leeds West (Rachel Reeves) has just cited Nestlé, which is a Swiss company. The right hon. Lady will be aware that Britain and Switzerland, which is able to make arrangements for the future, negotiated an agreement on 14 December 2018 to be able to continue trade, even if there is no agreement between the UK and the EU. Once this House has rejected the withdrawal agreement, that is exactly where the European Union and the United Kingdom will be. We will need to make the best of the situation in which we find ourselves. That is precisely why both sides will, under article 24 of the general agreement on tariffs and trade, move towards a free trade agreement to ensure that we do not put tariffs in place at all after 29 March. That is where we should be and those are the realities that are going to descend once we are through the “Project Fear” phase.

[Yvette Cooper]

The same cheery optimism that the hon. Gentleman and others have expressed that everybody will suddenly magically come to an agreement once we are through this phase and if we are on WTO terms is exactly the same cheery optimism they had that we were going to end up with a deal by now—and we have not, because it is actually a lot tougher than hon. Members suggest. The reality is that we are going to have a big hike in prices in April if we have no deal, and that has consequences for our manufacturers, businesses and consumers right across the country.

[Anna Soubry (Broxtowe) (Con)]

I shall be supporting the right hon. Lady’s amendment. She talks about the manufacturing sector and I believe that there are a number of manufacturing jobs in her constituency. Has she heard any argument that falling back on WTO rules would ensure that those critical, just-in-time supply chains are able to continue, and does she agree that this issue is very important to the many millions of people across the country who rely on those just-in-time supply chains, because if we fall back on WTO rules, it is they who will be losing their jobs, not hon. Members?

[Yvette Cooper]

I completely agree with the right hon. Lady. What I am saying just comes from listening to employers in my constituency who have told me that they have bought all the storage capacity they can find in order to stockpile, but they cannot stockpile more than 10 days’ worth of some of their products, and they are really concerned about the impact of the delays on just-in-time technology.

[John Redwood]

Does the right hon. Lady agree, in wanting to promote stronger and better industry once we have left, that the Government should set zero tariffs on all imported components, which we would be free to do, which would make them cheaper from non-EU countries and preserve zero tariffs for EU components?

[Yvette Cooper]

It is not clear to me how that strengthens our negotiating position with countries all over the world that might then keep their tariffs extremely high on our goods. The whole point is that, if we crash out on WTO terms, it undermines our negotiating power. Whether one thinks that is about negotiating with the EU or negotiating with other countries, we are weakening our position abroad.

We also have the impact on the NHS, which is spending £10 million on fridges: it will have to put more money into this which could be put into patient care. The police have warned that we will be less safe. They and the Border Force would immediately lose access to crucial information that they check 500 million times a year to find wanted criminals, dangerous weapons, sex offenders and terror suspects. We will not be able to use European arrest warrants to catch wanted criminals who fled here having committed serious crimes abroad. We use those warrants 1,000 times a year to send people back to face justice in the countries where those crimes have been committed. If those 1,000 suspects commit more crimes here, MPs will need to explain to the victims why we took away the power from the police to arrest and extradite them by tumbling into no deal.

[Mr Speaker]

Order. I am listening to the right hon. Lady, as always, with great interest and enormous respect, but may I just very gently point out that we need to hear from other Members with amendments in the group and from the Minister? I am not certain how many more Members we need to hear, but my guesstimate is at least four, and we have 31 and a half minutes.

[Yvette Cooper]

Thank you, Mr Speaker. I apologise to anybody else who wants to intervene, but I will not take any further interventions and try to conclude my remarks.

Some of those who say they support no deal have said that it is unpatriotic to rule it out. I understand that there are strong emotions, but I hope we could be more respectful of each other than that, because I believe that it is patriotic to stand up for manufacturing, for families who may be on the breadline and face increases in food prices, for our NHS, and for British citizens abroad who could lose their rights.

The other objection that people have raised is that this is unnecessary because the Prime Minister’s deal is the one they want as the way forward. I simply disagree, but I think the reality is not about my view but the view in the House: there is not, at this stage, support for the Prime Minister’s deal, and I do not think there could be. We have to be able to respond to what happens next.

Finally, I have heard some say that they want the imminent threat of no deal to persuade people to back the Prime Minister’s deal, if not now, then later. But brinkmanship in Parliament is not the way to resolve this and get the best deal for the country. This is too serious for us to play a massive Brexit game of chicken. The country cannot afford to wait to see who blinks first.

I hope that Ministers, as may have been rumoured, will accept this amendment and accept the principle behind it. The Government should get agreement on a deal before 29 March, get explicit agreement on no deal before 29 March, or, if that fails, commit to seeking an extension of article 50, so that there is time to sort this out. The amendment does not solve the Brexit challenges that we have ahead and the many intense debates that we will no doubt have about the best way forward, but it gives us an opportunity to rule out the worst way forward and to do so in a way that is calm, measured and sensible. That is why I hope that amendment 7 will have support from across this House.

[Several hon. Members rose—]

--- Later in debate ---

[Robert Jenrick]

My right hon. and learned Friend and constituency neighbour tempts me to go into areas that I should not, but the Chancellor has said that we will be prepared and that we have fiscal room available—that was what he stated in the Budget, as certified by the Office for Budget Responsibility. My right hon. and learned Friend appears to be making the case for prudent preparations in case of a no-deal scenario, which is all that clause 89 seeks to achieve.

[Yvette Cooper]

rose—

[David T. C. Davies (Monmouth) (Con)]

rose—

--- Later in debate ---

[Robert Jenrick]

We are leaving the European Union. We wish to do so with a deal. The House will vote on the deal next week, but we must and will prepare for all scenarios.

[Yvette Cooper]

rose—

[Robert Jenrick]

I give way to the right hon. Lady because, of course, amendment 7 is hers.

[Yvette Cooper]

Will the Minister confirm that he will still be able to use clause 89 powers if he either gives the House a chance to vote on no deal or, alternatively, takes the opportunity to apply for an extension of article 50?

[Robert Jenrick]

Clause 89 would give the Government the ability to provide certainty to taxpayers now. That is what we want to ensure. We do not want to inhibit the ability of HMRC and the Government to provide that critical certainty. Who would want to do that? Who would want to diminish certainty for taxpayers at this time? The right hon. Lady listed a number of businesses. Those businesses want certainty, and by supporting her amendment, we would diminish that certainty and our preparedness—admittedly only modestly—for a no-deal scenario.

We will not be deterred from making sensible preparations—the public expect us to do so—and using the Finance Bill to prevent or frustrate preparation for any eventuality is unwise and irresponsible. I therefore urge the House to reject all the amendments and new clauses tabled against clauses 89 and 90 so that we give our constituents and taxpayers across the country the degree of certainty they deserve.

Leaving the EU: Economic Analysis

Yvette Cooper Excerpts

Wednesday 28th November 2018 Commons Chamber

[Mel Stride]

I have huge respect for my right hon. Friend, whom I count as a friend, but I gently say to her that I do not believe that any promises have been broken. We have come forward with an analysis of the deal, and that analysis, of necessity, is a spectrum of possible outcomes. The political declaration very clearly does not identify a specific end point, so the choice we are left with is taking a position on a particular set of circumstances—in this case, the Chequers deal, as set out in the July White Paper—and then doing a sensitivity analysis so that we capture the different scenarios in which the final deal could land, although that, as we know, is currently unknown because it is subject to detailed negotiation.

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

The Minister has blown apart the Prime Minister’s entire claim by admitting that he cannot do any kind of assessment of the political declaration of the deal because, as he said and as it says in paragraph 28 of the political declaration, there is a spectrum of outcomes and controls. The trouble is that his assessment of that spectrum includes a huge range of possible outcomes for the growth of the economy, ranging from a 1% drop to a 7% drop. That is a substantial range. He is asking us to vote for this deal blindfolded, with no idea, and undermining our negotiating strategy in the process. Will he confirm that that is what he has just done?

[Mel Stride]

I am sorry to disappoint the right hon. Lady, but I will not confirm that, because, as I said in my last answer, the deal, as set out and elaborated upon in the political declaration, does indeed set out a spectrum of potential outcomes, so it is logical that it is that spectrum of potential outcomes that we should be modelling, and that is precisely what we have done.

Taxation (Cross-border Trade) Bill

Yvette Cooper Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Monday 16th July 2018 Commons Chamber

In trying to deal with a problem that is less bad than its supporters think, the proposal in the new clause would throw away a power and a right that is incredibly important—much more important than they think. They are trying to defend a false past and giving up a real future. There we are.

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

It is interesting to follow the former Brexit Secretary and to reflect on the speech he has just given. It explained why he resigned from the Government but, in the end, it just clashes with reality—that is the unfortunate detail of the evidence he has put to the House today.

I shall speak in support of new clause 1, but also to my new clause 6 and amendment 9, which relate to conducting an impact assessment on the effect of leaving the common external tariff. I shall also speak against amendment 73 and new clause 36. We have heard why the former Brexit Secretary believes that any kind of customs union would somehow be bad for Britain and why we would be better off without it, and I will first address the fallacies in his argument. He was extraordinarily dismissive of the impact of checks at the border and of delays and additional costs, particularly for manufacturers and just-in-time production.

I make no bones about the fact that I am speaking strongly in support of manufacturing industry in my constituency. I will resist the temptation to go off on a tangent about Haribo and the Starmix I am sometimes allowed to test when I go to visit, but people there do tell me how important it is that they can bring ingredients to and fro smoothly across the border and talk about the impact of such delays.

[Anna Soubry]

Did the right hon. Lady notice that there was no detail about the reality of the America-Canada border, which took 10 years to construct, cost £10 billion, deals with facial recognition and involves 100 companies in the automotive sector of Detroit and nothing more? Does she think that such a model would not provide the frictionless trade that our manufacturing sector needs?

[Yvette Cooper]

I completely agree with the right hon. Lady. The former Brexit Secretary seems to be arguing that because companies trade across borders that involve customs checks, we should rip up our customs-free borders. He is saying that because those trades take place, it is okay somehow to add costs to our trading process. Why on earth would we do that? Why on earth would we add burdens to businesses that do not face them at the moment? Why on earth would we make the process difficult and more costly for them? It is not that we think all trade will stop—of course it will not—but the point is that that trade will become more costly and burdensome, and our businesses and manufacturers will be at a disadvantage compared with their European neighbours and competitors. That is unfair on our manufacturers, which we in this House should be standing up for. I certainly believe in standing up for Yorkshire manufacturing.

The former Brexit Secretary also seemed to be arguing that, because we coped with Operation Stack before, let us have more delays again. Yes, we can cope, but Operation Stack cost businesses coping with those long delays a fortune.

[Mr Marcus Fysh (Yeovil) (Con)]

Will the right hon. Lady give some consideration to supporting our new clause 36, which will become a key piece of legislation if the UK is to operate proper trade defences? She mentioned manufacturing, and I note that many Labour Members have constituencies where workers may depend on the UK’s having good trade defences. Under the facilitated customs arrangement, that would not be possible without new clause 36.

[Yvette Cooper]

Let me just deal with new clause 36. If the Government are saying that they will accept it, I do not understand how that does not rip a hole right through their White Paper. New clause 36 explicitly states that we cannot collect customs and excise duties at the border on behalf of another country unless that country is going to do the same for us, but the White Paper states:

“However, the UK is not proposing that the EU applies the UK’s tariffs and trade policy at its border for goods intended for the UK.”

That is the opposite of what is said in new clause 36. Have the Government ripped up their own White Paper in the space of a couple of days? This is a chaotic approach to a matter that is so serious, and it shows a ridiculous wobbling in the face of a small group of people who I do not believe speak for the majority in this country.

[Mr Kenneth Clarke]

That phrase in the White Paper describes a perfectly sensible arrangement. If we adopt the new clause, 27 other countries will face the prospect of searching for new technology and setting up their own bureaucratic arrangements to accommodate the Brexiteers in my party. We urgently need these EU negotiations to start with partners who can rely on us to stick to a consistent line, and it could be very damaging to change the basic position on such an important matter within one week.

[Yvette Cooper]

I think that the right hon. and learned Gentleman is right on two counts. First, I think that this inconsistency and buckling in the face of objections from what I consider to be an unrepresentative group is the wrong approach. Secondly, I think that these customs arrangements are immensely important.

[Mr Fysh]

Will the right hon. Lady give way?

[Yvette Cooper]

No, I will not, because there is a time limit and I want to finish my speech early so that others can contribute.

Members who oppose any form of customs union are underestimating the significance of rules of origin checks which, according to the Government’s own analysis, can burden businesses with additional costs amounting to between 4% and 15%.

[Sir Bernard Jenkin]

Why would any company bother to carry out expensive rules of origin checks if paying the tariff, which might be as little as 2%, would be much cheaper? It is as simple as that.

[Yvette Cooper]

That is really flipped logic. The hon. Gentleman is effectively saying, “They do not have to do the checks because they can all just pay the tariffs.” Why on earth are we going through this whole process in the first place if all we are going to get is a tiny reduction in tariffs that no one will take advantage of in order to get any benefits?

[Mr David Davis]

The logic is actually very simple. Empirical evidence shows that in international trade, companies seek to claim their rebates and do what is necessary to avoid tariffs when a tariff is lower than 3%, not when it is above. What that tells us is that the cost of rules of origin administration is less than 3%. Companies are rational operators. The numbers that the right hon. Lady cited from a supposed Government study were wrong.

[Yvette Cooper]

I would caution the right hon. Gentleman against dismissing the rules of origin checks. There is a huge worry about the burden that they will impose on small businesses in particular. There is a big difference between large and small businesses in this regard. It might be worth large businesses claiming the money back because they can set up systems to do so, but for small businesses the process can be devastating. I am thinking particularly of the huge number of small businesses that have not yet traded outside the EU and for which rules of origin will be a new burden.

Why on earth would we want to add these additional burdens and checks on businesses that have not faced them before? I find myself in a very strange position. I, as a Labour MP, am arguing far more strongly and passionately against these additional burdens on businesses than those on the hard right of the Conservative party, who ought to be arguing against such burdens.

[Wera Hobhouse]

Will the right hon. Lady give way?

[Yvette Cooper]

I will give way once more, but I am conscious of the time.

[Wera Hobhouse]

Surely rules of origin checks are about not only tariffs, but environmental protection, for example. It is not just about the money; it is about where the products have come from, how they were produced and whether they conform with what we believe in.

[Yvette Cooper]

The hon. Lady is right. We need to address the wider issues relating to friction at the border as well.

Let me say something about the Government’s facilitated customs arrangement. I understand what Ministers are trying to do and that they are trying to square a circle. They are trying to pull us out of the common external tariff without paying any of the penalties of being outside it. I think that that is a leap of faith—it is implausible. I think that there are huge questions about whether such an arrangement is deliverable and whether it would be robust enough for the EU ever to sign up for it.

The Government are expecting that there will be sufficiently robust procedures for tariffs to be collected at the border for widgets coming in from the United States or other countries, and therefore no checks—no spot checks; no additional checks—on whether forms are being filled in correctly and accurately, on whether there is fraud and on whether there is an incentive for companies to fill in the forms in respect of one direction but then actually to move the goods in another. That is significant, because the European Commission is currently taking action to recover what it believes is €2 billion of under-claimed customs duties as a result of the UK’s failure to crack down on Chinese clothing importers’ customs fraud. Whatever the rights and wrongs of that, the point is that the European Commission and EU member states do not have confidence in our customs arrangements at the moment—never mind our asking them to join in a huge leap of faith with their agreeing to our future facilitated customs arrangement. The Government are relying on some whizzy wonderful new technology, and while I hope that that will arrive very quickly, there are serious questions about how long that will take and what the consequences will be.

My new clause 6 calls for a proper impact assessment of the consequences of being outside the common external tariff. I still cannot believe that that has not been done. I cannot believe that there has been no serious assessment of the fantasy future trade deals that will somehow make us better off, or of the additional burdens that will result from being outside the common external tariff, which will make us worse off.

Let me now say something about amendment 73, which I think is one of the most destructive measures tabled by some of the hard-right Conservatives in the European Research Group. It would remove from the Bill any provisions that would be needed for a customs union. The hon. Member for North East Somerset (Mr Rees-Mogg), who chairs the ERG, has said that that is okay because there will be a future vote. Why should there be a future vote? Why should we not vote now? I think that we should have a customs union, so let us have that vote now, rather than voting to remove the provisions from the Bill. Why on earth, for the sake of manufacturing, would we ditch those customs provisions? The ERG wants to remove the possibility of a customs union from the Bill.

I am astonished that Ministers want to accept that proposal. It is deeply destructive, and it would actually make it harder for the Government to secure the customs arrangements that we need. It means that if their facilitated customs arrangement does not work, the fall-back position will be no customs deal at all, which would be deeply damaging for our manufacturers.

I hope that our Front Benchers will also vote against this deeply damaging ERG amendment because I do not see how we can tolerate the damage that the hard right of the Conservative party wants to do to our manufacturing industry. We need to be the party that will stand up for manufacturing industry and ensure that our manufacturers can get the best possible deal as part of the Brexit process. We owe it to them to do that.

[Several hon. Members rose—]

Windrush: 70th Anniversary

Yvette Cooper Excerpts

Thursday 14th June 2018 Commons Chamber

[Helen Hayes]

My hon. Friend is exactly right. Many nurses trained in London and were then placed in hospitals all around the country. They were part of that outward move from London to all over the country, where they indeed made, and continue to make, such an important contribution.

Windrush passengers also found work on London transport and in the construction industry. Some rejoined the armed forces and many were entrepreneurial, setting up stalls and shops in Brixton market and elsewhere.

The lives of Windrush passengers and others from the Caribbean who followed them to Brixton were captured by commercial photographer Harry Jacobs, who set up shop on Landor Road close to Brixton town centre, providing photographic services so that people could send images to their loved ones back home. Many of Harry’s photos are currently on display in Lambeth Town Hall as part of the Windrush 70th anniversary celebrations. They capture, in a very poignant way, the hopes, dreams and achievements of people in the process of making a new life in their new home of London: a woman in her nurse’s uniform; families dressed in their Sunday best, showing off their prize possessions; the first image of a new baby or a new spouse.

In marking this important 70th anniversary, it would be easy to present a sentimental view of the Windrush generation, focusing only on their significant contributions to Britain, but that would not do their experience justice. The thing which makes the Windrush story so remarkable and so humbling is not just that those passengers came to the UK to work in the aftermath of the war, but that they did so despite facing many challenges: the experience of being far from home in an unfamiliar country with a colder climate and, worse than that, widespread racism, the most clear and ugly illustration of which was found on the signs on the doors of boarding houses reading, “no blacks, no dogs, no Irish”, and which in many situations ran much deeper, often resulting in daily discrimination and humiliation. It is devastating to read the words of John Carpenter, who travelled on the Windrush aged 22, speaking in 1998:

“I know a lot about Britain from school days, but it was a different picture from that one”.

He went on:

“They tell you it is the ‘mother country’, you’re all welcome, you all British. When you come here you realise you’re a foreigner and that’s all there is to it.”

Despite these hardships and injustices, the Windrush passengers and those who followed them settled in the UK and put down roots, often clubbing together to buy property in order to circumvent the racist landlords, establishing businesses and setting up churches. Sam King became a postal worker. He was elected to Southwark Council and became the first black mayor of the borough, an achievement that was also very brave since he faced threats from the National Front which was active in Southwark at the time. Sam was also instrumental in establishing the Notting Hill Carnival and the West Indian Gazette, and he later established the Windrush Foundation with Arthur Torrington, who still runs it today.

In my constituency, the Windrush generation helped to forge the Brixton we know today, bringing food, reggae, jazz, calypso and Soca music, stories and songs, and working in many different public services and businesses. In doing so, they made a huge contribution to a community where everyone is welcome, where difference is not feared but celebrated. Talented young people from Brixton recently designed a beautiful logo commissioned by Lambeth Council to mark the 70th anniversary of the arrival of the Windrush. It is based on the pattern of human DNA. The Windrush generation and subsequent migrants who have come to this country from all over the Commonwealth sparked the emergence of modern multicultural Britain. They are all part of the UK’s 21st-century DNA.

I am glad today to see Members in the Chamber who I know will speak of their families’ own direct experience of being part of the Windrush generation, including the shadow Home Secretary—my right hon. Friend the Member for Hackney North and Stoke Newington (Ms Abbott)—my right hon. Friend the Member for Tottenham (Mr Lammy), and my hon. Friend the Member for Brent Central (Dawn Butler). It is not my role to do that, but, on behalf of my constituents in Dulwich and West Norwood, to pay tribute and to say thank you to those 1948 pioneers, and those who followed them, for helping to create the diverse and wonderful communities that I am so proud to represent—for helping to make Lambeth and Southwark, and communities across the country, some of the most open communities anywhere in the UK.

But saying thank you is not enough. It is a shameful fact that the injustices experienced by the original Windrush passengers have sadly not been consigned to the past. This has been seen most recently in the Home Office’s appalling systematic denial of citizenship rights to British citizens from the Windrush generation—the ultimate insult to those who came here responding to a call for help on trust that the mother country was their home. It is seen in racial inequalities that still extend through income and employment, educational attainment, physical and mental health, and the criminal justice system. It is seen in the horrific racism that is still to be found in the online spaces of social media. We need look no further than the Twitter timelines of some of my hon. and right hon. Friends here today for evidence of a problem that requires urgent action to address it.

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

I welcome the powerful tribute that my hon. Friend is making to the Windrush generation and the source of pride that the Windrush generation should be, right across the country. She has raised the injustices faced not just in the past but, outrageously, still today by some from the Windrush generation. She will be aware that the Home Affairs Committee is inquiring into the Home Office’s treatment of these people. Will she join me in supporting an urgent hardship fund for those in the Windrush generation who are being so heavily affected? This has been called for in our interim report and by my right hon. Friend the Member for Tottenham (Mr Lammy).

[Helen Hayes]

I thank my right hon. Friend for her intervention. I am delighted to wholeheartedly support the call for action that she and her Select Committee have made. I have seen myself, through very many constituency cases, the hardship that this Government’s approach is causing. There is a need for urgent action in the interim as well as for compensation in the longer term for all who are affected.

As we acknowledge and celebrate the enormous contribution of the Windrush generation to the UK, we must commit to an enduring legacy of this anniversary which addresses injustice and roots out racism wherever they are found. To this end, I have some asks of the Government that I believe will help to turn the tributes of our words into a lasting commemoration.

First, I hope that the Minister will know of the work of the Black Cultural Archives, based on Windrush Square in my constituency. The BCA was established in 1981 by Len Garrison, who had come to the UK from Jamaica as a child in 1954. Len Garrison was an educator who believed that, in his words,

“collecting and structuring the fragmented evidence of the Black past in Britain as well as in the Caribbean and Africa is a monumental task, but it is a major agenda item in”

the

“last decade of the 20th century”

to create a

“better basis for achieving a fully multicultural British society.”

The BCA has an extensive archive documenting the history of black people in the UK, from the African Roman emperor who was stationed at Hadrian’s wall—Septimus Severus—to black Georgians, the Windrush generation, and much, much more. It is a national resource that is critical to our understanding as a society, and vital for the sense of place and belonging of many black British people. Unusually for a national archive, the majority of the BCA’s core funding is now provided by the local council, Lambeth. This is neither appropriate nor sustainable, particularly in the context of local authorities’ shrinking budgets. The BCA needs stable core funding from the Government, commensurate with its national role, to enable it to do the work of outreach and interpretation and to secure it for the long term. I therefore call on the Minister to work urgently with ministerial colleagues in the Department for Digital, Culture, Media and Sport to identify and confirm core funding for the BCA as part of the Windrush 70 commemorations.

In the climate of uncertainty forged by Brexit in which we are currently living, and which in some areas means that we are seeing an increase in intolerance and hatred, we need to be proactive and assertive in our celebration of the contribution that migrants have made, and continue to make, to life in the UK. I therefore call on the Government to designate 22 June as Windrush Day—an annual event to remember our debt of gratitude to those who answered the call to come and help rebuild the UK, and whose contribution to our economy, public services and communities enriches the UK immensely. It should be a day to celebrate both our diversity and our common humanity.

There is much more still to do to ensure justice for the Windrush generation from the Home Office. Much has been said about the scandal in this Chamber in recent weeks, and there is more to say. Today, however, I will simply say this: justice for the Windrush generation is to be found in confirmation of the citizenship that they have always had, and in financial compensation for the hardship and indignities they have suffered. It must also be in a resetting of the dial for both our collective narrative and Government policy on immigration. We must reassert the British values that do not treat others with fear and suspicion, and instead welcome those who come to the UK to seek safety or contribute their skills, wherever they are from.

Finally, wherever inequality is still rooted in race, we have more to do. We must with urgency address the terrible increase in knife and gun crime that disproportionately affects young black men, and we must ensure that all our schools are properly funded and that there is equal access to the best universities for young people from all backgrounds. The disproportionate incidence of mental ill health among BAME communities must be addressed, and there are many other areas to address.

The recently published report by the Women and Equalities Committee on the Government’s race disparity audit highlighted a woeful lack of data collection on race and ethnicity. That makes it difficult to analyse and reach conclusions on the actions that need to be taken to address race inequality. We do know, however, that the austerity of the last eight years has been bad for advancing equality. Therefore, my final ask of the Government is that they ensure that public services that play the greatest role in increasing equality and tackling disadvantage—schools, housing, policing, youth services and the NHS in particular—are funded properly to enable them to keep on doing so year on year. The Windrush generation are extraordinary for their resilience, dignity, commitment and creativity, and Britain is indebted to them. Let us make this 70th anniversary into a lasting legacy by continuing to build a just, tolerant and equal society.

Customs and Borders

Yvette Cooper Excerpts

Thursday 26th April 2018 Commons Chamber

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

I beg to move,

That this House notes that the EU is the UK’s largest export market for goods, accounting for a total of £145bn of exports and £241bn of imports in 2016; further notes the Government’s expressed aim to secure the freest and most frictionless possible trade in goods between the UK and the EU after 29 March 2019; notes the importance of frictionless trade without tariffs, customs or border checks for manufacturers and businesses across the country who trade with the EU; further notes that the free circulation of goods on the island of Ireland is a consequence of the UK’s and Republic of Ireland’s membership of the EU Customs Union; in addition notes the Government’s commitment to (i), in the UK-EU joint report on progress during phase 1 of the Article 50 negotiations, the maintenance of North-South cooperation and the all-island economy on the island of Ireland, (ii) the Belfast Agreement implemented in the Northern Ireland Act 1998 remaining a fundamental principle of public policy and (iii) the continuation of unfettered access for Northern Ireland's businesses to the whole of the UK internal market; and therefore calls on the Government to include as an objective in negotiations on the future relationship between the UK and the EU the establishment of an effective customs union between the two territories.

This is the first of the debates chosen by the Liaison Committee, and it is on one of the most important issues on which Parliament must decide in the next six months. We did not choose this topic because we all agree—the Liaison Committee includes the hon. Member for Stone (Sir William Cash), and hon. Members can imagine the extent of the disagreement that he and I have on many of these issues. We chose this topic because we think it is an incredibly important issue and we are running out of time. The motion is tabled on behalf of 12 Committee Chairs, and it proposes an effective customs union in the interests of our manufacturing industry and of continuing to support peace in Northern Ireland.

We are running out of time. We are running out of time for Parliament to help shape negotiations, based on evidence heard by our Select Committees and discussions between Back Benchers. We are running out of time to hear from the Government about what they are going to do. The Government rightly say that they want frictionless borders and no extra burdens on business; they want to improve trade and to have no hard border in Northern Ireland, including no infrastructure at the border. However, there is still no clarity about what that means for our borders. Many of our Committees have looked in detail at some of the practical challenges, and the Home Affairs Committee has warned about the problems and challenges of bringing in huge border changes at speed, and with a lack of staff in place.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I sit on the Committee chaired by my right hon. Friend, and I wholeheartedly endorse the conclusions we came to regarding our serious worries about Government preparedness. Does she agree that not only is the border between Northern Ireland and the Republic of Ireland a serious issue that is yet to be resolved, but there is also a question whether there will be a maritime border between Wales and Scotland and the Republic of Ireland? The Home Secretary seemed to suggest that there would be customs officials at Welsh ports, but that is a completely unacceptable situation.

[Yvette Cooper]

My hon. Friend is right: there are so many unanswered questions and the clock really is ticking. We secured this debate to try to tease out those questions and get some answers, and to put forward some proposals for this debate. I also put on record apologies from the Chair of the Exiting the European Union Committee, my right hon. Friend the Member for Leeds Central (Hilary Benn), but that Committee is taking evidence in Berlin today.

Why put forward an effective customs union as part of the proposals? It means no tariffs on the goods we buy and sell with the European Union. It means no customs checks at the border. It is a crucial part of delivering the frictionless border for trade that the Government have rightly promised. It clearly does not solve all the problems and meet all the challenges that we face, but it is an important part—

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Does the right hon. Lady accept, though, that even with a customs union there would still be a need for checks at the border for things like product standards?

[Yvette Cooper]

The hon. Gentleman is exactly right. There are wider regulatory issues that need to be addressed. There is a wider debate about regulatory alignment. That is obviously particularly important as it affects Northern Ireland, but it will affect ports across the country as well. The focus of today’s debate is specifically around a customs union. There are a lot of other aspects to Brexit that we will need to continue to debate in this place.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

The Society of Motor Manufacturers and Traders announced today that there has been a 14% drop in the output of cars manufactured in this country over the past year, and emphasised that certainty over our negotiations and access to the EU market is essential for the future prosperity of that industry and our economy.

[Yvette Cooper]

My hon. Friend is exactly right, because the lack of certainty makes it extremely difficult for any employer to plan. I have discussed the subject with employers in my constituency, particularly manufacturers, and frankly any business that is involved in cross-border trade in any way is desperately concerned about the lack of certainty. The idea that new arrangements could have to be in place in less than 12 months’ time has an impact on investment; it has an impact on the decisions that employers—businesses—are making right now.

At Dover, 400 lorries an hour rumble on and off the ferries to France. In Ireland, 6,000 lorries and 8,000 vans whizz to and fro across the border, without even braking. From apples to aerospace, from Yorkshire woollens to Scottish salmon, Britain does more than £230 billion of export trade with European countries every year. Those businesses do not get stopped at the border, do not pay tariffs or submit extra forms. They can just sail on through. That is the frictionless trade that so many of our manufacturing jobs depend on.

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

In the right hon. Lady’s contacts with business, has she come across any businesses that are currently exporting, or intending to export, to the EU that are looking forward to filling in all the customs forms that will be required once we have left?

[Yvette Cooper]

Funnily enough, I have not, and I doubt that many of us have either, because for those employers—those businesses—this goes much wider than simply what happens at the border. It extends to all the bureaucracy, all the paperwork, and all those additional burdens and costs that they could face outside a customs union.

[Thelma Walker (Colne Valley) (Lab)]

Businesses in my constituency of Colne Valley, like others across the country, are deeply concerned about the UK’s walking away from our largest export market. Does my right hon. Friend agree that a customs union with the European Union would offer the best protection to businesses in each of our constituencies?

[Yvette Cooper]

I do agree with that and it is, interestingly, the view of both the CBI and the TUC that a customs union is particularly important for the future of our economy and the future of trade. Hon. Members can see why it would matter at the border. James Hookham, the deputy chief executive of Britain’s Freight Transport Association, has warned that an average delay of two minutes as a result of new Brexit spot checks at Dover would create a tailback of 17 miles. In a world of just-in-time production and retailing, when companies hold less stock, when supply chains run across borders and back again, it makes even small delays costly.

[John Redwood (Wokingham) (Con)]

Can the right hon. Lady explain how it is that we have such a smooth-running, fast-growing and very large trade with the rest of the world, on World Trade Organisation terms, where we have to pay EU tariffs, and we are not allowed to negotiate them down all the time we are a member of the customs union?

[Yvette Cooper]

I think the right hon. Gentleman is simply making the point that our trade was growing, within the current arrangements, with the rest of the world. That seems to be a good thing, and suggests that perhaps, therefore, we can carry on increasing our international trade and our global trade, even within customs union arrangements.

[Anna Soubry (Broxtowe) (Con)]

Would it not also be the case that, as a country that champions free trade, we have seen the reduction of barriers with those other non-EU members, which may explain the growth? Does the right hon. Lady agree that it seems rather perverse that, at a time when we want to increase free trade, we are going to put up a whole load of barriers to stop access, in the best existing free trade area in the world?

[Yvette Cooper]

The right hon. Lady is exactly right. Where we currently have good free trading arrangements we should cherish them, because the truth is that it is getting harder to negotiate new trade deals. The politics of trade deals has become more complex, as communities across different countries become more worried about the losers and winners of big changes to trade arrangements. At a time when it could take very many years to negotiate new trade arrangements, if we pursue the idea of ripping up our existing ones before the conclusion of such negotiations it will be deeply damaging to many of our jobs and communities.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

In answer to the right hon. Member for Wokingham (John Redwood), I am struggling to think of a country that we have a ro-ro ferry arrangement with that is not in the single market—which we are going to have very soon, if we follow his direction.

[Yvette Cooper]

Unfortunately, I did not catch the beginning of the hon. Gentleman’s intervention. May I ask him to repeat it?

[Angus Brendan MacNeil]

In answer to the right hon. Gentleman, I am struggling to think of a trading partner that we have, outside of the single market and customs union, that we have a ro-ro arrangement with, and I think that would be the answer to his question.

[Yvette Cooper]

The hon. Gentleman is exactly right. Not only that, but those other countries that we might seek to get alternative trade arrangements with are further away, and when it comes to manufacturing industry in particular, geography matters—gravity matters. The best opportunities and the greatest markets will be those that are closest, especially in a world of just-in-time production where you might need to get supplies very rapidly into your factories or into your retailers.

[Sir Desmond Swayne (New Forest West) (Con)]

The European Union is a customs union. The right hon. Lady has spoken of preserving our existing arrangements, but the motion speaks of the establishment of a customs union. Can she explain what the difference might be between “the customs union” and the customs union that she envisages?

[Yvette Cooper]

Obviously, the customs union is a part of the European Union; that is the arrangement that is in place at the moment. I think we need a customs union because once outside the European Union you cannot have “the customs union”; but we are in danger of getting ourselves tangled up on the definite and indefinite article. We chose the words “an effective customs union” in the motion to avoid disputes about grammar, and to get to the substance. We want an arrangement that includes no tariffs, but has frictionless borders and, crucially, a common external tariff. That is the immensely important point that I want to cover now.

[Albert Owen (Ynys Môn) (Lab)]

My right hon. Friend mentioned trade through ports. She is aware that my constituency is on the frontline of Brexit, and is the busiest port with the Republic of Ireland—400,000 lorries a year pass through it. This is not scaremongering: already, Irish companies are making contingency plans to trade directly with mainland Europe, bypassing Britain altogether, on a business case.

[Yvette Cooper]

They are, and it is perhaps unsurprising that they should do so, because businesses will make investments, they will take a precautionary approach, and they will look for the best way to protect their trade at a time of such huge uncertainty about what might happen to trade that we want to pass through the UK. We will see more and more of those consequences, therefore, particularly if we do not get answers and decisions soon.

[Rachael Maskell (York Central) (Lab/Co-op)]

Does my right hon. Friend agree that the biggest threat of all is the threat to jobs, as businesses are making their investments elsewhere in mainland Europe as opposed to the UK now, let alone in the future?

[Yvette Cooper]

I do, and I think this is also particularly about our manufacturing communities, and many of our towns across the country, where those jobs are so important.

[Kevin Hollinrake]

rose—

[Yvette Cooper]

I will give way to the hon. Gentleman, and then I want to make progress, as a lot of Members want to speak.

[Kevin Hollinrake]

I am grateful. The right hon. Lady has been very generous in taking interventions. Earlier, she referred to the potential for tailbacks as a result of checks. What I was trying to get across in my earlier question was that if we were still in the customs union but not the single market, checks would still be needed for product standards, so is she actually proposing membership of both the single market and the customs union, and if she is, is there any point in leaving the European Union at all?

[Yvette Cooper]

Look, there will be some for whom this debate is partly about what happened in the referendum. Others will want to have nothing to do with anything that is linked to the European Union in any way. I am looking to see where the consensus can be in this House, and I think there is a possibility of a consensus around a customs union. We can have a separate debate another time on the wider regulatory alignment—on which the hon. Gentleman and I have particular views—and on what other aspects of regulatory alignment, or of a single market, we may each care about. For now, the focus should be on a customs union, which does not prejudge the conclusions of some of the wider questions.

I want to say something about the common external tariff, because I think this bit gets lost too often. If we are in a customs union, we have the common external tariff, the consequence of which is that not only all those products, but all the components and agreements of the products can spin back and forth across different borders within the EU and not have to face rules of origin checks. Many businesses are particularly concerned about the rules of origin checks, because that means that they have to account for where the different ingredients come from. If they suddenly change the mix of ingredients in a product or if they suddenly change the source of their supply, they might also suddenly have to change their evaluation of the rules of origin and fill in different forms. That is a huge ongoing burden for businesses, employers and particularly for manufacturers. It is not just a one-off cost or an easy thing about ticking an online box.

[Kirsty Blackman (Aberdeen North) (SNP)]

I am really pleased that the right hon. Lady secured this debate. The point she is making about the importance of the shared external tariff is absolutely vital, because of the rules of origin. Does she share my concern that some Members in this House seem to be wilfully misunderstanding what a customs union really means and cannot cope with the idea that this will result in a huge amount of extra paperwork?

[Yvette Cooper]

That is right. If a manufacturer’s components come in from China but then, as part of the manufacturing process, the product moves to France for further manufacturing, and the components come back again and are then sent somewhere else, at every stage those calculations would have to be done. At the moment, because we all have the common external tariff, when the components come in from China or elsewhere in the world, those rules of origin checks do not need to be done after the manufacturing process and before it is sold on. It does not matter where the widgets come from or where the gadgets go; we have the common external tariff, which makes that process much, much smoother than it would otherwise be.

[Geraint Davies (Swansea West) (Lab/Co-op)]

My right hon. Friend will be aware that third countries represent some 12% of our exports via the EU. Already, South Korea, Australia and Chile have said that they want to renegotiate the trade agreements, including tariffs, if we are not in the customs union, and many more may. Is she fearful that we will end up with higher tariffs, worse terms of trade and fewer jobs?

[Yvette Cooper]

That is right. I think there is common agreement that we want no tariffs with the EU as part of this—I think that is shared across the House—but we also want to ensure that we do not end up with worse terms of trade with the rest of the world, rather than having the promises we have had that somehow things will magically be better.

[Ruth George (High Peak) (Lab)]

My right hon. Friend has mentioned that businesses are very concerned about this issue. I met over 20 businesses in my constituency that provide nearly 2,000 incredibly valuable jobs in my rural area. They are very concerned that they are already seeing European competitors coming in and taking contracts from under their noses. They cannot compete because they do not have the certainty that the UK will be in a customs union this time next year.

[Yvette Cooper]

That goes to the heart of the situation. It is partly about certainty and partly about knowing that businesses can smoothly trade in the way that they have been doing, and that we can build on that trade and not end up with new barriers in place. It is manufacturing where this matters most—manufacturing is still the spine of our economy and so much else depends on it. For so many of our towns, such as those in my constituency and across the north and midlands, manufacturing is still at the heart of the local economy, and it could be hugely jeopardised if we end up with a damaging change to the terms of trade.

[Stephen Doughty]

My hon. Friend is being very generous in giving way. Unite––the union shop stewards who came to visit me from Rolls-Royce––made exactly that point. They explained the real damage that could be done by this to the aerospace industry in particular and the long and detailed supply chains that stretch across not just the whole of the UK, but the whole of the European Union.

[Yvette Cooper]

That is right. Many of these manufacturing towns and areas may well have voted to leave the European Union, but they will also argue strongly for support for manufacturing jobs within their communities. We should be listening to their voices.

[Kate Hoey (Vauxhall) (Lab)]

I thank my right hon. Friend for giving way; she has been very generous. If she wants to unite the House on staying in “the” customs union, or “a” customs union, would it not be much better to show the European Union that we are united in wanting a free trade deal, instead of giving the EU the opportunity to play us off against one another?

[Yvette Cooper]

A customs union should be at the heart of that free trade agreement. Whatever the trading or future partnership agreement should be with Europe ––and we clearly need a close, continuous trading arrangement––my argument is that, for the sake of manufacturing and of Northern Ireland, a customs union should be the central part of it. That is what is in our interests.

[Nic Dakin (Scunthorpe) (Lab)]

My right hon. Friend is right when she says that small towns such as the ones that I represent—Bottesford, Kirton and Scunthorpe—voted to come out of Europe, but they did not vote to lose out when that happened, and they will be looking for an arrangement that makes sure they do not.

[Yvette Cooper]

That is exactly right. They want a Brexit deal that is good for manufacturing, and to be honest, any deal that rejects a customs union is going to hit manufacturing across Britain.

[Mr Dominic Grieve (Beaconsfield) (Con)]

To go back to the question that the hon. Member for Vauxhall (Kate Hoey) asked, any free trade agreement inevitably comes with strings attached. If one is going to do a free trade agreement with 27 member states that co-ordinate their own trade, I simply do not see how we will escape the strings that are obligatory if such an agreement is going to work. The trouble is that it then starts to look very much like a customs union, because that is what, in reality, it has to be if it is to work at all.

[Yvette Cooper]

The right hon. and learned Gentleman is right: in the end, any agreement has obligations attached to it, as well as enforcement mechanisms.

[Angus Brendan MacNeil]

Will the right hon. Lady give way?

[Yvette Cooper]

I will make this one of the final interventions. I want to deal with the objections that people have raised to a customs union, because it is important to respond to those.

[Angus Brendan MacNeil]

I am very grateful. To build on the point that the right hon. and learned Member for Beaconsfield (Mr Grieve) made, a free trade agreement in this context is highly misleading. The UK would not have a free trade agreement, but a “less trade” agreement, and when we talk about free trade agreements with the rest of the world, we mean bits of trade agreements. Trade will not be as free as it currently is in the European Union.

[Yvette Cooper]

There is no doubt about that. If we have no customs union, there will be less free trade than we currently have, and that is where the manufacturing industry is at risk.

Manufacturing is very important in my constituency, and we are very proud of having Haribo there. I have been to visit, and I particularly enjoyed doing the quality-control checks on the Starmix—we made sure that they were particularly rigorous and tried many times to make sure that the Starmix was very top quality that day. The chief executive of Haribo said clearly to me:

“If a truck loaded with materials that we desperately need to make a product is held up or not released at border control for a day or two, the worst case scenario would be production grinding to a halt”.

That is the reality.

We know, too, that this issue is particularly important for the Northern Ireland border. Ministers have rightly said that there should be no hard border between Northern Ireland and the Irish Republic or between Northern Ireland and Britain. Parliament has a responsibility to make sure that that happens.

[Lady Hermon (North Down) (Ind)]

Will the right hon. Lady take a moment to reflect on the statement that the Prime Minister made yesterday at Prime Minister questions when she was happy to endorse the idea, peddled by the Government again, that no deal would be better than a bad deal? That is a very dangerous strategy, and I say that as someone who represents a Northern Ireland constituency. If we have no deal, we will inevitably have a hard border in Northern Ireland, and we will see the return of violence in Northern Ireland.

[Yvette Cooper]

I have huge respect for the hon. Lady’s views on this, and I agree. We have to show some responsibility. This is not something on which we can simply trade political slogans or vote for an abstract. We have to be very honest and real about the consequences. The removal of the security and economic checks at that border and the growing economic integration between Northern Ireland and the Republic, as well as with the rest of the United Kingdom, are an important part of ending a conflict in which so many people have died. We have a huge responsibility to future generations who will not forgive us if we just rip all that up and throw it away because we did not face the facts.

[Hywel Williams (Arfon) (PC)]

Will the right hon. Lady give way?

[Yvette Cooper]

May I make some progress first?

Three specific objections to a customs union tend to be presented. First, people say that we do not need a customs union because there are alternatives, usually based on new technology. Secondly, they argue that we will be better off outside the customs union, and that being outside is a price worth paying for the benefits that we will enjoy as a result. Thirdly, they make an emotional appeal, claiming that it is somehow at the heart of our sovereignty or the Brexit vote. I disagree with all three counter-arguments, and I will deal with each of them briefly.

Let me deal first with the claim that a customs union is not needed and we can solve everything with new technology instead. So far the Government have put forward two alternatives: a customs partnership and “max fac”, which seems to be the latest name for a streamlined arrangement described as “maximum facilitation”. The customs partnership—to be honest, I had to struggle to get my head around it—seems to involve our collecting EU tariffs at the border, tracking products, and then paying some of the money to the EU. I understand that both the Secretary of State for Exiting the European Union and Brussels have agreed that it is unworkable. It is quite a triumph for the Government to have come up with a proposal whose unworkability has managed to unite Brussels and the Brexit Secretary and those whom he defends.

The alternative is speeded-up customs arrangements at the border. The idea is that all the customs forms would be filled in online, customs checks would be carried out at the trader’s own premises rather than at the border, and there would be cameras and automated number plate recognition. An extreme version of that was proposed by the Financial Secretary, who compared it with the congestion charge between the Islington and Camden borders.

Let me be clear: I think we could do a great deal more with new technology at our borders. In the interests of trade, we should be improving the technology, and the use of technology, at our borders and at borders throughout Europe and the world. However, there is still a limit to how far we can go. First, it will take a long time and a lot of investment to roll out many elements of the technology. Secondly, in the case of the congestion charge, the cameras identify only the cars, not what was in them, so cameras do not solve all the problems involving checks. Thirdly, we would have to rely on the willingness of France, Belgium, Ireland and other countries to provide the same level of investment in the technology at the same pace.

The proposal also assumes a higher level of tolerance of smuggling and evasion of tariffs. The Prime Minister, for example, has suggested that in Northern Ireland 80% of trade—the micro, small and medium-sized businesses—could be exempt from all checks. That level of exemption would require agreement with other countries. There is also the question of how enforcement would take place to ensure that there was no systematic evasion of tariffs.

[Antoinette Sandbach (Eddisbury) (Con)]

Would that not also be in breach of World Trade Organisation rules? It would require exemption in all the most favoured nation states, effectively creating a massive inability to monitor huge amounts of goods coming into this country.

[Yvette Cooper]

The hon. Lady is right. It raises huge questions about the rule of law, about how the system would be enforced, and about how it could operate in a sensible and fair way without being opened up to challenge from other areas.

Crucially, the technology approach relies on cameras. I have no doubt that part of the response at Dover will be the introduction of new automated number plate recognition and other such mechanisms. As I said to the Prime Minister before Christmas, cameras are infrastructure. If we add a whole load of cameras to the Northern Ireland border, we will still be creating the infrastructure and—crucially—the targets that the police fear will become a focus for dissident groups who want to disrupt the peace process. That, I understand, is why everyone, including the Government, has concluded that cameras at the Northern Ireland border are not a sensible solution and should not be part of our approach.

[Sir Hugo Swire (East Devon) (Con)]

I am listening closely to what the right hon. Lady is saying, but there are already cameras for number plate recognition at all the ports on the UK mainland, recording traffic to and from the island of Ireland.

[Yvette Cooper]

The right hon. Gentleman will be aware that the concern relates to what happens around the border between Northern Ireland and the Irish Republic, and the introduction of new infrastructure at that border, especially such symbolic infrastructure, and especially anything that would increase the sense of there being targets for dissident organisations. We do not want them to become more active and have more to focus on.

[Hywel Williams]

When the Exiting the European Union Committee visited South Armagh a couple of months ago, everyone we met, from Sinn Féin councillors to the deputy chief constable, agreed that there should be no infrastructure on the border, for the very reason that the right hon. Lady outlined.

[Yvette Cooper]

It is significant that the Northern Ireland Affairs Committee concluded last month that there were no technical solutions anywhere in the world “beyond the aspirational” that would remove the need for physical infrastructure at the border.

[Tonia Antoniazzi (Gower) (Lab)]

The Northern Ireland shadow team, of which I am a member, paid a visit to Stormont. We met the leaders of all the parties, and they all expressed their concerns about the barrier. There must be no barrier at any price.

[Yvette Cooper]

I completely agree; I think that that is immensely important. It brings me back to what I said about our sense of responsibility. It is no good our pretending to be in a parallel universe when all the things that we might want to be true simply are not. We must face up to the world as it is, and to our responsibility and the consequences of any decisions that we make in the House for a process to build peace that has been going on for so many years. We are only the custodians of that process, and we must not be the ones who put it in jeopardy.

Another crucial point is that even if all that technology were possible—even if it were possible to solve all those problems at the border—it would not remove the need for rules of origin checks if we were not party to the common external tariff. It would not remove the bureaucratic burdens that would be imposed on manufacturing businesses every time they changed ingredients or components, because those ingredients and components will be subject to different external tariffs if we are outside a customs union, and the businesses will then have to account for their origins. That is why even new technology, however fabulous and whizzy it becomes in the years ahead, cannot solve the wider problem of what will happen if we have no customs union.

The second argument advanced by those who object to the customs union is that being outside will be worth it, because the benefits of not having a common external tariff and being able to have our own new trade agreements are somehow better than the benefits of being in the customs union. The problem is that the evidence—the Government’s own EU exit analysis, and the findings of the National Institute of Economic and Social Research—shows that the potential benefits of new trade treaties with far-flung countries, even if they could be created quickly, will still be outweighed by the losses resulting from the rules of origin checks and the friction at the border.

[Stewart Hosie (Dundee East) (SNP)]

When members of the Treasury Committee were in the United States, we were told one thing consistently by almost everyone we spoke to, namely that when it came to negotiating the new, alternative free trade agreements in which those in favour of Brexit put all their stock, the UK would have to put everything on the table and the US would have to put nothing on the table. Does that not lie at the heart of this issue? Our position will be substantially weakened, and nothing that the United Kingdom can negotiate will compensate for the losses that it is likely to suffer.

[Yvette Cooper]

The hon. Gentleman is right. Other Members will have more evidence and experience than I when it comes to all the detailed arguments, but if we are a smaller market offering to trade, we will be in a weaker position to get a good deal than if we are part of a larger argument in that trade negotiation. Trade deals can take a long time, regardless of the best intentions. There can also be winners and losers, which means that even in this country it may take us a long time to agree on whether new trade agreements are right or wrong.

For example, consumers might want to enjoy more and cheaper New Zealand lamb, but Welsh farmers might take a different view. Industry might be able to get cheaper Chinese steel, but what about the consequences for the British steel industry? If the price of a US trade deal is lower environmental standards or giving US private healthcare companies access to, and the right to aggressively compete for, contracts in our NHS, many of us will want nothing at all to do with that. The truth is that any trade agreement will be complicated to agree in this place, never mind with countries across the world.

Moreover, as the CBI has pointed out, we can increase our international trade—and our EU trade—while still in a customs union with the EU and without having to spend years negotiating complex new treaties. As the CBI points out, Germany currently sells four times as much as we do to China. We should be trying to make the most of those opportunities.

Research by the National Institute of Economic and Social Research shows that the overall trade increase from possible future agreements with the USA, Canada, Australia and New Zealand would amount to less than 3% of our current trade. Are we really going to rip up all the benefits of what we have in a customs union for the sake of a 3% increase that will not be sufficient to balance what we will lose?

[Anna McMorrin (Cardiff North) (Lab)]

I thank my right hon. Friend for giving way; she is being very generous. Analysis by the Cardiff Business School and supported by the Welsh Labour Government states that our economy is best protected by membership of the customs union. Wales is currently attracting record inward investment, but businesses in my constituency are very worried due to the lack of certainty from the Government.

[Yvette Cooper]

My hon. Friend is exactly right. This is affecting businesses all over the country.

I want to make one final point. I have taken a lot of interventions because I know that many Members will not get the chance to speak later and they want to give their views. I am conscious, however, of the time. Time is running out in the negotiations and the clock is even sharper today.

The final reason given by those who object to a customs union is that it is a point of principle. They say that it is about our sovereignty and that that was at the heart of the Brexit vote. Even if it is bad for us, it is a point of principle that we should be able to set our own tariffs and sign our own trade deals, and that is somehow at the heart of the taking back control that Britain voted for.

I find that argument illogical as well as inaccurate because, as the right hon. and learned Member for Beaconsfield (Mr Grieve) said, any trade treaty involves signing away some sovereignty. Any kind of trade agreement involves legally binding conclusions and an independent dispute resolution procedure, and once the state has signed up to such an agreement, it might not be able to stop, for example, a US company taking contracts with the NHS or whatever we might have signed away as part of it.

Nobody wants to defend a principle of sovereignty whereby we never do any trade agreements with anybody or sign anything away. We should not do that because it would prevent us from getting a good deal with Europe that would help our manufacturing industry.

[Helen Goodman (Bishop Auckland) (Lab)]

Will my right hon. Friend give way?

[Yvette Cooper]

I will not, because I am conscious of time.

We did not do this simply to create a new Department for trade and give certain hon. Members a sign on the door. We did not have the debate so that the only thing we would gain was a label of sovereignty or trade. This has to be about what really happens in communities across the country. I have not heard anyone who voted to leave say that they wanted to hit our manufacturing industry at any cost. I have heard from leave voters, as well as remain voters, who support getting a good manufacturing deal, the Northern Ireland peace process and a customs deal.

This is about the kind of country we want to be. Not for me the kind of country where the only thing that matters is a sign on the door that says, “We do our own trade deals.” Instead, I want a country that supports our manufacturing industry and communities and our historic obligations for peace on the island of Ireland. That is why I support a customs union.

[Several hon. Members rose—]

--- Later in debate ---

[Yvette Cooper]

This has been an excellent debate. We have had substantial speeches drawing on huge evidence and experience from across the country and from so many Select Committees, but what the Minister—he did the best he could—delivered in response was not up to the debate. He had lines to take, the words on the page, but in the end there is no meaning behind them, no evidence that underpins them and no future that we can build on them. In the end, I think in his heart he knows that. That is why I urge the Government to bring forward a proper debate on legislation, on amendments. Give the House the opportunity to steer the objectives of the negotiations before it is too late. This is about the future of our whole country, the future of our prosperity, the future of our manufacturing industry and whether we have peace within our borders and across our borders. It is immensely important for our entire future, and too important to be simply left to a massive row and crisis afterwards, when it is too late. The Minister knows, and the Government know, that time is running out. It is time for the Government to stop running away. Let us have this debate; let us support a customs union.

Question put and agreed to.

Resolved,

That this House notes that the EU is the UK’s largest export market for goods, accounting for a total of £145bn of exports and £241bn of imports in 2016; further notes the Government’s expressed aim to secure the freest and most frictionless possible trade in goods between the UK and the EU after 29 March 2019; notes the importance of frictionless trade without tariffs, customs or border checks for manufacturers and businesses across the country who trade with the EU; further notes that the free circulation of goods on the island of Ireland is a consequence of the UK’s and Republic of Ireland’s membership of the EU Customs Union; in addition notes the Government’s commitment to (i), in the UK-EU joint report on progress during phase 1 of the Article 50 negotiations, the maintenance of North-South cooperation and the all-island economy on the island of Ireland, (ii) the Belfast Agreement implemented in the Northern Ireland Act 1998 remaining a fundamental principle of public policy and (iii) the continuation of unfettered access for Northern Ireland’s businesses to the whole of the UK internal market; and therefore calls on the Government to include as an objective in negotiations on the future relationship between the UK and the EU the establishment of an effective customs union between the two territories.

[Mr Chris Leslie (Nottingham East) (Lab/Co-op)]

On a point of order, Mr Speaker. Now that the House has resolved to call on the Government to include as part of their negotiating objectives that the United Kingdom should remain in an effective customs union with the European Union, can you clarify whether the convention set out by the Leader of the House in respect of Opposition day motions that are passed without a Division and become resolutions of the House, whereby the Government have committed to report and reply after three months, will apply in respect of the resolution that the House has just passed?

I say that because this is the first example of a Liaison Committee motion passed in this form. We have no guarantee that legislation will be forthcoming before the summer recess, but that three-month period, as I understand the convention, would put a requirement on the Government. Now that the House has resolved the matter of the customs union—it is the default, consensus view of this House—will you confirm that the Government’s convention should apply to such resolutions? This talk about the non-binding nature of resolutions is very dangerous. If the House has come to a resolution, it means something. The Government are surely under an obligation to come and explain how they intend to acquit themselves in response to that resolution.

Leaving the EU: UK Ports (Customs)

Yvette Cooper Excerpts

Monday 19th March 2018 Commons Chamber

[Mel Stride]

My hon. Friend makes an extremely important point. As we know, there is a trade deficit in goods between ourselves and the EU, so it is clearly in the EU’s interests—and, particularly in the case of Dover and Calais, in France’s interests—to make sure that trade continues to flow smoothly.

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

The Minister referred to automated number plate recognition. Will he confirm that he has been discussing with the port of Dover extensive cameras, which could be part of his proposed technological solution? Will he also confirm that the Government rule out having such cameras at the Northern Ireland border, because they have ruled out any physical infrastructure at that border?

[Mel Stride]

The right hon. Lady is right to say that the Government have clearly ruled out any infrastructure at the Northern Ireland border. In the discussions on Dover—not necessarily with myself directly, but through officials—all those options, including the number plate recognition to which she refers, have indeed been talked about.