20/11/2017

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0:00:00 > 0:00:02question, Gordon Marsden. -- cooperation and good humour.

0:00:14 > 0:00:20Mr Speaker, although the November recess...He needs to blot out the

0:00:20 > 0:00:31request for a statement. -- blurt. To make a statement on the Student

0:00:31 > 0:00:39Loans Company.Thank you. The Student Loans Company's performance

0:00:39 > 0:00:46has improved year-on-year for the past six years. SLC services account

0:00:46 > 0:00:50for around 1.8 million applications per year. It responds to around 4.5

0:00:50 > 0:00:55million phone calls from borrowers and has over 6 million repaying

0:00:55 > 0:01:02order to repay customers with loans totalling more than £100 billion. In

0:01:02 > 0:01:04addition, it has delivered a range of new products for Government on

0:01:04 > 0:01:09time and successfully. This includes postgraduate loans and to provide

0:01:09 > 0:01:15advanced learner loans. This year, the SLC has processed over 1.4

0:01:15 > 0:01:21million applications for student funding. So far in this academic

0:01:21 > 0:01:26year, SLC has paid out approximately £2.5 billion in maintenance funding

0:01:26 > 0:01:31and £2 billion in tuition fee payments to providers. Customer

0:01:31 > 0:01:38satisfaction remains high, at around 85%. And for borrowers in repayment,

0:01:38 > 0:01:44at around 72%. It receives complaints, Mr Speaker, from just

0:01:44 > 0:01:520.1% of its 4.7 million customers. SLC is of course constantly looking

0:01:52 > 0:01:56to learn lessons from what is a low level of complaints and to use these

0:01:56 > 0:02:02complaints to improve the quality of its services. In addition, the

0:02:02 > 0:02:04Department for Education is also working closely with the Student

0:02:04 > 0:02:07Loans Company on a range of initiatives that will further

0:02:07 > 0:02:11improve the user experience for SLC's borrowers and staff

0:02:11 > 0:02:16engagement. Proposals currently being developed include greater

0:02:16 > 0:02:21digitisation of the student loan application and repayments processes

0:02:21 > 0:02:28and investment in more efficient SLC systems. Following two independent

0:02:28 > 0:02:30investigations into allegations about aspects of his management and

0:02:30 > 0:02:35leadership, the SLC has terminated Stephen Mooney's contract as Chief

0:02:35 > 0:02:45Executive Officer of the SLC. -- Steve Lainey. Having taken into

0:02:45 > 0:02:47account the findings of these investigations, they concluded that

0:02:47 > 0:02:55the best practice was not being upheld by Steve Lainey initial. The

0:02:55 > 0:03:02SLC board have acted swiftly and have instituted Peter Lerner as

0:03:02 > 0:03:07interim CEO with effect from the 27th of November. He will remain in

0:03:07 > 0:03:14post until a permanent appointment is made. He was formerly chief

0:03:14 > 0:03:18Executive of the Institute for apprenticeships and the skills

0:03:18 > 0:03:21funding agency. He has a long and successful career in a number of

0:03:21 > 0:03:26senior leadership positions in the Department for Education and partner

0:03:26 > 0:03:28organisations. I have every confidence he will provide the drive

0:03:28 > 0:03:33and stability the Student Loans Company requires at this time as we

0:03:33 > 0:03:39recruit a permanent chief Executive. Although the November recess, with

0:03:39 > 0:03:52the announcement being snuck out day as there was a resignation from the

0:03:52 > 0:03:56Cabinet. Can I ask the Minister Y in his letter to me on the 17th of

0:03:56 > 0:03:59October, sent six weeks after I wrote to him on the SLC, the

0:03:59 > 0:04:05minister referred to the suspension of the chief Executive as a neutral

0:04:05 > 0:04:08act and did not imply wrongdoing, when he was fully aware of

0:04:08 > 0:04:12allegations against Steve Lainey engine when the Mac as is written

0:04:12 > 0:04:17reply to me. We also publish the former 's review of the SLC given

0:04:17 > 0:04:20two months before the suspension, where Steve Lainey was rated

0:04:20 > 0:04:28outstanding. In that report, was a minister -- the Minister aware that

0:04:28 > 0:04:32there was a reporter said he was making a real and positive

0:04:32 > 0:04:36difference the Student Loans Company and was a popular leader before the

0:04:36 > 0:04:42decision was made to sack him? Will republish the internal

0:04:42 > 0:04:44investigation, in which 5258 allegations against him were

0:04:44 > 0:04:47dismissed. So that all members can understand the issues at the SLC. Mr

0:04:47 > 0:04:51Speaker, who appointed the chairperson and the other three

0:04:51 > 0:04:55board members of the SLC and what other criteria processes for those

0:04:55 > 0:05:02appointments? And you confirm that Simon Devonshire, the board member

0:05:02 > 0:05:08who had an dismissed the appeal, is also a member of the same venture

0:05:08 > 0:05:14capital trust?

0:05:14 > 0:05:20The lack of proper cooperation between the SLC and HMRC has led to

0:05:20 > 0:05:25significant debt.Can he tell us how many overpayments there have been

0:05:25 > 0:05:32since 2015, 2016? Given this is the situation, I have just been told the

0:05:32 > 0:05:35government has tacitly admitted their failure in this area by saying

0:05:35 > 0:05:41that from 2019 onwards, HMRC and the SLC will co-operate on this matter.

0:05:41 > 0:05:45It does not address the question of Mr Lamy and the permanent secretary

0:05:45 > 0:05:52at the HMRC blaming each other on this issue. Mr Lamy has claimed he

0:05:52 > 0:05:56had asked for updates that HMRC would not share. Who is telling the

0:05:56 > 0:06:03truth? BBC Panorama raised issues about private dividers were students

0:06:03 > 0:06:06are fraudulently enrolled in courses in order to claim loans. How much

0:06:06 > 0:06:13money has been paid to students who were subsequently declared to be

0:06:13 > 0:06:17ineligible in their last four or five years? What mechanisms are in

0:06:17 > 0:06:22place to reclaim the money? In the light of all this, will the

0:06:22 > 0:06:27government suspend the sale of the future student loan book? Interest

0:06:27 > 0:06:33rate thresholds on student debt will cost £175 million by 2020. Can he

0:06:33 > 0:06:38tell us where the money will come from? With tens of thousands of

0:06:38 > 0:06:42graduates footing the bill for SLC areas, what confidence can the

0:06:42 > 0:06:46Parliament have in the confidence of this minister who is the key

0:06:46 > 0:06:52shareholder of the Student Loans Company?Mr Speaker, I would

0:06:52 > 0:06:57encourage the honourable member not to denigrate the hard work of the

0:06:57 > 0:07:01dedicated public servants of the Student Loans Company who are

0:07:01 > 0:07:07undertaking a vital task in securing the finance which young people and

0:07:07 > 0:07:11learners in this country need to pursue higher education. They are

0:07:11 > 0:07:19doing so in a successful way. Fewer than 0.1% of SLC's 4.7 million

0:07:19 > 0:07:23customers complained each year. They are delivering an important service

0:07:23 > 0:07:30and he should support them rather than run them down. Mr Speaker, the

0:07:30 > 0:07:33honourable member asked about a number of matters. He asked about

0:07:33 > 0:07:41the investigations that led to the dismissal of the chief executive of

0:07:41 > 0:07:46the Student Loans Company. The concerns were brought to the SLC

0:07:46 > 0:07:53board's attention in May and to the attention of the Department for

0:07:53 > 0:07:58Education. We learnt about this in May. I learn about it in May, as I

0:07:58 > 0:08:04have just said. The two investigations were immediately set

0:08:04 > 0:08:08in motion to get to the bottom of the allegations which the SLC board

0:08:08 > 0:08:14had received. One was led by the government internal audit agency and

0:08:14 > 0:08:18the other was led by Sir Paul Jenkins, formerly Treasury Solicitor

0:08:18 > 0:08:23and head of the government legal services. They concluded that Mr

0:08:23 > 0:08:27Laney had not shown the leadership which would be expected of someone

0:08:27 > 0:08:33in that role and accordingly the SLC board took the decision that he

0:08:33 > 0:08:36should no longer continue in that role and the Department for

0:08:36 > 0:08:41Education as a consequence of the SLC's decision took the decision to

0:08:41 > 0:08:48relieve him of his responsibilities as accounting officer of the SLC. Mr

0:08:48 > 0:08:52Speaker, the honourable member asked about an eligible payments, some of

0:08:52 > 0:08:55which were highlighted by the Panorama programme that came out a

0:08:55 > 0:09:00few days ago. He will be, I am sure, interested to know that the level of

0:09:00 > 0:09:04ineligible payments made to alternative providers has been

0:09:04 > 0:09:11sharply falling in recent years. In fact, it has fallen by over 80%

0:09:11 > 0:09:21since 2012, 2013, from about 4% of all payments to 0.5% of all payments

0:09:21 > 0:09:28in the 2015-16 year. This rate is low. Of course we want to eliminate

0:09:28 > 0:09:33fraud wherever we can identify it, but this is a low rate of ineligible

0:09:33 > 0:09:38payments to these providers. In fact, it is a rate which is now no

0:09:38 > 0:09:46higher than the average across the other higher education funding

0:09:46 > 0:09:50system. I would not use this as a means of running down the new

0:09:50 > 0:09:54entrance to our higher education system, which is something he often

0:09:54 > 0:09:58does from the dispatch box because it cannot be used to support that

0:09:58 > 0:10:02sort of attack. This reduction in the level of ineligible payments is

0:10:02 > 0:10:11the direct consequence of the controls which the Department for

0:10:11 > 0:10:13Education have been putting in place to ensure that public money is not

0:10:13 > 0:10:21abuse. Mr Speaker, we do take the issue of overpayments extremely

0:10:21 > 0:10:23seriously and the honourable member mentioned some of the steps we are

0:10:23 > 0:10:32taking. We do want to see close and effective cooperation between HMRC

0:10:32 > 0:10:37and SLC so that we avoid the risk to the extent we possibly can of

0:10:37 > 0:10:42students overpaying when they repaid. I understand that the

0:10:42 > 0:10:46Chancellor of the Exchequer will be considering this issue further in

0:10:46 > 0:10:50the budget just later this week so he might want to wait a bit to see

0:10:50 > 0:10:55what is in the contents of the budget for further details. We are

0:10:55 > 0:10:59committed to improving the interface between HMRC and the Student Loans

0:10:59 > 0:11:04Company. I would remind him that we do ensure that all borrowers as they

0:11:04 > 0:11:08enter the last two years of their repayments are given the opportunity

0:11:08 > 0:11:13to move to a direct debit system of repayments and eliminate almost all

0:11:13 > 0:11:20risk altogether of repayment.Mr Robert Halfon. Thank you, Mr

0:11:20 > 0:11:24Speaker. I welcome the efforts the Minister is taking to reform the

0:11:24 > 0:11:31Student Loans Company and he will know that there is a value for money

0:11:31 > 0:11:34enquiry into universities. As well as looking at the management of the

0:11:34 > 0:11:38student loan company, can he use this opportunity to look at reducing

0:11:38 > 0:11:42the rate of interest rates for students which is much higher than

0:11:42 > 0:11:49other countries in the developed world?Well, we keep all aspects of

0:11:49 > 0:11:52our student finance system under review to ensure it is fair and

0:11:52 > 0:11:57effective, it is meeting our core objectives of removing financial

0:11:57 > 0:12:00barriers to access, funding our university system fairly and sharing

0:12:00 > 0:12:10the cost of doing so equally between us and the taxpayer. It is to be

0:12:10 > 0:12:13compared with unsecured, personal borrowings. If you look at what a

0:12:13 > 0:12:17Bank of England reference rate would be for an unsecured, personal

0:12:17 > 0:12:24borrowing, it would be well over 7%. This is a unique product written off

0:12:24 > 0:12:28after 30 years. It is only entering the repayment period when someone is

0:12:28 > 0:12:34earning more than £25,000. It is a unique product and it is not easy to

0:12:34 > 0:12:37compare any element of it with offerings from elsewhere in the

0:12:37 > 0:12:45commercial sector.In recent years the student loan company has been

0:12:45 > 0:12:52plagued by mishaps, complaints of inefficient bureaucracy and poor

0:12:52 > 0:12:57customer service. The latest SLC sell-off is a problem. Many

0:12:57 > 0:12:59graduates received letters telling them they must pay even though their

0:12:59 > 0:13:04earnings had not yet reached repayment level. Can the Minister

0:13:04 > 0:13:10confirm that they will not siphon loans off to a third party? Devolved

0:13:10 > 0:13:14administrations are shareholders in the SLC. Can the Minister outlined

0:13:14 > 0:13:18the discussion he has had with fellow shareholders on the

0:13:18 > 0:13:20circumstances of the dismissal of the Chief Executive of that

0:13:20 > 0:13:28committee? Over 1400 people are employed by the SLC in Glasgow. Can

0:13:28 > 0:13:31the government confirmed that any shake-up of practices will not

0:13:31 > 0:13:36involve a plan to move any part of the company from Glasgow and that

0:13:36 > 0:13:39all employees will have an opportunity to be consulted in any

0:13:39 > 0:13:46future discussions? At a time where graduates are paying up to 6.1% in

0:13:46 > 0:13:52low interest, student debt in England has nearly trebled compared

0:13:52 > 0:13:58to Scotland. Does the Minister not think that while the SLC could use a

0:13:58 > 0:14:02radical shake-up and reform, his policies could as well. The budget

0:14:02 > 0:14:06is round the corner, so while the minister works to clear up the

0:14:06 > 0:14:10managerial problems, why does he not clear up the mess of this policy and

0:14:10 > 0:14:13stop saddling English students with a millstone of debt around their

0:14:13 > 0:14:19necks?I am not sure we need lessons from Scotland on our higher

0:14:19 > 0:14:24education policy. Our higher education policies have resulted in

0:14:24 > 0:14:28levels of access for people from disadvantaged backgrounds that

0:14:28 > 0:14:33should be the envy of members on that bench rather than a source of

0:14:33 > 0:14:37criticism of them. The honourable member asks about Glasgow and the

0:14:37 > 0:14:42work that SLC staff to front its location in Glasgow. Of course that

0:14:42 > 0:14:46is valued and we support everything they are doing in ensuring the SLC

0:14:46 > 0:14:51continues to perform at the level we wanted to perform as an important

0:14:51 > 0:14:56agency of the Department for Education. It is in its sixth

0:14:56 > 0:14:59consecutive year of improvement in terms of its operational metrics and

0:14:59 > 0:15:02we want that to continue and I am sure Glasgow will play its part in

0:15:02 > 0:15:09that.Would the Minister like to explain what role the new office for

0:15:09 > 0:15:17students will play in this and hope it will help?The new office for

0:15:17 > 0:15:22students comes into existence progressively from January one 2018

0:15:22 > 0:15:27onwards, with its full operational existence commencing in April of

0:15:27 > 0:15:322018. The Student Loans Company has its own statutory existence

0:15:32 > 0:15:37independent of that of the office for students and it will continue to

0:15:37 > 0:15:41carry out the vital function we need to perform in ensuring loans we make

0:15:41 > 0:15:46available to remove barriers to access to higher education continued

0:15:46 > 0:15:52to be made available seamlessly to students in need of them.Looking at

0:15:52 > 0:15:56all these very academic colleagues and my eye focuses on Doctor Roberta

0:15:56 > 0:16:03Blackman Woods.Thank you, Mr Speaker. I hope the Minister

0:16:03 > 0:16:07appreciates that problems at the SLC go beyond the actions or lack of

0:16:07 > 0:16:11them of the previous chief executive. The Jenkins report

0:16:11 > 0:16:16pointed to bad behaviour amongst the whole executive leadership team.

0:16:16 > 0:16:21Could he tell us what that bad behaviour is? How long has he known

0:16:21 > 0:16:28about it? What action is being taken to stop it?The SLC board has taken

0:16:28 > 0:16:32prompt action to address shortcomings in the leadership of

0:16:32 > 0:16:37the student loan company that were identified in the two investigations

0:16:37 > 0:16:46that I mentioned. That includes the report by Sir Paul Jenkins. I have

0:16:46 > 0:16:51every confidence in the new chief executive we have put in place,

0:16:51 > 0:16:55Peter Lerner, who has worked successfully across a range of DFE

0:16:55 > 0:17:00partnership organisations, will do the job that we need him to do.

0:17:00 > 0:17:07Jeremy Quinn.Picking up on the minister's reply about the office of

0:17:07 > 0:17:13students, what role does he see it play in value for money?Of course

0:17:13 > 0:17:18value for money is a critical part of our reforms and have been since

0:17:18 > 0:17:21the green paper and a white paper and the higher education and

0:17:21 > 0:17:28research act. We want them to hold the universities to account for the

0:17:28 > 0:17:33income they receive from the SLC and to ensure students are made aware of

0:17:33 > 0:17:37where the best teaching is available across the system and were really

0:17:37 > 0:17:43good outcomes are emanating from. We want that to be clearer to students

0:17:43 > 0:17:47so they can make informed choices about where to study so the

0:17:47 > 0:17:56universities can be held to account for the use of public resources.And

0:17:56 > 0:18:04external audit into the SLC found it was in the bottom of all

0:18:04 > 0:18:07organisations on 36 criteria against which it was assessed. Can the

0:18:07 > 0:18:16Minister tell us what these criteria were?I cannot tell him the precise

0:18:16 > 0:18:19criteria. What I can tell him is this is an organisation which has

0:18:19 > 0:18:25steadily improved from the one we inherited as a coalition government

0:18:25 > 0:18:29back in 2010. It is in its sixth consecutive year of performance

0:18:29 > 0:18:34improvement and that is something we should be celebrating. No one is

0:18:34 > 0:18:38denying all organisations have room for improvement. We want to work

0:18:38 > 0:18:43with the SLC to ensure that steps are taken to improve the interface

0:18:43 > 0:18:50between HMRC and itself.Does the Minister agree with me that it is

0:18:50 > 0:18:54imperative that university students get value for money, but also that

0:18:54 > 0:18:57they are able to see where their money goes and both of these will be

0:18:57 > 0:19:02promoted by the office for students that will launch on January one?I

0:19:02 > 0:19:07am happy to confirm that. We are consulting on the new regulatory

0:19:07 > 0:19:12framework at the office for students will use. One of the things we are

0:19:12 > 0:19:16consulting on is how we can make it clearer to students how their

0:19:16 > 0:19:22tuition fee income is being used within institutions so they can be

0:19:22 > 0:19:25confident and government can be confident and it is supporting the

0:19:25 > 0:19:30core activities we intended to be useful, namely teaching, producing

0:19:30 > 0:19:33world-class research and helping students go on to get great outcomes

0:19:33 > 0:19:37in the of work.

0:19:37 > 0:19:43I have huge sympathy for him, not least because he has such a

0:19:43 > 0:19:55fantastic something, -- surname. But I have also been on his shows. Given

0:19:55 > 0:20:01the failure colleagues validity of the SLC, it is important the House

0:20:01 > 0:20:10understands how often the Minister has met with the senior team. Would

0:20:10 > 0:20:16he put out a list of these meetings so the appropriate enquiries can be

0:20:16 > 0:20:21made?I would be happy to do that. But I want to remind the right

0:20:21 > 0:20:24honourable member that this is a successful organisation in many ways

0:20:24 > 0:20:31and we should not denigrated. Members of doing a massive

0:20:31 > 0:20:33disservice to public servants working hard in Darlington and

0:20:33 > 0:20:36Glasgow to ensure students are getting access to the finance they

0:20:36 > 0:20:43need to undertake higher education. To have an organisation with 4.7

0:20:43 > 0:20:45million customers and to receive complaints each year from less than

0:20:45 > 0:20:52zero by 1% of them is an achievement. -- 0.1%. We should not

0:20:52 > 0:21:01run this organisation down.Could I ask my noble friend what he

0:21:01 > 0:21:10considers to be the most significant change brought about by the recent

0:21:10 > 0:21:17higher education and research act. That question is not put together

0:21:17 > 0:21:20adjacent to the matter of the management and operation of the

0:21:20 > 0:21:26Student Loans Company. If I be very polite to the honourable gentleman,

0:21:26 > 0:21:35I would say his enquiry is, at best, tangential. It is at best a nodding

0:21:35 > 0:21:40acquaintance of the company but no better than that. The Minister is a

0:21:40 > 0:21:42versatile dextrous fellow and I am sure he can handle the matter

0:21:42 > 0:21:47eloquently. Students receive funding indirectly

0:21:47 > 0:21:52from the Student Loans Company and universities receive funding

0:21:52 > 0:21:55directly from it as well. It is vital that there is a strong

0:21:55 > 0:21:58relationship and students feel that they are getting value for money

0:21:58 > 0:22:02from the funding it provides. The spirit of the higher education and

0:22:02 > 0:22:06research act was to promote value for money in our system and ensure

0:22:06 > 0:22:12universities are delivering great teaching and research to students.

0:22:12 > 0:22:14There you are.The honourable gentleman is not known as a

0:22:14 > 0:22:21considerable boffin from nothing. Thank you very much indeed.Can I

0:22:21 > 0:22:26Asuka Minister if he addresses a question about immigration, no-one

0:22:26 > 0:22:30on this side will denigrate the Student Loans Company. In fact, if

0:22:30 > 0:22:33you put the Student Loans Company and the good services done for so

0:22:33 > 0:22:38many students and parents, have to say, and compare that with our

0:22:38 > 0:22:42commercial bank sector, probably where so many of them should have

0:22:42 > 0:22:47actually gone to prison, this Student Loans Company has done very

0:22:47 > 0:22:51well indeed. What is there some secret agenda? Because this

0:22:51 > 0:22:58Government is about to sell off £4 billion of student loans. And who is

0:22:58 > 0:23:03leading that consortium? British banks, led by Barclays.I thank the

0:23:03 > 0:23:07honourable member for acknowledging the good work that SLC does. And I

0:23:07 > 0:23:13think it is important that we recognise that. The sale of the

0:23:13 > 0:23:16string loan because a policy which of course the last Labour Government

0:23:16 > 0:23:22made possible with the passage of the 2008 sailors to loans act. --

0:23:22 > 0:23:29sale of. There is considerable cross party recognition of the importance

0:23:29 > 0:23:33of the sustainability of public finances and the sale of student

0:23:33 > 0:23:36loan books, which the last Labour Government made possible, is one

0:23:36 > 0:23:39which is Government is quite prepared to continue.When we talk

0:23:39 > 0:23:45about student loans and access to universities, we often quite rightly

0:23:45 > 0:23:48talk about disadvantaged students. Does my right honourable, my

0:23:48 > 0:23:52honourable friend recognise the current system has really proved and

0:23:52 > 0:24:00created opportunities for those students?She's absolutely right. It

0:24:00 > 0:24:06is the income contingent repayment student loans system that has made

0:24:06 > 0:24:12possible a huge expansion of access to higher education. I have said the

0:24:12 > 0:24:17statistics several days before but students from this rant is back then

0:24:17 > 0:24:22is our 43% more likely to do to go to university and higher education

0:24:22 > 0:24:26than they were in 2009 2010. That is a direct result of successive

0:24:26 > 0:24:30governments having decided to share the cost of higher education

0:24:30 > 0:24:35equitably between students and the general taxpayer.Did the Minister

0:24:35 > 0:24:40have another go at the question put to him as to why exactly students

0:24:40 > 0:24:45have to pay such a high rate of interest compared to two lives in

0:24:45 > 0:24:52other countries but you might -- compared to students in other

0:24:52 > 0:24:59countries?Everyone here isn't the impression that students are paying

0:24:59 > 0:25:036% interest rate. All their- 5% of students in the repayment period pay

0:25:03 > 0:25:09rates of about 6.1%. So of course most students in the repayment

0:25:09 > 0:25:12period are being somewhere between RPI and RPI plus three, which takes

0:25:12 > 0:25:17us from RPI Rathlin Island three all the way to RPI plus three, which

0:25:17 > 0:25:21comes to around 6.1. It is a spectrum of interest rates that she

0:25:21 > 0:25:25lives are paying. Only students earning more than £42,000 in the

0:25:25 > 0:25:29repayment period will be paying that high rate of interest, which I think

0:25:29 > 0:25:35has got the imagination will stop that is roughly from the statistics

0:25:35 > 0:25:41I have between 2-5% of students. Notwithstanding my honourable

0:25:41 > 0:25:47friend's LL answer, is it not the case, however, that far fewer people

0:25:47 > 0:25:53from deprived backgrounds go to university now? Or at least, that is

0:25:53 > 0:25:59what I have heard from the party opposite? Have they got that wrong?

0:25:59 > 0:26:07Yes, Mr Speaker, am I -- I am afraid they have got it wrong. The rate at

0:26:07 > 0:26:10which students from the most disadvantaged backgrounds are going

0:26:10 > 0:26:14to university has jumped sharply in the last six or seven years. As I

0:26:14 > 0:26:21just said, they are 43% more likely to go into higher education now than

0:26:21 > 0:26:27they were in 2009 and 2010.As the mother of a daughter with the

0:26:27 > 0:26:32student loan, I was appalled at the BBC reports of evidence that

0:26:32 > 0:26:35education agents were recruiting Bulgar students to private colleges

0:26:35 > 0:26:41to defraud the taxpayer of thousands of student loans. Can I ask the

0:26:41 > 0:26:46Minister what different departments are doing to detect bogus students

0:26:46 > 0:26:53and will be Government legislate, for instance, to ban essay mills?

0:26:53 > 0:26:58Regarding allegations of fraud from Panorama in relation to student

0:26:58 > 0:27:03loans at three private providers, the department takes allegations of

0:27:03 > 0:27:05fraud and malpractice seriously and we are grateful to Pamela for

0:27:05 > 0:27:11bringing those allegations to our attention. -- Panorama. They devalue

0:27:11 > 0:27:16the work of honest students. Working with stakeholders, including the

0:27:16 > 0:27:20City of London Police, we will take robust action we abuse is evident.

0:27:20 > 0:27:25But it is vital we remember that the level of ineligible payments to such

0:27:25 > 0:27:30providers is actually very low and about 0.5% of all payments to

0:27:30 > 0:27:36providers. It has come down sharply from 4% in 2012 and 2013 and it is

0:27:36 > 0:27:41now higher than the rate of ineligible payments across the

0:27:41 > 0:27:50publicly funded world of higher education.The Minister will agree

0:27:50 > 0:27:52that one of the key ways of judging the success of the student loans

0:27:52 > 0:27:55finance system is there number of people from disadvantaged

0:27:55 > 0:27:59backgrounds going to university. What role does CC access agreements

0:27:59 > 0:28:06in particular playing alongside the support provided by the SLC?Access

0:28:06 > 0:28:09agreements play a vital part. The amount of funding flowing through

0:28:09 > 0:28:14access agreements to support widening participation has doubled

0:28:14 > 0:28:19over recent years. And now stands at well over 800 million pounds per

0:28:19 > 0:28:24year. These access agreements are really driving progress in

0:28:24 > 0:28:30participation. The rate in which people from the most disadvantaged

0:28:30 > 0:28:3320% of households are accessing higher education has really jump. It

0:28:33 > 0:28:42now stands at well over 20%, over 20% of that particular group.Given

0:28:42 > 0:28:46that Steve Lamey has criticised the lack of support from the Department

0:28:46 > 0:28:49for Education and this House is at the Rowenna Davies media reports

0:28:49 > 0:28:53dating a picture of a Student Loans Company leg bye bullying, low morale

0:28:53 > 0:28:56and high sickness rates, is not in the public interest that the Jenkins

0:28:56 > 0:29:01report is put into the public domain, not least so the members of

0:29:01 > 0:29:04this House can scrutinise the performance of the Student Loans

0:29:04 > 0:29:06Company but also the support provided by the Department for

0:29:06 > 0:29:15Education?This is an employment matter between Steve Lamey and the

0:29:15 > 0:29:19SLC. The Department for Education as taking quick action in response to

0:29:19 > 0:29:28the to sit -- the two reports and suspended Mr Lamey's role as

0:29:28 > 0:29:32accounting officer. It is taking quick steps to put in place new

0:29:32 > 0:29:35manager in the form of Peter Lonard to take SLC forward over the coming

0:29:35 > 0:29:48months and years. -- Peter Lerner.I am currently student loan. But what

0:29:48 > 0:29:53involvement does the Minister see the new office for students having

0:29:53 > 0:30:00end the role of appointing a new chief Executive?He is a good

0:30:00 > 0:30:07advertisement for the student loans Company. The office for students

0:30:07 > 0:30:14will not have an... A direct role in the appointment of a new Chief

0:30:14 > 0:30:17Executive of the Student Loans Company. That will be a matter for

0:30:17 > 0:30:19the board of the Student Loans Company and it is a ministerial

0:30:19 > 0:30:24appointment as well.The incompetence is of the Student Loans

0:30:24 > 0:30:31Company range from scaremongering fake debt collection letters they

0:30:31 > 0:30:40wrote to the predicament of my constituents. Isn't it apparent that

0:30:40 > 0:30:47by exposing it is a mess, where 50% of calls were mishandled at the peak

0:30:47 > 0:30:53period, Steve Lamey was dismissed for telling the truth.Mr Lamey did

0:30:53 > 0:30:57not live up to the standards with which the SLC board felt were

0:30:57 > 0:31:02required for the role and they took the action to dismiss him. The

0:31:02 > 0:31:05Department for Education followed on by removing his function as

0:31:05 > 0:31:10accounting officer. We want the SLC to continue to be highly performing

0:31:10 > 0:31:14organisation and we should remember that overall it is a success

0:31:14 > 0:31:21organisation was just 0.1% of its customers complaining. Many private

0:31:21 > 0:31:28sector organisations would end their -- in the record like that.In his

0:31:28 > 0:31:34initial reply, he further the van Alun revelation last week. Is he

0:31:34 > 0:31:36aware of any Welsh institutions being caught up in fraudulent

0:31:36 > 0:31:40activity and what discussions as he had with the Welsh Government?Mr

0:31:40 > 0:31:44Speaker, I am not personally aware of any such allegations. That would

0:31:44 > 0:31:51be a matter for the Welsh funding agency and Welsh regulatory

0:31:51 > 0:31:53authorities. If the honourable member is aware of any, he should

0:31:53 > 0:32:00not lose any time in relaying his concerns to the appropriate body.

0:32:00 > 0:32:02Chaos in the Student Loans Company adds insult to injury to those

0:32:02 > 0:32:06paying off these huge debts on graduation. It constituents into

0:32:06 > 0:32:09senior last Friday, bringing with him his student loans company

0:32:09 > 0:32:13statement. He is a paramedic doing important, highly skilled work for

0:32:13 > 0:32:16the emergency services. He completed his training with over £20,000 of

0:32:16 > 0:32:23debt. He has paid off £1084 since April 2016 but during the same

0:32:23 > 0:32:28period, the company has applied £870 interest. He said to me, no wonder

0:32:28 > 0:32:30graduates attempt to leave the country. What would the Minister

0:32:30 > 0:32:38said to him?Mr Speaker, we want the student and repayment experience to

0:32:38 > 0:32:44be a simple and smooth and effective as possible. It is striking that the

0:32:44 > 0:32:50level of complaints are low. Of course there will be complaints like

0:32:50 > 0:32:53our constituent made to her. She is right to raise them. We want to

0:32:53 > 0:32:57learn from all student experience and the SLC does learn from the

0:32:57 > 0:33:00relatively few complaints that it gets. But it is important that we do

0:33:00 > 0:33:09so.I have been contacted by Leeds University union of many cases of

0:33:09 > 0:33:18overpayment. One person was told he could not get another loans. Another

0:33:18 > 0:33:21was told to do not meet residency requirements. The format was

0:33:21 > 0:33:27demanded. -- filament. How Christians be treated fairly when

0:33:27 > 0:33:33the SLC makes mistakes with students very deep in debt?We want all

0:33:33 > 0:33:36students in repayments to be treated fairly by this turn loans company

0:33:36 > 0:33:41and we take the issue of overpayments particularly seriously.

0:33:41 > 0:33:43As I mentioned already, in response to the honourable member on the

0:33:43 > 0:33:48front bench, we can expect to hear more of this particular feeling of

0:33:48 > 0:33:52overpayments and the interaction of the Student Loans Company and HMRC

0:33:52 > 0:34:00in a couple days' time for the budget.The Minister seems very

0:34:00 > 0:34:07complacent about the level of fraud. Peter Lilley airport -- economic

0:34:07 > 0:34:11report the amount of fraud known to us. I is nature, people are carried

0:34:11 > 0:34:15fraud and devious.

0:34:16 > 0:34:20What action did he take in response to what was exposed by the Panorama

0:34:20 > 0:34:27programme?Mr Speaker, he is of course right. The nature of fraud is

0:34:27 > 0:34:33that you only really have a sighting shot at understanding the level of

0:34:33 > 0:34:37fraud in any system. What we have to look at is comparable levels of

0:34:37 > 0:34:41ineligible payments across different types of provider. As I said, we do

0:34:41 > 0:34:44not now seen a higher level of fraud to the so-called alternative

0:34:44 > 0:34:51providers within the so call -- so-called providers.

0:34:59 > 0:35:04Last Thursday I met with senior NHS leaders who told me there was a

0:35:04 > 0:35:08growing desperation to have our senior NHS professionals. Given that

0:35:08 > 0:35:13all these people will have to pay all the money back, I want to give

0:35:13 > 0:35:16the Minister another chance to again look at the interest rate payments

0:35:16 > 0:35:22and the fact they will have to start paying interest and accumulating

0:35:22 > 0:35:27interest before they graduate.This is a heavily subsidised student loan

0:35:27 > 0:35:34product overall. About 45% of loans are consciously written off by

0:35:34 > 0:35:36government as a deliberate investment in the skills base of

0:35:36 > 0:35:41this country. We want there to be no financial barriers to access and

0:35:41 > 0:35:46that means we do make this money available under a favourable terms.

0:35:46 > 0:35:51The interest rate is a means of ensuring that those graduates who go

0:35:51 > 0:35:55on to have higher lifetime earnings than average make a contribution to

0:35:55 > 0:36:00the overall cost and the overall sustainability of higher education

0:36:00 > 0:36:04and ensuring it continues to drive access and widen participation

0:36:04 > 0:36:10systematically across the piece. Dennis Skinner.Is the Minister

0:36:10 > 0:36:15where it is not subsidised enough? There is only one solution to this

0:36:15 > 0:36:20and it stares you in the face every time he opens his mouth. Let's have

0:36:20 > 0:36:27a free education like we used to have from the cradle to the grave.

0:36:27 > 0:36:31Mr Speaker, the thing is that our system of student finances enable

0:36:31 > 0:36:36far more people to go to university than the kind of system which he is

0:36:36 > 0:36:44advocating. Mr Speaker, in the 1950s and 1960s when others in this house

0:36:44 > 0:36:49were thinking of whether or not to go to university, a far smaller

0:36:49 > 0:36:54proportion of each cohort of 18-19 -year-olds was given the chance to

0:36:54 > 0:37:00go. We are now in a situation where 18 and 19-year-olds are almost 46%

0:37:00 > 0:37:04of them getting a chance to go to university and that is a world away

0:37:04 > 0:37:11from what it was when we had an entirely state funded system of

0:37:11 > 0:37:19higher education that meant it was just the preserve of a narrow elite.

0:37:19 > 0:37:30Order. We do have a statement, but if the honourable gentleman is in a

0:37:30 > 0:37:33state of uncontrollable perturbation, I will take it now.

0:37:33 > 0:37:40You may not be aware but in the other place this afternoon Minister

0:37:40 > 0:37:44in the Department for exiting the European Union has come to give a

0:37:44 > 0:37:48specific statement to correct something he said about Article 50

0:37:48 > 0:37:55and whether this could or could not be revoked. Indeed today, the Lord

0:37:55 > 0:38:00has come into the House of Lords and said, for the avoidance of any doubt

0:38:00 > 0:38:04the Supreme Court did not rule on the legal position regarding its

0:38:04 > 0:38:08irreversibility. Mr Speaker, this is relevant because we are about to

0:38:08 > 0:38:12start the EU withdrawal bill at committee stage proceedings tomorrow

0:38:12 > 0:38:17and it is very important that everybody recognises that it is

0:38:17 > 0:38:24possible for Article 50 to be revoked. The government not

0:38:24 > 0:38:28contradicting that, it may be government policy not to revoke

0:38:28 > 0:38:32Article 50, but I wonder whether you had had noticed that if this

0:38:32 > 0:38:36statement has been made in the other place whether the minister will also

0:38:36 > 0:38:41come and clarify this in the House of commons?I am grateful to the

0:38:41 > 0:38:45honourable gentleman for his point of order. In short, I have received

0:38:45 > 0:38:49no notification any minister intends to come to the House to make a

0:38:49 > 0:38:53statement on that matter. But what I can say to the honourable gentleman

0:38:53 > 0:38:58is that if an error is made in the other place, it can be corrected

0:38:58 > 0:39:04only in the other place. The requirement for correction does not

0:39:04 > 0:39:09span the two houses. However, the honourable gentleman is an eager

0:39:09 > 0:39:14beaver and if, as these matters are broached in this house in the

0:39:14 > 0:39:19committee stage, the honourable gentleman if he wishes to leap to

0:39:19 > 0:39:23his feet with the athleticism for which he is renowned in all parts of

0:39:23 > 0:39:27the House to challenge the Minister to confirm the veracity of the

0:39:27 > 0:39:31correction, it is open to them to do so. Knowing the honourable gentleman

0:39:31 > 0:39:37as I do I feel sure he will be in this place and ready to leap at the

0:39:37 > 0:39:42first opportunity. If there are no further points of order, we come now

0:39:42 > 0:39:48to the statement. Minister of State for the Middle East and North

0:39:48 > 0:39:55Africa.Minister Alistair Burt. Thank you, Mr Speaker. With

0:39:55 > 0:39:59permission I would like to make a statement to the House on the

0:39:59 > 0:40:03humanitarian and political situation in Yemen and the implications of the

0:40:03 > 0:40:08conflict for regional security. Her Majesty's government remains deeply

0:40:08 > 0:40:11concerned by the humanitarian situation in Yemen and the impact

0:40:11 > 0:40:15recent restrictions are having on what was already the worst

0:40:15 > 0:40:19humanitarian crisis in the world and largest ever cholera outbreak. We

0:40:19 > 0:40:24recognise the risk of a severe deterioration of the humanitarian

0:40:24 > 0:40:28situation if restrictions are not quickly removed and call on all

0:40:28 > 0:40:31parties to ensure immediate access to commercial and humanitarian

0:40:31 > 0:40:38supplies to all Yemen's land, air and sea ports. But we should be

0:40:38 > 0:40:43clear about the reality of the conflict in Yemen. The Saudi led

0:40:43 > 0:40:45coalition launched a military intervention after a rebel

0:40:45 > 0:40:50insurgency took the capital by force and overthrew the legitimate

0:40:50 > 0:40:54government of Yemen as recognised by the UN Security Council. Ungoverned

0:40:54 > 0:40:59spaces in Yemen are being used by terrorist groups to launch attacks

0:40:59 > 0:41:03against regional countries, international shipping lanes and the

0:41:03 > 0:41:06Yemeni people. As the Foreign Secretary has made clear, we

0:41:06 > 0:41:11strongly condemn the attempted missile attack against Riyadh on the

0:41:11 > 0:41:154th of November. This attack, which has been claimed by the Hutus,

0:41:15 > 0:41:27deliberately targets a civilian area and was intercepted. The UK can say

0:41:27 > 0:41:42that we are wanting to support the Saudi military. I understand that

0:41:42 > 0:41:48the UN team is currently visiting Riyadh to investigate reports. It is

0:41:48 > 0:41:52essential the UN conducts a thorough investigation. The UK stands ready

0:41:52 > 0:41:56to share its expertise to support this process. But we recognise those

0:41:56 > 0:42:01who suffer most in this conflict are the people of Yemen. We understand

0:42:01 > 0:42:07why the Saudi led coalition felt obliged to temporarily close Yemen's

0:42:07 > 0:42:10ports and airports in order to strengthen enforcement of the UN

0:42:10 > 0:42:15mandated arms embargo. It is critical international efforts to

0:42:15 > 0:42:22disrupt illicit weapons flows are strengthened, but at the same time

0:42:22 > 0:42:24it is vital that commercial and humanitarian supplies of food, fuel

0:42:24 > 0:42:28and medicine are able to reach vulnerable Yemeni people,

0:42:28 > 0:42:33particularly in the North West 70% of those live. Even before the

0:42:33 > 0:42:38current restrictions, 21 million people were already in need of

0:42:38 > 0:42:41humanitarian assistance and 7 million worst single step away from

0:42:41 > 0:42:47famine. 90% of food is imported and three quarters of that come via the

0:42:47 > 0:42:50porous and no other pause in Yemen have the capacity to make up the

0:42:50 > 0:42:55shortfall. Our partners in Yemen are already reporting that water and

0:42:55 > 0:43:00sewage systems in major cities have stopped operating because of a lack

0:43:00 > 0:43:04of fuel. Millions no longer have access to clean water and sanitation

0:43:04 > 0:43:09in a country suffering from the worst cholera outbreak in modern

0:43:09 > 0:43:13times. The restrictions on access for commercial and Unitarian

0:43:13 > 0:43:19assistance risk making the situation immeasurably worse. We have heard

0:43:19 > 0:43:24the UN's stark warnings about the risk of famine. We call on all

0:43:24 > 0:43:28parties to ensure immediate access for commercial and humanitarian

0:43:28 > 0:43:32supplies to avert the threat of starvation and disease faced by

0:43:32 > 0:43:37millions. We also call for the immediate reopening of the port and

0:43:37 > 0:43:41the resumption of UN flights into Aung San Suu Kyi and aid in

0:43:41 > 0:43:44airports. The Foreign Office statement on the 15th of November

0:43:44 > 0:43:50made clear restrictions on humanitarian flights are causing

0:43:50 > 0:43:54problems, including UK nationals who wish to enter or exit the country.

0:43:54 > 0:43:59We have been urgently and proactively seeking a resolution of

0:43:59 > 0:44:03this situation. Our ambassador in Riyadh has been infrequently contact

0:44:03 > 0:44:07with the Saudi minister and the Foreign Secretary has discussed the

0:44:07 > 0:44:10situation in Yemen with the crown prince with whom we have emphasised

0:44:10 > 0:44:18the urgency of addressing the worst of the humanitarian crisis. The

0:44:18 > 0:44:21Secretary of State for International Development has spoken to the UN

0:44:21 > 0:44:26Secretary General and the undersecretary general since her

0:44:26 > 0:44:31appointment on the 9th of November about the situation in Yemen. We are

0:44:31 > 0:44:34continuing to work closely with other regional and international

0:44:34 > 0:44:39partners, including the UN. On the 18th of November the Foreign

0:44:39 > 0:44:43Secretary spoke to the UN Secretary General. Central to this discussion

0:44:43 > 0:44:47was how the security concerns of Saudi Arabia can be addressed to

0:44:47 > 0:44:51enable these restrictions to be lifted. It is important the UN and

0:44:51 > 0:44:56Saudi Arabia enter a meaningful and constructive dialogue. We will

0:44:56 > 0:45:00continue to support the people of Yemen through the provision of

0:45:00 > 0:45:04life-saving humanitarian supplies. The UK is the fourth-largest

0:45:04 > 0:45:10humanitarian donor to Yemen and the second-largest through the UN

0:45:10 > 0:45:16appeal, committing £155 million to Yemen for 2017-18. UK aid has

0:45:16 > 0:45:20provided food to almost 2 million people and clean water to over 1

0:45:20 > 0:45:25million more. The only way to bring long-term stability is through

0:45:25 > 0:45:32political solution and that is why peace talks remain of most

0:45:32 > 0:45:38importance. The UK continues to play a leading role in diplomatic efforts

0:45:38 > 0:45:42to find a peaceful solution, this includes bringing together key

0:45:42 > 0:45:47international actors, including the US, Saudi Arabia, the Emirates and

0:45:47 > 0:45:53allies. We intend to convene another such meeting shortly. It is that we

0:45:53 > 0:45:58work together to refocus the political track. The United Kingdom

0:45:58 > 0:46:02will play a leading role in Yemen through the UN. In June we proposed

0:46:02 > 0:46:07and supported the UN Security Council presidential statement which

0:46:07 > 0:46:10expressed deep concern about the humanitarian statement in Yemen. It

0:46:10 > 0:46:16called for an end to the fighting, a return to peace talks and stressed

0:46:16 > 0:46:20the importance of unhindered humanitarian access. It is vital the

0:46:20 > 0:46:25words of the texts are converted into action. The international

0:46:25 > 0:46:32community's demands must be respected.Thank you, Mr Speaker. I

0:46:32 > 0:46:36am standing in today for my right honourable friend the Shadow Foreign

0:46:36 > 0:46:40Secretary who has a child in hospital. Also, Mr Speaker, as we

0:46:40 > 0:46:45discussed today the human cost of one seemingly intractable conflict I

0:46:45 > 0:46:49am sure the whole house will join me in commemorating the 100th

0:46:49 > 0:46:57anniversary of the Battle of Iraq's. I visited the tunnels last week and

0:46:57 > 0:47:02in saluting the service of the Royal Tank Regiment for whom this day

0:47:02 > 0:47:07remains rightly sacred. Mr Speaker, I thank the Minister of State for

0:47:07 > 0:47:11advance sight of his statement. I will not address all the points he

0:47:11 > 0:47:16has made at this stage given there may be another opportunity to do so

0:47:16 > 0:47:23later in today's proceedings. For the time being I wish to address the

0:47:23 > 0:47:28escalating matter of the urgent crisis in Yemen. On that point the

0:47:28 > 0:47:31Minister of State has joined a long line of Foreign Office ministers who

0:47:31 > 0:47:36have come to this house since 2015 and have told us time after time

0:47:36 > 0:47:40they are doing everything they can to tackle the humanitarian crisis in

0:47:40 > 0:47:45Yemen and to limit civilian casualties. Yet time after time,

0:47:45 > 0:47:49whatever the government's good intentions, they humanitarian crisis

0:47:49 > 0:47:53keeps getting worse and worse and the civilian death toll continues

0:47:53 > 0:48:00rising ever higher. Now we face a dramatic escalation of that crisis

0:48:00 > 0:48:06with millions of lives in even more immediate danger. I am afraid that

0:48:06 > 0:48:11more good intentions on the part of the government will simply not cut

0:48:11 > 0:48:16it this time. Instead we need urgent action. We are all familiar with

0:48:16 > 0:48:21recent developments as summarised by the Minister of State. The Saudis

0:48:21 > 0:48:24have reacted with understandable anger to the firing of a ballistic

0:48:24 > 0:48:29missile at Riyadh, an act that all of us on this side of the House

0:48:29 > 0:48:34unequivocally condemn in the same way that we have condemned all the

0:48:34 > 0:48:36thousands of Saudi air strikes against civilian targets inside

0:48:36 > 0:48:43Yemen. Following the defeat missile strike, the Saudis strengthened

0:48:43 > 0:48:48their blockade of all rebel held areas of Yemen and as a result what

0:48:48 > 0:48:53little supplies their worth of food, medicine and other humanitarian

0:48:53 > 0:48:58goods have now grown to a halt. Millions of children who were

0:48:58 > 0:49:05already facing severe malnutrition, a cholera epidemic, an outbreak of

0:49:05 > 0:49:09diphtheria, have had their very last lifeline cut off. Let me quote this

0:49:09 > 0:49:14weekend was a joint statement by the world health programme, the World

0:49:14 > 0:49:19Food Programme and Unicef. They say the tightening of the blockade,

0:49:19 > 0:49:24quote, is making an already catastrophic situation far worse.

0:49:24 > 0:49:29They say the supplies the Saudis are blocking are essential to staving

0:49:29 > 0:49:33off disease and starvation and without them untold thousands of

0:49:33 > 0:49:39innocent victims will die. They estimate if nothing is done over the

0:49:39 > 0:49:42coming months, 150,000 already malnourished children could starve

0:49:42 > 0:49:51to death. They conclude, quote, to deprive his many from the basic

0:49:51 > 0:49:55means of survival is an unconscionable act and a violation

0:49:55 > 0:50:03of humanitarian principles and law.

0:50:03 > 0:50:09The Minister of State says he shares those concerns. But at what point

0:50:09 > 0:50:13will he admit that strategy isn't working? At what point will he

0:50:13 > 0:50:17warned the Saudis that Britain will withdraw its support if they carry

0:50:17 > 0:50:22on with this blockade? And at what point do we say this is no longer a

0:50:22 > 0:50:28question of diplomatic persuasion but a matter of international law?

0:50:28 > 0:50:34International humanitarian law is clear Mr Speaker, and Britain's

0:50:34 > 0:50:43manual on the armed conflict, saying that the civil population cannot be

0:50:43 > 0:50:48used as a weapon of war. "The Establishment of a blockade is

0:50:48 > 0:50:52prohibited if the damage to the civil population is excessive in

0:50:52 > 0:51:03relation to the military advantage and if the are deprived of things

0:51:03 > 0:51:06essential for their survival, the blockading party must provide for

0:51:06 > 0:51:12free passage of such essential supplies." So Mr Speaker, I have to

0:51:12 > 0:51:16ask the Minister of State, if the Saudis continue to enforce its

0:51:16 > 0:51:21blockade in its current form and deny humanitarian access, will it be

0:51:21 > 0:51:26the judgment of this government that they are in breach of international

0:51:26 > 0:51:31law and if so, will his government suspended the sale of British arms

0:51:31 > 0:51:36that are being used to enforce that blockade? Mr Speaker, the truth is

0:51:36 > 0:51:42that this government has invested considerable political capital in

0:51:42 > 0:51:49its relationship with Saudi Arabia. It has championed the cramping, the

0:51:49 > 0:51:55architect of the conflict in Yemen and the blockade. If that diplomatic

0:51:55 > 0:52:00strategy has been worth anything, now is the time to prove it. Now is

0:52:00 > 0:52:04the time for the government to show we can have influence and impact on

0:52:04 > 0:52:08the Saudis and persuade them that as a matter of urgency they should open

0:52:08 > 0:52:13up the ports to humanitarian supplies and bring relief to the

0:52:13 > 0:52:16millions of children facing starvation and disease. If the

0:52:16 > 0:52:19government cannot achieve that Mr Speaker then it is time to change

0:52:19 > 0:52:27their approach.Thank you Mr Speaker and can I thank the honourable

0:52:27 > 0:52:32gentleman for his comments and a large part of it with which I would

0:52:32 > 0:52:36not disagree. Can I start by passing on the good wishes from the benches

0:52:36 > 0:52:40to the Right Honourable Lady and trust that all is well with her

0:52:40 > 0:52:46child. And also to recognise what the honourable gentleman said in

0:52:46 > 0:52:50relation to the First World War battle, we have seen pictures of the

0:52:50 > 0:52:54tanks yesterday which brought a smile to many hearts, thanks for

0:52:54 > 0:53:01reminding the House about that. The honourable gentleman was right to

0:53:01 > 0:53:06recognise the frustrations in terms of the conflict and the actions to

0:53:06 > 0:53:11bring it to an end are not solely in the power of the United Kingdom

0:53:11 > 0:53:16government. We have to work with partners to achieve that. I set out

0:53:16 > 0:53:21what we have been seeking to do ever since it became clear that the

0:53:21 > 0:53:27conflict was becoming a matter that would require political negotiation

0:53:27 > 0:53:30and not a military solution, to bring the parties together and find

0:53:30 > 0:53:35an answer to a conflict that has already taken too many lives but is

0:53:35 > 0:53:43about two sides. There is very little attention paid to the

0:53:43 > 0:53:46activities of those on the other side and those who have been

0:53:46 > 0:53:52involved in human rights abuses on their side, it does take two sides.

0:53:52 > 0:54:07Arn Basta in Yemen -- our ambassador in Yemen, we wish to resolve the

0:54:07 > 0:54:12humanitarian issues we are solving about -- talking about. I do not

0:54:12 > 0:54:16quibble with the concerns raised by agencies, I am in touch with the

0:54:16 > 0:54:23world food programme, we know they have warned us of the severity of

0:54:23 > 0:54:31the problems faced if the restrictions are not eased. Where I

0:54:31 > 0:54:33would challenge the honourable gentleman and put a different

0:54:33 > 0:54:40complexion, he speaks about us continuing to make representations

0:54:40 > 0:54:45and a political solution of what happens if it doesn't work, we are

0:54:45 > 0:54:49pressing on the representations. We do not know what the answer will be

0:54:49 > 0:54:53but we are making it clear, as have other parties, of the seriousness of

0:54:53 > 0:54:58the situation and we do expect there will be a change, there has to be. I

0:54:58 > 0:55:02do want to challenge in relation to international humanitarian law, he

0:55:02 > 0:55:07speaks about that law preventing starvation of civilians as a means

0:55:07 > 0:55:15method of warfare, that is quite correct. And the public made Saudi

0:55:15 > 0:55:21comment is that it is not there to wage war but to prevent the import

0:55:21 > 0:55:27of missiles. It is confirmation of the support of those who wish to

0:55:27 > 0:55:31prevent missiles entering Yemen need to protect themselves and that is

0:55:31 > 0:55:35through the work being done by the UN and the coalition to secure the

0:55:35 > 0:55:39entry ports to make sure there are no threats in the same way there was

0:55:39 > 0:55:44to the airport in Riyadh but at the same time it is vital there is

0:55:44 > 0:55:49humanitarian access. We believe that concentration on both of those will

0:55:49 > 0:55:53relieve the humanitarian situation and at the same time secure the

0:55:53 > 0:55:56safety of those who wish to protect their own people. We will continue

0:55:56 > 0:56:01to do that in addition to the work we are doing negotiations which is

0:56:01 > 0:56:08the only solution to the conflict. Mr Andrew Mitchell.By Right

0:56:08 > 0:56:12Honourable friend has been most helpful today, I thank him and the

0:56:12 > 0:56:17opposition front for their comments about my old regiment which will be

0:56:17 > 0:56:20celebrating and commemorating the events of 100 years ago next

0:56:20 > 0:56:27weekend. But on Yemen, are not three features of our engagement

0:56:27 > 0:56:34absolutely clear? The current policy on Yemen is doomed to strategic

0:56:34 > 0:56:39failure both for Saudi Arabia and by extension the UK. Secondly, that

0:56:39 > 0:56:46Saudi policy violates international law, as clearly set out in the UN

0:56:46 > 0:56:49Secretary-General's letter of last Friday. And thirdly, that we are

0:56:49 > 0:56:57dangerously complicit in a policy that is directly the mating of

0:56:57 > 0:57:01famine and the collective punishment of an entire population? Are we not

0:57:01 > 0:57:05on the brink, Mr Speaker, of witnessing in Yemen are a totally

0:57:05 > 0:57:11preventable massive humanitarian catastrophe, the likes of the -- the

0:57:11 > 0:57:19likes of which we haven't seen in decades?In relation to my right

0:57:19 > 0:57:23honourable friend's last point, it is for the very reasons that we wish

0:57:23 > 0:57:30to prevent the concerns raised by agencies in the UN from coming to

0:57:30 > 0:57:38fruition that we are spending all our efforts -- lending all I efforts

0:57:38 > 0:57:42in order to preserve safety and prevent arms getting through to make

0:57:42 > 0:57:47sure humanitarian access is indeed given. He is right to raise the

0:57:47 > 0:57:51concerns which I know the whole House has, that is what is giving

0:57:51 > 0:57:56the UK Government every incentive to continue to do all we can to raise

0:57:56 > 0:58:01those issues with those who fear for their own safety, to make sure they

0:58:01 > 0:58:04are not putting others at risk in the manner described by so many

0:58:04 > 0:58:12agencies.I agree very much with the comments for the members for Leeds

0:58:12 > 0:58:17North East and Sutton Coldfield, and key for giving me a advance sight of

0:58:17 > 0:58:21the statement, I am happy to hear there is dialogue but we need a lot

0:58:21 > 0:58:29more about actions in this House. I also understand the difficulties

0:58:29 > 0:58:33facing the Saudis and the attack in Riyadh which we of course also

0:58:33 > 0:58:41condemn, there needs to be recognition of the two sides of this

0:58:41 > 0:58:50conflict. The 155 million the Minister talks about in aid is

0:58:50 > 0:58:59brought by the people and 8 billion in arms deals to Saudi Arabia. Will

0:58:59 > 0:59:03the Minister speak a little more about those? Aid agencies have been

0:59:03 > 0:59:08reporting for years about the difficulties of getting aid into

0:59:08 > 0:59:15Yemen and across Yemen. Difficulties faced by aid agencies intends moving

0:59:15 > 0:59:19goods across the country and moving people about the country, only

0:59:19 > 0:59:24recently I heard from one man who saw how the projects are going, he

0:59:24 > 0:59:27could not travel round the country either due to the Visa system in

0:59:27 > 0:59:33operation. Despite the inspection system, Save the Children report

0:59:33 > 0:59:39that 13 ships carrying vital humanitarian aid were still denied

0:59:39 > 0:59:43entry to Yemen, what is the UK Government doing to get seaports

0:59:43 > 0:59:48open, especially when these convoys are quite clearly aid convoys and

0:59:48 > 0:59:53not containing missiles? It is fine to say they are providing funding

0:59:53 > 0:59:56but without access and workers on the ground able to deliver that it

0:59:56 > 1:00:02is almost meaningless. This is a population deliberately being

1:00:02 > 1:00:06staffed by its neighbours. Those neighbours are key allies of the UK.

1:00:06 > 1:00:14-- being starved. Save the Children report 130 children in Newman will

1:00:14 > 1:00:17die today, and tomorrow and the next day until this conflict ends, will

1:00:17 > 1:00:25the Minister tell us how he will stop this?Again, I come to the last

1:00:25 > 1:00:29point of her remarks, how will this conflict come to an end? It will

1:00:29 > 1:00:33come to an end when both sides are brought together by those who make

1:00:33 > 1:00:37it clear that there is no military solution to this and there has to be

1:00:37 > 1:00:41a political solution. That is what the United Kingdom has been seeking

1:00:41 > 1:00:48to do for many months now am a with appropriate parties here in London,

1:00:48 > 1:00:53New York and in the region. We share the frustrations because like others

1:00:53 > 1:01:00we can see the impact. I would comment on a couple of her other

1:01:00 > 1:01:05perfectly proper remarks, the key test for our continued arms exports

1:01:05 > 1:01:08to Saudi Arabia in terms of humanitarian and international law

1:01:08 > 1:01:14is if there is a clear risk that those items might be used in a

1:01:14 > 1:01:18violation of that international law, that is kept under continual review.

1:01:18 > 1:01:22And like other aspects of the UK arms control policy, it is subject

1:01:22 > 1:01:29to rigorous examination here and by the law. The Honourable lady is

1:01:29 > 1:01:35right to raise access, as we have done. It does not mean our work is

1:01:35 > 1:01:42meaningless, as she indicated, we are working through partners on the

1:01:42 > 1:01:45ground but distribution is harder, of course it is. It is not just in

1:01:45 > 1:01:50coalition controlled areas but other areas, I must remind the House of

1:01:50 > 1:01:56their art two side to this. If I may deal again with arms exports, I know

1:01:56 > 1:01:59it is fundamental and I did relate that to the honourable lady the

1:01:59 > 1:02:03other week and I shall do so again if I may. I do not mean to be harsh

1:02:03 > 1:02:11on it. If our not sending support to our allies, who are facing attacks

1:02:11 > 1:02:17upon their own soil from missiles imported into ungoverned space am

1:02:17 > 1:02:22aware they are trying to support and elected government against the

1:02:22 > 1:02:28interests of urgency -- against the insurgency, if we thought that would

1:02:28 > 1:02:33be of use, it would be a course of action. I do not believe that is the

1:02:33 > 1:02:36case. I do not think that if we were to take that action that it would

1:02:36 > 1:02:41not fundamentally undermine a number of other regional issues which our

1:02:41 > 1:02:45allies would wonder when they face an attack on their Heathrow whether

1:02:45 > 1:02:49we were making the right judgments. We have to pursue other means of

1:02:49 > 1:02:56bringing the conflict to an end and that is what we are seeking to do.

1:02:56 > 1:03:03Is Yemen subject to a blockade? Yemen is subject to restrictions

1:03:03 > 1:03:09brought in by the coalition parties following the attack by a missile on

1:03:09 > 1:03:13Riyadh and because of the smuggling of arms and weapons that have

1:03:13 > 1:03:17threatened the coalition vote in the UAE and Saudi Arabia for some period

1:03:17 > 1:03:22of time. I am not sure that the nomenclature adds to it a great deal

1:03:22 > 1:03:27but that is the aspect of the situation.I think it is pretty

1:03:27 > 1:03:32clear that it is a blockade and the sheer scale of the humanitarian

1:03:32 > 1:03:36crisis now must require urgent action by this government and by our

1:03:36 > 1:03:40partners to press the Saudis to lift the blockade. The Minister in his

1:03:40 > 1:03:45statement said that our partners Newman are reporting that water in

1:03:45 > 1:03:49major cities has stopped operating because of a lack of fuel. Can he

1:03:49 > 1:03:54tell us how high the fuel supplies are and when can food be distributed

1:03:54 > 1:04:00and when the level of debt will increase genetically as a result?We

1:04:00 > 1:04:07hope it does not reach that case. It has been made clear that it is a

1:04:07 > 1:04:11matter of a number of days in which both of these issues will become

1:04:11 > 1:04:15critical. In terms of what we have done, since the 4th of November and

1:04:15 > 1:04:21the attack and the response from the coalition, on the 5th of November, a

1:04:21 > 1:04:25statement condemned the attack, on the 13th of November, the Secretary

1:04:25 > 1:04:31of State for International Development spoke about the

1:04:31 > 1:04:37circumstance, we issued a further statement about the need for

1:04:37 > 1:04:44humanitarian access, and conversations in Riyadh are taking

1:04:44 > 1:04:53place all the time to reassure them on security about weapons

1:04:53 > 1:04:57threatening them being dealt with but that humanitarian access is

1:04:57 > 1:04:58vital.

1:05:04 > 1:05:08Whilst I understand why the minister is getting a statement today, can I

1:05:08 > 1:05:14remind him since 2010 there have been 15 oral statements, 16 written

1:05:14 > 1:05:19ministerial statements and nine urgent questions. We as the

1:05:19 > 1:05:25ministers spend more time in the department sorting out the problem

1:05:25 > 1:05:31and less time talking about it.I am grateful to my honourable friend, a

1:05:31 > 1:05:35former minister, for his support. I understand the point he makes. Since

1:05:35 > 1:05:402010 when I was first at the dispatch box in relation to Yemen we

1:05:40 > 1:05:43have had all sorts of different prospects for a different future for

1:05:43 > 1:05:49the people of Yemen. The end of the presidency, a process which resulted

1:05:49 > 1:05:54in a national dialogue, an opportunity for a new, democratic

1:05:54 > 1:05:57future, an opportunity for voices not heard in the governance of Yemen

1:05:57 > 1:06:03ever in terms of young people and women, and those opportunities were

1:06:03 > 1:06:06dashed by the current conflict and insurgency by a group seeking to

1:06:06 > 1:06:12take power with violence, removing the chances that people had for the

1:06:12 > 1:06:16development and the building of democracy as we had seen. The UK has

1:06:16 > 1:06:21been engaged right the way through that process to encourage all the

1:06:21 > 1:06:25right things. Reporting to the House is an important thing to do, but it

1:06:25 > 1:06:28has not taken away any of the time we have needed to spend in Yemen

1:06:28 > 1:06:37itself.Joe Swinton.The Minister is right that a political solution is

1:06:37 > 1:06:42essential and the only route to solving the humanitarian crisis in

1:06:42 > 1:06:46the medium term, but access for aid is vital in the short term. I am

1:06:46 > 1:06:50glad the UK Government has raised this issue with the Crown prince.

1:06:50 > 1:06:54What was his response and does the government, if it sticks to its

1:06:54 > 1:07:00current position, have any hope that the Saudis will let in any vital

1:07:00 > 1:07:07supplies in the future?The Crown Prince's response on behalf of the

1:07:07 > 1:07:12kingdom of Saudi Arabia is to make the point about the need to control

1:07:12 > 1:07:15weapons which might threaten Saudi Arabia being smuggled into Yemen and

1:07:15 > 1:07:20being used by those with whom they are in conflict, as has been the

1:07:20 > 1:07:25case over a period of time. We worry that the sophistication of the

1:07:25 > 1:07:30missiles being smuggled in has increased and increase the risk not

1:07:30 > 1:07:34only to Saudi Arabia and neighbouring places, but the risk of

1:07:34 > 1:07:39the conflict escalating and becoming still worse. That is why there is a

1:07:39 > 1:07:43serious concentration on trying to prevent that because that looks

1:07:43 > 1:07:47likely to prolong the conflict and make the humanitarian situation

1:07:47 > 1:07:51still worse. But at the same time I understand the Crown Prince was

1:07:51 > 1:07:55absolutely aware, as the public statement to the Saudis made clear,

1:07:55 > 1:08:00that it was not the intention of the restrictions to cause the

1:08:00 > 1:08:04humanitarian concerns which are now dead, but to deal with the arms

1:08:04 > 1:08:09supplies being smuggled in. The agencies we work with and ourselves

1:08:09 > 1:08:14are impressing upon the coalition that that maybe the unintended

1:08:14 > 1:08:18effect and that is why those restrictions need to be lifted and

1:08:18 > 1:08:25the access that the honourable lady is looking for has to happen.Given

1:08:25 > 1:08:29that the United Nations has said recently that if this blockade is

1:08:29 > 1:08:35not lifted, we are likely to see the worst famine for decades, given the

1:08:35 > 1:08:39outbreak of diphtheria and cholera, could I urge my right honourable

1:08:39 > 1:08:45friend to bring to this house some kind of statement every week, not

1:08:45 > 1:08:50necessarily an oral statement, but in writing, because this situation

1:08:50 > 1:08:55is developing daily, weekly, and we must be kept informed to know what

1:08:55 > 1:09:00the situation is, hopefully a turn for the better.I thank my

1:09:00 > 1:09:04honourable friend for that. I will talk with the Department and the

1:09:04 > 1:09:08House authorities about what would be the best way to do that. I

1:09:08 > 1:09:11understand that, if there is a way to make sure there is adequate

1:09:11 > 1:09:16information from government and those other agencies involved

1:09:16 > 1:09:24rapidly and effectively and I shall try and do that.Like many others I

1:09:24 > 1:09:35condemned the missile attack on Riyadh and I would argue that but

1:09:35 > 1:09:46can I pressed the Minister on the discussions with Saudi Arabia. Is

1:09:46 > 1:09:49there any reason why the airport should not be reopened to

1:09:49 > 1:09:57humanitarian flights in the next 24 hours?I thank the honourable

1:09:57 > 1:10:03gentleman for the condemnation of the missile attack as indeed it came

1:10:03 > 1:10:06from his front bench. In terms of timescale we have asked these

1:10:06 > 1:10:12restrictions to be lifted immediately. I cannot speak for the

1:10:12 > 1:10:14coalition in relation to their timescale beyond the fact they want

1:10:14 > 1:10:20to be assured that the ports are adequately protected against this

1:10:20 > 1:10:25sort of attack which they saw. That is why we are urging that the UN are

1:10:25 > 1:10:30able to have access to those ports and to work with the coalition

1:10:30 > 1:10:33authorities with neither side is demanding that the other side move

1:10:33 > 1:10:39first in order to make sure there is an opportunity to secure the ports

1:10:39 > 1:10:43against weapons being smuggled in, but at the same time immediately

1:10:43 > 1:10:52improve the access.The missile attack on Riyadh takes the conflict

1:10:52 > 1:10:56to a new and dangerous phase, sending ripples through the Muslim

1:10:56 > 1:11:02world who are being urged to take sides, Sunni versus Shia, with a

1:11:02 > 1:11:08recent cold war between Saudi Arabia and Iran. Can my right honourable

1:11:08 > 1:11:14friend outlined the ways that we are tackling the deadlock and engaging

1:11:14 > 1:11:17with the humanitarian process?Can I thank my honourable friend for her

1:11:17 > 1:11:21perceptive question because it goes to the heart of this. This is

1:11:21 > 1:11:25another conflict in a region which is being fought out over people who

1:11:25 > 1:11:30don't deserve it and where the issues between regional powers have

1:11:30 > 1:11:35come into direct confrontation. My honourable friend is right to say

1:11:35 > 1:11:42the sophistication of the missile launched, at the Saudi equivalent of

1:11:42 > 1:11:45Heathrow, takes the conflict into a different sphere and had that

1:11:45 > 1:11:50missile landed on the airport, had it destroyed civilian airliners,

1:11:50 > 1:11:55passengers from all over the world, including possibly from the UK, we

1:11:55 > 1:12:00would have been facing a still greater crisis. My honourable friend

1:12:00 > 1:12:05is right to say our actions are not just perceived in relation to this

1:12:05 > 1:12:09particular conflict, they are perceived in relation to a wider

1:12:09 > 1:12:13issue between legitimacy and those who would seek to disrupt it, which

1:12:13 > 1:12:18is why again we need to bend all our efforts in the first place on the

1:12:18 > 1:12:23humanitarian side, but on the second to make sure the political

1:12:23 > 1:12:25negotiations and solutions improves the situation and does not make it

1:12:25 > 1:12:34worse.All of us would condemn the attack on Riyadh, the missile

1:12:34 > 1:12:40attack, but can I expressed some surprise that the Minister has been

1:12:40 > 1:12:45reluctant in using the word blockade? When the United Nations

1:12:45 > 1:12:50are warning that diesel and petrol will run dry inside a month and when

1:12:50 > 1:12:55we know that within that month 100,000 children already

1:12:55 > 1:13:00malnourished will die and Save the Children are saying 130 are dying

1:13:00 > 1:13:07every single day now, as well as pushing for the political solution

1:13:07 > 1:13:11which is absolutely necessary, is he giving any indication at all to

1:13:11 > 1:13:16Saudi Arabia that they could be in any way accountable for the deaths

1:13:16 > 1:13:27of what could be millions of people? Well again, I think the term that is

1:13:27 > 1:13:32described is less material than the impact. The impact of these

1:13:32 > 1:13:35restrictions are very clear. It has led to what the agencies have said

1:13:35 > 1:13:40about the warning about the running out of fuel, food and water and it

1:13:40 > 1:13:44is one of the reasons why the United Kingdom has called last week and

1:13:44 > 1:13:47again today for the immediate lifting of these restrictions

1:13:47 > 1:13:53subject to what we believe is reasonable controls by the coalition

1:13:53 > 1:13:56authorities to protect themselves. There is no doubt about the

1:13:56 > 1:14:01seriousness of this. I am not making any point about whether it is called

1:14:01 > 1:14:05a blockade or restrictions, it is the impact that is important and

1:14:05 > 1:14:09that is why we must work to relieve it with our partners as quickly as

1:14:09 > 1:14:15possible.I referred to the register. Given the supposition that

1:14:15 > 1:14:22the rebels will not engage in the important UN led process unless Iran

1:14:22 > 1:14:26allows them, and there is no interest in Iran to thaw relations

1:14:26 > 1:14:32with Saudi Arabia or improve Saudi Arabia's perception in the world,

1:14:32 > 1:14:39how does my right honourable friend CP is being delivered?Again, Mr

1:14:39 > 1:14:43Speaker, my honourable friend speaks with knowledge of the area and again

1:14:43 > 1:14:50another question which goes to the heart of the issue. Our perception

1:14:50 > 1:14:54is of course there are always channels available to different

1:14:54 > 1:14:59parties in conflict. It is one of the reasons why all the parties to

1:14:59 > 1:15:04the process are so important. We hope firstly that common humanity

1:15:04 > 1:15:08prevails in terms of what is being inflicted on the people of Yemen as

1:15:08 > 1:15:14a result of the insurgency, the attempted removal of a legitimate

1:15:14 > 1:15:18government and all that has flowed from it, and that the parties will

1:15:18 > 1:15:20appreciate there is no military solution and there has to be a

1:15:20 > 1:15:27political one. That applies to all parties. There are skilled

1:15:27 > 1:15:31negotiators, not least the UN special representative, those in the

1:15:31 > 1:15:35countries in the area who wish to see an end to this conflict because

1:15:35 > 1:15:39of the pain being suffered, and I pay tribute to the governments in

1:15:39 > 1:15:42the region who are attempting to mediate with both sides and the

1:15:42 > 1:15:48United Kingdom will give them every support.Can the Minister say a

1:15:48 > 1:15:52little bit more about practically how he thinks the security concerns

1:15:52 > 1:15:56of Saudi Arabia can be addressed to allow access to the humanitarian aid

1:15:56 > 1:16:06into Yemen?Mr Speaker, to answer the honourable lady, there is a UN

1:16:06 > 1:16:13verification and inspection mechanism which the UN works through

1:16:13 > 1:16:21its professionals and technicians to provide the tools for ensuring that

1:16:21 > 1:16:24supplies coming into ports are subject to the right sort of

1:16:24 > 1:16:30testing. My understanding is that the UN and Saudi Arabia are in

1:16:30 > 1:16:35contact in relation to this and that we would wish them to get on site as

1:16:35 > 1:16:44quickly as possible to do this. The problem I think with the smuggling

1:16:44 > 1:16:48of weapons is that they can go through various routes and that is

1:16:48 > 1:16:52always difficult, but we have to respond to the concerns of those who

1:16:52 > 1:16:58have had improved and increasingly sophisticated missiles targeting

1:16:58 > 1:17:01against them before there is a further catastrophe, but it should

1:17:01 > 1:17:06not be impossible to be able to satisfy security conditions as well

1:17:06 > 1:17:15as relieve humanitarian problems.I would highlight my entry in the

1:17:15 > 1:17:18register of members Brahma interests as someone in the past two has on a

1:17:18 > 1:17:23number of occasions spent time in Yemen. Can I associate myself with

1:17:23 > 1:17:26marks from both sides of the House with the tragedy befalling that

1:17:26 > 1:17:33country. The immediate priority must be the alleviation of humanitarian

1:17:33 > 1:17:38suffering, but would he agree with me that the UK should and must

1:17:38 > 1:17:42continue its work to facilitate a multilateral ceasefire followed by a

1:17:42 > 1:17:48political solution but that to have any long-term success, ultimately it

1:17:48 > 1:17:54must emerge among those in the conflict and not be imposed

1:17:54 > 1:18:00externally?Can I thank my oral friend who speaks with some

1:18:00 > 1:18:05knowledge of the area and the subject. Firstly, I would like to

1:18:05 > 1:18:08commend the efforts that Matthew Rycroft are permanent representative

1:18:08 > 1:18:12at the UN has been making in order to drive the UN process, and also

1:18:12 > 1:18:18our ambassador to Yemen for the efforts they have made to try and

1:18:18 > 1:18:23bring the parties together. Ultimately it must and should be the

1:18:23 > 1:18:29Yemeni solution. If we could go back to the opportunities presented by

1:18:29 > 1:18:32the National dialogue with the people of Yemen were so close to

1:18:32 > 1:18:34something different for them before those who have traditionally held

1:18:34 > 1:18:41power through the gun in the country reasserted themselves, that is the

1:18:41 > 1:18:46solution we would all wish for. But the reality is that will only come

1:18:46 > 1:18:50about when there is agreement between the current parties in the

1:18:50 > 1:18:57conflict to have to find a way to set their weapons aside.The closure

1:18:57 > 1:19:01of the airport has reportedly cost over 10,000 lives as it continues to

1:19:01 > 1:19:05restrict humanitarian assistance to stop it is paramount that the

1:19:05 > 1:19:11airport is open immediately. Exactly what recent representations has the

1:19:11 > 1:19:15Secretary of State made to the Saudi led coalition on reopening the

1:19:15 > 1:19:20international airport in Yemen?We agree with the honourable lady. It

1:19:20 > 1:19:26is not just a question of getting supplies in, it is getting

1:19:26 > 1:19:31humanitarian workers in and medical cases out. There is worry about the

1:19:31 > 1:19:35airspace around which is why there have been restrictions and concerns

1:19:35 > 1:19:40there. We recognise the importance of the airport and it is one of

1:19:40 > 1:19:44those areas of access that we would wish to see reopened as quickly as

1:19:44 > 1:19:52possible.

1:19:56 > 1:20:00It is highly commendable that the UK is the fourth-largest humanitarian

1:20:00 > 1:20:05donor to Yemen but equally we play a key role in diplomatic talks, not

1:20:05 > 1:20:09least with Saudi Arabia. So can the Minister give assurances that all

1:20:09 > 1:20:14pressure is being kept up on Saudi Arabia to get access lines open

1:20:14 > 1:20:16because Yemen are pretty much completely reliant on imports of

1:20:16 > 1:20:24food.Mr Speaker, my honourable friend against beaks with knowledge,

1:20:24 > 1:20:29some 90% of the food and supplies that Yemen needs is imported into

1:20:29 > 1:20:34the country. That is why these issues surrounding the ports and the

1:20:34 > 1:20:40airport are so very important. Again, the question makes it clear

1:20:40 > 1:20:44how important these issues are to the people of Yemen but why the

1:20:44 > 1:20:47United Kingdom is so engaged, not only in dealing directly with

1:20:47 > 1:20:52parties of the coalition, whose security concerns we understand, but

1:20:52 > 1:20:56we must also appreciate the humanitarian consequences of the

1:20:56 > 1:21:01actions they are taking to protect themselves.It is worth noting that

1:21:01 > 1:21:06the alliance in starting this war against a legitimate government is a

1:21:06 > 1:21:10brutal army that has done some brutal things and if you read the UN

1:21:10 > 1:21:16reports, you will see that. And the distances 750 miles to Riyadh, we

1:21:16 > 1:21:19are not talking about missiles made at the local foundry, this is

1:21:19 > 1:21:25high-tech imported equipment. And the vast majority of people

1:21:25 > 1:21:27suffering are in rebel held territory and they are blocking the

1:21:27 > 1:21:34peace process and what can we do to get them involved in peace in Yemen?

1:21:34 > 1:21:38I am grateful to the honourable gentleman who against beaks with

1:21:38 > 1:21:44some knowledge on the subject. And he puts some necessary balance into

1:21:44 > 1:21:49the conversation. Because it is much easier to pick up media interest in

1:21:49 > 1:21:54the Saudis and the coalition, it has been harder to talk about what the

1:21:54 > 1:21:59insurgency has done but he rightly points the finger at the numerous

1:21:59 > 1:22:03atrocities and human rights abuses they have conducted and their

1:22:03 > 1:22:09willingness to bring in missiles to spread the conflict emphasises how

1:22:09 > 1:22:14important it is to bring it to an end and why it is so important to

1:22:14 > 1:22:18support those who are trying to legitimately prevent them take over

1:22:18 > 1:22:28a country and subject them to more conflict and it will rule. -- ill

1:22:28 > 1:22:33rule.It is universal children's Day and it is estimated by the UN that

1:22:33 > 1:22:36over 2 million children are starving in Yemen, can the Minister assure

1:22:36 > 1:22:43the House that the government is doing all it can to enable aid in

1:22:43 > 1:22:48Yemen?Again, I can absolutely assure my honourable friend and we

1:22:48 > 1:22:54are doing that. I draw attention to their being two sides in this

1:22:54 > 1:22:58conflict and to make sure that both are contributing to an end to the

1:22:58 > 1:23:02conflict because that is the only thing that will make sure that in

1:23:02 > 1:23:07those areas that are currently under insurgent control that access to

1:23:07 > 1:23:11food, medicine and water is given. The heart-rending pictures of those

1:23:11 > 1:23:15children who are suffering is an affront on a day like today which is

1:23:15 > 1:23:22why we must continue to give all our efforts to bring every blue -- bring

1:23:22 > 1:23:29a conclusion to this conflict.He hopes it will be dealt with by

1:23:29 > 1:23:32diplomatic means, but if the blockade continues, due to the

1:23:32 > 1:23:37pressing nature of the crisis, will the British government give

1:23:37 > 1:23:43sanctions against the Saudis especially in terms of arms exports?

1:23:43 > 1:23:48Again, I have to say to the honourable gentleman, we are some

1:23:48 > 1:23:54way away from that. We are working extremely hard with the coalition to

1:23:54 > 1:23:58understand the impact of those who would bring missiles to target their

1:23:58 > 1:24:03airports and the civilian population and I think threatening them with

1:24:03 > 1:24:09sanctions in this situation are not appropriate. And to only recognise

1:24:09 > 1:24:12one side in this conflict only gives comfort to those who wish to prolong

1:24:12 > 1:24:17the conflict -- prolong the conflict. I am sure he doesn't mean

1:24:17 > 1:24:22to convey that but that is why we are working so hard at a negotiated

1:24:22 > 1:24:27solution to the good office of states in the region.The conflict

1:24:27 > 1:24:37in Yemen has led to a cholera outbreak which has affected --

1:24:37 > 1:24:40caused the death of 2000 people. With the Yemeni medical system

1:24:40 > 1:24:49having collapsed, what has been done to stem the spread of cholera, which

1:24:49 > 1:24:53is treatable and to make sure people have access to clean thinking water

1:24:53 > 1:24:58which for too many people has been out of reach due to rising prices,

1:24:58 > 1:25:05lack of fuel for delivery and the blockade?I am grateful to him. One

1:25:05 > 1:25:09of the problems in the region has been the nonpayment of Public health

1:25:09 > 1:25:15workers. And I have had three conversations with the current

1:25:15 > 1:25:20president of Yemen to urge the government of Yemen to make finance

1:25:20 > 1:25:24available to pay those workers whose job it is to try and assist those

1:25:24 > 1:25:31who might be likely to get cholera. I know that some of the aid agencies

1:25:31 > 1:25:34have stepped into the breach and paid people to do the same which has

1:25:34 > 1:25:40been magnificent. But the United Kingdom has played its part, we have

1:25:40 > 1:25:45given £27 million to Unicef to treat children with acute knowledge fish

1:25:45 > 1:25:50in and provide safe water supply and to support mobile health clinics

1:25:50 > 1:25:56with a specific £6 million allocated towards cholera response. We have

1:25:56 > 1:26:01supported a vaccination programme but access is vital in relation to

1:26:01 > 1:26:05this. We work with partners and that is the way to help tackle the

1:26:05 > 1:26:12cholera epidemic.I would like to condemn in the strong as possible

1:26:12 > 1:26:16terms the missile attack on a civilian target in Riyadh, there

1:26:16 > 1:26:20have been many attacks on civilian targets in Yemen, I would like to

1:26:20 > 1:26:28ask the Minister what plans the government has in terms of the arms

1:26:28 > 1:26:35trade with Saudi Arabia?As has been mentioned before, arms licences in

1:26:35 > 1:26:40the United Kingdom are subject to strict controls. Everything is done

1:26:40 > 1:26:46on a case-by-case basis. In terms of international humanitarian law, I

1:26:46 > 1:26:52would stress to the House that we talk about the compliance of

1:26:52 > 1:26:56humanitarian law with the Saudi Arabian government and other members

1:26:56 > 1:27:02of the coalition. Saudi Arabia has said it will investigate reports of

1:27:02 > 1:27:09violations of international law. The joint incidence assessment team has

1:27:09 > 1:27:13announced the findings of 36 investigations with the most isn't

1:27:13 > 1:27:19released on 12 of September 2017 so it is all taken very seriously and

1:27:19 > 1:27:23he is right to condemn the missile attack as well, as he did at the

1:27:23 > 1:27:28beginning of his comments. Could be Minister please outline to the House

1:27:28 > 1:27:32what this government is doing to bring all parties together so that

1:27:32 > 1:27:36we can find a collective solution to this tragedy? The efforts to bring

1:27:36 > 1:27:43all parties together have pursued a number of different lines,

1:27:43 > 1:27:48effectively from this summer onwards and the months before that. The New

1:27:48 > 1:27:53York General Assembly am I hosted a meeting of the so-called quad, the

1:27:53 > 1:28:02United States, UAE, Saudi Arabia and the UN in order to see what could be

1:28:02 > 1:28:08achieved. There is a meeting of the quad and the Quint, which includes

1:28:08 > 1:28:20the Armani Burrell macro because we believe -- with Omar and. To work

1:28:20 > 1:28:29with those using back channels to make sure there is no future in what

1:28:29 > 1:28:32they are doing in terms of conflict but there are have to say those in

1:28:32 > 1:28:36the region, I have to be clear about this, there are people who make

1:28:36 > 1:28:43money out of the conflict. Too many Yemenis has said there are too many

1:28:43 > 1:28:46involved in the conflict that are comfortable with it going on. It is

1:28:46 > 1:28:50hard for us to understand how dreadful that is but it is true. We

1:28:50 > 1:28:54have do make sure that getting to peace is more beneficial for more

1:28:54 > 1:29:01people than those who wish to perpetrate war.The firing of

1:29:01 > 1:29:06short-range ballistic missiles towards Riyadh is designed to be

1:29:06 > 1:29:13provocative. I am worried by some reports that the insurgents are now

1:29:13 > 1:29:19able to manufacture a short list could missile, perhaps a KR one. But

1:29:19 > 1:29:24I can't believe they would have that level of sophistication, could I ask

1:29:24 > 1:29:30my right honourable friend for his opinion.There are some matters on

1:29:30 > 1:29:37which I am really unqualified. And on which my honourable friend's

1:29:37 > 1:29:41background and others in the House would be rather greater. I have no

1:29:41 > 1:29:44comment to make on the detailed sophistication of weaponry used in

1:29:44 > 1:29:50the conflict except to say that some very sophisticated weaponry appears

1:29:50 > 1:29:55to be coming in that is a threat to the region as a whole and through

1:29:55 > 1:29:59that, to all of us. You'll agree the self effacement of the Minister of

1:29:59 > 1:30:07State is not only unsurpassed, it is unequalled in this House.Mr Kevin

1:30:07 > 1:30:12Foster.Thank you Mr Speaker. I welcome the Minister's statement and

1:30:12 > 1:30:16his comments so far in recognition of the humanitarian disaster in

1:30:16 > 1:30:22Yemen. Can he perhaps explain a bit more on the exact work we will be

1:30:22 > 1:30:28doing as a member of the Security Council to help the UN get the aid

1:30:28 > 1:30:35that is desperately needed into Yemen?Mr Speaker, holding the pen

1:30:35 > 1:30:41at the UN, meaning that within the Security Council, the United Kingdom

1:30:41 > 1:30:47has the primary responsibility among the Security Council for efforts to

1:30:47 > 1:30:51secure support for a negotiated peace, the UK sponsored a

1:30:51 > 1:30:55presidential statement agreed on the 15th of June. That was an important

1:30:55 > 1:31:00statement of international concern in terms of the deteriorating

1:31:00 > 1:31:08humanitarian situation. That work is going on in the UN all the time to

1:31:08 > 1:31:12convert that into action.I am grateful to the Minister for coming

1:31:12 > 1:31:16to the House today with his statement and for continuing to keep

1:31:16 > 1:31:22us updated. I wonder if he can outline efforts that the government

1:31:22 > 1:31:27and diplomatic staff are undertaking to unlock the political deadlock of

1:31:27 > 1:31:34this terrible situation?Mr Speaker, part of the problem as I alluded to

1:31:34 > 1:31:39a moment ago is that some parties have become comfortable with the

1:31:39 > 1:31:45conflict and some parties in Yemen have been able to make a living with

1:31:45 > 1:31:53the conflict going on. And there have to be incentives to people to

1:31:53 > 1:31:58make sure that a piece can be reached. To most of us, this is

1:31:58 > 1:32:01horrendous, that anyone should be in that position but the reality is

1:32:01 > 1:32:05that after a couple of years of conflict in the region have to be

1:32:05 > 1:32:10understood. You talk to Yemeni s themselves to understand their

1:32:10 > 1:32:14frustration, that is where the will of states must come in in order to

1:32:14 > 1:32:20make sure they can enforce a negotiated peace but above all make

1:32:20 > 1:32:23sure that those responsible for others realise that the only future

1:32:23 > 1:32:27for the people of Yemen is not in a continual state of conflict but in

1:32:27 > 1:32:32having a government of the consent of the people that can take a

1:32:32 > 1:32:36wonderful country full of culture and music and architecture and all

1:32:36 > 1:32:40of the good things that we rarely talk about, give those people a

1:32:40 > 1:32:49chance of the future they richly deserve.Unicef itself has praised

1:32:49 > 1:32:52the UK for the aid it has contributed to the country and I

1:32:52 > 1:32:57wonder if he would say a little more about the pressure that he feels can

1:32:57 > 1:33:01be brought on Iraq and to end its supply to the insurgents who are

1:33:01 > 1:33:06still indulging in things like forced marriage and the use of

1:33:06 > 1:33:16children as soldiers?Our relationship with Iraq is changing

1:33:16 > 1:33:27-- with Iraq and -- with Iran. There are many things of difference

1:33:27 > 1:33:31between us, not least their support for what we consider to be

1:33:31 > 1:33:36insurgency and terrorist action, how they see the world is different to

1:33:36 > 1:33:41others in the region. But the logical consequence of that not

1:33:41 > 1:33:47being addressed is dire. If there are pathways to encourage people to

1:33:47 > 1:33:54see their region differently and to try and create relationships that

1:33:54 > 1:33:58would at present seem difficult, then the United Kingdom's role is to

1:33:58 > 1:34:01encourage that. Already there are relationships in the region that 50

1:34:01 > 1:34:04years ago you would not have expected between certain states in

1:34:04 > 1:34:08the region. So who knows what can happen in the future and we will do

1:34:08 > 1:34:14what we can to help those in the region to encourage them towards a

1:34:14 > 1:34:19regional situation which no longer relies on confrontation but on

1:34:19 > 1:34:28consensual support for their peoples.I refer members to my entry

1:34:28 > 1:34:32into the register of interests. Considering the awful humanitarian

1:34:32 > 1:34:40situation, despite the missile being fired into Saudi Arabia, does he

1:34:40 > 1:34:45believe that it is possible to get more aid, through trusted UK aid to

1:34:45 > 1:34:47the Yemeni people?

1:34:53 > 1:34:58I can say to my honourable friend that although there is some access

1:34:58 > 1:35:02through the southern ports, the quality of access is not good enough

1:35:02 > 1:35:06and does not cover enough areas, although we are looking to use any

1:35:06 > 1:35:11means we can with our partners to get aid in. More access is needed

1:35:11 > 1:35:17which is why we want to ensure that the ports are safe for those who

1:35:17 > 1:35:22fear weapons coming in, but are open to the humanitarian access so badly

1:35:22 > 1:35:29needed.Following on from the minister's response to my honourable

1:35:29 > 1:35:32and gallant friend, does he share my concern that there appears to be a

1:35:32 > 1:35:37serious breach of the UN Security Council resolution to the ultimate

1:35:37 > 1:35:42costs and the worsening conditions for the people of Yemen. What can

1:35:42 > 1:35:54the UK do to assist the UN?I honourable friend is right, there is

1:35:54 > 1:35:57a UN investigation taking place into the circumstances surrounding the

1:35:57 > 1:36:02missile. We are certainly concerned about where the parts of that

1:36:02 > 1:36:07missile may well have come from and it could indeed be a breach of the

1:36:07 > 1:36:13arms embargo. We have offered the UN all our technical expertise because

1:36:13 > 1:36:16it is essential that incident is fully investigated as it is unfair

1:36:16 > 1:36:22to cast aspersions if they are not correct, but above all we must stop

1:36:22 > 1:36:26the smuggling getting in because that is part of the key to improving

1:36:26 > 1:36:31humanitarian access.I fear that almost inevitably it will be

1:36:31 > 1:36:34necessary for these matters to be aired again in the chamber before

1:36:34 > 1:36:43very long. Point of order.You may be aware we are awaiting results of

1:36:43 > 1:36:47successful elections in Somalia and all of us in this house are in the

1:36:47 > 1:36:56all-party group are watching closely and that all parties will establish

1:36:56 > 1:37:00mechanisms to resolve grievances. Do you have any notice of any statement

1:37:00 > 1:37:05or update from the Foreign Office on those important elections, not least

1:37:05 > 1:37:09given the UK funding for the imported monitoring mission there?

1:37:09 > 1:37:15The answer is I do not, but I hope it will be forthcoming soon because

1:37:15 > 1:37:19it is a matter of concern to many members across the House. However, I

1:37:19 > 1:37:25might add in parenthesis the honourable member did not know and

1:37:25 > 1:37:29at this moment does not know, but is about to know, namely that in the

1:37:29 > 1:37:33distant past I was myself a member of that all-party group and made

1:37:33 > 1:37:39common cause with the honourable member for Bristol East and it is a

1:37:39 > 1:37:42matter of considerable interest to me as well. I am sure ministers on

1:37:42 > 1:37:45the Treasury bench will have heard what the honourable gentleman has

1:37:45 > 1:37:50said and hope the House will be enlightened before very long. If

1:37:50 > 1:37:54there are no further points of order, we now come to the three

1:37:54 > 1:38:04founding resolutions for the taxation cross-border trade bill.

1:38:04 > 1:38:08Before I called the financial Secretary to the Treasury to move

1:38:08 > 1:38:11the first ways and means motion, I should make clear to the House that

1:38:11 > 1:38:17all three founding resolutions will be debated together. I informed the

1:38:17 > 1:38:23House that I have selected amendments E and F in the name of

1:38:23 > 1:38:29the honourable gentleman, the member for Edinburgh South. To move the

1:38:29 > 1:38:32duties of customers ways and means motion I called the financial

1:38:32 > 1:38:39Secretary to the Treasury.Mel stride. Thank you, Mr Speaker. I beg

1:38:39 > 1:38:48to move the ways and means motion relation to duties in customers.

1:38:48 > 1:38:52Since the decision of the British people to leave the European Union

1:38:52 > 1:38:56in June last year, the government has taken a number of significant

1:38:56 > 1:39:00steps to put that decision into action from triggering Article 50

1:39:00 > 1:39:06two taking forward the European Union withdrawal bill and

1:39:06 > 1:39:09undertaking the extensive consultation and planning that

1:39:09 > 1:39:14informs our negotiating objectives. Madame Deputy Speaker, the

1:39:14 > 1:39:17resolutions before us today represent another essential step in

1:39:17 > 1:39:23this process for what we are here to debate is the legislation for a new

1:39:23 > 1:39:27customs regime to be in place by the time the United Kingdom leaves the

1:39:27 > 1:39:33EU and the EU customs union. In so doing it allows the UK to respond to

1:39:33 > 1:39:37the outcome of the negotiations. I do not need to tell the House how

1:39:37 > 1:39:42important this is. The taxation cross-border trade bill will pave

1:39:42 > 1:39:48the way for new domestic legislation that will enable the UK to establish

1:39:48 > 1:39:52a stand-alone customs regime, including by allowing the UK to

1:39:52 > 1:39:57charge customs duty on goods including those imported from the

1:39:57 > 1:40:00European Union, allowing the government to set out how and in

1:40:00 > 1:40:05what form customs declarations should be made, and giving the UK

1:40:05 > 1:40:09the freedom to vary the raids of import duty as necessary, in

1:40:09 > 1:40:14particular in the case of trade remedies, investigations and for

1:40:14 > 1:40:18developing countries. I will give way.I am extremely grateful to the

1:40:18 > 1:40:26Minister. He mentioned the decision that the government had already

1:40:26 > 1:40:31taken. Before it decided to trigger Article 50 and to begin this

1:40:31 > 1:40:35process, did it give any consideration to the complications

1:40:35 > 1:40:37that would be caused in the relationship between Northern

1:40:37 > 1:40:42Ireland and the Republic of Ireland as was explained to the Foreign

1:40:42 > 1:40:47Affairs Select Committee when we were in Dublin last week?The

1:40:47 > 1:40:51consideration the government gave an exercise in Article 50 was a

1:40:51 > 1:40:55consideration of the decision of the British people in June of last year

1:40:55 > 1:41:00to decide that they wished to leave the European Union. On the specific

1:41:00 > 1:41:04point of Northern Ireland and Ireland border, we have made it very

1:41:04 > 1:41:09clear and we are of the same mind as the European Union and the Irish

1:41:09 > 1:41:13Republic that there should be no return to the borders of the past

1:41:13 > 1:41:18and we are committed to as frictionless a solution as possible

1:41:18 > 1:41:23for the border between Northern Ireland and the Irish public.He

1:41:23 > 1:41:26will be aware that the Irish Prime Minister has called for the UK

1:41:26 > 1:41:30Government to give a written guarantee that there will be no

1:41:30 > 1:41:35border controls. Is the minister able to do that?We have made it

1:41:35 > 1:41:39clear on numerous occasions that we have no intention of reverting to

1:41:39 > 1:41:44the borders of the past, the hard borders, and to make sure that we

1:41:44 > 1:41:50take fully into account the unique political and cultural circumstances

1:41:50 > 1:41:55of Northern Ireland and the Irish Republic. Madame Deputy Speaker, in

1:41:55 > 1:41:58addition the bill will modify elements of our excise legislation

1:41:58 > 1:42:05to ensure this functions effectively upon EU exit. The bill will give the

1:42:05 > 1:42:09UK the power to implement new arrangements that will ensure trade

1:42:09 > 1:42:13is as frictionless as possible. I will certainly give way to the

1:42:13 > 1:42:20honourable lady.I thank the Minister. Has he heard the judgment

1:42:20 > 1:42:25of the UK chamber of shipping which talks about absolute catastrophe

1:42:25 > 1:42:32unless issues relating to transport through the pores is resolved? Does

1:42:32 > 1:42:38the government take this issue seriously?The honourable lady

1:42:38 > 1:42:43raises an extremely important point, particularly in relation to pause. I

1:42:43 > 1:42:47have met with the chief executive of the pores in Dover and the staff

1:42:47 > 1:42:52down there and HMRC are variously engaged with all the ports in the

1:42:52 > 1:42:56UK. We recognise the paramount importance of ensuring we have fluid

1:42:56 > 1:43:02trade flows across those ports. The honourable lady will know that in

1:43:02 > 1:43:05the white paper we set out quite clearly the kind of approaches we

1:43:05 > 1:43:12will be taking it necessary in order to ensure that those trade flows are

1:43:12 > 1:43:16indeed rapid and effective and that trade is kept moving. I will give

1:43:16 > 1:43:23way to the honourable lady.He will know from our time on the Finance

1:43:23 > 1:43:26Bill my concern that small businesses in Britain will be

1:43:26 > 1:43:32saddled with the 13th directive on VAT. He has to set out that the

1:43:32 > 1:43:36government intends for a new director to come into place. Can he

1:43:36 > 1:43:39clarify he is expecting British businesses to deal with the 13th

1:43:39 > 1:43:46directive?When we leave the European Union we will gain further

1:43:46 > 1:43:50control over VAT, although that depends upon the precise nature of

1:43:50 > 1:43:55the deal that is negotiated. It may be that we move from acquisition VAT

1:43:55 > 1:44:03to import VAT depending where that particular negotiation lands. As I

1:44:03 > 1:44:06say, the general principle is that the government is entirely committed

1:44:06 > 1:44:11to ensuring that the burdens on businesses are kept to the absolute

1:44:11 > 1:44:18minimum and trade flows are maintained. I give way.The Minister

1:44:18 > 1:44:23will be aware that the white paper on the trade bill was responded to

1:44:23 > 1:44:30quite heavily by manufacturing organisations, not least the ceramic

1:44:30 > 1:44:32federation who are genuinely concerned about the market trade

1:44:32 > 1:44:38remedies that will exist post Brexit in particular on. White goods such

1:44:38 > 1:44:41as tiles and tableware which can undermine the indigenous

1:44:41 > 1:44:47manufacturing base. Can the Minister give some indication as to the

1:44:47 > 1:44:52remedies when we leave the EU? The timing of the publication of the

1:44:52 > 1:44:56bill was very short and we cannot be sure whether those considerations

1:44:56 > 1:45:02have been taken into thought.The time for the closure of the

1:45:02 > 1:45:04consultation and the bulk of the measures to which the honourable

1:45:04 > 1:45:11member refers, these measures will be within days the bill and they are

1:45:11 > 1:45:16trade remedy measures around dumping excessive subsidy and around

1:45:16 > 1:45:21safeguarding. He will know that we take those issues extremely

1:45:21 > 1:45:25seriously and in the event that there is evidence of dumping and

1:45:25 > 1:45:31those other measures to which I have referred, there will be a trade

1:45:31 > 1:45:34remedies authority, the details of which have already been disclosed to

1:45:34 > 1:45:41the House in the trade bill, and that body and the Secretary of State

1:45:41 > 1:45:43at the Department of International trade will be able to work together

1:45:43 > 1:45:48to ensure that when there are issues of dumping and similar activity that

1:45:48 > 1:45:53we are able to take appropriate action in the normal manner. I will

1:45:53 > 1:45:59certainly give way.I thank the Minister. I wonder if he would like

1:45:59 > 1:46:05to comment on how much this will allow the VAT and customs system to

1:46:05 > 1:46:08continue whatever the outcome and whether there is enough flexibility

1:46:08 > 1:46:13built into this depending on what that outcome is?My honourable

1:46:13 > 1:46:18friend raises an important point which goes to the heart of what this

1:46:18 > 1:46:22bill is about. It is a framework Bill and allows us to make sure that

1:46:22 > 1:46:26we can deliver wherever the negotiation lands. It does not

1:46:26 > 1:46:31presuppose any particular outcome as a consequence of the negotiations,

1:46:31 > 1:46:34but it is there to enable those negotiations to be put into effect.

1:46:34 > 1:46:43I will give way.I made it very clear to the people in my

1:46:43 > 1:46:45constituency that I believe in our continuing membership of the customs

1:46:45 > 1:46:53union. Would this motion be able to cope with all eventualities,

1:46:53 > 1:46:57including staying a de facto member of the customs union through a

1:46:57 > 1:47:00period of transition and if everything goes the way I would like

1:47:00 > 1:47:05it to go that we could stay a member of the customs union even with this

1:47:05 > 1:47:11legislation if that is the will of the government and this place?The

1:47:11 > 1:47:16bill deals with is the situation of us leaving the European Union which

1:47:16 > 1:47:22means we will be leaving the customs union. But it does indeed allow for

1:47:22 > 1:47:25a transition period in which that could be a very close customs

1:47:25 > 1:47:31Association with the European Union. The member opposite asked how and he

1:47:31 > 1:47:37sees the bill which will be introduced this evening and he will

1:47:37 > 1:47:44become more enlightened as to how that can occur. It does facilitate a

1:47:44 > 1:47:51period of transition.Is specifically spoke about the ability

1:47:51 > 1:47:55to deliver on all the potential circumstances. Is he aware of the

1:47:55 > 1:48:01Home Office Select Committee report and the discussions with HMRC about

1:48:01 > 1:48:05concerns about the capacity to deal with different customs arrangements?

1:48:05 > 1:48:12The report says the Home Office is only giving an extra 300 staff by

1:48:12 > 1:48:172019 and 1920 HMRC says they need 5000 extra staff. What estimates has

1:48:17 > 1:48:24he made of how many staff are required and what they will cost?We

1:48:24 > 1:48:28will be guided by HMRC, which are closely working with them on those

1:48:28 > 1:48:33issues. John Thompson, the head of HMRC has suggested between 3000 and

1:48:33 > 1:48:385000 staff if we have a Day one contingency scenario if that is

1:48:38 > 1:48:43where we end up. He and HMRC are in discussions with us at the moment as

1:48:43 > 1:48:50to the timing of pressing the button on those particular issues and the

1:48:50 > 1:48:54costs involved. But the honourable member can rest assured that

1:48:54 > 1:48:58whatever resources HMRC requires to make sure that we are ready on day

1:48:58 > 1:49:05one, HMRC will be provided with.Can he sure as that the bill that we do

1:49:05 > 1:49:13not have which we will be able to see, will it contain arrangements

1:49:13 > 1:49:23for sanitary and sanitary regulatory checks at Dover, the Channel Tunnel

1:49:23 > 1:49:28entrance and exit, because they are not there at present? If we would

1:49:28 > 1:49:31introduce customs checks, we would introduce those regulatory checks as

1:49:31 > 1:49:37well. Has the HMRC allowed for that in the budget as well?The

1:49:37 > 1:49:42honourable gentleman makes it sound as if the fact we do not have the

1:49:42 > 1:49:46bill right now is somewhat inappropriate or not right. This is

1:49:46 > 1:49:51a Finance Bill, taxation bill, it is coming in on ways and Means and I

1:49:51 > 1:49:55will introduce the bill at the of this debate and will have the

1:49:55 > 1:49:58opportunity to walk the floor accordingly and to be admired by

1:49:58 > 1:50:02many members across all sides of the House when I do so. He will be aware

1:50:02 > 1:50:11that HMRC and negotiations are ongoing and they will come out of

1:50:11 > 1:50:23those discussions and negotiations in the normal manner.

1:50:23 > 1:50:26With the honourable gentleman agree that there is some false

1:50:26 > 1:50:32misunderstanding. Our trade with the rest of the world is what life will

1:50:32 > 1:50:37be like outside of the EU. We are replicating something that already

1:50:37 > 1:50:41exists around the table with the rest of the world that dwarfs what

1:50:41 > 1:50:50we do with the EU.Our country, our nation is quite capable of making

1:50:50 > 1:50:56sure that wherever the negotiation mans we will have the resources,

1:50:56 > 1:51:01tyrants and wherewithal to make a success of Brexit and engage in our

1:51:01 > 1:51:05future trading arrangements. In terms of the actual bill in that

1:51:05 > 1:51:09context, the important thing is that it does not presuppose any

1:51:09 > 1:51:13particular outcome but it facilitates which ever outcome we

1:51:13 > 1:51:20finally arrived at. I will certainly give way.Would he agree with me

1:51:20 > 1:51:24that it's wrong to say that fighters and to reach checks don't happen at

1:51:24 > 1:51:32the moment. Potentially, at any rate. We experienced it in 2001 with

1:51:32 > 1:51:37the BSE outbreak. These things are real and happen from time to time.

1:51:37 > 1:51:43It is right that we should be able to maintain public health and animal

1:51:43 > 1:51:49health and are perfectly capable of doing so outside the European Union.

1:51:49 > 1:51:53There is nothing in this bill that acts counter to act in the way that

1:51:53 > 1:52:03he has suggested. Very glad to give way.I'm very grateful. 80% of the

1:52:03 > 1:52:08UK's freight movement goes through the Channel Tunnel and the port of

1:52:08 > 1:52:13Dover. Anything that delays that processing will cause massive

1:52:13 > 1:52:16backlogs and the physical infrastructure is not yet in place

1:52:16 > 1:52:20to do that. Alongside the bill, does he believe that we need to make sure

1:52:20 > 1:52:23the resources are there so that whatever is on the Seri is in place

1:52:23 > 1:52:28on day one to make sure the physical infrastructure can support

1:52:28 > 1:52:31cross-channel trade.This is a critical point. These are the issues

1:52:31 > 1:52:38I discussed with the Chief Executive at Dover when I visited. I have

1:52:38 > 1:52:43regular discussions with HMRC on these matters and they in turn have

1:52:43 > 1:52:47regular Round Table events and a close association particularly with

1:52:47 > 1:52:52the Port of Dover. He is absolutely right that we have to make sure that

1:52:52 > 1:52:56trade is fluid and moves quickly across that border and he will have

1:52:56 > 1:53:01noted the suggestions set down in the White Paper in that respect with

1:53:01 > 1:53:05the pre-lodging of customs declarations away from the port,

1:53:05 > 1:53:08indeed, from Calais in that particular instance and making sure

1:53:08 > 1:53:12that we have the right inventory software available in the Port

1:53:12 > 1:53:16itself so we can match of the goods in coming against the declarations

1:53:16 > 1:53:25to make sure that we keep the flow going. If I may just finished. As to

1:53:25 > 1:53:29his specific question about whether I believe we are ready. I do believe

1:53:29 > 1:53:34that we will be ready. I believe that the IT system that is coming in

1:53:34 > 1:53:40place will be ready by January and we will start seeing businesses and

1:53:40 > 1:53:44trade is migrating to that system in August next year. We will be in the

1:53:44 > 1:53:48position that we want to be come they won. I give way to the right

1:53:48 > 1:53:54honourable gentleman.In the meeting that he had with the Port of Dover

1:53:54 > 1:54:01and I have also met with them, what did the Chief Executive say about

1:54:01 > 1:54:06the extra average processing time per vehicle for the port to stop

1:54:06 > 1:54:12functioning?The figure is very low. It's a matter of a couple of

1:54:12 > 1:54:16minutes. If the system stopped for more than a couple of minutes, you

1:54:16 > 1:54:21would start to see major problems which is why we're placing such an

1:54:21 > 1:54:28extremely high priority on making sure that our ports continue as

1:54:28 > 1:54:36effectively as they should do. I give way to the honourable lady.I

1:54:36 > 1:54:42thank him for his fulsome responses. How does it relate to our biggest

1:54:42 > 1:54:49port by value, Heathrow Airport, will Heathrow be ready for this

1:54:49 > 1:54:55process when it comes in? Absolutely, Madame Deputy Speaker,

1:54:55 > 1:55:02in the case of Dover, most of the traffic is trade within the U

1:55:02 > 1:55:06whereas a high proportion of the trade going into Heathrow is more

1:55:06 > 1:55:09international than simply the European Union. There is greater

1:55:09 > 1:55:17engagement already with third country trading, as it were. We are

1:55:17 > 1:55:21confident that Heathrow will be ready. I give way to my honourable

1:55:21 > 1:55:27friend.I thank my right honourable friend who is making a typically

1:55:27 > 1:55:31powerful and effective exposition on this incredibly complex and detailed

1:55:31 > 1:55:37area. Would he agree that it is really important for Channel 4 is

1:55:37 > 1:55:43that there is parking facilities and resilience will turn off the 20 so

1:55:43 > 1:55:47that whatever eventuality arises, in terms of needing to do checks,

1:55:47 > 1:55:51whether it's be for animal health or customs purposes, that we have the

1:55:51 > 1:55:56facilities in place on day one?I thank my honourable friend for that

1:55:56 > 1:56:02intervention. Before I address his specific question I thank him also

1:56:02 > 1:56:07for the insights and I have to say fairly powerful lobbying that he has

1:56:07 > 1:56:13quite rightly made on behalf of the Port of Dover and his constituents.

1:56:13 > 1:56:17As to the specific question of being ready in terms of infrastructure, we

1:56:17 > 1:56:23certainly recognise that we need to have infrastructure there, that the

1:56:23 > 1:56:30port itself would not be generally able to handle a large number of

1:56:30 > 1:56:35stoppages, for example at any one time, and I have been down to the

1:56:35 > 1:56:40port to inspect the facilities there and I certainly appreciate that. It

1:56:40 > 1:56:45is something that is receiving ongoing consideration. I give way to

1:56:45 > 1:56:51the right honourable lady.Thank you. Could he tell us what financial

1:56:51 > 1:56:58provision is going to be made if operation stamp is going to be

1:56:58 > 1:57:02required to put into practice on the 20 every week or of not more so if

1:57:02 > 1:57:12there is a blockage at the port? Operation stamp, not because of a

1:57:12 > 1:57:14general deficiency in customs arrangements but because of what

1:57:14 > 1:57:19happened on the French side of the channel, in the event that those

1:57:19 > 1:57:23situations occur again, which I suppose it could do, irrespective of

1:57:23 > 1:57:27the arrangements we have for customs, the government will make

1:57:27 > 1:57:31sure that we have sufficient resource to deal with that

1:57:31 > 1:57:36eventuality. As I said, in terms of the customs arrangements themselves

1:57:36 > 1:57:41under resourcing of the facilities and the arrangement we need to put

1:57:41 > 1:57:44into place, we are confident that they will be there to keep the

1:57:44 > 1:57:54traffic moving on day one. Very happy to give way.In the interests

1:57:54 > 1:58:01of my constituents as well, could the Minister confirm perhaps in

1:58:01 > 1:58:05writing afterwards, that the £250 million that the government

1:58:05 > 1:58:18allocated in the Autumn Statement two years ago towards the relief

1:58:18 > 1:58:23parking that those funds are still available. My constituents would

1:58:23 > 1:58:25benefit from knowing that the budget allocated towards the project is

1:58:25 > 1:58:32still there.I think in terms of making progress, Kazi have taken a

1:58:32 > 1:58:35large number of interventions, I will do as my right honourable

1:58:35 > 1:58:40friend suggests and write to him on the specifics he has raised.Working

1:58:40 > 1:58:46in tandem with the trade bill that was introduced in Parliament next

1:58:46 > 1:58:50month, all of that which is providing content unity in

1:58:50 > 1:58:57transition that everybody which to see.Let me be with the house that

1:58:57 > 1:59:01the EU will leave the custom into union, it is a critical factor of

1:59:01 > 1:59:05allowing the UK to forge a new relationship with new partners

1:59:05 > 1:59:11around the world, leaving the EU customs union will allow the UK to

1:59:11 > 1:59:14negotiate its own trade agreements. Trade agreements that will be solely

1:59:14 > 1:59:19based around the UK's national interest and needs and yet we will

1:59:19 > 1:59:23also need to make sure we have an ambitious new customers relationship

1:59:23 > 1:59:29with the EU that allows us to keep trade as free and frictionless as

1:59:29 > 1:59:33possible. As the Prime Minister has been clear, while we are leaving the

1:59:33 > 1:59:39Yukon what we are not leaving Europe. Having mutually beneficial

1:59:39 > 1:59:43customs, VAT and excise arrangements is clearly a benefit to all sides.

1:59:43 > 1:59:47We've been hearing from hundreds of businesses about this matter since

1:59:47 > 1:59:54the referendum. The government remains firmly committed to removing

1:59:54 > 1:59:58any physical land border structure between Ireland and the UK, as we

1:59:58 > 2:00:03have said. This is a point of absolute importance. Their

2:00:03 > 2:00:07commitment to the Good Friday Agreement and their focus on

2:00:07 > 2:00:11flexible and creative solutions to avoid a hard border. We look forward

2:00:11 > 2:00:22to making progress on these issues. Ensuring EU and UK trade that is

2:00:22 > 2:00:24frictionless as possible and avoiding a hard border on the island

2:00:24 > 2:00:31of Ireland, the government has set out to options. One is a highly

2:00:31 > 2:00:36streamlined customs arrangement. This includes numbers of measures to

2:00:36 > 2:00:41avoid barriers to trade, continued access to some facilitation is that

2:00:41 > 2:00:45our trade is currently enjoy. Introducing innovative new

2:00:45 > 2:00:52technology solutions to stop delays. The other is a new customs

2:00:52 > 2:00:57partnership. An unprecedented and innovative approach under which the

2:00:57 > 2:01:01UK would mirror the EU's requirements from imports form the

2:01:01 > 2:01:05rest of the world removing the need for a formal customs border between

2:01:05 > 2:01:09the UK and the year. Either of these options would take time to put in

2:01:09 > 2:01:17place. Cliff edge changes are in no one's interests. Businesses should

2:01:17 > 2:01:20only have two are just wants to new customers relationship. For that

2:01:20 > 2:01:27reason, we are proposing an implementation period during which

2:01:27 > 2:01:30governments in both the UK and the European Union would have time to

2:01:30 > 2:01:36adapt. How long that would last, and the form it takes, would be a matter

2:01:36 > 2:01:40for negotiations. It would of course cover issues beyond customers. As

2:01:40 > 2:01:46the Prime Minister has set out, the duration should be linked as the

2:01:46 > 2:01:56time prepared to test our relationship with the EU, a period

2:01:56 > 2:02:00of about two years. There are sensible steps that we can take now

2:02:00 > 2:02:05to prepare for the future. This bill is one of those steps. It provides a

2:02:05 > 2:02:08new framework for customs regime that will allow the government to

2:02:08 > 2:02:13give effect to a range of outcomes negotiations, including a

2:02:13 > 2:02:17instrumentation period. This Bill will, as far as possible, replicate

2:02:17 > 2:02:25the effect of existing customs union laws. It is only right that the

2:02:25 > 2:02:32government should prepare for all eventualities. This will enable the

2:02:32 > 2:02:37government to have effective customs relations even if a deal is not

2:02:37 > 2:02:42agreed with the EU. That is what the government hopes and expects to

2:02:42 > 2:02:49achieve. This Bill is about laying the groundwork for our successful

2:02:49 > 2:02:53future outside the European Union. Trade is clearly going to be a key

2:02:53 > 2:02:59part of that. The UK has been a great trading nation and the trade

2:02:59 > 2:03:04with non-EU countries is equivalent to about half our exports. Getting

2:03:04 > 2:03:09arrangements right to support that is vital. We need to pursue trade

2:03:09 > 2:03:12deals with partners across the world while at the same time keeping our

2:03:12 > 2:03:18trade with the EU is frictionless as possible and avoiding a hard border

2:03:18 > 2:03:20between Northern Ireland and Ireland. This Bill is a crucial

2:03:20 > 2:03:29stepping stone to these new arrangements.The question is as on

2:03:29 > 2:03:36the order paper. Mr petered out.At last, we have the ways and means

2:03:36 > 2:03:42motion before the house. The Muslim part of it is that it doesn't have

2:03:42 > 2:03:46much to say about practically anything about taxation cross

2:03:46 > 2:03:50borders or trade which is somewhat perplexing given the title of the

2:03:50 > 2:03:56bill. The only word in the title that is in any way reflective of the

2:03:56 > 2:04:01title is the word bill. I wait with bated breath for the customs bill

2:04:01 > 2:04:06which I trust will have in this regard, hopes springs eternal, more

2:04:06 > 2:04:13substance to it. Perhaps we will see more of the same powers, to alter

2:04:13 > 2:04:17primary legislation going into the back pockets of ministers. However,

2:04:17 > 2:04:21in this ways and means motion, if it is the warm acts of the customs

2:04:21 > 2:04:28bill, I imagine it will be just as disappointing, vague, OK, abstruse.

2:04:28 > 2:04:43I look at the recommend is -- observations from the customs bill

2:04:43 > 2:04:48legislating future customs VAT it says routines, making a number of

2:04:48 > 2:04:53observations which are worth highlighting here. In paragraph 1.3

2:04:53 > 2:04:58states that the paper gives rise to an unusually complex mix of legal

2:04:58 > 2:05:02and technical issues within equally complex political constraints. This

2:05:02 > 2:05:06is not our remit to enter into debate about the political

2:05:06 > 2:05:09constraints but a lack of clarity around political constraints makes

2:05:09 > 2:05:17the technical analysis is somewhat more difficult.

2:05:17 > 2:05:23I think that is a fair reflection in measured tones on what we think.

2:05:23 > 2:05:30Neal -- in the manner in which the EU because the Asians have meant

2:05:30 > 2:05:35that the deal that the PM wants name a streamlined customs arrangements

2:05:35 > 2:05:38with the vacillations of the government in general and the back

2:05:38 > 2:05:42secretary in particular and that is very worrying. It is very worrying

2:05:42 > 2:05:46and that the government continues to be dragged kicking and screaming

2:05:46 > 2:05:49into this chamber on any issue it feels comfortable debating and when

2:05:49 > 2:05:54it does it tries to curtail it. The Institute also has something to say

2:05:54 > 2:06:00in that paragraph 5.4 at 5.5, we acknowledge the predicament of

2:06:00 > 2:06:04needing to begin a legislative process before knowing the outcome

2:06:04 > 2:06:06of the negotiations, however, we have concerns about the limited

2:06:06 > 2:06:12level of scrutiny that is lawmaking process allows. Given the political

2:06:12 > 2:06:16uncertainty, the potential for large-scale changes and tight

2:06:16 > 2:06:21timescales, the bill we understand will have the power to amend primary

2:06:21 > 2:06:24legislation using secondary legislation, raising similar

2:06:24 > 2:06:29concerns about delegated powers as with the EU withdrawal bill. And it

2:06:29 > 2:06:33is even dragging its feet on the production of the 58 impact

2:06:33 > 2:06:39assessments from two weeks after the house demanded them. Madam Deputy

2:06:39 > 2:06:42Speaker, the opposition recognises the need for the government to be in

2:06:42 > 2:06:46preparation for an independent customs and tariff regime, this is

2:06:46 > 2:06:50logical and necessary, however that does not mean giving the government

2:06:50 > 2:06:55a blank cheque to concentrate power in the hands of the executive. The

2:06:55 > 2:06:58upcoming taxation cross-border trade bill to outline the powers of the

2:06:58 > 2:07:03new trade remedies authority whose creation as outlined in the

2:07:03 > 2:07:06government's trade bill, let me be clear, while Labour supported the

2:07:06 > 2:07:09creation of a truly independent trade remedies authority to help

2:07:09 > 2:07:14protect UK industry and at by the government on how best to tackle the

2:07:14 > 2:07:18dumping of state subsidised cheap goods on the UK market, we don't

2:07:18 > 2:07:29want to see the authority, high elves --, Hiles by a catastrophe

2:07:29 > 2:07:35best to dismantle key sectors of the UK economy. Instead we want to see a

2:07:35 > 2:07:37trade remedies authority that reports directly to Parliament

2:07:37 > 2:07:41rather than to the Department of International trade. It should have

2:07:41 > 2:07:44representatives from trade, the trade union movement, British

2:07:44 > 2:07:50business elite of the devolved authorities. We will not allow this

2:07:50 > 2:07:56has to be sidestepped by a government consumed by chaos.

2:07:56 > 2:08:03Whether it is by the Henry VIII Paris EU withdrawal bill of the

2:08:03 > 2:08:06delegated powers, this government has shown an unhealthy obsession for

2:08:06 > 2:08:09cementing power in the hands of the executive and shying away from any

2:08:09 > 2:08:16Parliamentary scrutiny. I will.I thank my honourable friend for

2:08:16 > 2:08:20allowing me to intervene at this part of his contribution. It seems

2:08:20 > 2:08:25to me that the mantra of taking back control during the EU referendum

2:08:25 > 2:08:27essentially means taking back control from ministers and not the

2:08:27 > 2:08:33democratically elected parliament. My honourable friend hits the nail

2:08:33 > 2:08:38on the head, that has been the line discovered has taken, the power

2:08:38 > 2:08:43stops in Westminster and does not go beyond. It is quite frankly a sham.

2:08:43 > 2:08:46The government can't bring itself to include in this way is an means

2:08:46 > 2:08:51motion any reference whatsoever to Parliamentary scrutiny. It does not

2:08:51 > 2:08:55like that. At every opportunity even if the government has contempt for

2:08:55 > 2:08:58this house we will show the government will be forced to explain

2:08:58 > 2:09:03why it is so frightened of Parliamentary scrutiny. At every

2:09:03 > 2:09:08corner it will be required to explain in the cold light of day why

2:09:08 > 2:09:12it seems so reluctant to send ministers to the dispatch box to

2:09:12 > 2:09:17explain the government's rationale. Now the government in its full

2:09:17 > 2:09:19generosity will claim that it has set aside eight days to debate the

2:09:19 > 2:09:24withdrawal bill and how it has set aside other days to discuss Brexit

2:09:24 > 2:09:28but in the withdrawal bill itself it is institutionalising the accretion

2:09:28 > 2:09:32of powers to the executive that are quite unheard-of in modern history

2:09:32 > 2:09:39of this country. Madam Deputy Speaker, frankly, we have got the

2:09:39 > 2:09:42front bench huffing and puffing but that is the reality, the accretion

2:09:42 > 2:09:49of power to ministers is absolutely disgraceful. We have to go back to

2:09:49 > 2:09:53the Second World War to see powers of this magnitude and extend

2:09:53 > 2:09:59reserved to the government. And which were after the one is

2:09:59 > 2:10:06practical. They have the good reason in that situation in so far it was a

2:10:06 > 2:10:08national government, a true coalition, united against one of the

2:10:08 > 2:10:14most odious regimes. And the methods being used to save in Parliament are

2:10:14 > 2:10:17quite shocking, mad and everyday Speaker, and I think history will

2:10:17 > 2:10:21treat this government with the contempt it deserves for its

2:10:21 > 2:10:27fictional and attempts to disenfranchise this house.I thank

2:10:27 > 2:10:29the honourable member for giving way and I have patiently listen to what

2:10:29 > 2:10:34he has to say at -- mad and everyday speaker and he has referred to the

2:10:34 > 2:10:36powers within the European withdrawal bill and he has also

2:10:36 > 2:10:44referred to the PRA which is not the, well the operation of the PRA,

2:10:44 > 2:10:48the independence or otherwise of the TRA, which is not actually either of

2:10:48 > 2:10:52the items included in this bill so what is in this bill which he wishes

2:10:52 > 2:10:56to make a point about Madam Deputy Speaker?The honourable member

2:10:56 > 2:11:02misses the point, it is part of the whole process of this government to

2:11:02 > 2:11:06accrue and accrue powers to itself. I know the honourable gentlemen and

2:11:06 > 2:11:11ladies opposite do not seem to grasp the concept of that but that is the

2:11:11 > 2:11:14fact, the fact is that the government continue to pool powers

2:11:14 > 2:11:18to itself and it pulls powers to itself and does not devolve into any

2:11:18 > 2:11:26of the other NES, any of the other nations.I thank you for giving way

2:11:26 > 2:11:29but I think he is struggling on this because it makes evident sense that

2:11:29 > 2:11:31the government should have the powers to be able to deal with all

2:11:31 > 2:11:36eventualities, perhaps you could help by explain to us what is the

2:11:36 > 2:11:41current policy of the Labour Party on the customs union? Can we find

2:11:41 > 2:11:46out, are they in favour or against the remaining in a customs union in

2:11:46 > 2:11:49fact to article to transition? And how they are in favour of staying in

2:11:49 > 2:11:54the customs union by way of a final deal, which I think is an eminently

2:11:54 > 2:11:57good idea.I tell you what we are in favour of, we are in favour of

2:11:57 > 2:12:03Parliament -- Parliamentary scrutiny. And we are in favour of

2:12:03 > 2:12:10Parliamentary scrutiny. It was John Bright who reportedly coined the

2:12:10 > 2:12:14phrase the mother of Parliaments, which is completely alien to the

2:12:14 > 2:12:18side opposite and obviously the honourable lady, I suspect he along

2:12:18 > 2:12:21with many other radical and Conservative parliamentarians would

2:12:21 > 2:12:25be turning in their graves at the idea that the government living on

2:12:25 > 2:12:30borrowed time, living on borrowed time, have the arrogance, hubris and

2:12:30 > 2:12:34others with the blaster to treat Parliament in the fashion this

2:12:34 > 2:12:38government has -- is intent on doing. Members of the other side

2:12:38 > 2:12:40have to ask themselves this question, if their constituents and

2:12:40 > 2:12:45sent them to this house to acquiesce in the systematic stripping away of

2:12:45 > 2:12:49Parliamentary scrutiny, which is not in the national interest, why didn't

2:12:49 > 2:12:54send them here to hold the government of the day to account

2:12:54 > 2:12:57regardless of their party allegiance? However, the minister

2:12:57 > 2:13:01should take seriously the concerns as I have raised, as have many

2:13:01 > 2:13:04others in the house and outside the house about their fast and loose

2:13:04 > 2:13:11approach to the government, approach the government is taking to power it

2:13:11 > 2:13:21is good now. I will.I thank the honourable gentleman. He has not

2:13:21 > 2:13:23answered the incredibly important intervention made by my right

2:13:23 > 2:13:26honourable friend the member for Block store, and can I ask you

2:13:26 > 2:13:32different question, Amendment E, which is the unofficial opposition

2:13:32 > 2:13:36resolution amendment that has been tabled, will he be supporting it or

2:13:36 > 2:13:42not?The fact of the matter is, we are not closing of options, which

2:13:42 > 2:13:45settings to be an obsession, a pathological obsession from other

2:13:45 > 2:13:51sites do. So I hope between now and the second reading, the government

2:13:51 > 2:13:57will consider the importance of comprehensive Parliamentary

2:13:57 > 2:14:00oversight and pay attention to the concerns of this house in relation

2:14:00 > 2:14:09to this whole question.Marcus Fish. Thank you Madam Deputy Speaker. It

2:14:09 > 2:14:14is a pleasure to stand here tonight and to talk about this bill on

2:14:14 > 2:14:20behalf of my constituents in Yeovil. They might be a bit surprised having

2:14:20 > 2:14:26listened to the honourable death the other side's speech just now,

2:14:26 > 2:14:28thinking that there was no point to this place at all. But actually what

2:14:28 > 2:14:34we are doing here tonight is giving her consent if we pass these

2:14:34 > 2:14:40resolutions to the government bringing in a bill which is a key

2:14:40 > 2:14:45part of the enablement of the proper machinery of government if and as we

2:14:45 > 2:14:52leave the European Union. This is not a warm up act for the bill

2:14:52 > 2:14:58itself, this is a gateway that we need to give it, which is entirely

2:14:58 > 2:15:04sensible. This is about her consent, essentially, for the government

2:15:04 > 2:15:06making changes to financial matters that will affect everyone of our

2:15:06 > 2:15:13constituents. It is as part of those mechanics that there is a massive

2:15:13 > 2:15:17opportunity that we see you now to effectively set our own tariffs and

2:15:17 > 2:15:25our own duties as we go forward as a nation to set their own trade policy

2:15:25 > 2:15:30and all that goes with that. But it is a very technical matter. I will

2:15:30 > 2:15:35give way.I think -- I thank the honourable member for giving way. He

2:15:35 > 2:15:38talks about this as though it is entirely a unilateral decision on

2:15:38 > 2:15:41our part, what tariffs and trade agreement we have. We have to get

2:15:41 > 2:15:45into the wide world and try and negotiate these trade agreements.

2:15:45 > 2:15:48Does he not acknowledge that we are now in a much weaker bargaining

2:15:48 > 2:15:53position than we were when we were negotiating is part of the EU?I

2:15:53 > 2:15:56don't accept that at all but I thank the honourable lady for her

2:15:56 > 2:16:01intervention. I actually do think it is a major opportunity to think

2:16:01 > 2:16:06about what tariffs are best for all of our economy and not always have

2:16:06 > 2:16:10to be thinking about just the EU. And I think it is actually a really

2:16:10 > 2:16:15big opportunity to shape many of our industry is rarely have just had to

2:16:15 > 2:16:20cope with a one size fits all solution for many years now. But our

2:16:20 > 2:16:26ability to cope on day one is really depended on these measures in the

2:16:26 > 2:16:31bill which will be coming forward. And I have to thank my honourable

2:16:31 > 2:16:36friend for listening so intently when I have been slightly haranguing

2:16:36 > 2:16:41him on trying to ensure that we have enough resource and application to

2:16:41 > 2:16:45these very detailed matters. It is absolutely right that it is a

2:16:45 > 2:16:50complex business, leaving the EU, it is not something that we can just

2:16:50 > 2:16:56assume is going to be fine. We need to devote resource and time and

2:16:56 > 2:17:00application and really get all of the best we can from the private

2:17:00 > 2:17:04sector advising us and helping others to make sure that we have the

2:17:04 > 2:17:09technological solutions that are going to be a part of those

2:17:09 > 2:17:18processes.I am grateful to my honourable friend for giving way.

2:17:18 > 2:17:22Would he agree with me that this bill that we are debating this

2:17:22 > 2:17:26evening is very much about preparing the way for when we leave the EU?

2:17:26 > 2:17:31And when we talk about the UK and foreign forward with the global

2:17:31 > 2:17:36Britain, it is about seeking every possible opportunity that we can to

2:17:36 > 2:17:38take our country forward.The honourable lady makes a very

2:17:38 > 2:17:43important point and I completely agree. It is massively important

2:17:43 > 2:17:49that we looked at the actual data and systems and I have talked a lot

2:17:49 > 2:17:54with ministers up till now about the customs declaration service, that

2:17:54 > 2:18:03we're getting in place by January of 2019, and I have been meeting with

2:18:03 > 2:18:07industry representatives and I have to thank my honourable friend the

2:18:07 > 2:18:11Minister from Dover for organising some of these is a very efficient

2:18:11 > 2:18:14fashion and I think they have been incredibly useful in trying to bring

2:18:14 > 2:18:19key civil servants and key stakeholders upto date with exactly

2:18:19 > 2:18:24what is required. And I don't think we have to reinvent the wheel, we

2:18:24 > 2:18:30don't need to go for the fill all singing all dancing new solutions

2:18:30 > 2:18:34overnight. I think there are some practical steps that we can take in

2:18:34 > 2:18:39the interim, we have from one of the panels about a system called intros

2:18:39 > 2:18:47that which is the system whereby the economic flows around the European

2:18:47 > 2:18:52Union based on actual transactions are recorded and it was suggested

2:18:52 > 2:19:01that it is possible to effectively pulled on the dressing of different

2:19:01 > 2:19:04liabilities onto that system through the customs system in parallel with

2:19:04 > 2:19:11it. So I think it is, you know, we need to make sure what our partners

2:19:11 > 2:19:16in the EU or any other part of the world want quite frankly is to know

2:19:16 > 2:19:19that we, when goods are moving across the border with them that

2:19:19 > 2:19:24they know what is in those consignments and whether they need

2:19:24 > 2:19:30to think about a tariff or think about some other regular Tory

2:19:30 > 2:19:38precision. It is massively important that we can talk to her counterparts

2:19:38 > 2:19:44on the other side and I would implore ministers to try and

2:19:44 > 2:19:46persuade the EU even though they have been very reluctant up until

2:19:46 > 2:19:52this point to allow the national member states customs authorities to

2:19:52 > 2:19:58talk properly to us about what data interfaces are going to be required

2:19:58 > 2:20:02for probably quite a lot of extra volume that we are going to need in

2:20:02 > 2:20:06terms of the number of transactions and considerations that they are

2:20:06 > 2:20:19going to have to make.

2:20:19 > 2:20:27Either way, whether it is a ramped up trade facilitation exercise which

2:20:27 > 2:20:31is the option one that the minister described earlier or whether it is a

2:20:31 > 2:20:37partnership based on a new type of tracing of the way goods move around

2:20:37 > 2:20:43our economy and across that external border from outside of hours and the

2:20:43 > 2:20:50EU at the moment, we are going to need to make locks of declarations

2:20:50 > 2:20:53of one kind or another and we are going to have to record those and

2:20:53 > 2:20:57the other side are going to have to be confident that what we say is the

2:20:57 > 2:21:02status of these goods is in fact the case. I just want to talk briefly

2:21:02 > 2:21:09about the VAT processing, I think it is the Cinderella of this

2:21:09 > 2:21:13conversation over the last few months, I think everyone's been

2:21:13 > 2:21:18focused on the duty side and not enough attention has been given to

2:21:18 > 2:21:23the VAT side. The manner of processing of VAT makes a difference

2:21:23 > 2:21:31to many businesses. It is a major cash flow issue to most businesses.

2:21:31 > 2:21:39If we want to keep open to ideas with our EU friends and allies and

2:21:39 > 2:21:43if we want to have good facilitation of cross-border trade, the ability

2:21:43 > 2:21:50for example for a vendor to attend a trade show and take samples with

2:21:50 > 2:21:56them is something that we need to address. If there is a VAT issue, it

2:21:56 > 2:22:01could be a problem. It's also a problem in the art world where very

2:22:01 > 2:22:05high-value objects are moving around. We need to think about that.

2:22:05 > 2:22:12Happy to give way.I agree exactly with what he says. Does he share my

2:22:12 > 2:22:16concern that at the moment because the government isn't giving clarity

2:22:16 > 2:22:23on this issue, it is very likely that companies will have to deal

2:22:23 > 2:22:27with the vagaries of the 13th directive unless we keep our current

2:22:27 > 2:22:34terms of trading whether it is through the single market or not.We

2:22:34 > 2:22:40need clarity as early as we can in the piece on all of these issues and

2:22:40 > 2:22:44I have invited ministers to come forward on that. Humming back to

2:22:44 > 2:22:49what we heard about Ireland through various interventions, one idea that

2:22:49 > 2:22:57I'd like the minister to think about is whether in the VAT resolutions we

2:22:57 > 2:23:01are confining ourselves to much by saying that we may not, or that the

2:23:01 > 2:23:06government through the bill may not make any amendments relating to VAT

2:23:06 > 2:23:10on the rates and exemptions and zero ratings, I say that because one of

2:23:10 > 2:23:14the issues with the Irish border historically and where the real

2:23:14 > 2:23:22problems came from when Ireland was given its independence, was the

2:23:22 > 2:23:27amount of smuggling on the border and the rates and the tariffs on

2:23:27 > 2:23:32goods going into the UK were definitely a major factor in that. I

2:23:32 > 2:23:35just at out there as an idea that one thing that we could look to do

2:23:35 > 2:23:43to smooth the feeling and the actual processes on the Irish border is, in

2:23:43 > 2:23:48fact, to make sure that as far as possible, our VAT rates are as

2:23:48 > 2:23:51harmonised as they could be so that there is notification for smuggling

2:23:51 > 2:24:00there.An extremely important point. In connection with the Irish border,

2:24:00 > 2:24:05would he agree with me that a derogation already exists

2:24:05 > 2:24:10potentially between the EU and neighbouring states through EC

2:24:10 > 2:24:15regulation 1931 of 2006 which allows particularly within a certain

2:24:15 > 2:24:20distance of the border, small and medium enterprises to avoid duties

2:24:20 > 2:24:27and customs, thus ensuring and promoting cross-border trade. It

2:24:27 > 2:24:31might be a model that could be appropriate in the island of

2:24:31 > 2:24:37Ireland.I thank the honourable gentleman for his intervention and

2:24:37 > 2:24:44he makes a very interesting point. I just want to finish by talking about

2:24:44 > 2:24:47Ireland little bit more. Essentially, the Irish economy is

2:24:47 > 2:24:52probably more to lose than any other party in the negotiations between us

2:24:52 > 2:25:01and EU. We've been talking in our papers about wanting to name the

2:25:01 > 2:25:08common transit convention. They are incredibly dependent on that. 80% of

2:25:08 > 2:25:15Ireland's trade with that goes by our UK land bridge. There are many

2:25:15 > 2:25:21issues with that, not least the licensing of drivers who drive those

2:25:21 > 2:25:24goods across the borders in a seamless fashion at the moment. We

2:25:24 > 2:25:30need to make sure that we focus on enabling that. I can't take any more

2:25:30 > 2:25:35because other people want to speak. I just throw it out there that I

2:25:35 > 2:25:42don't think that given the current apparent attitude of the government

2:25:42 > 2:25:46of the Republic are violent to some of these matters, I don't think that

2:25:46 > 2:25:50we should automatically assume that we would allow them access to the

2:25:50 > 2:25:55common transit convention and I would say that ministers should in

2:25:55 > 2:26:02fact take a pretty firm view of that given that we certainly don't want

2:26:02 > 2:26:10our islands and our nations to be split into different areas. With

2:26:10 > 2:26:21that, very happy to support these resolutions.Thank you very much, Mr

2:26:21 > 2:26:27Deputy Speaker. I'm pleased that the government have finally brought

2:26:27 > 2:26:33forward something that is at least a bit more solid than previously.

2:26:33 > 2:26:42Albeit, not yet very solid. Having looked at the Customs White Paper

2:26:42 > 2:26:48and Louisa May's resolutions, the Customs White Paper says to refer to

2:26:48 > 2:26:52the future partnership agreement. The Customs White Paper says to

2:26:52 > 2:26:56refer to the Northern Ireland position paper. That says to refer

2:26:56 > 2:27:03to the customs position paper. Having read all of the things, I'm

2:27:03 > 2:27:07still not particularly clear about how Customs will look after the UK

2:27:07 > 2:27:14leaves the EU. Not just I'm not clear about it, I'm not clear how

2:27:14 > 2:27:17the government wants it to look. The only thing I'm clear about is that

2:27:17 > 2:27:21they wanted to be as close to frictionless as possible but they

2:27:21 > 2:27:26have not made any clear commitment about how exactly they expect that

2:27:26 > 2:27:30to work. Having a look at some of the things they have said in some of

2:27:30 > 2:27:34the various papers that we are looking at, one of the things that

2:27:34 > 2:27:39they have said about Northern Ireland, for example is that they

2:27:39 > 2:27:42want to agree a time limited into fermentation period that allows for

2:27:42 > 2:27:51a smooth and orderly transition. I think now is an early period. Before

2:27:51 > 2:27:55now would have been a good time which to make those decisions and

2:27:55 > 2:28:01commitments and we should be there to business about what the direction

2:28:01 > 2:28:06of travel is. We are not there yet. We are very close to Brexit Bay. It

2:28:06 > 2:28:15is happening in March 20 19. The government has not been cleared with

2:28:15 > 2:28:22businesses about what its aspirations are out for how our

2:28:22 > 2:28:27Customs is going to look. It is undoubtedly the case that we benefit

2:28:27 > 2:28:31from being members of the EU single market and we benefit from being

2:28:31 > 2:28:36members of the Customs union. Even those people who are most severe

2:28:36 > 2:28:41sleep in favour of Brexit agree that we benefit from these things. The

2:28:41 > 2:28:47lower estimates of the GDP loss from leaving the customs union and single

2:28:47 > 2:28:55market are that we will lose 3.8% GDP. Other estimates of the trade

2:28:55 > 2:29:02deals that we will strike with Japan, USA, Canada, New Zealand and

2:29:02 > 2:29:07Australia all added together are 2.37 centage points. Significantly

2:29:07 > 2:29:11less than 3.8 that we are going to lose. Even at the best estimates, we

2:29:11 > 2:29:21are going to be down and some of those companies countries the EU a

2:29:21 > 2:29:24is close to striking a deal with anyway so they are notional

2:29:24 > 2:29:32benefits. A respected and independent Institute has said that

2:29:32 > 2:29:49a Huybrechts is could cost Scotland 5% GBP -- GDP. -- hard Brexit. In

2:29:49 > 2:29:54services alone, Scotland will lose £5 billion in exports. That is

2:29:54 > 2:30:00really significant. Scottish Government analysis says that a

2:30:00 > 2:30:06Scottish GDP could be around 11 billion a year lower by 2030 than if

2:30:06 > 2:30:09Brexit didn't occur. For these reasons and for many others, we have

2:30:09 > 2:30:14been clear from the beginning that we are against the exit. We are

2:30:14 > 2:30:18against driving off this cliff and the incredibly hard landing that

2:30:18 > 2:30:25will happen when the Grexit bus hits the bottom. Despite being against

2:30:25 > 2:30:33all these things, what we're trying to do in these talks is mitigate. If

2:30:33 > 2:30:37we are going to drive off the cliff, we want fewer spiky things at the

2:30:37 > 2:30:43bottom to be impaled upon. A number of things that I would want to

2:30:43 > 2:30:48discuss in relation to this bill. The government's White Paper on

2:30:48 > 2:30:55customers. I don't know how many of you have read it. The two scenarios

2:30:55 > 2:30:59that the government is proposing for ways in which the future

2:30:59 > 2:31:03relationship could work in terms of Customs. It also talks about

2:31:03 > 2:31:08contingency options. This is if the government doesn't get this

2:31:08 > 2:31:12aspirational bespoke deal that nobody ever has got and they don't

2:31:12 > 2:31:18know what it is. One of the things it says which I think people at home

2:31:18 > 2:31:23would be interested in hearing is that in a contingency situation, if

2:31:23 > 2:31:31people were being posted past months -- parcels from family members or

2:31:31 > 2:31:36businesses from within the EU, there wouldn't be a £15 VAT threshold.

2:31:36 > 2:31:39These are ways and Means resolutions that we are supposed to be agreeing

2:31:39 > 2:31:45to date allows the government to charge VAT on gifts that are being

2:31:45 > 2:31:50sent to from the EU. It is ridiculous. In other countries, if

2:31:50 > 2:31:55somebody gets a parcel from somebody in America, if it is less than £15,

2:31:55 > 2:32:03it is VAT exempt. The government is proposing in a content is G --

2:32:03 > 2:32:07contingency situation where this wouldn't happen be the case. People

2:32:07 > 2:32:11are going to be unhappy that they are going to have to pay a customs

2:32:11 > 2:32:16charge on presents or things coming from the EU. These things have not

2:32:16 > 2:32:21been laid out for people or discussed. I talked about the

2:32:21 > 2:32:26various papers. We are up to four. They have been compressive lease

2:32:26 > 2:32:33average. Not just by experts but by businesses who are the real experts

2:32:33 > 2:32:41in these things. Talking about Rohler, roll ports and the speed at

2:32:41 > 2:32:46which they have to come through the ports. The government has been

2:32:46 > 2:32:53trying and failing to solve the problems with operation Stack at

2:32:53 > 2:32:57Dover. The plan is that they had for sorting out operation Stack are dead

2:32:57 > 2:33:01in the water and they have to start again but don't worry, we will

2:33:01 > 2:33:05definitely have something done by March 2019 by which time the UK

2:33:05 > 2:33:14leaves the Customs union and the single market. Sa the honourable

2:33:14 > 2:33:18member would agree that the oil and gas industry largely trades outside

2:33:18 > 2:33:26the EU.They do not fear international trade. Are they wrong?

2:33:26 > 2:33:31I'm not saying anybody should fear international trade. At its a very

2:33:31 > 2:33:35good thing. Particularly for things like productivity which the island

2:33:35 > 2:33:39gas industry has been good at bringing up. The thing about

2:33:39 > 2:33:42productivity and international trade is that a more international trade

2:33:42 > 2:33:49you have, the more international productivity you have. Brexit is

2:33:49 > 2:33:58going to result in the UK having more say over the terms of some of

2:33:58 > 2:34:01the trade deals with third countries. It is not going to result

2:34:01 > 2:34:05in more international trade. The EU is international and made up of

2:34:05 > 2:34:13another of the other countries and there is going to be a reduction in

2:34:13 > 2:34:20frictionless trade to the EU as a result.The honourable member will

2:34:20 > 2:34:26have noticed a fair degree of anger across the house. Some members of

2:34:26 > 2:34:32the Saint obviously don't believe that Brexit isn't going to lead to

2:34:32 > 2:34:37increased international trade. They have done the assessment. They could

2:34:37 > 2:34:45publish those assessments and then we could find out for ourselves.

2:34:45 > 2:34:49I absolutely agree with my colleague. There is also the case of

2:34:49 > 2:34:54the National research Council, a research there did a report that

2:34:54 > 2:34:59talks about the differences between very comprehensive free trade

2:34:59 > 2:35:02agreements compared to being part of an organisation like the single

2:35:02 > 2:35:07market, which is pretty much unparalleled in the cross-border

2:35:07 > 2:35:09trade that it encourages. Being part of a very close free-trade

2:35:09 > 2:35:15arrangement does not allow you the same access of trade in services. As

2:35:15 > 2:35:20being part of the single market. It does not allow you the same access

2:35:20 > 2:35:24of trading goods as being part of the single market. So even with

2:35:24 > 2:35:26complaints of free-trade agreements with every country in the world, we

2:35:26 > 2:35:33are still going to lose out as a result of this. Mr Deputy Speaker,

2:35:33 > 2:35:37sorry I will give way once more.I am grateful to the honourable lady

2:35:37 > 2:35:43forgiving way. She expresses in her amendment a commendable --

2:35:43 > 2:35:47commendable encouragement to the EU which does its great credit but is

2:35:47 > 2:35:52she also concerned in the interest of being balanced and fair for much

2:35:52 > 2:35:55of Africa and South America who at the moment suffer the wet end of the

2:35:55 > 2:36:03customs union in the importation of raw food products into Europe, which

2:36:03 > 2:36:07because virtually impossible for many of them? Which you like to

2:36:07 > 2:36:10comment on that since I'm sure her party is very concerned about the

2:36:10 > 2:36:13well-being of people in those countries.It is an interesting case

2:36:13 > 2:36:18that the gentleman brings up, I have looked at the impact of this

2:36:18 > 2:36:23particular test the week that the WTO is set up, way developing

2:36:23 > 2:36:26countries have a level of protection in Paris. For example because of the

2:36:26 > 2:36:31week that the WTO considers them, because the developing countries, I

2:36:31 > 2:36:34think there is a likelihood that some of these things balance out but

2:36:34 > 2:36:39as I say aye have not looked into the exact details. I am aware that

2:36:39 > 2:36:43some of those people who support Brexit are suddenly concerned about

2:36:43 > 2:36:47how developing countries are going to cope with international trade,

2:36:47 > 2:36:49having not been particularly concerned about it before. I want to

2:36:49 > 2:36:55move on and talk about some of the impact in the changes that are

2:36:55 > 2:37:02proposed. I mentioned already the issues about receiving and sending

2:37:02 > 2:37:06parcels. I want to quote from the government's future customs paper.

2:37:06 > 2:37:10It says trade is a key driver of growth and prosperity. Stiglitz

2:37:10 > 2:37:13greater business efficiency and higher productivity, sharing

2:37:13 > 2:37:18knowledge and innovation across the globe. It goes on to say that it

2:37:18 > 2:37:22provides the foundation for more prosperous communities and insurers

2:37:22 > 2:37:26more people can access a wider choice of goods at a lower cost.

2:37:26 > 2:37:31These are all argument for staying in the customs union, not for

2:37:31 > 2:37:33leaving the customs union. Specifically on the issue of

2:37:33 > 2:37:38businesses the government has in all of these papers talked about

2:37:38 > 2:37:41consulting businesses. In all of the conversations that the government

2:37:41 > 2:37:45has had they say they have spoken to businesses. The problem is Mr Deputy

2:37:45 > 2:37:50Speaker that although governments are speaking to the government,

2:37:50 > 2:37:53businesses are lobbying the government, businesses are being as

2:37:53 > 2:37:58loud as they possibly can be about the impact of this. The government

2:37:58 > 2:38:02is not listening. The government has this aspirational picture of how

2:38:02 > 2:38:07wonderful Brexit is going to be and no matter how much evidence they are

2:38:07 > 2:38:12provided with to the contrary they still continue to push on, even

2:38:12 > 2:38:17people who supported remain on the government benches are suggesting

2:38:17 > 2:38:24that we will have benefits from Brexit, which is not right in my

2:38:24 > 2:38:29eyes. Mr Deputy Speaker couple of other things, the customs

2:38:29 > 2:38:31declaration service that was mentioned by the honourable member

2:38:31 > 2:38:39from Yeovil, is supposed to be up and running by January 20 19. Now

2:38:39 > 2:38:43the Minister is generally very good at explaining these things and he

2:38:43 > 2:38:47said that he is hoping to have it up and running and have pilots in soon

2:38:47 > 2:38:51and have it up and running by January 20 19. Mr Deputy Speaker,

2:38:51 > 2:38:57three months is not enough to fully test a customs declaration service,

2:38:57 > 2:39:03it is not enough to allow businesses to be able to hire and out all of

2:39:03 > 2:39:07the potential problems. It is not an for them to get used to the red

2:39:07 > 2:39:10tape. Just go back to the issues that the government has in some of

2:39:10 > 2:39:15the aspirations that it has in some of the idea that it has that

2:39:15 > 2:39:21honestly unworkable. In one of the main principles that it sets out in

2:39:21 > 2:39:28dealing with Northern Ireland, Ireland's trade, it says, these are

2:39:28 > 2:39:30the nine principles, consider how best to protect the integrity of

2:39:30 > 2:39:36both the EU customs union, single market and trade policy and the new

2:39:36 > 2:39:40independent UK customs regime, internal market and trade policy. In

2:39:40 > 2:39:43the context of finding imaginative solutions by recognising the

2:39:43 > 2:39:46solution will have to go on any previous powers. That is an

2:39:46 > 2:39:52aspiration without a solution. They are not even putting forward a

2:39:52 > 2:39:55potential solution, they cannot think of anything to square this

2:39:55 > 2:40:00circle and dig themselves out of a hole they have fallen. This is an

2:40:00 > 2:40:03unmitigated disaster, it is a disaster for businesses, it is a

2:40:03 > 2:40:06disaster for people at home. The changes the government are proposing

2:40:06 > 2:40:11are particularly -- and particularly the customs duties that are going to

2:40:11 > 2:40:18be put on good coming from and leaving the UK to the EU and back,

2:40:18 > 2:40:23those goods, a number of them clock -- cross the border and number of

2:40:23 > 2:40:27times. Organisations like car manufacturers and our aerospace

2:40:27 > 2:40:30manufacturers, those widgets for want of a better word cross the

2:40:30 > 2:40:34border from the UK to the EU and back sometimes many numbers of times

2:40:34 > 2:40:38before we come to the finished product. If each of those times

2:40:38 > 2:40:41there has to be a customs declaration made, if each of those

2:40:41 > 2:40:47times we have to have an increasing even a few minutes then that causes

2:40:47 > 2:40:50real problem is fully huge number of businesses. Businesses are speaking

2:40:50 > 2:40:54to the government and raising concerns, the government is not

2:40:54 > 2:40:59listening. What they need to do now, they need to give a clear direction

2:40:59 > 2:41:03to businesses, they need to be absolutely clear today that the

2:41:03 > 2:41:06aspiration, their intention is that we will not have customs duties

2:41:06 > 2:41:12between the UK and the EU and so they need to support the amendment

2:41:12 > 2:41:17on the order.Ross Thomson.Thank you very much. Great Britain's

2:41:17 > 2:41:22historical reputation as one of the greatest trading nations on earth

2:41:22 > 2:41:30can be revived and rejuvenated by Brexit. In freeing ourselves from

2:41:30 > 2:41:36her EU blinkers we can now open up our eyes to the rest of the world

2:41:36 > 2:41:41and the vastly opportunities that lie ahead of us. Scotland is a proud

2:41:41 > 2:41:46partner in the UK has played a crucial role in cementing Britain's

2:41:46 > 2:41:52place as a truly great trading nation. The city of Glasgow for

2:41:52 > 2:41:57example was a key trading centre for the UK and acted as an international

2:41:57 > 2:42:02business hub. For the last 40 years the UK has illegally been forbidden

2:42:02 > 2:42:11from striking its own trade deals. I would like to make progress. As we

2:42:11 > 2:42:15decouple from the EU, I am excited by the opportunity for Scotland to

2:42:15 > 2:42:22play a key role in the global trading Britain once again.I'm very

2:42:22 > 2:42:26grateful to the honourable gentleman forgiving way. He and I argued

2:42:26 > 2:42:30during the Scottish independence referendum one of the key issues in

2:42:30 > 2:42:32Scotland not leaving the UK was because they believe the UK single

2:42:32 > 2:42:36market and that would mean a hard border at Berwick. Does he think

2:42:36 > 2:42:41that is the same with Northern Ireland and the public?Let's be

2:42:41 > 2:42:43absolutely clear, given that referendum campaign we were on the

2:42:43 > 2:42:47same side. Let's be clear that on the White Paper that was produced by

2:42:47 > 2:42:51the Scottish Government they said on page 210 that the UK could very well

2:42:51 > 2:42:56leave the EU if we voted to stay within the UK. I think everyone had

2:42:56 > 2:42:59all the information at hand and voted with their eyes open.

2:42:59 > 2:43:09Therefore I think those are the benches opposite have...I'm

2:43:09 > 2:43:12grateful for the honourable gentleman for allowing to clarify,

2:43:12 > 2:43:15we were only seen the during the independence referendum at one of

2:43:15 > 2:43:21the key arguments we both made was that the UK as a single market would

2:43:21 > 2:43:24book Scotland was to become independent and it would require a

2:43:24 > 2:43:29hard border. The question is why is that not any different in Ireland

2:43:29 > 2:43:34now?No one wants to see a hard border between the UK and Ireland,

2:43:34 > 2:43:38but I was also clear in that referendum that I have always

2:43:38 > 2:43:43believed in Britain's future being out with the EU, so I did make that

2:43:43 > 2:43:47argument as I am sure that that others were more honest than their

2:43:47 > 2:43:53positions to within the Labour Party. Scotland's exports are

2:43:53 > 2:43:57world-renowned, I am sure myself in the member from Edinburgh South can

2:43:57 > 2:44:03agree on that. Whiskey is just one example of a British export success

2:44:03 > 2:44:08story. With more than 90% of Scotch whiskey being sold out with the UK.

2:44:08 > 2:44:13I would like to make more progress. The city I represent, Aberdeen, is a

2:44:13 > 2:44:17global leader in some of the most innovative sectors such as life

2:44:17 > 2:44:21sciences, new oil and gas technology and food and drink. As oil capital

2:44:21 > 2:44:26of Europe Aberdeen is a global city, and new bilateral trade deals

2:44:26 > 2:44:30whether that is with the US, South America, Africa or the Middle East

2:44:30 > 2:44:33will help the Granite city grow and take advantage of trade. No thank

2:44:33 > 2:44:41you. Take advantage of trade inward and outward investment. Further

2:44:41 > 2:44:46striking new trade deals will help unlock the potential of many more.

2:44:46 > 2:44:50Scottish businesses helping to make their mark right around the world

2:44:50 > 2:44:54and boosting our economy right here at home, too. In order to seize

2:44:54 > 2:44:59these opportunities and make the greatest possible success of them

2:44:59 > 2:45:05Britain needs to be ready on day one of our exit from the EU for new

2:45:05 > 2:45:10trade relationships. And on this point the clock is now ticking. That

2:45:10 > 2:45:15is why this customs bill is so important. Irrespective of any

2:45:15 > 2:45:18agreement reached between the UK and the EU is part of the negotiation

2:45:18 > 2:45:25and its process, the UK will need primary legislation for its own

2:45:25 > 2:45:30stand-alone customs regime and to amend the VAT and excise regime so

2:45:30 > 2:45:34they can function effectively after the UK has left the EU. This bill

2:45:34 > 2:45:39will contain a framework that lasts for a new UK customs regime, it will

2:45:39 > 2:45:43lay before us the necessary conditions to allow new arrangements

2:45:43 > 2:45:49on customs to be put in place depending on whatever outcomes the

2:45:49 > 2:45:51Brexit negotiations are such as a fermentation of negotiated

2:45:51 > 2:45:56settlement with the EU or leaving the EU without an agreement on

2:45:56 > 2:46:00customs. I am sure that all members in this house what our withdrawal

2:46:00 > 2:46:04from the EU to provide as much certainty and continuity is possible

2:46:04 > 2:46:11for our businesses, employees and consumers. Currently the majority of

2:46:11 > 2:46:14governing systems in the UK are contained in EU was such as the EU

2:46:14 > 2:46:17and Customs code it is a button at the stage that new domestic

2:46:17 > 2:46:20legislation is brought forward and put in place for when we leave the

2:46:20 > 2:46:27EU in March 20 19. Depending on the outcome of the negotiations with the

2:46:27 > 2:46:29EU the government will want to consult with possible changes to the

2:46:29 > 2:46:35slot to help UK businesses, but now was the time to help businesses in

2:46:35 > 2:46:41all other constituencies by providing the continuity exist -- in

2:46:41 > 2:46:44existing rules impossible. Further the government will ensure that its

2:46:44 > 2:46:48future customs regime as it does at present is consistent with

2:46:48 > 2:46:52internationally agreed rules and arrangements. So what does this mean

2:46:52 > 2:46:57in practice? As we all more trade is not just about the triggers we

2:46:57 > 2:47:01strike already growing markets are, it is also about tariffs, regular

2:47:01 > 2:47:09Tory barriers and things we set as part of UK policy. This bill tries

2:47:09 > 2:47:14to establish a new UK charity charge ditty on goods, set in very roots of

2:47:14 > 2:47:19customs duty and suspends duty at important -- at import and certain

2:47:19 > 2:47:26circumstances. The UK can set preferential duties, for example to

2:47:26 > 2:47:32developing countries. Free and fair trade is the greatest poverty

2:47:32 > 2:47:36alleviation policy and as the Secretary of State for International

2:47:36 > 2:47:39Development is ready highlighters, over the last generation more than 1

2:47:39 > 2:47:42billion people hadn't taken out of abject poverty thanks to the success

2:47:42 > 2:47:45of global trade. Therefore this bill will enable the development of

2:47:45 > 2:47:50policy that helps the world Buddhist and developing countries to trade

2:47:50 > 2:47:55their way out of poverty rather than simply depend on aid. And as we said

2:47:55 > 2:47:59an independent UK trade policy for the first time in 40 years and take

2:47:59 > 2:48:02up our own seat in the World Trade Organisation, we as champions of

2:48:02 > 2:48:05free trade can be at the forefront of ensuring that across the world

2:48:05 > 2:48:10there is an ever widening shelling of prosperity, a prosperity which

2:48:10 > 2:48:14encourages and develop social cohesion, underpinned political is

2:48:14 > 2:48:17-- belittle stability and support conflict resolution, which supports

2:48:17 > 2:48:21our own national security aims. Also contained in this bill is the

2:48:21 > 2:48:26ability for the garment to introduce trade remedies to protect domestic

2:48:26 > 2:48:29industries from injury caused by dumping subsidised or unexpected

2:48:29 > 2:48:34surges on imports. In all of this debate is the key point to bear in

2:48:34 > 2:48:38mind to stress is that once the UK is outside the customs union we will

2:48:38 > 2:48:43take our destiny into their own hands and we will be able to

2:48:43 > 2:48:45determine their own overall independent trade policy. We will no

2:48:45 > 2:48:50longer be bound by the EU protectionists tariff structure. We

2:48:50 > 2:48:53will have the choice to lower duties on goods and to lead the world in

2:48:53 > 2:48:57free and fair trade. We can take forward a policy that liberalise

2:48:57 > 2:49:01trade. I'm excited and optimistic about the deeper and freer trade

2:49:01 > 2:49:05deals he will be able to strike. I will support businesses and services

2:49:05 > 2:49:09in my constituency. The golden opportunities the opportunity to

2:49:09 > 2:49:12open up our markets and lead the world and liberalising trade across

2:49:12 > 2:49:16the globe. It is not every day that an economy the size of the UK gets

2:49:16 > 2:49:20to set up a new Department for trade, gets to set its own trade

2:49:20 > 2:49:23policy, this opportunity will not come again so let seize it with both

2:49:23 > 2:49:32hands.Ian Murray.Thank you very much. I will move in energy and

2:49:32 > 2:49:36effort the order paper in my name and that of my honourable friend 's.

2:49:36 > 2:49:43Can I first they say to the member for Aberdeen South, the reason I did

2:49:43 > 2:49:47make the event is open to his speech which I did not agree with the word

2:49:47 > 2:49:50he said but I thought it was a good speech and I know he and I have

2:49:50 > 2:49:56always disagreed on the EU, and robotic -- both respect each other's

2:49:56 > 2:49:59positions for doing that. I am a member for Parliament and elected

2:49:59 > 2:50:02member who wishes to stay in the EU, I am very much pro-EU and I know

2:50:02 > 2:50:06he's very much anti-European Union but I do have to say to the

2:50:06 > 2:50:10honourable gentleman that the incoherence of the two arguments

2:50:10 > 2:50:15that he makes that we can leave the single market and the customs union

2:50:15 > 2:50:20and the EU and have a frictionless seamless invisible border between

2:50:20 > 2:50:24Bath and Ireland and the Republic of Ireland when he made the argument

2:50:24 > 2:50:28during the Scottish and the tennis referendum that leaving the --

2:50:28 > 2:50:31leaving the single market would mean a hard border in good services and

2:50:31 > 2:50:34movement of people is completely intellectually incoherent and I

2:50:34 > 2:50:41think he does the issue of fighting against the scourge of independence

2:50:41 > 2:50:47in Scotland no good by making these contradictory arguments. I do say to

2:50:47 > 2:50:50him as someone to merely highlight the point that many of the arguments

2:50:50 > 2:50:54that are colleagues in the Scottish National Party make about staying in

2:50:54 > 2:50:57the EU and working with our closest colleagues and neighbours with

2:50:57 > 2:50:59regards to trade goods and free movement of people is completely

2:50:59 > 2:51:09contrary as well.

2:51:10 > 2:51:13I warned politicians that when they play with fire they tend to get

2:51:13 > 2:51:17burned.I am grateful for the honourable gentlemen, may I bring

2:51:17 > 2:51:24him back to the amendment he, it closes us options and prevent us

2:51:24 > 2:51:29from imposing tariffs on Pigem the EU. He has the scribe such closing

2:51:29 > 2:51:32off of options as pathological in his speech. The honourable gentleman

2:51:32 > 2:51:41always try smears being a very nice chap. -- always seems to be first at

2:51:41 > 2:51:46I was anticipating that, just not quite as early in my contribution. I

2:51:46 > 2:51:49said to the honourable gentleman that I agree and Che his condiments.

2:51:49 > 2:51:53He is one of the nicest gentlemen in this house as well. If I could just

2:51:53 > 2:51:57read out the line, if I could find it because it was much later in my

2:51:57 > 2:52:01contribution from the Labour Party byes position with regards to the

2:52:01 > 2:52:07customs union. But position is to have tariff free access throughout

2:52:07 > 2:52:10the transition period with the added option of the UK staying in the

2:52:10 > 2:52:14customs union. So that is the position of our front bench, one

2:52:14 > 2:52:18that is perfectly clear and chimes perfectly well with my amendments EN

2:52:18 > 2:52:24and F2 this and means bill. Can I also pay tribute to the honourable

2:52:24 > 2:52:27member for Aberdeen, disappointed her amendments weren't selected in

2:52:27 > 2:52:31this position. She has done a lot of work in bringing us to this place

2:52:31 > 2:52:36with regards to the ways and means petition in front of us, and I think

2:52:36 > 2:52:39the arguments it will have very much chime with the fact that we both

2:52:39 > 2:52:41want to stay within their singles market and the customs union, not

2:52:41 > 2:52:47from any ideological perspective, but from the businesses in the north

2:52:47 > 2:52:51and south require us to do that. It is impossible to suggest the United

2:52:51 > 2:52:57Kingdom should have exactly the same benefits of the single market and

2:52:57 > 2:53:01customs union, have a frictionless border and tariff free access not

2:53:01 > 2:53:03keep the single market and the customs union on the table. Just

2:53:03 > 2:53:11doesn't make sense.He is making a very powerful case. Often it is said

2:53:11 > 2:53:15sometimes we just need to supply this place. If it walks like a duck,

2:53:15 > 2:53:19talks like a duck, it is a duck. If everything the government is saying

2:53:19 > 2:53:22they want to looks like, sounds like the customs union and the single

2:53:22 > 2:53:28market, why on earth are we wasting time debating other things?I am

2:53:28 > 2:53:32tempted to say it is because they are all crackers, but I'm sure that

2:53:32 > 2:53:36will not go down very well in the chamber and I gave up on dad jokes

2:53:36 > 2:53:41on time ago but my honourable friend is right. It is indeed the case that

2:53:41 > 2:53:44the government are actually arguing for the single market and the

2:53:44 > 2:53:47customs union but don't want the single market and the customs union.

2:53:47 > 2:53:50I think that is why the customs union Bill which we will see

2:53:50 > 2:53:56tomorrow will show quite clearly that the government are hell-bent in

2:53:56 > 2:53:59their negotiations with the European Union to take us off a cliff edge

2:53:59 > 2:54:02and no deal would probably be their preferred option with regards to

2:54:02 > 2:54:06that and that is what they are promoting with this ways and means

2:54:06 > 2:54:09resolution.Would my honourable friend be intrigued to know that

2:54:09 > 2:54:12apparently a former minister in the department for exiting the European

2:54:12 > 2:54:15Union plans to make a speech tomorrow arguing for just that

2:54:15 > 2:54:18proposal, that we should abandon all plans, trade talks and move ahead on

2:54:18 > 2:54:25the way no deal WTO Brexit.If that is the case, the one thing that will

2:54:25 > 2:54:29fall from that speech is that anyone who were surprised that the minister

2:54:29 > 2:54:32makes that speech has not been listening to the debate today

2:54:32 > 2:54:35because it seems that the whole thrust of this government's

2:54:35 > 2:54:39negotiating position so far has been we should just walk away, a no deal

2:54:39 > 2:54:43would be the best deal to have, and as my honourable friend from

2:54:43 > 2:54:46Lewisham East said to the Prime Minister at Prime Minister's

2:54:46 > 2:54:49Questions not long ago that the Prime Minister is in thrall to the

2:54:49 > 2:54:56stream like -- right wing Brexiteers of the Conservative Party which is

2:54:56 > 2:55:04dictating their policy.I thank my honourable friend forgiving way. It

2:55:04 > 2:55:08is very important point he makes, should there be a no deal, we have

2:55:08 > 2:55:11to think about investment in this country because a lot of

2:55:11 > 2:55:14international companies are vested in this country with the option of

2:55:14 > 2:55:20being able to trade in Europe and could have very serious

2:55:20 > 2:55:23consequences, for industry in particular.It does. I will come

2:55:23 > 2:55:27onto more of these arguments later on but the foreign affairs select

2:55:27 > 2:55:29committee of which I am a member and visited the border regions in

2:55:29 > 2:55:33Ireland and Northern Ireland just last week, and one of the key

2:55:33 > 2:55:36concerns from businesses who employ many thousands of workers on either

2:55:36 > 2:55:42side of the border was they used the UK as the transit into the European

2:55:42 > 2:55:45Union, we are the landing strip for all of the goods they export through

2:55:45 > 2:55:48the United Kingdom into the European Union because it is the fast as

2:55:48 > 2:55:51possible way of doing that. The alternatives are not suitable for

2:55:51 > 2:55:56their businesses that would be exactly the same for businesses in

2:55:56 > 2:55:58Coventry, Aberdeen, businesses and Edinburgh South and indeed the

2:55:58 > 2:56:02honourable gentleman for Aberdeen South spokes are eloquently about

2:56:02 > 2:56:07the Scotch whiskey industry. One of the key things is they need easy

2:56:07 > 2:56:11access to the market in which to sell their products and they too are

2:56:11 > 2:56:17championing for as close a deal with the customs union as possible.My

2:56:17 > 2:56:21honourable friend mentions the Scotch whiskey industry, he will be

2:56:21 > 2:56:25aware that the finest Scotch whiskey in the world is seldom ceramic

2:56:25 > 2:56:29bottles made in my constituency, and exiting the European Union without a

2:56:29 > 2:56:31proper trade deal will see not only the price of the whiskey drop but

2:56:31 > 2:56:36also the cost of the bottle, which puts jobs in my constituency under

2:56:36 > 2:56:41threat. What does he make of the government's proposal so far for

2:56:41 > 2:56:47market trade Marie 's -- remedies?I am trade my Ashun Wu I am glad that

2:56:47 > 2:56:52my honourable friend has made that point, because it is a UK wide

2:56:52 > 2:56:58industry. If you disturb the main driver of that, which is indeed the

2:56:58 > 2:57:02whiskey coming out of Scotland, you certainly disturb attention of the

2:57:02 > 2:57:10jobs in your constituency.Much as I enjoy a decent Mort whiskey, the

2:57:10 > 2:57:13impact of leaving the customs union would be far greater of course, and

2:57:13 > 2:57:18if we take into account the agricultural industry, the defence

2:57:18 > 2:57:21in Street, aerospace, automotive, it is quite clear that the complex

2:57:21 > 2:57:27supply chains that we have at the moment in an integrated European

2:57:27 > 2:57:30Union marketplace could severely disrupt the UK economy if we don't

2:57:30 > 2:57:36get this right.That is why this ways and means motion, the three

2:57:36 > 2:57:41motions we have before us, and the customs bill when it comes forward,

2:57:41 > 2:57:44and the trade bill and a EU withdrawal bill, are so important,

2:57:44 > 2:57:49that brings me to one of the key points.Before he moves off the

2:57:49 > 2:57:52Scotch whiskey element I just wonder whether he would like to come and on

2:57:52 > 2:57:57the fact that recently several of us were in the room, and the groovy and

2:57:57 > 2:58:04ministers asked us, the British ambassador, what we would want out

2:58:04 > 2:58:09of a new fair trade deal with -- free trade deal with Peru after

2:58:09 > 2:58:12living Brexit? The preview and said we know we want, we want all Scotch

2:58:12 > 2:58:17whiskey to be made in Carew and not to be made in Scotland, or at least

2:58:17 > 2:58:2240% of it, or at least bottled in Peru, which rather undermines the

2:58:22 > 2:58:26whole argument made by the honourable member for Aberdeen South

2:58:26 > 2:58:29earlier, doesn't it?Yes, and it takes me down a road that the death

2:58:29 > 2:58:35of the speaker made. In terms of the issue around Scotch whiskey, not

2:58:35 > 2:58:40only does the EU give it solid legal protection but it also means you

2:58:40 > 2:58:46have to have the Scotch whiskey made in Scotland, and indeed my

2:58:46 > 2:58:49honourable friend from Stoke has already highlighted the fact it is a

2:58:49 > 2:58:51supply chain Christina the kingdom and we will be competing with

2:58:51 > 2:59:01markets that are much cheaper to market and packet and produce. It is

2:59:01 > 2:59:07money that pays for our public services and the jobs that keep

2:59:07 > 2:59:11people employed. Just while on that particular issue, I don't know it is

2:59:11 > 2:59:14the minister will be at the tiller is what representation he is making

2:59:14 > 2:59:18in these talks to leave the European Union about defending some of the

2:59:18 > 2:59:22big industries like aerospace, automotive is, the food & Drink

2:59:22 > 2:59:26industry underpinned by the Scotch whiskey industry in Scotland and

2:59:26 > 2:59:29what representation sea is going to make? Because it was quite clear in

2:59:29 > 2:59:34the 20 minutes or so that the minister spoke, but he said in

2:59:34 > 2:59:36answers to many questions from my honourable and right honourable

2:59:36 > 2:59:40friend that HRC will need more resources, customs will need more

2:59:40 > 2:59:44resources, everybody well. They can't tell us how much, while they

2:59:44 > 2:59:48were required, when they will get them and whether it will be enough.

2:59:48 > 2:59:53It is very easy to talk as a government minister in platitudes

2:59:53 > 2:59:57but actually we need solid answers as to how many people this will

2:59:57 > 3:00:03mean, how many it will require, and what the consequences will mean for

3:00:03 > 3:00:07the public purse.I thank him forgiving way, is he as surprised as

3:00:07 > 3:00:13I am that there are members opposite who seem to be quite content with

3:00:13 > 3:00:20recruiting 3000 to 5000 more people for HMRC, 1200 people to work in the

3:00:20 > 3:00:24Home Office, many of them from the EU because they are short of staff,

3:00:24 > 3:00:29incidentally. Wasn't this about getting rid of red tape? Yet it

3:00:29 > 3:00:33seems the government is willing to invest huge amounts in creating more

3:00:33 > 3:00:37amounts of rich tape -- red tape. That is a secondary argument the one

3:00:37 > 3:00:40I have been making about the government saying quite clearly we

3:00:40 > 3:00:44want other thing to be as close as possible, we want to be

3:00:44 > 3:00:48frictionless, as close to the customs union as we currently are.

3:00:48 > 3:00:52If you want that, if it walks like a duck and sons like a duck it is

3:00:52 > 3:00:55probably a duck, as my right honourable friend says. I have never

3:00:55 > 3:00:58understood the government's position of taking the single market of the

3:00:58 > 3:01:04customs union off the table. They immediately took those two things

3:01:04 > 3:01:07off the table which meant the negotiating position at the very

3:01:07 > 3:01:09start was diminished, and diminished for all the reasons that my

3:01:09 > 3:01:15honourable friend has just mentioned. I am happy to give way.I

3:01:15 > 3:01:18wonder whether he is away, he probably isn't because I haven't

3:01:18 > 3:01:26told him yet, that a couple of weeks ago I asked the Secretary of State

3:01:26 > 3:01:32for Brexit whether the Canadian deal free trade agreement would be a good

3:01:32 > 3:01:37deal for Britain, and he said no, because it wouldn't be as good a

3:01:37 > 3:01:43deal as the customs union. They would leave us worse off. I cannot

3:01:43 > 3:01:47see how one could possibly therefore argue that one should automatically

3:01:47 > 3:01:55discount staying in the customs union.That is indeed the case. The

3:01:55 > 3:02:00deal that the EU has been doing with Canada has been held as a blueprint

3:02:00 > 3:02:02for what world trade agreement should look like in the future and

3:02:02 > 3:02:06indeed we look like we are about to walk away from it because we once

3:02:06 > 3:02:09the better. If there was something better I am sure Canada and the EU

3:02:09 > 3:02:13would have negotiated that. I was aware of the question he was going

3:02:13 > 3:02:17to ask because I was sitting behind when he prays that question to the

3:02:17 > 3:02:21Secretary of State during Brexit questions. I thank him for that

3:02:21 > 3:02:25intervention. Can I just say the three reasons why I brought these

3:02:25 > 3:02:28amendments. The first one chimes very much with my honourable friend,

3:02:28 > 3:02:34the member for Bootle, who moved the opposition to the ways and means

3:02:34 > 3:02:38resolution from the front end. That is about Parliament having a say.

3:02:38 > 3:02:43Now taking back control became the strapline of the Leave campaign

3:02:43 > 3:02:47during the EU referendum, but if taking back control is truly what we

3:02:47 > 3:02:50wish to do, and I think that is what the public wish us to do as well,

3:02:50 > 3:02:53then taking back control should surely mean taking back control for

3:02:53 > 3:02:58this Parliament. Whether it be the EU withdrawal Bill going through the

3:02:58 > 3:03:02house at the moment, all the ways and means resolutions, or indeed we

3:03:02 > 3:03:05will see it in the customs bill no doubt when it is published, that

3:03:05 > 3:03:08ministers will hold this power to do anything they want, carte blanche,

3:03:08 > 3:03:15with trade, tariffs, immigration, with removing ourselves from the

3:03:15 > 3:03:20EEA, the customs union, without any recourse at all to this house. And

3:03:20 > 3:03:24what we have seen over the last six weeks or so with the government

3:03:24 > 3:03:27championing a meaningful vote, whatever a meaningful vote will

3:03:27 > 3:03:30mean, I think it will either be meaningful or is unlikely to even be

3:03:30 > 3:03:34a vote. We have seen the government from one side to the next, 1-dayers

3:03:34 > 3:03:40never the same as the next, in terms of what that actually means. Indeed

3:03:40 > 3:03:46they have given three clarifications on Monday just a couple of weeks ago

3:03:46 > 3:03:48with the Secretary of State for Exiting the European Union and the

3:03:48 > 3:03:51Prime Minister saying contradictory things, and then the spokespersons

3:03:51 > 3:03:56having to say what they meant, and they were both incorrect when they

3:03:56 > 3:04:06were correcting it. We need not platitudes. In the other place, we

3:04:06 > 3:04:09had two correcting statements from Lord Callaghan about what is it

3:04:09 > 3:04:12about Article 50 on the other place just if you weeks ago. We need to

3:04:12 > 3:04:15have some answers to these questions, which is why we on the

3:04:15 > 3:04:18side of house are very doubtful of the fact we can trust the

3:04:18 > 3:04:21government. We will take the power, we may not use it, we may use it, we

3:04:21 > 3:04:25need to use it, we need to have it in case we want to use it but trust

3:04:25 > 3:04:28us of thing will be fine. Unfortunately you have to earn that

3:04:28 > 3:04:32trust and the opposition in this Parliament has shown quite clearly

3:04:32 > 3:04:36that we can't trust this government to do things properly on our behalf

3:04:36 > 3:04:45because they are proved not to be to do so.

3:04:45 > 3:04:48Giving Parliament said we want to take back control, and now to my

3:04:48 > 3:04:54second point, no one in this House will have ever voted on leaving the

3:04:54 > 3:04:59customs union or the singles market, what the people of this country

3:04:59 > 3:05:03voted for was to leave the European Union, and when you start working

3:05:03 > 3:05:07through the process and see how complex it is, you see how difficult

3:05:07 > 3:05:12it is for businesses and the challenges and barriers, it is quite

3:05:12 > 3:05:16clear that nothing can be as good as what we have got at the moment.

3:05:16 > 3:05:20There will be losers and no one of voted to be poor. That is why

3:05:20 > 3:05:26bringing this motion without excluding tariffs to the European

3:05:26 > 3:05:30Union, because no one has yet voted for us to leave the customs union

3:05:30 > 3:05:34which is vitally important to this country, not just businesses here,

3:05:34 > 3:05:43but also the island of Ireland, as well. The third thing, and the main

3:05:43 > 3:05:48thing, why this motion should be defeated or at least amended, it is

3:05:48 > 3:05:51clear the government are preparing for no deal, we know they are

3:05:51 > 3:05:59preparing for that because it has been said already that the Brexit

3:05:59 > 3:06:02minister... Former minister was making a speech, saying the

3:06:02 > 3:06:06government should prepare for no deal, and it seems that the talks

3:06:06 > 3:06:09are stalling and the clock is ticking and listings to be no

3:06:09 > 3:06:14further forward. The Brexit secretary and the Foreign Secretary

3:06:14 > 3:06:18have an attitude that we have wrapped ourselves in the Union Jack

3:06:18 > 3:06:21and we will ride the raves like Rule Britannia and everyone will listen

3:06:21 > 3:06:29to us. -- ride the waves. That is the 19th-century British arrogance

3:06:29 > 3:06:32which has created many problems around the world, but we should be

3:06:32 > 3:06:35looking at the fact that everything the government is putting through

3:06:35 > 3:06:39this house at the moment is on the basis of a preparation for no deal

3:06:39 > 3:06:44which would be utterly disastrous for this country. Let me tell you

3:06:44 > 3:06:54why it would be disastrous, the economic impact of the customs

3:06:54 > 3:06:58union, we have heard many people talking about the economic impact,

3:06:58 > 3:07:02our annual goods trade with other countries within the customs union

3:07:02 > 3:07:10is 466 pounds, -- 460 £6 billion, but leaving it would be £25 billion

3:07:10 > 3:07:15every year since 2030. If the opposition was bringing a proposal

3:07:15 > 3:07:20to this house that the government had to consider, that cost £500

3:07:20 > 3:07:24billion and £25 million every day, he would bankrupt the sea would be

3:07:24 > 3:07:30coming out of the minister's mouth every single minute -- bankruptcy.

3:07:30 > 3:07:33Because it would be irresponsible, but that is what is being proposed

3:07:33 > 3:07:41here. The cost of new tariffs alone could be £4.5 billion a year on UK

3:07:41 > 3:07:46exports, according to detailed research, analysis by HMRC suggests

3:07:46 > 3:07:53new customs checks could increase the cost of imported goods. We have

3:07:53 > 3:08:00already had reports that they will be 17 mile tailbacks at ports across

3:08:00 > 3:08:05the UK and I wonder if the minister can remember when we had the strike

3:08:05 > 3:08:10from French customs and how long those customs queues became, very

3:08:10 > 3:08:15quickly indeed. The impact on those local communities alone was

3:08:15 > 3:08:19devastating, let alone the perishable goods sitting in trucks,

3:08:19 > 3:08:24and I will finish this point... It is OK to suggest there will be so

3:08:24 > 3:08:28many customers Borders checks, pushing things through as quickly as

3:08:28 > 3:08:31possible, but the way he resolved this position is to stay in the

3:08:31 > 3:08:40customs union. -- the way you resolve.The humble bottle of fabric

3:08:40 > 3:08:49conditioner passes four countries, imagine how many times the

3:08:49 > 3:08:52components of a Rolls-Royce will cross a border, thousands of times,

3:08:52 > 3:08:58so how can we afford to even think about leaving the customs union?I'm

3:08:58 > 3:09:03grateful that you make that point, but if I was the minister, I would

3:09:03 > 3:09:08say, it will be OK, we want something as close to the customs

3:09:08 > 3:09:13union is possible, it will be frictionless, it will only take

3:09:13 > 3:09:18seconds, without spelling out how it will work. Without saying how it

3:09:18 > 3:09:23will operate. We are taking this on trust, but many businesses around

3:09:23 > 3:09:25the country needs certainty and they are making decisions about their

3:09:25 > 3:09:34years ahead.Thank you for giving way. Simon Hemmings, one of the

3:09:34 > 3:09:40chief negotiators for Rolls-Royce, he told the FT, if we are not in the

3:09:40 > 3:09:43customs union, there will be job losses. It could not be clearer than

3:09:43 > 3:09:48that.I'm grateful for that intervention, because I said no one

3:09:48 > 3:09:52voted in the referendum to be poorer. The analysis shows that

3:09:52 > 3:09:59already. I would be delighted if the minister can tell me any analysis

3:09:59 > 3:10:03that has been done internally and externally, from any government

3:10:03 > 3:10:08department, from any country, from any think tank, from any

3:10:08 > 3:10:13organisation, from any individual business, and I know he is

3:10:13 > 3:10:17listening, just pretending to ignore me. Tell me any organisation that

3:10:17 > 3:10:20has set this process which the government is offering will make the

3:10:20 > 3:10:33country better off. Absolutely none. The silence is deafening. The

3:10:33 > 3:10:37minister refuses to tell us any organisation, just one, which it

3:10:37 > 3:10:41says we will even be remotely and in this process of leaving the European

3:10:41 > 3:10:45Union, the answer is clearly none. That is why this government is on

3:10:45 > 3:10:49the wrong track and is gambling everything, the family silver, on a

3:10:49 > 3:10:54no deal. Let me continue regarding the customs union and the impact

3:10:54 > 3:11:05this will have. My friend mentioned automotives, the Society of

3:11:05 > 3:11:12automotive manufacturers and traders, the people we trust when

3:11:12 > 3:11:20they send budgets, I always read this organisation because they are

3:11:20 > 3:11:26the knowledge in automotive manufacturing, they have said they

3:11:26 > 3:11:34will be an average 4.5% on car parts. That will push the cost of an

3:11:34 > 3:11:39average car by £1500, we have already had figures where they

3:11:39 > 3:11:44showed you, and factoring and sales is dropping dramatically and I think

3:11:44 > 3:11:49if people were looking whether to buy a new car for additional £1500,

3:11:49 > 3:11:55they might not do so. I appreciate the minister does not believe that,

3:11:55 > 3:12:03but I'm more likely to believe the figures from the organisation rather

3:12:03 > 3:12:14than the minister. I'm happy to give way.He is happy with the situation

3:12:14 > 3:12:20by which for all time we are locked in a situation where we can never be

3:12:20 > 3:12:25allowed to make a free-trade deal with a country or a block or anybody

3:12:25 > 3:12:30outside the EU, we are locked into a body with a declining share of trade

3:12:30 > 3:12:33and we are locking ourselves out of trade with a growing market in Asia

3:12:33 > 3:12:39and America, he is happy with that? I'm happy with the intervention, it

3:12:39 > 3:12:43allows me to say three things, the reason that the Scottish whiskey

3:12:43 > 3:12:46industry is doing so well is partly because of EU free-trade agreements

3:12:46 > 3:12:52with countries like South Korea, and we are already in 57 free-trade

3:12:52 > 3:12:57agreements, and the third thing, his government have failed to even start

3:12:57 > 3:13:01to negotiate one free-trade agreement, the bluff and bluster

3:13:01 > 3:13:05about being at the front of the queue, seamlessly going into these

3:13:05 > 3:13:09wonderful free-trade agreements, all over the world, that would be great.

3:13:09 > 3:13:16Is intervention contradicts his first intervention, if you vote for

3:13:16 > 3:13:22my amendments, we end up in WT rules and not having any tariffs with the

3:13:22 > 3:13:27European Union, we will have tariffs with no month, we can ride the waves

3:13:27 > 3:13:30and set up more than 57 free-trade agreements with every country who is

3:13:30 > 3:13:36banging at our door. I don't think he's listing to these Foreign

3:13:36 > 3:13:40Secretary and the trade secretary when he doesn't hear that this is

3:13:40 > 3:13:44becoming much more difficult -- listening to. These countries were

3:13:44 > 3:13:54just a bit, low hanging fruit from the magic money tree.Thank you

3:13:54 > 3:14:01forgiving way. Free-trade is to be welcomed but in certain like the

3:14:01 > 3:14:04ceramic industry, what we need is protections against illegal dumping

3:14:04 > 3:14:09of tiles and white ware which affects our industry and puts jobs

3:14:09 > 3:14:13at risk, so while the opposition might talk about unilateral

3:14:13 > 3:14:19free-trade and making the markets open, but that can harm jobs and

3:14:19 > 3:14:24employment and puts my constituents in a poor position.Absolutely,

3:14:24 > 3:14:27illegal dumping something the house should come back to an debate at

3:14:27 > 3:14:31length because this is a key issue around what will happen when we

3:14:31 > 3:14:37leave the EU because we don't have that block to defend us. Regarding

3:14:37 > 3:14:42the first part of the intervention, I have a great idea of how we can

3:14:42 > 3:14:45advance free-trade in this country, we could have a customs union and

3:14:45 > 3:14:49the single market and that would advance free-trade or we could come

3:14:49 > 3:14:53out of it and end up in a situation where we have 57 free-trade

3:14:53 > 3:15:01agreements. I have a list of sectors I wish to go through, but I won't in

3:15:01 > 3:15:05the interests of time. Let me briefly mention a few of the big

3:15:05 > 3:15:10ones who have raised concerns for top pharmaceuticals, one of the key

3:15:10 > 3:15:15areas which drives corporation tax into the public purse, the

3:15:15 > 3:15:17Association of British pharmaceutical industries has called

3:15:17 > 3:15:22for free trade with the EU, prevent those of a full member of the

3:15:22 > 3:15:27customs union, so again, I pose the question to the minister who opened

3:15:27 > 3:15:33this debate, how is he going to make sure that the pharmaceutical

3:15:33 > 3:15:35industry which I would rather believe that the government

3:15:35 > 3:15:39minister, which has brought so much economically to this country, how am

3:15:39 > 3:15:46I supposed to believe the minister of the pharmaceutical industry, they

3:15:46 > 3:15:49say they want free-trade agreement to those of a full member of the

3:15:49 > 3:15:54customs union, but the government have ruled that out. So what is the

3:15:54 > 3:15:56minister going to say to the pharmaceutical industry who say they

3:15:56 > 3:16:02need that to be able to trade as they are at the moment?Would you

3:16:02 > 3:16:06like to speculate on what contribution the departure today of

3:16:06 > 3:16:08the European Medicines Agency to Amsterdam has made to our

3:16:08 > 3:16:16pharmaceutical industry?Well, it is jobs. 900 jobs, and maybe even more,

3:16:16 > 3:16:21when you think about the knock-on effect. The government has given up

3:16:21 > 3:16:25900 jobs, that is the tip of the iceberg, if the pharmaceutical

3:16:25 > 3:16:28industry can't get equivalence to the current customs union, and many

3:16:28 > 3:16:37other jobs will go? Before everyone says that I'm just a remoaner

3:16:37 > 3:16:43remoaner, well, if I'm just defending the jobs of those are my

3:16:43 > 3:16:48constituency, I'm happy. Give me a badger I will say I'm proud, because

3:16:48 > 3:16:58that means jobs -- give me a badge and that will say I'm proud to be a

3:16:58 > 3:17:03remoaner.He keeps talking about the views of experts, but we know the

3:17:03 > 3:17:06other side are not keen on the views of experts, maybe they will listen

3:17:06 > 3:17:14this time?I can answer the intervention in one word, no,

3:17:14 > 3:17:16because they clearly aren't going to listen to the experts on these

3:17:16 > 3:17:22issues. What they have done in this country, they have given the seed of

3:17:22 > 3:17:26doubt that none of us should listen to experts and we are now in a

3:17:26 > 3:17:29position whereby the country will be much diminished as a result. Two

3:17:29 > 3:17:35more sectors, the chemicals sector, one of the key drivers of the UK

3:17:35 > 3:17:41economy, we have a great chemicals sector across the European Union,

3:17:41 > 3:17:45they have said the best way to guarantee no adverse disruption to

3:17:45 > 3:17:49trade and business and to guarantee only one adjustment is to seek to

3:17:49 > 3:17:52retain our existing membership of the single market and indeed the

3:17:52 > 3:17:58customs union. The automotive sector and the pharmaceutical sector and

3:17:58 > 3:18:12now became a school>> STUDIO: -- nowthe chemical sector. And now the

3:18:12 > 3:18:17shipping sector, the very sector that takes the goods from these

3:18:17 > 3:18:20islands to the continent, the UK shipping sector have warned that the

3:18:20 > 3:18:27UK is facing an absolute catastrophe if it does not sort out a

3:18:27 > 3:18:33frictionless and seamless border at Dover and other ports. We know the

3:18:33 > 3:18:36government keeps talking about a frictionless and seamless border but

3:18:36 > 3:18:42can't say what that actually means. Can I suggest that the best way to

3:18:42 > 3:18:45maintain or enhance the border and to make it frictionless, to make it

3:18:45 > 3:18:52seamless and operate as a single market would be to retain our status

3:18:52 > 3:18:56in the customs union because if we were starting from scratch with a

3:18:56 > 3:18:59blank sheet of paper to determine the best way for an island nation to

3:18:59 > 3:19:04trade with other nations it would be to have a customs union with those

3:19:04 > 3:19:07nations where you did not have to use the word frictionless because

3:19:07 > 3:19:11there would be no friction at all. And we would be completely seamless,

3:19:11 > 3:19:16and the best way to highlight how seamless and frictionless a single

3:19:16 > 3:19:19market can operate is to look at the markets between Scotland, Wales and

3:19:19 > 3:19:26England. Completely seamless across the border, completely free market,

3:19:26 > 3:19:32completely single market, completely customs free, and I know the

3:19:32 > 3:19:36Secretary of State for the environment has joined us and I'm

3:19:36 > 3:19:41delighted, because he argued along with me and I said this to our

3:19:41 > 3:19:47friend from Aberdeen South, one of the keen opposition arguments to an

3:19:47 > 3:19:52independent Scotland was not to have a border at Berwick, now he is

3:19:52 > 3:19:55arguing the opposite with Northern Ireland and the island of Ireland

3:19:55 > 3:19:59and that is a complete contradiction and he can't tell us how that is

3:19:59 > 3:20:05going to be resolved. Completely and utterly contradictory to have made

3:20:05 > 3:20:08those items in the Scottish independence referendum but making

3:20:08 > 3:20:10contrary arguments now.

3:20:19 > 3:20:22Customs union, and outside the customs union it is likely the UK we

3:20:22 > 3:20:26need to renegotiate many of not all of those agreements with people who

3:20:26 > 3:20:30would now become third parties. That is not as easy as just rolling over

3:20:30 > 3:20:34these agreements as the government seem to want to do. I am conscious

3:20:34 > 3:20:39of time Mr Deputy Speaker Sela me just move on a little bit. I want to

3:20:39 > 3:20:45talk about Northern Ireland and the Republic of Ireland. I know the

3:20:45 > 3:20:48opposition do not like hearing these arguments because they don't have

3:20:48 > 3:20:59any answers to them, but I feel it's important to highlight it. We have

3:20:59 > 3:21:01until 10pm, if the honourable gentleman wants to intervene and

3:21:01 > 3:21:07waste time as well, he is more than welcome to do that. We have already

3:21:07 > 3:21:10talked about the massive queues at our ports, airports and rail

3:21:10 > 3:21:14terminals but I want to talk a bit about Northern and the result of

3:21:14 > 3:21:17Ireland. The Foreign Affairs Committee visited Dublin and the

3:21:17 > 3:21:21board on Thursday and Friday of last week to look at the consequences of

3:21:21 > 3:21:26us leaving the European Union. And again I say to the minister if he

3:21:26 > 3:21:29wants to come to the dispatch box and Tommy any organisation in

3:21:29 > 3:21:34Northern Ireland or the Republic of Ireland that thinks Brexit will be

3:21:34 > 3:21:38good for the Isles of Ireland then please do so because I did not hear

3:21:38 > 3:21:42any. The only two people I heard supporting our withdrawal from the

3:21:42 > 3:21:47customs union and the single market in the context of the aisles of

3:21:47 > 3:21:51Ireland were indeed the two Brexiteers on the foreign affairs

3:21:51 > 3:21:54select committee. Nobody made those arguments. Some of the words used

3:21:54 > 3:21:59were catastrophic, irreconcilable, unsolvable. I just cannot understand

3:21:59 > 3:22:06how the minister can bring these kinds of arguments without having

3:22:06 > 3:22:11the basic answers to these questions, without using meaningless

3:22:11 > 3:22:15phrases like frictionless and seamless. I have a real concern

3:22:15 > 3:22:19through the Belfast agreement, the Good Friday Agreement, underpinned

3:22:19 > 3:22:25by the European Union by a seamless border, underpinned by a single

3:22:25 > 3:22:33market in the island of Ireland. It is almost impossible for the

3:22:33 > 3:22:36government to reconcile them wanting no borders, frictionless and

3:22:36 > 3:22:39seamless trade with the route they are going down with a no deal

3:22:39 > 3:22:45Brexit. Another suggestion, the minister might recognise it, the way

3:22:45 > 3:22:48to have a seamless and frictionless border between Northern Ireland and

3:22:48 > 3:22:54the Republic of Ireland is indeed the customs union, may I suggest,

3:22:54 > 3:22:58because that would mean trade and goods could go across the board are

3:22:58 > 3:23:03unfettered, seamless, and I may even push it to frictionless, that is

3:23:03 > 3:23:08what the government had been saying all along. We travelled from the van

3:23:08 > 3:23:11county council who hosted us on Thursday evening to drive onto the

3:23:11 > 3:23:16motorway back to Dublin. It is about four and a half miles, we were in

3:23:16 > 3:23:19the minibus, we crossed the border seven times. Seven times, just ago

3:23:19 > 3:23:25that very short distance. This is irreconcilable. Many people in

3:23:25 > 3:23:28Northern Ireland and the Republic of Ireland who spoke to the Foreign

3:23:28 > 3:23:31Affairs Committee last week and I am sure the Minister will be put

3:23:31 > 3:23:33pleased to the conclusions of that when it is actually published by the

3:23:33 > 3:23:40amity. It is intellectually incoherent argue that you can have

3:23:40 > 3:23:45no border was requiring a border. Can't have frictionless and seamless

3:23:45 > 3:23:49trade well having to check goods. You can't have a border at the sea

3:23:49 > 3:23:53level when you are trying to make sure that the Good Friday Agreement

3:23:53 > 3:24:00is maintained. Former president spoke to us in great depth about the

3:24:00 > 3:24:03passion for this Good Friday Agreement. I said to the Minister

3:24:03 > 3:24:06and the government in all seriousness, they ruin this

3:24:06 > 3:24:10agreement at their peril. The Good Friday Agreement is something of a

3:24:10 > 3:24:13British are being credible proud of, and the way in which the government

3:24:13 > 3:24:16are going about the Brexit negotiations, the way they are

3:24:16 > 3:24:23treating the border, the way they are fooling the public you can have

3:24:23 > 3:24:30everything and not have everything is indeed wrong. Michel Barnier has

3:24:30 > 3:24:34said to the government in particular to this issue of Ireland that they

3:24:34 > 3:24:37cannot have their cake and eat it. So something is good to have to

3:24:37 > 3:24:41give, and I say to the Minister that is why I put these amendments

3:24:41 > 3:24:43because he has to think very seriously about that particularly

3:24:43 > 3:24:50physical border. Mr Deputy Speaker, I will conclude just by saying a

3:24:50 > 3:24:54little bit about the Labour Party's position. I think the Labour Party's

3:24:54 > 3:25:01decision is indeed right on this issue, that they want to stay if

3:25:01 > 3:25:06possible in the customs union. I agree with the moments from my

3:25:06 > 3:25:11honourable friend from Bootle who brought forward the amendments about

3:25:11 > 3:25:18scrutiny. The government are saying to take back control but indeed are

3:25:18 > 3:25:22not giving control to this particular Parliament, in all of the

3:25:22 > 3:25:30issues around Ireland, trade, tariffs, around jobs, around Kayal

3:25:30 > 3:25:36backs at customs can all be resolved by the United Kingdom at least

3:25:36 > 3:25:38living on the table, regardless of whether not you agree with them or

3:25:38 > 3:25:43not agree with them, living on the table the possibility of being

3:25:43 > 3:25:49members of the single market and the customs union. When we get to the

3:25:49 > 3:25:53end of this process, meaningful vote or not in this place, the Minister

3:25:53 > 3:25:57and his government will know that when the jobs start leaving this

3:25:57 > 3:26:01country, when border start going up, when customs become more difficult,

3:26:01 > 3:26:06when trade becomes much more difficult, when public services

3:26:06 > 3:26:10become a chore difficult to fund, that his government have let the

3:26:10 > 3:26:13people down by not telling them the truth about the consequences of

3:26:13 > 3:26:19coming out of this and go market and the customs union. That is why I

3:26:19 > 3:26:30make these amendments.It is a great pleasure, to follow the member for

3:26:30 > 3:26:33Edinburgh South who spoke at considerable length of his

3:26:33 > 3:26:38conviction that the customs union is the way forward. And he has all were

3:26:38 > 3:26:43spoken with great clarity and certainty. I would say he is more

3:26:43 > 3:26:47compelling in his usual manner as to go rather than the EU or that we saw

3:26:47 > 3:26:54the light. I would also say the difficulty of assuming that business

3:26:54 > 3:26:58is monolithic and always picks with one voice is that it doesn't. There

3:26:58 > 3:27:01are businesses in my constituency that I deal with as a trade envoy

3:27:01 > 3:27:07who are concerned about the future, and there are others who are relaxed

3:27:07 > 3:27:10and both of those views will depend ultimately on what sort of

3:27:10 > 3:27:18arrangement we reach on customs and on what terms. That brings us to the

3:27:18 > 3:27:21preparatory bill this evening. As the Minister has explained, this is

3:27:21 > 3:27:25fundamentally nothing other than necessary preparation for when we

3:27:25 > 3:27:32leave the EU. It is a framework, not a position on a preferred type of

3:27:32 > 3:27:35future customs relationship. It allows for either of the

3:27:35 > 3:27:39government's options, one of which is a streamlined system as far as I

3:27:39 > 3:27:44can see essentially a tentacle to the current one, and the second one

3:27:44 > 3:27:47is a new customs partnership which I am sure we will hear more about when

3:27:47 > 3:27:52the bill is published. This preparatory work is even more

3:27:52 > 3:27:57important in the sad event of future arrangements not being agreed with

3:27:57 > 3:28:05the EU. Today, the Minister has confirmed that actually HMRC

3:28:05 > 3:28:09arrangements at our roll on roll off ports will be in place in January

3:28:09 > 3:28:142019, ready to deal with the worst case scenarios. I believe there is

3:28:14 > 3:28:17an important political point behind this, which members of this house

3:28:17 > 3:28:22who would, as the member for Edinburgh South said, much prefer to

3:28:22 > 3:28:28stay in the customs union, need to consider very carefully. There are

3:28:28 > 3:28:32some who believe that leaving the EU without any future deal or

3:28:32 > 3:28:34implementation period would be a walk in the park and there are

3:28:34 > 3:28:36others who believe it would simply be impossible to operate our

3:28:36 > 3:28:41thoughts and indeed perhaps much of our trade and therefore a disaster

3:28:41 > 3:28:48to leave the customs union at all. But, for many of us, whose view has

3:28:48 > 3:28:53always been that both the UK and the EU would hugely benefit from a

3:28:53 > 3:28:56strong customs partnership for the future, and what Michel Barnier

3:28:56 > 3:29:01calls a new partnership in general, then this preparation bill is

3:29:01 > 3:29:10essential to that. It is absolutely vital that the EU does not overplay

3:29:10 > 3:29:15its strong hand at the still of the stage of negotiations, for if the EU

3:29:15 > 3:29:18decides that negotiations on citizens rights, Ireland and Finance

3:29:18 > 3:29:23had made insufficient progress to move on to debating and

3:29:23 > 3:29:27implementation period and future trade and other partnerships, then

3:29:27 > 3:29:33there is a real danger, I believe, that the momentum moves and those

3:29:33 > 3:29:39who believe not only is no deal possible, but likely or even

3:29:39 > 3:29:46desirable, that we need to prepare for that situation above all else.

3:29:46 > 3:29:51Therefore for those of us who want to see the negotiations succeed, who

3:29:51 > 3:29:56want to see a new partnership, it is incredibly important that our

3:29:56 > 3:30:02partners in the EU encourage us to build momentum for this by moving

3:30:02 > 3:30:05the detailed talks on the future trade and customs arrangements as

3:30:05 > 3:30:13soon as. For now, this is simply an enabling bill of changes that allows

3:30:13 > 3:30:18future UK tariffs, VAT levels, goods classification and so on, and as the

3:30:18 > 3:30:23opposition spokesman himself said, it is both practical and necessary.

3:30:23 > 3:30:27The amendments in my view close off the options and should sensibly be

3:30:27 > 3:30:34avoided.Thank you Mr Deputy Speaker, it is a pleasure to follow

3:30:34 > 3:30:40a fellow Remainer, and I hope that Remainers on the other side might be

3:30:40 > 3:30:46a bit more outspoken about the concerns... I am happy to give way.

3:30:46 > 3:30:55Just to clarify, he is following a pragmatist.OK, well, if I am indeed

3:30:55 > 3:30:58following a pragmatist, then I hope the pragmatist would listen to what

3:30:58 > 3:31:03is being said by many economic sectors at the moment, would listen

3:31:03 > 3:31:09and perhaps read carefully the 58 sectoral reports, once they are

3:31:09 > 3:31:13published, and come to a very pragmatic conclusion that pursuing

3:31:13 > 3:31:16the agenda the government has of taking us over the cliff is

3:31:16 > 3:31:19something that perhaps he is a pragmatist would want to start being

3:31:19 > 3:31:24more outspoken about in the debates we are having on this issue. We have

3:31:24 > 3:31:28heard during the debate this afternoon references to the fact

3:31:28 > 3:31:32that the UK needs to leave the European Union to be able to trade.

3:31:32 > 3:31:37Clearly that is not true. There are many European countries that are

3:31:37 > 3:31:42just much more successful at trading with other countries than we are,

3:31:42 > 3:31:45Germany, France, Italy, and they do that within the European Union, so

3:31:45 > 3:31:50there is no reason at all why we could not do so more effectively

3:31:50 > 3:31:57than we are currently. And, of course, if there is no point or no

3:31:57 > 3:32:01ability to trade whilst part of the European Union, I do wonder why

3:32:01 > 3:32:03previous Prime Minister 's David Cameron in particular, Spencer much

3:32:03 > 3:32:08time and effort sending trade delegations to different countries

3:32:08 > 3:32:12around the world to drum up trade. Was that a completely pointless

3:32:12 > 3:32:17exercise? Was that just about having ten course banquets in Beijing? Or

3:32:17 > 3:32:21was it because, actually, we can do a lot within the European Union to

3:32:21 > 3:32:26boost trade? I think it was the latter, rather than a desire to have

3:32:26 > 3:32:30the dinners, courtesy of foreign governments. So of course the United

3:32:30 > 3:32:33Kingdom is in a position now to trade perhaps more effectively than

3:32:33 > 3:32:36it does with other countries whilst we are members of the European

3:32:36 > 3:32:45Union. Now what I wanted to do, and it is nice, say, Mr deputy Speaker,

3:32:45 > 3:32:48as a Liberal Democrat to be a to make a speech that is longer than

3:32:48 > 3:32:53three minutes, so I may take full advantage of this in the couple of

3:32:53 > 3:32:57hours perhaps that remains for me to make a contribution this evening,

3:32:57 > 3:33:05before handing back to ministers for their response. I to focus first of

3:33:05 > 3:33:08all on the issue of Ireland and Northern Ireland. Now frankly

3:33:08 > 3:33:13members on this side of the house have had enough of listening to the

3:33:13 > 3:33:18platitudes ministers are giving about how they are going to sort out

3:33:18 > 3:33:21the problem that is the border between Ireland and Northern

3:33:21 > 3:33:24Ireland. We don't want to hear about frictionless any more, we don't want

3:33:24 > 3:33:29to hear about blue skies solutions that do not yet exist. What we want

3:33:29 > 3:33:34to hear from ministers is the solution to this problem. Because,

3:33:34 > 3:33:38if the Irish Prime Minister on Friday asked for a written guarantee

3:33:38 > 3:33:41from the UK Government that there would be no border controls at the

3:33:41 > 3:33:47border, it is because he is worried about it, and he has heard nothing

3:33:47 > 3:33:52from our government that explains how we are going to be able to leave

3:33:52 > 3:33:58the customs union, and yet have no border and no border controls tween

3:33:58 > 3:34:05Ireland and Northern Ireland. I am happy to give way.I am grateful.

3:34:05 > 3:34:09Would he also agree that if the government were to have a change of

3:34:09 > 3:34:13heart and agreed to asked to remain in the single market, that takes up

3:34:13 > 3:34:21to the three blocks. The rights of EU citizens and UK citizens are

3:34:21 > 3:34:26solved immediately. We are then left only with the financial settlement,

3:34:26 > 3:34:30the only stumbling block to the about trade deals and so on.Indeed,

3:34:30 > 3:34:34I agree with him entirely, as has been the case in other speeches, I

3:34:34 > 3:34:38am perplexed as to why from the outset the government ruled out a

3:34:38 > 3:34:44number of very obvious solutions to the dilemmas they face.

3:34:44 > 3:34:51I'm sure number of members will have visited Northern Ireland, I did

3:34:51 > 3:34:55myself, in South Armagh, which was very badly affected during the

3:34:55 > 3:34:59troubles, and they had a garrison of 3000 soldiers in that town. They

3:34:59 > 3:35:06were responsible for the safety of roughly 24,000 people and at the

3:35:06 > 3:35:11point the garrison was there they reckon that was the most militarised

3:35:11 > 3:35:16place in western Europe, and what are they worried about? Returning to

3:35:16 > 3:35:24the troubles they experienced in the 70s and 80s. The fact people were

3:35:24 > 3:35:30placing devices under the roads in the approach roads to the border,

3:35:30 > 3:35:38and they are worried that there will be no means to control safely the

3:35:38 > 3:35:43275 border points that exist between Ireland and Northern Ireland. If the

3:35:43 > 3:35:52proposal is to conduct ad hoc checks at separate border points or

3:35:52 > 3:35:54proposals to conduct checks at a distance from the border, if that

3:35:54 > 3:35:59this part of the solution, they are still worried that the British

3:35:59 > 3:36:02customs officer and the British police officer and the British

3:36:02 > 3:36:08soldier who is there, then becomes a target, and all we have heard from a

3:36:08 > 3:36:13succession of ministers is very dismissive comments, including from

3:36:13 > 3:36:16the Secretary of State for Exiting the European Union, who dismisses

3:36:16 > 3:36:20any concerns about the difficulties there could be at this border. We

3:36:20 > 3:36:24need reassurances from ministers, not the dismissive comments they are

3:36:24 > 3:36:31making. I'm happy to give way.The government policy at the moment is

3:36:31 > 3:36:38that it won't have a hard border and it will leave the customs union

3:36:38 > 3:36:42which could be very good for the community you visited, smuggling was

3:36:42 > 3:36:47profitable for a large number of inhabitants both sides of the Irish

3:36:47 > 3:36:52border, and it seems as long as the government maintains this post, then

3:36:52 > 3:36:56smuggling will come back in a big way to the country once more.

3:36:56 > 3:37:01Indeed. Maybe a growth industry, and there were a number of large homes

3:37:01 > 3:37:06pointed out to me, which it was suggested by not have been acquired

3:37:06 > 3:37:11through entirely legitimate means, and so that means of doing business

3:37:11 > 3:37:15might be one the government is opening up, and we know historically

3:37:15 > 3:37:21that with things like CHP payments and cattle being transferred from

3:37:21 > 3:37:27one side of the border to the other, or fuel, that that has been a

3:37:27 > 3:37:31long-standing issue and has the potential to become an even greater

3:37:31 > 3:37:34one courtesy of what the government are proposing. I'm happy to give

3:37:34 > 3:37:42way.If you follow the logic he is making, that there might not be a

3:37:42 > 3:37:46customs union and we will be outside it and therefore there will be a

3:37:46 > 3:37:51hard border, and the government's logic is that that is mitigated, by

3:37:51 > 3:37:56a frictionless border, the border will simply have to be around Great

3:37:56 > 3:38:00Britain, at the Scottish and Welsh ports, if Northern Ireland is

3:38:00 > 3:38:04treated separately that will create a constitutional problem.

3:38:04 > 3:38:08Absolutely, and that is why I believe this question of Ireland and

3:38:08 > 3:38:13Northern Ireland is the most challenging of the three. The EU

3:38:13 > 3:38:17citizens, the government should have resolved that 15 months ago in St

3:38:17 > 3:38:23the macro -- in terms of simply saying, you have the right to

3:38:23 > 3:38:29remain. The settlement, that is difficult, because some have said we

3:38:29 > 3:38:35won't give the EU a single penny, and in fact they owe us money, so

3:38:35 > 3:38:37they now have the difficult political position to adopt of

3:38:37 > 3:38:45saying, actually, they support, we don't how much, mainly £40 billion,

3:38:45 > 3:38:48there was an article in the Sunday Times which was flying a kite which

3:38:48 > 3:38:52referred to £53 billion, and that is something which could be resolved at

3:38:52 > 3:38:58some political pain, but the issue of Ireland and Northern Ireland, I

3:38:58 > 3:39:00have found no one who has put forward any solution to this which

3:39:00 > 3:39:07does not involve some sort of control ad hoc perhaps, maybe at the

3:39:07 > 3:39:14border, but some sort of control that will be required.He touched

3:39:14 > 3:39:19briefly on citizens rights, since both sides have said this is our

3:39:19 > 3:39:24absolute top priority, can he explain why the European Union turn

3:39:24 > 3:39:28down our proposal to treat citizens rights first and on their own so

3:39:28 > 3:39:31that that could have been agreed in perpetuity regardless of what

3:39:31 > 3:39:37happened to anything else.That may be an issue on which we agree, what

3:39:37 > 3:39:43I would like to see, if we are moving towards a no deal scenario

3:39:43 > 3:39:49there is a very strong overwhelming case to park the issue of EU

3:39:49 > 3:39:53citizens rights and UK citizens rights, resolve that because that is

3:39:53 > 3:40:01a question of humanity and giving some safety and security to the 3

3:40:01 > 3:40:08million EU citizens here and 1.2 million UK citizens in the EU. The

3:40:08 > 3:40:12question of the border between Ireland and Northern Ireland, 275

3:40:12 > 3:40:15crossings, and if there's going to be some sort of control, is that

3:40:15 > 3:40:20going to be at each and every one of those crossings? Presumably not. In

3:40:20 > 3:40:34a second. 3000-5000 people will have to be recruited, and a much greater

3:40:34 > 3:40:40number than that, I'm happy to give way.I spoke to someone and the

3:40:40 > 3:40:45border goes to their kitchen, and there was a practical difficulty for

3:40:45 > 3:40:50them.LAUGHTER Presumably they would have no

3:40:50 > 3:40:55difficulty smuggling their cake from one side of the border to the other.

3:40:55 > 3:41:01Clearly if you close down some of the 275 borders, those issues about

3:41:01 > 3:41:05a graveyard with the entrance on one side and people wanting to visit it

3:41:05 > 3:41:09from the other and children who have to go to a school that is on the

3:41:09 > 3:41:13other side of the border and people who have to work on the other side

3:41:13 > 3:41:16of the border, we have closed border crossings, which is what happened

3:41:16 > 3:41:22during the troubles, that is a major issue for island and Northern

3:41:22 > 3:41:25Ireland, and if I were to speak for the next couple of hours, this might

3:41:25 > 3:41:29give the minister is time to work out what the solution is because

3:41:29 > 3:41:33clearly there isn't one yet, but that would enable him to go away and

3:41:33 > 3:41:39find it.I'm delighted you are making the arguments about the Irish

3:41:39 > 3:41:42border, is not just the physical border, it is what that says, and

3:41:42 > 3:41:47they have not had borders in the island of Ireland since troubles and

3:41:47 > 3:41:52it is that symbolism which is something we should avoid at all

3:41:52 > 3:42:00costs.He is right. Clearly, there are substantial economic problems

3:42:00 > 3:42:07associated with the border but the fundamental problem is this one of

3:42:07 > 3:42:10if there is a British presence on that border, which isn't there

3:42:10 > 3:42:16currently, the message that sends out to those who want to cause

3:42:16 > 3:42:20trouble is maybe a step in the wrong direction in terms of a united

3:42:20 > 3:42:24Ireland and might give them the reason to start the troubles and

3:42:24 > 3:42:30that is the major risk. That is probably why the government and the

3:42:30 > 3:42:32European Union are saying that progress is being made because

3:42:32 > 3:42:36frankly no one wants to admit that this remains a problem without a

3:42:36 > 3:42:41solution because the potential for it to generate trouble in the

3:42:41 > 3:42:48future. The other issue, which I wanted to touch on briefly, the

3:42:48 > 3:42:53issue of the Port of Dover. Many members will have visited the Port

3:42:53 > 3:42:59of Dover, and I would recommend it, because the first thing to know

3:42:59 > 3:43:03about it, in fact it is not really a port, and the Port are quite clear

3:43:03 > 3:43:08in stating this, it is actually a breach. If you stand in the control

3:43:08 > 3:43:15tower and you watch the trucks, they flow virtually seamlessly,

3:43:15 > 3:43:25interesting word. The trucks slow down and they go through into

3:43:25 > 3:43:29channels and if they are lucky then they drive straight onto a ferry as

3:43:29 > 3:43:34the trucks are unloading from a lower deck coming into the UK. So

3:43:34 > 3:43:39there is nothing that stops the trucks getting on those ferries and

3:43:39 > 3:43:45of course a fact I learned, the trucks are not booked onto a

3:43:45 > 3:43:52specific ferry, they turn up, and that's the one they go on. The only

3:43:52 > 3:43:57checks that the UK are doing the trucks coming into the UK is for

3:43:57 > 3:44:00smuggling, and that is done on the basis of intelligence, not on the

3:44:00 > 3:44:06basis of checking one truck out of a hundred, it is done on the basis of

3:44:06 > 3:44:11intelligence, and that is why it flows smoothly. That is why... I'm

3:44:11 > 3:44:17happy to give way.Does he not agree with me that there is an often

3:44:17 > 3:44:21quoted figure that if each truck was just held back by two minutes we

3:44:21 > 3:44:27would have a 17 mile tailback? Is he pessimistic like me that two minutes

3:44:27 > 3:44:30seems a remarkable short period to stop each truck to simply ask where

3:44:30 > 3:44:38you are going.Absolutely. I have those concerns and it is worth

3:44:38 > 3:44:42knowing that when a couple of years ago the 17 mile tailback occurred it

3:44:42 > 3:44:51was as a result of two French border officers not turning up for their

3:44:51 > 3:44:56shift, two, and it created a 17 mile tailback. The 20 square kilometre

3:44:56 > 3:45:01lorry park which has now been kicked into the long grass but as a

3:45:01 > 3:45:06judicial review, that would accommodate 3500 lorries, and there

3:45:06 > 3:45:10are 10,000 lorries which will go through that port each day, and

3:45:10 > 3:45:15frankly a lorry park which will accommodate 3500 will not do very

3:45:15 > 3:45:18much if there is severe disruption at the port and that is why one of

3:45:18 > 3:45:23the options they are considering is creating lorry parks all over the

3:45:23 > 3:45:28country so that they could text the drivers and say, we have a bit of a

3:45:28 > 3:45:31problem, at Dover, don't bother coming, because the town will

3:45:31 > 3:45:37collapse if you do. Just stay in that lorry parking Leeds or in

3:45:37 > 3:45:44Edinburgh and we will tell you when it is safe to come down.All that he

3:45:44 > 3:45:50has said, we have heard and heard before, but no doubt he will have

3:45:50 > 3:45:53heard the Mayor of Calais and the head of the port in Calais saying

3:45:53 > 3:45:58how much of a catastrophe a no deal would be for them, as well. Does

3:45:58 > 3:46:03that not encourage him to suggest that the good sense will prevail and

3:46:03 > 3:46:06we can reach an agreement which suits both sides of the channel

3:46:06 > 3:46:11equally well?I would like good sense to prevail, but when the

3:46:11 > 3:46:15government seem to be planning for no deal there does not seem to be

3:46:15 > 3:46:21much good sense available. I do want to come onto the Cali issue. At

3:46:21 > 3:46:26Dover we have a bridge which runs between Dover and Calais, and the

3:46:26 > 3:46:30minister was very frank when I intervened on him early, he said

3:46:30 > 3:46:34that any level of disruption and any delay in the process would actually

3:46:34 > 3:46:38have a significant impact and that is true, and that is what he will

3:46:38 > 3:46:43have heard from the Port of Dover. Unfortunately, nothing the

3:46:43 > 3:46:47government have come forward with in terms of solutions is likely to

3:46:47 > 3:46:51provide the answer, why one briefly to touch on the issue of Calais,

3:46:51 > 3:46:57because everything we have said about the need for the UK to be

3:46:57 > 3:47:02prepared in terms of our custom systems, and in terms of what we are

3:47:02 > 3:47:05going to do at the border and what we will do with the approaches to

3:47:05 > 3:47:12the border and how we are going to get the staff that are going to be

3:47:12 > 3:47:15needed, 3005 5000 members of HMRC and the 1000 plus which are needed

3:47:15 > 3:47:19at the Home Office, and the same is true of Calais and the same is true

3:47:19 > 3:47:24of the ports in Belgium, the same is true of the ports in Holland where

3:47:24 > 3:47:29they don't do their side of the work, we could have worked out

3:47:29 > 3:47:33everything at our end but we still have a problem that when the ferry

3:47:33 > 3:47:39gets to Calais it has nowhere to discharge its trucks, and so unless

3:47:39 > 3:47:43they are as prepared as we are we could still be in a almighty jam,

3:47:43 > 3:47:53and if anyone... I used to work in the IT industry, if anyone thinks we

3:47:53 > 3:47:58can have an IT solution which can cope with a no deal scenario in

3:47:58 > 3:48:02March 2019, they really need to have their heads examined because that is

3:48:02 > 3:48:10an impossibility to achieve. Just to conclude, I'm not going to take

3:48:10 > 3:48:16advantage of the two hours or so that is available to me, you will be

3:48:16 > 3:48:19pleased it, but I would like to comment on what the government's

3:48:19 > 3:48:25apparent solutions to these customs problems are, we know the government

3:48:25 > 3:48:31are preparing a continuing sea of no deal, well, I have not heard anyone

3:48:31 > 3:48:34or seen anyone from the opposite benches nodding their head, say no

3:48:34 > 3:48:39deal is a fantastic thing and we really need to press for this, so

3:48:39 > 3:48:42this is the opportunity to intervene and say no deal will be fantastic of

3:48:42 > 3:48:47the UK. No one is doing that, so I have to assume nobody on the other

3:48:47 > 3:48:51side would like that even though the government are planning for it. The

3:48:51 > 3:48:57options we are left with, the highly streamlined customs arrangement, and

3:48:57 > 3:49:03reading between the lines, highly streamlined customs arrangement

3:49:03 > 3:49:06means a border between Ireland and Northern Ireland, I'm certain of

3:49:06 > 3:49:10that, it doesn't mean getting rid of it... It doesn't mean frictionless

3:49:10 > 3:49:14and a blue sky solution which is high-tech, and that gets away with

3:49:14 > 3:49:20the need to check the contents of trucks, and one of the government's

3:49:20 > 3:49:24solutions is having a border between Ireland and Northern Ireland and the

3:49:24 > 3:49:28complexities that are associated with that. The other solution is the

3:49:28 > 3:49:33new customs partnership, and I must say that reading this does make

3:49:33 > 3:49:37entertaining reading and I'm sure members on both sides of the House

3:49:37 > 3:49:43will have read what this means. This is going to be an innovative and

3:49:43 > 3:49:52untested approach. That reassures me. Untested.

3:49:52 > 3:49:56Labour need to be discussed further with the EU and businesses. Not much

3:49:56 > 3:50:01time left to discuss it with the EU and businesses and the customs bill

3:50:01 > 3:50:05could not be drafted to specifically describe the intimidation of this

3:50:05 > 3:50:10outcome. -- implication of this

3:50:13 > 3:50:17in terms of family times you can caveat a statement in one paragraph,

3:50:17 > 3:50:22I think that is probably five or six. Good luck to the government if

3:50:22 > 3:50:25they are going to roll out that particular solution, the blue sky

3:50:25 > 3:50:30solution no one has thought of, no one has programmed for and no one

3:50:30 > 3:50:34has any hope of implementing any time soon. Madame Debord is beginner

3:50:34 > 3:50:37will be to the roof of numbers opposite that at this point I would

3:50:37 > 3:50:40just like to conclude by saying that I'm afraid that nothing we have

3:50:40 > 3:50:44heard so far from the minister gives me or I think anyone on this side of

3:50:44 > 3:50:51the house any reassurance whatsoever that in March 2019 or indeed I would

3:50:51 > 3:50:53say even at the end of the two-year transition period that the

3:50:53 > 3:50:57government will be in a position to have a smooth customs arrangement

3:50:57 > 3:51:04that prevails either on the border between Ireland and Northern Ireland

3:51:04 > 3:51:08or indeed a smooth, seamless, frictionless border or bridge at

3:51:08 > 3:51:16Dover and Calais.This is an important bill because customs

3:51:16 > 3:51:21matters have been covered by EU law for many decades and Britain does

3:51:21 > 3:51:25need its own primary legislation on customs. A good government does need

3:51:25 > 3:51:31to be prepared for all eventualities. But whilst this bill

3:51:31 > 3:51:35would provide customs legislation in a no deal scenario, I am very glad

3:51:35 > 3:51:41that the UK is instead looking for more bespoke solutions. We shouldn't

3:51:41 > 3:51:46just cut and paste the customs procedures that we used the products

3:51:46 > 3:51:50from far-flung parts of the globe onto our trade with Europe. Goods

3:51:50 > 3:51:57that travel long distances can have their customs paperwork cleared

3:51:57 > 3:52:03whilst on the seal in the air, and that would be much more challenging

3:52:03 > 3:52:05for our cross channel activities, let alone Ireland or Northern

3:52:05 > 3:52:15Ireland. Furthermore EU and UK trade deal covers vast quantities of

3:52:15 > 3:52:20goodss. The car company Honda alone estimate they transport 2 million

3:52:20 > 3:52:27parts across the Channel every day. Additional paperwork or delays add

3:52:27 > 3:52:33Scots -- costs, and companies need time to adjust to procedures, not

3:52:33 > 3:52:39just for UK companies but the EU companies too. We need a specific

3:52:39 > 3:52:44deal and transitional periods. At whilst this legislation covers

3:52:44 > 3:52:48customs matters, it does not cover many other activities that take part

3:52:48 > 3:52:54at our ports and airports such as tackling counterfeit goods or plant

3:52:54 > 3:53:04and animal health checks. Plant and animal health checks will be

3:53:04 > 3:53:07particularly sensitive, and we should not underestimate how

3:53:07 > 3:53:14seriously counterparts in Europe take the issue of counterfeit goods,

3:53:14 > 3:53:18not just fake handbags, ladies, but also serious counterfeits of

3:53:18 > 3:53:22dangerous electrical goods, fake chemicals, fake medicines, and

3:53:22 > 3:53:28Britain and Europe are stronger when we face these sorts of challenges

3:53:28 > 3:53:32together. Now trading partners will want to make sure we have not only

3:53:32 > 3:53:40this customs law in process but also the other, and the ability and the

3:53:40 > 3:53:42commitment to police those procedures properly. Mr Barnier, you

3:53:42 > 3:53:53said today that if the UK once an ambitious partnership we must also

3:53:53 > 3:53:57find common ground on food standards, product standards and

3:53:57 > 3:54:02many other areas. I say back to you, Mr Barnier, the vast majority of

3:54:02 > 3:54:10people in this country do want to have that amicable partnership and a

3:54:10 > 3:54:13close trading relationship. So please, I know it is difficult,

3:54:13 > 3:54:20there is no government in Germany, but let's moved the detailed

3:54:20 > 3:54:29negotiations so we can find that common ground together.Deputy

3:54:29 > 3:54:34Speaker, I think it was stated by the minister at the outset it is the

3:54:34 > 3:54:37government's policy to leave the customs union. It wasn't something

3:54:37 > 3:54:40that was on the ballot paper in the referendum, it is a matter of policy

3:54:40 > 3:54:45choice that the government are taking. So it is the policy of the

3:54:45 > 3:54:50government to exit the most efficient, tariff free, frictionless

3:54:50 > 3:54:57free-trade area of anywhere in the world, and what we will end up with

3:54:57 > 3:55:04afterwards is therefore bound to be inferior, possibly very much

3:55:04 > 3:55:10inferior, to the basic free trained arrangement most countries around

3:55:10 > 3:55:16the world -- free-trade, enjoy. We could find ourselves at the mercy of

3:55:16 > 3:55:19the basic World Trade Organisation tariff arrangements, and so this

3:55:19 > 3:55:21bill that we are paving the way for through those ways and means

3:55:21 > 3:55:28resolution this evening comes at a crucial juncture. I thought it was

3:55:28 > 3:55:34very unfair that many honourable members opposite were talking about

3:55:34 > 3:55:40the Eeyore like speech from my friend from Edinburgh South. I think

3:55:40 > 3:55:43he is quite a positive character who wants to do the best the trade and

3:55:43 > 3:55:49business in the country, in fact if anything is negativity is this

3:55:49 > 3:55:51legislation the government are bringing. The Minister who spoke at

3:55:51 > 3:55:59the beginning was the harbinger of doom. Echoes this is a bill planning

3:55:59 > 3:56:04for no deal. This is a set of legislative changes paving the way

3:56:04 > 3:56:12the circumstances where the UK might be imposing tariffs on our nearest

3:56:12 > 3:56:15trading neighbours and vice versa. I cannot think of something more

3:56:15 > 3:56:22depressing, more defeatist, more premature, given that we haven't

3:56:22 > 3:56:25actually had these negotiations yet, and in fact I can't think of

3:56:25 > 3:56:29anything much more aggressive, in terms of the negotiating settlement

3:56:29 > 3:56:33we are trying to get come than this sort of suggestion where we are

3:56:33 > 3:56:42saying we are going to put into legislation the ability to raise

3:56:42 > 3:56:46significant talents with whom 50% of our trade takes place. I will give

3:56:46 > 3:56:51way to the honourable member for Gloucester.He talks rationally as

3:56:51 > 3:56:55always. The reason why I felt his honourable friend for Edinburgh

3:56:55 > 3:56:59South was being rather like Eeyore is that he underestimates the impact

3:56:59 > 3:57:03on Scottish whiskey, which he talked about quite a lot. Of the Far East.

3:57:03 > 3:57:07He needs to go and see the Johnnie Walker shops in Shanghai and

3:57:07 > 3:57:14Beijing, he needs to look closely at white and Mackay, a failing Glasgow

3:57:14 > 3:57:17whiskey manufacturer now saved and reenergised by a buyer from the

3:57:17 > 3:57:20Philippines to understand that actually the future of the Scottish

3:57:20 > 3:57:25whiskey lies in Asia and far-flung places as it does in Europe.Of

3:57:25 > 3:57:31course that may be the case, but it is not either or. It is not let's

3:57:31 > 3:57:37cell that fantastic Scottish whiskey product to China or to Europe. We

3:57:37 > 3:57:41should be doing better. And of course if you were a German car

3:57:41 > 3:57:47manufacturer or a fractured food producer, you are actually trading

3:57:47 > 3:57:51exceptionally well with the Far East, and of course remaining a

3:57:51 > 3:57:54member of the customs union, remaining a member of the single

3:57:54 > 3:57:59market. And my quibble with the government ministers and some

3:57:59 > 3:58:03members opposite is that they sort of give this impression it is an

3:58:03 > 3:58:08either or, a binary arrangement, we can ditch our trading arrangements

3:58:08 > 3:58:12and partnerships with our nearest neighbours because we might be able

3:58:12 > 3:58:15to eventually do something with China or India or Australia or

3:58:15 > 3:58:22Brazil. We should be to do all of those things and can do all of those

3:58:22 > 3:58:27things simultaneously to be part of that greatest free-trade area of any

3:58:27 > 3:58:35set of nations anywhere in the world, which we are about to throw

3:58:35 > 3:58:40overboard for no reason other than a matter of government policy. We all

3:58:40 > 3:58:43hope for a short transitional period we can salvage that relationship

3:58:43 > 3:58:46within the single market and the customs union but of course that

3:58:46 > 3:58:52will take quite a lot of negotiation and depends on a number of different

3:58:52 > 3:58:56things. It is a shame the government of Germany are in this unstable

3:58:56 > 3:59:00situation because I suspect that will make it far harder. It is one

3:59:00 > 3:59:03of the reasons I didn't actually vote in favour of the Article 50

3:59:03 > 3:59:06arrangement at the time because I felt it was premature, I thought we

3:59:06 > 3:59:09should have secured a better timetable than the one we have ended

3:59:09 > 3:59:15up with because of course the clock ticks down. You can end up with

3:59:15 > 3:59:18unforeseen diplomatic wrinkles in this whole process. And we get

3:59:18 > 3:59:30backed into a corner. And the snap general election which nobody

3:59:30 > 3:59:35anticipated, least of all members opposite, Madam Deputy is bigger,

3:59:35 > 3:59:39let's bear in mind what this bill and this ways and means arrangement

3:59:39 > 3:59:46I dwell per Izaaj, in terms of tariffs on our different imports and

3:59:46 > 3:59:51exports. For ceramics, I said to the whip and to the minister sitting on

3:59:51 > 3:59:55the front bench who I know are listening very carefully to this, it

3:59:55 > 4:00:00would be a 7% tariff that would be introduced on ceramic products. On

4:00:00 > 4:00:11cars it would be 10%.I thank my honourable friend for raising the

4:00:11 > 4:00:14matter of ceramics, and he will know that the best ceramics in the world

4:00:14 > 4:00:20are made in this country, but this bill, which does so well about we

4:00:20 > 4:00:27are going to trade around the world, it does little to talk about the

4:00:27 > 4:00:31objections ceramics trade can be protected. I wonder if he liked me

4:00:31 > 4:00:36is worried that the ministerial team appears to be completely devoid of

4:00:36 > 4:00:40any intention to help those manufacturing bases in this country

4:00:40 > 4:00:45with this motion?That of course is exactly why the amendments from my

4:00:45 > 4:00:48honourable friend from Edinburgh South should be accepted and

4:00:48 > 4:00:52embraced by ministers, should also be based may I say by our own Labour

4:00:52 > 4:01:00Party front French and I am sure -- front bench. Because we should fear

4:01:00 > 4:01:04these tariffs being put on because of course they might not just be a

4:01:04 > 4:01:08one-off tariff. Sometimes a product can cost a border multiple times and

4:01:08 > 4:01:14may well accumulate some of these tariffs quite frequently. 11% on

4:01:14 > 4:01:21footwear, 20 the scent on beverages, potentially 45% on cereals, 50% on

4:01:21 > 4:01:25meat products. These are serious impediments to some major industries

4:01:25 > 4:01:30in the United Kingdom. So when my honourable friend put down these

4:01:30 > 4:01:34moments, that would effectively say, well, you can prepare for a tariff

4:01:34 > 4:01:40regime but according the amendments we do not wish to impose tariffs on

4:01:40 > 4:01:47goods with our nearest neighbours in the European Union. In essence

4:01:47 > 4:01:50replicating the customs union arrangement that we have. I was

4:01:50 > 4:01:55delighted, and I want to make sure that the house has the opportunity

4:01:55 > 4:01:58to voice support for those amendments this evening. It is a

4:01:58 > 4:02:01shame that during the course of the European Union withdrawal bill

4:02:01 > 4:02:05during the committee stage, the amendments on customs union have not

4:02:05 > 4:02:09of course been selected. So we weren't as a house get a chance

4:02:09 > 4:02:13actually to vote on customs union issues during the course of that EU

4:02:13 > 4:02:17withdrawal bill committee stage. In many ways this is an opportunity for

4:02:17 > 4:02:23us to do so now tonight.It gives me an opportunity to say I also wanted

4:02:23 > 4:02:26the opportunity to vote on these amendments today and look forward to

4:02:26 > 4:02:30that. But I wanted to bring him to the question of local content of

4:02:30 > 4:02:35cars. Is that something he has been following, because of course the UK

4:02:35 > 4:02:38could be in a very difficult position where the local content of

4:02:38 > 4:02:41the cars we manufacture here would not actually allow us to sell any of

4:02:41 > 4:02:47them abroad in any case.This of course is the other factor that

4:02:47 > 4:02:51comes into the debate about the customs union, this question of

4:02:51 > 4:02:54rules of origin, because it is not just a question of the tariff, it is

4:02:54 > 4:02:58about what proportion of those products originate from within the

4:02:58 > 4:03:06United Kingdom and what proportion relates to components or other parts

4:03:06 > 4:03:09that may have come from what currently is the infantry, the

4:03:09 > 4:03:16warehouse of the whole of the European Union. Because if you are a

4:03:16 > 4:03:22car manufacturer in the UK located now, you can and just-in-time

4:03:22 > 4:03:26arrangements for warehousing avoid the need to stack up great expense

4:03:26 > 4:03:31of the infantry. You can assume that goods and parts will be transmitted

4:03:31 > 4:03:36within a matter of hours or days, and of course that is the risk we

4:03:36 > 4:03:40are potentially going to lose if we end up with this sort of tariffs and

4:03:40 > 4:03:43these sort of impediments at our borders.I thank you for giving way

4:03:43 > 4:03:48again. Is he aware that apparently the solution the UK Government are

4:03:48 > 4:03:52perhaps proposing in relation to rules of origin might be to ask the

4:03:52 > 4:03:57European Union to allow their content to be included as part of

4:03:57 > 4:04:04our local content?Some solutions have to be forthcoming. I have high

4:04:04 > 4:04:08hopes for the Minister, I don't know whether he will be a bitter say

4:04:08 > 4:04:13well, anything really about that suggestion or any other part of the

4:04:13 > 4:04:17negotiation. But remember customs union as it currently stands allows

4:04:17 > 4:04:25that the core manufacturer to sell a car into Berlin is easily currently

4:04:25 > 4:04:29as it can sell a car in Birmingham or Bradford. This is the nature of

4:04:29 > 4:04:36the market we currently have. That could end if we impose tariffs at

4:04:36 > 4:04:40these particular levels, which this motion tonight would pave the way

4:04:40 > 4:04:48for. The honourable gentleman raised earlier the question of the border

4:04:48 > 4:04:50with Northern Ireland, and my honourable friend from Edinburgh

4:04:50 > 4:04:55South also talked about the Belfast agreement, and how of course that is

4:04:55 > 4:05:01one of the areas where this is crystallise most of all.

4:05:01 > 4:05:06I can't think of any members who would say that they should be a hard

4:05:06 > 4:05:13border between Britain and Northern Ireland and if you're not going to

4:05:13 > 4:05:17have that, there should not be a hard border between Northern Ireland

4:05:17 > 4:05:21and the Republic of Ireland, and there can't be a hard border between

4:05:21 > 4:05:27the Republic of Ireland and European Union, but somehow we are talking

4:05:27 > 4:05:32about instituting a hard border between European Union and the UK,

4:05:32 > 4:05:37the logic of this as the member from Rushcliffe was pointing out,

4:05:37 > 4:05:44completely. Pieces -- completely. Pieces we're waiting for the blue

4:05:44 > 4:05:49sky solution which was flown in the trade White Paper recently --

4:05:49 > 4:05:54completely falls to pieces. The Irish government asking for written

4:05:54 > 4:05:58proposals from ministers on these points, these are serious questions

4:05:58 > 4:06:06and much of it comes back to whether we are going to find ourselves

4:06:06 > 4:06:09voluntarily asking for circumstances where we want hard borders and we

4:06:09 > 4:06:13want those rules of origin checks to be put in place, and by supporting

4:06:13 > 4:06:18the amendments from my honourable friend from Edinburgh this evening,

4:06:18 > 4:06:24this house has a way of signifying that we choose a different course,

4:06:24 > 4:06:29that we choose circumstances to retain as much as possible of the

4:06:29 > 4:06:33frictionless, free trade tariff free area that we enjoy in the customs

4:06:33 > 4:06:44union.Thank you. May I say, I'm repeating the words of the Prime

4:06:44 > 4:06:49Minister who has emphasised there will be no physical infrastructure

4:06:49 > 4:06:52on the border between Northern Ireland and the Republic of Ireland,

4:06:52 > 4:06:57the Secretary of State for Northern Ireland has ruled out cameras being

4:06:57 > 4:07:02used on the border, so if we're not going to have cameras and physical

4:07:02 > 4:07:06infrastructure but we're going to have a frictionless seamless border,

4:07:06 > 4:07:11how does the member to see the government being able to claim the

4:07:11 > 4:07:17customs duties on the border? There's no logic to the government's

4:07:17 > 4:07:22position right now, and none of that was on the ballot paper at the

4:07:22 > 4:07:27referendum. It is important to remember this, people are making the

4:07:27 > 4:07:30assumption that this is a natural consequence flowing from the

4:07:30 > 4:07:36referendum result, it isn't. We could choose to negotiate to remain

4:07:36 > 4:07:41in the customs union and by doing so not only would we have that

4:07:41 > 4:07:51fantastic free trade access to 50% of our imports and exports but we

4:07:51 > 4:07:57would also retain access to 57 free-trade agreements with non-EU

4:07:57 > 4:07:59countries who we have that arrangement by virtue of our

4:07:59 > 4:08:04membership of the EU and the customs union, which is another 12% of our

4:08:04 > 4:08:11trade on top of that, so we are getting something like two thirds of

4:08:11 > 4:08:15our trade that is dependent in many ways on our current relationship

4:08:15 > 4:08:21with the customs union. I look forward to the speech from my friend

4:08:21 > 4:08:27on the Labour Party front bench shortly. I would say to my

4:08:27 > 4:08:30honourable friend and other colleagues, we can't sweep away this

4:08:30 > 4:08:35question of the customs union, it is positive that the Labour Party is

4:08:35 > 4:08:39saying we want to stay in the customs union for the transition

4:08:39 > 4:08:43period and positive that we are saying after Brexit we want to get

4:08:43 > 4:08:47as close as we can to a customs union but I want to urge the front

4:08:47 > 4:08:53bench to go further, it is a nonsense to suggest that there is

4:08:53 > 4:08:59such a thing as a jobs first Brexit. It is as nonsensical as saying that

4:08:59 > 4:09:08you can have a books first library closure, it doesn't work. If we end

4:09:08 > 4:09:12up going down this route, exiting the customs union, exiting the

4:09:12 > 4:09:18single market, jobs will be lost, we have seen nine jobs go today in the

4:09:18 > 4:09:23European Medicines Agency, go to Amsterdam from the UK, highly

4:09:23 > 4:09:29skilled and valuable activity, and I'm appalled that we are in that

4:09:29 > 4:09:36circumstance, and that is the tip of the iceberg. I urge my colleagues to

4:09:36 > 4:09:40support the excellent amendments from my friend from Edinburgh South.

4:09:40 > 4:09:48Alice Subaru.Thank you very much. I rise to give my support to those

4:09:48 > 4:09:51amendments but to make it clear that I will be voting for them-- Anna

4:09:51 > 4:09:52Sue Brie.

4:09:53 > 4:09:58I made it very clear when I stood in the run-up to the general election,

4:09:58 > 4:10:02that I would continue to make the case for the customs union, the

4:10:02 > 4:10:08single market and the positive benefits of immigration to everybody

4:10:08 > 4:10:13in Brock Stowe, and after being returned to this place with a

4:10:13 > 4:10:19diminished majority, but with extroverts, I'd take -- extra votes,

4:10:19 > 4:10:24I am going to vote for this amendment from and it is a badger to

4:10:24 > 4:10:30follow the excellent contributions -- I'm going to vote for this

4:10:30 > 4:10:33amendment, and it is a pleasure to know some of the excellent

4:10:33 > 4:10:43contributions we have had, including the member from Carshalton. The

4:10:43 > 4:10:49pleasure I have in speaking in Mr Bate is primarily this, we are

4:10:49 > 4:10:56actually having a debate -- in this debate. We also having a vote and we

4:10:56 > 4:10:59are providing this House and this place at last an opportunity to have

4:10:59 > 4:11:05a real and meaningful say in the future of our country, something

4:11:05 > 4:11:12that has been denied within this place come ever since June the 23rd,

4:11:12 > 4:11:172016, and if only the government had at that time and I can understand

4:11:17 > 4:11:21why in many ways it couldn't, but if it had actually looked at trying to

4:11:21 > 4:11:27build a consensus, trying to find what those elements word that united

4:11:27 > 4:11:32us far more than which had divided us during the referendum debate,

4:11:32 > 4:11:35then we would not be in the unholy mess we are undoubtedly are at the

4:11:35 > 4:11:42moment. The reality is, as the Brexit reality or nightmare begins

4:11:42 > 4:11:49to dawn increasingly on the people of this country, the reality is,

4:11:49 > 4:11:57this scenario of deal or no deal is actually not the real options that

4:11:57 > 4:12:02face the British people. To paint the idea of the hard Brexit as being

4:12:02 > 4:12:07something we should prepare for and I can understand why, the government

4:12:07 > 4:12:11has got to be responsible and the cat that, but we are more likely

4:12:11 > 4:12:17than not is not to get a deal -- be responsible and to look at that. The

4:12:17 > 4:12:23Prime Minister said she did not want a no dear, but this is now not just

4:12:23 > 4:12:26likely, but they are in quarters of this place people actually

4:12:26 > 4:12:33positively urging that and actually working it -- did not want a no

4:12:33 > 4:12:37deal. I find it perverse and bizarre that in my own party which has

4:12:37 > 4:12:43always been so proud to be the party of business, we are increasingly

4:12:43 > 4:12:46being seen as the party that no longer represents business in this

4:12:46 > 4:12:54country. Because let's be clear, the overwhelming majority of businesses

4:12:54 > 4:12:58not just in my constituency but the length and breadth of this country,

4:12:58 > 4:13:05do not want a hard Brexit. It is not a choice between a hard Brexit and

4:13:05 > 4:13:10no deal or a bad deal, there is a third option, an option that is not

4:13:10 > 4:13:15even being debated, and certainly not voted on until summer, and that

4:13:15 > 4:13:23is the third way. -- on until tonight. The customs union includes

4:13:23 > 4:13:29the single market and I agree, and I won't repeat the excellent arguments

4:13:29 > 4:13:33advanced by the member for Edinburgh South, but I absolutely endorse the

4:13:33 > 4:13:39arguments he made and the interventions he took from other

4:13:39 > 4:13:43members who also see the value of the customs union, because what it

4:13:43 > 4:13:49delivers is what I think the British people want. Overwhelmingly the

4:13:49 > 4:13:52majority of people in his country I cheesed off with the whole thing,

4:13:52 > 4:13:57they are fed up with Brexit, they are fed up with the arguments and

4:13:57 > 4:14:00squabbling, and I'm going to be blunt, they are getting fed up with

4:14:00 > 4:14:06a government that has still not worked out what its policy is the

4:14:06 > 4:14:11transitional deal, and indeed for the final deal, and some might say

4:14:11 > 4:14:18that is shameful, all this time that has progressed since we jumped as I

4:14:18 > 4:14:21feel we did into triggering Article 50, and there were some of us, and

4:14:21 > 4:14:29don't do we know -- don't we know all the attacks we received for

4:14:29 > 4:14:32that, we said, please don't trigger Article 50 until at least the

4:14:32 > 4:14:40Germans have had their elections and that stable government has been put

4:14:40 > 4:14:45in place, and how right we were to put that in. The British people are

4:14:45 > 4:14:50looking at all of this and they are frankly fed up to the back teeth

4:14:50 > 4:14:55with it, they want us to get on with it and I think we should get on with

4:14:55 > 4:15:00it. But not in the way that a small ideological group of people I'm

4:15:00 > 4:15:04afraid to say in my own party mainly, are now urging the

4:15:04 > 4:15:08government to get on with it, and that is to leap off the cliff and

4:15:08 > 4:15:15get no dear, of course I will take an intervention. -- no deal.When

4:15:15 > 4:15:18the history books are written about this, her name will play a prominent

4:15:18 > 4:15:22role in trying to bring her government back from the brink, and

4:15:22 > 4:15:27we appreciate the work she's doing on this, but does she not agree with

4:15:27 > 4:15:30me, I'm also delighted we are debating the customs union, and the

4:15:30 > 4:15:35government are suggesting a frictionless and seamless border and

4:15:35 > 4:15:38customs arrangement, the best thing they could do to deliver that is to

4:15:38 > 4:15:43stay in the dam thing.I could not agree more, and that is what the

4:15:43 > 4:15:49people need to understand, that there is this third option, this

4:15:49 > 4:15:54other way of getting a Brexit where we are out of the European Union, so

4:15:54 > 4:16:00we have satisfied the 52% who voted, about leaving, but we deliver what

4:16:00 > 4:16:05everybody wants which is the best possible Brexit that is in the

4:16:05 > 4:16:09interests of everybody in this country, with the economy and jobs

4:16:09 > 4:16:13and prosperity actually right at the heart, it solves the problem is that

4:16:13 > 4:16:18Northern Ireland faces, it solves the problem that Ireland faces

4:16:18 > 4:16:24because we keep the customs union. I'm very grateful for allowing

4:16:24 > 4:16:31meetings in vain. -- allowing me to intervene. I'm disquieted by the

4:16:31 > 4:16:34fact that there are members of her party that are seemly in favour of a

4:16:34 > 4:16:43no deal as we leave the EU, and why I'm disquieted by this, today in the

4:16:43 > 4:16:48Belfast Tel, it carries a report that the public and organisations in

4:16:48 > 4:16:53Northern Ireland and Sinn Fein are hoping for a hard Brexit so they can

4:16:53 > 4:16:57exploit the idea of it -- it carries a report that Republican

4:16:57 > 4:17:03organisations will stop to try and rip Northern Ireland away from the

4:17:03 > 4:17:10rest of UK and that is very concerning me as a Unionist.I

4:17:10 > 4:17:13listen to the wise words of the lady, she understands more than most

4:17:13 > 4:17:20the consequences of getting this wrong, it is about the politics as

4:17:20 > 4:17:26well as the trade, I really do take that this huge danger of abandoning

4:17:26 > 4:17:29the customs union and going for some ghastly hardboard which plays right

4:17:29 > 4:17:34into the hands of Sinn Fein, the IRA and all the rest of them -- hard

4:17:34 > 4:17:40border. I won't speak for much longer, because I agree with so much

4:17:40 > 4:17:50of what has been said. I'm old enough to remember the days, I

4:17:50 > 4:17:56remember my father having a car and saying, what happened with the car,

4:17:56 > 4:18:03why have we got it, -- why haven't we got it, and the response was, it

4:18:03 > 4:18:08is down in the garage and we are waiting for a part, it hasn't

4:18:08 > 4:18:13cleared customs. The terrible problem with much of this debate,

4:18:13 > 4:18:17semi-people are so much anger, because this is something they have

4:18:17 > 4:18:22never experienced -- so many people are so much younger. I can remember

4:18:22 > 4:18:28having your suitcases opened at customs control, this is lost on

4:18:28 > 4:18:33part of the population, and here we are, beginning to plan for a return

4:18:33 > 4:18:40to those bad dark days when we were the sick man of Europe. We need to

4:18:40 > 4:18:43stay in the customs union for the sake of our economy and because it

4:18:43 > 4:18:47will deliver what the people want, we will get on with it and make

4:18:47 > 4:18:54progress and we can take it, it is on the shaft, maybe we can take it

4:18:54 > 4:18:59after -- it is on the shelf. It will deliver Brexit and make sure that we

4:18:59 > 4:19:04can then look at the huge other domestic problems that we face.

4:19:04 > 4:19:09Something else I was going to say, which I've no doubt forgotten, but

4:19:09 > 4:19:17it matters not, these are important matters, and... I know what it is,

4:19:17 > 4:19:26history will record the profound irony that the overwhelming majority

4:19:26 > 4:19:31of honourable members in this place the Greek that we should be in the

4:19:31 > 4:19:36customs union and the single market -- agree. The only reason that is

4:19:36 > 4:19:42not even on the table any more and this is an uncomfortable truth is

4:19:42 > 4:19:49because I fear my party is in hock to 30-35 hard ideological driven

4:19:49 > 4:19:55Brexiteer 's and the British people will not thank my party unless we

4:19:55 > 4:19:59stand up for business and stand up for the economy and deliver Brexit

4:19:59 > 4:20:02but also make sure that we deliver for the British people. One last

4:20:02 > 4:20:10intervention.Does she share my horror, as she talks about these

4:20:10 > 4:20:13extremists but that one of these is planning to make a speech tomorrow

4:20:13 > 4:20:19when he actually advocates dropping off the cliff and going on to WTO

4:20:19 > 4:20:22rules and telling the Prime Minister that she needs to take forward a no

4:20:22 > 4:20:30deal Brexit. An absurdity.

4:20:30 > 4:20:37Finally I need to say this, why are we leaving the customs union? The

4:20:37 > 4:20:41reason we are living the customs union is so that apparently we can

4:20:41 > 4:20:48make deals with other countries. And it is the stuff of complete fantasy.

4:20:48 > 4:20:52And as the honourable gentleman for Nottingham East quite rightly

4:20:52 > 4:20:57pointed out, we already have this fantastic arrangement. This customs

4:20:57 > 4:21:02union, single market, biggest in the whole world and we are turning away

4:21:02 > 4:21:05from it, this dreadful self-inflicted wound. Looking into

4:21:05 > 4:21:09other places, dreaming of deals that will never be done. And if there is

4:21:09 > 4:21:20ever a better example of that, look to America. Look to bombard EA, they

4:21:20 > 4:21:24have their most anti-free trade president they have ever seen and

4:21:24 > 4:21:29that is the reality. There is no wonderland ahead of us, what there

4:21:29 > 4:21:33is is real economic damage to our country unless we stay in the

4:21:33 > 4:21:36customs union and that is why I shall be supporting these amendments

4:21:36 > 4:21:44to night.Edit a pleasure to speak in this debate and to follow the

4:21:44 > 4:21:47honourable member for Brock Stowe who spoke with trademark passion on

4:21:47 > 4:21:53these issues. On what I think is one of the most important issues arising

4:21:53 > 4:22:00from the Brexit referendum vote. I admire the ingenuity of the proposer

4:22:00 > 4:22:04of this amendment. If he divides the House this evening, my colleagues

4:22:04 > 4:22:09and I will be supporting him. The

4:22:11 > 4:22:17the Lancaster House speech in the beginning of the Prime Minister

4:22:17 > 4:22:21stated quite clearly that it was the intention of the British government

4:22:21 > 4:22:26to leave both the single market and the customs union. Many members have

4:22:26 > 4:22:31spoken this evening, I can't understand for a second wife the

4:22:31 > 4:22:33British government at that stage decided to close both of those

4:22:33 > 4:22:43options. -- for a second why. There was no outline of what the British

4:22:43 > 4:22:47government would put in place to replace those cornerstones in terms

4:22:47 > 4:22:53of economic policy frameworks that have existed over the last 40 years.

4:22:53 > 4:22:58I thank him for giving way, has he like I have, sat in this the bait

4:22:58 > 4:23:05and waited for someone on the opposite benches to give a ringing

4:23:05 > 4:23:08endorsement of leaving the single market and the customs union because

4:23:08 > 4:23:14it hasn't happened, has it?It is a valid intervention. When we talk

4:23:14 > 4:23:18about the customs union and trade bill, these answers will have to be

4:23:18 > 4:23:23forthcoming. The will of the people across the UK is becoming that we

4:23:23 > 4:23:27need answers to what the government is putting in place instead of those

4:23:27 > 4:23:34frameworks rather than -- other than the empty platitudes we have heard

4:23:34 > 4:23:40the referendum vote. It gives us unhindered access to half a billion

4:23:40 > 4:23:45of the wealthiest consumers in the world and acts as a protective block

4:23:45 > 4:23:51against cheaper and lower standard goods. Including food produces that

4:23:51 > 4:23:57are a vital part of the Welsh economy. The UK Government has not

4:23:57 > 4:24:02negotiated a trade deal since joining the customs union. There is

4:24:02 > 4:24:05little expertise in the British civil service to deal with the task

4:24:05 > 4:24:11at hand. In the last Parliament, I visited Washington, DC with a

4:24:11 > 4:24:16parliamentary delegation to scrutinise the deal between the EU

4:24:16 > 4:24:21and the US and we had a British government official with him. I

4:24:21 > 4:24:24asked him one evening Hamley people were in his team, he said it was

4:24:24 > 4:24:33just him. And I think that gives an indication of the challenge ahead in

4:24:33 > 4:24:36getting the civil servants ready to deal with the challenges we will

4:24:36 > 4:24:42face in terms of trade policy. Recent reports interims of staffing

4:24:42 > 4:24:44in the international trade Department and the expertise needed

4:24:44 > 4:24:51in that department don't give us, doesn't give me much ground for

4:24:51 > 4:24:57confidence. There is a huge amount of work that needs to be done to get

4:24:57 > 4:25:01the British state ready for the shark infested waters of modern

4:25:01 > 4:25:05international trade negotiations. They are hugely complex issues.

4:25:05 > 4:25:09While I bet professed to being an international trade expert in any

4:25:09 > 4:25:13way shape or form, it seems clear to me that large trading blocs have far

4:25:13 > 4:25:19more power than smaller trading blocs in negotiations. EU, the EU

4:25:19 > 4:25:31customs union is the worlds most trading block. I think there are big

4:25:31 > 4:25:35questions for us as we move forward, whether the UK as an insula trading

4:25:35 > 4:25:42block will be able to perform the same tasks to the same ability. But

4:25:42 > 4:25:44judging the aforementioned visit to Washington, we had a number of

4:25:44 > 4:25:51difficult meetings with US sectors, all the moaning EU intransigence but

4:25:51 > 4:25:57the reality is they had no option other than to accept it because the

4:25:57 > 4:26:02EU was such a large trading block. I remember meeting with the food

4:26:02 > 4:26:05sector during that visit and they weren't pressing the need to open up

4:26:05 > 4:26:12new markets and the hormone beef they have in the US and GM products,

4:26:12 > 4:26:16they knew there was no way they could get that past EU negotiators.

4:26:16 > 4:26:20I wonder if UK negotiators will be able to withstand that pressure when

4:26:20 > 4:26:28it comes to negotiations with the US, I doubt it very much.I thank

4:26:28 > 4:26:32him, he is being very generous. He may be interested to know that I

4:26:32 > 4:26:35asked the Parliamentary question a couple of ways ago to ask the

4:26:35 > 4:26:37Department for International Trade Hamley people they had in their

4:26:37 > 4:26:41department who had successfully completed a trade negotiation. The

4:26:41 > 4:26:46answer I got was the newly appointed Crawford Faulkner. So there is

4:26:46 > 4:26:50apparently one person within the department who has completed a trade

4:26:50 > 4:26:57negotiation.I think that gives us grounds for huge concern. These

4:26:57 > 4:27:01negotiators will be up against expert teams who have been doing

4:27:01 > 4:27:05these negotiations for many years. Not just the EU deal but if the

4:27:05 > 4:27:09government wants to take on the United States as one of its first

4:27:09 > 4:27:14options in a trade deal, I would advise them, as we have on the

4:27:14 > 4:27:16Brexit select committee, that perhaps the UK should look at

4:27:16 > 4:27:25smaller countries rather than something as powerful as the US

4:27:25 > 4:27:30trade lobby. It has also been mentioned many times in this debate

4:27:30 > 4:27:34about the numerous international trade deals that the EU customs

4:27:34 > 4:27:37union audit has, it has over 50 countries with a number of other

4:27:37 > 4:27:50trade negotiations still ongoing and a third of all EU trade by EU

4:27:50 > 4:27:53members goes to these countries. When the international trade

4:27:53 > 4:27:59Department was set up and we had the first question time with the

4:27:59 > 4:28:02international trade sector, I would ask about these trade deals we have

4:28:02 > 4:28:06across the world. His view was that these would be renegotiated

4:28:06 > 4:28:14seamlessly. I fear that was extreme IVT because why would these

4:28:14 > 4:28:17countries agree to the same terms and conditions with a far smaller

4:28:17 > 4:28:22trading bloc which the UK will be, compared to the terms and conditions

4:28:22 > 4:28:27they have with the European customs union. They will look after and

4:28:27 > 4:28:30promote their own interests rather than just accepting what is on the

4:28:30 > 4:28:36table now. The British government's intended policy of leaving the

4:28:36 > 4:28:38single market and the customs union is all ready having a huge impact on

4:28:38 > 4:28:43standard of living of Welsh people. The Centre for economic performance

4:28:43 > 4:28:49has come later that Brexit has cost the average worker in Wales £448

4:28:49 > 4:28:56annually already. In terms of cost of living, disproportionately

4:28:56 > 4:28:59affecting people in Wales and that is before we even leave the European

4:28:59 > 4:29:06Union. The 90% of Welsh food destined for the customs union could

4:29:06 > 4:29:15be disastrous for the constituency I serve. I was amazed to find out from

4:29:15 > 4:29:20sheep farmers that 50% of their produce goes to the European Union

4:29:20 > 4:29:26customs union, 50% of their sheep produce would go directly to the

4:29:26 > 4:29:30customs union. So domestic markets are not going to be able to fill

4:29:30 > 4:29:37these gaps if we lose unfettered access to the European markets. It

4:29:37 > 4:29:41is also worth concentrating on some of the tariffs associated with food

4:29:41 > 4:29:46products. The average tariff on dairy products is 38%. For meat

4:29:46 > 4:29:55products, you are talking 58 or 70%. That would make our products

4:29:55 > 4:30:00destined for the EU and competitive. Food producers, farmers are

4:30:00 > 4:30:04preparing at the moment, they need answers now, they can't wait for a

4:30:04 > 4:30:11protracted trade negotiation. I want to concentrate also on the leaving

4:30:11 > 4:30:16of the customs union on the broader between the British state and the

4:30:16 > 4:30:24Republic of Ireland. This has had considerable coverage in the media

4:30:24 > 4:30:30because the border is one of the few sticking points before we reach the

4:30:30 > 4:30:37first base of negotiations with the European Union. Despite the focus

4:30:37 > 4:30:43being on this, we are no nearer a solution. And press reports in to

4:30:43 > 4:30:48indicate that matters are getting more difficult. I think the British

4:30:48 > 4:30:52government have miscalculated the resolve of the European Union. Their

4:30:52 > 4:30:55overriding priority in these negotiations is going to be

4:30:55 > 4:30:58maintaining the integrity of the single market and the customs union.

4:30:58 > 4:31:01By choosing to leave these frameworks, the UK will become the

4:31:01 > 4:31:07first country, a competitor. They will not be in that solution I have

4:31:07 > 4:31:15your cake and eat it solution. There will be no such thing as a special

4:31:15 > 4:31:19partnership. You will either be a part of the single market or the

4:31:19 > 4:31:23customs union or the best you can hope for is a free trade agreement.

4:31:23 > 4:31:29Like the recent Canadian deal. It has been a welcome development in

4:31:29 > 4:31:32recent months that both the Labour Party and the government seem to

4:31:32 > 4:31:40have now come to the idea of a transition as a good idea. But the

4:31:40 > 4:31:46key question is what happens at the end of the two years?Would he agree

4:31:46 > 4:31:52that the reality of it is that we are not going to get a great deal

4:31:52 > 4:31:55because the EU doesn't want to give us a great deal because if they give

4:31:55 > 4:31:59us a great deal then they would have to have it to a whole load of other

4:31:59 > 4:32:03people who might decide to leave the European Union. While I am not

4:32:03 > 4:32:08saying they want to punish us, I don't think they do, but they have a

4:32:08 > 4:32:13responsibility to keep the European Union together.I think she catches

4:32:13 > 4:32:18my sentiments exactly. By deciding to leave the single market and the

4:32:18 > 4:32:22customs union, we are effectively become a competitor, a third

4:32:22 > 4:32:26country. On that basis, the overriding priority of the European

4:32:26 > 4:32:30Union will be to protect their interests. I think the negotiations

4:32:30 > 4:32:37and a lot of the problems arising could be dubbed with if we said we

4:32:37 > 4:32:42wanted to stay in the single market and the customs union. Returning to

4:32:42 > 4:32:47the transition period, I do think that is a welcome development but I

4:32:47 > 4:32:52am unclear if the government and the Labour Party at the agreed whether

4:32:52 > 4:32:58they want to be in the customs union or a customs union. But even if we

4:32:58 > 4:33:01did decide to stay in the single market and customs union for the

4:33:01 > 4:33:05transition period, the question arises what happens at the end of

4:33:05 > 4:33:11the two-year period. The deal with Canada took far longer than two

4:33:11 > 4:33:23years to negotiate. The chief negotiator on the half of the

4:33:23 > 4:33:27European Union in regards to the border with island has said that the

4:33:27 > 4:33:36EU will not tolerate a soft border between the six counties and the

4:33:36 > 4:33:40republic as a way of avoiding the trade consequences of leaving the

4:33:40 > 4:33:46customs union. That is the crux of the problem we find ourselves in.

4:33:46 > 4:33:51Even if the British government, which as it stands, in my

4:33:51 > 4:33:55understanding, there will be two types of borders between the Irish

4:33:55 > 4:34:02Republic and the British state. You will have a soft border on the

4:34:02 > 4:34:05island of Ireland and there will be a hard border on the Maritime divide

4:34:05 > 4:34:11between Ireland and Wales. This will inevitably have a huge impact on

4:34:11 > 4:34:20Welsh ports. You talk about the tailbacks we might get in Dover and

4:34:20 > 4:34:23the Channel Islands, the same will be for Welsh ports. The

4:34:23 > 4:34:27infrastructure is not there to deal with those challenges but it might

4:34:27 > 4:34:32lead to a diversion of business away from the traditional Wales and

4:34:32 > 4:34:42Ireland trade routes. So instead of businesses and trade flowing between

4:34:42 > 4:34:49the Dublin to Fishguard and Pembroke, trade will be flown

4:34:49 > 4:34:53between Belfast and other parts of the UK. We have to remember that the

4:34:53 > 4:34:58Welsh ports sustain thousands of jobs and as an unintended

4:34:58 > 4:35:02consequence of the British government's muddled policy. I want

4:35:02 > 4:35:08to finish with one last point in terms of the constitutional

4:35:08 > 4:35:11arrangements in the UK. International trade is a reserved

4:35:11 > 4:35:18matter. However trade policy could have massive implications for the

4:35:18 > 4:35:22Welsh, Scottish and Northern Irish governments on devolved competences.

4:35:22 > 4:35:27If the British government allows food standards of lower standard

4:35:27 > 4:35:32into the UK that would impact on Welsh agricultural policy and our

4:35:32 > 4:35:36ability to export to our main European markets. If the British

4:35:36 > 4:35:43government for whatever reason opens up public services to further

4:35:43 > 4:35:47interference, this would fundamentally undermine the ability

4:35:47 > 4:35:52of the devolved governments to deliver competences within the

4:35:52 > 4:35:55public services they have responsibility for. There are

4:35:55 > 4:36:02properly a whole range of problems I haven't even thought of yet.

4:36:02 > 4:36:13In recognition of these problems, the White Paper talks about the

4:36:13 > 4:36:15reconstitution of representatives from all four constituent parts but

4:36:15 > 4:36:21this doesn't go anywhere near for a laugh. -- near far enough of the

4:36:21 > 4:36:29trade policy needs to be shared between everyone. EU trade deals

4:36:29 > 4:36:32leading doors were from all member states and even some national

4:36:32 > 4:36:41governments as we saw with the issues with Belgium. It would be

4:36:41 > 4:36:46incredible if we have trade policy the sole preserve the Westminster

4:36:46 > 4:36:51neglecting the interests of Wales, Scotland and Northern Ireland, not

4:36:51 > 4:36:53allowing our devolved and democratic governments and parliaments to have

4:36:53 > 4:36:58a say on those policies, so in my view Brexit will make a new UK

4:36:58 > 4:37:03constitutional settlement inevitable, intergovernmental

4:37:03 > 4:37:10networks will need to be formalised and strengthened. If it fails to do

4:37:10 > 4:37:13so, every trade deal could potentially be a constitutional

4:37:13 > 4:37:22crisis.Peter Grant.Thank you very much. I'm pleased to speak in favour

4:37:22 > 4:37:29of the amendments and I sincerely hope it will go to a vote later this

4:37:29 > 4:37:34evening. I don't anyone here would disagree with the need to have

4:37:34 > 4:37:37customs legislation of some kind in place, given that many of the

4:37:37 > 4:37:43customs legislation we currently have is derived from EU legislation,

4:37:43 > 4:37:46no one would argue with the fact that when the UK leaves the European

4:37:46 > 4:37:51Union, that legislation needs to be replaced, but as so often in the

4:37:51 > 4:37:55debate about the European Union, we have moved quickly from needing

4:37:55 > 4:37:59something in place, to be told you have agreed to put this in place,

4:37:59 > 4:38:03whether you like it or not, and it is quite clear there is a

4:38:03 > 4:38:11fundamental disagreement between a substantial majority of members in

4:38:11 > 4:38:17this house and the government. As well as paving the way for new

4:38:17 > 4:38:26customs tariffs which is what the resolution is about, this also paves

4:38:26 > 4:38:31the way for additional bureaucracy and infrastructure and border delays

4:38:31 > 4:38:37to leaving the customs union will inevitably create for every single

4:38:37 > 4:38:41journey of every single person and every single lorry and every single

4:38:41 > 4:38:45suitcase that travels to and from the European Union in future. It is

4:38:45 > 4:38:52to be an estimated an additional 548,000 customs declarations needed

4:38:52 > 4:39:01every single date, over six per second.I'm sure even recognise with

4:39:01 > 4:39:09me that this particular problem will apply pretty severely to perishable

4:39:09 > 4:39:17goods, like food, agricultural goods and fresh fresh.Absolutely.

4:39:17 > 4:39:26Significant indications for the supply chain for manufacturing, and

4:39:26 > 4:39:30there are indications for medical supplies as well which are useless

4:39:30 > 4:39:34if they are held up for a few hours at customs and that is before we

4:39:34 > 4:39:37think about the massive inconvenience to travellers for

4:39:37 > 4:39:43business and leisure, and even if they have nothing to declare and

4:39:43 > 4:39:48have no guarantee they won't be on the plane for whatever reason UK or

4:39:48 > 4:39:50French customs decide they are going to search every single passenger

4:39:50 > 4:39:55coming off that plane. We are told in return for that we will have this

4:39:55 > 4:40:01brave new world of trade deals with everybody and anybody, the member

4:40:01 > 4:40:04for Aberdeen South harked back to the glory days of Glasgow's place as

4:40:04 > 4:40:10the second city of Empire, forgetting that to our eternal shame

4:40:10 > 4:40:14the Empire was built on slavery, and we can't go back to the days when

4:40:14 > 4:40:20Glasgow becomes a huge trading taught for tobacco and sugar and

4:40:20 > 4:40:23cotton because we know had the slave plantations that was such an

4:40:23 > 4:40:28important part of that economic model, thank God. We are not going

4:40:28 > 4:40:36back to the days of Empire and the virtual reality members on the other

4:40:36 > 4:40:40side of the house need to understand that the empire has gone, it's no

4:40:40 > 4:40:44partnership and partnership means if we are in a weakened position and

4:40:44 > 4:40:49the big players of the Chinese and Singapore and Malaysia are in a

4:40:49 > 4:40:52strong position, we won't get a favourable deal from them if we

4:40:52 > 4:41:02negotiate on our own. This I want to be in the customs union, that has

4:41:02 > 4:41:06been made clear, that offers the simplest and least disruptive way of

4:41:06 > 4:41:13getting effective the referendum result, and the referendum gave a

4:41:13 > 4:41:18mandate to leave the European Union, we have to respect that, but there

4:41:18 > 4:41:21has never been a referendum mandate to leave the customs union or to

4:41:21 > 4:41:30leave the single market, but it looked to be a spontaneous decision

4:41:30 > 4:41:35by the Prime Minister, redline that was drawn which has painted the

4:41:35 > 4:41:41government into a corner, it is becoming clear that many of the

4:41:41 > 4:41:44government's own highly plausible objectives can't happen if they

4:41:44 > 4:41:48leave the single market, highly plausible objectives such as the

4:41:48 > 4:41:52deed and special partnership we will have with the European Union --

4:41:52 > 4:41:59deep. The continued association with the customs union, the free

4:41:59 > 4:42:08frictionless trade with the EU, except it won't be a special

4:42:08 > 4:42:13association and it won't be anything like as free and frictionless a

4:42:13 > 4:42:16trade deal as we can get by staying where we are now in the single

4:42:16 > 4:42:22market. As an indication of how much substance there is to these sound

4:42:22 > 4:42:27bites that the government is so fond of encouraging the backbenches to

4:42:27 > 4:42:29use, it's worth remembering that just over two years ago they were

4:42:29 > 4:42:33doing the same thing, but the sound bites that were getting cheers on

4:42:33 > 4:42:39the Tory benches were long-term economic plan, it here here, they

4:42:39 > 4:42:45would shut, majority Conservative government, here, they would shout,

4:42:45 > 4:42:48but the government's current platitudes about trade deals are

4:42:48 > 4:42:55likely to be just as quickly dismissed just as quickly as I

4:42:55 > 4:43:01thought other things were going to be around for a long time from 2015.

4:43:01 > 4:43:07There is not one single major policy area for the government to have put

4:43:07 > 4:43:11forward a clear concrete proposal for discussion, and that means that

4:43:11 > 4:43:14on every major policy decision, the government had taken longer to come

4:43:14 > 4:43:20up with idea than 27 parliaments and governments are going to have two

4:43:20 > 4:43:28agree, putting pressure on them, they will act and speak in the

4:43:28 > 4:43:33interests of their people, it is ridiculous to condemn the Irish by

4:43:33 > 4:43:37minister for speaking in favour of the people of the Republic of

4:43:37 > 4:43:40Ireland, that is what Prime Minister is to do and I wish some would

4:43:40 > 4:43:45listen to that. We are in danger of crashing out of the EU without the

4:43:45 > 4:43:48deal and there is a simple way the government can avoid that. The

4:43:48 > 4:43:53simple way that the government can move very very quickly to clear the

4:43:53 > 4:43:59logjam to avoid having a terminal discussion about Northern Ireland

4:43:59 > 4:44:03and to avoid having internal discussions about the rights of 4.5

4:44:03 > 4:44:08million citizens, both of those problems can be resolved simply by

4:44:08 > 4:44:13the government having the humility to say we got it wrong, but we had

4:44:13 > 4:44:16to change tact and stay in the single market, and there is an

4:44:16 > 4:44:19urgent need for the government to follow its own advice and to listen

4:44:19 > 4:44:24to its own rhetoric and to follow the advice that the Brexit Secretary

4:44:24 > 4:44:29gave to the Germans lastly, stop putting politics before prosperity

4:44:29 > 4:44:35-- last week. Take the decision to avoid the worst economic and social

4:44:35 > 4:44:39damage of the Brexit, the government should confirm they want to remain

4:44:39 > 4:44:43in the single market and the customs union and they should signal that

4:44:43 > 4:44:47intention by accepting the moments from the Honourable member from

4:44:47 > 4:44:57Edinburgh South.Stella Creasy.It is a pleasure to follow the member

4:44:57 > 4:45:02who is making another powerful case for what I think is becoming

4:45:02 > 4:45:09incredibly evident within British psyche -- British society but let me

4:45:09 > 4:45:13start by trying to find common ground, and I don't think anyone

4:45:13 > 4:45:17here has tried to rerun the referendum, we already lies the

4:45:17 > 4:45:24result of the referendum, dashing we all recognise -- we all recognise

4:45:24 > 4:45:29the result of the referendum. I think we can get deals with

4:45:29 > 4:45:32everybody, but what kind of deal and what are the consequences of it,

4:45:32 > 4:45:36including no deal. Yesterday we could get a free trade deal with

4:45:36 > 4:45:43other countries, but as we saw when Switzerland tried to negotiate with

4:45:43 > 4:45:46China, when big goes against little bit results often not good for

4:45:46 > 4:45:50little, that is a real Hobson 's choice, so China has immediate

4:45:50 > 4:45:54access to the Swiss market whilst the Swiss have to wait decades to

4:45:54 > 4:46:00get similar access to the Chinese market. All of these options have

4:46:00 > 4:46:03consequences including the option that this government has taken in

4:46:03 > 4:46:07the last 18 months to fudge and bomb passed their way through this, so I

4:46:07 > 4:46:12welcome the fact that we are having this debate finally, because I think

4:46:12 > 4:46:16above all and in my contributions like, I want to speak up for the

4:46:16 > 4:46:21people whose lives depend, whose businesses depend on the certainty

4:46:21 > 4:46:27of being able to know what happens next. It is a certainty they are not

4:46:27 > 4:46:32getting from Ms government for the we have 759 different treaties that

4:46:32 > 4:46:37have to be renegotiated and there has been no progress 18 months on.

4:46:37 > 4:46:42We are less than 18 months away from the date at which we are supposed to

4:46:42 > 4:46:45leave the European Union, this government is spending money hand

4:46:45 > 4:46:50over fist to sort out the mess they are creating every single day, that

4:46:50 > 4:46:53is money coming from the Armed Forces and today the ministers

4:46:53 > 4:46:58confirmed that is money coming from the education services as well.

4:46:58 > 4:47:01Money being re-prioritise to figure out what on earth a deal with Europe

4:47:01 > 4:47:08would look like. 80 months on, no answers. And all because the

4:47:08 > 4:47:11government and the Prime Minister cannot admitted that she simply got

4:47:11 > 4:47:17it wrong in that Lancaster house speech when she rolled out access of

4:47:17 > 4:47:22the customs union and the single market -- ruled out. I speak in

4:47:22 > 4:47:27support of the amendment, and I just want to say I'm supporting this

4:47:27 > 4:47:32amendment because I believe the British public deserve better and if

4:47:32 > 4:47:35this government is going to make a mess of it, we have got to try give

4:47:35 > 4:47:38the people we represent who need that certainty, the need to

4:47:38 > 4:47:42understand what their future holds, the clarity they desire. I will give

4:47:42 > 4:47:49way.Does it say something about the Prime Minister's priorities cover

4:47:49 > 4:47:57that she took time to apologise to the backbenches for the disastrous

4:47:57 > 4:48:01election but she won't apologise over the disastrous Brexit she is

4:48:01 > 4:48:11taking us into.I did not vote for the Article 50 trigger ring, but

4:48:11 > 4:48:18some disasters are of your own making, and the prime ministers

4:48:18 > 4:48:23should have learned from the snap election. In the Lancaster house

4:48:23 > 4:48:28speech she said she wanted to be a say member of the customs union,

4:48:28 > 4:48:32which doesn't exist. This legislation is supposed to answer

4:48:32 > 4:48:36that question, yet I've read that White Paper the government has put

4:48:36 > 4:48:39forward, I've asked the Prime Minister repeatedly about this idea

4:48:39 > 4:48:42of associate membership and I've asked her if she has raised it with

4:48:42 > 4:48:48her European counterparts, aimed yet we have no answer. It's a bit like

4:48:48 > 4:48:52me saying I would like to be in a social member of a gym, uses women

4:48:52 > 4:48:57Paul Bird not have to pay for the classes, -- use the swimming pool

4:48:57 > 4:49:03but not pave the classes, and one Li Na, most businesses would turn you

4:49:03 > 4:49:09down -- and funnily enough. You wonder where this mythical

4:49:09 > 4:49:11partnership the UK Government believes they can get is even on the

4:49:11 > 4:49:16table, because it makes no sense. If you look at the relative how we

4:49:16 > 4:49:20trade as a nation, we are not an island factory, we are a nation that

4:49:20 > 4:49:22works with other countries to produce goods and are proud of the

4:49:22 > 4:49:28goods that we produce through our hard endeavour. Let me give a great

4:49:28 > 4:49:32example, the food and beverages industry, EU accounts for almost 70%

4:49:32 > 4:49:43of our supply chain, and in and our current-- in our car in history,

4:49:43 > 4:49:50there is alsothe fact we are very good at making some aspects of car

4:49:50 > 4:49:55components but not other components, and that is why we work together to

4:49:55 > 4:50:01make those great British cars we are proud of, and it is the ability of

4:50:01 > 4:50:04the EU to navigate those relationships effectively and

4:50:04 > 4:50:10efficiently, for everyone pound a car exports on the UK 44p is spent

4:50:10 > 4:50:17on importing foreign parts and 24% are from the kindest E and that's an

4:50:17 > 4:50:20stake when we suddenly rip up the roles by which that relationship --

4:50:20 > 4:50:25from the car industry. In 14 different sectors at least 15% of

4:50:25 > 4:50:30the supply chain is dependent on the European Union, dependent on not

4:50:30 > 4:50:33having the kind of customs tariff we are talking about, on having the

4:50:33 > 4:50:40fiction is trade.

4:50:40 > 4:50:47In the rubber and plastics industry, 69%, pharmaceuticals, 66%. That is

4:50:47 > 4:50:52why we know that leaving the customs union will cost us £25 billion.

4:50:52 > 4:50:57Those new tariffs alone will add £4.5 billion a year extra to

4:50:57 > 4:51:02importers, money they can ill afford to spend. It is then when you get to

4:51:02 > 4:51:05the practicalities, not just about the money that being part of the

4:51:05 > 4:51:10customs union and single market helps us pay. We will see delays at

4:51:10 > 4:51:16Dover because no one has created the technology for this frictionless

4:51:16 > 4:51:22trade. It is still more paperwork. It is still more complexity in the

4:51:22 > 4:51:26supply chain. The car industry is desperate for us to continue our

4:51:26 > 4:51:32membership of the customs union, the National farmers union, because

4:51:32 > 4:51:37being a part of the EU already gives us access to those markets, not just

4:51:37 > 4:51:41within the EU but with our free trade agreements. A third of all

4:51:41 > 4:51:47global markets have preferential trading deals. When you look at the

4:51:47 > 4:51:51case for the customs union and what it gives us now on it is very clear

4:51:51 > 4:51:57this is not about missed out for ode to Joy, this is business sense that

4:51:57 > 4:52:02says if you have a good way of working, why would you rip it up?

4:52:02 > 4:52:05But that is exactly what this government is doing for something

4:52:05 > 4:52:10that 18 months later they still cannot outline will exist. I'm sorry

4:52:10 > 4:52:14to say I have made the Minister is entirely the front bench by pointing

4:52:14 > 4:52:17that out because I really hope that one minister will be here to answer

4:52:17 > 4:52:21one of my particular concerns with this legislation we are going to

4:52:21 > 4:52:29have and the concept of our VAT proposals. I want to unmask myself

4:52:29 > 4:52:35as a geek interested in VAT. Because I know that when I talk to small

4:52:35 > 4:52:39businesses in my community, VAT is one of their prime concerns. I am

4:52:39 > 4:52:46grateful to see the minister here, the 13th directive is something he

4:52:46 > 4:52:49knows intimately. VAT is one of those things that every business

4:52:49 > 4:52:53will say is a nightmare. I never thought that those on this side of

4:52:53 > 4:52:57the House would be arguing for less red tape in comparison to those on

4:52:57 > 4:53:01the government side but that is exactly what we are talking about a

4:53:01 > 4:53:07night. Because 63% of those small businesses say that Europe is their

4:53:07 > 4:53:12priority market. If you add to the paperwork they have to deal with by

4:53:12 > 4:53:15removing the customs union and single market, then of course it

4:53:15 > 4:53:21will make trading harder for them. Compared to the bigger countries --

4:53:21 > 4:53:26companies, they will not have that freedom. Businesses incurring VAT in

4:53:26 > 4:53:31the EU are able to claim it back through intercountry mechanisms. If

4:53:31 > 4:53:36you sub printers to Sweden and incur VAT is part of that, you can claim

4:53:36 > 4:53:46it back and it is relatively easy to do. Specifically it is articles 170

4:53:46 > 4:53:55and 171 slash 11 to slash EC to the prime VAT directive. And it is in

4:53:55 > 4:53:58our legislation so these ways and means resolutions will have to

4:53:58 > 4:54:02address this point. I am sad to see the Treasury minister is not because

4:54:02 > 4:54:09I have been raising it with him for some time. I can see him talking to

4:54:09 > 4:54:13his officials, I hope he will finally be able to tell me the

4:54:13 > 4:54:17answer to this because right now, because we have the single market,

4:54:17 > 4:54:22businesses can reclaim their VAT relatively simply. If we leave the

4:54:22 > 4:54:28single market come they will have to move on the 13th directive. This

4:54:28 > 4:54:34covers non-EU countries -- companies when they are trading in the EU.

4:54:34 > 4:54:37When you look at the details of the 13th directive, it is clearly

4:54:37 > 4:54:42written to the to the advantage of companies themselves, saying they

4:54:42 > 4:54:47can set their own VAT terms. Think about that for a moment. If you are

4:54:47 > 4:54:53UK, new factor trying to trade in those radiators from across and you

4:54:53 > 4:54:59suddenly have to deal with VAT a cost 27 different countries and 27

4:54:59 > 4:55:03different pieces of paper. I am glad he is here because I know that he

4:55:03 > 4:55:06and I share a concern to remove red tape for businesses to make sure

4:55:06 > 4:55:12that British businesses are not facing additional paperwork and

4:55:12 > 4:55:18complexity. I will happily give way. I thank her for giving way, does she

4:55:18 > 4:55:23agree that the serious problems for businesses which he has so ably

4:55:23 > 4:55:29identified have implications for the whole of local communities as

4:55:29 > 4:55:33companies integrate difficulties and jobs may be last, that reduces

4:55:33 > 4:55:38spending power and affects the whole community is services there.This is

4:55:38 > 4:55:42the challenge we face because 18 months on, it is not unfair that

4:55:42 > 4:55:46businesses across the country are asking what's next. Asking how they

4:55:46 > 4:55:50might adapt to whatever the final deal with Europe might be. 18 months

4:55:50 > 4:55:55on, none of us are any closer to being able to give them any answers

4:55:55 > 4:55:59at all. White papers that talk about ambition and creativity in VAT

4:55:59 > 4:56:04proposals are not what they need. They need clarity. If they are going

4:56:04 > 4:56:07to have to learn new systems and have additional paperwork and

4:56:07 > 4:56:12excessive delays in imports and exports, they need to be able to

4:56:12 > 4:56:16account and adjust for it. The government can say all they want

4:56:16 > 4:56:20about getting these ambitious deals but there are 27 other countries

4:56:20 > 4:56:24they have to negotiate with who are quite happy with the relationships

4:56:24 > 4:56:28they already have, who are perfectly happy with the intra- EU

4:56:28 > 4:56:32arrangements they already have. They think the customs union works for

4:56:32 > 4:56:36them. So if we want to have frictionless trade and we want to

4:56:36 > 4:56:40make it as easy as possible for our business is big or little to trade

4:56:40 > 4:56:45if we want to make it possible for them to have as little paperwork and

4:56:45 > 4:56:48as digitised as it is, the answer is the single market and the customs

4:56:48 > 4:56:53union. In 18 months, no one has been able to come up with a better

4:56:53 > 4:56:58arrangement and I wager that in 18 months' time the answer will still

4:56:58 > 4:57:04be the same. Let us not leave British businesses any longer. I am

4:57:04 > 4:57:07backing this amendment because I want to be able to go to those

4:57:07 > 4:57:10businesses in my community who trade with Europe and say that this is

4:57:10 > 4:57:15what it is going to look like. You can plan ahead in your supply chain

4:57:15 > 4:57:19and do the deals you need to do and invest. I understand why they feel

4:57:19 > 4:57:23they can't do that right now and I know it is my job to help them gain

4:57:23 > 4:57:27that certainty. That is why I am asking other members to join us in

4:57:27 > 4:57:31voting for this amendment and giving this government the message that

4:57:31 > 4:57:40Britain deserves better.Thank you for the opportunity to make a brief

4:57:40 > 4:57:44contribution to tonight 's debate. I want to support my honourable friend

4:57:44 > 4:57:50for Bootle on the front bench, powerful case for preventing

4:57:50 > 4:57:54Parliament from being sidelined on this issue. I want to work the

4:57:54 > 4:58:00significant contribution for the member from Edinburgh South. The

4:58:00 > 4:58:03provision for customs duties is a crucial consideration in what is

4:58:03 > 4:58:07rapidly unravelling is a very expensive and complicated process of

4:58:07 > 4:58:13Brexit. The home affairs committee of which I am a member held an

4:58:13 > 4:58:16enquiry looking in detail such customs operations in the delivery

4:58:16 > 4:58:20of Brexit. The evidence given to our committee should give all of us

4:58:20 > 4:58:27great cause for concern, especially if the governments unspecific plans

4:58:27 > 4:58:31proceed unamended. Delivery of customs policy is a cross government

4:58:31 > 4:58:35process with a wide range of departments and agencies working in

4:58:35 > 4:58:40a delicate balance and under significant pressure. The impact of

4:58:40 > 4:58:44the changes to the customs regime are widespread and there are serious

4:58:44 > 4:58:47concerns about the urgent work needed what for transport

4:58:47 > 4:58:53infrastructure and H MRC. Particularly in relation to a no

4:58:53 > 4:58:58deal scenario which the Home Secretary denied in our committee as

4:58:58 > 4:59:06unthinkable. -- defined as unthinkable. My constituency in

4:59:06 > 4:59:11Croydon has been a key trading route between the coast and the city for

4:59:11 > 4:59:15another of years and continues to be so, it is my job to ensure that

4:59:15 > 4:59:22businesses and industry in my constituency continue to flourish.

4:59:22 > 4:59:24Sweeping new and unscrutinised arrangements are a threat to our

4:59:24 > 4:59:31domestic injuries and can choke up the entire customs system. I want to

4:59:31 > 4:59:34highlight a few issues highlighted by the home affairs select committee

4:59:34 > 4:59:37that highlight how important it is to get this right. Having the right

4:59:37 > 4:59:43checks and balances before changes are made is a big part of this. IT

4:59:43 > 4:59:48systems are particularly concerning. The current system threatens to

4:59:48 > 4:59:53become a horror show because of lack of flexibility to cope with any new

4:59:53 > 4:59:58rules after Brexit. The Chief Executive of H MRC said that it was

4:59:58 > 5:00:02vital and it would be catastrophic if the system wasn't available on

5:00:02 > 5:00:08Brexit day. H MRC will need to add an additional 5000 staff by March

5:00:08 > 5:00:142019. Their capacity has been mentioned already to deliver this

5:00:14 > 5:00:17and it remains a significant concern of the committee and the

5:00:17 > 5:00:21government's planning to date was completely unconvincing to the home

5:00:21 > 5:00:24affairs committee. The National Audit Office expressed concerns

5:00:24 > 5:00:31about the struggles the border force will face with the changes that will

5:00:31 > 5:00:33come out of the multitude of operational changes in a short

5:00:33 > 5:00:39timescale. The chair of the select committee said that getting things

5:00:39 > 5:00:43wrong in the ports infrastructure could lead to operations on

5:00:43 > 5:00:49steroids. The least that people would be the operation of the status

5:00:49 > 5:00:53quo and that the government should agree transitional arrangements to

5:00:53 > 5:00:58that end, ie remaining in the customs union. Finally the committee

5:00:58 > 5:01:02expressed a lack of confidence in a very important question of who is in

5:01:02 > 5:01:07charge of this customs change. There were not satisfied with the

5:01:07 > 5:01:15government answers to this question, the government officials, the fact

5:01:15 > 5:01:18that multiple government departments and agencies are involved in

5:01:18 > 5:01:21delivering customs means that a fully joined up approach from the

5:01:21 > 5:01:30government is urgently needed. We think the Minister of State should

5:01:30 > 5:01:34Alyce be named as responsible for customs. The more unfettered power

5:01:34 > 5:01:39held by ministers the greater the risk that we get this wrong and

5:01:39 > 5:01:42leave our current system civilly unable to cope. The current

5:01:42 > 5:01:46government approach of trying to undermine Parliament and doing

5:01:46 > 5:01:50Brexit on the cheap and steering us towards a no deal on sneaking

5:01:50 > 5:01:53measures through the back door should not be accepted by this

5:01:53 > 5:01:57House. The honourable member for Aberdeen North she had read all the

5:01:57 > 5:02:00things and remained very unclear on how customs would operate in the

5:02:00 > 5:02:06future. I was part of the government Olympic executive when we spent

5:02:06 > 5:02:10years putting in place the right frameworks and detailed planning for

5:02:10 > 5:02:13the Olympic and Paralympic games. This House will remember that the

5:02:13 > 5:02:18one area where we faltered was the recruitment of security staff by G

5:02:18 > 5:02:24forest which led to the army being brought in. We know today that there

5:02:24 > 5:02:29are already problems with equipment of staff in regards to Brexit. It is

5:02:29 > 5:02:31crucial ministers do what they can to ensure the right framework

5:02:31 > 5:02:35remains in place or we continue with the status quo on customs so that we

5:02:35 > 5:02:43do not get to that same point again. It is a pleasure to follow on from

5:02:43 > 5:02:46so many excellent speeches today around this crucial issue which

5:02:46 > 5:02:54sadly seem to have attracted less attention than I think it deserves

5:02:54 > 5:02:56given our future trading partnerships. It has been my view

5:02:56 > 5:02:59that we should stay within the customs union and I am glad the

5:02:59 > 5:03:03Labour Party position keeps that possibility open and I very much

5:03:03 > 5:03:07agree with what my front bench colleagues have said today about the

5:03:07 > 5:03:12importance of scrutiny. This is not just an customs deals but I have

5:03:12 > 5:03:14sent -- signed many early day motions that we need greater

5:03:14 > 5:03:22scrutiny on this place on trade deals per se, it is only right that

5:03:22 > 5:03:25they are properly scrutinised in this place. For me, there are

5:03:25 > 5:03:29fundamental issues here. I want to draw on the report of the home

5:03:29 > 5:03:34affairs committee on which I sit, about these customs arrangements.

5:03:34 > 5:03:37One is on the practicality and the other on the cost. It encapsulated

5:03:37 > 5:03:44it for me Madam Deputy Speaker when our report said clearly that at some

5:03:44 > 5:03:49ports, including Dover, as much as 99% of traffic relates to trade with

5:03:49 > 5:03:55the EU. And witnesses have told our predecessors that a no deal might

5:03:55 > 5:04:01result in 100% of trade becoming non-EU leading to a 100 fold

5:04:01 > 5:04:05increase in the number of customs declarations and that would present

5:04:05 > 5:04:16an unprecedented challenge.He can see the coast of my constituency

5:04:16 > 5:04:18across the Channel, does he recognise that this issue, such as

5:04:18 > 5:04:25the Bristol Port whether our tents and thousands of cars, landing gear,

5:04:25 > 5:04:28engines, it may not be an issue for businesses but will clog up the

5:04:28 > 5:04:33entire city of Bristol and ports around this country, not just making

5:04:33 > 5:04:42a nightmare for constituents but ruining air pollution and business.

5:04:42 > 5:04:46I wholeheartedly agree with those points. I want to come onto the

5:04:46 > 5:04:50error space industry which is critical for the whole of Wales and

5:04:50 > 5:04:54my own constituents -- the aerospace industry. I want a highlight the

5:04:54 > 5:05:00costs which the report made clear, it highlighted the report, which

5:05:00 > 5:05:07said it could cost traders between £4 billion and £9 billion per year

5:05:07 > 5:05:12based on their various estimates including an expected 200 million

5:05:12 > 5:05:16additional declarations after Brexit, and Mark has estimated the

5:05:16 > 5:05:21additional cost is likely to be between 90 and £26 billion he as a

5:05:21 > 5:05:27result of losing the customs facilitation which EU membership

5:05:27 > 5:05:30offers, and then you got a look at the costs of putting in place the

5:05:30 > 5:05:33infrastructure and we have heard discussion about this, whether this

5:05:33 > 5:05:38is Dover or other ports, like Welsh ports and the maritime border

5:05:38 > 5:05:51between Wales and the republic of all -- the Republic of Ireland. John

5:05:51 > 5:05:55Thompson the chief executive of HMRC told the Public Accounts Committee

5:05:55 > 5:06:03that they estimate the cost between 300-450,000,000 in the scenario of

5:06:03 > 5:06:06the UK leaving the EU without the deal and 500 additional staff would

5:06:06 > 5:06:10need to be recruited, these are huge sums and it is important that the

5:06:10 > 5:06:15public understand the costs and risks and the practicalities and

5:06:15 > 5:06:20what ever they voted in a referendum these are the facts that we need to

5:06:20 > 5:06:23have before this House and the country when we are taking decisions

5:06:23 > 5:06:27going forward on the nature of our relationship with our European

5:06:27 > 5:06:33partners. I said I wanted to talk about the aerospace industry and I

5:06:33 > 5:06:36have spoken at my declarations in the register of interests, Airbus

5:06:36 > 5:06:40has been clear that their work involves 80,000 tipsy year between

5:06:40 > 5:06:45the UK and EU countries and that relies on a seamless flow of goods

5:06:45 > 5:06:50and people -- trips a year. If the seamless nature is removed it is

5:06:50 > 5:06:54dangerous for their business and their prospects, and today Airbus

5:06:54 > 5:07:01and the supply chain said on the assumption that the UK became a

5:07:01 > 5:07:08third country Airbus would need to be dues a declaration -- would need

5:07:08 > 5:07:12to produce a declaration which would need up to 50 datasets including the

5:07:12 > 5:07:17country of origin, that the moment the Airbus flies on Toulouse,

5:07:17 > 5:07:21Hamburg and Brighton, with only two hours between landing and departure,

5:07:21 > 5:07:25but should they need to wait for additional customs inspectors this

5:07:25 > 5:07:28would lead to delays and impact their delivery schedule and they are

5:07:28 > 5:07:35heavy penalties for Mr deliveries and delays in parts and equipment,

5:07:35 > 5:07:42and this is not just a trifling matter, Airbus spent £5 billion

5:07:42 > 5:07:46within their UK supply chain we are looking at these issues, the

5:07:46 > 5:07:49problems of transferring small parts and equipment is back and forth, so

5:07:49 > 5:07:52it will impact on their company and also the supply chain which

5:07:52 > 5:07:57stretches at much further than the thousands of employees they employ

5:07:57 > 5:08:03directly.Darcy know of any plan that the government has too solve

5:08:03 > 5:08:08this problem for Airbus -- does he know. These fantastic project which

5:08:08 > 5:08:14relied on these different components, moving right the way

5:08:14 > 5:08:18across the European Union, so frictionless Lee, does he know of

5:08:18 > 5:08:24any alternative that anyone has come up with?I'm not aware of an

5:08:24 > 5:08:28alternative and you sense a growing frustration in the country with the

5:08:28 > 5:08:31lack of information on this, and Airbus have come out today in public

5:08:31 > 5:08:36and made clear that they view the need that we need a lengthy

5:08:36 > 5:08:39transition in their own words, very clear statement about what they want

5:08:39 > 5:08:44in order to keep their business going. I mention Rolls-Royce, I was

5:08:44 > 5:08:49visited by shop stewards from Rolls-Royce in Derby and they were

5:08:49 > 5:08:56very clear, the implications, Simon Hemmings, the chief negotiator from

5:08:56 > 5:08:59Rolls-Royce said if we're not in the customs union there will be job

5:08:59 > 5:09:03losses and if we have a hard Brexit, the foundations we have built will

5:09:03 > 5:09:07not be built upon, they will be built elsewhere, and that is

5:09:07 > 5:09:12absolutely clear. Some aerospace parts crossed the Channel five times

5:09:12 > 5:09:17as they move across the assembly lines in the UK and continental

5:09:17 > 5:09:20Europe and that is one example of one industry which contributes a lot

5:09:20 > 5:09:24in terms of high skilled and high-tech jobs in Wales and the

5:09:24 > 5:09:29South West of and widely and we ignore the concerns of those

5:09:29 > 5:09:34businesses at our peril -- the south-west and Derby and more

5:09:34 > 5:09:41widely. It was clear, the different indications, the concerns about the

5:09:41 > 5:09:46IT systems and the time needed to try new customs officials and the

5:09:46 > 5:09:54worry about the Home Office carrying out many of these checks, and only

5:09:54 > 5:10:01has 300 ex-staff plan, yet we hear HMRC saying up to 5000 staff being

5:10:01 > 5:10:07needed -- 300 staff plan. It is crucial that we have trained and

5:10:07 > 5:10:12skilled staff in place, but an crucially for our security we do not

5:10:12 > 5:10:17see staff who are there to check our borders, checking passports and

5:10:17 > 5:10:22people who are involved in May be illegal activity, are not diverted

5:10:22 > 5:10:29from checks of passports into dealing with customs backlogs, and

5:10:29 > 5:10:32you can imagine a situation where we crash out of no dear, have queues

5:10:32 > 5:10:37and Operation Stack on steroids, the government dragging staff back and

5:10:37 > 5:10:43forth, ending up with delays on one hand, and delays at customs, if we

5:10:43 > 5:10:46don't plan and we don't get the staff in place, then we will have

5:10:46 > 5:10:54serious problems. The report is very clear, that given the times and the

5:10:54 > 5:10:58changes in staffing technology and infrastructure, border force and

5:10:58 > 5:11:03HMRC, we need to clarify rapidly if and what changes will be required

5:11:03 > 5:11:07the transition and crucially how much those will cost and it is only

5:11:07 > 5:11:10right that the British public in this Parliament gets to see the

5:11:10 > 5:11:14costs of a no deal Brexit or a hard Brexit against the other options

5:11:14 > 5:11:20like staying in the customs union. If no deal is reached in the customs

5:11:20 > 5:11:26arrangements it will result in all those involved in customs in the UK

5:11:26 > 5:11:29experiencing a huge amount of change in a very short time, with either a

5:11:29 > 5:11:34vast increase required in capacity at the border and the risk of

5:11:34 > 5:11:38significant delays at ports of entry or inadequate checks taking place.

5:11:38 > 5:11:47The minister said Cliff edge changes were in no one's interests. I hope

5:11:47 > 5:11:53the minister will come if we hear from various more extreme elements

5:11:53 > 5:11:57on his own benches coming forward, say, get on with a no deal Brexit,

5:11:57 > 5:12:00let's fall out of these arrangements, that he will be the

5:12:00 > 5:12:03first to condemn and criticise those statements when they are made

5:12:03 > 5:12:08because they will be at odds with what he has told people might read

5:12:08 > 5:12:13today. These issues are fundamental to the future of our economy and

5:12:13 > 5:12:17jobs and our ability to trade with the rest of the world, it is

5:12:17 > 5:12:20important they are given scrutiny and that we understand the costs and

5:12:20 > 5:12:27I commend the many speeches made this evening.Anneliese Dodds.Thank

5:12:27 > 5:12:32you very much. I'm grateful to the minister for his marks but I have to

5:12:32 > 5:12:37say that they and the resolutions themselves leave four very important

5:12:37 > 5:12:41problems unresolved and many members have spoken about these problems

5:12:41 > 5:12:50today, our -- I will speak about this as much as I can. The

5:12:50 > 5:12:53resolutions fail to make sure that the government's approach customs is

5:12:53 > 5:13:01properly democratically accountable, the member for added Aberdeen said

5:13:01 > 5:13:07the resolutions were a muddle and I actually think there is an element

5:13:07 > 5:13:12of coherence, as put forward clearly by my friend from Edinburgh South

5:13:12 > 5:13:18and Bootle, they said there is the paragraph we have seen sadly

5:13:18 > 5:13:21occurring within the EU withdrawal bill and elements of the Finance

5:13:21 > 5:13:25Bill and the trade bill, these resolutions would give ministers the

5:13:25 > 5:13:27ability to vary customs duties without proper Parliamentary

5:13:27 > 5:13:34scrutiny as we see it and we cannot stand by as we are accountable to

5:13:34 > 5:13:38our constituents who could suffer greatly from that kind of action.

5:13:38 > 5:13:42When it comes to the transition period, the minister would only say

5:13:42 > 5:13:46that we needed some kind of customs Association during the transition,

5:13:46 > 5:13:52it is unfathomable to us on this side of the house, why the

5:13:52 > 5:13:55government is refusing to rule out continuing customs union membership

5:13:55 > 5:13:59even for a transition period when this is what business are clearly

5:13:59 > 5:14:06has demanded. Thirdly, we had again very little enlightenment about the

5:14:06 > 5:14:10capacity of HMRC and the concrete actions that will be taken by

5:14:10 > 5:14:12government to deal with many of the challenges that many of my

5:14:12 > 5:14:18colleagues have expressed very eloquently. By friends from

5:14:18 > 5:14:22Liverpool Riverside and Walthamstow, expressing concerns about the

5:14:22 > 5:14:27administrative burdens that will be applying, and my friend from Cardiff

5:14:27 > 5:14:29South, and it has been suggested that the number of customs

5:14:29 > 5:14:35declarations could shoot up 100%, in a context when HMRC's headcount has

5:14:35 > 5:14:41been reduced by over 16 since 2010, and we did not have the

5:14:41 > 5:14:50clarification about the scope of the trade remedies authority despite my

5:14:50 > 5:14:52friend from Stoke-on-Trent Central pushing hard on this issue. We have

5:14:52 > 5:14:57had much discussion about the dangers of a hard border between

5:14:57 > 5:15:01Ireland and Northern Ireland and I can say very strongly that on these

5:15:01 > 5:15:05benches we don't just want an aspiration to avoid such a border,

5:15:05 > 5:15:10we need cast-iron assurance and we don't have that yet. I want to move

5:15:10 > 5:15:17to discuss amendments he and F and I understand with many of these

5:15:17 > 5:15:19sentiments underline these amendments, especially as they were

5:15:19 > 5:15:24articulated by my friends from Edinburgh South and Nottingham East.

5:15:24 > 5:15:28It is right to highlight as they did the recklessness of this government

5:15:28 > 5:15:32in ruling out membership of the customs union is part of the future

5:15:32 > 5:15:35relationship with the EU but I am concerned about how these amendments

5:15:35 > 5:15:41would interact with WTO rules not least because the government's

5:15:41 > 5:15:46disturbing unwillingness to leave the EU without a deal, because these

5:15:46 > 5:15:51moments members will apply regardless of the future customs

5:15:51 > 5:15:56model, it is not restricted as currently drafted, and we have

5:15:56 > 5:15:58repeatedly indicated while leaving the EU without a deal would be a

5:15:58 > 5:16:02huge blow to British businesses and British jobs but the government has

5:16:02 > 5:16:07failed to rule out this eventuality and its existing negotiating

5:16:07 > 5:16:12approach is not inspire, that is, quite the opposite.Thank you

5:16:12 > 5:16:20forgiving way. -- for giving way. Can I read your comments as a

5:16:20 > 5:16:24statement that the front bench supports staying in the customs

5:16:24 > 5:16:28union but on technicalities will not support this amendment. Do you

5:16:28 > 5:16:32support staying in the customs union on the front bench?I'm grateful for

5:16:32 > 5:16:38the intervention, the Labour Party position is that we want to leave

5:16:38 > 5:16:41all possibilities open and we think that is an appropriate approach to

5:16:41 > 5:16:48take. I see the government laughing at this, and we surely are in a

5:16:48 > 5:16:53negotiation where it is essential that we put Britain's interest first

5:16:53 > 5:16:57and that means not taking options off the table. Which is sadly the

5:16:57 > 5:17:01government has done which it did very early and which is causing

5:17:01 > 5:17:05enormous amount of bad wheel from our other EU partners, which we

5:17:05 > 5:17:14regret enormously -- amount of bad will. If the worst happens and the

5:17:14 > 5:17:20government leaves thanks to its lack of application, to leave without a

5:17:20 > 5:17:28trade deal then the rules of the WTO levered us with no option but to

5:17:28 > 5:17:32trade with our European partners on the same basis with all countries

5:17:32 > 5:17:40with whom we have no free trade agreement. There must be no

5:17:40 > 5:17:42arbitrary discrimination between trading partners of a similar

5:17:42 > 5:17:46developmental status unless those countries and negotiated a free

5:17:46 > 5:17:51trade agreement that meets the WTA's definition of requirements, and if

5:17:51 > 5:17:53we were to adopt the members that allow the UK Government to set

5:17:53 > 5:17:58customs duties on imports and exports from everywhere else in the

5:17:58 > 5:18:01world but not from our European neighbours, in the case of a chaotic

5:18:01 > 5:18:07ideal situation we would be faced with two unpalatable options, the

5:18:07 > 5:18:10first is to disregard the most-favoured-nation rule, and we

5:18:10 > 5:18:15would be exposed to virtually limitless challenges from all other

5:18:15 > 5:18:20WTO members, and the second option is abiding by the

5:18:20 > 5:18:23most-favoured-nation rule but we would have to trade with all other

5:18:23 > 5:18:27countries on the same basis as we then traded with the EU, namely as

5:18:27 > 5:18:31these memos would have without tariffs and quotas, and there are

5:18:31 > 5:18:36some members who would like that on the opposite benches, and there are

5:18:36 > 5:18:39groups like the so-called economists for free trade who wish to have that

5:18:39 > 5:18:44outcome, but a unilateral abolition of tariffs and all other trade

5:18:44 > 5:18:49barriers freely admitting that the scenario would see the end of

5:18:49 > 5:18:52manufacturing in the UK and the end of agricultural production and the

5:18:52 > 5:19:00consummate a loss of millions of jobs. --, committed.I hear the

5:19:00 > 5:19:05arguments, but would she act. It's that this is a ways and Means

5:19:05 > 5:19:11resolution which means that this snapshot in time is to make sure

5:19:11 > 5:19:16that we can replicate the customs union that we have, should we have

5:19:16 > 5:19:20at some hypothetical point in the future, the crashing out scenario,

5:19:20 > 5:19:27Parliament can address that at that point, and so at present the

5:19:27 > 5:19:29amendments are absolutely pertinent to the message we need to be sending

5:19:29 > 5:19:36to the government.I'm grateful to my friend for his question, but the

5:19:36 > 5:19:42problem is, the government's stated intention with these resolutions and

5:19:42 > 5:19:49they have said this time and time again, today, if I may finish my

5:19:49 > 5:19:52point, they have said time and time again that these resolutions are

5:19:52 > 5:19:57about our future relationship with the EU and they did not see them as

5:19:57 > 5:20:01part of a negotiation which may change, and I would hope that

5:20:01 > 5:20:03generally they would be far more open about their negotiating

5:20:03 > 5:20:12position. I just have committee member doesn't mind, I did answer

5:20:12 > 5:20:16that question, the government has stated these resolutions are about

5:20:16 > 5:20:18that future relationship and therefore we have got to take them

5:20:18 > 5:20:23at their word on that. Even if we may have been mistaken on doing that

5:20:23 > 5:20:30on other issues.

5:20:36 > 5:20:43It has been suggested that this could involve the adoption of deals

5:20:43 > 5:20:49similar to two CET a which does not cover agriculture so if we get a

5:20:49 > 5:20:57deal, we would then still need to have a deal on the protection of

5:20:57 > 5:21:00sensitive agricultural products so we need to have those power still

5:21:00 > 5:21:06there. And the Turkish bespoke deal, it still necessitates duties on both

5:21:06 > 5:21:13the Turkish and EU sides. So we have to be clear on what amendments have

5:21:13 > 5:21:25been asked for, they don't guarantee things because they would apply

5:21:25 > 5:21:31across what the government agrees to.I have at the Mendis amount of

5:21:31 > 5:21:35respect for the work she has done in this particular issue. But can I

5:21:35 > 5:21:38just say to my honourable friend, if she disagrees with the technical

5:21:38 > 5:21:46aspects of my amendment but agrees with the principle of saying the

5:21:46 > 5:21:50customs union, where are the front bench amendments?I am grateful for

5:21:50 > 5:21:55his intervention and I am not sure, I am a new member, I don't know how

5:21:55 > 5:21:58appropriate it is as to which amendments have been allowed and

5:21:58 > 5:22:03which haven't, ultimately we are looking for a more democratic

5:22:03 > 5:22:07process. We are not able to vote on that which is unfortunate. He will

5:22:07 > 5:22:12know, as will other members on this -- on this side, that the Labour

5:22:12 > 5:22:16position is to leave all options on the table and that is the best thing

5:22:16 > 5:22:20for Britain to be doing. It is very unfortunate that the government side

5:22:20 > 5:22:27have failed to do that because it is enormously damaging for our

5:22:27 > 5:22:31negotiating position. I very much regret that the government could

5:22:31 > 5:22:36still irresponsibly and recklessly lead us to a no deal scenario and in

5:22:36 > 5:22:41that case, these amendments would sadly worsen our situation. I know

5:22:41 > 5:22:45that is not intended by the proposer but as stated now, that is what

5:22:45 > 5:22:54technically they would lead to. Madam Deputy Speaker. May I first

5:22:54 > 5:22:58say that we have had a very full and good debate this evening on an

5:22:58 > 5:23:02extremely important matter, I do think anybody on either side of the

5:23:02 > 5:23:06House would suggest that these matters are not of the utmost

5:23:06 > 5:23:10importance. If I could run through some of the points that the speakers

5:23:10 > 5:23:15have raised. My honourable friend for Yeovil quite rightly raised, as

5:23:15 > 5:23:22he has with me many times, the HMRC being appropriately resourced. We

5:23:22 > 5:23:28have provided over £40 million to date to HMRC and we will provide

5:23:28 > 5:23:31them with such funds and resources as they need going forward. The

5:23:31 > 5:23:36member for Oxford East bemoaned the fact the government would be able to

5:23:36 > 5:23:42change duties as a consequence -- as a consequence of the bill without

5:23:42 > 5:23:47Parliamentary scrutiny. I would urge her to wait to see the bill to see

5:23:47 > 5:23:50the opportunities there will be for the government to provide scrutiny

5:23:50 > 5:23:55in that respect. The member for Aberdeen North said that she wasn't

5:23:55 > 5:23:59clear what we wanted from these and a gauche Asians but we have in our

5:23:59 > 5:24:06white paper made it very clear the kind of direction of travel we

5:24:06 > 5:24:11foresee in these negotiations. She also raised the point about the

5:24:11 > 5:24:18seediest computer system and say we had allowed just three months for

5:24:18 > 5:24:25testing -- DC DS computer system. The full system will be up and

5:24:25 > 5:24:28running around August next year and companies and traders will be

5:24:28 > 5:24:33migrating to that system between August and January 2000 19. The

5:24:33 > 5:24:39honourable gentleman who pressed the amendment says he wants to stay on

5:24:39 > 5:24:43the customs union, that is a perfectly reasonable aspiration but

5:24:43 > 5:24:47it overlooks the fact that we have voted to leave the European Union.

5:24:47 > 5:24:53We will therefore of necessity be leaving the customs union. We want

5:24:53 > 5:25:00to be able to put together our own trade deals across the world. The

5:25:00 > 5:25:05honourable friend from Gloucester said the amendment close off

5:25:05 > 5:25:10options. He is entirely right. It is worse than that, they introduce

5:25:10 > 5:25:14options that are deeply unattractive. If we were put in a

5:25:14 > 5:25:17position where we pass these amendments, we could be in a

5:25:17 > 5:25:21situation where we unilaterally offer the same terms to European

5:25:21 > 5:25:27countries but in return did not receive those same duty arrangements

5:25:27 > 5:25:32in response which would be hugely to our disadvantage. In the absence of

5:25:32 > 5:25:38a deal, if we were to offer those arrangements to European countries,

5:25:38 > 5:25:41we would find ourselves in a position under the most favoured

5:25:41 > 5:25:45nation rule where we would have to offer those same duty arrangements

5:25:45 > 5:25:51to all other countries that we were trading with. Which would of course

5:25:51 > 5:25:56be an absurdity and they in turn would not have direct support Kate

5:25:56 > 5:26:00those arrangements to us. My right honourable friend the member for

5:26:00 > 5:26:07Brock Stowe talked about us jumping off a cliff into no deal, we have no

5:26:07 > 5:26:13intention as a government of jumping off any cliffs. We are pushing for a

5:26:13 > 5:26:19good deal and we are negotiating hard and we will get a deal I am

5:26:19 > 5:26:25confident that is in the interests of us and the European Union. To

5:26:25 > 5:26:32conclude, the Bill itself is an enabling Bill allowing

5:26:32 > 5:26:35opportunities, the amendment is disabling in the way that I have

5:26:35 > 5:26:39described, I urge the House to reject the amendments and I commend

5:26:39 > 5:26:47these resolutions to the House.The question is that the amendment be

5:26:47 > 5:26:56made. As many of our that opinion say iMac row, to the contrary, no.

5:26:56 > 5:27:00Clear the lobby.

5:29:04 > 5:29:10The question is that the amendment be made, as many of the opinion say

5:29:10 > 5:29:18aye, to those opposed, no. Tell us for the ayes, Mr Phil Wilson and

5:29:18 > 5:29:35Martin Whitfield. Tell us for the nos will stop -- lies.

5:35:11 > 5:35:17Lock the doors.

5:42:35 > 5:42:48In order, order. The ayes to the right, 76, the noes to the left,

5:42:48 > 5:43:06311. The ayes to the right, 76, the noes to the left, 311. So the noes

5:43:06 > 5:43:18have it. Unlock. The question is that the main motion be agreed to.

5:43:18 > 5:43:24As many as are of that opinion, say I. As many as are of the opinion,

5:43:24 > 5:43:33say "aye". To the contrary, "no". The ayes have it. I am now required

5:43:33 > 5:43:39under standing order number 51 to put without further debate the

5:43:39 > 5:43:45question on the two remaining motions. We now come to the ways and

5:43:45 > 5:43:52means motion on value added tax and the excise duty on boats. Minister

5:43:52 > 5:43:56to move formally. The question is as on the order paper. As many as are

5:43:56 > 5:44:04of the opinion, say "aye". To the contrary, "no". The ayes habit. We

5:44:04 > 5:44:10now come to the third motion, the money motion. Minister to move

5:44:10 > 5:44:16formally. As many as are of the opinion, say "aye". To the contrary,

5:44:16 > 5:44:29"no". The ayes have it. The bill ordered to be brought in upon the

5:44:29 > 5:44:41resolution. Who will compare and bring in the Bill?

5:45:19 > 5:45:31Taxation cross-border trade bill. Second reading, what day?Tomorrow.

5:45:31 > 5:45:37With the leave of the House, I will take motion is two, three, four and

5:45:37 > 5:45:45five together. We now come to motion two on Northern Ireland affairs

5:45:45 > 5:45:51committee. Motion three, procedure committee. Motion four, Public

5:45:51 > 5:46:00Accounts Committee. Motion five, women and equalities commission. As

5:46:00 > 5:46:05many as are of the opinion, say "aye". To the contrary, "no". I

5:46:05 > 5:46:15think the ayes have it.I beg to move that this House do now adjourn.

5:46:15 > 5:46:23The question is that this House do now adjourn. Nicky Morgan.I am very

5:46:23 > 5:46:29grateful to you for granting me this adjournment debate. It is

5:46:29 > 5:46:33appropriate because today is the annual trans-state of remembrance,

5:46:33 > 5:46:37remembering those who have lost their lives turned violent rhetoric

5:46:37 > 5:46:44and those who continue to face abuse. During my time as minister, I

5:46:44 > 5:46:47engaged with the transgender community on a national level and

5:46:47 > 5:46:50learn more about the qualities they faced and how these inequalities

5:46:50 > 5:46:56affected their daily lives. I was therefore pleased to publish the

5:46:56 > 5:47:00government's response to the report on transgender equality in July of

5:47:00 > 5:47:04last year, which is another step to acknowledging that although we have

5:47:04 > 5:47:07the gender recognition act 2004 and although the coalition government

5:47:07 > 5:47:12published the first transaction plan, there is more that could be

5:47:12 > 5:47:16done among the government to redress the remaining inequalities,

5:47:16 > 5:47:19unfairness, violence and discrimination faced by the

5:47:19 > 5:47:29transgender people. Since then, I have welcomed my successors. I was

5:47:29 > 5:47:32particularly pleased to learn that the vast majority of commitments

5:47:32 > 5:47:36made in the government's action plan have now been met and I look forward

5:47:36 > 5:47:41to reading the government's new action plan on transgender issues

5:47:41 > 5:47:46when it has been published. I also welcome the government's survey on

5:47:46 > 5:47:49the experiences of using public services in the UK which will help

5:47:49 > 5:47:54guide future policy on improving public services for LGBT users.

5:47:54 > 5:47:58Finally I support the government's plans to consult on the gender

5:47:58 > 5:48:02recognition act which will look to improve the recognition process and

5:48:02 > 5:48:05reduce the stigma based by the transgender community. The proposal

5:48:05 > 5:48:10will include removing the need for a medical diagnosis of gender

5:48:10 > 5:48:16dysphoria before being able to apply for gender recognition and options

5:48:16 > 5:48:18for reducing the length and intrusiveness of the gender

5:48:18 > 5:48:23recognition system.I thank the right honourable lady for giving way

5:48:23 > 5:48:27and for the work she did as the minister in this area. It is of

5:48:27 > 5:48:33course annual trans-Day of remembrance and those inequalities

5:48:33 > 5:48:37are in extraordinarily great, and the violence and discrimination

5:48:37 > 5:48:40concerning. Would she agree with me that is the first Parliament in the

5:48:40 > 5:48:43world to look at these issues and the amount of work that still needs

5:48:43 > 5:48:50to be done, that this is something that is very easily rectified for

5:48:50 > 5:48:59this important community?Yes, I will go on to show that this is a

5:48:59 > 5:49:03very simple loophole which is completely unintended, which would

5:49:03 > 5:49:07be another step for government ministers just to show a continued

5:49:07 > 5:49:12commitment to the transgender equality plan and simple steps can

5:49:12 > 5:49:15mean a great deal of difference to people who are watching tonight and

5:49:15 > 5:49:21those who will find out that this debate later.Can I commend her on

5:49:21 > 5:49:26securing this debate to my? I met with one of my own transport groups

5:49:26 > 5:49:29recently and the shed with me many of the concerns they have. It is

5:49:29 > 5:49:34steps like this that can go a long way to reducing that stigma. Will

5:49:34 > 5:49:37she agree with me there has been unpleasant headlines in certain

5:49:37 > 5:49:43media outlets, many trans people feel stigmatised because of the

5:49:43 > 5:49:57debate that goes on in the media?I agree very much indeed.

5:49:57 > 5:50:01We all know that prejudice comes from fear and talking about these

5:50:01 > 5:50:05issues as my time as equalities Minister, I met many trans-people,

5:50:05 > 5:50:13many of whom struggled to deal with that but with the right support made

5:50:13 > 5:50:18a huge amount of difference. There are many issues that are facing us

5:50:18 > 5:50:22as a country at the moment from just standing back and listening to other

5:50:22 > 5:50:26points of view. Trying to understand, not always easy but

5:50:26 > 5:50:32trying not to rush to judgment. As I said Madam Deputy Speaker, the

5:50:32 > 5:50:34government has committed to consulting on the gender recognition

5:50:34 > 5:50:39act and I wanted to welcome the words from Ruth Hunt, the director

5:50:39 > 5:50:44of Stonewall who said that we do simple process that isn't medical or

5:50:44 > 5:50:50demeaning. These are complex issues that challenge many people but let

5:50:50 > 5:50:55us have a properly informed debate about them rather than just thinking

5:50:55 > 5:51:00it is best not to discuss these difficult issues. So I wanted to

5:51:00 > 5:51:05take this opportunity to again raise another aspect of the gender

5:51:05 > 5:51:10recognition act which I think needs to be reviewed. Insert in the 2016I

5:51:10 > 5:51:14received a letter from Alex who wrote "I am a sole director of a

5:51:14 > 5:51:18company I set up some years back to manage a small property portfolio.

5:51:18 > 5:51:22When I changed my name and title, the process to inform companies

5:51:22 > 5:51:25House was very easy and my name was updated quickly. I noted afterwards

5:51:25 > 5:51:32however that it was in the company filings that were freely available

5:51:32 > 5:51:36on the companies House website. The document in question is a change or

5:51:36 > 5:51:39particulars for the direct form clearly states might original name

5:51:39 > 5:51:43and title and subsequently my new name and title. This very busy

5:51:43 > 5:51:47discloses my change of gender for anyone who looks at the history of

5:51:47 > 5:51:52my company, publicly outing me without my consent. The main issue I

5:51:52 > 5:51:56take with this is that of safety. In the future there will be many people

5:51:56 > 5:51:59I interact with who will have no idea of my transgender status

5:51:59 > 5:52:12because I simply will not tell them. " The potential for inadvertent

5:52:12 > 5:52:20disclosure becomes because of this section of the gender wrecking

5:52:20 > 5:52:25Schneier 2004 and of the companies act 2006. My honourable friend on

5:52:25 > 5:52:31the Treasury bench this evening will be aware that I wrote to her last

5:52:31 > 5:52:36year about this and in her response to me dated November 2016 that she

5:52:36 > 5:52:40made it live that the company registrar must make it available to

5:52:40 > 5:52:45the public all information on the public register unless it is

5:52:45 > 5:52:50specifically forbidden to do so by the companies act. The gender

5:52:50 > 5:52:54recognition act generally prohibits the publication of information held

5:52:54 > 5:52:59on a transgender person but details and circumstances under which it is

5:52:59 > 5:53:08not an offence to disclose protected information which are made by virtue

5:53:08 > 5:53:13of an enactment other than this section. The ministers letter stated

5:53:13 > 5:53:15that the government is satisfied that this applies to the disclosure

5:53:15 > 5:53:21of a director's former name. This is required to be placed on the public

5:53:21 > 5:53:25record by enactment in the companies act. The data is not considered to

5:53:25 > 5:53:29be material, excluded by public recognition under the gender

5:53:29 > 5:53:34recognition act because of the companies act." I do not disagree

5:53:34 > 5:53:37with this interpretation but as I've already said, this is an unintended

5:53:37 > 5:53:41loophole that needs to be closed which is why before the general

5:53:41 > 5:53:45election this year I produced the company 's documentation transgender

5:53:45 > 5:53:51persons bill. I referenced another part of Alex's letter which said "In

5:53:51 > 5:53:552004, the gender recognition act came into place with the clear main

5:53:55 > 5:53:59goal of protecting people who were at risk of being vulnerable and it

5:53:59 > 5:54:02was a world leading piece of legislation which I am proud to say

5:54:02 > 5:54:07came out of the United Kingdom. So what is happening now at companies

5:54:07 > 5:54:12House is entirely accidental and an unfortunate flaw in the way the GRA

5:54:12 > 5:54:162004 and the companies act 2006 interact with each other. This flaw

5:54:16 > 5:54:20is entirely against the spirit of the 2004 act and I think anyone

5:54:20 > 5:54:24would be hard pushed to argue against that. She goes on to say I

5:54:24 > 5:54:26am currently able to protect myself and it comes to my credit profile,

5:54:26 > 5:54:32tax profile, the government Gateway, I just personally think it is the

5:54:32 > 5:54:35right thing to do to force companies has to be held to the same standard.

5:54:35 > 5:54:42" My bill opposed to this House proposes that this loophole can be

5:54:42 > 5:54:49closed which would allow cancer and the people to Company 's House to

5:54:49 > 5:54:52withhold information about director's former name and that beat

5:54:52 > 5:54:58treated as protected by the 2004 act. The case of this very small

5:54:58 > 5:55:03change is compelling as such disclosure can have a profound

5:55:03 > 5:55:06effect on transgender people, particular as transition and history

5:55:06 > 5:55:10are very personal. It is something that a person should choose to share

5:55:10 > 5:55:15rather than being forced to do so by somebody else. The legal mechanism

5:55:15 > 5:55:22is not something that someone enters into lightly. Once that decision is

5:55:22 > 5:55:25made, transgender people want to be able to move on with their lives and

5:55:25 > 5:55:28to be treated with respect and to live without fear of being

5:55:28 > 5:55:33inadvertently outed or subject to violence. I am afraid to say as we

5:55:33 > 5:55:36have orally heard that violence and discrimination still occur. Since my

5:55:36 > 5:55:41previous speech to the House, the Home Office has produced updated

5:55:41 > 5:55:46statistics that show in England and Wales in 2016, there were 1248

5:55:46 > 5:55:55transgender hate crimes, up from 858 in 2015-16. This is an increase of

5:55:55 > 5:56:00over 45% which is higher than the previous yearly increase of 41%.

5:56:00 > 5:56:04Living in fear because of who you are is unacceptable in the modern

5:56:04 > 5:56:08United Kingdom and no one should have to live in fear of violence

5:56:08 > 5:56:14because of official documents that have they have filed in compliance

5:56:14 > 5:56:18with an act of Parliament. So I would like to thank those who have

5:56:18 > 5:56:21contacted me to share their views, including Alex. I would like to

5:56:21 > 5:56:27remind the House that in preparing the bill, I was contacted by other

5:56:27 > 5:56:31transgender persons, one who said "My current position is I am unable

5:56:31 > 5:56:34to start by business without running the real risk of outing myself as a

5:56:34 > 5:56:41transgender woman. Physically I want to start a business to provide Webb

5:56:41 > 5:56:44services but as I cannot yet transition I am in the unfortunate

5:56:44 > 5:56:50position where if I start the business now and then transition,

5:56:50 > 5:56:56this information would be publicly available." One accountant was told

5:56:56 > 5:57:03to resign as a director and then in role as a director with the new

5:57:03 > 5:57:07name, automatically they could close the company down and start up a new

5:57:07 > 5:57:12company with the expenses involved in that course of action. I finally

5:57:12 > 5:57:15received the following message "Are used to do IT contracting and did so

5:57:15 > 5:57:23by limited company, I changed my name and title by deed poll and at

5:57:23 > 5:57:26companies House, I have now had gender reassignment surgery and I

5:57:26 > 5:57:29will be applying for my gender recognition certificate as soon as I

5:57:29 > 5:57:33received the necessary report from the gender identity clinic. While

5:57:33 > 5:57:36this gives me protection in law, it will still be possible for people to

5:57:36 > 5:57:40find up my dead name by looking at the records of my company at

5:57:40 > 5:57:45companies House which could put me at risk if someone found out those

5:57:45 > 5:57:48details for malicious purposes." Altering the gender recognition act

5:57:48 > 5:57:53would be a simple change to make and would mean a great deal to the many

5:57:53 > 5:57:57transgender people who suffer this problem in silence. The government

5:57:57 > 5:58:01has an opportunity to close inadvertently poll and to show that

5:58:01 > 5:58:04it is committed to protecting the transgender community and allowing

5:58:04 > 5:58:09transcend the people what, if any information about the transition is

5:58:09 > 5:58:11publicly available and in what way this information is disclosed. I

5:58:11 > 5:58:17should add that if this option were to be taken, there is of course a

5:58:17 > 5:58:22way for companies House to make sure that such information is available

5:58:22 > 5:58:30to be lawful authorities who would of course have two access those

5:58:30 > 5:58:36details on appropriate request for that evidence. So I hope tonight

5:58:36 > 5:58:43that given the government amendment -- the government commitment on

5:58:43 > 5:58:49transgender issues, that they will review the gender retention act and

5:58:49 > 5:58:54I look forward to hearing the minister's view tonight.Thank you

5:58:54 > 5:58:58Madam Deputy Speaker. I would like to congratulate my right honourable

5:58:58 > 5:59:03friend for Loughborough for securing tonight's debate. On this very

5:59:03 > 5:59:06important subject. And also for the powerful and persuasive speech she

5:59:06 > 5:59:14has made in support of her argument. I recognise that she is seeking to

5:59:14 > 5:59:17protect the interests of the transgender community by ensuring

5:59:17 > 5:59:23their right to have their private information remain private. I have

5:59:23 > 5:59:26considerable sympathy with the personal accounts that she has

5:59:26 > 5:59:31shared in her speech this evening and I can only conclude that the

5:59:31 > 5:59:36examples she gives are backed up by many other people who have not

5:59:36 > 5:59:41themselves come forward. But this debate does highlight the difficult

5:59:41 > 5:59:47tension between two important principles. The right of an

5:59:47 > 5:59:51individual to have their private details remain private and not to be

5:59:51 > 5:59:56exposed against the also important need for transparency at the public

5:59:56 > 6:00:02register of companies. These rights are not easy to reconcile and ivory

6:00:02 > 6:00:09much agree with her that we should make every effort to improve the

6:00:09 > 6:00:14situation that she described in her speech. There are some important

6:00:14 > 6:00:18reasons why the records of companies must be transparent and available

6:00:18 > 6:00:23for anyone to inspect. Incorporating the company and getting it

6:00:23 > 6:00:27registered at companies House brings with it the benefit of limited

6:00:27 > 6:00:30liability to the owners and directors charged with running the

6:00:30 > 6:00:35company. And in return for that significant benefit, directors of

6:00:35 > 6:00:39companies must provide details relating to their identity am a

6:00:39 > 6:00:42residential address information and annual accounts of the company. And

6:00:42 > 6:00:47that process is anyone the ability to check business records and the

6:00:47 > 6:00:52trading history of people and businesses they are dealing with or

6:00:52 > 6:00:56proposed to enter into business with. It is right that anyone should

6:00:56 > 6:00:59be able to check a director's previous trading history or

6:00:59 > 6:01:06directorships including any past disqualifications and bankruptcies.

6:01:06 > 6:01:10And people might also want to know about their comment in previous

6:01:10 > 6:01:13failed or successful businesses as important facts to consider when

6:01:13 > 6:01:18entering into Disney's agreements. In many ways the register of

6:01:18 > 6:01:23companies is not just a list of companies with directors names, its

6:01:23 > 6:01:26real purpose is to support the functioning of limited liability and

6:01:26 > 6:01:37to enable the economy and it is that transparency that underpins its

6:01:37 > 6:01:41value and contributions. The register of companies is one of the

6:01:41 > 6:01:48most searched and interrogated databases worldwide. There were over

6:01:48 > 6:01:532 billion searches on the website in 2016 and it is also widely used by

6:01:53 > 6:01:58professional organisations, for example, credit reference agencies,

6:01:58 > 6:02:02in determining whether to loan to prospective businesses or

6:02:02 > 6:02:06professional researchers such as those engaged in transparency

6:02:06 > 6:02:11initiatives. My right honourable friend raises the important

6:02:11 > 6:02:17statutory provisions and that section 22 of the gender recognition

6:02:17 > 6:02:23act 2004 does indeed make it an offence for a person who has

6:02:23 > 6:02:28acquired protected information in an official capacity to disclose that

6:02:28 > 6:02:36information. However, as my right honourable friend stated, section 22

6:02:36 > 6:02:39brackets four provides a number of exemptions including section 20

6:02:39 > 6:02:4524-macro J which means the disclosure is in accordance with any

6:02:45 > 6:02:48provision or made by virtue of an enactment other than this section.

6:02:48 > 6:02:54So section 12 together with section 163 of the companies act 2006

6:02:54 > 6:03:00requires directors to disclose their name and any former name to the

6:03:00 > 6:03:06register of companies. Section 1085 and one week six of that act place a

6:03:06 > 6:03:13duty on the registrar to make that information and other information in

6:03:13 > 6:03:19regards to that available for public inspection. This is about the need

6:03:19 > 6:03:25for transparency that I mentioned previously. Section 1087 brackets

6:03:25 > 6:03:31one brackets K does prevent the registrar from making certain

6:03:31 > 6:03:36information available for public inspection if required by another

6:03:36 > 6:03:42enactment. However, because of the caveat in the gender recognition act

6:03:42 > 6:03:46that was mentioned by my right honourable friend, information such

6:03:46 > 6:03:50as any previous names of directors, whatever the reason currently for

6:03:50 > 6:03:56the change of name are not included in these exemptions. So the gender

6:03:56 > 6:04:00recognition act does not make it an offence, as my right honourable

6:04:00 > 6:04:04friend explained, to disclose this information where that disclosure is

6:04:04 > 6:04:09in accordance with another enactment which is the case in respect of the

6:04:09 > 6:04:15companies act 2006. This therefore applies where a transgender person

6:04:15 > 6:04:20who is a company director has changed their name. My right

6:04:20 > 6:04:23honourable friend will know that the current treasures for information

6:04:23 > 6:04:31relating to companies and their directors is in many respects for

6:04:31 > 6:04:36even more transparency than less. However, I directed nice that the

6:04:36 > 6:04:40register of companies should look to strike a light balance between the

6:04:40 > 6:04:45need for transparency and the protection of individuals and their

6:04:45 > 6:04:48private information. The currently go provisions already allow for

6:04:48 > 6:04:54certain information to be withheld from public inspection. For example,

6:04:54 > 6:04:57a director's private residential address, where it is demonstrated

6:04:57 > 6:05:00there is a risk of violence or intimidation arising from the

6:05:00 > 6:05:03activities of the company is one such.

6:05:10 > 6:05:14However, a number of honourable members have written to me, rating

6:05:14 > 6:05:19the concerns about the range of private information that is now

6:05:19 > 6:05:23publicly available and easily accessible. As a result, my

6:05:23 > 6:05:27department is considering a number of potential measures related to the

6:05:27 > 6:05:31integrity of the register of companies and the personal

6:05:31 > 6:05:35information that is available on it, and I will most certainly ensure

6:05:35 > 6:05:39that the issue raised by my right honourable friend the night will be

6:05:39 > 6:05:45considered within that work. Though I cannot commit to consider the

6:05:45 > 6:05:49issue further, I would stress that the position of the director of

6:05:49 > 6:05:55company carries with it statutory duties and accountabilities. We do

6:05:55 > 6:05:59need to fight against the creation of loopholes that would allow people

6:05:59 > 6:06:04to evade their responsibilities or conceal the previous trading history

6:06:04 > 6:06:11by changing their name of the register.Can I thank my honourable

6:06:11 > 6:06:17friend very much indeed for the way in which she is responding to my

6:06:17 > 6:06:21debate? I welcome the fact she has talked about the wider consultation

6:06:21 > 6:06:25and I would urge her and push a little further to say that what I

6:06:25 > 6:06:29have raced and it should be a part of that consultation, at least the

6:06:29 > 6:06:33gathering of use to find out the scale of the problem. Would she also

6:06:33 > 6:06:38respond or perhaps she might want to consider again as part of that

6:06:38 > 6:06:41consultation Alex's comment to me that she is able to protect herself

6:06:41 > 6:06:48when it comes to her credit profile, tax profile, Financial Conduct

6:06:48 > 6:06:53Authority register and government Gateway? All of which presumably

6:06:53 > 6:06:58help in terms of building up a profile of somebody the transparency

6:06:58 > 6:07:03of which my honourable friend has been talking about.I will certainly

6:07:03 > 6:07:08consider what my right honourable friend has said. She makes a very

6:07:08 > 6:07:12powerful case. Transparency will remain a high priority for the

6:07:12 > 6:07:16register of companies. But we must consider the arguments that my right

6:07:16 > 6:07:21honourable friend has made and I will consider, as part of our

6:07:21 > 6:07:25review, what she asks for. As mentioned by my right honourable

6:07:25 > 6:07:29friend, the government has committed to publishing this consultation

6:07:29 > 6:07:33shortly on amendments to the gender recognition process in England and

6:07:33 > 6:07:40Wales. The government also recently launched a national survey on the

6:07:40 > 6:07:46needs of the LGBT population, which has just completed receiving over

6:07:46 > 6:07:51100,000 responses. Both of these consultations will be of help in

6:07:51 > 6:07:54shedding light on the issues raised in this debate, and I will consider

6:07:54 > 6:07:59further what my right honourable friend has argued for the night in

6:07:59 > 6:08:08that process.The question is that this House do now adjourn. As many

6:08:08 > 6:08:13as are of the opinion, say "aye". To the contrary, "no". The ayes have

6:08:13 > 6:08:21it. Order, order.