20/11/2017 House of Commons


20/11/2017

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question, Gordon Marsden. --

cooperation and good humour.

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Mr Speaker, although the November

recess...

He needs to blot out the

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request for a statement. -- blurt.

To make a statement on the Student

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Loans Company.

Thank you. The

Student Loans Company's performance

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has improved year-on-year for the

past six years. SLC services account

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for around 1.8 million applications

per year. It responds to around 4.5

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million phone calls from borrowers

and has over 6 million repaying

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order to repay customers with loans

totalling more than £100 billion. In

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addition, it has delivered a range

of new products for Government on

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time and successfully. This includes

postgraduate loans and to provide

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advanced learner loans. This year,

the SLC has processed over 1.4

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million applications for student

funding. So far in this academic

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year, SLC has paid out approximately

£2.5 billion in maintenance funding

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and £2 billion in tuition fee

payments to providers. Customer

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satisfaction remains high, at around

85%. And for borrowers in repayment,

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at around 72%. It receives

complaints, Mr Speaker, from just

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0.1% of its 4.7 million customers.

SLC is of course constantly looking

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to learn lessons from what is a low

level of complaints and to use these

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complaints to improve the quality of

its services. In addition, the

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Department for Education is also

working closely with the Student

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Loans Company on a range of

initiatives that will further

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improve the user experience for

SLC's borrowers and staff

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engagement. Proposals currently

being developed include greater

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digitisation of the student loan

application and repayments processes

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and investment in more efficient SLC

systems. Following two independent

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investigations into allegations

about aspects of his management and

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leadership, the SLC has terminated

Stephen Mooney's contract as Chief

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Executive Officer of the SLC. --

Steve Lainey. Having taken into

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account the findings of these

investigations, they concluded that

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the best practice was not being

upheld by Steve Lainey initial. The

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SLC board have acted swiftly and

have instituted Peter Lerner as

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interim CEO with effect from the

27th of November. He will remain in

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post until a permanent appointment

is made. He was formerly chief

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Executive of the Institute for

apprenticeships and the skills

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funding agency. He has a long and

successful career in a number of

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senior leadership positions in the

Department for Education and partner

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organisations. I have every

confidence he will provide the drive

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and stability the Student Loans

Company requires at this time as we

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recruit a permanent chief Executive.

Although the November recess, with

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the announcement being snuck out day

as there was a resignation from the

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Cabinet. Can I ask the Minister Y in

his letter to me on the 17th of

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October, sent six weeks after I

wrote to him on the SLC, the

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minister referred to the suspension

of the chief Executive as a neutral

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act and did not imply wrongdoing,

when he was fully aware of

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allegations against Steve Lainey

engine when the Mac as is written

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reply to me. We also publish the

former 's review of the SLC given

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two months before the suspension,

where Steve Lainey was rated

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outstanding. In that report, was a

minister -- the Minister aware that

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there was a reporter said he was

making a real and positive

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difference the Student Loans Company

and was a popular leader before the

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decision was made to sack him? Will

republish the internal

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investigation, in which 5258

allegations against him were

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dismissed. So that all members can

understand the issues at the SLC. Mr

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Speaker, who appointed the

chairperson and the other three

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board members of the SLC and what

other criteria processes for those

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appointments? And you confirm that

Simon Devonshire, the board member

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who had an dismissed the appeal, is

also a member of the same venture

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capital trust?

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The lack of proper cooperation

between the SLC and HMRC has led to

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significant debt.

Can he tell us how

many overpayments there have been

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since 2015, 2016? Given this is the

situation, I have just been told the

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government has tacitly admitted

their failure in this area by saying

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that from 2019 onwards, HMRC and the

SLC will co-operate on this matter.

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It does not address the question of

Mr Lamy and the permanent secretary

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at the HMRC blaming each other on

this issue. Mr Lamy has claimed he

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had asked for updates that HMRC

would not share. Who is telling the

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truth? BBC Panorama raised issues

about private dividers were students

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are fraudulently enrolled in courses

in order to claim loans. How much

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money has been paid to students who

were subsequently declared to be

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ineligible in their last four or

five years? What mechanisms are in

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place to reclaim the money? In the

light of all this, will the

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government suspend the sale of the

future student loan book? Interest

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rate thresholds on student debt will

cost £175 million by 2020. Can he

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tell us where the money will come

from? With tens of thousands of

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graduates footing the bill for SLC

areas, what confidence can the

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Parliament have in the confidence of

this minister who is the key

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shareholder of the Student Loans

Company?

Mr Speaker, I would

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encourage the honourable member not

to denigrate the hard work of the

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dedicated public servants of the

Student Loans Company who are

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undertaking a vital task in securing

the finance which young people and

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learners in this country need to

pursue higher education. They are

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doing so in a successful way. Fewer

than 0.1% of SLC's 4.7 million

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customers complained each year. They

are delivering an important service

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and he should support them rather

than run them down. Mr Speaker, the

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honourable member asked about a

number of matters. He asked about

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the investigations that led to the

dismissal of the chief executive of

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the Student Loans Company. The

concerns were brought to the SLC

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board's attention in May and to the

attention of the Department for

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Education. We learnt about this in

May. I learn about it in May, as I

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have just said. The two

investigations were immediately set

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in motion to get to the bottom of

the allegations which the SLC board

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had received. One was led by the

government internal audit agency and

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the other was led by Sir Paul

Jenkins, formerly Treasury Solicitor

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and head of the government legal

services. They concluded that Mr

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Laney had not shown the leadership

which would be expected of someone

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in that role and accordingly the SLC

board took the decision that he

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should no longer continue in that

role and the Department for

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Education as a consequence of the

SLC's decision took the decision to

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relieve him of his responsibilities

as accounting officer of the SLC. Mr

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Speaker, the honourable member asked

about an eligible payments, some of

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which were highlighted by the

Panorama programme that came out a

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few days ago. He will be, I am sure,

interested to know that the level of

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ineligible payments made to

alternative providers has been

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sharply falling in recent years. In

fact, it has fallen by over 80%

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since 2012, 2013, from about 4% of

all payments to 0.5% of all payments

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in the 2015-16 year. This rate is

low. Of course we want to eliminate

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fraud wherever we can identify it,

but this is a low rate of ineligible

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payments to these providers. In

fact, it is a rate which is now no

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higher than the average across the

other higher education funding

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system. I would not use this as a

means of running down the new

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entrance to our higher education

system, which is something he often

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does from the dispatch box because

it cannot be used to support that

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sort of attack. This reduction in

the level of ineligible payments is

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the direct consequence of the

controls which the Department for

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Education have been putting in place

to ensure that public money is not

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abuse. Mr Speaker, we do take the

issue of overpayments extremely

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seriously and the honourable member

mentioned some of the steps we are

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taking. We do want to see close and

effective cooperation between HMRC

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and SLC so that we avoid the risk to

the extent we possibly can of

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students overpaying when they

repaid. I understand that the

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Chancellor of the Exchequer will be

considering this issue further in

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the budget just later this week so

he might want to wait a bit to see

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what is in the contents of the

budget for further details. We are

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committed to improving the interface

between HMRC and the Student Loans

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Company. I would remind him that we

do ensure that all borrowers as they

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enter the last two years of their

repayments are given the opportunity

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to move to a direct debit system of

repayments and eliminate almost all

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risk altogether of repayment.

Mr

Robert Halfon. Thank you, Mr

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Speaker. I welcome the efforts the

Minister is taking to reform the

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Student Loans Company and he will

know that there is a value for money

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enquiry into universities. As well

as looking at the management of the

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student loan company, can he use

this opportunity to look at reducing

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the rate of interest rates for

students which is much higher than

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other countries in the developed

world?

Well, we keep all aspects of

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our student finance system under

review to ensure it is fair and

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effective, it is meeting our core

objectives of removing financial

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barriers to access, funding our

university system fairly and sharing

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the cost of doing so equally between

us and the taxpayer. It is to be

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compared with unsecured, personal

borrowings. If you look at what a

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Bank of England reference rate would

be for an unsecured, personal

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borrowing, it would be well over 7%.

This is a unique product written off

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after 30 years. It is only entering

the repayment period when someone is

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earning more than £25,000. It is a

unique product and it is not easy to

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compare any element of it with

offerings from elsewhere in the

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commercial sector.

In recent years

the student loan company has been

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plagued by mishaps, complaints of

inefficient bureaucracy and poor

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customer service. The latest SLC

sell-off is a problem. Many

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graduates received letters telling

them they must pay even though their

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earnings had not yet reached

repayment level. Can the Minister

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confirm that they will not siphon

loans off to a third party? Devolved

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administrations are shareholders in

the SLC. Can the Minister outlined

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the discussion he has had with

fellow shareholders on the

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circumstances of the dismissal of

the Chief Executive of that

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committee? Over 1400 people are

employed by the SLC in Glasgow. Can

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the government confirmed that any

shake-up of practices will not

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involve a plan to move any part of

the company from Glasgow and that

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all employees will have an

opportunity to be consulted in any

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future discussions? At a time where

graduates are paying up to 6.1% in

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low interest, student debt in

England has nearly trebled compared

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to Scotland. Does the Minister not

think that while the SLC could use a

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radical shake-up and reform, his

policies could as well. The budget

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is round the corner, so while the

minister works to clear up the

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managerial problems, why does he not

clear up the mess of this policy and

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stop saddling English students with

a millstone of debt around their

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necks?

I am not sure we need lessons

from Scotland on our higher

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education policy. Our higher

education policies have resulted in

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levels of access for people from

disadvantaged backgrounds that

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should be the envy of members on

that bench rather than a source of

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criticism of them. The honourable

member asks about Glasgow and the

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work that SLC staff to front its

location in Glasgow. Of course that

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is valued and we support everything

they are doing in ensuring the SLC

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continues to perform at the level we

wanted to perform as an important

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agency of the Department for

Education. It is in its sixth

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consecutive year of improvement in

terms of its operational metrics and

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we want that to continue and I am

sure Glasgow will play its part in

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that.

Would the Minister like to

explain what role the new office for

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students will play in this and hope

it will help?

The new office for

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students comes into existence

progressively from January one 2018

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onwards, with its full operational

existence commencing in April of

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2018. The Student Loans Company has

its own statutory existence

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independent of that of the office

for students and it will continue to

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carry out the vital function we need

to perform in ensuring loans we make

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available to remove barriers to

access to higher education continued

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to be made available seamlessly to

students in need of them.

Looking at

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all these very academic colleagues

and my eye focuses on Doctor Roberta

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Blackman Woods.

Thank you, Mr

Speaker. I hope the Minister

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appreciates that problems at the SLC

go beyond the actions or lack of

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them of the previous chief

executive. The Jenkins report

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pointed to bad behaviour amongst the

whole executive leadership team.

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Could he tell us what that bad

behaviour is? How long has he known

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about it? What action is being taken

to stop it?

The SLC board has taken

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prompt action to address

shortcomings in the leadership of

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the student loan company that were

identified in the two investigations

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that I mentioned. That includes the

report by Sir Paul Jenkins. I have

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every confidence in the new chief

executive we have put in place,

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Peter Lerner, who has worked

successfully across a range of DFE

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partnership organisations, will do

the job that we need him to do.

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Jeremy Quinn.

Picking up on the

minister's reply about the office of

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students, what role does he see it

play in value for money?

Of course

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value for money is a critical part

of our reforms and have been since

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the green paper and a white paper

and the higher education and

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research act. We want them to hold

the universities to account for the

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income they receive from the SLC and

to ensure students are made aware of

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where the best teaching is available

across the system and were really

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good outcomes are emanating from. We

want that to be clearer to students

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so they can make informed choices

about where to study so the

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universities can be held to account

for the use of public resources.

And

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external audit into the SLC found it

was in the bottom of all

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organisations on 36 criteria against

which it was assessed. Can the

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Minister tell us what these criteria

were?

I cannot tell him the precise

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criteria. What I can tell him is

this is an organisation which has

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steadily improved from the one we

inherited as a coalition government

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back in 2010. It is in its sixth

consecutive year of performance

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improvement and that is something we

should be celebrating. No one is

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denying all organisations have room

for improvement. We want to work

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with the SLC to ensure that steps

are taken to improve the interface

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between HMRC and itself.

Does the

Minister agree with me that it is

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imperative that university students

get value for money, but also that

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they are able to see where their

money goes and both of these will be

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promoted by the office for students

that will launch on January one?

I

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am happy to confirm that. We are

consulting on the new regulatory

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framework at the office for students

will use. One of the things we are

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consulting on is how we can make it

clearer to students how their

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tuition fee income is being used

within institutions so they can be

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confident and government can be

confident and it is supporting the

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core activities we intended to be

useful, namely teaching, producing

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world-class research and helping

students go on to get great outcomes

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in the of work.

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I have huge sympathy for him, not

least because he has such a

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fantastic something, -- surname. But

I have also been on his shows. Given

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the failure colleagues validity of

the SLC, it is important the House

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understands how often the Minister

has met with the senior team. Would

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he put out a list of these meetings

so the appropriate enquiries can be

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made?

I would be happy to do that.

But I want to remind the right

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honourable member that this is a

successful organisation in many ways

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and we should not denigrated.

Members of doing a massive

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disservice to public servants

working hard in Darlington and

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Glasgow to ensure students are

getting access to the finance they

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need to undertake higher education.

To have an organisation with 4.7

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million customers and to receive

complaints each year from less than

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zero by 1% of them is an

achievement. -- 0.1%. We should not

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run this organisation down.

Could I

ask my noble friend what he

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considers to be the most significant

change brought about by the recent

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higher education and research act.

That question is not put together

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adjacent to the matter of the

management and operation of the

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Student Loans Company. If I be very

polite to the honourable gentleman,

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I would say his enquiry is, at best,

tangential. It is at best a nodding

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acquaintance of the company but no

better than that. The Minister is a

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versatile dextrous fellow and I am

sure he can handle the matter

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eloquently.

Students receive funding indirectly

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from the Student Loans Company and

universities receive funding

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directly from it as well. It is

vital that there is a strong

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relationship and students feel that

they are getting value for money

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from the funding it provides. The

spirit of the higher education and

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research act was to promote value

for money in our system and ensure

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universities are delivering great

teaching and research to students.

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There you are.

The honourable

gentleman is not known as a

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considerable boffin from nothing.

Thank you very much indeed.

Can I

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Asuka Minister if he addresses a

question about immigration, no-one

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on this side will denigrate the

Student Loans Company. In fact, if

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you put the Student Loans Company

and the good services done for so

0:22:300:22:33

many students and parents, have to

say, and compare that with our

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commercial bank sector, probably

where so many of them should have

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actually gone to prison, this

Student Loans Company has done very

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well indeed. What is there some

secret agenda? Because this

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Government is about to sell off £4

billion of student loans. And who is

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leading that consortium? British

banks, led by Barclays.

I thank the

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honourable member for acknowledging

the good work that SLC does. And I

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think it is important that we

recognise that. The sale of the

0:23:070:23:13

string loan because a policy which

of course the last Labour Government

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made possible with the passage of

the 2008 sailors to loans act. --

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sale of. There is considerable cross

party recognition of the importance

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of the sustainability of public

finances and the sale of student

0:23:290:23:33

loan books, which the last Labour

Government made possible, is one

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which is Government is quite

prepared to continue.

When we talk

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about student loans and access to

universities, we often quite rightly

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talk about disadvantaged students.

Does my right honourable, my

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honourable friend recognise the

current system has really proved and

0:23:480:23:52

created opportunities for those

students?

She's absolutely right. It

0:23:520:24:00

is the income contingent repayment

student loans system that has made

0:24:000:24:06

possible a huge expansion of access

to higher education. I have said the

0:24:060:24:12

statistics several days before but

students from this rant is back then

0:24:120:24:17

is our 43% more likely to do to go

to university and higher education

0:24:170:24:22

than they were in 2009 2010. That is

a direct result of successive

0:24:220:24:26

governments having decided to share

the cost of higher education

0:24:260:24:30

equitably between students and the

general taxpayer.

Did the Minister

0:24:300:24:35

have another go at the question put

to him as to why exactly students

0:24:350:24:40

have to pay such a high rate of

interest compared to two lives in

0:24:400:24:45

other countries but you might --

compared to students in other

0:24:450:24:52

countries?

Everyone here isn't the

impression that students are paying

0:24:520:24:59

6% interest rate. All their- 5% of

students in the repayment period pay

0:24:590:25:03

rates of about 6.1%. So of course

most students in the repayment

0:25:030:25:09

period are being somewhere between

RPI and RPI plus three, which takes

0:25:090:25:12

us from RPI Rathlin Island three all

the way to RPI plus three, which

0:25:120:25:17

comes to around 6.1. It is a

spectrum of interest rates that she

0:25:170:25:21

lives are paying. Only students

earning more than £42,000 in the

0:25:210:25:25

repayment period will be paying that

high rate of interest, which I think

0:25:250:25:29

has got the imagination will stop

that is roughly from the statistics

0:25:290:25:35

I have between 2-5% of students.

Notwithstanding my honourable

0:25:350:25:41

friend's LL answer, is it not the

case, however, that far fewer people

0:25:410:25:47

from deprived backgrounds go to

university now? Or at least, that is

0:25:470:25:53

what I have heard from the party

opposite? Have they got that wrong?

0:25:530:25:59

Yes, Mr Speaker, am I -- I am afraid

they have got it wrong. The rate at

0:25:590:26:07

which students from the most

disadvantaged backgrounds are going

0:26:070:26:10

to university has jumped sharply in

the last six or seven years. As I

0:26:100:26:14

just said, they are 43% more likely

to go into higher education now than

0:26:140:26:21

they were in 2009 and 2010.

As the

mother of a daughter with the

0:26:210:26:27

student loan, I was appalled at the

BBC reports of evidence that

0:26:270:26:32

education agents were recruiting

Bulgar students to private colleges

0:26:320:26:35

to defraud the taxpayer of thousands

of student loans. Can I ask the

0:26:350:26:41

Minister what different departments

are doing to detect bogus students

0:26:410:26:46

and will be Government legislate,

for instance, to ban essay mills?

0:26:460:26:53

Regarding allegations of fraud from

Panorama in relation to student

0:26:530:26:58

loans at three private providers,

the department takes allegations of

0:26:580:27:03

fraud and malpractice seriously and

we are grateful to Pamela for

0:27:030:27:05

bringing those allegations to our

attention. -- Panorama. They devalue

0:27:050:27:11

the work of honest students. Working

with stakeholders, including the

0:27:110:27:16

City of London Police, we will take

robust action we abuse is evident.

0:27:160:27:20

But it is vital we remember that the

level of ineligible payments to such

0:27:200:27:25

providers is actually very low and

about 0.5% of all payments to

0:27:250:27:30

providers. It has come down sharply

from 4% in 2012 and 2013 and it is

0:27:300:27:36

now higher than the rate of

ineligible payments across the

0:27:360:27:41

publicly funded world of higher

education.

The Minister will agree

0:27:410:27:50

that one of the key ways of judging

the success of the student loans

0:27:500:27:52

finance system is there number of

people from disadvantaged

0:27:520:27:55

backgrounds going to university.

What role does CC access agreements

0:27:550:27:59

in particular playing alongside the

support provided by the SLC?

Access

0:27:590:28:06

agreements play a vital part. The

amount of funding flowing through

0:28:060:28:09

access agreements to support

widening participation has doubled

0:28:090:28:14

over recent years. And now stands at

well over 800 million pounds per

0:28:140:28:19

year. These access agreements are

really driving progress in

0:28:190:28:24

participation. The rate in which

people from the most disadvantaged

0:28:240:28:30

20% of households are accessing

higher education has really jump. It

0:28:300:28:33

now stands at well over 20%, over

20% of that particular group.

Given

0:28:330:28:42

that Steve Lamey has criticised the

lack of support from the Department

0:28:420:28:46

for Education and this House is at

the Rowenna Davies media reports

0:28:460:28:49

dating a picture of a Student Loans

Company leg bye bullying, low morale

0:28:490:28:53

and high sickness rates, is not in

the public interest that the Jenkins

0:28:530:28:56

report is put into the public

domain, not least so the members of

0:28:560:29:01

this House can scrutinise the

performance of the Student Loans

0:29:010:29:04

Company but also the support

provided by the Department for

0:29:040:29:06

Education?

This is an employment

matter between Steve Lamey and the

0:29:060:29:15

SLC. The Department for Education as

taking quick action in response to

0:29:150:29:19

the to sit -- the two reports and

suspended Mr Lamey's role as

0:29:190:29:28

accounting officer. It is taking

quick steps to put in place new

0:29:280:29:32

manager in the form of Peter Lonard

to take SLC forward over the coming

0:29:320:29:35

months and years. -- Peter Lerner.

I

am currently student loan. But what

0:29:350:29:48

involvement does the Minister see

the new office for students having

0:29:480:29:53

end the role of appointing a new

chief Executive?

He is a good

0:29:530:30:00

advertisement for the student loans

Company. The office for students

0:30:000:30:07

will not have an... A direct role in

the appointment of a new Chief

0:30:070:30:14

Executive of the Student Loans

Company. That will be a matter for

0:30:140:30:17

the board of the Student Loans

Company and it is a ministerial

0:30:170:30:19

appointment as well.

The

incompetence is of the Student Loans

0:30:190:30:24

Company range from scaremongering

fake debt collection letters they

0:30:240:30:31

wrote to the predicament of my

constituents. Isn't it apparent that

0:30:310:30:40

by exposing it is a mess, where 50%

of calls were mishandled at the peak

0:30:400:30:47

period, Steve Lamey was dismissed

for telling the truth.

Mr Lamey did

0:30:470:30:53

not live up to the standards with

which the SLC board felt were

0:30:530:30:57

required for the role and they took

the action to dismiss him. The

0:30:570:31:02

Department for Education followed on

by removing his function as

0:31:020:31:05

accounting officer. We want the SLC

to continue to be highly performing

0:31:050:31:10

organisation and we should remember

that overall it is a success

0:31:100:31:14

organisation was just 0.1% of its

customers complaining. Many private

0:31:140:31:21

sector organisations would end their

-- in the record like that.

In his

0:31:210:31:28

initial reply, he further the van

Alun revelation last week. Is he

0:31:280:31:34

aware of any Welsh institutions

being caught up in fraudulent

0:31:340:31:36

activity and what discussions as he

had with the Welsh Government?

Mr

0:31:360:31:40

Speaker, I am not personally aware

of any such allegations. That would

0:31:400:31:44

be a matter for the Welsh funding

agency and Welsh regulatory

0:31:440:31:51

authorities. If the honourable

member is aware of any, he should

0:31:510:31:53

not lose any time in relaying his

concerns to the appropriate body.

0:31:530:32:00

Chaos in the Student Loans Company

adds insult to injury to those

0:32:000:32:02

paying off these huge debts on

graduation. It constituents into

0:32:020:32:06

senior last Friday, bringing with

him his student loans company

0:32:060:32:09

statement. He is a paramedic doing

important, highly skilled work for

0:32:090:32:13

the emergency services. He completed

his training with over £20,000 of

0:32:130:32:16

debt. He has paid off £1084 since

April 2016 but during the same

0:32:160:32:23

period, the company has applied £870

interest. He said to me, no wonder

0:32:230:32:28

graduates attempt to leave the

country. What would the Minister

0:32:280:32:30

said to him?

Mr Speaker, we want the

student and repayment experience to

0:32:300:32:38

be a simple and smooth and effective

as possible. It is striking that the

0:32:380:32:44

level of complaints are low. Of

course there will be complaints like

0:32:440:32:50

our constituent made to her. She is

right to raise them. We want to

0:32:500:32:53

learn from all student experience

and the SLC does learn from the

0:32:530:32:57

relatively few complaints that it

gets. But it is important that we do

0:32:570:33:00

so.

I have been contacted by Leeds

University union of many cases of

0:33:000:33:09

overpayment. One person was told he

could not get another loans. Another

0:33:090:33:18

was told to do not meet residency

requirements. The format was

0:33:180:33:21

demanded. -- filament. How

Christians be treated fairly when

0:33:210:33:27

the SLC makes mistakes with students

very deep in debt?

We want all

0:33:270:33:33

students in repayments to be treated

fairly by this turn loans company

0:33:330:33:36

and we take the issue of

overpayments particularly seriously.

0:33:360:33:41

As I mentioned already, in response

to the honourable member on the

0:33:410:33:43

front bench, we can expect to hear

more of this particular feeling of

0:33:430:33:48

overpayments and the interaction of

the Student Loans Company and HMRC

0:33:480:33:52

in a couple days' time for the

budget.

The Minister seems very

0:33:520:34:00

complacent about the level of fraud.

Peter Lilley airport -- economic

0:34:000:34:07

report the amount of fraud known to

us. I is nature, people are carried

0:34:070:34:11

fraud and devious.

0:34:110:34:15

What action did he take in response

to what was exposed by the Panorama

0:34:160:34:20

programme?

Mr Speaker, he is of

course right. The nature of fraud is

0:34:200:34:27

that you only really have a sighting

shot at understanding the level of

0:34:270:34:33

fraud in any system. What we have to

look at is comparable levels of

0:34:330:34:37

ineligible payments across different

types of provider. As I said, we do

0:34:370:34:41

not now seen a higher level of fraud

to the so-called alternative

0:34:410:34:44

providers within the so call --

so-called providers.

0:34:440:34:51

Last Thursday I met with senior NHS

leaders who told me there was a

0:34:590:35:04

growing desperation to have our

senior NHS professionals. Given that

0:35:040:35:08

all these people will have to pay

all the money back, I want to give

0:35:080:35:13

the Minister another chance to again

look at the interest rate payments

0:35:130:35:16

and the fact they will have to start

paying interest and accumulating

0:35:160:35:22

interest before they graduate.

This

is a heavily subsidised student loan

0:35:220:35:27

product overall. About 45% of loans

are consciously written off by

0:35:270:35:34

government as a deliberate

investment in the skills base of

0:35:340:35:36

this country. We want there to be no

financial barriers to access and

0:35:360:35:41

that means we do make this money

available under a favourable terms.

0:35:410:35:46

The interest rate is a means of

ensuring that those graduates who go

0:35:460:35:51

on to have higher lifetime earnings

than average make a contribution to

0:35:510:35:55

the overall cost and the overall

sustainability of higher education

0:35:550:36:00

and ensuring it continues to drive

access and widen participation

0:36:000:36:04

systematically across the piece.

Dennis Skinner.

Is the Minister

0:36:040:36:10

where it is not subsidised enough?

There is only one solution to this

0:36:100:36:15

and it stares you in the face every

time he opens his mouth. Let's have

0:36:150:36:20

a free education like we used to

have from the cradle to the grave.

0:36:200:36:27

Mr Speaker, the thing is that our

system of student finances enable

0:36:270:36:31

far more people to go to university

than the kind of system which he is

0:36:310:36:36

advocating. Mr Speaker, in the 1950s

and 1960s when others in this house

0:36:360:36:44

were thinking of whether or not to

go to university, a far smaller

0:36:440:36:49

proportion of each cohort of 18-19

-year-olds was given the chance to

0:36:490:36:54

go. We are now in a situation where

18 and 19-year-olds are almost 46%

0:36:540:37:00

of them getting a chance to go to

university and that is a world away

0:37:000:37:04

from what it was when we had an

entirely state funded system of

0:37:040:37:11

higher education that meant it was

just the preserve of a narrow elite.

0:37:110:37:19

Order. We do have a statement, but

if the honourable gentleman is in a

0:37:190:37:30

state of uncontrollable

perturbation, I will take it now.

0:37:300:37:33

You may not be aware but in the

other place this afternoon Minister

0:37:330:37:40

in the Department for exiting the

European Union has come to give a

0:37:400:37:44

specific statement to correct

something he said about Article 50

0:37:440:37:48

and whether this could or could not

be revoked. Indeed today, the Lord

0:37:480:37:55

has come into the House of Lords and

said, for the avoidance of any doubt

0:37:550:38:00

the Supreme Court did not rule on

the legal position regarding its

0:38:000:38:04

irreversibility. Mr Speaker, this is

relevant because we are about to

0:38:040:38:08

start the EU withdrawal bill at

committee stage proceedings tomorrow

0:38:080:38:12

and it is very important that

everybody recognises that it is

0:38:120:38:17

possible for Article 50 to be

revoked. The government not

0:38:170:38:24

contradicting that, it may be

government policy not to revoke

0:38:240:38:28

Article 50, but I wonder whether you

had had noticed that if this

0:38:280:38:32

statement has been made in the other

place whether the minister will also

0:38:320:38:36

come and clarify this in the House

of commons?

I am grateful to the

0:38:360:38:41

honourable gentleman for his point

of order. In short, I have received

0:38:410:38:45

no notification any minister intends

to come to the House to make a

0:38:450:38:49

statement on that matter. But what I

can say to the honourable gentleman

0:38:490:38:53

is that if an error is made in the

other place, it can be corrected

0:38:530:38:58

only in the other place. The

requirement for correction does not

0:38:580:39:04

span the two houses. However, the

honourable gentleman is an eager

0:39:040:39:09

beaver and if, as these matters are

broached in this house in the

0:39:090:39:14

committee stage, the honourable

gentleman if he wishes to leap to

0:39:140:39:19

his feet with the athleticism for

which he is renowned in all parts of

0:39:190:39:23

the House to challenge the Minister

to confirm the veracity of the

0:39:230:39:27

correction, it is open to them to do

so. Knowing the honourable gentleman

0:39:270:39:31

as I do I feel sure he will be in

this place and ready to leap at the

0:39:310:39:37

first opportunity. If there are no

further points of order, we come now

0:39:370:39:42

to the statement. Minister of State

for the Middle East and North

0:39:420:39:48

Africa.

Minister Alistair Burt.

Thank you, Mr Speaker. With

0:39:480:39:55

permission I would like to make a

statement to the House on the

0:39:550:39:59

humanitarian and political situation

in Yemen and the implications of the

0:39:590:40:03

conflict for regional security. Her

Majesty's government remains deeply

0:40:030:40:08

concerned by the humanitarian

situation in Yemen and the impact

0:40:080:40:11

recent restrictions are having on

what was already the worst

0:40:110:40:15

humanitarian crisis in the world and

largest ever cholera outbreak. We

0:40:150:40:19

recognise the risk of a severe

deterioration of the humanitarian

0:40:190:40:24

situation if restrictions are not

quickly removed and call on all

0:40:240:40:28

parties to ensure immediate access

to commercial and humanitarian

0:40:280:40:31

supplies to all Yemen's land, air

and sea ports. But we should be

0:40:310:40:38

clear about the reality of the

conflict in Yemen. The Saudi led

0:40:380:40:43

coalition launched a military

intervention after a rebel

0:40:430:40:45

insurgency took the capital by force

and overthrew the legitimate

0:40:450:40:50

government of Yemen as recognised by

the UN Security Council. Ungoverned

0:40:500:40:54

spaces in Yemen are being used by

terrorist groups to launch attacks

0:40:540:40:59

against regional countries,

international shipping lanes and the

0:40:590:41:03

Yemeni people. As the Foreign

Secretary has made clear, we

0:41:030:41:06

strongly condemn the attempted

missile attack against Riyadh on the

0:41:060:41:11

4th of November. This attack, which

has been claimed by the Hutus,

0:41:110:41:15

deliberately targets a civilian area

and was intercepted. The UK can say

0:41:150:41:27

that we are wanting to support the

Saudi military. I understand that

0:41:270:41:42

the UN team is currently visiting

Riyadh to investigate reports. It is

0:41:420:41:48

essential the UN conducts a thorough

investigation. The UK stands ready

0:41:480:41:52

to share its expertise to support

this process. But we recognise those

0:41:520:41:56

who suffer most in this conflict are

the people of Yemen. We understand

0:41:560:42:01

why the Saudi led coalition felt

obliged to temporarily close Yemen's

0:42:010:42:07

ports and airports in order to

strengthen enforcement of the UN

0:42:070:42:10

mandated arms embargo. It is

critical international efforts to

0:42:100:42:15

disrupt illicit weapons flows are

strengthened, but at the same time

0:42:150:42:22

it is vital that commercial and

humanitarian supplies of food, fuel

0:42:220:42:24

and medicine are able to reach

vulnerable Yemeni people,

0:42:240:42:28

particularly in the North West 70%

of those live. Even before the

0:42:280:42:33

current restrictions, 21 million

people were already in need of

0:42:330:42:38

humanitarian assistance and 7

million worst single step away from

0:42:380:42:41

famine. 90% of food is imported and

three quarters of that come via the

0:42:410:42:47

porous and no other pause in Yemen

have the capacity to make up the

0:42:470:42:50

shortfall. Our partners in Yemen are

already reporting that water and

0:42:500:42:55

sewage systems in major cities have

stopped operating because of a lack

0:42:550:43:00

of fuel. Millions no longer have

access to clean water and sanitation

0:43:000:43:04

in a country suffering from the

worst cholera outbreak in modern

0:43:040:43:09

times. The restrictions on access

for commercial and Unitarian

0:43:090:43:13

assistance risk making the situation

immeasurably worse. We have heard

0:43:130:43:19

the UN's stark warnings about the

risk of famine. We call on all

0:43:190:43:24

parties to ensure immediate access

for commercial and humanitarian

0:43:240:43:28

supplies to avert the threat of

starvation and disease faced by

0:43:280:43:32

millions. We also call for the

immediate reopening of the port and

0:43:320:43:37

the resumption of UN flights into

Aung San Suu Kyi and aid in

0:43:370:43:41

airports. The Foreign Office

statement on the 15th of November

0:43:410:43:44

made clear restrictions on

humanitarian flights are causing

0:43:440:43:50

problems, including UK nationals who

wish to enter or exit the country.

0:43:500:43:54

We have been urgently and

proactively seeking a resolution of

0:43:540:43:59

this situation. Our ambassador in

Riyadh has been infrequently contact

0:43:590:44:03

with the Saudi minister and the

Foreign Secretary has discussed the

0:44:030:44:07

situation in Yemen with the crown

prince with whom we have emphasised

0:44:070:44:10

the urgency of addressing the worst

of the humanitarian crisis. The

0:44:100:44:18

Secretary of State for International

Development has spoken to the UN

0:44:180:44:21

Secretary General and the

undersecretary general since her

0:44:210:44:26

appointment on the 9th of November

about the situation in Yemen. We are

0:44:260:44:31

continuing to work closely with

other regional and international

0:44:310:44:34

partners, including the UN. On the

18th of November the Foreign

0:44:340:44:39

Secretary spoke to the UN Secretary

General. Central to this discussion

0:44:390:44:43

was how the security concerns of

Saudi Arabia can be addressed to

0:44:430:44:47

enable these restrictions to be

lifted. It is important the UN and

0:44:470:44:51

Saudi Arabia enter a meaningful and

constructive dialogue. We will

0:44:510:44:56

continue to support the people of

Yemen through the provision of

0:44:560:45:00

life-saving humanitarian supplies.

The UK is the fourth-largest

0:45:000:45:04

humanitarian donor to Yemen and the

second-largest through the UN

0:45:040:45:10

appeal, committing £155 million to

Yemen for 2017-18. UK aid has

0:45:100:45:16

provided food to almost 2 million

people and clean water to over 1

0:45:160:45:20

million more. The only way to bring

long-term stability is through

0:45:200:45:25

political solution and that is why

peace talks remain of most

0:45:250:45:32

importance. The UK continues to play

a leading role in diplomatic efforts

0:45:320:45:38

to find a peaceful solution, this

includes bringing together key

0:45:380:45:42

international actors, including the

US, Saudi Arabia, the Emirates and

0:45:420:45:47

allies. We intend to convene another

such meeting shortly. It is that we

0:45:470:45:53

work together to refocus the

political track. The United Kingdom

0:45:530:45:58

will play a leading role in Yemen

through the UN. In June we proposed

0:45:580:46:02

and supported the UN Security

Council presidential statement which

0:46:020:46:07

expressed deep concern about the

humanitarian statement in Yemen. It

0:46:070:46:10

called for an end to the fighting, a

return to peace talks and stressed

0:46:100:46:16

the importance of unhindered

humanitarian access. It is vital the

0:46:160:46:20

words of the texts are converted

into action. The international

0:46:200:46:25

community's demands must be

respected.

Thank you, Mr Speaker. I

0:46:250:46:32

am standing in today for my right

honourable friend the Shadow Foreign

0:46:320:46:36

Secretary who has a child in

hospital. Also, Mr Speaker, as we

0:46:360:46:40

discussed today the human cost of

one seemingly intractable conflict I

0:46:400:46:45

am sure the whole house will join me

in commemorating the 100th

0:46:450:46:49

anniversary of the Battle of Iraq's.

I visited the tunnels last week and

0:46:490:46:57

in saluting the service of the Royal

Tank Regiment for whom this day

0:46:570:47:02

remains rightly sacred. Mr Speaker,

I thank the Minister of State for

0:47:020:47:07

advance sight of his statement. I

will not address all the points he

0:47:070:47:11

has made at this stage given there

may be another opportunity to do so

0:47:110:47:16

later in today's proceedings. For

the time being I wish to address the

0:47:160:47:23

escalating matter of the urgent

crisis in Yemen. On that point the

0:47:230:47:28

Minister of State has joined a long

line of Foreign Office ministers who

0:47:280:47:31

have come to this house since 2015

and have told us time after time

0:47:310:47:36

they are doing everything they can

to tackle the humanitarian crisis in

0:47:360:47:40

Yemen and to limit civilian

casualties. Yet time after time,

0:47:400:47:45

whatever the government's good

intentions, they humanitarian crisis

0:47:450:47:49

keeps getting worse and worse and

the civilian death toll continues

0:47:490:47:53

rising ever higher. Now we face a

dramatic escalation of that crisis

0:47:530:48:00

with millions of lives in even more

immediate danger. I am afraid that

0:48:000:48:06

more good intentions on the part of

the government will simply not cut

0:48:060:48:11

it this time. Instead we need urgent

action. We are all familiar with

0:48:110:48:16

recent developments as summarised by

the Minister of State. The Saudis

0:48:160:48:21

have reacted with understandable

anger to the firing of a ballistic

0:48:210:48:24

missile at Riyadh, an act that all

of us on this side of the House

0:48:240:48:29

unequivocally condemn in the same

way that we have condemned all the

0:48:290:48:34

thousands of Saudi air strikes

against civilian targets inside

0:48:340:48:36

Yemen. Following the defeat missile

strike, the Saudis strengthened

0:48:360:48:43

their blockade of all rebel held

areas of Yemen and as a result what

0:48:430:48:48

little supplies their worth of food,

medicine and other humanitarian

0:48:480:48:53

goods have now grown to a halt.

Millions of children who were

0:48:530:48:58

already facing severe malnutrition,

a cholera epidemic, an outbreak of

0:48:580:49:05

diphtheria, have had their very last

lifeline cut off. Let me quote this

0:49:050:49:09

weekend was a joint statement by the

world health programme, the World

0:49:090:49:14

Food Programme and Unicef. They say

the tightening of the blockade,

0:49:140:49:19

quote, is making an already

catastrophic situation far worse.

0:49:190:49:24

They say the supplies the Saudis are

blocking are essential to staving

0:49:240:49:29

off disease and starvation and

without them untold thousands of

0:49:290:49:33

innocent victims will die. They

estimate if nothing is done over the

0:49:330:49:39

coming months, 150,000 already

malnourished children could starve

0:49:390:49:42

to death. They conclude, quote, to

deprive his many from the basic

0:49:420:49:51

means of survival is an

unconscionable act and a violation

0:49:510:49:55

of humanitarian principles and law.

0:49:550:50:03

The Minister of State says he shares

those concerns. But at what point

0:50:030:50:09

will he admit that strategy isn't

working? At what point will he

0:50:090:50:13

warned the Saudis that Britain will

withdraw its support if they carry

0:50:130:50:17

on with this blockade? And at what

point do we say this is no longer a

0:50:170:50:22

question of diplomatic persuasion

but a matter of international law?

0:50:220:50:28

International humanitarian law is

clear Mr Speaker, and Britain's

0:50:280:50:34

manual on the armed conflict, saying

that the civil population cannot be

0:50:340:50:43

used as a weapon of war. "The

Establishment of a blockade is

0:50:430:50:48

prohibited if the damage to the

civil population is excessive in

0:50:480:50:52

relation to the military advantage

and if the are deprived of things

0:50:520:51:03

essential for their survival, the

blockading party must provide for

0:51:030:51:06

free passage of such essential

supplies." So Mr Speaker, I have to

0:51:060:51:12

ask the Minister of State, if the

Saudis continue to enforce its

0:51:120:51:16

blockade in its current form and

deny humanitarian access, will it be

0:51:160:51:21

the judgment of this government that

they are in breach of international

0:51:210:51:26

law and if so, will his government

suspended the sale of British arms

0:51:260:51:31

that are being used to enforce that

blockade? Mr Speaker, the truth is

0:51:310:51:36

that this government has invested

considerable political capital in

0:51:360:51:42

its relationship with Saudi Arabia.

It has championed the cramping, the

0:51:420:51:49

architect of the conflict in Yemen

and the blockade. If that diplomatic

0:51:490:51:55

strategy has been worth anything,

now is the time to prove it. Now is

0:51:550:52:00

the time for the government to show

we can have influence and impact on

0:52:000:52:04

the Saudis and persuade them that as

a matter of urgency they should open

0:52:040:52:08

up the ports to humanitarian

supplies and bring relief to the

0:52:080:52:13

millions of children facing

starvation and disease. If the

0:52:130:52:16

government cannot achieve that Mr

Speaker then it is time to change

0:52:160:52:19

their approach.

Thank you Mr Speaker

and can I thank the honourable

0:52:190:52:27

gentleman for his comments and a

large part of it with which I would

0:52:270:52:32

not disagree. Can I start by passing

on the good wishes from the benches

0:52:320:52:36

to the Right Honourable Lady and

trust that all is well with her

0:52:360:52:40

child. And also to recognise what

the honourable gentleman said in

0:52:400:52:46

relation to the First World War

battle, we have seen pictures of the

0:52:460:52:50

tanks yesterday which brought a

smile to many hearts, thanks for

0:52:500:52:54

reminding the House about that. The

honourable gentleman was right to

0:52:540:53:01

recognise the frustrations in terms

of the conflict and the actions to

0:53:010:53:06

bring it to an end are not solely in

the power of the United Kingdom

0:53:060:53:11

government. We have to work with

partners to achieve that. I set out

0:53:110:53:16

what we have been seeking to do ever

since it became clear that the

0:53:160:53:21

conflict was becoming a matter that

would require political negotiation

0:53:210:53:27

and not a military solution, to

bring the parties together and find

0:53:270:53:30

an answer to a conflict that has

already taken too many lives but is

0:53:300:53:35

about two sides. There is very

little attention paid to the

0:53:350:53:43

activities of those on the other

side and those who have been

0:53:430:53:46

involved in human rights abuses on

their side, it does take two sides.

0:53:460:53:52

Arn Basta in Yemen -- our ambassador

in Yemen, we wish to resolve the

0:53:520:54:07

humanitarian issues we are solving

about -- talking about. I do not

0:54:070:54:12

quibble with the concerns raised by

agencies, I am in touch with the

0:54:120:54:16

world food programme, we know they

have warned us of the severity of

0:54:160:54:23

the problems faced if the

restrictions are not eased. Where I

0:54:230:54:31

would challenge the honourable

gentleman and put a different

0:54:310:54:33

complexion, he speaks about us

continuing to make representations

0:54:330:54:40

and a political solution of what

happens if it doesn't work, we are

0:54:400:54:45

pressing on the representations. We

do not know what the answer will be

0:54:450:54:49

but we are making it clear, as have

other parties, of the seriousness of

0:54:490:54:53

the situation and we do expect there

will be a change, there has to be. I

0:54:530:54:58

do want to challenge in relation to

international humanitarian law, he

0:54:580:55:02

speaks about that law preventing

starvation of civilians as a means

0:55:020:55:07

method of warfare, that is quite

correct. And the public made Saudi

0:55:070:55:15

comment is that it is not there to

wage war but to prevent the import

0:55:150:55:21

of missiles. It is confirmation of

the support of those who wish to

0:55:210:55:27

prevent missiles entering Yemen need

to protect themselves and that is

0:55:270:55:31

through the work being done by the

UN and the coalition to secure the

0:55:310:55:35

entry ports to make sure there are

no threats in the same way there was

0:55:350:55:39

to the airport in Riyadh but at the

same time it is vital there is

0:55:390:55:44

humanitarian access. We believe that

concentration on both of those will

0:55:440:55:49

relieve the humanitarian situation

and at the same time secure the

0:55:490:55:53

safety of those who wish to protect

their own people. We will continue

0:55:530:55:56

to do that in addition to the work

we are doing negotiations which is

0:55:560:56:01

the only solution to the conflict.

Mr Andrew Mitchell.

By Right

0:56:010:56:08

Honourable friend has been most

helpful today, I thank him and the

0:56:080:56:12

opposition front for their comments

about my old regiment which will be

0:56:120:56:17

celebrating and commemorating the

events of 100 years ago next

0:56:170:56:20

weekend. But on Yemen, are not three

features of our engagement

0:56:200:56:27

absolutely clear? The current policy

on Yemen is doomed to strategic

0:56:270:56:34

failure both for Saudi Arabia and by

extension the UK. Secondly, that

0:56:340:56:39

Saudi policy violates international

law, as clearly set out in the UN

0:56:390:56:46

Secretary-General's letter of last

Friday. And thirdly, that we are

0:56:460:56:49

dangerously complicit in a policy

that is directly the mating of

0:56:490:56:57

famine and the collective punishment

of an entire population? Are we not

0:56:570:57:01

on the brink, Mr Speaker, of

witnessing in Yemen are a totally

0:57:010:57:05

preventable massive humanitarian

catastrophe, the likes of the -- the

0:57:050:57:11

likes of which we haven't seen in

decades?

In relation to my right

0:57:110:57:19

honourable friend's last point, it

is for the very reasons that we wish

0:57:190:57:23

to prevent the concerns raised by

agencies in the UN from coming to

0:57:230:57:30

fruition that we are spending all

our efforts -- lending all I efforts

0:57:300:57:38

in order to preserve safety and

prevent arms getting through to make

0:57:380:57:42

sure humanitarian access is indeed

given. He is right to raise the

0:57:420:57:47

concerns which I know the whole

House has, that is what is giving

0:57:470:57:51

the UK Government every incentive to

continue to do all we can to raise

0:57:510:57:56

those issues with those who fear for

their own safety, to make sure they

0:57:560:58:01

are not putting others at risk in

the manner described by so many

0:58:010:58:04

agencies.

I agree very much with the

comments for the members for Leeds

0:58:040:58:12

North East and Sutton Coldfield, and

key for giving me a advance sight of

0:58:120:58:17

the statement, I am happy to hear

there is dialogue but we need a lot

0:58:170:58:21

more about actions in this House. I

also understand the difficulties

0:58:210:58:29

facing the Saudis and the attack in

Riyadh which we of course also

0:58:290:58:33

condemn, there needs to be

recognition of the two sides of this

0:58:330:58:41

conflict. The 155 million the

Minister talks about in aid is

0:58:410:58:50

brought by the people and 8 billion

in arms deals to Saudi Arabia. Will

0:58:500:58:59

the Minister speak a little more

about those? Aid agencies have been

0:58:590:59:03

reporting for years about the

difficulties of getting aid into

0:59:030:59:08

Yemen and across Yemen. Difficulties

faced by aid agencies intends moving

0:59:080:59:15

goods across the country and moving

people about the country, only

0:59:150:59:19

recently I heard from one man who

saw how the projects are going, he

0:59:190:59:24

could not travel round the country

either due to the Visa system in

0:59:240:59:27

operation. Despite the inspection

system, Save the Children report

0:59:270:59:33

that 13 ships carrying vital

humanitarian aid were still denied

0:59:330:59:39

entry to Yemen, what is the UK

Government doing to get seaports

0:59:390:59:43

open, especially when these convoys

are quite clearly aid convoys and

0:59:430:59:48

not containing missiles? It is fine

to say they are providing funding

0:59:480:59:53

but without access and workers on

the ground able to deliver that it

0:59:530:59:56

is almost meaningless. This is a

population deliberately being

0:59:561:00:02

staffed by its neighbours. Those

neighbours are key allies of the UK.

1:00:021:00:06

-- being starved. Save the Children

report 130 children in Newman will

1:00:061:00:14

die today, and tomorrow and the next

day until this conflict ends, will

1:00:141:00:17

the Minister tell us how he will

stop this?

Again, I come to the last

1:00:171:00:25

point of her remarks, how will this

conflict come to an end? It will

1:00:251:00:29

come to an end when both sides are

brought together by those who make

1:00:291:00:33

it clear that there is no military

solution to this and there has to be

1:00:331:00:37

a political solution. That is what

the United Kingdom has been seeking

1:00:371:00:41

to do for many months now am a with

appropriate parties here in London,

1:00:411:00:48

New York and in the region. We share

the frustrations because like others

1:00:481:00:53

we can see the impact. I would

comment on a couple of her other

1:00:531:01:00

perfectly proper remarks, the key

test for our continued arms exports

1:01:001:01:05

to Saudi Arabia in terms of

humanitarian and international law

1:01:051:01:08

is if there is a clear risk that

those items might be used in a

1:01:081:01:14

violation of that international law,

that is kept under continual review.

1:01:141:01:18

And like other aspects of the UK

arms control policy, it is subject

1:01:181:01:22

to rigorous examination here and by

the law. The Honourable lady is

1:01:221:01:29

right to raise access, as we have

done. It does not mean our work is

1:01:291:01:35

meaningless, as she indicated, we

are working through partners on the

1:01:351:01:42

ground but distribution is harder,

of course it is. It is not just in

1:01:421:01:45

coalition controlled areas but other

areas, I must remind the House of

1:01:451:01:50

their art two side to this. If I may

deal again with arms exports, I know

1:01:501:01:56

it is fundamental and I did relate

that to the honourable lady the

1:01:561:01:59

other week and I shall do so again

if I may. I do not mean to be harsh

1:01:591:02:03

on it. If our not sending support to

our allies, who are facing attacks

1:02:031:02:11

upon their own soil from missiles

imported into ungoverned space am

1:02:111:02:17

aware they are trying to support and

elected government against the

1:02:171:02:22

interests of urgency -- against the

insurgency, if we thought that would

1:02:221:02:28

be of use, it would be a course of

action. I do not believe that is the

1:02:281:02:33

case. I do not think that if we were

to take that action that it would

1:02:331:02:36

not fundamentally undermine a number

of other regional issues which our

1:02:361:02:41

allies would wonder when they face

an attack on their Heathrow whether

1:02:411:02:45

we were making the right judgments.

We have to pursue other means of

1:02:451:02:49

bringing the conflict to an end and

that is what we are seeking to do.

1:02:491:02:56

Is Yemen subject to a blockade?

Yemen is subject to restrictions

1:02:561:03:03

brought in by the coalition parties

following the attack by a missile on

1:03:031:03:09

Riyadh and because of the smuggling

of arms and weapons that have

1:03:091:03:13

threatened the coalition vote in the

UAE and Saudi Arabia for some period

1:03:131:03:17

of time. I am not sure that the

nomenclature adds to it a great deal

1:03:171:03:22

but that is the aspect of the

situation.

I think it is pretty

1:03:221:03:27

clear that it is a blockade and the

sheer scale of the humanitarian

1:03:271:03:32

crisis now must require urgent

action by this government and by our

1:03:321:03:36

partners to press the Saudis to lift

the blockade. The Minister in his

1:03:361:03:40

statement said that our partners

Newman are reporting that water in

1:03:401:03:45

major cities has stopped operating

because of a lack of fuel. Can he

1:03:451:03:49

tell us how high the fuel supplies

are and when can food be distributed

1:03:491:03:54

and when the level of debt will

increase genetically as a result?

We

1:03:541:04:00

hope it does not reach that case. It

has been made clear that it is a

1:04:001:04:07

matter of a number of days in which

both of these issues will become

1:04:071:04:11

critical. In terms of what we have

done, since the 4th of November and

1:04:111:04:15

the attack and the response from the

coalition, on the 5th of November, a

1:04:151:04:21

statement condemned the attack, on

the 13th of November, the Secretary

1:04:211:04:25

of State for International

Development spoke about the

1:04:251:04:31

circumstance, we issued a further

statement about the need for

1:04:311:04:37

humanitarian access, and

conversations in Riyadh are taking

1:04:371:04:44

place all the time to reassure them

on security about weapons

1:04:441:04:53

threatening them being dealt with

but that humanitarian access is

1:04:531:04:57

vital.

1:04:571:04:58

Whilst I understand why the minister

is getting a statement today, can I

1:05:041:05:08

remind him since 2010 there have

been 15 oral statements, 16 written

1:05:081:05:14

ministerial statements and nine

urgent questions. We as the

1:05:141:05:19

ministers spend more time in the

department sorting out the problem

1:05:191:05:25

and less time talking about it.

I am

grateful to my honourable friend, a

1:05:251:05:31

former minister, for his support. I

understand the point he makes. Since

1:05:311:05:35

2010 when I was first at the

dispatch box in relation to Yemen we

1:05:351:05:40

have had all sorts of different

prospects for a different future for

1:05:401:05:43

the people of Yemen. The end of the

presidency, a process which resulted

1:05:431:05:49

in a national dialogue, an

opportunity for a new, democratic

1:05:491:05:54

future, an opportunity for voices

not heard in the governance of Yemen

1:05:541:05:57

ever in terms of young people and

women, and those opportunities were

1:05:571:06:03

dashed by the current conflict and

insurgency by a group seeking to

1:06:031:06:06

take power with violence, removing

the chances that people had for the

1:06:061:06:12

development and the building of

democracy as we had seen. The UK has

1:06:121:06:16

been engaged right the way through

that process to encourage all the

1:06:161:06:21

right things. Reporting to the House

is an important thing to do, but it

1:06:211:06:25

has not taken away any of the time

we have needed to spend in Yemen

1:06:251:06:28

itself.

Joe Swinton.

The Minister is

right that a political solution is

1:06:281:06:37

essential and the only route to

solving the humanitarian crisis in

1:06:371:06:42

the medium term, but access for aid

is vital in the short term. I am

1:06:421:06:46

glad the UK Government has raised

this issue with the Crown prince.

1:06:461:06:50

What was his response and does the

government, if it sticks to its

1:06:501:06:54

current position, have any hope that

the Saudis will let in any vital

1:06:541:07:00

supplies in the future?

The Crown

Prince's response on behalf of the

1:07:001:07:07

kingdom of Saudi Arabia is to make

the point about the need to control

1:07:071:07:12

weapons which might threaten Saudi

Arabia being smuggled into Yemen and

1:07:121:07:15

being used by those with whom they

are in conflict, as has been the

1:07:151:07:20

case over a period of time. We worry

that the sophistication of the

1:07:201:07:25

missiles being smuggled in has

increased and increase the risk not

1:07:251:07:30

only to Saudi Arabia and

neighbouring places, but the risk of

1:07:301:07:34

the conflict escalating and becoming

still worse. That is why there is a

1:07:341:07:39

serious concentration on trying to

prevent that because that looks

1:07:391:07:43

likely to prolong the conflict and

make the humanitarian situation

1:07:431:07:47

still worse. But at the same time I

understand the Crown Prince was

1:07:471:07:51

absolutely aware, as the public

statement to the Saudis made clear,

1:07:511:07:55

that it was not the intention of the

restrictions to cause the

1:07:551:08:00

humanitarian concerns which are now

dead, but to deal with the arms

1:08:001:08:04

supplies being smuggled in. The

agencies we work with and ourselves

1:08:041:08:09

are impressing upon the coalition

that that maybe the unintended

1:08:091:08:14

effect and that is why those

restrictions need to be lifted and

1:08:141:08:18

the access that the honourable lady

is looking for has to happen.

Given

1:08:181:08:25

that the United Nations has said

recently that if this blockade is

1:08:251:08:29

not lifted, we are likely to see the

worst famine for decades, given the

1:08:291:08:35

outbreak of diphtheria and cholera,

could I urge my right honourable

1:08:351:08:39

friend to bring to this house some

kind of statement every week, not

1:08:391:08:45

necessarily an oral statement, but

in writing, because this situation

1:08:451:08:50

is developing daily, weekly, and we

must be kept informed to know what

1:08:501:08:55

the situation is, hopefully a turn

for the better.

I thank my

1:08:551:09:00

honourable friend for that. I will

talk with the Department and the

1:09:001:09:04

House authorities about what would

be the best way to do that. I

1:09:041:09:08

understand that, if there is a way

to make sure there is adequate

1:09:081:09:11

information from government and

those other agencies involved

1:09:111:09:16

rapidly and effectively and I shall

try and do that.

Like many others I

1:09:161:09:24

condemned the missile attack on

Riyadh and I would argue that but

1:09:241:09:35

can I pressed the Minister on the

discussions with Saudi Arabia. Is

1:09:351:09:46

there any reason why the airport

should not be reopened to

1:09:461:09:49

humanitarian flights in the next 24

hours?

I thank the honourable

1:09:491:09:57

gentleman for the condemnation of

the missile attack as indeed it came

1:09:571:10:03

from his front bench. In terms of

timescale we have asked these

1:10:031:10:06

restrictions to be lifted

immediately. I cannot speak for the

1:10:061:10:12

coalition in relation to their

timescale beyond the fact they want

1:10:121:10:14

to be assured that the ports are

adequately protected against this

1:10:141:10:20

sort of attack which they saw. That

is why we are urging that the UN are

1:10:201:10:25

able to have access to those ports

and to work with the coalition

1:10:251:10:30

authorities with neither side is

demanding that the other side move

1:10:301:10:33

first in order to make sure there is

an opportunity to secure the ports

1:10:331:10:39

against weapons being smuggled in,

but at the same time immediately

1:10:391:10:43

improve the access.

The missile

attack on Riyadh takes the conflict

1:10:431:10:52

to a new and dangerous phase,

sending ripples through the Muslim

1:10:521:10:56

world who are being urged to take

sides, Sunni versus Shia, with a

1:10:561:11:02

recent cold war between Saudi Arabia

and Iran. Can my right honourable

1:11:021:11:08

friend outlined the ways that we are

tackling the deadlock and engaging

1:11:081:11:14

with the humanitarian process?

Can I

thank my honourable friend for her

1:11:141:11:17

perceptive question because it goes

to the heart of this. This is

1:11:171:11:21

another conflict in a region which

is being fought out over people who

1:11:211:11:25

don't deserve it and where the

issues between regional powers have

1:11:251:11:30

come into direct confrontation. My

honourable friend is right to say

1:11:301:11:35

the sophistication of the missile

launched, at the Saudi equivalent of

1:11:351:11:42

Heathrow, takes the conflict into a

different sphere and had that

1:11:421:11:45

missile landed on the airport, had

it destroyed civilian airliners,

1:11:451:11:50

passengers from all over the world,

including possibly from the UK, we

1:11:501:11:55

would have been facing a still

greater crisis. My honourable friend

1:11:551:12:00

is right to say our actions are not

just perceived in relation to this

1:12:001:12:05

particular conflict, they are

perceived in relation to a wider

1:12:051:12:09

issue between legitimacy and those

who would seek to disrupt it, which

1:12:091:12:13

is why again we need to bend all our

efforts in the first place on the

1:12:131:12:18

humanitarian side, but on the second

to make sure the political

1:12:181:12:23

negotiations and solutions improves

the situation and does not make it

1:12:231:12:25

worse.

All of us would condemn the

attack on Riyadh, the missile

1:12:251:12:34

attack, but can I expressed some

surprise that the Minister has been

1:12:341:12:40

reluctant in using the word

blockade? When the United Nations

1:12:401:12:45

are warning that diesel and petrol

will run dry inside a month and when

1:12:451:12:50

we know that within that month

100,000 children already

1:12:501:12:55

malnourished will die and Save the

Children are saying 130 are dying

1:12:551:13:00

every single day now, as well as

pushing for the political solution

1:13:001:13:07

which is absolutely necessary, is he

giving any indication at all to

1:13:071:13:11

Saudi Arabia that they could be in

any way accountable for the deaths

1:13:111:13:16

of what could be millions of people?

Well again, I think the term that is

1:13:161:13:27

described is less material than the

impact. The impact of these

1:13:271:13:32

restrictions are very clear. It has

led to what the agencies have said

1:13:321:13:35

about the warning about the running

out of fuel, food and water and it

1:13:351:13:40

is one of the reasons why the United

Kingdom has called last week and

1:13:401:13:44

again today for the immediate

lifting of these restrictions

1:13:441:13:47

subject to what we believe is

reasonable controls by the coalition

1:13:471:13:53

authorities to protect themselves.

There is no doubt about the

1:13:531:13:56

seriousness of this. I am not making

any point about whether it is called

1:13:561:14:01

a blockade or restrictions, it is

the impact that is important and

1:14:011:14:05

that is why we must work to relieve

it with our partners as quickly as

1:14:051:14:09

possible.

I referred to the

register. Given the supposition that

1:14:091:14:15

the rebels will not engage in the

important UN led process unless Iran

1:14:151:14:22

allows them, and there is no

interest in Iran to thaw relations

1:14:221:14:26

with Saudi Arabia or improve Saudi

Arabia's perception in the world,

1:14:261:14:32

how does my right honourable friend

CP is being delivered?

Again, Mr

1:14:321:14:39

Speaker, my honourable friend speaks

with knowledge of the area and again

1:14:391:14:43

another question which goes to the

heart of the issue. Our perception

1:14:431:14:50

is of course there are always

channels available to different

1:14:501:14:54

parties in conflict. It is one of

the reasons why all the parties to

1:14:541:14:59

the process are so important. We

hope firstly that common humanity

1:14:591:15:04

prevails in terms of what is being

inflicted on the people of Yemen as

1:15:041:15:08

a result of the insurgency, the

attempted removal of a legitimate

1:15:081:15:14

government and all that has flowed

from it, and that the parties will

1:15:141:15:18

appreciate there is no military

solution and there has to be a

1:15:181:15:20

political one. That applies to all

parties. There are skilled

1:15:201:15:27

negotiators, not least the UN

special representative, those in the

1:15:271:15:31

countries in the area who wish to

see an end to this conflict because

1:15:311:15:35

of the pain being suffered, and I

pay tribute to the governments in

1:15:351:15:39

the region who are attempting to

mediate with both sides and the

1:15:391:15:42

United Kingdom will give them every

support.

Can the Minister say a

1:15:421:15:48

little bit more about practically

how he thinks the security concerns

1:15:481:15:52

of Saudi Arabia can be addressed to

allow access to the humanitarian aid

1:15:521:15:56

into Yemen?

Mr Speaker, to answer

the honourable lady, there is a UN

1:15:561:16:06

verification and inspection

mechanism which the UN works through

1:16:061:16:13

its professionals and technicians to

provide the tools for ensuring that

1:16:131:16:21

supplies coming into ports are

subject to the right sort of

1:16:211:16:24

testing. My understanding is that

the UN and Saudi Arabia are in

1:16:241:16:30

contact in relation to this and that

we would wish them to get on site as

1:16:301:16:35

quickly as possible to do this. The

problem I think with the smuggling

1:16:351:16:44

of weapons is that they can go

through various routes and that is

1:16:441:16:48

always difficult, but we have to

respond to the concerns of those who

1:16:481:16:52

have had improved and increasingly

sophisticated missiles targeting

1:16:521:16:58

against them before there is a

further catastrophe, but it should

1:16:581:17:01

not be impossible to be able to

satisfy security conditions as well

1:17:011:17:06

as relieve humanitarian problems.

I

would highlight my entry in the

1:17:061:17:15

register of members Brahma interests

as someone in the past two has on a

1:17:151:17:18

number of occasions spent time in

Yemen. Can I associate myself with

1:17:181:17:23

marks from both sides of the House

with the tragedy befalling that

1:17:231:17:26

country. The immediate priority must

be the alleviation of humanitarian

1:17:261:17:33

suffering, but would he agree with

me that the UK should and must

1:17:331:17:38

continue its work to facilitate a

multilateral ceasefire followed by a

1:17:381:17:42

political solution but that to have

any long-term success, ultimately it

1:17:421:17:48

must emerge among those in the

conflict and not be imposed

1:17:481:17:54

externally?

Can I thank my oral

friend who speaks with some

1:17:541:18:00

knowledge of the area and the

subject. Firstly, I would like to

1:18:001:18:05

commend the efforts that Matthew

Rycroft are permanent representative

1:18:051:18:08

at the UN has been making in order

to drive the UN process, and also

1:18:081:18:12

our ambassador to Yemen for the

efforts they have made to try and

1:18:121:18:18

bring the parties together.

Ultimately it must and should be the

1:18:181:18:23

Yemeni solution. If we could go back

to the opportunities presented by

1:18:231:18:29

the National dialogue with the

people of Yemen were so close to

1:18:291:18:32

something different for them before

those who have traditionally held

1:18:321:18:34

power through the gun in the country

reasserted themselves, that is the

1:18:341:18:41

solution we would all wish for. But

the reality is that will only come

1:18:411:18:46

about when there is agreement

between the current parties in the

1:18:461:18:50

conflict to have to find a way to

set their weapons aside.

The closure

1:18:501:18:57

of the airport has reportedly cost

over 10,000 lives as it continues to

1:18:571:19:01

restrict humanitarian assistance to

stop it is paramount that the

1:19:011:19:05

airport is open immediately. Exactly

what recent representations has the

1:19:051:19:11

Secretary of State made to the Saudi

led coalition on reopening the

1:19:111:19:15

international airport in Yemen?

We

agree with the honourable lady. It

1:19:151:19:20

is not just a question of getting

supplies in, it is getting

1:19:201:19:26

humanitarian workers in and medical

cases out. There is worry about the

1:19:261:19:31

airspace around which is why there

have been restrictions and concerns

1:19:311:19:35

there. We recognise the importance

of the airport and it is one of

1:19:351:19:40

those areas of access that we would

wish to see reopened as quickly as

1:19:401:19:44

possible.

1:19:441:19:52

It is highly commendable that the UK

is the fourth-largest humanitarian

1:19:561:20:00

donor to Yemen but equally we play a

key role in diplomatic talks, not

1:20:001:20:05

least with Saudi Arabia. So can the

Minister give assurances that all

1:20:051:20:09

pressure is being kept up on Saudi

Arabia to get access lines open

1:20:091:20:14

because Yemen are pretty much

completely reliant on imports of

1:20:141:20:16

food.

Mr Speaker, my honourable

friend against beaks with knowledge,

1:20:161:20:24

some 90% of the food and supplies

that Yemen needs is imported into

1:20:241:20:29

the country. That is why these

issues surrounding the ports and the

1:20:291:20:34

airport are so very important.

Again, the question makes it clear

1:20:341:20:40

how important these issues are to

the people of Yemen but why the

1:20:401:20:44

United Kingdom is so engaged, not

only in dealing directly with

1:20:441:20:47

parties of the coalition, whose

security concerns we understand, but

1:20:471:20:52

we must also appreciate the

humanitarian consequences of the

1:20:521:20:56

actions they are taking to protect

themselves.

It is worth noting that

1:20:561:21:01

the alliance in starting this war

against a legitimate government is a

1:21:011:21:06

brutal army that has done some

brutal things and if you read the UN

1:21:061:21:10

reports, you will see that. And the

distances 750 miles to Riyadh, we

1:21:101:21:16

are not talking about missiles made

at the local foundry, this is

1:21:161:21:19

high-tech imported equipment. And

the vast majority of people

1:21:191:21:25

suffering are in rebel held

territory and they are blocking the

1:21:251:21:27

peace process and what can we do to

get them involved in peace in Yemen?

1:21:271:21:34

I am grateful to the honourable

gentleman who against beaks with

1:21:341:21:38

some knowledge on the subject. And

he puts some necessary balance into

1:21:381:21:44

the conversation. Because it is much

easier to pick up media interest in

1:21:441:21:49

the Saudis and the coalition, it has

been harder to talk about what the

1:21:491:21:54

insurgency has done but he rightly

points the finger at the numerous

1:21:541:21:59

atrocities and human rights abuses

they have conducted and their

1:21:591:22:03

willingness to bring in missiles to

spread the conflict emphasises how

1:22:031:22:09

important it is to bring it to an

end and why it is so important to

1:22:091:22:14

support those who are trying to

legitimately prevent them take over

1:22:141:22:18

a country and subject them to more

conflict and it will rule. -- ill

1:22:181:22:28

rule.

It is universal children's Day

and it is estimated by the UN that

1:22:281:22:33

over 2 million children are starving

in Yemen, can the Minister assure

1:22:331:22:36

the House that the government is

doing all it can to enable aid in

1:22:361:22:43

Yemen?

Again, I can absolutely

assure my honourable friend and we

1:22:431:22:48

are doing that. I draw attention to

their being two sides in this

1:22:481:22:54

conflict and to make sure that both

are contributing to an end to the

1:22:541:22:58

conflict because that is the only

thing that will make sure that in

1:22:581:23:02

those areas that are currently under

insurgent control that access to

1:23:021:23:07

food, medicine and water is given.

The heart-rending pictures of those

1:23:071:23:11

children who are suffering is an

affront on a day like today which is

1:23:111:23:15

why we must continue to give all our

efforts to bring every blue -- bring

1:23:151:23:22

a conclusion to this conflict.

He

hopes it will be dealt with by

1:23:221:23:29

diplomatic means, but if the

blockade continues, due to the

1:23:291:23:32

pressing nature of the crisis, will

the British government give

1:23:321:23:37

sanctions against the Saudis

especially in terms of arms exports?

1:23:371:23:43

Again, I have to say to the

honourable gentleman, we are some

1:23:431:23:48

way away from that. We are working

extremely hard with the coalition to

1:23:481:23:54

understand the impact of those who

would bring missiles to target their

1:23:541:23:58

airports and the civilian population

and I think threatening them with

1:23:581:24:03

sanctions in this situation are not

appropriate. And to only recognise

1:24:031:24:09

one side in this conflict only gives

comfort to those who wish to prolong

1:24:091:24:12

the conflict -- prolong the

conflict. I am sure he doesn't mean

1:24:121:24:17

to convey that but that is why we

are working so hard at a negotiated

1:24:171:24:22

solution to the good office of

states in the region.

The conflict

1:24:221:24:27

in Yemen has led to a cholera

outbreak which has affected --

1:24:271:24:37

caused the death of 2000 people.

With the Yemeni medical system

1:24:371:24:40

having collapsed, what has been done

to stem the spread of cholera, which

1:24:401:24:49

is treatable and to make sure people

have access to clean thinking water

1:24:491:24:53

which for too many people has been

out of reach due to rising prices,

1:24:531:24:58

lack of fuel for delivery and the

blockade?

I am grateful to him. One

1:24:581:25:05

of the problems in the region has

been the nonpayment of Public health

1:25:051:25:09

workers. And I have had three

conversations with the current

1:25:091:25:15

president of Yemen to urge the

government of Yemen to make finance

1:25:151:25:20

available to pay those workers whose

job it is to try and assist those

1:25:201:25:24

who might be likely to get cholera.

I know that some of the aid agencies

1:25:241:25:31

have stepped into the breach and

paid people to do the same which has

1:25:311:25:34

been magnificent. But the United

Kingdom has played its part, we have

1:25:341:25:40

given £27 million to Unicef to treat

children with acute knowledge fish

1:25:401:25:45

in and provide safe water supply and

to support mobile health clinics

1:25:451:25:50

with a specific £6 million allocated

towards cholera response. We have

1:25:501:25:56

supported a vaccination programme

but access is vital in relation to

1:25:561:26:01

this. We work with partners and that

is the way to help tackle the

1:26:011:26:05

cholera epidemic.

I would like to

condemn in the strong as possible

1:26:051:26:12

terms the missile attack on a

civilian target in Riyadh, there

1:26:121:26:16

have been many attacks on civilian

targets in Yemen, I would like to

1:26:161:26:20

ask the Minister what plans the

government has in terms of the arms

1:26:201:26:28

trade with Saudi Arabia?

As has been

mentioned before, arms licences in

1:26:281:26:35

the United Kingdom are subject to

strict controls. Everything is done

1:26:351:26:40

on a case-by-case basis. In terms of

international humanitarian law, I

1:26:401:26:46

would stress to the House that we

talk about the compliance of

1:26:461:26:52

humanitarian law with the Saudi

Arabian government and other members

1:26:521:26:56

of the coalition. Saudi Arabia has

said it will investigate reports of

1:26:561:27:02

violations of international law. The

joint incidence assessment team has

1:27:021:27:09

announced the findings of 36

investigations with the most isn't

1:27:091:27:13

released on 12 of September 2017 so

it is all taken very seriously and

1:27:131:27:19

he is right to condemn the missile

attack as well, as he did at the

1:27:191:27:23

beginning of his comments. Could be

Minister please outline to the House

1:27:231:27:28

what this government is doing to

bring all parties together so that

1:27:281:27:32

we can find a collective solution to

this tragedy? The efforts to bring

1:27:321:27:36

all parties together have pursued a

number of different lines,

1:27:361:27:43

effectively from this summer onwards

and the months before that. The New

1:27:431:27:48

York General Assembly am I hosted a

meeting of the so-called quad, the

1:27:481:27:53

United States, UAE, Saudi Arabia and

the UN in order to see what could be

1:27:531:28:02

achieved. There is a meeting of the

quad and the Quint, which includes

1:28:021:28:08

the Armani Burrell macro because we

believe -- with Omar and. To work

1:28:081:28:20

with those using back channels to

make sure there is no future in what

1:28:201:28:29

they are doing in terms of conflict

but there are have to say those in

1:28:291:28:32

the region, I have to be clear about

this, there are people who make

1:28:321:28:36

money out of the conflict. Too many

Yemenis has said there are too many

1:28:361:28:43

involved in the conflict that are

comfortable with it going on. It is

1:28:431:28:46

hard for us to understand how

dreadful that is but it is true. We

1:28:461:28:50

have do make sure that getting to

peace is more beneficial for more

1:28:501:28:54

people than those who wish to

perpetrate war.

The firing of

1:28:541:29:01

short-range ballistic missiles

towards Riyadh is designed to be

1:29:011:29:06

provocative. I am worried by some

reports that the insurgents are now

1:29:061:29:13

able to manufacture a short list

could missile, perhaps a KR one. But

1:29:131:29:19

I can't believe they would have that

level of sophistication, could I ask

1:29:191:29:24

my right honourable friend for his

opinion.

There are some matters on

1:29:241:29:30

which I am really unqualified. And

on which my honourable friend's

1:29:301:29:37

background and others in the House

would be rather greater. I have no

1:29:371:29:41

comment to make on the detailed

sophistication of weaponry used in

1:29:411:29:44

the conflict except to say that some

very sophisticated weaponry appears

1:29:441:29:50

to be coming in that is a threat to

the region as a whole and through

1:29:501:29:55

that, to all of us. You'll agree the

self effacement of the Minister of

1:29:551:29:59

State is not only unsurpassed, it is

unequalled in this House.

Mr Kevin

1:29:591:30:07

Foster.

Thank you Mr Speaker. I

welcome the Minister's statement and

1:30:071:30:12

his comments so far in recognition

of the humanitarian disaster in

1:30:121:30:16

Yemen. Can he perhaps explain a bit

more on the exact work we will be

1:30:161:30:22

doing as a member of the Security

Council to help the UN get the aid

1:30:221:30:28

that is desperately needed into

Yemen?

Mr Speaker, holding the pen

1:30:281:30:35

at the UN, meaning that within the

Security Council, the United Kingdom

1:30:351:30:41

has the primary responsibility among

the Security Council for efforts to

1:30:411:30:47

secure support for a negotiated

peace, the UK sponsored a

1:30:471:30:51

presidential statement agreed on the

15th of June. That was an important

1:30:511:30:55

statement of international concern

in terms of the deteriorating

1:30:551:31:00

humanitarian situation. That work is

going on in the UN all the time to

1:31:001:31:08

convert that into action.

I am

grateful to the Minister for coming

1:31:081:31:12

to the House today with his

statement and for continuing to keep

1:31:121:31:16

us updated. I wonder if he can

outline efforts that the government

1:31:161:31:22

and diplomatic staff are undertaking

to unlock the political deadlock of

1:31:221:31:27

this terrible situation?

Mr Speaker,

part of the problem as I alluded to

1:31:271:31:34

a moment ago is that some parties

have become comfortable with the

1:31:341:31:39

conflict and some parties in Yemen

have been able to make a living with

1:31:391:31:45

the conflict going on. And there

have to be incentives to people to

1:31:451:31:53

make sure that a piece can be

reached. To most of us, this is

1:31:531:31:58

horrendous, that anyone should be in

that position but the reality is

1:31:581:32:01

that after a couple of years of

conflict in the region have to be

1:32:011:32:05

understood. You talk to Yemeni s

themselves to understand their

1:32:051:32:10

frustration, that is where the will

of states must come in in order to

1:32:101:32:14

make sure they can enforce a

negotiated peace but above all make

1:32:141:32:20

sure that those responsible for

others realise that the only future

1:32:201:32:23

for the people of Yemen is not in a

continual state of conflict but in

1:32:231:32:27

having a government of the consent

of the people that can take a

1:32:271:32:32

wonderful country full of culture

and music and architecture and all

1:32:321:32:36

of the good things that we rarely

talk about, give those people a

1:32:361:32:40

chance of the future they richly

deserve.

Unicef itself has praised

1:32:401:32:49

the UK for the aid it has

contributed to the country and I

1:32:491:32:52

wonder if he would say a little more

about the pressure that he feels can

1:32:521:32:57

be brought on Iraq and to end its

supply to the insurgents who are

1:32:571:33:01

still indulging in things like

forced marriage and the use of

1:33:011:33:06

children as soldiers?

Our

relationship with Iraq is changing

1:33:061:33:16

-- with Iraq and -- with Iran. There

are many things of difference

1:33:161:33:27

between us, not least their support

for what we consider to be

1:33:271:33:31

insurgency and terrorist action, how

they see the world is different to

1:33:311:33:36

others in the region. But the

logical consequence of that not

1:33:361:33:41

being addressed is dire. If there

are pathways to encourage people to

1:33:411:33:47

see their region differently and to

try and create relationships that

1:33:471:33:54

would at present seem difficult,

then the United Kingdom's role is to

1:33:541:33:58

encourage that. Already there are

relationships in the region that 50

1:33:581:34:01

years ago you would not have

expected between certain states in

1:34:011:34:04

the region. So who knows what can

happen in the future and we will do

1:34:041:34:08

what we can to help those in the

region to encourage them towards a

1:34:081:34:14

regional situation which no longer

relies on confrontation but on

1:34:141:34:19

consensual support for their

peoples.

I refer members to my entry

1:34:191:34:28

into the register of interests.

Considering the awful humanitarian

1:34:281:34:32

situation, despite the missile being

fired into Saudi Arabia, does he

1:34:321:34:40

believe that it is possible to get

more aid, through trusted UK aid to

1:34:401:34:45

the Yemeni people?

1:34:451:34:47

I can say to my honourable friend

that although there is some access

1:34:531:34:58

through the southern ports, the

quality of access is not good enough

1:34:581:35:02

and does not cover enough areas,

although we are looking to use any

1:35:021:35:06

means we can with our partners to

get aid in. More access is needed

1:35:061:35:11

which is why we want to ensure that

the ports are safe for those who

1:35:111:35:17

fear weapons coming in, but are open

to the humanitarian access so badly

1:35:171:35:22

needed.

Following on from the

minister's response to my honourable

1:35:221:35:29

and gallant friend, does he share my

concern that there appears to be a

1:35:291:35:32

serious breach of the UN Security

Council resolution to the ultimate

1:35:321:35:37

costs and the worsening conditions

for the people of Yemen. What can

1:35:371:35:42

the UK do to assist the UN?

I

honourable friend is right, there is

1:35:421:35:54

a UN investigation taking place into

the circumstances surrounding the

1:35:541:35:57

missile. We are certainly concerned

about where the parts of that

1:35:571:36:02

missile may well have come from and

it could indeed be a breach of the

1:36:021:36:07

arms embargo. We have offered the UN

all our technical expertise because

1:36:071:36:13

it is essential that incident is

fully investigated as it is unfair

1:36:131:36:16

to cast aspersions if they are not

correct, but above all we must stop

1:36:161:36:22

the smuggling getting in because

that is part of the key to improving

1:36:221:36:26

humanitarian access.

I fear that

almost inevitably it will be

1:36:261:36:31

necessary for these matters to be

aired again in the chamber before

1:36:311:36:34

very long. Point of order.

You may

be aware we are awaiting results of

1:36:341:36:43

successful elections in Somalia and

all of us in this house are in the

1:36:431:36:47

all-party group are watching closely

and that all parties will establish

1:36:471:36:56

mechanisms to resolve grievances. Do

you have any notice of any statement

1:36:561:37:00

or update from the Foreign Office on

those important elections, not least

1:37:001:37:05

given the UK funding for the

imported monitoring mission there?

1:37:051:37:09

The answer is I do not, but I hope

it will be forthcoming soon because

1:37:091:37:15

it is a matter of concern to many

members across the House. However, I

1:37:151:37:19

might add in parenthesis the

honourable member did not know and

1:37:191:37:25

at this moment does not know, but is

about to know, namely that in the

1:37:251:37:29

distant past I was myself a member

of that all-party group and made

1:37:291:37:33

common cause with the honourable

member for Bristol East and it is a

1:37:331:37:39

matter of considerable interest to

me as well. I am sure ministers on

1:37:391:37:42

the Treasury bench will have heard

what the honourable gentleman has

1:37:421:37:45

said and hope the House will be

enlightened before very long. If

1:37:451:37:50

there are no further points of

order, we now come to the three

1:37:501:37:54

founding resolutions for the

taxation cross-border trade bill.

1:37:541:38:04

Before I called the financial

Secretary to the Treasury to move

1:38:041:38:08

the first ways and means motion, I

should make clear to the House that

1:38:081:38:11

all three founding resolutions will

be debated together. I informed the

1:38:111:38:17

House that I have selected

amendments E and F in the name of

1:38:171:38:23

the honourable gentleman, the member

for Edinburgh South. To move the

1:38:231:38:29

duties of customers ways and means

motion I called the financial

1:38:291:38:32

Secretary to the Treasury.

Mel

stride. Thank you, Mr Speaker. I beg

1:38:321:38:39

to move the ways and means motion

relation to duties in customers.

1:38:391:38:48

Since the decision of the British

people to leave the European Union

1:38:481:38:52

in June last year, the government

has taken a number of significant

1:38:521:38:56

steps to put that decision into

action from triggering Article 50

1:38:561:39:00

two taking forward the European

Union withdrawal bill and

1:39:001:39:06

undertaking the extensive

consultation and planning that

1:39:061:39:09

informs our negotiating objectives.

Madame Deputy Speaker, the

1:39:091:39:14

resolutions before us today

represent another essential step in

1:39:141:39:17

this process for what we are here to

debate is the legislation for a new

1:39:171:39:23

customs regime to be in place by the

time the United Kingdom leaves the

1:39:231:39:27

EU and the EU customs union. In so

doing it allows the UK to respond to

1:39:271:39:33

the outcome of the negotiations. I

do not need to tell the House how

1:39:331:39:37

important this is. The taxation

cross-border trade bill will pave

1:39:371:39:42

the way for new domestic legislation

that will enable the UK to establish

1:39:421:39:48

a stand-alone customs regime,

including by allowing the UK to

1:39:481:39:52

charge customs duty on goods

including those imported from the

1:39:521:39:57

European Union, allowing the

government to set out how and in

1:39:571:40:00

what form customs declarations

should be made, and giving the UK

1:40:001:40:05

the freedom to vary the raids of

import duty as necessary, in

1:40:051:40:09

particular in the case of trade

remedies, investigations and for

1:40:091:40:14

developing countries. I will give

way.

I am extremely grateful to the

1:40:141:40:18

Minister. He mentioned the decision

that the government had already

1:40:181:40:26

taken. Before it decided to trigger

Article 50 and to begin this

1:40:261:40:31

process, did it give any

consideration to the complications

1:40:311:40:35

that would be caused in the

relationship between Northern

1:40:351:40:37

Ireland and the Republic of Ireland

as was explained to the Foreign

1:40:371:40:42

Affairs Select Committee when we

were in Dublin last week?

The

1:40:421:40:47

consideration the government gave an

exercise in Article 50 was a

1:40:471:40:51

consideration of the decision of the

British people in June of last year

1:40:511:40:55

to decide that they wished to leave

the European Union. On the specific

1:40:551:41:00

point of Northern Ireland and

Ireland border, we have made it very

1:41:001:41:04

clear and we are of the same mind as

the European Union and the Irish

1:41:041:41:09

Republic that there should be no

return to the borders of the past

1:41:091:41:13

and we are committed to as

frictionless a solution as possible

1:41:131:41:18

for the border between Northern

Ireland and the Irish public.

He

1:41:181:41:23

will be aware that the Irish Prime

Minister has called for the UK

1:41:231:41:26

Government to give a written

guarantee that there will be no

1:41:261:41:30

border controls. Is the minister

able to do that?

We have made it

1:41:301:41:35

clear on numerous occasions that we

have no intention of reverting to

1:41:351:41:39

the borders of the past, the hard

borders, and to make sure that we

1:41:391:41:44

take fully into account the unique

political and cultural circumstances

1:41:441:41:50

of Northern Ireland and the Irish

Republic. Madame Deputy Speaker, in

1:41:501:41:55

addition the bill will modify

elements of our excise legislation

1:41:551:41:58

to ensure this functions effectively

upon EU exit. The bill will give the

1:41:581:42:05

UK the power to implement new

arrangements that will ensure trade

1:42:051:42:09

is as frictionless as possible. I

will certainly give way to the

1:42:091:42:13

honourable lady.

I thank the

Minister. Has he heard the judgment

1:42:131:42:20

of the UK chamber of shipping which

talks about absolute catastrophe

1:42:201:42:25

unless issues relating to transport

through the pores is resolved? Does

1:42:251:42:32

the government take this issue

seriously?

The honourable lady

1:42:321:42:38

raises an extremely important point,

particularly in relation to pause. I

1:42:381:42:43

have met with the chief executive of

the pores in Dover and the staff

1:42:431:42:47

down there and HMRC are variously

engaged with all the ports in the

1:42:471:42:52

UK. We recognise the paramount

importance of ensuring we have fluid

1:42:521:42:56

trade flows across those ports. The

honourable lady will know that in

1:42:561:43:02

the white paper we set out quite

clearly the kind of approaches we

1:43:021:43:05

will be taking it necessary in order

to ensure that those trade flows are

1:43:051:43:12

indeed rapid and effective and that

trade is kept moving. I will give

1:43:121:43:16

way to the honourable lady.

He will

know from our time on the Finance

1:43:161:43:23

Bill my concern that small

businesses in Britain will be

1:43:231:43:26

saddled with the 13th directive on

VAT. He has to set out that the

1:43:261:43:32

government intends for a new

director to come into place. Can he

1:43:321:43:36

clarify he is expecting British

businesses to deal with the 13th

1:43:361:43:39

directive?

When we leave the

European Union we will gain further

1:43:391:43:46

control over VAT, although that

depends upon the precise nature of

1:43:461:43:50

the deal that is negotiated. It may

be that we move from acquisition VAT

1:43:501:43:55

to import VAT depending where that

particular negotiation lands. As I

1:43:551:44:03

say, the general principle is that

the government is entirely committed

1:44:031:44:06

to ensuring that the burdens on

businesses are kept to the absolute

1:44:061:44:11

minimum and trade flows are

maintained. I give way.

The Minister

1:44:111:44:18

will be aware that the white paper

on the trade bill was responded to

1:44:181:44:23

quite heavily by manufacturing

organisations, not least the ceramic

1:44:231:44:30

federation who are genuinely

concerned about the market trade

1:44:301:44:32

remedies that will exist post Brexit

in particular on. White goods such

1:44:321:44:38

as tiles and tableware which can

undermine the indigenous

1:44:381:44:41

manufacturing base. Can the Minister

give some indication as to the

1:44:411:44:47

remedies when we leave the EU? The

timing of the publication of the

1:44:471:44:52

bill was very short and we cannot be

sure whether those considerations

1:44:521:44:56

have been taken into thought.

The

time for the closure of the

1:44:561:45:02

consultation and the bulk of the

measures to which the honourable

1:45:021:45:04

member refers, these measures will

be within days the bill and they are

1:45:041:45:11

trade remedy measures around dumping

excessive subsidy and around

1:45:111:45:16

safeguarding. He will know that we

take those issues extremely

1:45:161:45:21

seriously and in the event that

there is evidence of dumping and

1:45:211:45:25

those other measures to which I have

referred, there will be a trade

1:45:251:45:31

remedies authority, the details of

which have already been disclosed to

1:45:311:45:34

the House in the trade bill, and

that body and the Secretary of State

1:45:341:45:41

at the Department of International

trade will be able to work together

1:45:411:45:43

to ensure that when there are issues

of dumping and similar activity that

1:45:431:45:48

we are able to take appropriate

action in the normal manner. I will

1:45:481:45:53

certainly give way.

I thank the

Minister. I wonder if he would like

1:45:531:45:59

to comment on how much this will

allow the VAT and customs system to

1:45:591:46:05

continue whatever the outcome and

whether there is enough flexibility

1:46:051:46:08

built into this depending on what

that outcome is?

My honourable

1:46:081:46:13

friend raises an important point

which goes to the heart of what this

1:46:131:46:18

bill is about. It is a framework

Bill and allows us to make sure that

1:46:181:46:22

we can deliver wherever the

negotiation lands. It does not

1:46:221:46:26

presuppose any particular outcome as

a consequence of the negotiations,

1:46:261:46:31

but it is there to enable those

negotiations to be put into effect.

1:46:311:46:34

I will give way.

I made it very

clear to the people in my

1:46:341:46:43

constituency that I believe in our

continuing membership of the customs

1:46:431:46:45

union. Would this motion be able to

cope with all eventualities,

1:46:451:46:53

including staying a de facto member

of the customs union through a

1:46:531:46:57

period of transition and if

everything goes the way I would like

1:46:571:47:00

it to go that we could stay a member

of the customs union even with this

1:47:001:47:05

legislation if that is the will of

the government and this place?

The

1:47:051:47:11

bill deals with is the situation of

us leaving the European Union which

1:47:111:47:16

means we will be leaving the customs

union. But it does indeed allow for

1:47:161:47:22

a transition period in which that

could be a very close customs

1:47:221:47:25

Association with the European Union.

The member opposite asked how and he

1:47:251:47:31

sees the bill which will be

introduced this evening and he will

1:47:311:47:37

become more enlightened as to how

that can occur. It does facilitate a

1:47:371:47:44

period of transition.

Is

specifically spoke about the ability

1:47:441:47:51

to deliver on all the potential

circumstances. Is he aware of the

1:47:511:47:55

Home Office Select Committee report

and the discussions with HMRC about

1:47:551:48:01

concerns about the capacity to deal

with different customs arrangements?

1:48:011:48:05

The report says the Home Office is

only giving an extra 300 staff by

1:48:051:48:12

2019 and 1920 HMRC says they need

5000 extra staff. What estimates has

1:48:121:48:17

he made of how many staff are

required and what they will cost?

We

1:48:171:48:24

will be guided by HMRC, which are

closely working with them on those

1:48:241:48:28

issues. John Thompson, the head of

HMRC has suggested between 3000 and

1:48:281:48:33

5000 staff if we have a Day one

contingency scenario if that is

1:48:331:48:38

where we end up. He and HMRC are in

discussions with us at the moment as

1:48:381:48:43

to the timing of pressing the button

on those particular issues and the

1:48:431:48:50

costs involved. But the honourable

member can rest assured that

1:48:501:48:54

whatever resources HMRC requires to

make sure that we are ready on day

1:48:541:48:58

one, HMRC will be provided with.

Can

he sure as that the bill that we do

1:48:581:49:05

not have which we will be able to

see, will it contain arrangements

1:49:051:49:13

for sanitary and sanitary regulatory

checks at Dover, the Channel Tunnel

1:49:131:49:23

entrance and exit, because they are

not there at present? If we would

1:49:231:49:28

introduce customs checks, we would

introduce those regulatory checks as

1:49:281:49:31

well. Has the HMRC allowed for that

in the budget as well?

The

1:49:311:49:37

honourable gentleman makes it sound

as if the fact we do not have the

1:49:371:49:42

bill right now is somewhat

inappropriate or not right. This is

1:49:421:49:46

a Finance Bill, taxation bill, it is

coming in on ways and Means and I

1:49:461:49:51

will introduce the bill at the of

this debate and will have the

1:49:511:49:55

opportunity to walk the floor

accordingly and to be admired by

1:49:551:49:58

many members across all sides of the

House when I do so. He will be aware

1:49:581:50:02

that HMRC and negotiations are

ongoing and they will come out of

1:50:021:50:11

those discussions and negotiations

in the normal manner.

1:50:111:50:23

With the honourable gentleman agree

that there is some false

1:50:231:50:26

misunderstanding. Our trade with the

rest of the world is what life will

1:50:261:50:32

be like outside of the EU. We are

replicating something that already

1:50:321:50:37

exists around the table with the

rest of the world that dwarfs what

1:50:371:50:41

we do with the EU.

Our country, our

nation is quite capable of making

1:50:411:50:50

sure that wherever the negotiation

mans we will have the resources,

1:50:501:50:56

tyrants and wherewithal to make a

success of Brexit and engage in our

1:50:561:51:01

future trading arrangements. In

terms of the actual bill in that

1:51:011:51:05

context, the important thing is that

it does not presuppose any

1:51:051:51:09

particular outcome but it

facilitates which ever outcome we

1:51:091:51:13

finally arrived at. I will certainly

give way.

Would he agree with me

1:51:131:51:20

that it's wrong to say that fighters

and to reach checks don't happen at

1:51:201:51:24

the moment. Potentially, at any

rate. We experienced it in 2001 with

1:51:241:51:32

the BSE outbreak. These things are

real and happen from time to time.

1:51:321:51:37

It is right that we should be able

to maintain public health and animal

1:51:371:51:43

health and are perfectly capable of

doing so outside the European Union.

1:51:431:51:49

There is nothing in this bill that

acts counter to act in the way that

1:51:491:51:53

he has suggested. Very glad to give

way.

I'm very grateful. 80% of the

1:51:531:52:03

UK's freight movement goes through

the Channel Tunnel and the port of

1:52:031:52:08

Dover. Anything that delays that

processing will cause massive

1:52:081:52:13

backlogs and the physical

infrastructure is not yet in place

1:52:131:52:16

to do that. Alongside the bill, does

he believe that we need to make sure

1:52:161:52:20

the resources are there so that

whatever is on the Seri is in place

1:52:201:52:23

on day one to make sure the physical

infrastructure can support

1:52:231:52:28

cross-channel trade.

This is a

critical point. These are the issues

1:52:281:52:31

I discussed with the Chief Executive

at Dover when I visited. I have

1:52:311:52:38

regular discussions with HMRC on

these matters and they in turn have

1:52:381:52:43

regular Round Table events and a

close association particularly with

1:52:431:52:47

the Port of Dover. He is absolutely

right that we have to make sure that

1:52:471:52:52

trade is fluid and moves quickly

across that border and he will have

1:52:521:52:56

noted the suggestions set down in

the White Paper in that respect with

1:52:561:53:01

the pre-lodging of customs

declarations away from the port,

1:53:011:53:05

indeed, from Calais in that

particular instance and making sure

1:53:051:53:08

that we have the right inventory

software available in the Port

1:53:081:53:12

itself so we can match of the goods

in coming against the declarations

1:53:121:53:16

to make sure that we keep the flow

going. If I may just finished. As to

1:53:161:53:25

his specific question about whether

I believe we are ready. I do believe

1:53:251:53:29

that we will be ready. I believe

that the IT system that is coming in

1:53:291:53:34

place will be ready by January and

we will start seeing businesses and

1:53:341:53:40

trade is migrating to that system in

August next year. We will be in the

1:53:401:53:44

position that we want to be come

they won. I give way to the right

1:53:441:53:48

honourable gentleman.

In the meeting

that he had with the Port of Dover

1:53:481:53:54

and I have also met with them, what

did the Chief Executive say about

1:53:541:54:01

the extra average processing time

per vehicle for the port to stop

1:54:011:54:06

functioning?

The figure is very low.

It's a matter of a couple of

1:54:061:54:12

minutes. If the system stopped for

more than a couple of minutes, you

1:54:121:54:16

would start to see major problems

which is why we're placing such an

1:54:161:54:21

extremely high priority on making

sure that our ports continue as

1:54:211:54:28

effectively as they should do. I

give way to the honourable lady.

I

1:54:281:54:36

thank him for his fulsome responses.

How does it relate to our biggest

1:54:361:54:42

port by value, Heathrow Airport,

will Heathrow be ready for this

1:54:421:54:49

process when it comes in?

Absolutely, Madame Deputy Speaker,

1:54:491:54:55

in the case of Dover, most of the

traffic is trade within the U

1:54:551:55:02

whereas a high proportion of the

trade going into Heathrow is more

1:55:021:55:06

international than simply the

European Union. There is greater

1:55:061:55:09

engagement already with third

country trading, as it were. We are

1:55:091:55:17

confident that Heathrow will be

ready. I give way to my honourable

1:55:171:55:21

friend.

I thank my right honourable

friend who is making a typically

1:55:211:55:27

powerful and effective exposition on

this incredibly complex and detailed

1:55:271:55:31

area. Would he agree that it is

really important for Channel 4 is

1:55:311:55:37

that there is parking facilities and

resilience will turn off the 20 so

1:55:371:55:43

that whatever eventuality arises, in

terms of needing to do checks,

1:55:431:55:47

whether it's be for animal health or

customs purposes, that we have the

1:55:471:55:51

facilities in place on day one?

I

thank my honourable friend for that

1:55:511:55:56

intervention. Before I address his

specific question I thank him also

1:55:561:56:02

for the insights and I have to say

fairly powerful lobbying that he has

1:56:021:56:07

quite rightly made on behalf of the

Port of Dover and his constituents.

1:56:071:56:13

As to the specific question of being

ready in terms of infrastructure, we

1:56:131:56:17

certainly recognise that we need to

have infrastructure there, that the

1:56:171:56:23

port itself would not be generally

able to handle a large number of

1:56:231:56:30

stoppages, for example at any one

time, and I have been down to the

1:56:301:56:35

port to inspect the facilities there

and I certainly appreciate that. It

1:56:351:56:40

is something that is receiving

ongoing consideration. I give way to

1:56:401:56:45

the right honourable lady.

Thank

you. Could he tell us what financial

1:56:451:56:51

provision is going to be made if

operation stamp is going to be

1:56:511:56:58

required to put into practice on the

20 every week or of not more so if

1:56:581:57:02

there is a blockage at the port?

Operation stamp, not because of a

1:57:021:57:12

general deficiency in customs

arrangements but because of what

1:57:121:57:14

happened on the French side of the

channel, in the event that those

1:57:141:57:19

situations occur again, which I

suppose it could do, irrespective of

1:57:191:57:23

the arrangements we have for

customs, the government will make

1:57:231:57:27

sure that we have sufficient

resource to deal with that

1:57:271:57:31

eventuality. As I said, in terms of

the customs arrangements themselves

1:57:311:57:36

under resourcing of the facilities

and the arrangement we need to put

1:57:361:57:41

into place, we are confident that

they will be there to keep the

1:57:411:57:44

traffic moving on day one. Very

happy to give way.

In the interests

1:57:441:57:54

of my constituents as well, could

the Minister confirm perhaps in

1:57:541:58:01

writing afterwards, that the £250

million that the government

1:58:011:58:05

allocated in the Autumn Statement

two years ago towards the relief

1:58:051:58:18

parking that those funds are still

available. My constituents would

1:58:181:58:23

benefit from knowing that the budget

allocated towards the project is

1:58:231:58:25

still there.

I think in terms of

making progress, Kazi have taken a

1:58:251:58:32

large number of interventions, I

will do as my right honourable

1:58:321:58:35

friend suggests and write to him on

the specifics he has raised.

Working

1:58:351:58:40

in tandem with the trade bill that

was introduced in Parliament next

1:58:401:58:46

month, all of that which is

providing content unity in

1:58:461:58:50

transition that everybody which to

see.

Let me be with the house that

1:58:501:58:57

the EU will leave the custom into

union, it is a critical factor of

1:58:571:59:01

allowing the UK to forge a new

relationship with new partners

1:59:011:59:05

around the world, leaving the EU

customs union will allow the UK to

1:59:051:59:11

negotiate its own trade agreements.

Trade agreements that will be solely

1:59:111:59:14

based around the UK's national

interest and needs and yet we will

1:59:141:59:19

also need to make sure we have an

ambitious new customers relationship

1:59:191:59:23

with the EU that allows us to keep

trade as free and frictionless as

1:59:231:59:29

possible. As the Prime Minister has

been clear, while we are leaving the

1:59:291:59:33

Yukon what we are not leaving

Europe. Having mutually beneficial

1:59:331:59:39

customs, VAT and excise arrangements

is clearly a benefit to all sides.

1:59:391:59:43

We've been hearing from hundreds of

businesses about this matter since

1:59:431:59:47

the referendum. The government

remains firmly committed to removing

1:59:471:59:54

any physical land border structure

between Ireland and the UK, as we

1:59:541:59:58

have said. This is a point of

absolute importance. Their

1:59:582:00:03

commitment to the Good Friday

Agreement and their focus on

2:00:032:00:07

flexible and creative solutions to

avoid a hard border. We look forward

2:00:072:00:11

to making progress on these issues.

Ensuring EU and UK trade that is

2:00:112:00:22

frictionless as possible and

avoiding a hard border on the island

2:00:222:00:24

of Ireland, the government has set

out to options. One is a highly

2:00:242:00:31

streamlined customs arrangement.

This includes numbers of measures to

2:00:312:00:36

avoid barriers to trade, continued

access to some facilitation is that

2:00:362:00:41

our trade is currently enjoy.

Introducing innovative new

2:00:412:00:45

technology solutions to stop delays.

The other is a new customs

2:00:452:00:52

partnership. An unprecedented and

innovative approach under which the

2:00:522:00:57

UK would mirror the EU's

requirements from imports form the

2:00:572:01:01

rest of the world removing the need

for a formal customs border between

2:01:012:01:05

the UK and the year. Either of these

options would take time to put in

2:01:052:01:09

place. Cliff edge changes are in no

one's interests. Businesses should

2:01:092:01:17

only have two are just wants to new

customers relationship. For that

2:01:172:01:20

reason, we are proposing an

implementation period during which

2:01:202:01:27

governments in both the UK and the

European Union would have time to

2:01:272:01:30

adapt. How long that would last, and

the form it takes, would be a matter

2:01:302:01:36

for negotiations. It would of course

cover issues beyond customers. As

2:01:362:01:40

the Prime Minister has set out, the

duration should be linked as the

2:01:402:01:46

time prepared to test our

relationship with the EU, a period

2:01:462:01:56

of about two years. There are

sensible steps that we can take now

2:01:562:02:00

to prepare for the future. This bill

is one of those steps. It provides a

2:02:002:02:05

new framework for customs regime

that will allow the government to

2:02:052:02:08

give effect to a range of outcomes

negotiations, including a

2:02:082:02:13

instrumentation period. This Bill

will, as far as possible, replicate

2:02:132:02:17

the effect of existing customs union

laws. It is only right that the

2:02:172:02:25

government should prepare for all

eventualities. This will enable the

2:02:252:02:32

government to have effective customs

relations even if a deal is not

2:02:322:02:37

agreed with the EU. That is what the

government hopes and expects to

2:02:372:02:42

achieve. This Bill is about laying

the groundwork for our successful

2:02:422:02:49

future outside the European Union.

Trade is clearly going to be a key

2:02:492:02:53

part of that. The UK has been a

great trading nation and the trade

2:02:532:02:59

with non-EU countries is equivalent

to about half our exports. Getting

2:02:592:03:04

arrangements right to support that

is vital. We need to pursue trade

2:03:042:03:09

deals with partners across the world

while at the same time keeping our

2:03:092:03:12

trade with the EU is frictionless as

possible and avoiding a hard border

2:03:122:03:18

between Northern Ireland and

Ireland. This Bill is a crucial

2:03:182:03:20

stepping stone to these new

arrangements.

The question is as on

2:03:202:03:29

the order paper. Mr petered out.

At

last, we have the ways and means

2:03:292:03:36

motion before the house. The Muslim

part of it is that it doesn't have

2:03:362:03:42

much to say about practically

anything about taxation cross

2:03:422:03:46

borders or trade which is somewhat

perplexing given the title of the

2:03:462:03:50

bill. The only word in the title

that is in any way reflective of the

2:03:502:03:56

title is the word bill. I wait with

bated breath for the customs bill

2:03:562:04:01

which I trust will have in this

regard, hopes springs eternal, more

2:04:012:04:06

substance to it. Perhaps we will see

more of the same powers, to alter

2:04:062:04:13

primary legislation going into the

back pockets of ministers. However,

2:04:132:04:17

in this ways and means motion, if it

is the warm acts of the customs

2:04:172:04:21

bill, I imagine it will be just as

disappointing, vague, OK, abstruse.

2:04:212:04:28

I look at the recommend is --

observations from the customs bill

2:04:282:04:43

legislating future customs VAT it

says routines, making a number of

2:04:432:04:48

observations which are worth

highlighting here. In paragraph 1.3

2:04:482:04:53

states that the paper gives rise to

an unusually complex mix of legal

2:04:532:04:58

and technical issues within equally

complex political constraints. This

2:04:582:05:02

is not our remit to enter into

debate about the political

2:05:022:05:06

constraints but a lack of clarity

around political constraints makes

2:05:062:05:09

the technical analysis is somewhat

more difficult.

2:05:092:05:17

I think that is a fair reflection in

measured tones on what we think.

2:05:172:05:23

Neal -- in the manner in which the

EU because the Asians have meant

2:05:232:05:30

that the deal that the PM wants name

a streamlined customs arrangements

2:05:302:05:35

with the vacillations of the

government in general and the back

2:05:352:05:38

secretary in particular and that is

very worrying. It is very worrying

2:05:382:05:42

and that the government continues to

be dragged kicking and screaming

2:05:422:05:46

into this chamber on any issue it

feels comfortable debating and when

2:05:462:05:49

it does it tries to curtail it. The

Institute also has something to say

2:05:492:05:54

in that paragraph 5.4 at 5.5, we

acknowledge the predicament of

2:05:542:06:00

needing to begin a legislative

process before knowing the outcome

2:06:002:06:04

of the negotiations, however, we

have concerns about the limited

2:06:042:06:06

level of scrutiny that is lawmaking

process allows. Given the political

2:06:062:06:12

uncertainty, the potential for

large-scale changes and tight

2:06:122:06:16

timescales, the bill we understand

will have the power to amend primary

2:06:162:06:21

legislation using secondary

legislation, raising similar

2:06:212:06:24

concerns about delegated powers as

with the EU withdrawal bill. And it

2:06:242:06:29

is even dragging its feet on the

production of the 58 impact

2:06:292:06:33

assessments from two weeks after the

house demanded them. Madam Deputy

2:06:332:06:39

Speaker, the opposition recognises

the need for the government to be in

2:06:392:06:42

preparation for an independent

customs and tariff regime, this is

2:06:422:06:46

logical and necessary, however that

does not mean giving the government

2:06:462:06:50

a blank cheque to concentrate power

in the hands of the executive. The

2:06:502:06:55

upcoming taxation cross-border trade

bill to outline the powers of the

2:06:552:06:58

new trade remedies authority whose

creation as outlined in the

2:06:582:07:03

government's trade bill, let me be

clear, while Labour supported the

2:07:032:07:06

creation of a truly independent

trade remedies authority to help

2:07:062:07:09

protect UK industry and at by the

government on how best to tackle the

2:07:092:07:14

dumping of state subsidised cheap

goods on the UK market, we don't

2:07:142:07:18

want to see the authority, high

elves --, Hiles by a catastrophe

2:07:182:07:29

best to dismantle key sectors of the

UK economy. Instead we want to see a

2:07:292:07:35

trade remedies authority that

reports directly to Parliament

2:07:352:07:37

rather than to the Department of

International trade. It should have

2:07:372:07:41

representatives from trade, the

trade union movement, British

2:07:412:07:44

business elite of the devolved

authorities. We will not allow this

2:07:442:07:50

has to be sidestepped by a

government consumed by chaos.

2:07:502:07:56

Whether it is by the Henry VIII

Paris EU withdrawal bill of the

2:07:562:08:03

delegated powers, this government

has shown an unhealthy obsession for

2:08:032:08:06

cementing power in the hands of the

executive and shying away from any

2:08:062:08:09

Parliamentary scrutiny. I will.

I

thank my honourable friend for

2:08:092:08:16

allowing me to intervene at this

part of his contribution. It seems

2:08:162:08:20

to me that the mantra of taking back

control during the EU referendum

2:08:202:08:25

essentially means taking back

control from ministers and not the

2:08:252:08:27

democratically elected parliament.

My honourable friend hits the nail

2:08:272:08:33

on the head, that has been the line

discovered has taken, the power

2:08:332:08:38

stops in Westminster and does not go

beyond. It is quite frankly a sham.

2:08:382:08:43

The government can't bring itself to

include in this way is an means

2:08:432:08:46

motion any reference whatsoever to

Parliamentary scrutiny. It does not

2:08:462:08:51

like that. At every opportunity even

if the government has contempt for

2:08:512:08:55

this house we will show the

government will be forced to explain

2:08:552:08:58

why it is so frightened of

Parliamentary scrutiny. At every

2:08:582:09:03

corner it will be required to

explain in the cold light of day why

2:09:032:09:08

it seems so reluctant to send

ministers to the dispatch box to

2:09:082:09:12

explain the government's rationale.

Now the government in its full

2:09:122:09:17

generosity will claim that it has

set aside eight days to debate the

2:09:172:09:19

withdrawal bill and how it has set

aside other days to discuss Brexit

2:09:192:09:24

but in the withdrawal bill itself it

is institutionalising the accretion

2:09:242:09:28

of powers to the executive that are

quite unheard-of in modern history

2:09:282:09:32

of this country. Madam Deputy

Speaker, frankly, we have got the

2:09:322:09:39

front bench huffing and puffing but

that is the reality, the accretion

2:09:392:09:42

of power to ministers is absolutely

disgraceful. We have to go back to

2:09:422:09:49

the Second World War to see powers

of this magnitude and extend

2:09:492:09:53

reserved to the government. And

which were after the one is

2:09:532:09:59

practical. They have the good reason

in that situation in so far it was a

2:09:592:10:06

national government, a true

coalition, united against one of the

2:10:062:10:08

most odious regimes. And the methods

being used to save in Parliament are

2:10:082:10:14

quite shocking, mad and everyday

Speaker, and I think history will

2:10:142:10:17

treat this government with the

contempt it deserves for its

2:10:172:10:21

fictional and attempts to

disenfranchise this house.

I thank

2:10:212:10:27

the honourable member for giving way

and I have patiently listen to what

2:10:272:10:29

he has to say at -- mad and everyday

speaker and he has referred to the

2:10:292:10:34

powers within the European

withdrawal bill and he has also

2:10:342:10:36

referred to the PRA which is not

the, well the operation of the PRA,

2:10:362:10:44

the independence or otherwise of the

TRA, which is not actually either of

2:10:442:10:48

the items included in this bill so

what is in this bill which he wishes

2:10:482:10:52

to make a point about Madam Deputy

Speaker?

The honourable member

2:10:522:10:56

misses the point, it is part of the

whole process of this government to

2:10:562:11:02

accrue and accrue powers to itself.

I know the honourable gentlemen and

2:11:022:11:06

ladies opposite do not seem to grasp

the concept of that but that is the

2:11:062:11:11

fact, the fact is that the

government continue to pool powers

2:11:112:11:14

to itself and it pulls powers to

itself and does not devolve into any

2:11:142:11:18

of the other NES, any of the other

nations.

I thank you for giving way

2:11:182:11:26

but I think he is struggling on this

because it makes evident sense that

2:11:262:11:29

the government should have the

powers to be able to deal with all

2:11:292:11:31

eventualities, perhaps you could

help by explain to us what is the

2:11:312:11:36

current policy of the Labour Party

on the customs union? Can we find

2:11:362:11:41

out, are they in favour or against

the remaining in a customs union in

2:11:412:11:46

fact to article to transition? And

how they are in favour of staying in

2:11:462:11:49

the customs union by way of a final

deal, which I think is an eminently

2:11:492:11:54

good idea.

I tell you what we are in

favour of, we are in favour of

2:11:542:11:57

Parliament -- Parliamentary

scrutiny. And we are in favour of

2:11:572:12:03

Parliamentary scrutiny. It was John

Bright who reportedly coined the

2:12:032:12:10

phrase the mother of Parliaments,

which is completely alien to the

2:12:102:12:14

side opposite and obviously the

honourable lady, I suspect he along

2:12:142:12:18

with many other radical and

Conservative parliamentarians would

2:12:182:12:21

be turning in their graves at the

idea that the government living on

2:12:212:12:25

borrowed time, living on borrowed

time, have the arrogance, hubris and

2:12:252:12:30

others with the blaster to treat

Parliament in the fashion this

2:12:302:12:34

government has -- is intent on

doing. Members of the other side

2:12:342:12:38

have to ask themselves this

question, if their constituents and

2:12:382:12:40

sent them to this house to acquiesce

in the systematic stripping away of

2:12:402:12:45

Parliamentary scrutiny, which is not

in the national interest, why didn't

2:12:452:12:49

send them here to hold the

government of the day to account

2:12:492:12:54

regardless of their party

allegiance? However, the minister

2:12:542:12:57

should take seriously the concerns

as I have raised, as have many

2:12:572:13:01

others in the house and outside the

house about their fast and loose

2:13:012:13:04

approach to the government, approach

the government is taking to power it

2:13:042:13:11

is good now. I will.

I thank the

honourable gentleman. He has not

2:13:112:13:21

answered the incredibly important

intervention made by my right

2:13:212:13:23

honourable friend the member for

Block store, and can I ask you

2:13:232:13:26

different question, Amendment E,

which is the unofficial opposition

2:13:262:13:32

resolution amendment that has been

tabled, will he be supporting it or

2:13:322:13:36

not?

The fact of the matter is, we

are not closing of options, which

2:13:362:13:42

settings to be an obsession, a

pathological obsession from other

2:13:422:13:45

sites do. So I hope between now and

the second reading, the government

2:13:452:13:51

will consider the importance of

comprehensive Parliamentary

2:13:512:13:57

oversight and pay attention to the

concerns of this house in relation

2:13:572:14:00

to this whole question.

Marcus Fish.

Thank you Madam Deputy Speaker. It

2:14:002:14:09

is a pleasure to stand here tonight

and to talk about this bill on

2:14:092:14:14

behalf of my constituents in Yeovil.

They might be a bit surprised having

2:14:142:14:20

listened to the honourable death the

other side's speech just now,

2:14:202:14:26

thinking that there was no point to

this place at all. But actually what

2:14:262:14:28

we are doing here tonight is giving

her consent if we pass these

2:14:282:14:34

resolutions to the government

bringing in a bill which is a key

2:14:342:14:40

part of the enablement of the proper

machinery of government if and as we

2:14:402:14:45

leave the European Union. This is

not a warm up act for the bill

2:14:452:14:52

itself, this is a gateway that we

need to give it, which is entirely

2:14:522:14:58

sensible. This is about her consent,

essentially, for the government

2:14:582:15:04

making changes to financial matters

that will affect everyone of our

2:15:042:15:06

constituents. It is as part of those

mechanics that there is a massive

2:15:062:15:13

opportunity that we see you now to

effectively set our own tariffs and

2:15:132:15:17

our own duties as we go forward as a

nation to set their own trade policy

2:15:172:15:25

and all that goes with that. But it

is a very technical matter. I will

2:15:252:15:30

give way.

I think -- I thank the

honourable member for giving way. He

2:15:302:15:35

talks about this as though it is

entirely a unilateral decision on

2:15:352:15:38

our part, what tariffs and trade

agreement we have. We have to get

2:15:382:15:41

into the wide world and try and

negotiate these trade agreements.

2:15:412:15:45

Does he not acknowledge that we are

now in a much weaker bargaining

2:15:452:15:48

position than we were when we were

negotiating is part of the EU?

I

2:15:482:15:53

don't accept that at all but I thank

the honourable lady for her

2:15:532:15:56

intervention. I actually do think it

is a major opportunity to think

2:15:562:16:01

about what tariffs are best for all

of our economy and not always have

2:16:012:16:06

to be thinking about just the EU.

And I think it is actually a really

2:16:062:16:10

big opportunity to shape many of our

industry is rarely have just had to

2:16:102:16:15

cope with a one size fits all

solution for many years now. But our

2:16:152:16:20

ability to cope on day one is really

depended on these measures in the

2:16:202:16:26

bill which will be coming forward.

And I have to thank my honourable

2:16:262:16:31

friend for listening so intently

when I have been slightly haranguing

2:16:312:16:36

him on trying to ensure that we have

enough resource and application to

2:16:362:16:41

these very detailed matters. It is

absolutely right that it is a

2:16:412:16:45

complex business, leaving the EU, it

is not something that we can just

2:16:452:16:50

assume is going to be fine. We need

to devote resource and time and

2:16:502:16:56

application and really get all of

the best we can from the private

2:16:562:17:00

sector advising us and helping

others to make sure that we have the

2:17:002:17:04

technological solutions that are

going to be a part of those

2:17:042:17:09

processes.

I am grateful to my

honourable friend for giving way.

2:17:092:17:18

Would he agree with me that this

bill that we are debating this

2:17:182:17:22

evening is very much about preparing

the way for when we leave the EU?

2:17:222:17:26

And when we talk about the UK and

foreign forward with the global

2:17:262:17:31

Britain, it is about seeking every

possible opportunity that we can to

2:17:312:17:36

take our country forward.

The

honourable lady makes a very

2:17:362:17:38

important point and I completely

agree. It is massively important

2:17:382:17:43

that we looked at the actual data

and systems and I have talked a lot

2:17:432:17:49

with ministers up till now about the

customs declaration service, that

2:17:492:17:54

we're getting in place by January of

2019, and I have been meeting with

2:17:542:18:03

industry representatives and I have

to thank my honourable friend the

2:18:032:18:07

Minister from Dover for organising

some of these is a very efficient

2:18:072:18:11

fashion and I think they have been

incredibly useful in trying to bring

2:18:112:18:14

key civil servants and key

stakeholders upto date with exactly

2:18:142:18:19

what is required. And I don't think

we have to reinvent the wheel, we

2:18:192:18:24

don't need to go for the fill all

singing all dancing new solutions

2:18:242:18:30

overnight. I think there are some

practical steps that we can take in

2:18:302:18:34

the interim, we have from one of the

panels about a system called intros

2:18:342:18:39

that which is the system whereby the

economic flows around the European

2:18:392:18:47

Union based on actual transactions

are recorded and it was suggested

2:18:472:18:52

that it is possible to effectively

pulled on the dressing of different

2:18:522:19:01

liabilities onto that system through

the customs system in parallel with

2:19:012:19:04

it. So I think it is, you know, we

need to make sure what our partners

2:19:042:19:11

in the EU or any other part of the

world want quite frankly is to know

2:19:112:19:16

that we, when goods are moving

across the border with them that

2:19:162:19:19

they know what is in those

consignments and whether they need

2:19:192:19:24

to think about a tariff or think

about some other regular Tory

2:19:242:19:30

precision. It is massively important

that we can talk to her counterparts

2:19:302:19:38

on the other side and I would

implore ministers to try and

2:19:382:19:44

persuade the EU even though they

have been very reluctant up until

2:19:442:19:46

this point to allow the national

member states customs authorities to

2:19:462:19:52

talk properly to us about what data

interfaces are going to be required

2:19:522:19:58

for probably quite a lot of extra

volume that we are going to need in

2:19:582:20:02

terms of the number of transactions

and considerations that they are

2:20:022:20:06

going to have to make.

2:20:062:20:19

Either way, whether it is a ramped

up trade facilitation exercise which

2:20:192:20:27

is the option one that the minister

described earlier or whether it is a

2:20:272:20:31

partnership based on a new type of

tracing of the way goods move around

2:20:312:20:37

our economy and across that external

border from outside of hours and the

2:20:372:20:43

EU at the moment, we are going to

need to make locks of declarations

2:20:432:20:50

of one kind or another and we are

going to have to record those and

2:20:502:20:53

the other side are going to have to

be confident that what we say is the

2:20:532:20:57

status of these goods is in fact the

case. I just want to talk briefly

2:20:572:21:02

about the VAT processing, I think it

is the Cinderella of this

2:21:022:21:09

conversation over the last few

months, I think everyone's been

2:21:092:21:13

focused on the duty side and not

enough attention has been given to

2:21:132:21:18

the VAT side. The manner of

processing of VAT makes a difference

2:21:182:21:23

to many businesses. It is a major

cash flow issue to most businesses.

2:21:232:21:31

If we want to keep open to ideas

with our EU friends and allies and

2:21:312:21:39

if we want to have good facilitation

of cross-border trade, the ability

2:21:392:21:43

for example for a vendor to attend a

trade show and take samples with

2:21:432:21:50

them is something that we need to

address. If there is a VAT issue, it

2:21:502:21:56

could be a problem. It's also a

problem in the art world where very

2:21:562:22:01

high-value objects are moving

around. We need to think about that.

2:22:012:22:05

Happy to give way.

I agree exactly

with what he says. Does he share my

2:22:052:22:12

concern that at the moment because

the government isn't giving clarity

2:22:122:22:16

on this issue, it is very likely

that companies will have to deal

2:22:162:22:23

with the vagaries of the 13th

directive unless we keep our current

2:22:232:22:27

terms of trading whether it is

through the single market or not.

We

2:22:272:22:34

need clarity as early as we can in

the piece on all of these issues and

2:22:342:22:40

I have invited ministers to come

forward on that. Humming back to

2:22:402:22:44

what we heard about Ireland through

various interventions, one idea that

2:22:442:22:49

I'd like the minister to think about

is whether in the VAT resolutions we

2:22:492:22:57

are confining ourselves to much by

saying that we may not, or that the

2:22:572:23:01

government through the bill may not

make any amendments relating to VAT

2:23:012:23:06

on the rates and exemptions and zero

ratings, I say that because one of

2:23:062:23:10

the issues with the Irish border

historically and where the real

2:23:102:23:14

problems came from when Ireland was

given its independence, was the

2:23:142:23:22

amount of smuggling on the border

and the rates and the tariffs on

2:23:222:23:27

goods going into the UK were

definitely a major factor in that. I

2:23:272:23:32

just at out there as an idea that

one thing that we could look to do

2:23:322:23:35

to smooth the feeling and the actual

processes on the Irish border is, in

2:23:352:23:43

fact, to make sure that as far as

possible, our VAT rates are as

2:23:432:23:48

harmonised as they could be so that

there is notification for smuggling

2:23:482:23:51

there.

An extremely important point.

In connection with the Irish border,

2:23:512:24:00

would he agree with me that a

derogation already exists

2:24:002:24:05

potentially between the EU and

neighbouring states through EC

2:24:052:24:10

regulation 1931 of 2006 which allows

particularly within a certain

2:24:102:24:15

distance of the border, small and

medium enterprises to avoid duties

2:24:152:24:20

and customs, thus ensuring and

promoting cross-border trade. It

2:24:202:24:27

might be a model that could be

appropriate in the island of

2:24:272:24:31

Ireland.

I thank the honourable

gentleman for his intervention and

2:24:312:24:37

he makes a very interesting point. I

just want to finish by talking about

2:24:372:24:44

Ireland little bit more.

Essentially, the Irish economy is

2:24:442:24:47

probably more to lose than any other

party in the negotiations between us

2:24:472:24:52

and EU. We've been talking in our

papers about wanting to name the

2:24:522:25:01

common transit convention. They are

incredibly dependent on that. 80% of

2:25:012:25:08

Ireland's trade with that goes by

our UK land bridge. There are many

2:25:082:25:15

issues with that, not least the

licensing of drivers who drive those

2:25:152:25:21

goods across the borders in a

seamless fashion at the moment. We

2:25:212:25:24

need to make sure that we focus on

enabling that. I can't take any more

2:25:242:25:30

because other people want to speak.

I just throw it out there that I

2:25:302:25:35

don't think that given the current

apparent attitude of the government

2:25:352:25:42

of the Republic are violent to some

of these matters, I don't think that

2:25:422:25:46

we should automatically assume that

we would allow them access to the

2:25:462:25:50

common transit convention and I

would say that ministers should in

2:25:502:25:55

fact take a pretty firm view of that

given that we certainly don't want

2:25:552:26:02

our islands and our nations to be

split into different areas. With

2:26:022:26:10

that, very happy to support these

resolutions.

Thank you very much, Mr

2:26:102:26:21

Deputy Speaker. I'm pleased that the

government have finally brought

2:26:212:26:27

forward something that is at least a

bit more solid than previously.

2:26:272:26:33

Albeit, not yet very solid. Having

looked at the Customs White Paper

2:26:332:26:42

and Louisa May's resolutions, the

Customs White Paper says to refer to

2:26:422:26:48

the future partnership agreement.

The Customs White Paper says to

2:26:482:26:52

refer to the Northern Ireland

position paper. That says to refer

2:26:522:26:56

to the customs position paper.

Having read all of the things, I'm

2:26:562:27:03

still not particularly clear about

how Customs will look after the UK

2:27:032:27:07

leaves the EU. Not just I'm not

clear about it, I'm not clear how

2:27:072:27:14

the government wants it to look. The

only thing I'm clear about is that

2:27:142:27:17

they wanted to be as close to

frictionless as possible but they

2:27:172:27:21

have not made any clear commitment

about how exactly they expect that

2:27:212:27:26

to work. Having a look at some of

the things they have said in some of

2:27:262:27:30

the various papers that we are

looking at, one of the things that

2:27:302:27:34

they have said about Northern

Ireland, for example is that they

2:27:342:27:39

want to agree a time limited into

fermentation period that allows for

2:27:392:27:42

a smooth and orderly transition. I

think now is an early period. Before

2:27:422:27:51

now would have been a good time

which to make those decisions and

2:27:512:27:55

commitments and we should be there

to business about what the direction

2:27:552:28:01

of travel is. We are not there yet.

We are very close to Brexit Bay. It

2:28:012:28:06

is happening in March 20 19. The

government has not been cleared with

2:28:062:28:15

businesses about what its

aspirations are out for how our

2:28:152:28:22

Customs is going to look. It is

undoubtedly the case that we benefit

2:28:222:28:27

from being members of the EU single

market and we benefit from being

2:28:272:28:31

members of the Customs union. Even

those people who are most severe

2:28:312:28:36

sleep in favour of Brexit agree that

we benefit from these things. The

2:28:362:28:41

lower estimates of the GDP loss from

leaving the customs union and single

2:28:412:28:47

market are that we will lose 3.8%

GDP. Other estimates of the trade

2:28:472:28:55

deals that we will strike with

Japan, USA, Canada, New Zealand and

2:28:552:29:02

Australia all added together are

2.37 centage points. Significantly

2:29:022:29:07

less than 3.8 that we are going to

lose. Even at the best estimates, we

2:29:072:29:11

are going to be down and some of

those companies countries the EU a

2:29:112:29:21

is close to striking a deal with

anyway so they are notional

2:29:212:29:24

benefits. A respected and

independent Institute has said that

2:29:242:29:32

a Huybrechts is could cost Scotland

5% GBP -- GDP. -- hard Brexit. In

2:29:322:29:49

services alone, Scotland will lose

£5 billion in exports. That is

2:29:492:29:54

really significant. Scottish

Government analysis says that a

2:29:542:30:00

Scottish GDP could be around 11

billion a year lower by 2030 than if

2:30:002:30:06

Brexit didn't occur. For these

reasons and for many others, we have

2:30:062:30:09

been clear from the beginning that

we are against the exit. We are

2:30:092:30:14

against driving off this cliff and

the incredibly hard landing that

2:30:142:30:18

will happen when the Grexit bus hits

the bottom. Despite being against

2:30:182:30:25

all these things, what we're trying

to do in these talks is mitigate. If

2:30:252:30:33

we are going to drive off the cliff,

we want fewer spiky things at the

2:30:332:30:37

bottom to be impaled upon. A number

of things that I would want to

2:30:372:30:43

discuss in relation to this bill.

The government's White Paper on

2:30:432:30:48

customers. I don't know how many of

you have read it. The two scenarios

2:30:482:30:55

that the government is proposing for

ways in which the future

2:30:552:30:59

relationship could work in terms of

Customs. It also talks about

2:30:592:31:03

contingency options. This is if the

government doesn't get this

2:31:032:31:08

aspirational bespoke deal that

nobody ever has got and they don't

2:31:082:31:12

know what it is. One of the things

it says which I think people at home

2:31:122:31:18

would be interested in hearing is

that in a contingency situation, if

2:31:182:31:23

people were being posted past months

-- parcels from family members or

2:31:232:31:31

businesses from within the EU, there

wouldn't be a £15 VAT threshold.

2:31:312:31:36

These are ways and Means resolutions

that we are supposed to be agreeing

2:31:362:31:39

to date allows the government to

charge VAT on gifts that are being

2:31:392:31:45

sent to from the EU. It is

ridiculous. In other countries, if

2:31:452:31:50

somebody gets a parcel from somebody

in America, if it is less than £15,

2:31:502:31:55

it is VAT exempt. The government is

proposing in a content is G --

2:31:552:32:03

contingency situation where this

wouldn't happen be the case. People

2:32:032:32:07

are going to be unhappy that they

are going to have to pay a customs

2:32:072:32:11

charge on presents or things coming

from the EU. These things have not

2:32:112:32:16

been laid out for people or

discussed. I talked about the

2:32:162:32:21

various papers. We are up to four.

They have been compressive lease

2:32:212:32:26

average. Not just by experts but by

businesses who are the real experts

2:32:262:32:33

in these things. Talking about

Rohler, roll ports and the speed at

2:32:332:32:41

which they have to come through the

ports. The government has been

2:32:412:32:46

trying and failing to solve the

problems with operation Stack at

2:32:462:32:53

Dover. The plan is that they had for

sorting out operation Stack are dead

2:32:532:32:57

in the water and they have to start

again but don't worry, we will

2:32:572:33:01

definitely have something done by

March 2019 by which time the UK

2:33:012:33:05

leaves the Customs union and the

single market. Sa the honourable

2:33:052:33:14

member would agree that the oil and

gas industry largely trades outside

2:33:142:33:18

the EU.

They do not fear

international trade. Are they wrong?

2:33:182:33:26

I'm not saying anybody should fear

international trade. At its a very

2:33:262:33:31

good thing. Particularly for things

like productivity which the island

2:33:312:33:35

gas industry has been good at

bringing up. The thing about

2:33:352:33:39

productivity and international trade

is that a more international trade

2:33:392:33:42

you have, the more international

productivity you have. Brexit is

2:33:422:33:49

going to result in the UK having

more say over the terms of some of

2:33:492:33:58

the trade deals with third

countries. It is not going to result

2:33:582:34:01

in more international trade. The EU

is international and made up of

2:34:012:34:05

another of the other countries and

there is going to be a reduction in

2:34:052:34:13

frictionless trade to the EU as a

result.

The honourable member will

2:34:132:34:20

have noticed a fair degree of anger

across the house. Some members of

2:34:202:34:26

the Saint obviously don't believe

that Brexit isn't going to lead to

2:34:262:34:32

increased international trade. They

have done the assessment. They could

2:34:322:34:37

publish those assessments and then

we could find out for ourselves.

2:34:372:34:45

I absolutely agree with my

colleague. There is also the case of

2:34:452:34:49

the National research Council, a

research there did a report that

2:34:492:34:54

talks about the differences between

very comprehensive free trade

2:34:542:34:59

agreements compared to being part of

an organisation like the single

2:34:592:35:02

market, which is pretty much

unparalleled in the cross-border

2:35:022:35:07

trade that it encourages. Being part

of a very close free-trade

2:35:072:35:09

arrangement does not allow you the

same access of trade in services. As

2:35:092:35:15

being part of the single market. It

does not allow you the same access

2:35:152:35:20

of trading goods as being part of

the single market. So even with

2:35:202:35:24

complaints of free-trade agreements

with every country in the world, we

2:35:242:35:26

are still going to lose out as a

result of this. Mr Deputy Speaker,

2:35:262:35:33

sorry I will give way once more.

I

am grateful to the honourable lady

2:35:332:35:37

forgiving way. She expresses in her

amendment a commendable --

2:35:372:35:43

commendable encouragement to the EU

which does its great credit but is

2:35:432:35:47

she also concerned in the interest

of being balanced and fair for much

2:35:472:35:52

of Africa and South America who at

the moment suffer the wet end of the

2:35:522:35:55

customs union in the importation of

raw food products into Europe, which

2:35:552:36:03

because virtually impossible for

many of them? Which you like to

2:36:032:36:07

comment on that since I'm sure her

party is very concerned about the

2:36:072:36:10

well-being of people in those

countries.

It is an interesting case

2:36:102:36:13

that the gentleman brings up, I have

looked at the impact of this

2:36:132:36:18

particular test the week that the

WTO is set up, way developing

2:36:182:36:23

countries have a level of protection

in Paris. For example because of the

2:36:232:36:26

week that the WTO considers them,

because the developing countries, I

2:36:262:36:31

think there is a likelihood that

some of these things balance out but

2:36:312:36:34

as I say aye have not looked into

the exact details. I am aware that

2:36:342:36:39

some of those people who support

Brexit are suddenly concerned about

2:36:392:36:43

how developing countries are going

to cope with international trade,

2:36:432:36:47

having not been particularly

concerned about it before. I want to

2:36:472:36:49

move on and talk about some of the

impact in the changes that are

2:36:492:36:55

proposed. I mentioned already the

issues about receiving and sending

2:36:552:37:02

parcels. I want to quote from the

government's future customs paper.

2:37:022:37:06

It says trade is a key driver of

growth and prosperity. Stiglitz

2:37:062:37:10

greater business efficiency and

higher productivity, sharing

2:37:102:37:13

knowledge and innovation across the

globe. It goes on to say that it

2:37:132:37:18

provides the foundation for more

prosperous communities and insurers

2:37:182:37:22

more people can access a wider

choice of goods at a lower cost.

2:37:222:37:26

These are all argument for staying

in the customs union, not for

2:37:262:37:31

leaving the customs union.

Specifically on the issue of

2:37:312:37:33

businesses the government has in all

of these papers talked about

2:37:332:37:38

consulting businesses. In all of the

conversations that the government

2:37:382:37:41

has had they say they have spoken to

businesses. The problem is Mr Deputy

2:37:412:37:45

Speaker that although governments

are speaking to the government,

2:37:452:37:50

businesses are lobbying the

government, businesses are being as

2:37:502:37:53

loud as they possibly can be about

the impact of this. The government

2:37:532:37:58

is not listening. The government has

this aspirational picture of how

2:37:582:38:02

wonderful Brexit is going to be and

no matter how much evidence they are

2:38:022:38:07

provided with to the contrary they

still continue to push on, even

2:38:072:38:12

people who supported remain on the

government benches are suggesting

2:38:122:38:17

that we will have benefits from

Brexit, which is not right in my

2:38:172:38:24

eyes. Mr Deputy Speaker couple of

other things, the customs

2:38:242:38:29

declaration service that was

mentioned by the honourable member

2:38:292:38:31

from Yeovil, is supposed to be up

and running by January 20 19. Now

2:38:312:38:39

the Minister is generally very good

at explaining these things and he

2:38:392:38:43

said that he is hoping to have it up

and running and have pilots in soon

2:38:432:38:47

and have it up and running by

January 20 19. Mr Deputy Speaker,

2:38:472:38:51

three months is not enough to fully

test a customs declaration service,

2:38:512:38:57

it is not enough to allow businesses

to be able to hire and out all of

2:38:572:39:03

the potential problems. It is not an

for them to get used to the red

2:39:032:39:07

tape. Just go back to the issues

that the government has in some of

2:39:072:39:10

the aspirations that it has in some

of the idea that it has that

2:39:102:39:15

honestly unworkable. In one of the

main principles that it sets out in

2:39:152:39:21

dealing with Northern Ireland,

Ireland's trade, it says, these are

2:39:212:39:28

the nine principles, consider how

best to protect the integrity of

2:39:282:39:30

both the EU customs union, single

market and trade policy and the new

2:39:302:39:36

independent UK customs regime,

internal market and trade policy. In

2:39:362:39:40

the context of finding imaginative

solutions by recognising the

2:39:402:39:43

solution will have to go on any

previous powers. That is an

2:39:432:39:46

aspiration without a solution. They

are not even putting forward a

2:39:462:39:52

potential solution, they cannot

think of anything to square this

2:39:522:39:55

circle and dig themselves out of a

hole they have fallen. This is an

2:39:552:40:00

unmitigated disaster, it is a

disaster for businesses, it is a

2:40:002:40:03

disaster for people at home. The

changes the government are proposing

2:40:032:40:06

are particularly -- and particularly

the customs duties that are going to

2:40:062:40:11

be put on good coming from and

leaving the UK to the EU and back,

2:40:112:40:18

those goods, a number of them clock

-- cross the border and number of

2:40:182:40:23

times. Organisations like car

manufacturers and our aerospace

2:40:232:40:27

manufacturers, those widgets for

want of a better word cross the

2:40:272:40:30

border from the UK to the EU and

back sometimes many numbers of times

2:40:302:40:34

before we come to the finished

product. If each of those times

2:40:342:40:38

there has to be a customs

declaration made, if each of those

2:40:382:40:41

times we have to have an increasing

even a few minutes then that causes

2:40:412:40:47

real problem is fully huge number of

businesses. Businesses are speaking

2:40:472:40:50

to the government and raising

concerns, the government is not

2:40:502:40:54

listening. What they need to do now,

they need to give a clear direction

2:40:542:40:59

to businesses, they need to be

absolutely clear today that the

2:40:592:41:03

aspiration, their intention is that

we will not have customs duties

2:41:032:41:06

between the UK and the EU and so

they need to support the amendment

2:41:062:41:12

on the order.

Ross Thomson.

Thank

you very much. Great Britain's

2:41:122:41:17

historical reputation as one of the

greatest trading nations on earth

2:41:172:41:22

can be revived and rejuvenated by

Brexit. In freeing ourselves from

2:41:222:41:30

her EU blinkers we can now open up

our eyes to the rest of the world

2:41:302:41:36

and the vastly opportunities that

lie ahead of us. Scotland is a proud

2:41:362:41:41

partner in the UK has played a

crucial role in cementing Britain's

2:41:412:41:46

place as a truly great trading

nation. The city of Glasgow for

2:41:462:41:52

example was a key trading centre for

the UK and acted as an international

2:41:522:41:57

business hub. For the last 40 years

the UK has illegally been forbidden

2:41:572:42:02

from striking its own trade deals. I

would like to make progress. As we

2:42:022:42:11

decouple from the EU, I am excited

by the opportunity for Scotland to

2:42:112:42:15

play a key role in the global

trading Britain once again.

I'm very

2:42:152:42:22

grateful to the honourable gentleman

forgiving way. He and I argued

2:42:222:42:26

during the Scottish independence

referendum one of the key issues in

2:42:262:42:30

Scotland not leaving the UK was

because they believe the UK single

2:42:302:42:32

market and that would mean a hard

border at Berwick. Does he think

2:42:322:42:36

that is the same with Northern

Ireland and the public?

Let's be

2:42:362:42:41

absolutely clear, given that

referendum campaign we were on the

2:42:412:42:43

same side. Let's be clear that on

the White Paper that was produced by

2:42:432:42:47

the Scottish Government they said on

page 210 that the UK could very well

2:42:472:42:51

leave the EU if we voted to stay

within the UK. I think everyone had

2:42:512:42:56

all the information at hand and

voted with their eyes open.

2:42:562:42:59

Therefore I think those are the

benches opposite have...

I'm

2:42:592:43:09

grateful for the honourable

gentleman for allowing to clarify,

2:43:092:43:12

we were only seen the during the

independence referendum at one of

2:43:122:43:15

the key arguments we both made was

that the UK as a single market would

2:43:152:43:21

book Scotland was to become

independent and it would require a

2:43:212:43:24

hard border. The question is why is

that not any different in Ireland

2:43:242:43:29

now?

No one wants to see a hard

border between the UK and Ireland,

2:43:292:43:34

but I was also clear in that

referendum that I have always

2:43:342:43:38

believed in Britain's future being

out with the EU, so I did make that

2:43:382:43:43

argument as I am sure that that

others were more honest than their

2:43:432:43:47

positions to within the Labour

Party. Scotland's exports are

2:43:472:43:53

world-renowned, I am sure myself in

the member from Edinburgh South can

2:43:532:43:57

agree on that. Whiskey is just one

example of a British export success

2:43:572:44:03

story. With more than 90% of Scotch

whiskey being sold out with the UK.

2:44:032:44:08

I would like to make more progress.

The city I represent, Aberdeen, is a

2:44:082:44:13

global leader in some of the most

innovative sectors such as life

2:44:132:44:17

sciences, new oil and gas technology

and food and drink. As oil capital

2:44:172:44:21

of Europe Aberdeen is a global city,

and new bilateral trade deals

2:44:212:44:26

whether that is with the US, South

America, Africa or the Middle East

2:44:262:44:30

will help the Granite city grow and

take advantage of trade. No thank

2:44:302:44:33

you. Take advantage of trade inward

and outward investment. Further

2:44:332:44:41

striking new trade deals will help

unlock the potential of many more.

2:44:412:44:46

Scottish businesses helping to make

their mark right around the world

2:44:462:44:50

and boosting our economy right here

at home, too. In order to seize

2:44:502:44:54

these opportunities and make the

greatest possible success of them

2:44:542:44:59

Britain needs to be ready on day one

of our exit from the EU for new

2:44:592:45:05

trade relationships. And on this

point the clock is now ticking. That

2:45:052:45:10

is why this customs bill is so

important. Irrespective of any

2:45:102:45:15

agreement reached between the UK and

the EU is part of the negotiation

2:45:152:45:18

and its process, the UK will need

primary legislation for its own

2:45:182:45:25

stand-alone customs regime and to

amend the VAT and excise regime so

2:45:252:45:30

they can function effectively after

the UK has left the EU. This bill

2:45:302:45:34

will contain a framework that lasts

for a new UK customs regime, it will

2:45:342:45:39

lay before us the necessary

conditions to allow new arrangements

2:45:392:45:43

on customs to be put in place

depending on whatever outcomes the

2:45:432:45:49

Brexit negotiations are such as a

fermentation of negotiated

2:45:492:45:51

settlement with the EU or leaving

the EU without an agreement on

2:45:512:45:56

customs. I am sure that all members

in this house what our withdrawal

2:45:562:46:00

from the EU to provide as much

certainty and continuity is possible

2:46:002:46:04

for our businesses, employees and

consumers. Currently the majority of

2:46:042:46:11

governing systems in the UK are

contained in EU was such as the EU

2:46:112:46:14

and Customs code it is a button at

the stage that new domestic

2:46:142:46:17

legislation is brought forward and

put in place for when we leave the

2:46:172:46:20

EU in March 20 19. Depending on the

outcome of the negotiations with the

2:46:202:46:27

EU the government will want to

consult with possible changes to the

2:46:272:46:29

slot to help UK businesses, but now

was the time to help businesses in

2:46:292:46:35

all other constituencies by

providing the continuity exist -- in

2:46:352:46:41

existing rules impossible. Further

the government will ensure that its

2:46:412:46:44

future customs regime as it does at

present is consistent with

2:46:442:46:48

internationally agreed rules and

arrangements. So what does this mean

2:46:482:46:52

in practice? As we all more trade is

not just about the triggers we

2:46:522:46:57

strike already growing markets are,

it is also about tariffs, regular

2:46:572:47:01

Tory barriers and things we set as

part of UK policy. This bill tries

2:47:012:47:09

to establish a new UK charity charge

ditty on goods, set in very roots of

2:47:092:47:14

customs duty and suspends duty at

important -- at import and certain

2:47:142:47:19

circumstances. The UK can set

preferential duties, for example to

2:47:192:47:26

developing countries. Free and fair

trade is the greatest poverty

2:47:262:47:32

alleviation policy and as the

Secretary of State for International

2:47:322:47:36

Development is ready highlighters,

over the last generation more than 1

2:47:362:47:39

billion people hadn't taken out of

abject poverty thanks to the success

2:47:392:47:42

of global trade. Therefore this bill

will enable the development of

2:47:422:47:45

policy that helps the world Buddhist

and developing countries to trade

2:47:452:47:50

their way out of poverty rather than

simply depend on aid. And as we said

2:47:502:47:55

an independent UK trade policy for

the first time in 40 years and take

2:47:552:47:59

up our own seat in the World Trade

Organisation, we as champions of

2:47:592:48:02

free trade can be at the forefront

of ensuring that across the world

2:48:022:48:05

there is an ever widening shelling

of prosperity, a prosperity which

2:48:052:48:10

encourages and develop social

cohesion, underpinned political is

2:48:102:48:14

-- belittle stability and support

conflict resolution, which supports

2:48:142:48:17

our own national security aims. Also

contained in this bill is the

2:48:172:48:21

ability for the garment to introduce

trade remedies to protect domestic

2:48:212:48:26

industries from injury caused by

dumping subsidised or unexpected

2:48:262:48:29

surges on imports. In all of this

debate is the key point to bear in

2:48:292:48:34

mind to stress is that once the UK

is outside the customs union we will

2:48:342:48:38

take our destiny into their own

hands and we will be able to

2:48:382:48:43

determine their own overall

independent trade policy. We will no

2:48:432:48:45

longer be bound by the EU

protectionists tariff structure. We

2:48:452:48:50

will have the choice to lower duties

on goods and to lead the world in

2:48:502:48:53

free and fair trade. We can take

forward a policy that liberalise

2:48:532:48:57

trade. I'm excited and optimistic

about the deeper and freer trade

2:48:572:49:01

deals he will be able to strike. I

will support businesses and services

2:49:012:49:05

in my constituency. The golden

opportunities the opportunity to

2:49:052:49:09

open up our markets and lead the

world and liberalising trade across

2:49:092:49:12

the globe. It is not every day that

an economy the size of the UK gets

2:49:122:49:16

to set up a new Department for

trade, gets to set its own trade

2:49:162:49:20

policy, this opportunity will not

come again so let seize it with both

2:49:202:49:23

hands.

Ian Murray.

Thank you very

much. I will move in energy and

2:49:232:49:32

effort the order paper in my name

and that of my honourable friend 's.

2:49:322:49:36

Can I first they say to the member

for Aberdeen South, the reason I did

2:49:362:49:43

make the event is open to his speech

which I did not agree with the word

2:49:432:49:47

he said but I thought it was a good

speech and I know he and I have

2:49:472:49:50

always disagreed on the EU, and

robotic -- both respect each other's

2:49:502:49:56

positions for doing that. I am a

member for Parliament and elected

2:49:562:49:59

member who wishes to stay in the EU,

I am very much pro-EU and I know

2:49:592:50:02

he's very much anti-European Union

but I do have to say to the

2:50:022:50:06

honourable gentleman that the

incoherence of the two arguments

2:50:062:50:10

that he makes that we can leave the

single market and the customs union

2:50:102:50:15

and the EU and have a frictionless

seamless invisible border between

2:50:152:50:20

Bath and Ireland and the Republic of

Ireland when he made the argument

2:50:202:50:24

during the Scottish and the tennis

referendum that leaving the --

2:50:242:50:28

leaving the single market would mean

a hard border in good services and

2:50:282:50:31

movement of people is completely

intellectually incoherent and I

2:50:312:50:34

think he does the issue of fighting

against the scourge of independence

2:50:342:50:41

in Scotland no good by making these

contradictory arguments. I do say to

2:50:412:50:47

him as someone to merely highlight

the point that many of the arguments

2:50:472:50:50

that are colleagues in the Scottish

National Party make about staying in

2:50:502:50:54

the EU and working with our closest

colleagues and neighbours with

2:50:542:50:57

regards to trade goods and free

movement of people is completely

2:50:572:50:59

contrary as well.

2:50:592:51:09

I warned politicians that when they

play with fire they tend to get

2:51:102:51:13

burned.

I am grateful for the

honourable gentlemen, may I bring

2:51:132:51:17

him back to the amendment he, it

closes us options and prevent us

2:51:172:51:24

from imposing tariffs on Pigem the

EU. He has the scribe such closing

2:51:242:51:29

off of options as pathological in

his speech. The honourable gentleman

2:51:292:51:32

always try smears being a very nice

chap. -- always seems to be first at

2:51:322:51:41

I was anticipating that, just not

quite as early in my contribution. I

2:51:412:51:46

said to the honourable gentleman

that I agree and Che his condiments.

2:51:462:51:49

He is one of the nicest gentlemen in

this house as well. If I could just

2:51:492:51:53

read out the line, if I could find

it because it was much later in my

2:51:532:51:57

contribution from the Labour Party

byes position with regards to the

2:51:572:52:01

customs union. But position is to

have tariff free access throughout

2:52:012:52:07

the transition period with the added

option of the UK staying in the

2:52:072:52:10

customs union. So that is the

position of our front bench, one

2:52:102:52:14

that is perfectly clear and chimes

perfectly well with my amendments EN

2:52:142:52:18

and F2 this and means bill. Can I

also pay tribute to the honourable

2:52:182:52:24

member for Aberdeen, disappointed

her amendments weren't selected in

2:52:242:52:27

this position. She has done a lot of

work in bringing us to this place

2:52:272:52:31

with regards to the ways and means

petition in front of us, and I think

2:52:312:52:36

the arguments it will have very much

chime with the fact that we both

2:52:362:52:39

want to stay within their singles

market and the customs union, not

2:52:392:52:41

from any ideological perspective,

but from the businesses in the north

2:52:412:52:47

and south require us to do that. It

is impossible to suggest the United

2:52:472:52:51

Kingdom should have exactly the same

benefits of the single market and

2:52:512:52:57

customs union, have a frictionless

border and tariff free access not

2:52:572:53:01

keep the single market and the

customs union on the table. Just

2:53:012:53:03

doesn't make sense.

He is making a

very powerful case. Often it is said

2:53:032:53:11

sometimes we just need to supply

this place. If it walks like a duck,

2:53:112:53:15

talks like a duck, it is a duck. If

everything the government is saying

2:53:152:53:19

they want to looks like, sounds like

the customs union and the single

2:53:192:53:22

market, why on earth are we wasting

time debating other things?

I am

2:53:222:53:28

tempted to say it is because they

are all crackers, but I'm sure that

2:53:282:53:32

will not go down very well in the

chamber and I gave up on dad jokes

2:53:322:53:36

on time ago but my honourable friend

is right. It is indeed the case that

2:53:362:53:41

the government are actually arguing

for the single market and the

2:53:412:53:44

customs union but don't want the

single market and the customs union.

2:53:442:53:47

I think that is why the customs

union Bill which we will see

2:53:472:53:50

tomorrow will show quite clearly

that the government are hell-bent in

2:53:502:53:56

their negotiations with the European

Union to take us off a cliff edge

2:53:562:53:59

and no deal would probably be their

preferred option with regards to

2:53:592:54:02

that and that is what they are

promoting with this ways and means

2:54:022:54:06

resolution.

Would my honourable

friend be intrigued to know that

2:54:062:54:09

apparently a former minister in the

department for exiting the European

2:54:092:54:12

Union plans to make a speech

tomorrow arguing for just that

2:54:122:54:15

proposal, that we should abandon all

plans, trade talks and move ahead on

2:54:152:54:18

the way no deal WTO Brexit.

If that

is the case, the one thing that will

2:54:182:54:25

fall from that speech is that anyone

who were surprised that the minister

2:54:252:54:29

makes that speech has not been

listening to the debate today

2:54:292:54:32

because it seems that the whole

thrust of this government's

2:54:322:54:35

negotiating position so far has been

we should just walk away, a no deal

2:54:352:54:39

would be the best deal to have, and

as my honourable friend from

2:54:392:54:43

Lewisham East said to the Prime

Minister at Prime Minister's

2:54:432:54:46

Questions not long ago that the

Prime Minister is in thrall to the

2:54:462:54:49

stream like -- right wing Brexiteers

of the Conservative Party which is

2:54:492:54:56

dictating their policy.

I thank my

honourable friend forgiving way. It

2:54:562:55:04

is very important point he makes,

should there be a no deal, we have

2:55:042:55:08

to think about investment in this

country because a lot of

2:55:082:55:11

international companies are vested

in this country with the option of

2:55:112:55:14

being able to trade in Europe and

could have very serious

2:55:142:55:20

consequences, for industry in

particular.

It does. I will come

2:55:202:55:23

onto more of these arguments later

on but the foreign affairs select

2:55:232:55:27

committee of which I am a member and

visited the border regions in

2:55:272:55:29

Ireland and Northern Ireland just

last week, and one of the key

2:55:292:55:33

concerns from businesses who employ

many thousands of workers on either

2:55:332:55:36

side of the border was they used the

UK as the transit into the European

2:55:362:55:42

Union, we are the landing strip for

all of the goods they export through

2:55:422:55:45

the United Kingdom into the European

Union because it is the fast as

2:55:452:55:48

possible way of doing that. The

alternatives are not suitable for

2:55:482:55:51

their businesses that would be

exactly the same for businesses in

2:55:512:55:56

Coventry, Aberdeen, businesses and

Edinburgh South and indeed the

2:55:562:55:58

honourable gentleman for Aberdeen

South spokes are eloquently about

2:55:582:56:02

the Scotch whiskey industry. One of

the key things is they need easy

2:56:022:56:07

access to the market in which to

sell their products and they too are

2:56:072:56:11

championing for as close a deal with

the customs union as possible.

My

2:56:112:56:17

honourable friend mentions the

Scotch whiskey industry, he will be

2:56:172:56:21

aware that the finest Scotch whiskey

in the world is seldom ceramic

2:56:212:56:25

bottles made in my constituency, and

exiting the European Union without a

2:56:252:56:29

proper trade deal will see not only

the price of the whiskey drop but

2:56:292:56:31

also the cost of the bottle, which

puts jobs in my constituency under

2:56:312:56:36

threat. What does he make of the

government's proposal so far for

2:56:362:56:41

market trade Marie 's -- remedies?

I

am trade my Ashun Wu I am glad that

2:56:412:56:47

my honourable friend has made that

point, because it is a UK wide

2:56:472:56:52

industry. If you disturb the main

driver of that, which is indeed the

2:56:522:56:58

whiskey coming out of Scotland, you

certainly disturb attention of the

2:56:582:57:02

jobs in your constituency.

Much as I

enjoy a decent Mort whiskey, the

2:57:022:57:10

impact of leaving the customs union

would be far greater of course, and

2:57:102:57:13

if we take into account the

agricultural industry, the defence

2:57:132:57:18

in Street, aerospace, automotive, it

is quite clear that the complex

2:57:182:57:21

supply chains that we have at the

moment in an integrated European

2:57:212:57:27

Union marketplace could severely

disrupt the UK economy if we don't

2:57:272:57:30

get this right.

That is why this

ways and means motion, the three

2:57:302:57:36

motions we have before us, and the

customs bill when it comes forward,

2:57:362:57:41

and the trade bill and a EU

withdrawal bill, are so important,

2:57:412:57:44

that brings me to one of the key

points.

Before he moves off the

2:57:442:57:49

Scotch whiskey element I just wonder

whether he would like to come and on

2:57:492:57:52

the fact that recently several of us

were in the room, and the groovy and

2:57:522:57:57

ministers asked us, the British

ambassador, what we would want out

2:57:572:58:04

of a new fair trade deal with --

free trade deal with Peru after

2:58:042:58:09

living Brexit? The preview and said

we know we want, we want all Scotch

2:58:092:58:12

whiskey to be made in Carew and not

to be made in Scotland, or at least

2:58:122:58:17

40% of it, or at least bottled in

Peru, which rather undermines the

2:58:172:58:22

whole argument made by the

honourable member for Aberdeen South

2:58:222:58:26

earlier, doesn't it?

Yes, and it

takes me down a road that the death

2:58:262:58:29

of the speaker made. In terms of the

issue around Scotch whiskey, not

2:58:292:58:35

only does the EU give it solid legal

protection but it also means you

2:58:352:58:40

have to have the Scotch whiskey made

in Scotland, and indeed my

2:58:402:58:46

honourable friend from Stoke has

already highlighted the fact it is a

2:58:462:58:49

supply chain Christina the kingdom

and we will be competing with

2:58:492:58:51

markets that are much cheaper to

market and packet and produce. It is

2:58:512:59:01

money that pays for our public

services and the jobs that keep

2:59:012:59:07

people employed. Just while on that

particular issue, I don't know it is

2:59:072:59:11

the minister will be at the tiller

is what representation he is making

2:59:112:59:14

in these talks to leave the European

Union about defending some of the

2:59:142:59:18

big industries like aerospace,

automotive is, the food & Drink

2:59:182:59:22

industry underpinned by the Scotch

whiskey industry in Scotland and

2:59:222:59:26

what representation sea is going to

make? Because it was quite clear in

2:59:262:59:29

the 20 minutes or so that the

minister spoke, but he said in

2:59:292:59:34

answers to many questions from my

honourable and right honourable

2:59:342:59:36

friend that HRC will need more

resources, customs will need more

2:59:362:59:40

resources, everybody well. They

can't tell us how much, while they

2:59:402:59:44

were required, when they will get

them and whether it will be enough.

2:59:442:59:48

It is very easy to talk as a

government minister in platitudes

2:59:482:59:53

but actually we need solid answers

as to how many people this will

2:59:532:59:57

mean, how many it will require, and

what the consequences will mean for

2:59:573:00:03

the public purse.

I thank him

forgiving way, is he as surprised as

3:00:033:00:07

I am that there are members opposite

who seem to be quite content with

3:00:073:00:13

recruiting 3000 to 5000 more people

for HMRC, 1200 people to work in the

3:00:133:00:20

Home Office, many of them from the

EU because they are short of staff,

3:00:203:00:24

incidentally. Wasn't this about

getting rid of red tape? Yet it

3:00:243:00:29

seems the government is willing to

invest huge amounts in creating more

3:00:293:00:33

amounts of rich tape -- red tape.

That is a secondary argument the one

3:00:333:00:37

I have been making about the

government saying quite clearly we

3:00:373:00:40

want other thing to be as close as

possible, we want to be

3:00:403:00:44

frictionless, as close to the

customs union as we currently are.

3:00:443:00:48

If you want that, if it walks like a

duck and sons like a duck it is

3:00:483:00:52

probably a duck, as my right

honourable friend says. I have never

3:00:523:00:55

understood the government's position

of taking the single market of the

3:00:553:00:58

customs union off the table. They

immediately took those two things

3:00:583:01:04

off the table which meant the

negotiating position at the very

3:01:043:01:07

start was diminished, and diminished

for all the reasons that my

3:01:073:01:09

honourable friend has just

mentioned. I am happy to give way.

I

3:01:093:01:15

wonder whether he is away, he

probably isn't because I haven't

3:01:153:01:18

told him yet, that a couple of weeks

ago I asked the Secretary of State

3:01:183:01:26

for Brexit whether the Canadian deal

free trade agreement would be a good

3:01:263:01:32

deal for Britain, and he said no,

because it wouldn't be as good a

3:01:323:01:37

deal as the customs union. They

would leave us worse off. I cannot

3:01:373:01:43

see how one could possibly therefore

argue that one should automatically

3:01:433:01:47

discount staying in the customs

union.

That is indeed the case. The

3:01:473:01:55

deal that the EU has been doing with

Canada has been held as a blueprint

3:01:553:02:00

for what world trade agreement

should look like in the future and

3:02:003:02:02

indeed we look like we are about to

walk away from it because we once

3:02:023:02:06

the better. If there was something

better I am sure Canada and the EU

3:02:063:02:09

would have negotiated that. I was

aware of the question he was going

3:02:093:02:13

to ask because I was sitting behind

when he prays that question to the

3:02:133:02:17

Secretary of State during Brexit

questions. I thank him for that

3:02:173:02:21

intervention. Can I just say the

three reasons why I brought these

3:02:213:02:25

amendments. The first one chimes

very much with my honourable friend,

3:02:253:02:28

the member for Bootle, who moved the

opposition to the ways and means

3:02:283:02:34

resolution from the front end. That

is about Parliament having a say.

3:02:343:02:38

Now taking back control became the

strapline of the Leave campaign

3:02:383:02:43

during the EU referendum, but if

taking back control is truly what we

3:02:433:02:47

wish to do, and I think that is what

the public wish us to do as well,

3:02:473:02:50

then taking back control should

surely mean taking back control for

3:02:503:02:53

this Parliament. Whether it be the

EU withdrawal Bill going through the

3:02:533:02:58

house at the moment, all the ways

and means resolutions, or indeed we

3:02:583:03:02

will see it in the customs bill no

doubt when it is published, that

3:03:023:03:05

ministers will hold this power to do

anything they want, carte blanche,

3:03:053:03:08

with trade, tariffs, immigration,

with removing ourselves from the

3:03:083:03:15

EEA, the customs union, without any

recourse at all to this house. And

3:03:153:03:20

what we have seen over the last six

weeks or so with the government

3:03:203:03:24

championing a meaningful vote,

whatever a meaningful vote will

3:03:243:03:27

mean, I think it will either be

meaningful or is unlikely to even be

3:03:273:03:30

a vote. We have seen the government

from one side to the next, 1-dayers

3:03:303:03:34

never the same as the next, in terms

of what that actually means. Indeed

3:03:343:03:40

they have given three clarifications

on Monday just a couple of weeks ago

3:03:403:03:46

with the Secretary of State for

Exiting the European Union and the

3:03:463:03:48

Prime Minister saying contradictory

things, and then the spokespersons

3:03:483:03:51

having to say what they meant, and

they were both incorrect when they

3:03:513:03:56

were correcting it. We need not

platitudes. In the other place, we

3:03:563:04:06

had two correcting statements from

Lord Callaghan about what is it

3:04:063:04:09

about Article 50 on the other place

just if you weeks ago. We need to

3:04:093:04:12

have some answers to these

questions, which is why we on the

3:04:123:04:15

side of house are very doubtful of

the fact we can trust the

3:04:153:04:18

government. We will take the power,

we may not use it, we may use it, we

3:04:183:04:21

need to use it, we need to have it

in case we want to use it but trust

3:04:213:04:25

us of thing will be fine.

Unfortunately you have to earn that

3:04:253:04:28

trust and the opposition in this

Parliament has shown quite clearly

3:04:283:04:32

that we can't trust this government

to do things properly on our behalf

3:04:323:04:36

because they are proved not to be to

do so.

3:04:363:04:45

Giving Parliament said we want to

take back control, and now to my

3:04:453:04:48

second point, no one in this House

will have ever voted on leaving the

3:04:483:04:54

customs union or the singles market,

what the people of this country

3:04:543:04:59

voted for was to leave the European

Union, and when you start working

3:04:593:05:03

through the process and see how

complex it is, you see how difficult

3:05:033:05:07

it is for businesses and the

challenges and barriers, it is quite

3:05:073:05:12

clear that nothing can be as good as

what we have got at the moment.

3:05:123:05:16

There will be losers and no one of

voted to be poor. That is why

3:05:163:05:20

bringing this motion without

excluding tariffs to the European

3:05:203:05:26

Union, because no one has yet voted

for us to leave the customs union

3:05:263:05:30

which is vitally important to this

country, not just businesses here,

3:05:303:05:34

but also the island of Ireland, as

well. The third thing, and the main

3:05:343:05:43

thing, why this motion should be

defeated or at least amended, it is

3:05:433:05:48

clear the government are preparing

for no deal, we know they are

3:05:483:05:51

preparing for that because it has

been said already that the Brexit

3:05:513:05:59

minister... Former minister was

making a speech, saying the

3:05:593:06:02

government should prepare for no

deal, and it seems that the talks

3:06:023:06:06

are stalling and the clock is

ticking and listings to be no

3:06:063:06:09

further forward. The Brexit

secretary and the Foreign Secretary

3:06:093:06:14

have an attitude that we have

wrapped ourselves in the Union Jack

3:06:143:06:18

and we will ride the raves like Rule

Britannia and everyone will listen

3:06:183:06:21

to us. -- ride the waves. That is

the 19th-century British arrogance

3:06:213:06:29

which has created many problems

around the world, but we should be

3:06:293:06:32

looking at the fact that everything

the government is putting through

3:06:323:06:35

this house at the moment is on the

basis of a preparation for no deal

3:06:353:06:39

which would be utterly disastrous

for this country. Let me tell you

3:06:393:06:44

why it would be disastrous, the

economic impact of the customs

3:06:443:06:54

union, we have heard many people

talking about the economic impact,

3:06:543:06:58

our annual goods trade with other

countries within the customs union

3:06:583:07:02

is 466 pounds, -- 460 £6 billion,

but leaving it would be £25 billion

3:07:023:07:10

every year since 2030. If the

opposition was bringing a proposal

3:07:103:07:15

to this house that the government

had to consider, that cost £500

3:07:153:07:20

billion and £25 million every day,

he would bankrupt the sea would be

3:07:203:07:24

coming out of the minister's mouth

every single minute -- bankruptcy.

3:07:243:07:30

Because it would be irresponsible,

but that is what is being proposed

3:07:303:07:33

here. The cost of new tariffs alone

could be £4.5 billion a year on UK

3:07:333:07:41

exports, according to detailed

research, analysis by HMRC suggests

3:07:413:07:46

new customs checks could increase

the cost of imported goods. We have

3:07:463:07:53

already had reports that they will

be 17 mile tailbacks at ports across

3:07:533:08:00

the UK and I wonder if the minister

can remember when we had the strike

3:08:003:08:05

from French customs and how long

those customs queues became, very

3:08:053:08:10

quickly indeed. The impact on those

local communities alone was

3:08:103:08:15

devastating, let alone the

perishable goods sitting in trucks,

3:08:153:08:19

and I will finish this point... It

is OK to suggest there will be so

3:08:193:08:24

many customers Borders checks,

pushing things through as quickly as

3:08:243:08:28

possible, but the way he resolved

this position is to stay in the

3:08:283:08:31

customs union. -- the way you

resolve.

The humble bottle of fabric

3:08:313:08:40

conditioner passes four countries,

imagine how many times the

3:08:403:08:49

components of a Rolls-Royce will

cross a border, thousands of times,

3:08:493:08:52

so how can we afford to even think

about leaving the customs union?

I'm

3:08:523:08:58

grateful that you make that point,

but if I was the minister, I would

3:08:583:09:03

say, it will be OK, we want

something as close to the customs

3:09:033:09:08

union is possible, it will be

frictionless, it will only take

3:09:083:09:13

seconds, without spelling out how it

will work. Without saying how it

3:09:133:09:18

will operate. We are taking this on

trust, but many businesses around

3:09:183:09:23

the country needs certainty and they

are making decisions about their

3:09:233:09:25

years ahead.

Thank you for giving

way. Simon Hemmings, one of the

3:09:253:09:34

chief negotiators for Rolls-Royce,

he told the FT, if we are not in the

3:09:343:09:40

customs union, there will be job

losses. It could not be clearer than

3:09:403:09:43

that.

I'm grateful for that

intervention, because I said no one

3:09:433:09:48

voted in the referendum to be

poorer. The analysis shows that

3:09:483:09:52

already. I would be delighted if the

minister can tell me any analysis

3:09:523:09:59

that has been done internally and

externally, from any government

3:09:593:10:03

department, from any country, from

any think tank, from any

3:10:033:10:08

organisation, from any individual

business, and I know he is

3:10:083:10:13

listening, just pretending to ignore

me. Tell me any organisation that

3:10:133:10:17

has set this process which the

government is offering will make the

3:10:173:10:20

country better off. Absolutely none.

The silence is deafening. The

3:10:203:10:33

minister refuses to tell us any

organisation, just one, which it

3:10:333:10:37

says we will even be remotely and in

this process of leaving the European

3:10:373:10:41

Union, the answer is clearly none.

That is why this government is on

3:10:413:10:45

the wrong track and is gambling

everything, the family silver, on a

3:10:453:10:49

no deal. Let me continue regarding

the customs union and the impact

3:10:493:10:54

this will have. My friend mentioned

automotives, the Society of

3:10:543:11:05

automotive manufacturers and

traders, the people we trust when

3:11:053:11:12

they send budgets, I always read

this organisation because they are

3:11:123:11:20

the knowledge in automotive

manufacturing, they have said they

3:11:203:11:26

will be an average 4.5% on car

parts. That will push the cost of an

3:11:263:11:34

average car by £1500, we have

already had figures where they

3:11:343:11:39

showed you, and factoring and sales

is dropping dramatically and I think

3:11:393:11:44

if people were looking whether to

buy a new car for additional £1500,

3:11:443:11:49

they might not do so. I appreciate

the minister does not believe that,

3:11:493:11:55

but I'm more likely to believe the

figures from the organisation rather

3:11:553:12:03

than the minister. I'm happy to give

way.

He is happy with the situation

3:12:033:12:14

by which for all time we are locked

in a situation where we can never be

3:12:143:12:20

allowed to make a free-trade deal

with a country or a block or anybody

3:12:203:12:25

outside the EU, we are locked into a

body with a declining share of trade

3:12:253:12:30

and we are locking ourselves out of

trade with a growing market in Asia

3:12:303:12:33

and America, he is happy with that?

I'm happy with the intervention, it

3:12:333:12:39

allows me to say three things, the

reason that the Scottish whiskey

3:12:393:12:43

industry is doing so well is partly

because of EU free-trade agreements

3:12:433:12:46

with countries like South Korea, and

we are already in 57 free-trade

3:12:463:12:52

agreements, and the third thing, his

government have failed to even start

3:12:523:12:57

to negotiate one free-trade

agreement, the bluff and bluster

3:12:573:13:01

about being at the front of the

queue, seamlessly going into these

3:13:013:13:05

wonderful free-trade agreements, all

over the world, that would be great.

3:13:053:13:09

Is intervention contradicts his

first intervention, if you vote for

3:13:093:13:16

my amendments, we end up in WT rules

and not having any tariffs with the

3:13:163:13:22

European Union, we will have tariffs

with no month, we can ride the waves

3:13:223:13:27

and set up more than 57 free-trade

agreements with every country who is

3:13:273:13:30

banging at our door. I don't think

he's listing to these Foreign

3:13:303:13:36

Secretary and the trade secretary

when he doesn't hear that this is

3:13:363:13:40

becoming much more difficult --

listening to. These countries were

3:13:403:13:44

just a bit, low hanging fruit from

the magic money tree.

Thank you

3:13:443:13:54

forgiving way. Free-trade is to be

welcomed but in certain like the

3:13:543:14:01

ceramic industry, what we need is

protections against illegal dumping

3:14:013:14:04

of tiles and white ware which

affects our industry and puts jobs

3:14:043:14:09

at risk, so while the opposition

might talk about unilateral

3:14:093:14:13

free-trade and making the markets

open, but that can harm jobs and

3:14:133:14:19

employment and puts my constituents

in a poor position.

Absolutely,

3:14:193:14:24

illegal dumping something the house

should come back to an debate at

3:14:243:14:27

length because this is a key issue

around what will happen when we

3:14:273:14:31

leave the EU because we don't have

that block to defend us. Regarding

3:14:313:14:37

the first part of the intervention,

I have a great idea of how we can

3:14:373:14:42

advance free-trade in this country,

we could have a customs union and

3:14:423:14:45

the single market and that would

advance free-trade or we could come

3:14:453:14:49

out of it and end up in a situation

where we have 57 free-trade

3:14:493:14:53

agreements. I have a list of sectors

I wish to go through, but I won't in

3:14:533:15:01

the interests of time. Let me

briefly mention a few of the big

3:15:013:15:05

ones who have raised concerns for

top pharmaceuticals, one of the key

3:15:053:15:10

areas which drives corporation tax

into the public purse, the

3:15:103:15:15

Association of British

pharmaceutical industries has called

3:15:153:15:17

for free trade with the EU, prevent

those of a full member of the

3:15:173:15:22

customs union, so again, I pose the

question to the minister who opened

3:15:223:15:27

this debate, how is he going to make

sure that the pharmaceutical

3:15:273:15:33

industry which I would rather

believe that the government

3:15:333:15:35

minister, which has brought so much

economically to this country, how am

3:15:353:15:39

I supposed to believe the minister

of the pharmaceutical industry, they

3:15:393:15:46

say they want free-trade agreement

to those of a full member of the

3:15:463:15:49

customs union, but the government

have ruled that out. So what is the

3:15:493:15:54

minister going to say to the

pharmaceutical industry who say they

3:15:543:15:56

need that to be able to trade as

they are at the moment?

Would you

3:15:563:16:02

like to speculate on what

contribution the departure today of

3:16:023:16:06

the European Medicines Agency to

Amsterdam has made to our

3:16:063:16:08

pharmaceutical industry?

Well, it is

jobs. 900 jobs, and maybe even more,

3:16:083:16:16

when you think about the knock-on

effect. The government has given up

3:16:163:16:21

900 jobs, that is the tip of the

iceberg, if the pharmaceutical

3:16:213:16:25

industry can't get equivalence to

the current customs union, and many

3:16:253:16:28

other jobs will go? Before everyone

says that I'm just a remoaner

3:16:283:16:37

remoaner, well, if I'm just

defending the jobs of those are my

3:16:373:16:43

constituency, I'm happy. Give me a

badger I will say I'm proud, because

3:16:433:16:48

that means jobs -- give me a badge

and that will say I'm proud to be a

3:16:483:16:58

remoaner.

He keeps talking about the

views of experts, but we know the

3:16:583:17:03

other side are not keen on the views

of experts, maybe they will listen

3:17:033:17:06

this time?

I can answer the

intervention in one word, no,

3:17:063:17:14

because they clearly aren't going to

listen to the experts on these

3:17:143:17:16

issues. What they have done in this

country, they have given the seed of

3:17:163:17:22

doubt that none of us should listen

to experts and we are now in a

3:17:223:17:26

position whereby the country will be

much diminished as a result. Two

3:17:263:17:29

more sectors, the chemicals sector,

one of the key drivers of the UK

3:17:293:17:35

economy, we have a great chemicals

sector across the European Union,

3:17:353:17:41

they have said the best way to

guarantee no adverse disruption to

3:17:413:17:45

trade and business and to guarantee

only one adjustment is to seek to

3:17:453:17:49

retain our existing membership of

the single market and indeed the

3:17:493:17:52

customs union. The automotive sector

and the pharmaceutical sector and

3:17:523:17:58

now became a school

>> STUDIO: --

now

the chemical sector. And now the

3:17:583:18:12

shipping sector, the very sector

that takes the goods from these

3:18:123:18:17

islands to the continent, the UK

shipping sector have warned that the

3:18:173:18:20

UK is facing an absolute catastrophe

if it does not sort out a

3:18:203:18:27

frictionless and seamless border at

Dover and other ports. We know the

3:18:273:18:33

government keeps talking about a

frictionless and seamless border but

3:18:333:18:36

can't say what that actually means.

Can I suggest that the best way to

3:18:363:18:42

maintain or enhance the border and

to make it frictionless, to make it

3:18:423:18:45

seamless and operate as a single

market would be to retain our status

3:18:453:18:52

in the customs union because if we

were starting from scratch with a

3:18:523:18:56

blank sheet of paper to determine

the best way for an island nation to

3:18:563:18:59

trade with other nations it would be

to have a customs union with those

3:18:593:19:04

nations where you did not have to

use the word frictionless because

3:19:043:19:07

there would be no friction at all.

And we would be completely seamless,

3:19:073:19:11

and the best way to highlight how

seamless and frictionless a single

3:19:113:19:16

market can operate is to look at the

markets between Scotland, Wales and

3:19:163:19:19

England. Completely seamless across

the border, completely free market,

3:19:193:19:26

completely single market, completely

customs free, and I know the

3:19:263:19:32

Secretary of State for the

environment has joined us and I'm

3:19:323:19:36

delighted, because he argued along

with me and I said this to our

3:19:363:19:41

friend from Aberdeen South, one of

the keen opposition arguments to an

3:19:413:19:47

independent Scotland was not to have

a border at Berwick, now he is

3:19:473:19:52

arguing the opposite with Northern

Ireland and the island of Ireland

3:19:523:19:55

and that is a complete contradiction

and he can't tell us how that is

3:19:553:19:59

going to be resolved. Completely and

utterly contradictory to have made

3:19:593:20:05

those items in the Scottish

independence referendum but making

3:20:053:20:08

contrary arguments now.

3:20:083:20:10

Customs union, and outside the

customs union it is likely the UK we

3:20:193:20:22

need to renegotiate many of not all

of those agreements with people who

3:20:223:20:26

would now become third parties. That

is not as easy as just rolling over

3:20:263:20:30

these agreements as the government

seem to want to do. I am conscious

3:20:303:20:34

of time Mr Deputy Speaker Sela me

just move on a little bit. I want to

3:20:343:20:39

talk about Northern Ireland and the

Republic of Ireland. I know the

3:20:393:20:45

opposition do not like hearing these

arguments because they don't have

3:20:453:20:48

any answers to them, but I feel it's

important to highlight it. We have

3:20:483:20:59

until 10pm, if the honourable

gentleman wants to intervene and

3:20:593:21:01

waste time as well, he is more than

welcome to do that. We have already

3:21:013:21:07

talked about the massive queues at

our ports, airports and rail

3:21:073:21:10

terminals but I want to talk a bit

about Northern and the result of

3:21:103:21:14

Ireland. The Foreign Affairs

Committee visited Dublin and the

3:21:143:21:17

board on Thursday and Friday of last

week to look at the consequences of

3:21:173:21:21

us leaving the European Union. And

again I say to the minister if he

3:21:213:21:26

wants to come to the dispatch box

and Tommy any organisation in

3:21:263:21:29

Northern Ireland or the Republic of

Ireland that thinks Brexit will be

3:21:293:21:34

good for the Isles of Ireland then

please do so because I did not hear

3:21:343:21:38

any. The only two people I heard

supporting our withdrawal from the

3:21:383:21:42

customs union and the single market

in the context of the aisles of

3:21:423:21:47

Ireland were indeed the two

Brexiteers on the foreign affairs

3:21:473:21:51

select committee. Nobody made those

arguments. Some of the words used

3:21:513:21:54

were catastrophic, irreconcilable,

unsolvable. I just cannot understand

3:21:543:21:59

how the minister can bring these

kinds of arguments without having

3:21:593:22:06

the basic answers to these

questions, without using meaningless

3:22:063:22:11

phrases like frictionless and

seamless. I have a real concern

3:22:113:22:15

through the Belfast agreement, the

Good Friday Agreement, underpinned

3:22:153:22:19

by the European Union by a seamless

border, underpinned by a single

3:22:193:22:25

market in the island of Ireland. It

is almost impossible for the

3:22:253:22:33

government to reconcile them wanting

no borders, frictionless and

3:22:333:22:36

seamless trade with the route they

are going down with a no deal

3:22:363:22:39

Brexit. Another suggestion, the

minister might recognise it, the way

3:22:393:22:45

to have a seamless and frictionless

border between Northern Ireland and

3:22:453:22:48

the Republic of Ireland is indeed

the customs union, may I suggest,

3:22:483:22:54

because that would mean trade and

goods could go across the board are

3:22:543:22:58

unfettered, seamless, and I may even

push it to frictionless, that is

3:22:583:23:03

what the government had been saying

all along. We travelled from the van

3:23:033:23:08

county council who hosted us on

Thursday evening to drive onto the

3:23:083:23:11

motorway back to Dublin. It is about

four and a half miles, we were in

3:23:113:23:16

the minibus, we crossed the border

seven times. Seven times, just ago

3:23:163:23:19

that very short distance. This is

irreconcilable. Many people in

3:23:193:23:25

Northern Ireland and the Republic of

Ireland who spoke to the Foreign

3:23:253:23:28

Affairs Committee last week and I am

sure the Minister will be put

3:23:283:23:31

pleased to the conclusions of that

when it is actually published by the

3:23:313:23:33

amity. It is intellectually

incoherent argue that you can have

3:23:333:23:40

no border was requiring a border.

Can't have frictionless and seamless

3:23:403:23:45

trade well having to check goods.

You can't have a border at the sea

3:23:453:23:49

level when you are trying to make

sure that the Good Friday Agreement

3:23:493:23:53

is maintained. Former president

spoke to us in great depth about the

3:23:533:24:00

passion for this Good Friday

Agreement. I said to the Minister

3:24:003:24:03

and the government in all

seriousness, they ruin this

3:24:033:24:06

agreement at their peril. The Good

Friday Agreement is something of a

3:24:063:24:10

British are being credible proud of,

and the way in which the government

3:24:103:24:13

are going about the Brexit

negotiations, the way they are

3:24:133:24:16

treating the border, the way they

are fooling the public you can have

3:24:163:24:23

everything and not have everything

is indeed wrong. Michel Barnier has

3:24:233:24:30

said to the government in particular

to this issue of Ireland that they

3:24:303:24:34

cannot have their cake and eat it.

So something is good to have to

3:24:343:24:37

give, and I say to the Minister that

is why I put these amendments

3:24:373:24:41

because he has to think very

seriously about that particularly

3:24:413:24:43

physical border. Mr Deputy Speaker,

I will conclude just by saying a

3:24:433:24:50

little bit about the Labour Party's

position. I think the Labour Party's

3:24:503:24:54

decision is indeed right on this

issue, that they want to stay if

3:24:543:25:01

possible in the customs union. I

agree with the moments from my

3:25:013:25:06

honourable friend from Bootle who

brought forward the amendments about

3:25:063:25:11

scrutiny. The government are saying

to take back control but indeed are

3:25:113:25:18

not giving control to this

particular Parliament, in all of the

3:25:183:25:22

issues around Ireland, trade,

tariffs, around jobs, around Kayal

3:25:223:25:30

backs at customs can all be resolved

by the United Kingdom at least

3:25:303:25:36

living on the table, regardless of

whether not you agree with them or

3:25:363:25:38

not agree with them, living on the

table the possibility of being

3:25:383:25:43

members of the single market and the

customs union. When we get to the

3:25:433:25:49

end of this process, meaningful vote

or not in this place, the Minister

3:25:493:25:53

and his government will know that

when the jobs start leaving this

3:25:533:25:57

country, when border start going up,

when customs become more difficult,

3:25:573:26:01

when trade becomes much more

difficult, when public services

3:26:013:26:06

become a chore difficult to fund,

that his government have let the

3:26:063:26:10

people down by not telling them the

truth about the consequences of

3:26:103:26:13

coming out of this and go market and

the customs union. That is why I

3:26:133:26:19

make these amendments.

It is a great

pleasure, to follow the member for

3:26:193:26:30

Edinburgh South who spoke at

considerable length of his

3:26:303:26:33

conviction that the customs union is

the way forward. And he has all were

3:26:333:26:38

spoken with great clarity and

certainty. I would say he is more

3:26:383:26:43

compelling in his usual manner as to

go rather than the EU or that we saw

3:26:433:26:47

the light. I would also say the

difficulty of assuming that business

3:26:473:26:54

is monolithic and always picks with

one voice is that it doesn't. There

3:26:543:26:58

are businesses in my constituency

that I deal with as a trade envoy

3:26:583:27:01

who are concerned about the future,

and there are others who are relaxed

3:27:013:27:07

and both of those views will depend

ultimately on what sort of

3:27:073:27:10

arrangement we reach on customs and

on what terms. That brings us to the

3:27:103:27:18

preparatory bill this evening. As

the Minister has explained, this is

3:27:183:27:21

fundamentally nothing other than

necessary preparation for when we

3:27:213:27:25

leave the EU. It is a framework, not

a position on a preferred type of

3:27:253:27:32

future customs relationship. It

allows for either of the

3:27:323:27:35

government's options, one of which

is a streamlined system as far as I

3:27:353:27:39

can see essentially a tentacle to

the current one, and the second one

3:27:393:27:44

is a new customs partnership which I

am sure we will hear more about when

3:27:443:27:47

the bill is published. This

preparatory work is even more

3:27:473:27:52

important in the sad event of future

arrangements not being agreed with

3:27:523:27:57

the EU. Today, the Minister has

confirmed that actually HMRC

3:27:573:28:05

arrangements at our roll on roll off

ports will be in place in January

3:28:053:28:09

2019, ready to deal with the worst

case scenarios. I believe there is

3:28:093:28:14

an important political point behind

this, which members of this house

3:28:143:28:17

who would, as the member for

Edinburgh South said, much prefer to

3:28:173:28:22

stay in the customs union, need to

consider very carefully. There are

3:28:223:28:28

some who believe that leaving the EU

without any future deal or

3:28:283:28:32

implementation period would be a

walk in the park and there are

3:28:323:28:34

others who believe it would simply

be impossible to operate our

3:28:343:28:36

thoughts and indeed perhaps much of

our trade and therefore a disaster

3:28:363:28:41

to leave the customs union at all.

But, for many of us, whose view has

3:28:413:28:48

always been that both the UK and the

EU would hugely benefit from a

3:28:483:28:53

strong customs partnership for the

future, and what Michel Barnier

3:28:533:28:56

calls a new partnership in general,

then this preparation bill is

3:28:563:29:01

essential to that. It is absolutely

vital that the EU does not overplay

3:29:013:29:10

its strong hand at the still of the

stage of negotiations, for if the EU

3:29:103:29:15

decides that negotiations on

citizens rights, Ireland and Finance

3:29:153:29:18

had made insufficient progress to

move on to debating and

3:29:183:29:23

implementation period and future

trade and other partnerships, then

3:29:233:29:27

there is a real danger, I believe,

that the momentum moves and those

3:29:273:29:33

who believe not only is no deal

possible, but likely or even

3:29:333:29:39

desirable, that we need to prepare

for that situation above all else.

3:29:393:29:46

Therefore for those of us who want

to see the negotiations succeed, who

3:29:463:29:51

want to see a new partnership, it is

incredibly important that our

3:29:513:29:56

partners in the EU encourage us to

build momentum for this by moving

3:29:563:30:02

the detailed talks on the future

trade and customs arrangements as

3:30:023:30:05

soon as. For now, this is simply an

enabling bill of changes that allows

3:30:053:30:13

future UK tariffs, VAT levels, goods

classification and so on, and as the

3:30:133:30:18

opposition spokesman himself said,

it is both practical and necessary.

3:30:183:30:23

The amendments in my view close off

the options and should sensibly be

3:30:233:30:27

avoided.

Thank you Mr Deputy

Speaker, it is a pleasure to follow

3:30:273:30:34

a fellow Remainer, and I hope that

Remainers on the other side might be

3:30:343:30:40

a bit more outspoken about the

concerns... I am happy to give way.

3:30:403:30:46

Just to clarify, he is following a

pragmatist.

OK, well, if I am indeed

3:30:463:30:55

following a pragmatist, then I hope

the pragmatist would listen to what

3:30:553:30:58

is being said by many economic

sectors at the moment, would listen

3:30:583:31:03

and perhaps read carefully the 58

sectoral reports, once they are

3:31:033:31:09

published, and come to a very

pragmatic conclusion that pursuing

3:31:093:31:13

the agenda the government has of

taking us over the cliff is

3:31:133:31:16

something that perhaps he is a

pragmatist would want to start being

3:31:163:31:19

more outspoken about in the debates

we are having on this issue. We have

3:31:193:31:24

heard during the debate this

afternoon references to the fact

3:31:243:31:28

that the UK needs to leave the

European Union to be able to trade.

3:31:283:31:32

Clearly that is not true. There are

many European countries that are

3:31:323:31:37

just much more successful at trading

with other countries than we are,

3:31:373:31:42

Germany, France, Italy, and they do

that within the European Union, so

3:31:423:31:45

there is no reason at all why we

could not do so more effectively

3:31:453:31:50

than we are currently. And, of

course, if there is no point or no

3:31:503:31:57

ability to trade whilst part of the

European Union, I do wonder why

3:31:573:32:01

previous Prime Minister 's David

Cameron in particular, Spencer much

3:32:013:32:03

time and effort sending trade

delegations to different countries

3:32:033:32:08

around the world to drum up trade.

Was that a completely pointless

3:32:083:32:12

exercise? Was that just about having

ten course banquets in Beijing? Or

3:32:123:32:17

was it because, actually, we can do

a lot within the European Union to

3:32:173:32:21

boost trade? I think it was the

latter, rather than a desire to have

3:32:213:32:26

the dinners, courtesy of foreign

governments. So of course the United

3:32:263:32:30

Kingdom is in a position now to

trade perhaps more effectively than

3:32:303:32:33

it does with other countries whilst

we are members of the European

3:32:333:32:36

Union. Now what I wanted to do, and

it is nice, say, Mr deputy Speaker,

3:32:363:32:45

as a Liberal Democrat to be a to

make a speech that is longer than

3:32:453:32:48

three minutes, so I may take full

advantage of this in the couple of

3:32:483:32:53

hours perhaps that remains for me to

make a contribution this evening,

3:32:533:32:57

before handing back to ministers for

their response. I to focus first of

3:32:573:33:05

all on the issue of Ireland and

Northern Ireland. Now frankly

3:33:053:33:08

members on this side of the house

have had enough of listening to the

3:33:083:33:13

platitudes ministers are giving

about how they are going to sort out

3:33:133:33:18

the problem that is the border

between Ireland and Northern

3:33:183:33:21

Ireland. We don't want to hear about

frictionless any more, we don't want

3:33:213:33:24

to hear about blue skies solutions

that do not yet exist. What we want

3:33:243:33:29

to hear from ministers is the

solution to this problem. Because,

3:33:293:33:34

if the Irish Prime Minister on

Friday asked for a written guarantee

3:33:343:33:38

from the UK Government that there

would be no border controls at the

3:33:383:33:41

border, it is because he is worried

about it, and he has heard nothing

3:33:413:33:47

from our government that explains

how we are going to be able to leave

3:33:473:33:52

the customs union, and yet have no

border and no border controls tween

3:33:523:33:58

Ireland and Northern Ireland. I am

happy to give way.

I am grateful.

3:33:583:34:05

Would he also agree that if the

government were to have a change of

3:34:053:34:09

heart and agreed to asked to remain

in the single market, that takes up

3:34:093:34:13

to the three blocks. The rights of

EU citizens and UK citizens are

3:34:133:34:21

solved immediately. We are then left

only with the financial settlement,

3:34:213:34:26

the only stumbling block to the

about trade deals and so on.

Indeed,

3:34:263:34:30

I agree with him entirely, as has

been the case in other speeches, I

3:34:303:34:34

am perplexed as to why from the

outset the government ruled out a

3:34:343:34:38

number of very obvious solutions to

the dilemmas they face.

3:34:383:34:44

I'm sure number of members will have

visited Northern Ireland, I did

3:34:443:34:51

myself, in South Armagh, which was

very badly affected during the

3:34:513:34:55

troubles, and they had a garrison of

3000 soldiers in that town. They

3:34:553:34:59

were responsible for the safety of

roughly 24,000 people and at the

3:34:593:35:06

point the garrison was there they

reckon that was the most militarised

3:35:063:35:11

place in western Europe, and what

are they worried about? Returning to

3:35:113:35:16

the troubles they experienced in the

70s and 80s. The fact people were

3:35:163:35:24

placing devices under the roads in

the approach roads to the border,

3:35:243:35:30

and they are worried that there will

be no means to control safely the

3:35:303:35:38

275 border points that exist between

Ireland and Northern Ireland. If the

3:35:383:35:43

proposal is to conduct ad hoc checks

at separate border points or

3:35:433:35:52

proposals to conduct checks at a

distance from the border, if that

3:35:523:35:54

this part of the solution, they are

still worried that the British

3:35:543:35:59

customs officer and the British

police officer and the British

3:35:593:36:02

soldier who is there, then becomes a

target, and all we have heard from a

3:36:023:36:08

succession of ministers is very

dismissive comments, including from

3:36:083:36:13

the Secretary of State for Exiting

the European Union, who dismisses

3:36:133:36:16

any concerns about the difficulties

there could be at this border. We

3:36:163:36:20

need reassurances from ministers,

not the dismissive comments they are

3:36:203:36:24

making. I'm happy to give way.

The

government policy at the moment is

3:36:243:36:31

that it won't have a hard border and

it will leave the customs union

3:36:313:36:38

which could be very good for the

community you visited, smuggling was

3:36:383:36:42

profitable for a large number of

inhabitants both sides of the Irish

3:36:423:36:47

border, and it seems as long as the

government maintains this post, then

3:36:473:36:52

smuggling will come back in a big

way to the country once more.

3:36:523:36:56

Indeed. Maybe a growth industry, and

there were a number of large homes

3:36:563:37:01

pointed out to me, which it was

suggested by not have been acquired

3:37:013:37:06

through entirely legitimate means,

and so that means of doing business

3:37:063:37:11

might be one the government is

opening up, and we know historically

3:37:113:37:15

that with things like CHP payments

and cattle being transferred from

3:37:153:37:21

one side of the border to the other,

or fuel, that that has been a

3:37:213:37:27

long-standing issue and has the

potential to become an even greater

3:37:273:37:31

one courtesy of what the government

are proposing. I'm happy to give

3:37:313:37:34

way.

If you follow the logic he is

making, that there might not be a

3:37:343:37:42

customs union and we will be outside

it and therefore there will be a

3:37:423:37:46

hard border, and the government's

logic is that that is mitigated, by

3:37:463:37:51

a frictionless border, the border

will simply have to be around Great

3:37:513:37:56

Britain, at the Scottish and Welsh

ports, if Northern Ireland is

3:37:563:38:00

treated separately that will create

a constitutional problem.

3:38:003:38:04

Absolutely, and that is why I

believe this question of Ireland and

3:38:043:38:08

Northern Ireland is the most

challenging of the three. The EU

3:38:083:38:13

citizens, the government should have

resolved that 15 months ago in St

3:38:133:38:17

the macro -- in terms of simply

saying, you have the right to

3:38:173:38:23

remain. The settlement, that is

difficult, because some have said we

3:38:233:38:29

won't give the EU a single penny,

and in fact they owe us money, so

3:38:293:38:35

they now have the difficult

political position to adopt of

3:38:353:38:37

saying, actually, they support, we

don't how much, mainly £40 billion,

3:38:373:38:45

there was an article in the Sunday

Times which was flying a kite which

3:38:453:38:48

referred to £53 billion, and that is

something which could be resolved at

3:38:483:38:52

some political pain, but the issue

of Ireland and Northern Ireland, I

3:38:523:38:58

have found no one who has put

forward any solution to this which

3:38:583:39:00

does not involve some sort of

control ad hoc perhaps, maybe at the

3:39:003:39:07

border, but some sort of control

that will be required.

He touched

3:39:073:39:14

briefly on citizens rights, since

both sides have said this is our

3:39:143:39:19

absolute top priority, can he

explain why the European Union turn

3:39:193:39:24

down our proposal to treat citizens

rights first and on their own so

3:39:243:39:28

that that could have been agreed in

perpetuity regardless of what

3:39:283:39:31

happened to anything else.

That may

be an issue on which we agree, what

3:39:313:39:37

I would like to see, if we are

moving towards a no deal scenario

3:39:373:39:43

there is a very strong overwhelming

case to park the issue of EU

3:39:433:39:49

citizens rights and UK citizens

rights, resolve that because that is

3:39:493:39:53

a question of humanity and giving

some safety and security to the 3

3:39:533:40:01

million EU citizens here and 1.2

million UK citizens in the EU. The

3:40:013:40:08

question of the border between

Ireland and Northern Ireland, 275

3:40:083:40:12

crossings, and if there's going to

be some sort of control, is that

3:40:123:40:15

going to be at each and every one of

those crossings? Presumably not. In

3:40:153:40:20

a second. 3000-5000 people will have

to be recruited, and a much greater

3:40:203:40:34

number than that, I'm happy to give

way.

I spoke to someone and the

3:40:343:40:40

border goes to their kitchen, and

there was a practical difficulty for

3:40:403:40:45

them.

LAUGHTER

Presumably they would have no

3:40:453:40:50

difficulty smuggling their cake from

one side of the border to the other.

3:40:503:40:55

Clearly if you close down some of

the 275 borders, those issues about

3:40:553:41:01

a graveyard with the entrance on one

side and people wanting to visit it

3:41:013:41:05

from the other and children who have

to go to a school that is on the

3:41:053:41:09

other side of the border and people

who have to work on the other side

3:41:093:41:13

of the border, we have closed border

crossings, which is what happened

3:41:133:41:16

during the troubles, that is a major

issue for island and Northern

3:41:163:41:22

Ireland, and if I were to speak for

the next couple of hours, this might

3:41:223:41:25

give the minister is time to work

out what the solution is because

3:41:253:41:29

clearly there isn't one yet, but

that would enable him to go away and

3:41:293:41:33

find it.

I'm delighted you are

making the arguments about the Irish

3:41:333:41:39

border, is not just the physical

border, it is what that says, and

3:41:393:41:42

they have not had borders in the

island of Ireland since troubles and

3:41:423:41:47

it is that symbolism which is

something we should avoid at all

3:41:473:41:52

costs.

He is right. Clearly, there

are substantial economic problems

3:41:523:42:00

associated with the border but the

fundamental problem is this one of

3:42:003:42:07

if there is a British presence on

that border, which isn't there

3:42:073:42:10

currently, the message that sends

out to those who want to cause

3:42:103:42:16

trouble is maybe a step in the wrong

direction in terms of a united

3:42:163:42:20

Ireland and might give them the

reason to start the troubles and

3:42:203:42:24

that is the major risk. That is

probably why the government and the

3:42:243:42:30

European Union are saying that

progress is being made because

3:42:303:42:32

frankly no one wants to admit that

this remains a problem without a

3:42:323:42:36

solution because the potential for

it to generate trouble in the

3:42:363:42:41

future. The other issue, which I

wanted to touch on briefly, the

3:42:413:42:48

issue of the Port of Dover. Many

members will have visited the Port

3:42:483:42:53

of Dover, and I would recommend it,

because the first thing to know

3:42:533:42:59

about it, in fact it is not really a

port, and the Port are quite clear

3:42:593:43:03

in stating this, it is actually a

breach. If you stand in the control

3:43:033:43:08

tower and you watch the trucks, they

flow virtually seamlessly,

3:43:083:43:15

interesting word. The trucks slow

down and they go through into

3:43:153:43:25

channels and if they are lucky then

they drive straight onto a ferry as

3:43:253:43:29

the trucks are unloading from a

lower deck coming into the UK. So

3:43:293:43:34

there is nothing that stops the

trucks getting on those ferries and

3:43:343:43:39

of course a fact I learned, the

trucks are not booked onto a

3:43:393:43:45

specific ferry, they turn up, and

that's the one they go on. The only

3:43:453:43:52

checks that the UK are doing the

trucks coming into the UK is for

3:43:523:43:57

smuggling, and that is done on the

basis of intelligence, not on the

3:43:573:44:00

basis of checking one truck out of a

hundred, it is done on the basis of

3:44:003:44:06

intelligence, and that is why it

flows smoothly. That is why... I'm

3:44:063:44:11

happy to give way.

Does he not agree

with me that there is an often

3:44:113:44:17

quoted figure that if each truck was

just held back by two minutes we

3:44:173:44:21

would have a 17 mile tailback? Is he

pessimistic like me that two minutes

3:44:213:44:27

seems a remarkable short period to

stop each truck to simply ask where

3:44:273:44:30

you are going.

Absolutely. I have

those concerns and it is worth

3:44:303:44:38

knowing that when a couple of years

ago the 17 mile tailback occurred it

3:44:383:44:42

was as a result of two French border

officers not turning up for their

3:44:423:44:51

shift, two, and it created a 17 mile

tailback. The 20 square kilometre

3:44:513:44:56

lorry park which has now been kicked

into the long grass but as a

3:44:563:45:01

judicial review, that would

accommodate 3500 lorries, and there

3:45:013:45:06

are 10,000 lorries which will go

through that port each day, and

3:45:063:45:10

frankly a lorry park which will

accommodate 3500 will not do very

3:45:103:45:15

much if there is severe disruption

at the port and that is why one of

3:45:153:45:18

the options they are considering is

creating lorry parks all over the

3:45:183:45:23

country so that they could text the

drivers and say, we have a bit of a

3:45:233:45:28

problem, at Dover, don't bother

coming, because the town will

3:45:283:45:31

collapse if you do. Just stay in

that lorry parking Leeds or in

3:45:313:45:37

Edinburgh and we will tell you when

it is safe to come down.

All that he

3:45:373:45:44

has said, we have heard and heard

before, but no doubt he will have

3:45:443:45:50

heard the Mayor of Calais and the

head of the port in Calais saying

3:45:503:45:53

how much of a catastrophe a no deal

would be for them, as well. Does

3:45:533:45:58

that not encourage him to suggest

that the good sense will prevail and

3:45:583:46:03

we can reach an agreement which

suits both sides of the channel

3:46:033:46:06

equally well?

I would like good

sense to prevail, but when the

3:46:063:46:11

government seem to be planning for

no deal there does not seem to be

3:46:113:46:15

much good sense available. I do want

to come onto the Cali issue. At

3:46:153:46:21

Dover we have a bridge which runs

between Dover and Calais, and the

3:46:213:46:26

minister was very frank when I

intervened on him early, he said

3:46:263:46:30

that any level of disruption and any

delay in the process would actually

3:46:303:46:34

have a significant impact and that

is true, and that is what he will

3:46:343:46:38

have heard from the Port of Dover.

Unfortunately, nothing the

3:46:383:46:43

government have come forward with in

terms of solutions is likely to

3:46:433:46:47

provide the answer, why one briefly

to touch on the issue of Calais,

3:46:473:46:51

because everything we have said

about the need for the UK to be

3:46:513:46:57

prepared in terms of our custom

systems, and in terms of what we are

3:46:573:47:02

going to do at the border and what

we will do with the approaches to

3:47:023:47:05

the border and how we are going to

get the staff that are going to be

3:47:053:47:12

needed, 3005 5000 members of HMRC

and the 1000 plus which are needed

3:47:123:47:15

at the Home Office, and the same is

true of Calais and the same is true

3:47:153:47:19

of the ports in Belgium, the same is

true of the ports in Holland where

3:47:193:47:24

they don't do their side of the

work, we could have worked out

3:47:243:47:29

everything at our end but we still

have a problem that when the ferry

3:47:293:47:33

gets to Calais it has nowhere to

discharge its trucks, and so unless

3:47:333:47:39

they are as prepared as we are we

could still be in a almighty jam,

3:47:393:47:43

and if anyone... I used to work in

the IT industry, if anyone thinks we

3:47:433:47:53

can have an IT solution which can

cope with a no deal scenario in

3:47:533:47:58

March 2019, they really need to have

their heads examined because that is

3:47:583:48:02

an impossibility to achieve. Just to

conclude, I'm not going to take

3:48:023:48:10

advantage of the two hours or so

that is available to me, you will be

3:48:103:48:16

pleased it, but I would like to

comment on what the government's

3:48:163:48:19

apparent solutions to these customs

problems are, we know the government

3:48:193:48:25

are preparing a continuing sea of no

deal, well, I have not heard anyone

3:48:253:48:31

or seen anyone from the opposite

benches nodding their head, say no

3:48:313:48:34

deal is a fantastic thing and we

really need to press for this, so

3:48:343:48:39

this is the opportunity to intervene

and say no deal will be fantastic of

3:48:393:48:42

the UK. No one is doing that, so I

have to assume nobody on the other

3:48:423:48:47

side would like that even though the

government are planning for it. The

3:48:473:48:51

options we are left with, the highly

streamlined customs arrangement, and

3:48:513:48:57

reading between the lines, highly

streamlined customs arrangement

3:48:573:49:03

means a border between Ireland and

Northern Ireland, I'm certain of

3:49:033:49:06

that, it doesn't mean getting rid of

it... It doesn't mean frictionless

3:49:063:49:10

and a blue sky solution which is

high-tech, and that gets away with

3:49:103:49:14

the need to check the contents of

trucks, and one of the government's

3:49:143:49:20

solutions is having a border between

Ireland and Northern Ireland and the

3:49:203:49:24

complexities that are associated

with that. The other solution is the

3:49:243:49:28

new customs partnership, and I must

say that reading this does make

3:49:283:49:33

entertaining reading and I'm sure

members on both sides of the House

3:49:333:49:37

will have read what this means. This

is going to be an innovative and

3:49:373:49:43

untested approach. That reassures

me. Untested.

3:49:433:49:52

Labour need to be discussed further

with the EU and businesses. Not much

3:49:523:49:56

time left to discuss it with the EU

and businesses and the customs bill

3:49:563:50:01

could not be drafted to specifically

describe the intimidation of this

3:50:013:50:05

outcome. -- implication of this

3:50:053:50:10

in terms of family times you can

caveat a statement in one paragraph,

3:50:133:50:17

I think that is probably five or

six. Good luck to the government if

3:50:173:50:22

they are going to roll out that

particular solution, the blue sky

3:50:223:50:25

solution no one has thought of, no

one has programmed for and no one

3:50:253:50:30

has any hope of implementing any

time soon. Madame Debord is beginner

3:50:303:50:34

will be to the roof of numbers

opposite that at this point I would

3:50:343:50:37

just like to conclude by saying that

I'm afraid that nothing we have

3:50:373:50:40

heard so far from the minister gives

me or I think anyone on this side of

3:50:403:50:44

the house any reassurance whatsoever

that in March 2019 or indeed I would

3:50:443:50:51

say even at the end of the two-year

transition period that the

3:50:513:50:53

government will be in a position to

have a smooth customs arrangement

3:50:533:50:57

that prevails either on the border

between Ireland and Northern Ireland

3:50:573:51:04

or indeed a smooth, seamless,

frictionless border or bridge at

3:51:043:51:08

Dover and Calais.

This is an

important bill because customs

3:51:083:51:16

matters have been covered by EU law

for many decades and Britain does

3:51:163:51:21

need its own primary legislation on

customs. A good government does need

3:51:213:51:25

to be prepared for all

eventualities. But whilst this bill

3:51:253:51:31

would provide customs legislation in

a no deal scenario, I am very glad

3:51:313:51:35

that the UK is instead looking for

more bespoke solutions. We shouldn't

3:51:353:51:41

just cut and paste the customs

procedures that we used the products

3:51:413:51:46

from far-flung parts of the globe

onto our trade with Europe. Goods

3:51:463:51:50

that travel long distances can have

their customs paperwork cleared

3:51:503:51:57

whilst on the seal in the air, and

that would be much more challenging

3:51:573:52:03

for our cross channel activities,

let alone Ireland or Northern

3:52:033:52:05

Ireland. Furthermore EU and UK trade

deal covers vast quantities of

3:52:053:52:15

goodss. The car company Honda alone

estimate they transport 2 million

3:52:153:52:20

parts across the Channel every day.

Additional paperwork or delays add

3:52:203:52:27

Scots -- costs, and companies need

time to adjust to procedures, not

3:52:273:52:33

just for UK companies but the EU

companies too. We need a specific

3:52:333:52:39

deal and transitional periods. At

whilst this legislation covers

3:52:393:52:44

customs matters, it does not cover

many other activities that take part

3:52:443:52:48

at our ports and airports such as

tackling counterfeit goods or plant

3:52:483:52:54

and animal health checks. Plant and

animal health checks will be

3:52:543:53:04

particularly sensitive, and we

should not underestimate how

3:53:043:53:07

seriously counterparts in Europe

take the issue of counterfeit goods,

3:53:073:53:14

not just fake handbags, ladies, but

also serious counterfeits of

3:53:143:53:18

dangerous electrical goods, fake

chemicals, fake medicines, and

3:53:183:53:22

Britain and Europe are stronger when

we face these sorts of challenges

3:53:223:53:28

together. Now trading partners will

want to make sure we have not only

3:53:283:53:32

this customs law in process but also

the other, and the ability and the

3:53:323:53:40

commitment to police those

procedures properly. Mr Barnier, you

3:53:403:53:42

said today that if the UK once an

ambitious partnership we must also

3:53:423:53:53

find common ground on food

standards, product standards and

3:53:533:53:57

many other areas. I say back to you,

Mr Barnier, the vast majority of

3:53:573:54:02

people in this country do want to

have that amicable partnership and a

3:54:023:54:10

close trading relationship. So

please, I know it is difficult,

3:54:103:54:13

there is no government in Germany,

but let's moved the detailed

3:54:133:54:20

negotiations so we can find that

common ground together.

Deputy

3:54:203:54:29

Speaker, I think it was stated by

the minister at the outset it is the

3:54:293:54:34

government's policy to leave the

customs union. It wasn't something

3:54:343:54:37

that was on the ballot paper in the

referendum, it is a matter of policy

3:54:373:54:40

choice that the government are

taking. So it is the policy of the

3:54:403:54:45

government to exit the most

efficient, tariff free, frictionless

3:54:453:54:50

free-trade area of anywhere in the

world, and what we will end up with

3:54:503:54:57

afterwards is therefore bound to be

inferior, possibly very much

3:54:573:55:04

inferior, to the basic free trained

arrangement most countries around

3:55:043:55:10

the world -- free-trade, enjoy. We

could find ourselves at the mercy of

3:55:103:55:16

the basic World Trade Organisation

tariff arrangements, and so this

3:55:163:55:19

bill that we are paving the way for

through those ways and means

3:55:193:55:21

resolution this evening comes at a

crucial juncture. I thought it was

3:55:213:55:28

very unfair that many honourable

members opposite were talking about

3:55:283:55:34

the Eeyore like speech from my

friend from Edinburgh South. I think

3:55:343:55:40

he is quite a positive character who

wants to do the best the trade and

3:55:403:55:43

business in the country, in fact if

anything is negativity is this

3:55:433:55:49

legislation the government are

bringing. The Minister who spoke at

3:55:493:55:51

the beginning was the harbinger of

doom. Echoes this is a bill planning

3:55:513:55:59

for no deal. This is a set of

legislative changes paving the way

3:55:593:56:04

the circumstances where the UK might

be imposing tariffs on our nearest

3:56:043:56:12

trading neighbours and vice versa. I

cannot think of something more

3:56:123:56:15

depressing, more defeatist, more

premature, given that we haven't

3:56:153:56:22

actually had these negotiations yet,

and in fact I can't think of

3:56:223:56:25

anything much more aggressive, in

terms of the negotiating settlement

3:56:253:56:29

we are trying to get come than this

sort of suggestion where we are

3:56:293:56:33

saying we are going to put into

legislation the ability to raise

3:56:333:56:42

significant talents with whom 50% of

our trade takes place. I will give

3:56:423:56:46

way to the honourable member for

Gloucester.

He talks rationally as

3:56:463:56:51

always. The reason why I felt his

honourable friend for Edinburgh

3:56:513:56:55

South was being rather like Eeyore

is that he underestimates the impact

3:56:553:56:59

on Scottish whiskey, which he talked

about quite a lot. Of the Far East.

3:56:593:57:03

He needs to go and see the Johnnie

Walker shops in Shanghai and

3:57:033:57:07

Beijing, he needs to look closely at

white and Mackay, a failing Glasgow

3:57:073:57:14

whiskey manufacturer now saved and

reenergised by a buyer from the

3:57:143:57:17

Philippines to understand that

actually the future of the Scottish

3:57:173:57:20

whiskey lies in Asia and far-flung

places as it does in Europe.

Of

3:57:203:57:25

course that may be the case, but it

is not either or. It is not let's

3:57:253:57:31

cell that fantastic Scottish whiskey

product to China or to Europe. We

3:57:313:57:37

should be doing better. And of

course if you were a German car

3:57:373:57:41

manufacturer or a fractured food

producer, you are actually trading

3:57:413:57:47

exceptionally well with the Far

East, and of course remaining a

3:57:473:57:51

member of the customs union,

remaining a member of the single

3:57:513:57:54

market. And my quibble with the

government ministers and some

3:57:543:57:59

members opposite is that they sort

of give this impression it is an

3:57:593:58:03

either or, a binary arrangement, we

can ditch our trading arrangements

3:58:033:58:08

and partnerships with our nearest

neighbours because we might be able

3:58:083:58:12

to eventually do something with

China or India or Australia or

3:58:123:58:15

Brazil. We should be to do all of

those things and can do all of those

3:58:153:58:22

things simultaneously to be part of

that greatest free-trade area of any

3:58:223:58:27

set of nations anywhere in the

world, which we are about to throw

3:58:273:58:35

overboard for no reason other than a

matter of government policy. We all

3:58:353:58:40

hope for a short transitional period

we can salvage that relationship

3:58:403:58:43

within the single market and the

customs union but of course that

3:58:433:58:46

will take quite a lot of negotiation

and depends on a number of different

3:58:463:58:52

things. It is a shame the government

of Germany are in this unstable

3:58:523:58:56

situation because I suspect that

will make it far harder. It is one

3:58:563:59:00

of the reasons I didn't actually

vote in favour of the Article 50

3:59:003:59:03

arrangement at the time because I

felt it was premature, I thought we

3:59:033:59:06

should have secured a better

timetable than the one we have ended

3:59:063:59:09

up with because of course the clock

ticks down. You can end up with

3:59:093:59:15

unforeseen diplomatic wrinkles in

this whole process. And we get

3:59:153:59:18

backed into a corner. And the snap

general election which nobody

3:59:183:59:30

anticipated, least of all members

opposite, Madam Deputy is bigger,

3:59:303:59:35

let's bear in mind what this bill

and this ways and means arrangement

3:59:353:59:39

I dwell per Izaaj, in terms of

tariffs on our different imports and

3:59:393:59:46

exports. For ceramics, I said to the

whip and to the minister sitting on

3:59:463:59:51

the front bench who I know are

listening very carefully to this, it

3:59:513:59:55

would be a 7% tariff that would be

introduced on ceramic products. On

3:59:554:00:00

cars it would be 10%.

I thank my

honourable friend for raising the

4:00:004:00:11

matter of ceramics, and he will know

that the best ceramics in the world

4:00:114:00:14

are made in this country, but this

bill, which does so well about we

4:00:144:00:20

are going to trade around the world,

it does little to talk about the

4:00:204:00:27

objections ceramics trade can be

protected. I wonder if he liked me

4:00:274:00:31

is worried that the ministerial team

appears to be completely devoid of

4:00:314:00:36

any intention to help those

manufacturing bases in this country

4:00:364:00:40

with this motion?

That of course is

exactly why the amendments from my

4:00:404:00:45

honourable friend from Edinburgh

South should be accepted and

4:00:454:00:48

embraced by ministers, should also

be based may I say by our own Labour

4:00:484:00:52

Party front French and I am sure --

front bench. Because we should fear

4:00:524:01:00

these tariffs being put on because

of course they might not just be a

4:01:004:01:04

one-off tariff. Sometimes a product

can cost a border multiple times and

4:01:044:01:08

may well accumulate some of these

tariffs quite frequently. 11% on

4:01:084:01:14

footwear, 20 the scent on beverages,

potentially 45% on cereals, 50% on

4:01:144:01:21

meat products. These are serious

impediments to some major industries

4:01:214:01:25

in the United Kingdom. So when my

honourable friend put down these

4:01:254:01:30

moments, that would effectively say,

well, you can prepare for a tariff

4:01:304:01:34

regime but according the amendments

we do not wish to impose tariffs on

4:01:344:01:40

goods with our nearest neighbours in

the European Union. In essence

4:01:404:01:47

replicating the customs union

arrangement that we have. I was

4:01:474:01:50

delighted, and I want to make sure

that the house has the opportunity

4:01:504:01:55

to voice support for those

amendments this evening. It is a

4:01:554:01:58

shame that during the course of the

European Union withdrawal bill

4:01:584:02:01

during the committee stage, the

amendments on customs union have not

4:02:014:02:05

of course been selected. So we

weren't as a house get a chance

4:02:054:02:09

actually to vote on customs union

issues during the course of that EU

4:02:094:02:13

withdrawal bill committee stage. In

many ways this is an opportunity for

4:02:134:02:17

us to do so now tonight.

It gives me

an opportunity to say I also wanted

4:02:174:02:23

the opportunity to vote on these

amendments today and look forward to

4:02:234:02:26

that. But I wanted to bring him to

the question of local content of

4:02:264:02:30

cars. Is that something he has been

following, because of course the UK

4:02:304:02:35

could be in a very difficult

position where the local content of

4:02:354:02:38

the cars we manufacture here would

not actually allow us to sell any of

4:02:384:02:41

them abroad in any case.

This of

course is the other factor that

4:02:414:02:47

comes into the debate about the

customs union, this question of

4:02:474:02:51

rules of origin, because it is not

just a question of the tariff, it is

4:02:514:02:54

about what proportion of those

products originate from within the

4:02:544:02:58

United Kingdom and what proportion

relates to components or other parts

4:02:584:03:06

that may have come from what

currently is the infantry, the

4:03:064:03:09

warehouse of the whole of the

European Union. Because if you are a

4:03:094:03:16

car manufacturer in the UK located

now, you can and just-in-time

4:03:164:03:22

arrangements for warehousing avoid

the need to stack up great expense

4:03:224:03:26

of the infantry. You can assume that

goods and parts will be transmitted

4:03:264:03:31

within a matter of hours or days,

and of course that is the risk we

4:03:314:03:36

are potentially going to lose if we

end up with this sort of tariffs and

4:03:364:03:40

these sort of impediments at our

borders.

I thank you for giving way

4:03:404:03:43

again. Is he aware that apparently

the solution the UK Government are

4:03:434:03:48

perhaps proposing in relation to

rules of origin might be to ask the

4:03:484:03:52

European Union to allow their

content to be included as part of

4:03:524:03:57

our local content?

Some solutions

have to be forthcoming. I have high

4:03:574:04:04

hopes for the Minister, I don't know

whether he will be a bitter say

4:04:044:04:08

well, anything really about that

suggestion or any other part of the

4:04:084:04:13

negotiation. But remember customs

union as it currently stands allows

4:04:134:04:17

that the core manufacturer to sell a

car into Berlin is easily currently

4:04:174:04:25

as it can sell a car in Birmingham

or Bradford. This is the nature of

4:04:254:04:29

the market we currently have. That

could end if we impose tariffs at

4:04:294:04:36

these particular levels, which this

motion tonight would pave the way

4:04:364:04:40

for. The honourable gentleman raised

earlier the question of the border

4:04:404:04:48

with Northern Ireland, and my

honourable friend from Edinburgh

4:04:484:04:50

South also talked about the Belfast

agreement, and how of course that is

4:04:504:04:55

one of the areas where this is

crystallise most of all.

4:04:554:05:01

I can't think of any members who

would say that they should be a hard

4:05:014:05:06

border between Britain and Northern

Ireland and if you're not going to

4:05:064:05:13

have that, there should not be a

hard border between Northern Ireland

4:05:134:05:17

and the Republic of Ireland, and

there can't be a hard border between

4:05:174:05:21

the Republic of Ireland and European

Union, but somehow we are talking

4:05:214:05:27

about instituting a hard border

between European Union and the UK,

4:05:274:05:32

the logic of this as the member from

Rushcliffe was pointing out,

4:05:324:05:37

completely. Pieces -- completely.

Pieces we're waiting for the blue

4:05:374:05:44

sky solution which was flown in the

trade White Paper recently --

4:05:444:05:49

completely falls to pieces. The

Irish government asking for written

4:05:494:05:54

proposals from ministers on these

points, these are serious questions

4:05:544:05:58

and much of it comes back to whether

we are going to find ourselves

4:05:584:06:06

voluntarily asking for circumstances

where we want hard borders and we

4:06:064:06:09

want those rules of origin checks to

be put in place, and by supporting

4:06:094:06:13

the amendments from my honourable

friend from Edinburgh this evening,

4:06:134:06:18

this house has a way of signifying

that we choose a different course,

4:06:184:06:24

that we choose circumstances to

retain as much as possible of the

4:06:244:06:29

frictionless, free trade tariff free

area that we enjoy in the customs

4:06:294:06:33

union.

Thank you. May I say, I'm

repeating the words of the Prime

4:06:334:06:44

Minister who has emphasised there

will be no physical infrastructure

4:06:444:06:49

on the border between Northern

Ireland and the Republic of Ireland,

4:06:494:06:52

the Secretary of State for Northern

Ireland has ruled out cameras being

4:06:524:06:57

used on the border, so if we're not

going to have cameras and physical

4:06:574:07:02

infrastructure but we're going to

have a frictionless seamless border,

4:07:024:07:06

how does the member to see the

government being able to claim the

4:07:064:07:11

customs duties on the border?

There's no logic to the government's

4:07:114:07:17

position right now, and none of that

was on the ballot paper at the

4:07:174:07:22

referendum. It is important to

remember this, people are making the

4:07:224:07:27

assumption that this is a natural

consequence flowing from the

4:07:274:07:30

referendum result, it isn't. We

could choose to negotiate to remain

4:07:304:07:36

in the customs union and by doing so

not only would we have that

4:07:364:07:41

fantastic free trade access to 50%

of our imports and exports but we

4:07:414:07:51

would also retain access to 57

free-trade agreements with non-EU

4:07:514:07:57

countries who we have that

arrangement by virtue of our

4:07:574:07:59

membership of the EU and the customs

union, which is another 12% of our

4:07:594:08:04

trade on top of that, so we are

getting something like two thirds of

4:08:044:08:11

our trade that is dependent in many

ways on our current relationship

4:08:114:08:15

with the customs union. I look

forward to the speech from my friend

4:08:154:08:21

on the Labour Party front bench

shortly. I would say to my

4:08:214:08:27

honourable friend and other

colleagues, we can't sweep away this

4:08:274:08:30

question of the customs union, it is

positive that the Labour Party is

4:08:304:08:35

saying we want to stay in the

customs union for the transition

4:08:354:08:39

period and positive that we are

saying after Brexit we want to get

4:08:394:08:43

as close as we can to a customs

union but I want to urge the front

4:08:434:08:47

bench to go further, it is a

nonsense to suggest that there is

4:08:474:08:53

such a thing as a jobs first Brexit.

It is as nonsensical as saying that

4:08:534:08:59

you can have a books first library

closure, it doesn't work. If we end

4:08:594:09:08

up going down this route, exiting

the customs union, exiting the

4:09:084:09:12

single market, jobs will be lost, we

have seen nine jobs go today in the

4:09:124:09:18

European Medicines Agency, go to

Amsterdam from the UK, highly

4:09:184:09:23

skilled and valuable activity, and

I'm appalled that we are in that

4:09:234:09:29

circumstance, and that is the tip of

the iceberg. I urge my colleagues to

4:09:294:09:36

support the excellent amendments

from my friend from Edinburgh South.

4:09:364:09:40

Alice Subaru.

Thank you very much. I

rise to give my support to those

4:09:404:09:48

amendments but to make it clear that

I will be voting for them

-- Anna

4:09:484:09:51

Sue Brie.

4:09:514:09:52

I made it very clear when I stood in

the run-up to the general election,

4:09:534:09:58

that I would continue to make the

case for the customs union, the

4:09:584:10:02

single market and the positive

benefits of immigration to everybody

4:10:024:10:08

in Brock Stowe, and after being

returned to this place with a

4:10:084:10:13

diminished majority, but with

extroverts, I'd take -- extra votes,

4:10:134:10:19

I am going to vote for this

amendment from and it is a badger to

4:10:194:10:24

follow the excellent contributions

-- I'm going to vote for this

4:10:244:10:30

amendment, and it is a pleasure to

know some of the excellent

4:10:304:10:33

contributions we have had, including

the member from Carshalton. The

4:10:334:10:43

pleasure I have in speaking in Mr

Bate is primarily this, we are

4:10:434:10:49

actually having a debate -- in this

debate. We also having a vote and we

4:10:494:10:56

are providing this House and this

place at last an opportunity to have

4:10:564:10:59

a real and meaningful say in the

future of our country, something

4:10:594:11:05

that has been denied within this

place come ever since June the 23rd,

4:11:054:11:12

2016, and if only the government had

at that time and I can understand

4:11:124:11:17

why in many ways it couldn't, but if

it had actually looked at trying to

4:11:174:11:21

build a consensus, trying to find

what those elements word that united

4:11:214:11:27

us far more than which had divided

us during the referendum debate,

4:11:274:11:32

then we would not be in the unholy

mess we are undoubtedly are at the

4:11:324:11:35

moment. The reality is, as the

Brexit reality or nightmare begins

4:11:354:11:42

to dawn increasingly on the people

of this country, the reality is,

4:11:424:11:49

this scenario of deal or no deal is

actually not the real options that

4:11:494:11:57

face the British people. To paint

the idea of the hard Brexit as being

4:11:574:12:02

something we should prepare for and

I can understand why, the government

4:12:024:12:07

has got to be responsible and the

cat that, but we are more likely

4:12:074:12:11

than not is not to get a deal -- be

responsible and to look at that. The

4:12:114:12:17

Prime Minister said she did not want

a no dear, but this is now not just

4:12:174:12:23

likely, but they are in quarters of

this place people actually

4:12:234:12:26

positively urging that and actually

working it -- did not want a no

4:12:264:12:33

deal. I find it perverse and bizarre

that in my own party which has

4:12:334:12:37

always been so proud to be the party

of business, we are increasingly

4:12:374:12:43

being seen as the party that no

longer represents business in this

4:12:434:12:46

country. Because let's be clear, the

overwhelming majority of businesses

4:12:464:12:54

not just in my constituency but the

length and breadth of this country,

4:12:544:12:58

do not want a hard Brexit. It is not

a choice between a hard Brexit and

4:12:584:13:05

no deal or a bad deal, there is a

third option, an option that is not

4:13:054:13:10

even being debated, and certainly

not voted on until summer, and that

4:13:104:13:15

is the third way. -- on until

tonight. The customs union includes

4:13:154:13:23

the single market and I agree, and I

won't repeat the excellent arguments

4:13:234:13:29

advanced by the member for Edinburgh

South, but I absolutely endorse the

4:13:294:13:33

arguments he made and the

interventions he took from other

4:13:334:13:39

members who also see the value of

the customs union, because what it

4:13:394:13:43

delivers is what I think the British

people want. Overwhelmingly the

4:13:434:13:49

majority of people in his country I

cheesed off with the whole thing,

4:13:494:13:52

they are fed up with Brexit, they

are fed up with the arguments and

4:13:524:13:57

squabbling, and I'm going to be

blunt, they are getting fed up with

4:13:574:14:00

a government that has still not

worked out what its policy is the

4:14:004:14:06

transitional deal, and indeed for

the final deal, and some might say

4:14:064:14:11

that is shameful, all this time that

has progressed since we jumped as I

4:14:114:14:18

feel we did into triggering Article

50, and there were some of us, and

4:14:184:14:21

don't do we know -- don't we know

all the attacks we received for

4:14:214:14:29

that, we said, please don't trigger

Article 50 until at least the

4:14:294:14:32

Germans have had their elections and

that stable government has been put

4:14:324:14:40

in place, and how right we were to

put that in. The British people are

4:14:404:14:45

looking at all of this and they are

frankly fed up to the back teeth

4:14:454:14:50

with it, they want us to get on with

it and I think we should get on with

4:14:504:14:55

it. But not in the way that a small

ideological group of people I'm

4:14:554:15:00

afraid to say in my own party

mainly, are now urging the

4:15:004:15:04

government to get on with it, and

that is to leap off the cliff and

4:15:044:15:08

get no dear, of course I will take

an intervention. -- no deal.

When

4:15:084:15:15

the history books are written about

this, her name will play a prominent

4:15:154:15:18

role in trying to bring her

government back from the brink, and

4:15:184:15:22

we appreciate the work she's doing

on this, but does she not agree with

4:15:224:15:27

me, I'm also delighted we are

debating the customs union, and the

4:15:274:15:30

government are suggesting a

frictionless and seamless border and

4:15:304:15:35

customs arrangement, the best thing

they could do to deliver that is to

4:15:354:15:38

stay in the dam thing.

I could not

agree more, and that is what the

4:15:384:15:43

people need to understand, that

there is this third option, this

4:15:434:15:49

other way of getting a Brexit where

we are out of the European Union, so

4:15:494:15:54

we have satisfied the 52% who voted,

about leaving, but we deliver what

4:15:544:16:00

everybody wants which is the best

possible Brexit that is in the

4:16:004:16:05

interests of everybody in this

country, with the economy and jobs

4:16:054:16:09

and prosperity actually right at the

heart, it solves the problem is that

4:16:094:16:13

Northern Ireland faces, it solves

the problem that Ireland faces

4:16:134:16:18

because we keep the customs union.

I'm very grateful for allowing

4:16:184:16:24

meetings in vain. -- allowing me to

intervene. I'm disquieted by the

4:16:244:16:31

fact that there are members of her

party that are seemly in favour of a

4:16:314:16:34

no deal as we leave the EU, and why

I'm disquieted by this, today in the

4:16:344:16:43

Belfast Tel, it carries a report

that the public and organisations in

4:16:434:16:48

Northern Ireland and Sinn Fein are

hoping for a hard Brexit so they can

4:16:484:16:53

exploit the idea of it -- it carries

a report that Republican

4:16:534:16:57

organisations will stop to try and

rip Northern Ireland away from the

4:16:574:17:03

rest of UK and that is very

concerning me as a Unionist.

I

4:17:034:17:10

listen to the wise words of the

lady, she understands more than most

4:17:104:17:13

the consequences of getting this

wrong, it is about the politics as

4:17:134:17:20

well as the trade, I really do take

that this huge danger of abandoning

4:17:204:17:26

the customs union and going for some

ghastly hardboard which plays right

4:17:264:17:29

into the hands of Sinn Fein, the IRA

and all the rest of them -- hard

4:17:294:17:34

border. I won't speak for much

longer, because I agree with so much

4:17:344:17:40

of what has been said. I'm old

enough to remember the days, I

4:17:404:17:50

remember my father having a car and

saying, what happened with the car,

4:17:504:17:56

why have we got it, -- why haven't

we got it, and the response was, it

4:17:564:18:03

is down in the garage and we are

waiting for a part, it hasn't

4:18:034:18:08

cleared customs. The terrible

problem with much of this debate,

4:18:084:18:13

semi-people are so much anger,

because this is something they have

4:18:134:18:17

never experienced -- so many people

are so much younger. I can remember

4:18:174:18:22

having your suitcases opened at

customs control, this is lost on

4:18:224:18:28

part of the population, and here we

are, beginning to plan for a return

4:18:284:18:33

to those bad dark days when we were

the sick man of Europe. We need to

4:18:334:18:40

stay in the customs union for the

sake of our economy and because it

4:18:404:18:43

will deliver what the people want,

we will get on with it and make

4:18:434:18:47

progress and we can take it, it is

on the shaft, maybe we can take it

4:18:474:18:54

after -- it is on the shelf. It will

deliver Brexit and make sure that we

4:18:544:18:59

can then look at the huge other

domestic problems that we face.

4:18:594:19:04

Something else I was going to say,

which I've no doubt forgotten, but

4:19:044:19:09

it matters not, these are important

matters, and... I know what it is,

4:19:094:19:17

history will record the profound

irony that the overwhelming majority

4:19:174:19:26

of honourable members in this place

the Greek that we should be in the

4:19:264:19:31

customs union and the single market

-- agree. The only reason that is

4:19:314:19:36

not even on the table any more and

this is an uncomfortable truth is

4:19:364:19:42

because I fear my party is in hock

to 30-35 hard ideological driven

4:19:424:19:49

Brexiteer 's and the British people

will not thank my party unless we

4:19:494:19:55

stand up for business and stand up

for the economy and deliver Brexit

4:19:554:19:59

but also make sure that we deliver

for the British people. One last

4:19:594:20:02

intervention.

Does she share my

horror, as she talks about these

4:20:024:20:10

extremists but that one of these is

planning to make a speech tomorrow

4:20:104:20:13

when he actually advocates dropping

off the cliff and going on to WTO

4:20:134:20:19

rules and telling the Prime Minister

that she needs to take forward a no

4:20:194:20:22

deal Brexit. An absurdity.

4:20:224:20:30

Finally I need to say this, why are

we leaving the customs union? The

4:20:304:20:37

reason we are living the customs

union is so that apparently we can

4:20:374:20:41

make deals with other countries. And

it is the stuff of complete fantasy.

4:20:414:20:48

And as the honourable gentleman for

Nottingham East quite rightly

4:20:484:20:52

pointed out, we already have this

fantastic arrangement. This customs

4:20:524:20:57

union, single market, biggest in the

whole world and we are turning away

4:20:574:21:02

from it, this dreadful

self-inflicted wound. Looking into

4:21:024:21:05

other places, dreaming of deals that

will never be done. And if there is

4:21:054:21:09

ever a better example of that, look

to America. Look to bombard EA, they

4:21:094:21:20

have their most anti-free trade

president they have ever seen and

4:21:204:21:24

that is the reality. There is no

wonderland ahead of us, what there

4:21:244:21:29

is is real economic damage to our

country unless we stay in the

4:21:294:21:33

customs union and that is why I

shall be supporting these amendments

4:21:334:21:36

to night.

Edit a pleasure to speak

in this debate and to follow the

4:21:364:21:44

honourable member for Brock Stowe

who spoke with trademark passion on

4:21:444:21:47

these issues. On what I think is one

of the most important issues arising

4:21:474:21:53

from the Brexit referendum vote. I

admire the ingenuity of the proposer

4:21:534:22:00

of this amendment. If he divides the

House this evening, my colleagues

4:22:004:22:04

and I will be supporting him. The

4:22:044:22:09

the Lancaster House speech in the

beginning of the Prime Minister

4:22:114:22:17

stated quite clearly that it was the

intention of the British government

4:22:174:22:21

to leave both the single market and

the customs union. Many members have

4:22:214:22:26

spoken this evening, I can't

understand for a second wife the

4:22:264:22:31

British government at that stage

decided to close both of those

4:22:314:22:33

options. -- for a second why. There

was no outline of what the British

4:22:334:22:43

government would put in place to

replace those cornerstones in terms

4:22:434:22:47

of economic policy frameworks that

have existed over the last 40 years.

4:22:474:22:53

I thank him for giving way, has he

like I have, sat in this the bait

4:22:534:22:58

and waited for someone on the

opposite benches to give a ringing

4:22:584:23:05

endorsement of leaving the single

market and the customs union because

4:23:054:23:08

it hasn't happened, has it?

It is a

valid intervention. When we talk

4:23:084:23:14

about the customs union and trade

bill, these answers will have to be

4:23:144:23:18

forthcoming. The will of the people

across the UK is becoming that we

4:23:184:23:23

need answers to what the government

is putting in place instead of those

4:23:234:23:27

frameworks rather than -- other than

the empty platitudes we have heard

4:23:274:23:34

the referendum vote. It gives us

unhindered access to half a billion

4:23:344:23:40

of the wealthiest consumers in the

world and acts as a protective block

4:23:404:23:45

against cheaper and lower standard

goods. Including food produces that

4:23:454:23:51

are a vital part of the Welsh

economy. The UK Government has not

4:23:514:23:57

negotiated a trade deal since

joining the customs union. There is

4:23:574:24:02

little expertise in the British

civil service to deal with the task

4:24:024:24:05

at hand. In the last Parliament, I

visited Washington, DC with a

4:24:054:24:11

parliamentary delegation to

scrutinise the deal between the EU

4:24:114:24:16

and the US and we had a British

government official with him. I

4:24:164:24:21

asked him one evening Hamley people

were in his team, he said it was

4:24:214:24:24

just him. And I think that gives an

indication of the challenge ahead in

4:24:244:24:33

getting the civil servants ready to

deal with the challenges we will

4:24:334:24:36

face in terms of trade policy.

Recent reports interims of staffing

4:24:364:24:42

in the international trade

Department and the expertise needed

4:24:424:24:44

in that department don't give us,

doesn't give me much ground for

4:24:444:24:51

confidence. There is a huge amount

of work that needs to be done to get

4:24:514:24:57

the British state ready for the

shark infested waters of modern

4:24:574:25:01

international trade negotiations.

They are hugely complex issues.

4:25:014:25:05

While I bet professed to being an

international trade expert in any

4:25:054:25:09

way shape or form, it seems clear to

me that large trading blocs have far

4:25:094:25:13

more power than smaller trading

blocs in negotiations. EU, the EU

4:25:134:25:19

customs union is the worlds most

trading block. I think there are big

4:25:194:25:31

questions for us as we move forward,

whether the UK as an insula trading

4:25:314:25:35

block will be able to perform the

same tasks to the same ability. But

4:25:354:25:42

judging the aforementioned visit to

Washington, we had a number of

4:25:424:25:44

difficult meetings with US sectors,

all the moaning EU intransigence but

4:25:444:25:51

the reality is they had no option

other than to accept it because the

4:25:514:25:57

EU was such a large trading block. I

remember meeting with the food

4:25:574:26:02

sector during that visit and they

weren't pressing the need to open up

4:26:024:26:05

new markets and the hormone beef

they have in the US and GM products,

4:26:054:26:12

they knew there was no way they

could get that past EU negotiators.

4:26:124:26:16

I wonder if UK negotiators will be

able to withstand that pressure when

4:26:164:26:20

it comes to negotiations with the

US, I doubt it very much.

I thank

4:26:204:26:28

him, he is being very generous. He

may be interested to know that I

4:26:284:26:32

asked the Parliamentary question a

couple of ways ago to ask the

4:26:324:26:35

Department for International Trade

Hamley people they had in their

4:26:354:26:37

department who had successfully

completed a trade negotiation. The

4:26:374:26:41

answer I got was the newly appointed

Crawford Faulkner. So there is

4:26:414:26:46

apparently one person within the

department who has completed a trade

4:26:464:26:50

negotiation.

I think that gives us

grounds for huge concern. These

4:26:504:26:57

negotiators will be up against

expert teams who have been doing

4:26:574:27:01

these negotiations for many years.

Not just the EU deal but if the

4:27:014:27:05

government wants to take on the

United States as one of its first

4:27:054:27:09

options in a trade deal, I would

advise them, as we have on the

4:27:094:27:14

Brexit select committee, that

perhaps the UK should look at

4:27:144:27:16

smaller countries rather than

something as powerful as the US

4:27:164:27:25

trade lobby. It has also been

mentioned many times in this debate

4:27:254:27:30

about the numerous international

trade deals that the EU customs

4:27:304:27:34

union audit has, it has over 50

countries with a number of other

4:27:344:27:37

trade negotiations still ongoing and

a third of all EU trade by EU

4:27:374:27:50

members goes to these countries.

When the international trade

4:27:504:27:53

Department was set up and we had the

first question time with the

4:27:534:27:59

international trade sector, I would

ask about these trade deals we have

4:27:594:28:02

across the world. His view was that

these would be renegotiated

4:28:024:28:06

seamlessly. I fear that was extreme

IVT because why would these

4:28:064:28:14

countries agree to the same terms

and conditions with a far smaller

4:28:144:28:17

trading bloc which the UK will be,

compared to the terms and conditions

4:28:174:28:22

they have with the European customs

union. They will look after and

4:28:224:28:27

promote their own interests rather

than just accepting what is on the

4:28:274:28:30

table now. The British government's

intended policy of leaving the

4:28:304:28:36

single market and the customs union

is all ready having a huge impact on

4:28:364:28:38

standard of living of Welsh people.

The Centre for economic performance

4:28:384:28:43

has come later that Brexit has cost

the average worker in Wales £448

4:28:434:28:49

annually already. In terms of cost

of living, disproportionately

4:28:494:28:56

affecting people in Wales and that

is before we even leave the European

4:28:564:28:59

Union. The 90% of Welsh food

destined for the customs union could

4:28:594:29:06

be disastrous for the constituency I

serve. I was amazed to find out from

4:29:064:29:15

sheep farmers that 50% of their

produce goes to the European Union

4:29:154:29:20

customs union, 50% of their sheep

produce would go directly to the

4:29:204:29:26

customs union. So domestic markets

are not going to be able to fill

4:29:264:29:30

these gaps if we lose unfettered

access to the European markets. It

4:29:304:29:37

is also worth concentrating on some

of the tariffs associated with food

4:29:374:29:41

products. The average tariff on

dairy products is 38%. For meat

4:29:414:29:46

products, you are talking 58 or 70%.

That would make our products

4:29:464:29:55

destined for the EU and competitive.

Food producers, farmers are

4:29:554:30:00

preparing at the moment, they need

answers now, they can't wait for a

4:30:004:30:04

protracted trade negotiation. I want

to concentrate also on the leaving

4:30:044:30:11

of the customs union on the broader

between the British state and the

4:30:114:30:16

Republic of Ireland. This has had

considerable coverage in the media

4:30:164:30:24

because the border is one of the few

sticking points before we reach the

4:30:244:30:30

first base of negotiations with the

European Union. Despite the focus

4:30:304:30:37

being on this, we are no nearer a

solution. And press reports in to

4:30:374:30:43

indicate that matters are getting

more difficult. I think the British

4:30:434:30:48

government have miscalculated the

resolve of the European Union. Their

4:30:484:30:52

overriding priority in these

negotiations is going to be

4:30:524:30:55

maintaining the integrity of the

single market and the customs union.

4:30:554:30:58

By choosing to leave these

frameworks, the UK will become the

4:30:584:31:01

first country, a competitor. They

will not be in that solution I have

4:31:014:31:07

your cake and eat it solution. There

will be no such thing as a special

4:31:074:31:15

partnership. You will either be a

part of the single market or the

4:31:154:31:19

customs union or the best you can

hope for is a free trade agreement.

4:31:194:31:23

Like the recent Canadian deal. It

has been a welcome development in

4:31:234:31:29

recent months that both the Labour

Party and the government seem to

4:31:294:31:32

have now come to the idea of a

transition as a good idea. But the

4:31:324:31:40

key question is what happens at the

end of the two years?

Would he agree

4:31:404:31:46

that the reality of it is that we

are not going to get a great deal

4:31:464:31:52

because the EU doesn't want to give

us a great deal because if they give

4:31:524:31:55

us a great deal then they would have

to have it to a whole load of other

4:31:554:31:59

people who might decide to leave the

European Union. While I am not

4:31:594:32:03

saying they want to punish us, I

don't think they do, but they have a

4:32:034:32:08

responsibility to keep the European

Union together.

I think she catches

4:32:084:32:13

my sentiments exactly. By deciding

to leave the single market and the

4:32:134:32:18

customs union, we are effectively

become a competitor, a third

4:32:184:32:22

country. On that basis, the

overriding priority of the European

4:32:224:32:26

Union will be to protect their

interests. I think the negotiations

4:32:264:32:30

and a lot of the problems arising

could be dubbed with if we said we

4:32:304:32:37

wanted to stay in the single market

and the customs union. Returning to

4:32:374:32:42

the transition period, I do think

that is a welcome development but I

4:32:424:32:47

am unclear if the government and the

Labour Party at the agreed whether

4:32:474:32:52

they want to be in the customs union

or a customs union. But even if we

4:32:524:32:58

did decide to stay in the single

market and customs union for the

4:32:584:33:01

transition period, the question

arises what happens at the end of

4:33:014:33:05

the two-year period. The deal with

Canada took far longer than two

4:33:054:33:11

years to negotiate. The chief

negotiator on the half of the

4:33:114:33:23

European Union in regards to the

border with island has said that the

4:33:234:33:27

EU will not tolerate a soft border

between the six counties and the

4:33:274:33:36

republic as a way of avoiding the

trade consequences of leaving the

4:33:364:33:40

customs union. That is the crux of

the problem we find ourselves in.

4:33:404:33:46

Even if the British government,

which as it stands, in my

4:33:464:33:51

understanding, there will be two

types of borders between the Irish

4:33:514:33:55

Republic and the British state. You

will have a soft border on the

4:33:554:34:02

island of Ireland and there will be

a hard border on the Maritime divide

4:34:024:34:05

between Ireland and Wales. This will

inevitably have a huge impact on

4:34:054:34:11

Welsh ports. You talk about the

tailbacks we might get in Dover and

4:34:114:34:20

the Channel Islands, the same will

be for Welsh ports. The

4:34:204:34:23

infrastructure is not there to deal

with those challenges but it might

4:34:234:34:27

lead to a diversion of business away

from the traditional Wales and

4:34:274:34:32

Ireland trade routes. So instead of

businesses and trade flowing between

4:34:324:34:42

the Dublin to Fishguard and

Pembroke, trade will be flown

4:34:424:34:49

between Belfast and other parts of

the UK. We have to remember that the

4:34:494:34:53

Welsh ports sustain thousands of

jobs and as an unintended

4:34:534:34:58

consequence of the British

government's muddled policy. I want

4:34:584:35:02

to finish with one last point in

terms of the constitutional

4:35:024:35:08

arrangements in the UK.

International trade is a reserved

4:35:084:35:11

matter. However trade policy could

have massive implications for the

4:35:114:35:18

Welsh, Scottish and Northern Irish

governments on devolved competences.

4:35:184:35:22

If the British government allows

food standards of lower standard

4:35:224:35:27

into the UK that would impact on

Welsh agricultural policy and our

4:35:274:35:32

ability to export to our main

European markets. If the British

4:35:324:35:36

government for whatever reason opens

up public services to further

4:35:364:35:43

interference, this would

fundamentally undermine the ability

4:35:434:35:47

of the devolved governments to

deliver competences within the

4:35:474:35:52

public services they have

responsibility for. There are

4:35:524:35:55

properly a whole range of problems I

haven't even thought of yet.

4:35:554:36:02

In recognition of these problems,

the White Paper talks about the

4:36:024:36:13

reconstitution of representatives

from all four constituent parts but

4:36:134:36:15

this doesn't go anywhere near for a

laugh. -- near far enough of the

4:36:154:36:21

trade policy needs to be shared

between everyone. EU trade deals

4:36:214:36:29

leading doors were from all member

states and even some national

4:36:294:36:32

governments as we saw with the

issues with Belgium. It would be

4:36:324:36:41

incredible if we have trade policy

the sole preserve the Westminster

4:36:414:36:46

neglecting the interests of Wales,

Scotland and Northern Ireland, not

4:36:464:36:51

allowing our devolved and democratic

governments and parliaments to have

4:36:514:36:53

a say on those policies, so in my

view Brexit will make a new UK

4:36:534:36:58

constitutional settlement

inevitable, intergovernmental

4:36:584:37:03

networks will need to be formalised

and strengthened. If it fails to do

4:37:034:37:10

so, every trade deal could

potentially be a constitutional

4:37:104:37:13

crisis.

Peter Grant.

Thank you very

much. I'm pleased to speak in favour

4:37:134:37:22

of the amendments and I sincerely

hope it will go to a vote later this

4:37:224:37:29

evening. I don't anyone here would

disagree with the need to have

4:37:294:37:34

customs legislation of some kind in

place, given that many of the

4:37:344:37:37

customs legislation we currently

have is derived from EU legislation,

4:37:374:37:43

no one would argue with the fact

that when the UK leaves the European

4:37:434:37:46

Union, that legislation needs to be

replaced, but as so often in the

4:37:464:37:51

debate about the European Union, we

have moved quickly from needing

4:37:514:37:55

something in place, to be told you

have agreed to put this in place,

4:37:554:37:59

whether you like it or not, and it

is quite clear there is a

4:37:594:38:03

fundamental disagreement between a

substantial majority of members in

4:38:034:38:11

this house and the government. As

well as paving the way for new

4:38:114:38:17

customs tariffs which is what the

resolution is about, this also paves

4:38:174:38:26

the way for additional bureaucracy

and infrastructure and border delays

4:38:264:38:31

to leaving the customs union will

inevitably create for every single

4:38:314:38:37

journey of every single person and

every single lorry and every single

4:38:374:38:41

suitcase that travels to and from

the European Union in future. It is

4:38:414:38:45

to be an estimated an additional

548,000 customs declarations needed

4:38:454:38:52

every single date, over six per

second.

I'm sure even recognise with

4:38:524:39:01

me that this particular problem will

apply pretty severely to perishable

4:39:014:39:09

goods, like food, agricultural goods

and fresh fresh.

Absolutely.

4:39:094:39:17

Significant indications for the

supply chain for manufacturing, and

4:39:174:39:26

there are indications for medical

supplies as well which are useless

4:39:264:39:30

if they are held up for a few hours

at customs and that is before we

4:39:304:39:34

think about the massive

inconvenience to travellers for

4:39:344:39:37

business and leisure, and even if

they have nothing to declare and

4:39:374:39:43

have no guarantee they won't be on

the plane for whatever reason UK or

4:39:434:39:48

French customs decide they are going

to search every single passenger

4:39:484:39:50

coming off that plane. We are told

in return for that we will have this

4:39:504:39:55

brave new world of trade deals with

everybody and anybody, the member

4:39:554:40:01

for Aberdeen South harked back to

the glory days of Glasgow's place as

4:40:014:40:04

the second city of Empire,

forgetting that to our eternal shame

4:40:044:40:10

the Empire was built on slavery, and

we can't go back to the days when

4:40:104:40:14

Glasgow becomes a huge trading

taught for tobacco and sugar and

4:40:144:40:20

cotton because we know had the slave

plantations that was such an

4:40:204:40:23

important part of that economic

model, thank God. We are not going

4:40:234:40:28

back to the days of Empire and the

virtual reality members on the other

4:40:284:40:36

side of the house need to understand

that the empire has gone, it's no

4:40:364:40:40

partnership and partnership means if

we are in a weakened position and

4:40:404:40:44

the big players of the Chinese and

Singapore and Malaysia are in a

4:40:444:40:49

strong position, we won't get a

favourable deal from them if we

4:40:494:40:52

negotiate on our own. This I want to

be in the customs union, that has

4:40:524:41:02

been made clear, that offers the

simplest and least disruptive way of

4:41:024:41:06

getting effective the referendum

result, and the referendum gave a

4:41:064:41:13

mandate to leave the European Union,

we have to respect that, but there

4:41:134:41:18

has never been a referendum mandate

to leave the customs union or to

4:41:184:41:21

leave the single market, but it

looked to be a spontaneous decision

4:41:214:41:30

by the Prime Minister, redline that

was drawn which has painted the

4:41:304:41:35

government into a corner, it is

becoming clear that many of the

4:41:354:41:41

government's own highly plausible

objectives can't happen if they

4:41:414:41:44

leave the single market, highly

plausible objectives such as the

4:41:444:41:48

deed and special partnership we will

have with the European Union --

4:41:484:41:52

deep. The continued association with

the customs union, the free

4:41:524:41:59

frictionless trade with the EU,

except it won't be a special

4:41:594:42:08

association and it won't be anything

like as free and frictionless a

4:42:084:42:13

trade deal as we can get by staying

where we are now in the single

4:42:134:42:16

market. As an indication of how much

substance there is to these sound

4:42:164:42:22

bites that the government is so fond

of encouraging the backbenches to

4:42:224:42:27

use, it's worth remembering that

just over two years ago they were

4:42:274:42:29

doing the same thing, but the sound

bites that were getting cheers on

4:42:294:42:33

the Tory benches were long-term

economic plan, it here here, they

4:42:334:42:39

would shut, majority Conservative

government, here, they would shout,

4:42:394:42:45

but the government's current

platitudes about trade deals are

4:42:454:42:48

likely to be just as quickly

dismissed just as quickly as I

4:42:484:42:55

thought other things were going to

be around for a long time from 2015.

4:42:554:43:01

There is not one single major policy

area for the government to have put

4:43:014:43:07

forward a clear concrete proposal

for discussion, and that means that

4:43:074:43:11

on every major policy decision, the

government had taken longer to come

4:43:114:43:14

up with idea than 27 parliaments and

governments are going to have two

4:43:144:43:20

agree, putting pressure on them,

they will act and speak in the

4:43:204:43:28

interests of their people, it is

ridiculous to condemn the Irish by

4:43:284:43:33

minister for speaking in favour of

the people of the Republic of

4:43:334:43:37

Ireland, that is what Prime Minister

is to do and I wish some would

4:43:374:43:40

listen to that. We are in danger of

crashing out of the EU without the

4:43:404:43:45

deal and there is a simple way the

government can avoid that. The

4:43:454:43:48

simple way that the government can

move very very quickly to clear the

4:43:484:43:53

logjam to avoid having a terminal

discussion about Northern Ireland

4:43:534:43:59

and to avoid having internal

discussions about the rights of 4.5

4:43:594:44:03

million citizens, both of those

problems can be resolved simply by

4:44:034:44:08

the government having the humility

to say we got it wrong, but we had

4:44:084:44:13

to change tact and stay in the

single market, and there is an

4:44:134:44:16

urgent need for the government to

follow its own advice and to listen

4:44:164:44:19

to its own rhetoric and to follow

the advice that the Brexit Secretary

4:44:194:44:24

gave to the Germans lastly, stop

putting politics before prosperity

4:44:244:44:29

-- last week. Take the decision to

avoid the worst economic and social

4:44:294:44:35

damage of the Brexit, the government

should confirm they want to remain

4:44:354:44:39

in the single market and the customs

union and they should signal that

4:44:394:44:43

intention by accepting the moments

from the Honourable member from

4:44:434:44:47

Edinburgh South.

Stella Creasy.

It

is a pleasure to follow the member

4:44:474:44:57

who is making another powerful case

for what I think is becoming

4:44:574:45:02

incredibly evident within British

psyche -- British society but let me

4:45:024:45:09

start by trying to find common

ground, and I don't think anyone

4:45:094:45:13

here has tried to rerun the

referendum, we already lies the

4:45:134:45:17

result of the referendum, dashing we

all recognise -- we all recognise

4:45:174:45:24

the result of the referendum. I

think we can get deals with

4:45:244:45:29

everybody, but what kind of deal and

what are the consequences of it,

4:45:294:45:32

including no deal. Yesterday we

could get a free trade deal with

4:45:324:45:36

other countries, but as we saw when

Switzerland tried to negotiate with

4:45:364:45:43

China, when big goes against little

bit results often not good for

4:45:434:45:46

little, that is a real Hobson 's

choice, so China has immediate

4:45:464:45:50

access to the Swiss market whilst

the Swiss have to wait decades to

4:45:504:45:54

get similar access to the Chinese

market. All of these options have

4:45:544:46:00

consequences including the option

that this government has taken in

4:46:004:46:03

the last 18 months to fudge and bomb

passed their way through this, so I

4:46:034:46:07

welcome the fact that we are having

this debate finally, because I think

4:46:074:46:12

above all and in my contributions

like, I want to speak up for the

4:46:124:46:16

people whose lives depend, whose

businesses depend on the certainty

4:46:164:46:21

of being able to know what happens

next. It is a certainty they are not

4:46:214:46:27

getting from Ms government for the

we have 759 different treaties that

4:46:274:46:32

have to be renegotiated and there

has been no progress 18 months on.

4:46:324:46:37

We are less than 18 months away from

the date at which we are supposed to

4:46:374:46:42

leave the European Union, this

government is spending money hand

4:46:424:46:45

over fist to sort out the mess they

are creating every single day, that

4:46:454:46:50

is money coming from the Armed

Forces and today the ministers

4:46:504:46:53

confirmed that is money coming from

the education services as well.

4:46:534:46:58

Money being re-prioritise to figure

out what on earth a deal with Europe

4:46:584:47:01

would look like. 80 months on, no

answers. And all because the

4:47:014:47:08

government and the Prime Minister

cannot admitted that she simply got

4:47:084:47:11

it wrong in that Lancaster house

speech when she rolled out access of

4:47:114:47:17

the customs union and the single

market -- ruled out. I speak in

4:47:174:47:22

support of the amendment, and I just

want to say I'm supporting this

4:47:224:47:27

amendment because I believe the

British public deserve better and if

4:47:274:47:32

this government is going to make a

mess of it, we have got to try give

4:47:324:47:35

the people we represent who need

that certainty, the need to

4:47:354:47:38

understand what their future holds,

the clarity they desire. I will give

4:47:384:47:42

way.

Does it say something about the

Prime Minister's priorities cover

4:47:424:47:49

that she took time to apologise to

the backbenches for the disastrous

4:47:494:47:57

election but she won't apologise

over the disastrous Brexit she is

4:47:574:48:01

taking us into.

I did not vote for

the Article 50 trigger ring, but

4:48:014:48:11

some disasters are of your own

making, and the prime ministers

4:48:114:48:18

should have learned from the snap

election. In the Lancaster house

4:48:184:48:23

speech she said she wanted to be a

say member of the customs union,

4:48:234:48:28

which doesn't exist. This

legislation is supposed to answer

4:48:284:48:32

that question, yet I've read that

White Paper the government has put

4:48:324:48:36

forward, I've asked the Prime

Minister repeatedly about this idea

4:48:364:48:39

of associate membership and I've

asked her if she has raised it with

4:48:394:48:42

her European counterparts, aimed yet

we have no answer. It's a bit like

4:48:424:48:48

me saying I would like to be in a

social member of a gym, uses women

4:48:484:48:52

Paul Bird not have to pay for the

classes, -- use the swimming pool

4:48:524:48:57

but not pave the classes, and one Li

Na, most businesses would turn you

4:48:574:49:03

down -- and funnily enough. You

wonder where this mythical

4:49:034:49:09

partnership the UK Government

believes they can get is even on the

4:49:094:49:11

table, because it makes no sense. If

you look at the relative how we

4:49:114:49:16

trade as a nation, we are not an

island factory, we are a nation that

4:49:164:49:20

works with other countries to

produce goods and are proud of the

4:49:204:49:22

goods that we produce through our

hard endeavour. Let me give a great

4:49:224:49:28

example, the food and beverages

industry, EU accounts for almost 70%

4:49:284:49:32

of our supply chain, and in and our

current

-- in our car in history,

4:49:324:49:43

there is also

the fact we are very

good at making some aspects of car

4:49:434:49:50

components but not other components,

and that is why we work together to

4:49:504:49:55

make those great British cars we are

proud of, and it is the ability of

4:49:554:50:01

the EU to navigate those

relationships effectively and

4:50:014:50:04

efficiently, for everyone pound a

car exports on the UK 44p is spent

4:50:044:50:10

on importing foreign parts and 24%

are from the kindest E and that's an

4:50:104:50:17

stake when we suddenly rip up the

roles by which that relationship --

4:50:174:50:20

from the car industry. In 14

different sectors at least 15% of

4:50:204:50:25

the supply chain is dependent on the

European Union, dependent on not

4:50:254:50:30

having the kind of customs tariff we

are talking about, on having the

4:50:304:50:33

fiction is trade.

4:50:334:50:40

In the rubber and plastics industry,

69%, pharmaceuticals, 66%. That is

4:50:404:50:47

why we know that leaving the customs

union will cost us £25 billion.

4:50:474:50:52

Those new tariffs alone will add

£4.5 billion a year extra to

4:50:524:50:57

importers, money they can ill afford

to spend. It is then when you get to

4:50:574:51:02

the practicalities, not just about

the money that being part of the

4:51:024:51:05

customs union and single market

helps us pay. We will see delays at

4:51:054:51:10

Dover because no one has created the

technology for this frictionless

4:51:104:51:16

trade. It is still more paperwork.

It is still more complexity in the

4:51:164:51:22

supply chain. The car industry is

desperate for us to continue our

4:51:224:51:26

membership of the customs union, the

National farmers union, because

4:51:264:51:32

being a part of the EU already gives

us access to those markets, not just

4:51:324:51:37

within the EU but with our free

trade agreements. A third of all

4:51:374:51:41

global markets have preferential

trading deals. When you look at the

4:51:414:51:47

case for the customs union and what

it gives us now on it is very clear

4:51:474:51:51

this is not about missed out for ode

to Joy, this is business sense that

4:51:514:51:57

says if you have a good way of

working, why would you rip it up?

4:51:574:52:02

But that is exactly what this

government is doing for something

4:52:024:52:05

that 18 months later they still

cannot outline will exist. I'm sorry

4:52:054:52:10

to say I have made the Minister is

entirely the front bench by pointing

4:52:104:52:14

that out because I really hope that

one minister will be here to answer

4:52:144:52:17

one of my particular concerns with

this legislation we are going to

4:52:174:52:21

have and the concept of our VAT

proposals. I want to unmask myself

4:52:214:52:29

as a geek interested in VAT. Because

I know that when I talk to small

4:52:294:52:35

businesses in my community, VAT is

one of their prime concerns. I am

4:52:354:52:39

grateful to see the minister here,

the 13th directive is something he

4:52:394:52:46

knows intimately. VAT is one of

those things that every business

4:52:464:52:49

will say is a nightmare. I never

thought that those on this side of

4:52:494:52:53

the House would be arguing for less

red tape in comparison to those on

4:52:534:52:57

the government side but that is

exactly what we are talking about a

4:52:574:53:01

night. Because 63% of those small

businesses say that Europe is their

4:53:014:53:07

priority market. If you add to the

paperwork they have to deal with by

4:53:074:53:12

removing the customs union and

single market, then of course it

4:53:124:53:15

will make trading harder for them.

Compared to the bigger countries --

4:53:154:53:21

companies, they will not have that

freedom. Businesses incurring VAT in

4:53:214:53:26

the EU are able to claim it back

through intercountry mechanisms. If

4:53:264:53:31

you sub printers to Sweden and incur

VAT is part of that, you can claim

4:53:314:53:36

it back and it is relatively easy to

do. Specifically it is articles 170

4:53:364:53:46

and 171 slash 11 to slash EC to the

prime VAT directive. And it is in

4:53:464:53:55

our legislation so these ways and

means resolutions will have to

4:53:554:53:58

address this point. I am sad to see

the Treasury minister is not because

4:53:584:54:02

I have been raising it with him for

some time. I can see him talking to

4:54:024:54:09

his officials, I hope he will

finally be able to tell me the

4:54:094:54:13

answer to this because right now,

because we have the single market,

4:54:134:54:17

businesses can reclaim their VAT

relatively simply. If we leave the

4:54:174:54:22

single market come they will have to

move on the 13th directive. This

4:54:224:54:28

covers non-EU countries -- companies

when they are trading in the EU.

4:54:284:54:34

When you look at the details of the

13th directive, it is clearly

4:54:344:54:37

written to the to the advantage of

companies themselves, saying they

4:54:374:54:42

can set their own VAT terms. Think

about that for a moment. If you are

4:54:424:54:47

UK, new factor trying to trade in

those radiators from across and you

4:54:474:54:53

suddenly have to deal with VAT a

cost 27 different countries and 27

4:54:534:54:59

different pieces of paper. I am glad

he is here because I know that he

4:54:594:55:03

and I share a concern to remove red

tape for businesses to make sure

4:55:034:55:06

that British businesses are not

facing additional paperwork and

4:55:064:55:12

complexity. I will happily give way.

I thank her for giving way, does she

4:55:124:55:18

agree that the serious problems for

businesses which he has so ably

4:55:184:55:23

identified have implications for the

whole of local communities as

4:55:234:55:29

companies integrate difficulties and

jobs may be last, that reduces

4:55:294:55:33

spending power and affects the whole

community is services there.

This is

4:55:334:55:38

the challenge we face because 18

months on, it is not unfair that

4:55:384:55:42

businesses across the country are

asking what's next. Asking how they

4:55:424:55:46

might adapt to whatever the final

deal with Europe might be. 18 months

4:55:464:55:50

on, none of us are any closer to

being able to give them any answers

4:55:504:55:55

at all. White papers that talk about

ambition and creativity in VAT

4:55:554:55:59

proposals are not what they need.

They need clarity. If they are going

4:55:594:56:04

to have to learn new systems and

have additional paperwork and

4:56:044:56:07

excessive delays in imports and

exports, they need to be able to

4:56:074:56:12

account and adjust for it. The

government can say all they want

4:56:124:56:16

about getting these ambitious deals

but there are 27 other countries

4:56:164:56:20

they have to negotiate with who are

quite happy with the relationships

4:56:204:56:24

they already have, who are perfectly

happy with the intra- EU

4:56:244:56:28

arrangements they already have. They

think the customs union works for

4:56:284:56:32

them. So if we want to have

frictionless trade and we want to

4:56:324:56:36

make it as easy as possible for our

business is big or little to trade

4:56:364:56:40

if we want to make it possible for

them to have as little paperwork and

4:56:404:56:45

as digitised as it is, the answer is

the single market and the customs

4:56:454:56:48

union. In 18 months, no one has been

able to come up with a better

4:56:484:56:53

arrangement and I wager that in 18

months' time the answer will still

4:56:534:56:58

be the same. Let us not leave

British businesses any longer. I am

4:56:584:57:04

backing this amendment because I

want to be able to go to those

4:57:044:57:07

businesses in my community who trade

with Europe and say that this is

4:57:074:57:10

what it is going to look like. You

can plan ahead in your supply chain

4:57:104:57:15

and do the deals you need to do and

invest. I understand why they feel

4:57:154:57:19

they can't do that right now and I

know it is my job to help them gain

4:57:194:57:23

that certainty. That is why I am

asking other members to join us in

4:57:234:57:27

voting for this amendment and giving

this government the message that

4:57:274:57:31

Britain deserves better.

Thank you

for the opportunity to make a brief

4:57:314:57:40

contribution to tonight 's debate. I

want to support my honourable friend

4:57:404:57:44

for Bootle on the front bench,

powerful case for preventing

4:57:444:57:50

Parliament from being sidelined on

this issue. I want to work the

4:57:504:57:54

significant contribution for the

member from Edinburgh South. The

4:57:544:58:00

provision for customs duties is a

crucial consideration in what is

4:58:004:58:03

rapidly unravelling is a very

expensive and complicated process of

4:58:034:58:07

Brexit. The home affairs committee

of which I am a member held an

4:58:074:58:13

enquiry looking in detail such

customs operations in the delivery

4:58:134:58:16

of Brexit. The evidence given to our

committee should give all of us

4:58:164:58:20

great cause for concern, especially

if the governments unspecific plans

4:58:204:58:27

proceed unamended. Delivery of

customs policy is a cross government

4:58:274:58:31

process with a wide range of

departments and agencies working in

4:58:314:58:35

a delicate balance and under

significant pressure. The impact of

4:58:354:58:40

the changes to the customs regime

are widespread and there are serious

4:58:404:58:44

concerns about the urgent work

needed what for transport

4:58:444:58:47

infrastructure and H MRC.

Particularly in relation to a no

4:58:474:58:53

deal scenario which the Home

Secretary denied in our committee as

4:58:534:58:58

unthinkable. -- defined as

unthinkable. My constituency in

4:58:584:59:06

Croydon has been a key trading route

between the coast and the city for

4:59:064:59:11

another of years and continues to be

so, it is my job to ensure that

4:59:114:59:15

businesses and industry in my

constituency continue to flourish.

4:59:154:59:22

Sweeping new and unscrutinised

arrangements are a threat to our

4:59:224:59:24

domestic injuries and can choke up

the entire customs system. I want to

4:59:244:59:31

highlight a few issues highlighted

by the home affairs select committee

4:59:314:59:34

that highlight how important it is

to get this right. Having the right

4:59:344:59:37

checks and balances before changes

are made is a big part of this. IT

4:59:374:59:43

systems are particularly concerning.

The current system threatens to

4:59:434:59:48

become a horror show because of lack

of flexibility to cope with any new

4:59:484:59:53

rules after Brexit. The Chief

Executive of H MRC said that it was

4:59:534:59:58

vital and it would be catastrophic

if the system wasn't available on

4:59:585:00:02

Brexit day. H MRC will need to add

an additional 5000 staff by March

5:00:025:00:08

2019. Their capacity has been

mentioned already to deliver this

5:00:085:00:14

and it remains a significant concern

of the committee and the

5:00:145:00:17

government's planning to date was

completely unconvincing to the home

5:00:175:00:21

affairs committee. The National

Audit Office expressed concerns

5:00:215:00:24

about the struggles the border force

will face with the changes that will

5:00:245:00:31

come out of the multitude of

operational changes in a short

5:00:315:00:33

timescale. The chair of the select

committee said that getting things

5:00:335:00:39

wrong in the ports infrastructure

could lead to operations on

5:00:395:00:43

steroids. The least that people

would be the operation of the status

5:00:435:00:49

quo and that the government should

agree transitional arrangements to

5:00:495:00:53

that end, ie remaining in the

customs union. Finally the committee

5:00:535:00:58

expressed a lack of confidence in a

very important question of who is in

5:00:585:01:02

charge of this customs change. There

were not satisfied with the

5:01:025:01:07

government answers to this question,

the government officials, the fact

5:01:075:01:15

that multiple government departments

and agencies are involved in

5:01:155:01:18

delivering customs means that a

fully joined up approach from the

5:01:185:01:21

government is urgently needed. We

think the Minister of State should

5:01:215:01:30

Alyce be named as responsible for

customs. The more unfettered power

5:01:305:01:34

held by ministers the greater the

risk that we get this wrong and

5:01:345:01:39

leave our current system civilly

unable to cope. The current

5:01:395:01:42

government approach of trying to

undermine Parliament and doing

5:01:425:01:46

Brexit on the cheap and steering us

towards a no deal on sneaking

5:01:465:01:50

measures through the back door

should not be accepted by this

5:01:505:01:53

House. The honourable member for

Aberdeen North she had read all the

5:01:535:01:57

things and remained very unclear on

how customs would operate in the

5:01:575:02:00

future. I was part of the government

Olympic executive when we spent

5:02:005:02:06

years putting in place the right

frameworks and detailed planning for

5:02:065:02:10

the Olympic and Paralympic games.

This House will remember that the

5:02:105:02:13

one area where we faltered was the

recruitment of security staff by G

5:02:135:02:18

forest which led to the army being

brought in. We know today that there

5:02:185:02:24

are already problems with equipment

of staff in regards to Brexit. It is

5:02:245:02:29

crucial ministers do what they can

to ensure the right framework

5:02:295:02:31

remains in place or we continue with

the status quo on customs so that we

5:02:315:02:35

do not get to that same point again.

It is a pleasure to follow on from

5:02:355:02:43

so many excellent speeches today

around this crucial issue which

5:02:435:02:46

sadly seem to have attracted less

attention than I think it deserves

5:02:465:02:54

given our future trading

partnerships. It has been my view

5:02:545:02:56

that we should stay within the

customs union and I am glad the

5:02:565:02:59

Labour Party position keeps that

possibility open and I very much

5:02:595:03:03

agree with what my front bench

colleagues have said today about the

5:03:035:03:07

importance of scrutiny. This is not

just an customs deals but I have

5:03:075:03:12

sent -- signed many early day

motions that we need greater

5:03:125:03:14

scrutiny on this place on trade

deals per se, it is only right that

5:03:145:03:22

they are properly scrutinised in

this place. For me, there are

5:03:225:03:25

fundamental issues here. I want to

draw on the report of the home

5:03:255:03:29

affairs committee on which I sit,

about these customs arrangements.

5:03:295:03:34

One is on the practicality and the

other on the cost. It encapsulated

5:03:345:03:37

it for me Madam Deputy Speaker when

our report said clearly that at some

5:03:375:03:44

ports, including Dover, as much as

99% of traffic relates to trade with

5:03:445:03:49

the EU. And witnesses have told our

predecessors that a no deal might

5:03:495:03:55

result in 100% of trade becoming

non-EU leading to a 100 fold

5:03:555:04:01

increase in the number of customs

declarations and that would present

5:04:015:04:05

an unprecedented challenge.

He can

see the coast of my constituency

5:04:055:04:16

across the Channel, does he

recognise that this issue, such as

5:04:165:04:18

the Bristol Port whether our tents

and thousands of cars, landing gear,

5:04:185:04:25

engines, it may not be an issue for

businesses but will clog up the

5:04:255:04:28

entire city of Bristol and ports

around this country, not just making

5:04:285:04:33

a nightmare for constituents but

ruining air pollution and business.

5:04:335:04:42

I wholeheartedly agree with those

points. I want to come onto the

5:04:425:04:46

error space industry which is

critical for the whole of Wales and

5:04:465:04:50

my own constituents -- the aerospace

industry. I want a highlight the

5:04:505:04:54

costs which the report made clear,

it highlighted the report, which

5:04:545:05:00

said it could cost traders between

£4 billion and £9 billion per year

5:05:005:05:07

based on their various estimates

including an expected 200 million

5:05:075:05:12

additional declarations after

Brexit, and Mark has estimated the

5:05:125:05:16

additional cost is likely to be

between 90 and £26 billion he as a

5:05:165:05:21

result of losing the customs

facilitation which EU membership

5:05:215:05:27

offers, and then you got a look at

the costs of putting in place the

5:05:275:05:30

infrastructure and we have heard

discussion about this, whether this

5:05:305:05:33

is Dover or other ports, like Welsh

ports and the maritime border

5:05:335:05:38

between Wales and the republic of

all -- the Republic of Ireland. John

5:05:385:05:51

Thompson the chief executive of HMRC

told the Public Accounts Committee

5:05:515:05:55

that they estimate the cost between

300-450,000,000 in the scenario of

5:05:555:06:03

the UK leaving the EU without the

deal and 500 additional staff would

5:06:035:06:06

need to be recruited, these are huge

sums and it is important that the

5:06:065:06:10

public understand the costs and

risks and the practicalities and

5:06:105:06:15

what ever they voted in a referendum

these are the facts that we need to

5:06:155:06:20

have before this House and the

country when we are taking decisions

5:06:205:06:23

going forward on the nature of our

relationship with our European

5:06:235:06:27

partners. I said I wanted to talk

about the aerospace industry and I

5:06:275:06:33

have spoken at my declarations in

the register of interests, Airbus

5:06:335:06:36

has been clear that their work

involves 80,000 tipsy year between

5:06:365:06:40

the UK and EU countries and that

relies on a seamless flow of goods

5:06:405:06:45

and people -- trips a year. If the

seamless nature is removed it is

5:06:455:06:50

dangerous for their business and

their prospects, and today Airbus

5:06:505:06:54

and the supply chain said on the

assumption that the UK became a

5:06:545:07:01

third country Airbus would need to

be dues a declaration -- would need

5:07:015:07:08

to produce a declaration which would

need up to 50 datasets including the

5:07:085:07:12

country of origin, that the moment

the Airbus flies on Toulouse,

5:07:125:07:17

Hamburg and Brighton, with only two

hours between landing and departure,

5:07:175:07:21

but should they need to wait for

additional customs inspectors this

5:07:215:07:25

would lead to delays and impact

their delivery schedule and they are

5:07:255:07:28

heavy penalties for Mr deliveries

and delays in parts and equipment,

5:07:285:07:35

and this is not just a trifling

matter, Airbus spent £5 billion

5:07:355:07:42

within their UK supply chain we are

looking at these issues, the

5:07:425:07:46

problems of transferring small parts

and equipment is back and forth, so

5:07:465:07:49

it will impact on their company and

also the supply chain which

5:07:495:07:52

stretches at much further than the

thousands of employees they employ

5:07:525:07:57

directly.

Darcy know of any plan

that the government has too solve

5:07:575:08:03

this problem for Airbus -- does he

know. These fantastic project which

5:08:035:08:08

relied on these different

components, moving right the way

5:08:085:08:14

across the European Union, so

frictionless Lee, does he know of

5:08:145:08:18

any alternative that anyone has come

up with?

I'm not aware of an

5:08:185:08:24

alternative and you sense a growing

frustration in the country with the

5:08:245:08:28

lack of information on this, and

Airbus have come out today in public

5:08:285:08:31

and made clear that they view the

need that we need a lengthy

5:08:315:08:36

transition in their own words, very

clear statement about what they want

5:08:365:08:39

in order to keep their business

going. I mention Rolls-Royce, I was

5:08:395:08:44

visited by shop stewards from

Rolls-Royce in Derby and they were

5:08:445:08:49

very clear, the implications, Simon

Hemmings, the chief negotiator from

5:08:495:08:56

Rolls-Royce said if we're not in the

customs union there will be job

5:08:565:08:59

losses and if we have a hard Brexit,

the foundations we have built will

5:08:595:09:03

not be built upon, they will be

built elsewhere, and that is

5:09:035:09:07

absolutely clear. Some aerospace

parts crossed the Channel five times

5:09:075:09:12

as they move across the assembly

lines in the UK and continental

5:09:125:09:17

Europe and that is one example of

one industry which contributes a lot

5:09:175:09:20

in terms of high skilled and

high-tech jobs in Wales and the

5:09:205:09:24

South West of and widely and we

ignore the concerns of those

5:09:245:09:29

businesses at our peril -- the

south-west and Derby and more

5:09:295:09:34

widely. It was clear, the different

indications, the concerns about the

5:09:345:09:41

IT systems and the time needed to

try new customs officials and the

5:09:415:09:46

worry about the Home Office carrying

out many of these checks, and only

5:09:465:09:54

has 300 ex-staff plan, yet we hear

HMRC saying up to 5000 staff being

5:09:545:10:01

needed -- 300 staff plan. It is

crucial that we have trained and

5:10:015:10:07

skilled staff in place, but an

crucially for our security we do not

5:10:075:10:12

see staff who are there to check our

borders, checking passports and

5:10:125:10:17

people who are involved in May be

illegal activity, are not diverted

5:10:175:10:22

from checks of passports into

dealing with customs backlogs, and

5:10:225:10:29

you can imagine a situation where we

crash out of no dear, have queues

5:10:295:10:32

and Operation Stack on steroids, the

government dragging staff back and

5:10:325:10:37

forth, ending up with delays on one

hand, and delays at customs, if we

5:10:375:10:43

don't plan and we don't get the

staff in place, then we will have

5:10:435:10:46

serious problems. The report is very

clear, that given the times and the

5:10:465:10:54

changes in staffing technology and

infrastructure, border force and

5:10:545:10:58

HMRC, we need to clarify rapidly if

and what changes will be required

5:10:585:11:03

the transition and crucially how

much those will cost and it is only

5:11:035:11:07

right that the British public in

this Parliament gets to see the

5:11:075:11:10

costs of a no deal Brexit or a hard

Brexit against the other options

5:11:105:11:14

like staying in the customs union.

If no deal is reached in the customs

5:11:145:11:20

arrangements it will result in all

those involved in customs in the UK

5:11:205:11:26

experiencing a huge amount of change

in a very short time, with either a

5:11:265:11:29

vast increase required in capacity

at the border and the risk of

5:11:295:11:34

significant delays at ports of entry

or inadequate checks taking place.

5:11:345:11:38

The minister said Cliff edge changes

were in no one's interests. I hope

5:11:385:11:47

the minister will come if we hear

from various more extreme elements

5:11:475:11:53

on his own benches coming forward,

say, get on with a no deal Brexit,

5:11:535:11:57

let's fall out of these

arrangements, that he will be the

5:11:575:12:00

first to condemn and criticise those

statements when they are made

5:12:005:12:03

because they will be at odds with

what he has told people might read

5:12:035:12:08

today. These issues are fundamental

to the future of our economy and

5:12:085:12:13

jobs and our ability to trade with

the rest of the world, it is

5:12:135:12:17

important they are given scrutiny

and that we understand the costs and

5:12:175:12:20

I commend the many speeches made

this evening.

Anneliese Dodds.

Thank

5:12:205:12:27

you very much. I'm grateful to the

minister for his marks but I have to

5:12:275:12:32

say that they and the resolutions

themselves leave four very important

5:12:325:12:37

problems unresolved and many members

have spoken about these problems

5:12:375:12:41

today, our -- I will speak about

this as much as I can. The

5:12:415:12:50

resolutions fail to make sure that

the government's approach customs is

5:12:505:12:53

properly democratically accountable,

the member for added Aberdeen said

5:12:535:13:01

the resolutions were a muddle and I

actually think there is an element

5:13:015:13:07

of coherence, as put forward clearly

by my friend from Edinburgh South

5:13:075:13:12

and Bootle, they said there is the

paragraph we have seen sadly

5:13:125:13:18

occurring within the EU withdrawal

bill and elements of the Finance

5:13:185:13:21

Bill and the trade bill, these

resolutions would give ministers the

5:13:215:13:25

ability to vary customs duties

without proper Parliamentary

5:13:255:13:27

scrutiny as we see it and we cannot

stand by as we are accountable to

5:13:275:13:34

our constituents who could suffer

greatly from that kind of action.

5:13:345:13:38

When it comes to the transition

period, the minister would only say

5:13:385:13:42

that we needed some kind of customs

Association during the transition,

5:13:425:13:46

it is unfathomable to us on this

side of the house, why the

5:13:465:13:52

government is refusing to rule out

continuing customs union membership

5:13:525:13:55

even for a transition period when

this is what business are clearly

5:13:555:13:59

has demanded. Thirdly, we had again

very little enlightenment about the

5:13:595:14:06

capacity of HMRC and the concrete

actions that will be taken by

5:14:065:14:10

government to deal with many of the

challenges that many of my

5:14:105:14:12

colleagues have expressed very

eloquently. By friends from

5:14:125:14:18

Liverpool Riverside and Walthamstow,

expressing concerns about the

5:14:185:14:22

administrative burdens that will be

applying, and my friend from Cardiff

5:14:225:14:27

South, and it has been suggested

that the number of customs

5:14:275:14:29

declarations could shoot up 100%, in

a context when HMRC's headcount has

5:14:295:14:35

been reduced by over 16 since 2010,

and we did not have the

5:14:355:14:41

clarification about the scope of the

trade remedies authority despite my

5:14:415:14:50

friend from Stoke-on-Trent Central

pushing hard on this issue. We have

5:14:505:14:52

had much discussion about the

dangers of a hard border between

5:14:525:14:57

Ireland and Northern Ireland and I

can say very strongly that on these

5:14:575:15:01

benches we don't just want an

aspiration to avoid such a border,

5:15:015:15:05

we need cast-iron assurance and we

don't have that yet. I want to move

5:15:055:15:10

to discuss amendments he and F and I

understand with many of these

5:15:105:15:17

sentiments underline these

amendments, especially as they were

5:15:175:15:19

articulated by my friends from

Edinburgh South and Nottingham East.

5:15:195:15:24

It is right to highlight as they did

the recklessness of this government

5:15:245:15:28

in ruling out membership of the

customs union is part of the future

5:15:285:15:32

relationship with the EU but I am

concerned about how these amendments

5:15:325:15:35

would interact with WTO rules not

least because the government's

5:15:355:15:41

disturbing unwillingness to leave

the EU without a deal, because these

5:15:415:15:46

moments members will apply

regardless of the future customs

5:15:465:15:51

model, it is not restricted as

currently drafted, and we have

5:15:515:15:56

repeatedly indicated while leaving

the EU without a deal would be a

5:15:565:15:58

huge blow to British businesses and

British jobs but the government has

5:15:585:16:02

failed to rule out this eventuality

and its existing negotiating

5:16:025:16:07

approach is not inspire, that is,

quite the opposite.

Thank you

5:16:075:16:12

forgiving way. -- for giving way.

Can I read your comments as a

5:16:125:16:20

statement that the front bench

supports staying in the customs

5:16:205:16:24

union but on technicalities will not

support this amendment. Do you

5:16:245:16:28

support staying in the customs union

on the front bench?

I'm grateful for

5:16:285:16:32

the intervention, the Labour Party

position is that we want to leave

5:16:325:16:38

all possibilities open and we think

that is an appropriate approach to

5:16:385:16:41

take. I see the government laughing

at this, and we surely are in a

5:16:415:16:48

negotiation where it is essential

that we put Britain's interest first

5:16:485:16:53

and that means not taking options

off the table. Which is sadly the

5:16:535:16:57

government has done which it did

very early and which is causing

5:16:575:17:01

enormous amount of bad wheel from

our other EU partners, which we

5:17:015:17:05

regret enormously -- amount of bad

will. If the worst happens and the

5:17:055:17:14

government leaves thanks to its lack

of application, to leave without a

5:17:145:17:20

trade deal then the rules of the WTO

levered us with no option but to

5:17:205:17:28

trade with our European partners on

the same basis with all countries

5:17:285:17:32

with whom we have no free trade

agreement. There must be no

5:17:325:17:40

arbitrary discrimination between

trading partners of a similar

5:17:405:17:42

developmental status unless those

countries and negotiated a free

5:17:425:17:46

trade agreement that meets the WTA's

definition of requirements, and if

5:17:465:17:51

we were to adopt the members that

allow the UK Government to set

5:17:515:17:53

customs duties on imports and

exports from everywhere else in the

5:17:535:17:58

world but not from our European

neighbours, in the case of a chaotic

5:17:585:18:01

ideal situation we would be faced

with two unpalatable options, the

5:18:015:18:07

first is to disregard the

most-favoured-nation rule, and we

5:18:075:18:10

would be exposed to virtually

limitless challenges from all other

5:18:105:18:15

WTO members, and the second option

is abiding by the

5:18:155:18:20

most-favoured-nation rule but we

would have to trade with all other

5:18:205:18:23

countries on the same basis as we

then traded with the EU, namely as

5:18:235:18:27

these memos would have without

tariffs and quotas, and there are

5:18:275:18:31

some members who would like that on

the opposite benches, and there are

5:18:315:18:36

groups like the so-called economists

for free trade who wish to have that

5:18:365:18:39

outcome, but a unilateral abolition

of tariffs and all other trade

5:18:395:18:44

barriers freely admitting that the

scenario would see the end of

5:18:445:18:49

manufacturing in the UK and the end

of agricultural production and the

5:18:495:18:52

consummate a loss of millions of

jobs. --, committed.

I hear the

5:18:525:19:00

arguments, but would she act. It's

that this is a ways and Means

5:19:005:19:05

resolution which means that this

snapshot in time is to make sure

5:19:055:19:11

that we can replicate the customs

union that we have, should we have

5:19:115:19:16

at some hypothetical point in the

future, the crashing out scenario,

5:19:165:19:20

Parliament can address that at that

point, and so at present the

5:19:205:19:27

amendments are absolutely pertinent

to the message we need to be sending

5:19:275:19:29

to the government.

I'm grateful to

my friend for his question, but the

5:19:295:19:36

problem is, the government's stated

intention with these resolutions and

5:19:365:19:42

they have said this time and time

again, today, if I may finish my

5:19:425:19:49

point, they have said time and time

again that these resolutions are

5:19:495:19:52

about our future relationship with

the EU and they did not see them as

5:19:525:19:57

part of a negotiation which may

change, and I would hope that

5:19:575:20:01

generally they would be far more

open about their negotiating

5:20:015:20:03

position. I just have committee

member doesn't mind, I did answer

5:20:035:20:12

that question, the government has

stated these resolutions are about

5:20:125:20:16

that future relationship and

therefore we have got to take them

5:20:165:20:18

at their word on that. Even if we

may have been mistaken on doing that

5:20:185:20:23

on other issues.

5:20:235:20:30

It has been suggested that this

could involve the adoption of deals

5:20:365:20:43

similar to two CET a which does not

cover agriculture so if we get a

5:20:435:20:49

deal, we would then still need to

have a deal on the protection of

5:20:495:20:57

sensitive agricultural products so

we need to have those power still

5:20:575:21:00

there. And the Turkish bespoke deal,

it still necessitates duties on both

5:21:005:21:06

the Turkish and EU sides. So we have

to be clear on what amendments have

5:21:065:21:13

been asked for, they don't guarantee

things because they would apply

5:21:135:21:25

across what the government agrees

to.

I have at the Mendis amount of

5:21:255:21:31

respect for the work she has done in

this particular issue. But can I

5:21:315:21:35

just say to my honourable friend, if

she disagrees with the technical

5:21:355:21:38

aspects of my amendment but agrees

with the principle of saying the

5:21:385:21:46

customs union, where are the front

bench amendments?

I am grateful for

5:21:465:21:50

his intervention and I am not sure,

I am a new member, I don't know how

5:21:505:21:55

appropriate it is as to which

amendments have been allowed and

5:21:555:21:58

which haven't, ultimately we are

looking for a more democratic

5:21:585:22:03

process. We are not able to vote on

that which is unfortunate. He will

5:22:035:22:07

know, as will other members on this

-- on this side, that the Labour

5:22:075:22:12

position is to leave all options on

the table and that is the best thing

5:22:125:22:16

for Britain to be doing. It is very

unfortunate that the government side

5:22:165:22:20

have failed to do that because it is

enormously damaging for our

5:22:205:22:27

negotiating position. I very much

regret that the government could

5:22:275:22:31

still irresponsibly and recklessly

lead us to a no deal scenario and in

5:22:315:22:36

that case, these amendments would

sadly worsen our situation. I know

5:22:365:22:41

that is not intended by the proposer

but as stated now, that is what

5:22:415:22:45

technically they would lead to.

Madam Deputy Speaker. May I first

5:22:455:22:54

say that we have had a very full and

good debate this evening on an

5:22:545:22:58

extremely important matter, I do

think anybody on either side of the

5:22:585:23:02

House would suggest that these

matters are not of the utmost

5:23:025:23:06

importance. If I could run through

some of the points that the speakers

5:23:065:23:10

have raised. My honourable friend

for Yeovil quite rightly raised, as

5:23:105:23:15

he has with me many times, the HMRC

being appropriately resourced. We

5:23:155:23:22

have provided over £40 million to

date to HMRC and we will provide

5:23:225:23:28

them with such funds and resources

as they need going forward. The

5:23:285:23:31

member for Oxford East bemoaned the

fact the government would be able to

5:23:315:23:36

change duties as a consequence -- as

a consequence of the bill without

5:23:365:23:42

Parliamentary scrutiny. I would urge

her to wait to see the bill to see

5:23:425:23:47

the opportunities there will be for

the government to provide scrutiny

5:23:475:23:50

in that respect. The member for

Aberdeen North said that she wasn't

5:23:505:23:55

clear what we wanted from these and

a gauche Asians but we have in our

5:23:555:23:59

white paper made it very clear the

kind of direction of travel we

5:23:595:24:06

foresee in these negotiations. She

also raised the point about the

5:24:065:24:11

seediest computer system and say we

had allowed just three months for

5:24:115:24:18

testing -- DC DS computer system.

The full system will be up and

5:24:185:24:25

running around August next year and

companies and traders will be

5:24:255:24:28

migrating to that system between

August and January 2000 19. The

5:24:285:24:33

honourable gentleman who pressed the

amendment says he wants to stay on

5:24:335:24:39

the customs union, that is a

perfectly reasonable aspiration but

5:24:395:24:43

it overlooks the fact that we have

voted to leave the European Union.

5:24:435:24:47

We will therefore of necessity be

leaving the customs union. We want

5:24:475:24:53

to be able to put together our own

trade deals across the world. The

5:24:535:25:00

honourable friend from Gloucester

said the amendment close off

5:25:005:25:05

options. He is entirely right. It is

worse than that, they introduce

5:25:055:25:10

options that are deeply

unattractive. If we were put in a

5:25:105:25:14

position where we pass these

amendments, we could be in a

5:25:145:25:17

situation where we unilaterally

offer the same terms to European

5:25:175:25:21

countries but in return did not

receive those same duty arrangements

5:25:215:25:27

in response which would be hugely to

our disadvantage. In the absence of

5:25:275:25:32

a deal, if we were to offer those

arrangements to European countries,

5:25:325:25:38

we would find ourselves in a

position under the most favoured

5:25:385:25:41

nation rule where we would have to

offer those same duty arrangements

5:25:415:25:45

to all other countries that we were

trading with. Which would of course

5:25:455:25:51

be an absurdity and they in turn

would not have direct support Kate

5:25:515:25:56

those arrangements to us. My right

honourable friend the member for

5:25:565:26:00

Brock Stowe talked about us jumping

off a cliff into no deal, we have no

5:26:005:26:07

intention as a government of jumping

off any cliffs. We are pushing for a

5:26:075:26:13

good deal and we are negotiating

hard and we will get a deal I am

5:26:135:26:19

confident that is in the interests

of us and the European Union. To

5:26:195:26:25

conclude, the Bill itself is an

enabling Bill allowing

5:26:255:26:32

opportunities, the amendment is

disabling in the way that I have

5:26:325:26:35

described, I urge the House to

reject the amendments and I commend

5:26:355:26:39

these resolutions to the House.

The

question is that the amendment be

5:26:395:26:47

made. As many of our that opinion

say iMac row, to the contrary, no.

5:26:475:26:56

Clear the lobby.

5:26:565:27:00

The question is that the amendment

be made, as many of the opinion say

5:29:045:29:10

aye, to those opposed, no. Tell us

for the ayes, Mr Phil Wilson and

5:29:105:29:18

Martin Whitfield. Tell us for the

nos will stop -- lies.

5:29:185:29:35

Lock the doors.

5:35:115:35:17

In order, order. The ayes to the

right, 76, the noes to the left,

5:42:355:42:48

311. The ayes to the right, 76, the

noes to the left, 311. So the noes

5:42:485:43:06

have it. Unlock. The question is

that the main motion be agreed to.

5:43:065:43:18

As many as are of that opinion, say

I. As many as are of the opinion,

5:43:185:43:24

say "aye". To the contrary, "no".

The ayes have it. I am now required

5:43:245:43:33

under standing order number 51 to

put without further debate the

5:43:335:43:39

question on the two remaining

motions. We now come to the ways and

5:43:395:43:45

means motion on value added tax and

the excise duty on boats. Minister

5:43:455:43:52

to move formally. The question is as

on the order paper. As many as are

5:43:525:43:56

of the opinion, say "aye". To the

contrary, "no". The ayes habit. We

5:43:565:44:04

now come to the third motion, the

money motion. Minister to move

5:44:045:44:10

formally. As many as are of the

opinion, say "aye". To the contrary,

5:44:105:44:16

"no". The ayes have it. The bill

ordered to be brought in upon the

5:44:165:44:29

resolution. Who will compare and

bring in the Bill?

5:44:295:44:41

Taxation cross-border trade bill.

Second reading, what day?

Tomorrow.

5:45:195:45:31

With the leave of the House, I will

take motion is two, three, four and

5:45:315:45:37

five together. We now come to motion

two on Northern Ireland affairs

5:45:375:45:45

committee. Motion three, procedure

committee. Motion four, Public

5:45:455:45:51

Accounts Committee. Motion five,

women and equalities commission. As

5:45:515:46:00

many as are of the opinion, say

"aye". To the contrary, "no". I

5:46:005:46:05

think the ayes have it.

I beg to

move that this House do now adjourn.

5:46:055:46:15

The question is that this House do

now adjourn. Nicky Morgan.

I am very

5:46:155:46:23

grateful to you for granting me this

adjournment debate. It is

5:46:235:46:29

appropriate because today is the

annual trans-state of remembrance,

5:46:295:46:33

remembering those who have lost

their lives turned violent rhetoric

5:46:335:46:37

and those who continue to face

abuse. During my time as minister, I

5:46:375:46:44

engaged with the transgender

community on a national level and

5:46:445:46:47

learn more about the qualities they

faced and how these inequalities

5:46:475:46:50

affected their daily lives. I was

therefore pleased to publish the

5:46:505:46:56

government's response to the report

on transgender equality in July of

5:46:565:47:00

last year, which is another step to

acknowledging that although we have

5:47:005:47:04

the gender recognition act 2004 and

although the coalition government

5:47:045:47:07

published the first transaction

plan, there is more that could be

5:47:075:47:12

done among the government to redress

the remaining inequalities,

5:47:125:47:16

unfairness, violence and

discrimination faced by the

5:47:165:47:19

transgender people. Since then, I

have welcomed my successors. I was

5:47:195:47:29

particularly pleased to learn that

the vast majority of commitments

5:47:295:47:32

made in the government's action plan

have now been met and I look forward

5:47:325:47:36

to reading the government's new

action plan on transgender issues

5:47:365:47:41

when it has been published. I also

welcome the government's survey on

5:47:415:47:46

the experiences of using public

services in the UK which will help

5:47:465:47:49

guide future policy on improving

public services for LGBT users.

5:47:495:47:54

Finally I support the government's

plans to consult on the gender

5:47:545:47:58

recognition act which will look to

improve the recognition process and

5:47:585:48:02

reduce the stigma based by the

transgender community. The proposal

5:48:025:48:05

will include removing the need for a

medical diagnosis of gender

5:48:055:48:10

dysphoria before being able to apply

for gender recognition and options

5:48:105:48:16

for reducing the length and

intrusiveness of the gender

5:48:165:48:18

recognition system.

I thank the

right honourable lady for giving way

5:48:185:48:23

and for the work she did as the

minister in this area. It is of

5:48:235:48:27

course annual trans-Day of

remembrance and those inequalities

5:48:275:48:33

are in extraordinarily great, and

the violence and discrimination

5:48:335:48:37

concerning. Would she agree with me

that is the first Parliament in the

5:48:375:48:40

world to look at these issues and

the amount of work that still needs

5:48:405:48:43

to be done, that this is something

that is very easily rectified for

5:48:435:48:50

this important community?

Yes, I

will go on to show that this is a

5:48:505:48:59

very simple loophole which is

completely unintended, which would

5:48:595:49:03

be another step for government

ministers just to show a continued

5:49:035:49:07

commitment to the transgender

equality plan and simple steps can

5:49:075:49:12

mean a great deal of difference to

people who are watching tonight and

5:49:125:49:15

those who will find out that this

debate later.

Can I commend her on

5:49:155:49:21

securing this debate to my? I met

with one of my own transport groups

5:49:215:49:26

recently and the shed with me many

of the concerns they have. It is

5:49:265:49:29

steps like this that can go a long

way to reducing that stigma. Will

5:49:295:49:34

she agree with me there has been

unpleasant headlines in certain

5:49:345:49:37

media outlets, many trans people

feel stigmatised because of the

5:49:375:49:43

debate that goes on in the media?

I

agree very much indeed.

5:49:435:49:57

We all know that prejudice comes

from fear and talking about these

5:49:575:50:01

issues as my time as equalities

Minister, I met many trans-people,

5:50:015:50:05

many of whom struggled to deal with

that but with the right support made

5:50:055:50:13

a huge amount of difference. There

are many issues that are facing us

5:50:135:50:18

as a country at the moment from just

standing back and listening to other

5:50:185:50:22

points of view. Trying to

understand, not always easy but

5:50:225:50:26

trying not to rush to judgment. As I

said Madam Deputy Speaker, the

5:50:265:50:32

government has committed to

consulting on the gender recognition

5:50:325:50:34

act and I wanted to welcome the

words from Ruth Hunt, the director

5:50:345:50:39

of Stonewall who said that we do

simple process that isn't medical or

5:50:395:50:44

demeaning. These are complex issues

that challenge many people but let

5:50:445:50:50

us have a properly informed debate

about them rather than just thinking

5:50:505:50:55

it is best not to discuss these

difficult issues. So I wanted to

5:50:555:51:00

take this opportunity to again raise

another aspect of the gender

5:51:005:51:05

recognition act which I think needs

to be reviewed. Insert in the 2016I

5:51:055:51:10

received a letter from Alex who

wrote "I am a sole director of a

5:51:105:51:14

company I set up some years back to

manage a small property portfolio.

5:51:145:51:18

When I changed my name and title,

the process to inform companies

5:51:185:51:22

House was very easy and my name was

updated quickly. I noted afterwards

5:51:225:51:25

however that it was in the company

filings that were freely available

5:51:255:51:32

on the companies House website. The

document in question is a change or

5:51:325:51:36

particulars for the direct form

clearly states might original name

5:51:365:51:39

and title and subsequently my new

name and title. This very busy

5:51:395:51:43

discloses my change of gender for

anyone who looks at the history of

5:51:435:51:47

my company, publicly outing me

without my consent. The main issue I

5:51:475:51:52

take with this is that of safety. In

the future there will be many people

5:51:525:51:56

I interact with who will have no

idea of my transgender status

5:51:565:51:59

because I simply will not tell them.

" The potential for inadvertent

5:51:595:52:12

disclosure becomes because of this

section of the gender wrecking

5:52:125:52:20

Schneier 2004 and of the companies

act 2006. My honourable friend on

5:52:205:52:25

the Treasury bench this evening will

be aware that I wrote to her last

5:52:255:52:31

year about this and in her response

to me dated November 2016 that she

5:52:315:52:36

made it live that the company

registrar must make it available to

5:52:365:52:40

the public all information on the

public register unless it is

5:52:405:52:45

specifically forbidden to do so by

the companies act. The gender

5:52:455:52:50

recognition act generally prohibits

the publication of information held

5:52:505:52:54

on a transgender person but details

and circumstances under which it is

5:52:545:52:59

not an offence to disclose protected

information which are made by virtue

5:52:595:53:08

of an enactment other than this

section. The ministers letter stated

5:53:085:53:13

that the government is satisfied

that this applies to the disclosure

5:53:135:53:15

of a director's former name. This is

required to be placed on the public

5:53:155:53:21

record by enactment in the companies

act. The data is not considered to

5:53:215:53:25

be material, excluded by public

recognition under the gender

5:53:255:53:29

recognition act because of the

companies act." I do not disagree

5:53:295:53:34

with this interpretation but as I've

already said, this is an unintended

5:53:345:53:37

loophole that needs to be closed

which is why before the general

5:53:375:53:41

election this year I produced the

company 's documentation transgender

5:53:415:53:45

persons bill. I referenced another

part of Alex's letter which said "In

5:53:455:53:51

2004, the gender recognition act

came into place with the clear main

5:53:515:53:55

goal of protecting people who were

at risk of being vulnerable and it

5:53:555:53:59

was a world leading piece of

legislation which I am proud to say

5:53:595:54:02

came out of the United Kingdom. So

what is happening now at companies

5:54:025:54:07

House is entirely accidental and an

unfortunate flaw in the way the GRA

5:54:075:54:12

2004 and the companies act 2006

interact with each other. This flaw

5:54:125:54:16

is entirely against the spirit of

the 2004 act and I think anyone

5:54:165:54:20

would be hard pushed to argue

against that. She goes on to say I

5:54:205:54:24

am currently able to protect myself

and it comes to my credit profile,

5:54:245:54:26

tax profile, the government Gateway,

I just personally think it is the

5:54:265:54:32

right thing to do to force companies

has to be held to the same standard.

5:54:325:54:35

" My bill opposed to this House

proposes that this loophole can be

5:54:355:54:42

closed which would allow cancer and

the people to Company 's House to

5:54:425:54:49

withhold information about

director's former name and that beat

5:54:495:54:52

treated as protected by the 2004

act. The case of this very small

5:54:525:54:58

change is compelling as such

disclosure can have a profound

5:54:585:55:03

effect on transgender people,

particular as transition and history

5:55:035:55:06

are very personal. It is something

that a person should choose to share

5:55:065:55:10

rather than being forced to do so by

somebody else. The legal mechanism

5:55:105:55:15

is not something that someone enters

into lightly. Once that decision is

5:55:155:55:22

made, transgender people want to be

able to move on with their lives and

5:55:225:55:25

to be treated with respect and to

live without fear of being

5:55:255:55:28

inadvertently outed or subject to

violence. I am afraid to say as we

5:55:285:55:33

have orally heard that violence and

discrimination still occur. Since my

5:55:335:55:36

previous speech to the House, the

Home Office has produced updated

5:55:365:55:41

statistics that show in England and

Wales in 2016, there were 1248

5:55:415:55:46

transgender hate crimes, up from 858

in 2015-16. This is an increase of

5:55:465:55:55

over 45% which is higher than the

previous yearly increase of 41%.

5:55:555:56:00

Living in fear because of who you

are is unacceptable in the modern

5:56:005:56:04

United Kingdom and no one should

have to live in fear of violence

5:56:045:56:08

because of official documents that

have they have filed in compliance

5:56:085:56:14

with an act of Parliament. So I

would like to thank those who have

5:56:145:56:18

contacted me to share their views,

including Alex. I would like to

5:56:185:56:21

remind the House that in preparing

the bill, I was contacted by other

5:56:215:56:27

transgender persons, one who said

"My current position is I am unable

5:56:275:56:31

to start by business without running

the real risk of outing myself as a

5:56:315:56:34

transgender woman. Physically I want

to start a business to provide Webb

5:56:345:56:41

services but as I cannot yet

transition I am in the unfortunate

5:56:415:56:44

position where if I start the

business now and then transition,

5:56:445:56:50

this information would be publicly

available." One accountant was told

5:56:505:56:56

to resign as a director and then in

role as a director with the new

5:56:565:57:03

name, automatically they could close

the company down and start up a new

5:57:035:57:07

company with the expenses involved

in that course of action. I finally

5:57:075:57:12

received the following message "Are

used to do IT contracting and did so

5:57:125:57:15

by limited company, I changed my

name and title by deed poll and at

5:57:155:57:23

companies House, I have now had

gender reassignment surgery and I

5:57:235:57:26

will be applying for my gender

recognition certificate as soon as I

5:57:265:57:29

received the necessary report from

the gender identity clinic. While

5:57:295:57:33

this gives me protection in law, it

will still be possible for people to

5:57:335:57:36

find up my dead name by looking at

the records of my company at

5:57:365:57:40

companies House which could put me

at risk if someone found out those

5:57:405:57:45

details for malicious purposes."

Altering the gender recognition act

5:57:455:57:48

would be a simple change to make and

would mean a great deal to the many

5:57:485:57:53

transgender people who suffer this

problem in silence. The government

5:57:535:57:57

has an opportunity to close

inadvertently poll and to show that

5:57:575:58:01

it is committed to protecting the

transgender community and allowing

5:58:015:58:04

transcend the people what, if any

information about the transition is

5:58:045:58:09

publicly available and in what way

this information is disclosed. I

5:58:095:58:11

should add that if this option were

to be taken, there is of course a

5:58:115:58:17

way for companies House to make sure

that such information is available

5:58:175:58:22

to be lawful authorities who would

of course have two access those

5:58:225:58:30

details on appropriate request for

that evidence. So I hope tonight

5:58:305:58:36

that given the government amendment

-- the government commitment on

5:58:365:58:43

transgender issues, that they will

review the gender retention act and

5:58:435:58:49

I look forward to hearing the

minister's view tonight.

Thank you

5:58:495:58:54

Madam Deputy Speaker. I would like

to congratulate my right honourable

5:58:545:58:58

friend for Loughborough for securing

tonight's debate. On this very

5:58:585:59:03

important subject. And also for the

powerful and persuasive speech she

5:59:035:59:06

has made in support of her argument.

I recognise that she is seeking to

5:59:065:59:14

protect the interests of the

transgender community by ensuring

5:59:145:59:17

their right to have their private

information remain private. I have

5:59:175:59:23

considerable sympathy with the

personal accounts that she has

5:59:235:59:26

shared in her speech this evening

and I can only conclude that the

5:59:265:59:31

examples she gives are backed up by

many other people who have not

5:59:315:59:36

themselves come forward. But this

debate does highlight the difficult

5:59:365:59:41

tension between two important

principles. The right of an

5:59:415:59:47

individual to have their private

details remain private and not to be

5:59:475:59:51

exposed against the also important

need for transparency at the public

5:59:515:59:56

register of companies. These rights

are not easy to reconcile and ivory

5:59:566:00:02

much agree with her that we should

make every effort to improve the

6:00:026:00:09

situation that she described in her

speech. There are some important

6:00:096:00:14

reasons why the records of companies

must be transparent and available

6:00:146:00:18

for anyone to inspect. Incorporating

the company and getting it

6:00:186:00:23

registered at companies House brings

with it the benefit of limited

6:00:236:00:27

liability to the owners and

directors charged with running the

6:00:276:00:30

company. And in return for that

significant benefit, directors of

6:00:306:00:35

companies must provide details

relating to their identity am a

6:00:356:00:39

residential address information and

annual accounts of the company. And

6:00:396:00:42

that process is anyone the ability

to check business records and the

6:00:426:00:47

trading history of people and

businesses they are dealing with or

6:00:476:00:52

proposed to enter into business

with. It is right that anyone should

6:00:526:00:56

be able to check a director's

previous trading history or

6:00:566:00:59

directorships including any past

disqualifications and bankruptcies.

6:00:596:01:06

And people might also want to know

about their comment in previous

6:01:066:01:10

failed or successful businesses as

important facts to consider when

6:01:106:01:13

entering into Disney's agreements.

In many ways the register of

6:01:136:01:18

companies is not just a list of

companies with directors names, its

6:01:186:01:23

real purpose is to support the

functioning of limited liability and

6:01:236:01:26

to enable the economy and it is that

transparency that underpins its

6:01:266:01:37

value and contributions. The

register of companies is one of the

6:01:376:01:41

most searched and interrogated

databases worldwide. There were over

6:01:416:01:48

2 billion searches on the website in

2016 and it is also widely used by

6:01:486:01:53

professional organisations, for

example, credit reference agencies,

6:01:536:01:58

in determining whether to loan to

prospective businesses or

6:01:586:02:02

professional researchers such as

those engaged in transparency

6:02:026:02:06

initiatives. My right honourable

friend raises the important

6:02:066:02:11

statutory provisions and that

section 22 of the gender recognition

6:02:116:02:17

act 2004 does indeed make it an

offence for a person who has

6:02:176:02:23

acquired protected information in an

official capacity to disclose that

6:02:236:02:28

information. However, as my right

honourable friend stated, section 22

6:02:286:02:36

brackets four provides a number of

exemptions including section 20

6:02:366:02:39

24-macro J which means the

disclosure is in accordance with any

6:02:396:02:45

provision or made by virtue of an

enactment other than this section.

6:02:456:02:48

So section 12 together with section

163 of the companies act 2006

6:02:486:02:54

requires directors to disclose their

name and any former name to the

6:02:546:03:00

register of companies. Section 1085

and one week six of that act place a

6:03:006:03:06

duty on the registrar to make that

information and other information in

6:03:066:03:13

regards to that available for public

inspection. This is about the need

6:03:136:03:19

for transparency that I mentioned

previously. Section 1087 brackets

6:03:196:03:25

one brackets K does prevent the

registrar from making certain

6:03:256:03:31

information available for public

inspection if required by another

6:03:316:03:36

enactment. However, because of the

caveat in the gender recognition act

6:03:366:03:42

that was mentioned by my right

honourable friend, information such

6:03:426:03:46

as any previous names of directors,

whatever the reason currently for

6:03:466:03:50

the change of name are not included

in these exemptions. So the gender

6:03:506:03:56

recognition act does not make it an

offence, as my right honourable

6:03:566:04:00

friend explained, to disclose this

information where that disclosure is

6:04:006:04:04

in accordance with another enactment

which is the case in respect of the

6:04:046:04:09

companies act 2006. This therefore

applies where a transgender person

6:04:096:04:15

who is a company director has

changed their name. My right

6:04:156:04:20

honourable friend will know that the

current treasures for information

6:04:206:04:23

relating to companies and their

directors is in many respects for

6:04:236:04:31

even more transparency than less.

However, I directed nice that the

6:04:316:04:36

register of companies should look to

strike a light balance between the

6:04:366:04:40

need for transparency and the

protection of individuals and their

6:04:406:04:45

private information. The currently

go provisions already allow for

6:04:456:04:48

certain information to be withheld

from public inspection. For example,

6:04:486:04:54

a director's private residential

address, where it is demonstrated

6:04:546:04:57

there is a risk of violence or

intimidation arising from the

6:04:576:05:00

activities of the company is one

such.

6:05:006:05:03

However, a number of honourable

members have written to me, rating

6:05:106:05:14

the concerns about the range of

private information that is now

6:05:146:05:19

publicly available and easily

accessible. As a result, my

6:05:196:05:23

department is considering a number

of potential measures related to the

6:05:236:05:27

integrity of the register of

companies and the personal

6:05:276:05:31

information that is available on it,

and I will most certainly ensure

6:05:316:05:35

that the issue raised by my right

honourable friend the night will be

6:05:356:05:39

considered within that work. Though

I cannot commit to consider the

6:05:396:05:45

issue further, I would stress that

the position of the director of

6:05:456:05:49

company carries with it statutory

duties and accountabilities. We do

6:05:496:05:55

need to fight against the creation

of loopholes that would allow people

6:05:556:05:59

to evade their responsibilities or

conceal the previous trading history

6:05:596:06:04

by changing their name of the

register.

Can I thank my honourable

6:06:046:06:11

friend very much indeed for the way

in which she is responding to my

6:06:116:06:17

debate? I welcome the fact she has

talked about the wider consultation

6:06:176:06:21

and I would urge her and push a

little further to say that what I

6:06:216:06:25

have raced and it should be a part

of that consultation, at least the

6:06:256:06:29

gathering of use to find out the

scale of the problem. Would she also

6:06:296:06:33

respond or perhaps she might want to

consider again as part of that

6:06:336:06:38

consultation Alex's comment to me

that she is able to protect herself

6:06:386:06:41

when it comes to her credit profile,

tax profile, Financial Conduct

6:06:416:06:48

Authority register and government

Gateway? All of which presumably

6:06:486:06:53

help in terms of building up a

profile of somebody the transparency

6:06:536:06:58

of which my honourable friend has

been talking about.

I will certainly

6:06:586:07:03

consider what my right honourable

friend has said. She makes a very

6:07:036:07:08

powerful case. Transparency will

remain a high priority for the

6:07:086:07:12

register of companies. But we must

consider the arguments that my right

6:07:126:07:16

honourable friend has made and I

will consider, as part of our

6:07:166:07:21

review, what she asks for. As

mentioned by my right honourable

6:07:216:07:25

friend, the government has committed

to publishing this consultation

6:07:256:07:29

shortly on amendments to the gender

recognition process in England and

6:07:296:07:33

Wales. The government also recently

launched a national survey on the

6:07:336:07:40

needs of the LGBT population, which

has just completed receiving over

6:07:406:07:46

100,000 responses. Both of these

consultations will be of help in

6:07:466:07:51

shedding light on the issues raised

in this debate, and I will consider

6:07:516:07:54

further what my right honourable

friend has argued for the night in

6:07:546:07:59

that process.

The question is that

this House do now adjourn. As many

6:07:596:08:08

as are of the opinion, say "aye". To

the contrary, "no". The ayes have

6:08:086:08:13

it. Order, order.

6:08:136:08:21

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