Oral Answers to Questions Debate
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Main Page: Chris Bryant (Labour - Rhondda and Ogmore)Department Debates - View all Chris Bryant's debates with the Department for Business and Trade
(2 weeks, 6 days ago)
Commons Chamber
Ben Maguire (North Cornwall) (LD)
We are helping SMEs do more trade with European countries by taking down tariff and other trade barriers in our EU-UK summit, reducing red tape in individual countries, enabling easier business travel and allowing the mutual recognition of professional qualifications, both across the EU and bilaterally. I look forward to the hon. Gentleman welcoming that.
Ben Maguire
I always welcome the cutting of red tape and I await the details excitedly. My North Cornwall constituent, Hannah Willow, runs two art businesses. Prior to Brexit, around 30% of her sales were to customers in Europe, but this has now fallen to 10%. As a result of recent tariffs on trade, her exports to the US have also declined by 20%. Now, adding insult to injury, the de minimis threshold will be removed from 1 July this year. That means that items valued at under €150 entering the EU will no longer be exempt from customs duty and will incur a flat €3 fee per item. Will the Government take up the Liberal Democrats’ call to negotiate a bespoke customs union and finally put our small businesses back at the heart of economy, where they belong?
I am afraid that I am not going to take any ideas from the Lib Dems on this matter—I think I can pretty much unite the House on that. One of the things I am very keen on is that we maintain our position as the second-largest art market in the world. That means that we have to negotiate better agreements, including with the European Union. That is one of the things we are doing at the moment.
The hon. Gentleman makes a fair point about the de minimis rule, but I notice that other businesses in his constituency are doing well. Tarquin’s Cornish Gin is doing well; it has been winning awards in the United States of America and elsewhere—I understand that it is the best gin in the world.
Of course, the work that my hon. Friend the Member for Stockton North (Chris McDonald) is doing on critical minerals is bound to benefit Cornish lithium. We are very keen to ensure that we have that capacity in the UK, rather than the lithium just being processed in other parts of the world.
Mr Alex Barros-Curtis (Cardiff West) (Lab)
Our economy needs access to oil. Last October, the Government announced that they were going to sanction Russian oil and jet fuel. Yesterday, they decided not to do so, on the same day that they banned new drilling in the North sea. Why do the Government support Putin’s Russian oil, but not our UK oil?
The thing about a Labrador is that when it has got hold of the wrong end of the stick, it is very difficult to get that stick back. A lot of hon. Members have got the wrong end of the stick about what we are doing. We are increasing the sanctions on Russian oil. Up until now, it has been perfectly possible to bring Russian oil products into the UK if they are processed elsewhere, without any impediment whatsoever. It is absolutely right that we are bringing that to an end.
Ms Julie Minns (Carlisle) (Lab)
I am very happy to meet the company, and the right hon. Gentleman if he want to come and see me, to talk through all those issues. It is really important, if we are to have a steel production sector in this country, to ensure that it has an opportunity to compete with unfair competition around the rest of the world. That is why we are taking the action that we are. The Under-Secretary of State for Business and Trade, my hon. Friend the Member for Stockton North (Chris McDonald), made the point earlier that if we do not take this action on quotas and tariffs, we will be dumped on, because every other equivalent major economy to ours is taking that action, but I am very happy to look at the precise details with the company, and with him.
Graeme Downie (Dunfermline and Dollar) (Lab)
Bradley Thomas (Bromsgrove) (Con)
Of course I am happy to meet. Maybe we should organise a meeting for several companies and several hon. Members. I am very happy to do that as soon as possible. I do not want to extend the transition period, for the simple reason that the EU, the United States and other countries are introducing very similar measures, and the danger is that we would just be dumped on. There will be a review mechanism after a year. I am very keen to meet colleagues to explain the trade-offs we are having to make.
Sarah Bool (South Northamptonshire) (Con)
Back to the 1 July tariffs: the quotas are too small and the commodity codes are too broad. The steel required for aerospace can come only from, I think, SSUK, which is currently in liquidation. That grade of steel cannot be produced elsewhere—that is for commercial steel. Businesses will be bankrupted within six months—12 months is far too long. Will those on the Front Bench please listen to industry on this?
We are listening to both sides of industry, because there are the downstream users and there is the production. The truth of the matter is that UK steel production under the previous Government fell from— I think this is correct—27 million tonnes a year to 4 million tonnes a year. If we are to meet our armaments needs in future years, we need a sovereign steel capacity in this country. We have to be able to produce British steel. We have been very careful to ensure that the quotas are cutting areas only where the UK can produce that steel.
Lillian Jones (Kilmarnock and Loudoun) (Lab)
Does the Minister agree that expanding the use of home-grown timber in construction and manufacturing would not only support UK forestry and small businesses, but strengthen supply chain resilience and reduce our reliance on imports, which currently make up 80% of the timber we use? What specific measures will the Government introduce to support this sector as a strategic national asset?