Export Licensing: High Court Judgment

Hannah Bardell Excerpts

Monday 10th July 2017 Commons Chamber

[Dr Fox]

As my right hon. Friend knows from his experience, there are a number of criteria for refusals and revocations; if he has not seen the list, I will ensure that he is sent it. If we believed that we were not able to convince ourselves that we were operating entirely within the consolidated criteria, we could suspend extant licences and refuse new ones. As I made very clear, if we believed that we were not fully in line with the criteria, we would do so.

[Hannah Bardell (Livingston) (SNP)]

I thank the Secretary of State for advance notice of the statement. I apologise for my hoarse voice—I think I shouted a bit too much in excitement at London Pride on Saturday.

Amnesty International, Human Rights Watch and other human rights campaign groups believe that UK and US weapons have been used against Yemeni civilians. As things stand, 10,000 civilians have been killed, 50,000 wounded and 3 million displaced. Today’s judgment raises a number of questions. We pay tribute to Campaign Against Arms Trade, which has taken the Government to court and forced them to explain themselves. We acknowledge CAAT’s plan to appeal this decision and wish it well, but the UK Government should be coming to this house with the facts at all times, not having to be dragged through the courts for the public to get a full explanation.

Does the Secretary of State accept that it cannot be beneficial if the public lose confidence in the Government over their relationship with a supposed ally—one that is in flagrant breach of international humanitarian law in Yemen? Let us not forget that Saudi Arabia, the UK’s largest weapons client, has bought more than £3 billion-worth of British arms in the past two years. UK and EU arms sales rules state that export licences cannot be granted if there is a “clear risk” that the equipment could be used to break international humanitarian law.

The Secretary of State says that he takes this very seriously. He will know that our former colleagues Angus Robertson and Tasmina Ahmed-Sheikh were strong advocates for the re-establishment of the Committees on Arms Export Controls, which the UK Government promised before the election would be reconvened. When will that happen, and when will the first meeting take place? Can he give us categorical assurances that the election does not mean that such an important Committee will be kicked into the long grass?

[Dr Fox]

I thank the hon. Lady for her comments. As the judgment set out, the case focused on the airstrikes conducted by a coalition led by Saudi Arabia in support of the legitimate Government of Yemen against the Houthi rebellion. We need to put on record that that is the origin of the conflict. Of course the humanitarian issues in Yemen are deeply troubling to all of us; we have all seen the pictures. The United Kingdom, through our various agencies and Government Departments, has been fulfilling as much of our diplomatic and humanitarian actions as we can in the circumstances. This will only be brought to an end by a political settlement, not by a military settlement.

The hon. Lady talks about the “clear risk” test. The judgment could not have been clearer that the Government met the “clear risk” test of criterion 2c in the way they carried this out.

On the hon. Lady’s point about the Committees on Arms Export Controls, I have absolutely no objection to such a Committee being set up. In fact, I think it is beneficial to us to ensure at all times the highest reputation of our probity in these matters. I would have absolutely no objection whatsoever to such a Committee being in place.

Exiting the European Union and Global Trade

Hannah Bardell Excerpts

Thursday 6th July 2017 Commons Chamber

[Hannah Bardell (Livingston) (SNP)]

The right hon. Gentleman speaks about the customs union and the Lancaster House speech, but does he not share my concern, and the concern of the Scotch whisky industry, that the customs processes as they stand are creaking under pressure? I should declare an interest as the chair of the all-party group on Scotch whisky, which met for the first time last night. Those processes are being transformed into a new digital process, but there is little confidence that it will be able to cope with the process of Brexit. What guarantees can he give that industry that those issues will be solved?

[Dr Fox]

The hon. Lady raises a fair point about global trade facilitation. We have just signed the trade facilitation agreement, which aims to reduce border friction across the world. It is estimated that that is worth about £70 billion in the global economy. One of the biggest barriers facing Scotch whisky, however, is tariff barriers. The Department has been trying to talk to Governments such as India’s who have very high tariffs against Scotch whisky, which is not good for their own consumers because it encourages an illicit trade. I encourage all those Governments to indulge liberally in the pleasures of single malt—as I do myself.

By 2010, G7 and G20 countries were estimated to be operating some 300 non-tariff barriers to trade. By 2015, that number had mushroomed to more than 1,200. There are those who, having accrued great wealth, would pull up the drawbridge behind them. We cannot let that happen. This country’s own commitment to free trade was perhaps most clearly illustrated by the repeal of the Corn Laws in 1846. The Conservative Prime Minister Sir Robert Peel rightly saw protectionism as an attempt to preserve the wealth of a privileged few at the expense of the many. Import tariffs were all but abolished and Britain’s free trade principles were created to put bread into the mouths of the hungry majority. Now, as then, it is free trade and competition that will do most to address inequality and safeguard the interests of working people. More than ever, it is up to nations that possess the economic and diplomatic means to reassert the rationale of free trade to do so.

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[Hannah Bardell (Livingston) (SNP)]

I associate myself and other SNP Members with the Secretary of State’s comments about PC Keith Palmer—this debate was due to take place on the day of the attack on Parliament—and our thoughts continue to be with him, his family and his friends.

I welcome you to the Chair, Madam Deputy Speaker. It is nice to see that we have gender balance among the Speaker and Deputy Speakers.

I rise to speak for the first time in a substantive debate since my re-election as the MP for Livingston—I am grateful to the people of Livingston for re-electing me—and since my appointment as SNP spokesperson on international trade and investment.

I pay tribute to my former colleague and Member for Ochil and South Perthshire, Tasmina Ahmed-Sheikh, our previous spokesperson on international trade and investment. She was one of the hardest working MPs this Parliament has ever seen, and she was a doughty champion for the people of Ochil and South Perthshire. She pursued many matters—from international trade to the plight of the people of war-torn Syria and the UK Government’s involvement in the Yemen conflict—and her dogged work ensured that, time and again, UK Ministers were dragged to the Dispatch Box to answer the questions of SNP Members. We will continue to pursue such issues with vigour and passion.

My former colleague was a far cry from some of the Conservative Members who, sadly, have replaced her and other SNP colleagues. I do not mean to be entirely unkind—they are not in their places today—but they have been here for only a few weeks, and they have already rolled over on a distasteful deal with the DUP, failing to stand up for Scotland and their constituents. This Tory Government have found £1.5 billion to do a deal so that they can vote down pay increases for emergency service workers and public servants. In recent weeks and months, we have come to rely very heavily on those emergency workers and public servants, and the Scottish Conservatives should hang their heads in shame.

The Scottish Conservatives now have a choice: they can choose to do what is in the best interests of Scotland and of the constituents who voted them in, or they can fall into line with the rest of their party in support of a hard Brexit. I challenge them to use the opportunities that lie ahead to make sure that the Prime Minister reconsiders her position and joins us, and other Members in other parties, in defending Scotland’s place in the single market and the customs union.

The trade and customs Bills will seek to put in place a legislative framework to allow the UK to operate its own trade policy and provide new domestic legislation to replace EU customs legislation. The problem is that, despite all the bluff and bluster from the Tories, the UK had to cave in on the first day of Brexit talks and agree that the divorce deal will have to be established before any trade deals are agreed, leaving business, the economy and workers across our country in limbo. Michel Barnier said earlier today that frictionless trade in goods and services “is not possible” outside the single market and the customs union. We need to know from the Secretary of State and colleagues whether there will be transitional arrangements for our economy in relation to goods and services.

We know the track record of this Government on scrutiny and process: they avoid it at all costs. They had to be dragged through the courts even to give Parliament a say on the triggering of article 50, so what hope can we have that we will get to scrutinise properly the many laws and regulations that will be coming back from the EU? The Government’s plans for the great repeal Bill include so-called Henry VIII powers to avoid any scrutiny, as well as antiquated and back-door measures through the use of delegated legislation. What guarantees are the Government offering to ensure they will not abuse such powers? What guarantees are they offering to ensure they will not use antiquated and back-door measures to avoid scrutiny by and the need to obtain the consent of the devolved Administrations?

The public rejected the Prime Minister’s call at the last election to strengthen her hand in the Brexit negotiations, and she cannot carry on as if the election result has not happened. It would serve her and this Government’s flailing credibility better to build a much more consensual approach, because leaving the single market would be an unprecedented act of self-harm.

[Joanna Cherry (Edinburgh South West) (SNP)]

Does my hon. Friend agree that that would in particular be an act of self-harm for Scotland? At present, EU trade deals with the likes of South Korea mean that the tariff on our major export of Scotch whisky has been reduced to nil, whereas a 20% tariff has to be paid on other whisky entering South Korea. Are we not much more likely to get such favourable deals for Scotch whisky if we have the whole weight of the EU behind us, rather than if we are negotiating just as the UK?

[Hannah Bardell]

I absolutely agree with everything my hon. and learned Friend says.

The Secretary of State alluded in his opening comments to trade deals with countries such as India, particularly on whisky. Are he and his colleagues not concerned that when the Foreign Secretary visited India recently he was advised that:

“Mobility issues are of importance to us; we cannot separate free movement of people from the free flow of goods, services and investments”

Trade agreements are about give and take. The Government, the Ministers on the Front Bench and others who have spoken do not seem to understand that concept.

The plans for a hard Tory Brexit have already immersed the UK economy in uncertainty, with inflation escalating and companies preparing to move their operations outside the UK. [Interruption.] Conservative Members chunter from a sedentary position, but they only need to open the papers every day to see examples of that. Figures from the National Institute of Economic and Social Research suggest that Scotland’s exports could be cut by more than £5 billion if we fail to retain full membership of the single market. The research also shows that trade in goods could decline by 35% to 44%. If exports of Scottish goods were to fall by a similar amount, the additional cost would be about £3 billion. According to the UK Government’s own analysis, leaving the single market could reduce Scotland’s GDP by more than £10 billion.

At the end of this process, when we have clarity on whether there is a deal or no deal, if the Government have not taken on board Scotland’s position, which I will come on to later, we must have an insurance policy. We must have a say over our own future and be able to decide whether we want to be an independent nation within Europe. That is why Scotland’s main business organisations issued a joint statement on 8 July last year, confirming that Scotland’s businesses need continued access to the single market and free movement of labour.

Since then, those organisations have all repeatedly raised concerns about the impact of Brexit on business, including on access to labour, both skilled and non-skilled. For example, the loss of EU nationals will seriously harm our rural economy. About 8,000 EU nationals come to live in Scotland and work in the food and drink industry, and 15,000 seasonal migrant workers harvest our world-class fruit and vegetables. We cannot put their futures or the future of our vital sectors at risk. EU nationals also make a huge contribution to our NHS. One in 20 NHS doctors in Scotland comes from the EU. More than 1,000 companies owned in the EU employ over 127,000 people in Scotland and about 181,000 EU citizens live in Scotland, bringing vital skills and expertise. We heard only last week that the rate of applicants for nursing posts from the EU has dropped by 96%. That will be devastating across the UK.

Scotland is an open and modern economy. Our exports of goods and services account for about 50% of our GDP. That is why our membership of the single market is so crucial to our economy. Through the EU, Scotland trades with the world. The EU has signed free trade agreements with nearly 90 non-EU countries. Free trade agreements are already in place with 62 countries and the agreements with 28 countries are still to be applied. The Secretary of State said in his comments that he hoped they would be ratified soon. Those agreements are driving growth in Scotland’s trade with the rest of the world, which increased by 55% between 2007 and 2015.

If we are not able to continue with those trade agreements—we know how long many of them may take—then cumulatively it could be decades before we even reach the position we now have with full access to the single market. Scotland’s businesses are well placed to take advantage of the opportunities to sell their products across Europe and the world. If we leave the single market, we gamble with a market of 500 million people and free trade deals with 90 countries around the world.

The Tory manifesto contained a pledge to leave the single market and the customs union. Given that the Tories failed to gain a clear majority, they must think again, put those options back on the table and make them central to their negotiating position. It just went to show the contempt the UK Government have for Scotland when we heard the Brexit Secretary admitting to the Exiting the European Union Committee and, indeed, the rest of the UK in March 2017 that no economic analysis—none—had been done to address the impact of Brexit on the UK economy. How can we have been in a position whereby not only was an impact study not done before we went into the referendum, but in all of the time between then and coming to that Committee no work had been done? This was compounded by comments on “The Andrew Marr Show” recently, where the right hon. Gentleman, who is opening negotiations for the UK, was unable to confirm that the UK would get a free trade agreement with the EU; it was very much a case of, “Mebbe’s aye, mebbe’s no.” The Secretary of State’s comments show just how disorganised he and the Tory party are on Brexit and our future trading relationship with the EU.

Just this week, the Financial Times reported that the City of London was sending a delegation to Brussels to present a secret blueprint for a post-Brexit free trade deal on financial services. The City is left to do the work of the Government for itself.

Concern mounts over the damage facing employers if they are forced to move operations to the continent. Not every sector is able to do that, or should do that. We should have a Government who are listening to the devolved nations and all those sectors. This is just the latest indication that businesses do not trust the Tory Government.

The SNP Scottish Government put forward a very sensible compromise agreement on Scotland’s place in Europe, respecting the results in 2014 and of the EU referendum. It laid out a sensible and pragmatic approach to the situation we now find ourselves in: that Scotland could retain its membership of the single market and remain within the UK.

In Scotland, we are working hard to support SMEs and corporates with initiatives like the Borders enterprise agency, which was just launched, with a focus on meeting the region’s distinctive economic needs. We have also launched the Scottish-European Growth Co-investment Programme, the first part of the Scottish growth scheme, with £50 million from Scottish Enterprise and £50 million from the European Investment Fund, which will leverage at least £100 million from private sector fund managers. Evidence of the fruits of the Scottish Government’s labours were borne out by yesterday’s GDP data, which showed the Scottish economy defying recession concerns and growing at 0.8%, compared with the UK average of 0.2%.

But this is set against a backdrop of Brexit uncertainty giving businesses much pause for thought in investment decisions. The Chancellor has conceded that a “large amount” of UK business investment is being postponed, and urged early agreement with the EU on transitional arrangements. Our growth is under threat, and we need to hear more than warm words from the Government Benches. The Governor of the Bank of England, Mark Carney, spoke of “anaemic wage growth” and said he would like in coming months to see

“whether wages begin to firm, and more generally, how the economy reacts to the prospect of tighter financial conditions and the reality of Brexit negotiations.”

Scotland’s voice is being ignored. That is not democratic, and it is not acceptable. Scotland is the top destination in Europe for exports from the rest of the UK, so it is in everybody’s interests to have a close trading relationship, because the European single market is Scotland’s real growth market, and is eight times bigger than the UK market alone.

The Secretary of State for Exiting the European Union said on a recent visit to Ireland:

“Ireland will not have to choose between having a strong commitment to the EU or to the UK—it can and should have both.”

Why, then, can that not apply to Scotland?

In a press conference in Dublin on 30 January 2017, the Prime Minister said that the UK would maintain

“the common travel area and excellent economic links with Ireland.”

Again, I ask why that cannot apply to Scotland?

There must be a meeting of the UK and devolved Governments to decide objectives before the next cycle of negotiations with the EU this month, and there must be a commitment to take seriously, and act upon, the interests of Scottish businesses, universities and a range of other groups becoming increasingly alarmed at the way Brexit is being handled.

Scotland’s voice must be heard during the Brexit negotiations. Only recently we heard from a surprise supporter of that long-held SNP view. The Labour party leader, the right hon. Member for Islington North (Jeremy Corbyn), took time out from partying at Glastonbury to write for the Sunday Herald saying that Scotland needs a clear input into the Brexit negotiating process. He said:

“The Scottish Government must have regular and systematic access to the British negotiating team so that the Scottish perspective, especially in those areas for which the Scottish Parliament is responsible, is fully taken into account.”

That is very welcome; it is just a shame that his party cannot be united on access to the single market and the customs union. Will this Government finally acknowledge the overwhelming support for a Scottish seat at the Brexit table and extend the hand of friendship to all the devolved nations to enable them to take part in these negotiations, which will affect their people, their economies and their future?

This Conservative Government are cowed and reduced; they failed resolutely to start negotiating a trade deal with the EU at the same time as the exit deal. We in the SNP believe that it is important to maintain our international development goals and ensure an ethical trade policy. To ensure that our international development goals are maintained, the Scottish Parliament must have a real say on any trade deal that is negotiated. ActionAid has ranked the UK joint worst in the world for having the largest number of treaties with developing countries that most restrict the rights of poor countries to tax UK companies operating there. That is not acceptable and it does the UK’s reputation no good on the world stage. The SNP will continue to defend Scotland’s interests and prioritise maintaining Scotland’s membership of the single market and the customs union in the Brexit negotiations.

[Patrick Grady (Glasgow North) (SNP)]

My hon. Friend mentions our relationships with developing countries. Resolving the tax treaty with Malawi was a priority for many Members in the last Parliament. Malawi is neither too small nor too poor to be independent, despite its many challenges. Today is its independence day, and I am sure that we all wish it a happy independence day.

[Hannah Bardell]

I share my hon. Friend’s sentiment in wishing Malawi a happy independence day. I note the work that many Members across many different parties have done on Malawi, not least the former Labour First Minister, Jack McConnell, who I know continues to champion that work in the other place.

It is vital that the Brexit negotiations are carried out alongside a firm commitment to developing an ethical trade policy. I say to the Prime Minister and her Government that they will not get any kind of unity or agreement by ignoring the issues that they find in front of them. It is time to take their heads out of the sand, face the music and work with the devolved Administrations and other Members across the House so that we can get the best possible deal.

--- Later in debate ---

[Mr Vaizey]

And Russian. So everything is now in place for progress to be made.

I have to say that I am sceptical about the future. May I quickly add that I do not work for the BBC? However, I want to use this opportunity to say that I am a huge supporter of the BBC and of BBC news, which is respected all around the world. Those people who question the BBC’s patriotism or declare that it is somehow biased in this debate are absurd. You can see me on YouTube, when I defended George Osborne’s Brexit emergency Budget debate, being torn apart by Andrew Neil. He cut me no slack as a remainer coming on his programme. The BBC is not biased or partial, and people who claim that it is have simply lost the argument.

Let me get back to the main point of the debate, which is trade. I confess that I find this country in a confusing position. We are leaving the European Union free trade area that gives us access to 500 million consumers in order to trade with them on the basis of the World Trade Organisation rules. That seems to be the only position that we are taking. At the same time, we will negotiate a free trade deal with the United States because we do not like trading with that country on a WTO basis, so I am completely unclear as to what our position is on free trade and why we are walking away from 500 million consumers. I also find it odd that we want to have no deal rather than a bad deal.

It is quite clear from Michel Barnier’s speech this morning that we cannot pick and choose which sectors might benefit from access to the single market. It is also clear that having access to the single market and being a member of the European Union enables us to have free trade. The European Union has negotiated 60 free trade deals. The House approved a free trade deal with Canada this week, and another has seen exports to Korea rise by 54%. The EU has just started negotiations with Japan, and it is through no fault of the EU that we do not have a trade deal with the United States.

Trade deals are not necessarily nirvana. Ministers and others say that we will be able to have free trade deals from the day we leave the European Union, but I caution them as to the nature of those free trade deals. My hon. Friend the Member for Stone (Sir William Cash) talked about the virtues of free trade, with which I agree, and the opportunity to reduce import tariffs, but he has to be aware of the reaction of the British public and different sectors of the British economy if we simply reduce tariffs against their competitors. Not every free trade deal will be plain sailing, which is why it has taken seven years to negotiate the free trade deal with Canada.

[Hannah Bardell]

Is the right hon. Gentleman aware of the research by the University of California, Berkeley showing that the average time taken to negotiate a free trade agreement is 28 months? That means it would take the UK 91 years of cumulative negotiation to get to where we are. Does he think that will be a problem?

[Mr Vaizey]

That is the point. The idea that we can take free trade deals off the shelf and not face lobbying from different sectors of our economy on the possible threats to their position from a free trade deal—the idea that all sectors of our economy are crying out for free trade deals—is a misconception. These are extremely complicated arrangements. [Interruption.] My hon. Friend the Member for Harwich and North Essex (Mr Jenkin) says that we do not have a free trade deal with the EU, but at least we have access to the market without quotas, tariffs or non-tariff barriers.

Remember that free trade deals are constructed by human beings. This week I met a former US trade negotiator who is well plugged into the entire scene and who told me that the US trade representative organisation is already at full stretch and is demoralised by President Trump canning the Trans-Pacific Partnership. It has to renegotiate the North American Free Trade Agreement, and the Transatlantic Trade and Investment Partnership has been put back on the agenda. When President Obama said that we were at the back of the queue, the language may have been unfortunate but we should be realistic about where we are in the line with the US and realistic about the capacity of the US Administration to negotiate with us.

I have a few asks of the Minister, who is free to reply in German or Russian, as he sees fit, to show his capacity, for which I have nothing but admiration. Which countries are we targeting, and why have we chosen them? I know that we have 10 trade groups. I would like to hear his thoughts on a timetable for free trade deals with those countries. Is there any economic analysis of what the growth of GDP will be once those free trade deals have been negotiated?

I am a great supporter of the work of the Secretary of State for International Trade, who mentioned the welcome inward investment we have seen in the past year or so. As a former Minister with responsibility for the digital industries, I particularly welcome the investment by companies such as Facebook and Google. There are many, many issues, but we welcome their inward investment. Does the Minister agree that that inward investment is predicated on their ability to recruit people with specialist abilities?

Oral Answers to Questions

Hannah Bardell Excerpts

Thursday 6th July 2017 Commons Chamber

[Mark Garnier]

The hon. Gentleman raises a number of issues. The hon. Member for York Central (Rachael Maskell) has been working hard on behalf of her constituents to try to help with the redundancies at Nestlé, as indeed has the Department for Work and Pensions, which is standing ready to put in place its rapid response service. We are happy to meet representatives of Nestlé, and I would be very happy to meet them again. [Interruption.] Fantastic. Thank you.

[Hannah Bardell (Livingston) (SNP)]

Scottish food and drink exports have doubled since the Scottish National party Government came to power in 2007. This has been key to the development of the Scottish economy. What does the Minister think about Michel Barnier’s comment that frictionless trade in goods is “not possible” outside the single market and the customs union? Given the concerns of the Scottish Food and Drink Federation and the Scotch Whisky Association, and the huge reliance of the Scottish economy on this sector, will the Minister consider a transitional arrangement?

[Mark Garnier]

The total value of Scottish exports is some £62 billion a year, of which £50 billion is exported to the rest of the United Kingdom. That is as good a statement as any as to why Scotland should remain in the Union of the United Kingdom, rather than in the European Union.

--- Later in debate ---

[Mr Speaker]

Order. As we come to the first of the two urgent questions that I have granted today, can I please remind colleagues of the importance of sticking to the time limits that have been declared and communicated repeatedly to colleagues? Obviously this is particularly relevant to the Front Benchers—the person who secured the UQ and who has the allocated two minutes, and the Minister answering it, who has the allocated three minutes. We really do need to stick to the limits, because otherwise it is very unfair on Back Benchers.

[Hannah Bardell (Livingston) (SNP)]

On a point of order, Mr Speaker.

[Mr Speaker]

No, no—I am not taking points of order now. Points of order come after UQs and statements, but we will look forward to hearing the hon. Lady; we are saving her up for later on in the day.

Oral Answers to Questions

Hannah Bardell Excerpts

Thursday 3rd November 2016 Commons Chamber

[Karen Bradley]

It is very kind of the hon. Gentleman to offer to help, but I think he would agree that there is no higher table than the Cabinet, and I can assure him that the creative industries are fully represented at that top table. It is also worth pointing out that I have held round-table meetings with the creative industries, and the Creative Industries Council last week had a specific session looking at the work it has done to examine not only the threats there are from Brexit, but its many, many opportunities. This is a global industry in which the UK is a world leader, and he should take comfort from the fact that the Prime Minister mentioned the creative industries specifically in her conference speech as one of those strengths that we want to build on, here in the UK and in the rest of the world.

[Hannah Bardell (Livingston) (SNP)]

7. What steps she is taking to reduce the incidence of homophobia in sport.

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Tracey Crouch)]

There is absolutely no place for homophobia in sport or anywhere in society. In the sports strategy, we asked Sport England to

“place equal emphasis on the support for LGB&T people in sport as it does for other characteristics”

that are protected. Some research has been commissioned, and Sport England is currently considering its findings.

[Hannah Bardell]

When the chairman of the English Football Association said that it was not the time for gay footballers to come out in the male Premier League he shamed himself and he shamed football. Does the Minister agree that those comments are wholly unacceptable, and that the FA and Premier League clubs in England should follow the example of Scotland, which, with the Equality Network, has developed an LGBT sports charter? Will she work with me and others to take that forward?

[Tracey Crouch]

The reported comments are indeed unhelpful and we should encourage and support people in all sports who wish to come out. We need to ensure that we use existing legislation to stop homophobic chanting and language during sporting events. I know that the Football Association is working hard trying to support people in the game and that progress has been made in tackling homophobia, but we need to consider other means of doing that as well. Supporting players is absolutely essential.

Leaving the EU: North-East Exports

Hannah Bardell Excerpts

Tuesday 25th October 2016 Westminster Hall

[Hannah Bardell (Livingston) (SNP)]

I am delighted to head up that galaxy of parliamentary talent, as you so eloquently put it, Mr Hollobone. I congratulate the hon. Member for Sedgefield (Phil Wilson) on securing the debate. As he says, I am sure there will be many more such debates and opportunities to drill down and have an ongoing conversation. If the Government are not going to have an ongoing commentary on the EU, we Back Benchers certainly will.

As the hon. Gentleman said, the UK’s relationship with the EU is significant for the north-east, which in 2015 exported £7 billion of goods to the EU—58% of its total, which is well above the UK average of 48%. This debate is about the north-east, but I hope he and you, Mr Hollobone, will indulge me if I touch a little on the impact on Scotland and the rest of the UK.

The value of the pound has dropped significantly since the announcement of the referendum result. Although that offers a short-term gain for some, such as those looking to buy property in the UK, increasingly expensive imports and exports will hurt the UK and all the countries in it in the long term. I noted with interest the Financial Times article yesterday that stated that the percentage of foreign buyers in London’s property market had increased from 23% to 29%. It seems obvious to me that that creates further problems for local people, who were already struggling to get on the property ladder. Not only are their savings being devalued by the falling pound, but they will be up against an increasing number of foreign buyers and investors. The weakening of the pound since the Brexit vote has helped Tata Steel’s profits, but as we well know, such companies rely on imported iron ore and coking coal, so they will be negatively affected if tariffs increase in the longer term.

The hon. Gentleman mentioned the impact on Nissan’s Sunderland factory, which ships nearly 75% of its cars to the EU and relies on parts from outside the UK. The north-east economy cannot flourish without the automotive industry, or even with a damaged one. Failing to negotiate trade deals quickly will cause repercussions years down the line. I suggest that the Tory Government’s much-vaunted northern powerhouse is fast becoming more of a northern power cut.

Scotland will feel the impact of the UK leaving the customs union just as the north-east will. In 2014, 42% of Scotland’s international exports were to the EU, and 58% of Scottish exports to the EU are in the food, tobacco and beverage manufacturing industries. I have spoken to several companies in those industries and will address some of their concerns shortly. Last year in Scotland alone, there were more than 2,300 foreign owned companies, employing nearly 314,000 people and turning over £90 billion. When the Government create uncertainty for those companies—I know there will be others in the north-east—hundreds of thousands of workers are uncertain about their futures.

With such uncertainty, it is not unreasonable to ask for a clear plan and an open debate. At the moment, we are expected simply to have faith in the Government—a Government who promised to double exports to £1 trillion by the end of the decade but saw them fall to £511 billion just last year. If those numbers are moving in the wrong direction, how are we to believe that the EU trade negotiations will move in the right direction for the UK economy and its workers, especially given that at a recent European Council meeting, the Prime Minister was given just five minutes—at 1 am, after the dinner plates had been cleared—to set out her view on Britain’s exit from the EU?

We had a debate on the Government’s industrial strategy just last week. The conclusions could not have been clearer. It is nearly impossible to debate industry, trade and the economy when the Government have neither the outline nor an inkling of a plan. There is a lot that we need to debate about the impact on the north-east and Scotland, and I hope we will have many more such debates and the opportunity properly to scrutinise the plans when they come forward.

Let us take the UK’s membership of the EU customs union and common tariff. Beyond the party political and theoretical points are some gritty IT issues that need to be looked at more closely—we know about the UK Government’s track record on IT. If Britain leaves the EU customs union, it will have to go through its own system of customs declarations and security checks whenever trading with the EU. After the Brexit vote, the EU began looking at increasing its capacity for customs declarations from 50 million to 350 million a year to account for future customs forms from the UK. Changing that system will take time, and before it is finalised we will not know how delays will be managed. I recently met the Scotch Whisky Association, which emphasised the importance of the excise movement and control system, a trading system by which all exports are tracked and managed. Staying part of that is key, but we have had no answers about it. Perhaps the Minister can enlighten us.

On the other side, the UK’s current system for importing and exporting non-EU products, which following Brexit will have to be used for all products, is about 25 years old and due to be replaced. However, its replacement, the customs declaration services system, is expected to be functioning by December 2018, just before the UK is expected officially to leave the EU. The CDS system is designed for managing about 100 million declarations a year, rather than the now expected 350 million that will be required once the UK leaves the European Union. That puts us two years behind already.

Desmond Hiscock, who runs the UK Association for International Trade, said that the system

“will not be able to cope and there is not much confidence that the untested and still incomplete replacement…will fare much better.”

[Mr Philip Hollobone (in the Chair)]

Order. I am listening to the hon. Lady’s remarks with great interest. She will be aware that two Members of the House who represent constituencies in the north-east also want to contribute and that, within 30 seconds, she is coming up to having used a third of the allocated Back-Bench time. She might, out of politeness, want to think about drawing her remarks to a close.

[Hannah Bardell]

Thank you, Mr Hollobone. I will wrap up my comments, because of course I want to let colleagues in. If the Prime Minister truly wants to find the best trade deal for the north-east and for the rest of the UK, she would do well to engage actively across all parties and all countries within the UK.