Taxation (Cross-border Trade) Bill

Karin Smyth Excerpts

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

[Sammy Wilson]

That is the whole point of new clause 37. First, it would deliver on the promises made by the Government; it puts those promises into law. Secondly, it would avoid the break-up of the United Kingdom and the kind of nonsense that we are going to hear from the Scottish National party—that we can redefine the United Kingdom to exclude Northern Ireland when it comes to trade issues. Of course, that would be against the Belfast agreement, because the Belfast agreement does not actually say a great deal about borders, but it says a lot about the integrity of the United Kingdom—that it cannot be changed by diktat from the EU or by demands from Dublin. It can only be changed with the will of the people of Northern Ireland. Yet the suggested backstop arrangement is at the behest of the EU, which seems to disregard the most important part of the Belfast agreement and has destabilised Northern Ireland as a result.

[Karin Smyth (Bristol South) (Lab)]

The right hon. Gentleman is of course right that the constitutional status of Northern Ireland has not been in dispute for a very long time and is underlined by the Belfast/Good Friday agreement. People have only started talking about the constitutional arrangements in Northern Ireland as a result of Brexit. That is the only thing that has now started to trigger any discussion around the break-up of the United Kingdom, and I am afraid that his party has helped that process.

[Sammy Wilson]

That is the point that I am making—that this red herring has been thrown into the debate to try to persuade people like me and Government Members to stay within the customs union and the single market. It is a red herring because, as I have said, it is not essential to have a hard border to protect trade between the United Kingdom outside the EU and the Irish Republic inside the EU. Other methods are currently used. We have a fiscal border, a regulatory border and a currency border. We do not need checks at the moment, so why would that change once we leave the EU?

The third thing about new clause 37 is that it would actually strengthen the Prime Minister’s hand. When she goes into negotiations, Barnier and Co. will still be badgering her and insisting that there has to be a different regime of regulation, law and EU interference in Northern Ireland. It will strengthen the Prime Minister’s hand to be able to say that the Parliament of the United Kingdom has said in law, “We will not and cannot change the status of Northern Ireland. We cannot have separate customs arrangements for Northern Ireland and the law says that.”

New clause 37 would also protect Northern Ireland from being cut off from its biggest market. The Irish Republic is not our biggest market. The whole EU is not our biggest market. Over 60% of the produce of Northern Ireland comes to Great Britain. Ironically, if the Government in Dublin were thinking with their head, they would recognise that the Barnier formula for the border is also detrimental to the Irish Republic, because it would mean having a border down the Irish sea, cutting the Irish Republic off from its biggest market. Over 50% of its agricultural products come here, yet it is concerned about the paltry border that counts for 1.6% of its trade. People just fail to understand why this should be the case and why the Government of the Republic should take that view.

The Prime Minister has an opportunity. New clause 37 would strengthen her hand in the negotiations coming up to October. She still has the opportunity to tell the EU, “If you want our money, give us a fair deal. We’ll prepare for a no deal if we can’t get a good deal. The balance of trade rests with us. If you want access to our markets, make sure that we get access to your markets.” That should be the approach. Get the handbag out, do a bit of swinging and get a good deal.