Leaving the EU: Customs

Debate between Peter Dowd and Hilary Benn

Wednesday 16th May 2018 Commons Chamber

[Peter Dowd (Bootle) (Lab)]

Call me old-fashioned, but what is wrong with the House having papers, presentations and economic analyses on the Government’s post-Brexit preferred customs arrangements, including a customs partnership and maximum facilitation? What is wrong with that? What we have is a Government who are waiting, like Mr Micawber, for something to turn up. That is what it is.

The hon. Member for North East Derbyshire (Lee Rowley) asked why we have this Humble Address motion before us. I will tell him why: it is because this Parliament is getting stitched up and gagged by the Tories. They would not allow amendments to the law in the Finance Bill. They have threatened the House of Lords. They have statutory instruments coming out of their ears and ministerial diktats will follow. That is why we have this motion. The hon. Member for East Renfrewshire (Paul Masterton) told us that this Humble Address was a Mickey Mouse motion. Well, I tell you what: Mickey Mouse is 80 years old this year and he is a well-respected, popular icon—respected by generations and millions of people. If this is a Mickey Mouse Humble Address, I will have them every single day.

The hon. Member for Gordon (Colin Clark) said, “Get on with it,” but what are we supposed to be getting on with? The Government do not actually know. My hon. Friend the Member for Bury South (Mr Lewis) said that this is a shambles, that we are a laughing stock, and he is absolutely spot on. The hon. Member for Cleethorpes (Martin Vickers) said that we are undermining our negotiating position. Well, we do not have a negotiating position, so how can we undermine something that we do not have? It was particularly bizarre.

My hon. Friend the Member for Birmingham, Edgbaston (Preet Kaur Gill) talked about the threat to manufacturing in her constituency, which the Government do not care about. It is as simple as that. The hon. Member for Aberdeen South (Ross Thomson) referred to Adam Smith and “The Wealth of Nations”. Let me remind him that before “The Wealth of Nations” came “The Theory of Moral Sentiments”. Well, there is nothing moral in what this Government are doing on this particular issue. There is secrecy, intrigue and furtiveness, and there is nothing moral about that whatsoever.

As for the hon. Member for Middlesbrough South and East Cleveland (Mr Clarke), what we want to know is: what did he have in his right pocket? Was it a Rubik’s cube or a redacted Brexit Sub-Committee minute? Get it out and let us have a look. The hon. Member for Bolton West (Chris Green) mumbled something and then sat down. I think some of his hon. Friends should have done exactly the same thing and we might have been able to move on. The hon. Member for Chelmsford (Vicky Ford) said that we need to take time to get it right. Well, we do not have the time because the Government have been dragging their feet for a year or more.

My hon. Friend the Member for Wirral South (Alison McGovern) said the Government were in chaos, and she was absolutely spot on. The hon. Member for Redditch (Rachel Maclean) said she wanted to deliver a sensible Brexit—well, get on with it then! We will join them, if they do want to deliver a sensible Brexit, but there is no suggestion they do. My hon. Friend the Member for Leigh (Jo Platt) called it shambolic, and it is shambolic. It is as simple as that. My hon. Friend the Member for Bury North (James Frith) said there was nothing heroic about putting people out of work, and he was absolutely spot on. My hon. Friend the Member for High Peak (Ruth George) said the Government were not listening, which sums it up, and we are losing business because of it.

In contemporary parlance, the Prime Minister is “shook”—totally unable to stand up to the right-wing press and back the only sensible way forward, which is Labour’s plan for a customs union. That is what we want. Instead, the Cabinet has been offered two options to decide between. First, we have what the Prime Minister calls a customs partnership. As my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) has mentioned, this partnership would require UK officials to collect tariffs on behalf of the EU for any goods coming to the UK that are travelling onward to an EU state. As hon. Members have said, the Prime Minister’s plan has been described as “crazy” by the Foreign Secretary and as having “significant question marks” by the Environment Secretary, while HMRC sources have called it “unviable” and suggested that Ministers are “having a laugh”.

Perhaps the Minister can clarify: is the Prime Minister’s preferred option “crazy” or merely “unviable”? It cannot be forgotten that HMRC resources have been decimated, with staffing and resourcing slashed by 17% since 2010. Nevertheless, the Government now think it appropriate to use what little resource is left to protect the EU’s customs union for it, without the UK receiving the full economic benefits. This feels like the worst of all worlds.

[Hilary Benn (Leeds Central) (Lab)]

Does my hon. Friend agree that even if the Prime Minister can persuade her divided Cabinet and then the EU negotiators to accept one or other of those two proposals, neither would be ready before the end of the transition period? Is it not therefore time for the Government finally to admit that we will be remaining in a customs union with the EU for some time to come?

[Peter Dowd]

That is a fair assessment from my right hon. Friend.

As Members have mentioned already, we have been told by the Brexit Secretary that:

“Faced with intractable problems with political pressure for a solution, the government reaches for a headline grabbing high-tech ‘solution’. Rather than spend the resources, time and thought necessary to get a real answer, they naively grasp solutions that to the technologically illiterate ministers look like magic.”

It is not me who is suggesting that the Brexit Secretary has not acquired the technical prowess to rocket us into this scientific utopia; it is the Brexit Secretary himself. The Government’s search for a magical fix to questions of such seriousness as the Northern Irish border leads us to believe that it is now in the public interest for Parliament itself to scrutinise the two options proposed by the Prime Minister. To do so, we must have access to the necessary information: in this case, the information contained in the papers, presentations and analyses provided to the Cabinet on each of these proposals.

Labour’s position is clear. We would negotiate a customs union that would ensure a strong and collaborative future relationship with the EU, deliver the exact same benefits as we currently have with members of the single market and customs union, ensure the fair management of migration in the interests of the economy and communities, defend the rights of workers and environmental protections, prevent a race to the bottom, protect national security and our capacity to tackle cross-border crime and deliver for all the regions. Let us then expose the Government’s total failure to reach a feasible negotiating position and in the process move one step forward to the goal of a new customs union with the EU, which is a position, I suspect, that is backed by Members across the House and one that meets all the key conditions of a final exit settlement.