Thursday Volume 635 1 February 2018 No. 90 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 1 February 2018 © Parliamentary Copyright House of Commons 2018 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 953 1 FEBRUARY 2018 954 Mr Walker: The Government have been talking to a House of Commons wide range of industry groups and representative bodies of business, and we recognise that there are benefits in some areas of maintaining regulatory alignment and Thursday 1 February 2018 ensuring that we have the most frictionless access to European markets. Of course we are entering the The House met at half-past Nine o’clock negotiations on the future partnership, and we want to take the best opportunities to trade with Europe and the wider world. PRAYERS Mr Philip Hollobone (Kettering) (Con): Is it true that Michel Barnier has basically offered us the Canada [MR SPEAKER in the Chair] model, agreement on which could be reached this year, thus negating the need for any transition period? Mr Walker: The Government’s policy is that we are Oral Answers to Questions pursuing a bespoke trade agreement, not an off-the-shelf model. We believe that it will be in the interests of both sides in this negotiation to secure an implementation period. EXITING THE EUROPEAN UNION Stephen Timms (East Ham) (Lab): The European The Secretary of State was asked— Union has clearly and firmly set out its views on the options for these negotiations. Ministers so far have Regulatory Equivalence signally failed to provide any coherent response because they cannot agree among one another, and the Minister’s 1. Mr Alister Jack (Dumfries and Galloway) (Con): answers today underline that—whether the answer is If he will make an assessment of the potential merits of regulatory equivalence or something different, we just seeking regulatory equivalence with the EU. [903661] do not know. How long will it be before the British Government have a coherent position to set out in these 18. Mike Amesbury (Weaver Vale) (Lab): What negotiations? comparative assessment he has made of the potential merits of regulatory (a) alignment with and (b) divergence Mr Walker: The Prime Minister has repeatedly set from the EU. [903684] out a coherent position with regard to the future partnership we seek with the European Union. There was the Florence The Parliamentary Under-Secretary of State for Exiting speech. My Secretary of State has been making speeches the European Union (Mr Robin Walker): We are fully and the Chancellor has been making speeches, clearly focused on making the UK’s exit from the EU and our setting out the UK’s objectives for these negotiations, new trading relationship with the world a success. We and we look forward to achieving those objectives in the have set out proposals for an ambitious future relationship months to come. with the EU that minimises regulatory barriers for goods and services.Our partnership should be underpinned Nigel Dodds (Belfast North) (DUP): The Minister by high standards, a practical approach to regulation, will know that legal text has now been looked at in trust in one another’s institutions and a shared spirit of terms of the progress report in December and that the co-operation. issue of regulatory alignment came up with that document. Can we be assured that nothing will be put into legal Mr Jack: Does my hon. Friend agree that regulatory text that prejudices our interpretation—the Government’s equivalence, as opposed to regulatory alignment, should interpretation—in relation to regulatory alignment? be a red line in our negotiations with the EU if we want to do trade deals with other countries around the world? Mr Walker: Absolutely; I can give that assurance. It is very important that we do secure the agreement based Mr Walker: Regulatory equivalence is about pursuing on the joint report and that that secures the position on the same objectives, and as the Prime Minister outlined the territorial integrity of the United Kingdom. in her Florence speech, that could mean achieving the same goals by the same means or achieving the same Customs Union goals by different means. It does not mean that we have to harmonise our rules with those of the EU. It is not a 2. Mrs Emma Lewell-Buck (South Shields) (Lab): binary choice; we are proposing a bespoke, bold and What recent assessment he has made of the effect of the ambitious free trade agreement between the UK and UK leaving the EU customs union on the economy. the EU, and we want to secure trade with Europe and [903662] with the wider world. The Parliamentary Under-Secretary of State for Exiting Mike Amesbury: By more than 2:1, members of the the European Union (Suella Fernandes): The Government Institute of Directors would prefer the UK to maintain conduct an extremely broad range of work on EU exit regulatory alignment with the single market rules for issues and will continue to do so, which means that all goods and services, rather than actively seeking to diverge decisions, including those on the EU customs union, after Brexit. Is that the Government’s aim as well? are supported by many analyses. Leaving the customs 955 Oral Answers 1 FEBRUARY 2018 Oral Answers 956 union liberates the UK to establish new and fruitful Suella Fernandes: We are seeing a rise in manufacturing trade deals with the rest of the world, as well as pursuing and in exports, and UK foreign direct investment is at a a new trading relationship with the EU that retains as record high. The economy is doing very well, and there frictionless a trade as possible in goods. have been encouraging signs and votes of confidence in the UK economy since Brexit. As we enter the next Mrs Emma Lewell-Buck: From that answer, it is clear phase of the negotiations, we want to ensure that the that no assessment has been made. We have had it automotive sector benefits from any arrangement. That confirmed again this week that the north-east retail and will be a priority for the Government. manufacturing sector will be hardest hit in all scenarios. It is clear—is it not?—that nearly 200,000 workers in Peter Grant (Glenrothes) (SNP): We now know—no my region who work in these sectors are facing grim thanks to the Government—that all the analysis that futures because of this Government’s inability to get the Government have done to date shows that Brexit is their act together. bad news. We know that the Prime Minister was shown that analysis a few days ago, and we know that the first Suella Fernandes: One advantage—although there thing she did was to jump on a plane to China. Will the are many—of leaving the customs union is that Britain Minister confirm the accuracy of the reports yesterday can be a champion for global free trade again for the that the Government’s analysis also shows that their first time in 40 years. Free trade through mutually obsession with cutting EU migration will be seriously beneficial partnerships has historically ushered in bad for the British economy? productivity, innovation, consumer choice, growth and prosperity—something I hope that the hon. Lady will Suella Fernandes: We are in the middle of the encourage. negotiations, but when it comes to migration, it is clear that the UK will be committed to designing its own Michael Tomlinson (Mid Dorset and North Poole) immigration policy, which is determined by skills, talent (Con): I very warmly welcome my hon. Friend to her and brains. That is what will drive our economy forward, place. It is great to see a ray of sunshine, optimism and and that is what will create jobs and growth. positivity from the Front Bench. What a shame that we do not see the same from the Opposition Benches. Is she Peter Grant: My question was whether yesterday’s surprised, as I am, that we are still discussing the report was correct. I take it from the Minister’s attempt customs union? The EU has ruled it out. The Prime to dodge the question that that report, like the previous Minister has ruled it out. The Leader of the Opposition—if ones, was entirely accurate. Given that the Government’s not quite the shadow Secretary of State—has ruled it own analysis shows that leaving the European Union is out. Why are we still talking about it? bad news, leaving the customs union is bad news and leaving the single market is bad news—and now that we Suella Fernandes: My hon. Friend raises a very prescient know that cutting immigration from the European Union point. The British people voted to leave the EU in their is bad news—do the Government have any plans, at any historic decision in 2016. In doing so, they instructed time before Brexit day, to adopt a strategy that is based this Parliament to take us out of the EU customs union. on facts and evidence, rather than on blind ideology? That is exactly what the Prime Minister and this Government are doing. Suella Fernandes: The document to which the hon. Gentleman refers is not Government policy. It comes Nick Smith (Blaenau Gwent) (Lab): Blaenau Gwent with significant caveats and is limited in nature. It is has just been boosted by the arrival of the car company, clear that there are significant benefits from our departure TVR. Does the Minister agree that we need a customs from the EU and the customs union.