Tuesday Volume 618 13 December 2016 No. 80 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Tuesday 13 December 2016 © Parliamentary Copyright House of Commons 2016 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 597 13 DECEMBER 2016 598 Jesse Norman: As I have said, it is premature to give House of Commons any kind of assurance. What is striking, though, is the amount of new investment that has been taking place in Tuesday 13 December 2016 this country,irrespective, one might think, of any concerns about Brexit. That includes investments in BAE Systems, Nissan, Jaguar Land Rover, Honda, Associated British The House met at half-past Eleven o’clock Ports and many other large industrial players. PRAYERS Mr Steve Baker (Wycombe) (Con): Will my hon. Friend explore how World Trade Organisation-compliant tariff drawback mechanisms and inward processing [MR SPEAKER in the Chair] measures can ensure that the objectives of my hon. Friend the Member for Rossendale and Darwen (Jake Berry) are met? Oral Answers to Questions Jesse Norman: That is a formidably technically sophisticated question, for which I thank my hon. Friend. I think that it probably lies to be answered between BUSINESS, ENERGY AND INDUSTRIAL ourselves and the Department for International Trade. STRATEGY We will certainly consider it carefully. Mr Speaker: There are some very clever people in The Secretary of State was asked— Wycombe, you know. Leaving the EU: Tariffs Kate Green (Stretford and Urmston) (Lab): Food 1. Jake Berry (Rossendale and Darwen) (Con): What production and food processing is an important part of steps the Government are taking to protect industries the north-west economy that is not necessarily susceptible based in (a) East Lancashire and (b) the UK from the to export beyond the European Union because of different potential effect of tariffs after the UK leaves the EU. consumer tastes and preferences in the rest of the [907816] world. What negotiations are the Government considering or already undertaking to protect this important industry? The Parliamentary Under-Secretary of State for Business, Can the Minister confirm that specialist negotiators Energy and Industrial Strategy (Jesse Norman): My who understand the industry are in place to carry out Department is working closely with the Department for those negotiations? Exiting the EU to understand the impacts that leaving the EU will have on businesses, consumers and other Jesse Norman: That question is really as much for the economic actors across the UK, including in east Department for Environment, Food and Rural Affairs Lancashire. As the Prime Minister has said, we will as it is for us. Nevertheless, it is true that tastes are work hard to get the best deal for Britain. expanding around the world, and therefore one sees every opportunity for British food producers to expand Jake Berry: Although not quite as eye-catching as the their world markets in the days to come. motor industry,the construction products,furniture-making and chemical industries, represented by Crown Paints, Philip Davies (Shipley) (Con): Given that we have a J & J Ormerod and others in my constituency, employ massive trade deficit with the European Union, surely it more people. Will my hon. Friend ensure that these would be economic suicide for the EU not to agree a strategic industries to east Lancashire can trade on no free trade deal with us. However, Civitas has calculated less favourable terms than any other industry following that if it did go down that line, British business would Brexit? have to pay about £5 billion a year in tariffs under WTO rules to access the EU market, and EU businesses Jesse Norman: As my hon. Friend will know, I am would have to pay about £13 billion in tariffs to access closely involved with the construction products sector, the UK market. Given that, could we not agree to cover and the construction industry in general, through the all tariffs for British businesses exporting to the EU, Construction Leadership Council. It would be premature so that they do not have to pay anything, and still be to comment on any deal to be struck, but he can take it quids in? from me that it has my closest attention, as does the future of the construction industry itself. Jesse Norman: Alas, long experience has taught me to Graham Jones (Hyndburn) (Lab): As a fellow MP for distrust some of these speculative estimates of cost and Rossendale, I echo the comments and concerns about benefit, so I will not comment on that. leaving the EU and what the tariff framework would be if there was a hard Brexit. When I visited Simon Jersey, Danny Kinahan (South Antrim) (UUP): We are all which did the formal wear for our Olympic team, I was aware that the cross-border trade between Ireland and told that the cliff-edge tariffs on textiles are between Northern Ireland is absolutely vital, and if tariffs are 9% and 12%. This is a real concern. What assurances put in place, it could be a complete disaster. Can we can the Government give to companies that they will please make sure that the Northern Ireland voice is not be taxed out of business through leaving the EU? heard and embedded in any negotiations? 599 Oral Answers 13 DECEMBER 2016 Oral Answers 600 Jesse Norman: I assure the hon. Gentleman that that support it as new fourth industrial revolution businesses question is being taken extremely seriously in my come forward to seek new funding to develop the next Department. Northern Ireland is an area for which I generation of science and technology businesses? have a ministerial responsibility. I have met, on several occasions, Northern Ireland Economy Ministers and Joseph Johnson: Yes, I am happy to provide that senior figures in industry there. We will continue to look assurance. Innovate UK, our innovation agency, will be at this question very closely. at the heart of our industrial strategy, and the autumn statement will provide it with the resources it needs to Science and Innovation continue to do its job of supporting small businesses in innovation. 2. Adam Afriyie (Windsor) (Con): What steps his Department is taking to promote science and innovation. Liz Saville Roberts (Dwyfor Meirionnydd) (PC): Tidal [907817] Lagoon Power’s report, “Ours to own”, anticipates that tidal lagoons could bring more than £70 billion to the The Minister for Universities, Science, Research and UK industry.Swansea Bay tidal lagoon is key to unlocking Innovation (Joseph Johnson): This Government are strongly that innovative potential, which has great opportunities committed to science and innovation. We protected the for Cardiff and the north Wales coast, as well. I appreciate science budget at the spending review in 2015. In the that the Minister will have concerns about costs to last autumn statement, a few days ago, we committed to customers, but will he commit to weighing up all aspects spending a further £2 billion a year by the end of this of the energy trilemma in his response to the Hendry Parliament. The creation of UK Research and Innovation, report? through the passage of the Higher Education and Research Bill, will increase the value and impact of our investments in science and innovation in the years ahead. 1 Joseph Johnson: We are looking very carefully at the report and will be coming forward with our response in Adam Afriyie: I thank the Minister for that answer. It due course. has certainly been a good time for science and innovation in Britain. It has also been a good year for the UK space sector, with Major Tim Peake’s historic visit to Dr James Davies (Vale of Clwyd) (Con): Chemical the international space station and a new spaceport and pharmaceutical businesses are an important feature here in the UK. It certainly strikes me that the next big of the northern powerhouse and emerging enterprises challenge will be the successful delivery of the ExoMars in the sector are often rooted in university research labs. programme, particularly given some of the rumours What support and funding can the UK Government that have been going around. Will the Minister update commit to encourage continued research collaboration the House on any progress made at the European Space across Europe—and indeed the rest of the world—to Agency summit recently? increase our innovative business base post-Brexit? Joseph Johnson: Yes, I am happy to provide a brief Joseph Johnson: Wesupport international collaboration update. My hon. Friend is an aficionado of space policy in science and research in Europe, and indeed around and former chair of the parliamentary space committee, the world, and will continue to do so. so he will be delighted to know that we had an excellent outcome at the European Space Agency’s Council of 20. [907838] Alan Brown (Kilmarnock and Loudoun) Ministers. We committed a further ¤1.44 billion, which (SNP): The Government talk about promoting science has secured the future of the ExoMars programme, and innovation, but this Government pulled the plug on among many other things. funding for carbon capture and storage. How much of the additional £4.7 billion R and D money announced Mr Barry Sheerman (Huddersfield) (Lab/Co-op): I in the autumn statement will be allocated for carbon do not want to ruin the Minister’s Christmas celebrations, capture and storage? which are imminent, but if he looks at the deplorable investment in research and development—the figures that came out only this week—does he not see that he Joseph Johnson: We will consult the sector and the needs to wake up and smell the coffee? The fact of the science community very carefully as part of our matter is that research and innovation will be deeply development of the industrial strategy, in a discussion damaged by leaving the European Union.