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EU Exit: End of Transition Period
23 September 2020
Lead MP
Michael Gove
Debate Type
Ministerial Statement
Tags
EconomyTaxationEmploymentBrexitBusiness & Trade
Other Contributors: 45
At a Glance
Michael Gove raised concerns about eu exit: end of transition period in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The statement by Michael Gove emphasised preparations for the UK's departure from the single market and customs union in 100 days, stressing both opportunities and challenges. He highlighted that irrespective of whether a free trade agreement is secured with the EU or not, significant changes will affect businesses trading with and citizens travelling to the EU. The Government has invested £705 million in new technology, infrastructure, and jobs at borders and provided over £80 million for customs agent recruitment to support expanded intermediary services. HMRC's civil servants are working with businesses to prepare them for customs procedures, and the publication of a reasonable worst-case scenario highlights potential disruptions if business readiness is insufficient, including tailbacks of up to 7,000 HGVs in Kent due to unready imports.
Rachel Reeves
Lab
Leeds West and Pudsey
Question
Why are essential prerequisites such as targeted advertising, updated haulier handbooks, and advice stands not already in place?
Minister reply
The Minister acknowledged the need for preparation but emphasised ongoing efforts to support businesses through various initiatives including the publication of guidance materials and public information campaigns.
Rachel Reeves
Lab
Leeds West and Pudsey
Question
Can the Government assure the House that construction progress on proposed lorry parks is on track?
Minister reply
The Minister responded by stressing the importance of infrastructure readiness but did not provide specific assurances regarding the construction timeline or exact locations of new facilities, noting ongoing work to ensure adequate preparations.
Rachel Reeves
Lab
Leeds West and Pudsey
Question
Will the Government list 10 necessary IT systems for a smooth trading relationship with the EU and guarantee their readiness by January?
Minister reply
The Minister did not provide a definitive list of required IT systems but emphasised ongoing efforts to prepare infrastructure and personnel, highlighting investments in new technology and increased staffing levels at border points.
Rachel Reeves
Lab
Leeds West and Pudsey
Question
The hon. Member raises concerns about tailbacks of up to 7,000 lorries in Kent due to inadequate preparations for leaving EU customs union and single market. She questions why essential prerequisites such as targeted advertising, updated haulier handbooks, and advice stands at service stations are not already in place.
Minister reply
The Minister responds that businesses have known since June what is required and emphasises the need for business readiness irrespective of whether a deal with EU is secured. He assures that infrastructure projects like the Ashford motorway site will be ready on time, providing transit facilities for exporters and importers from January 2021 onwards.
Damian Green
Con
Ashford
Question
The right hon. Member clears up a myth about archaeological finds at the Ashford site and inquires about the readiness of smart freight system for smooth running of traffic across the channel.
Minister reply
My right hon. Friend is correct that avoiding congestion requires everyone to work together, especially exporters committing goods to haulage. The smart freight system is being shared with businesses and will enable a relatively simple process to get Kent access permits for smooth transit through Kent.
Pete Wishart
SNP
Perth and Kinross-shire
Question
Today is the day when all the Brexit chickens come home to roost, only of course they will not, because they will be sitting in a 7,000-strong lorry queue on a Kent motorway for two days, waiting to be dispatched. I remember the days of the easiest deal in history, of having our cake and eating it while observing the sunny uplands, when even the Duchess himself told us that we hold all the cards. Well, it seems that the only card we are holding is the joker with his “Spitting Image” mush all over the front of it. What I do not understand is why he continues with the charade of seeking a deal when we know that it is the no deal that they all want and all covet?
Minister reply
I do not know where to begin: chickens or cake. Those questions were a mixter-maxter of mixed metaphors the likes of which even the most impressive makar would be proud. It was a remarkable performance —they usually are. I thank the hon. Gentleman for referring to the fact that “Spitting Image” has fashioned a rubber puppet in my likeness. It is one of the greatest honours that has ever been paid to me, and I hope that other Members will enjoy that recognition in due course.
Pete Wishart
SNP
Perth and Kinross-shire
Question
The hon. Gentleman asked about chickens. One of the things we will do is ensure that we prioritise day-old chicks, and fish and shellfish from Scottish harbours to make sure that they reach the fish market in Boulogne without let or impediment.
Minister reply
As we take back control of our waters, and access to our marine resources enables Scotland to get thousands of new jobs and millions in new investment, we want to be able to take full advantage of that. Sadly, one of the Scottish Government’s decisions is that they wish to re-enter the European Union, give up access to that bounty and sell Scotland’s coastal communities short. I gently suggest that that is probably a mistake.
Pete Wishart
SNP
Perth and Kinross-shire
Question
The hon. Gentleman makes the point that the best-case scenario for Scotland is independence. That has long been his position. Of course, while we set out to answer questions in this House, there are many questions about independence that have not been answered.
Minister reply
What currency would an independent Scotland use? How would UK pensions be guaranteed in an independent Scotland? What would be the replacement for the furlough scheme in an independent Scotland when HM Treasury was no longer capable of providing that money? As Andrew Wilson’s growth commission has pointed out, an independent Scotland would have to pay a premium for borrowing on international markets. No pounds, no pension and poorer, an independent Scotland—unless the hon. Gentleman can come up with better answers—is the worst case of call.
David Mundell
Con
Dumfriesshire, Clydesdale and Tweeddale
Question
May I ask a question that actually matters in relation to jobs and the economy in Scotland? With only 100 days to go to the end of the transition period, will my right hon. Friend confirm that the UK Government have given up on the EU’s resolving the Airbus-Boeing dispute, which has led to damaging tariffs on Scotch malt whisky in the US? Will the UK Government pursue a bilateral resolution of that dispute to see those tariffs lifted and enable the Secretary of State for International Trade to negotiate a free trade agreement that banishes such tariffs forever?
Minister reply
My right hon. Friend is absolutely right to raise that issue. It is because of the EU’s mishandling of the Airbus project that the US imposed tariffs on malt whisky that did not exist beforehand, hitting one of Scotland’s most important exports. My right hon. Friend the International Trade Secretary has been negotiating on Scotland’s behalf directly with the US to see those tariffs lifted.
Hilary Benn
Lab
Leeds South
Question
I am grateful to the Secretary of State for his statement, although a queue of 7,000 lorries would not be much of a great prize for the country. As he knows, for months, those who move goods for a living across the short straits have been warning Ministers that systems and training will not be ready in time. Now the industry says that it is being “fitted up” to take the blame for the Government’s failure to grasp, in the words of one logistics expert involved in the talks, “real-world complexities”. The Chancellor of the Duchy of Lancaster just told the House that the Goods Vehicle Movement Service and the Smart Freight IT systems are in operation. When did that happen?
Minister reply
They have been developed. They are in operation now. We are refining with business exactly how they should operate for businesses’ benefit.
Andrew Mitchell
Con
Sutton Coldfield
Question
I congratulate my right hon. Friend on his “Spitting Image” puppet and on the literary prowess visited on him in recently published diaries. I remind my right hon. Friend of his considerable generosity in coming to the west midlands to attend a roundtable with manufacturers some 12 months ago. He did that with our outstanding west midlands Mayor, Andy Street.
Minister reply
I am grateful to my right hon. Friend. I was not aware that there were any diaries being published this week.
Ben Lake
PC
Ceredigion Preseli
Question
The Minister will be aware of the considerable concern that Welsh ports such as Fishguard and Holyhead will be severely impacted by any delays to the introduction of the goods vehicle movement and smart freight systems. Could he tell the House what proportion of vehicles crossing the Irish sea from Wales to Ireland he expects to face disruption in the Government’s reasonable worst-case scenario?
Minister reply
Goods coming from Ireland to Wales should not face impediment because we are staging our processes in the way that I described. For goods going the other way, much depends on the determination made by EU member states about the processes they will apply, but we are working with the Welsh Assembly Government to invest in a facility near Holyhead in Anglesey, to ensure that transit and other procedures can facilitate the flow of traffic and trade.
Question
The people of Hyndburn and Haslingden voted overwhelmingly to leave the EU and for someone who would respect their decision, and yet they are still urging me to press the Government not to extend the transition period. Can my right hon. Friend confirm that the EU has accepted that we will not accept or seek an extension to the transition period and that, at the end of this year, we will deliver on our promise to the British people and regain our economic and political independence?
Minister reply
My hon. Friend makes absolutely the right point. The certainty of knowing that we will leave on that date and the publication of the information today will, I hope, help businesses to prepare with certainty for the end of the transition period.
Feryal Clark
Lab
Enfield North
Question
The Government have promised a shared prosperity fund to replace EU structural funding for regeneration and growth since 2017. Despite originally promising a consultation, we have not seen one. There have not even been any engagement events since the Prime Minister took office. When will the Minister publish the framework through which the shared prosperity fund will work, to keep it accountable and prevent pork barrel politics and bungs to target seats?
Minister reply
The hon. Lady makes an important point. The Secretary of State for Housing, Communities and Local Government will outline how the shared prosperity fund will be distributed. She is right: as a result of our departure from the European Union, we will have more money to spend on our priorities, and we will, of course, spend that money on what the Prime Minister has called the levelling-up agenda.
North Cotswolds
Question
The figures that my right hon. Friend has given today on business preparedness for 31 December are concerning. Is not the important advice that he has given that those businesses should either do the paperwork themselves or get an intermediary to do it on their behalf?
Minister reply
My hon. Friend is right. We want to help and support business. That is why we have provided the funding that we have. One reason for publishing the reasonable worst-case scenario today is to draw attention to the fact that, if we do not all work together, there will be disruption, but if we do work together, there are huge opportunities to be seized.
Kevin Brennan
Lab
Cardiff West
Question
Seven thousand HGV lorries parked end to end would stretch from this building to Dover—that is the scale of the problem that the Minister has set out. Where will the 29 extra lorry parks be? We need to know that. This is about Government preparedness. His statement seemed to be all about passing the blame on to business for the chaos being caused by his Government.
Minister reply
No. The hon. Gentleman, by emphasising that figure, is helping, because what we want is to avert that scenario. As I pointed out, it is not a prediction, but it is a warning. He is right that there is a responsibility on Government, which is why we have invested in the sites in Ebbsfleet and North Weald, Ashford, Warrington and the west midlands. Should we need to deal with specific areas of traffic management in Kent, steps have been taken with the Kent resilience forum to do just that. The reason for publishing the scenario today is to avert that happening. I hope he will work with businesses in his constituency to make sure they let Government know what more they need to be ready.
Alun Cairns
Con
Vale of Glamorgan
Question
The most senior Labour politician in office in the UK is the Welsh First Minister, and he has called for the transition period to be extended beyond the end of the year. Some people see that as a way of avoiding or delaying Brexit. I can advise my right hon. Friend that the Welsh people voted in greater numbers than the average across the UK to leave the European Union. Can he reassure me that the end of the year will be the end of the transition period?
Minister reply
My right hon. Friend makes an important point. The result across the United Kingdom—we voted as one United Kingdom—was clear, but it is true that support for leaving the European Union was very strong across Wales. I have great respect for the First Minister of Wales and we have worked well together in dealing with the covid pandemic, but I do think that my right hon. Friend is absolutely right. It would be sensible now for all politicians, rather than saying that the transition period should end later and creating that illusory prospect, to work together to prepare for 31 December.
Christine Jardine
Lib Dem
Edinburgh West
Question
The road haulage industry has been talked about a lot, and its workers have kept food on supermarket shelves and medicines in our pharmacies through the recent crisis. The statement says the Government have put aside £80 million for customs agents. How many agents do we have at the moment? How many will we need on 1 January? How many will this training provide on 1 January to ensure that the haulage industry can keep operating?
Minister reply
The hon. Lady is right. The haulage industry has been doing a fantastic job. I make no criticism of the industry or of individual hauliers—quite the opposite. Most of the work required will be required by the companies that are exporting rather than by the haulage industry, and it is they who will either hire customs intermediaries to do the work for them or, as my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown) pointed out, do that work in house. So some of the work is being done in house, some by major players and some by companies such as Kuehne+Nagel, which is expert in the area. The market is moving; the response we have had from some is that, particularly in the past couple of weeks, there has been significantly greater call for their services, and they are recruiting, but the £80 million we have has not been entirely drawn down yet, and we keep the amount we are providing under review to ensure that if more is needed, more can be provided.
Ben Everitt
Con
North Cornwall
Question
I am sure we are all aware that when we finally leave the transition period, at the end of the year, we will also be leaving behind the common agricultural policy, which has done such damage not only to agricultural economics but to our environment. Will my right hon. Friend detail how the replacement system we are preparing will be better for farmers, fairer, better for our agricultural economy and our environment, and support our target of net zero?
Minister reply
My hon. Friend makes an important point. As the Secretary of State for Environment, Food and Rural Affairs has pointed out, as we move away from the common agricultural policy, we move to a system where farmers can be supported with public money to provide public goods—for example, increasing the organic content of their soil or contributing to better and cleaner management of our waters—and, as the recent trade deal secured by my right hon. Friend the Secretary of State for International Trade shows, we have improved access for our superb produce to new markets.
Jim Shannon
DUP
Strangford
Question
I thank the Chancellor of the Duchy of Lancaster for his statement. Last Friday, I had the opportunity to meet Gordons pharmacy in Newtownards. As a type 2 diabetic, I declare an interest. Many are saying that insulin and other medications will not be able to be sourced post-Brexit. Will the right hon. Gentleman tell me what progress has been made to ensure that the supply of medicines from the EU to the UK, and then from GB mainland to Northern Ireland, will continue after the transition period ends?
Minister reply
The hon. Gentleman raises a very important consideration, because of the operation of the Northern Ireland protocol. I was discussing yesterday with a Minister of State at the Department of Health and Social Care, and officials in the Northern Ireland Office and other Departments, how we can make sure that the supply of medical goods continues uninterrupted to Northern Ireland. He is quite right that one of the single most important is insulin, because of the particular requirements that diabetics like him, and indeed my father, faces.
Mary Robinson
Lab
Cheadle
Question
I am grateful for the statement setting out the current position. During these uncertain times, it is vital that businesses have as much clarity as possible, especially the many businesses in Cheadle that rely on trade with the EU. In addition to the preparations my right hon. Friend outlined, we can give those businesses the certainty they deserve by agreeing a free trade deal with the EU this year. Can my right hon. Friend therefore reassure my constituents that the Government continue to work towards that prime objective?
Minister reply
Yes, absolutely. The Government are absolutely committed to securing a Canada-style free trade agreement. One of the difficulties we have had in the talks is that, as our negotiator David Frost pointed out, the European Union still has not come to grips with the fact that we will be a sovereign equal, not in the size of our economy but in our democratic mandate. There are, therefore, still one or two sticking points, because it is seeking to tie us to its rules rather than recognising that we will follow our own path. However, I am confident we can overcome those difficulties and secure a free trade agreement, which would be in everyone’s interests. Of course, many preparations that businesses are required to undertake are the same whether or not we have an FTA.
Stephen Farry
Alliance
East Antrim
Question
Businesses in Northern Ireland and elsewhere urgently need to see the detail of the border model between Great Britain and Northern Ireland. Previously, the Chancellor of the Duchy of Lancaster promised that that would be published by the end of July. It is desirable that we see the outcome of Joint Committee and future relationship negotiations, but they are not essential for that. Will he therefore give a revised commitment on when we will see that?
Minister reply
Yes. The hon. Gentleman makes a very good point. The Joint Committee should, God willing, meet next Monday in Brussels. I will be seeing Maroš Šefčovič then, as we seek to make progress on those matters. The hon. Gentleman will know that we made more than £200 million available through the trader support service and support for IT to help businesses in Northern Ireland. Even though it has been a subject of contention in this House, the provisions in the United Kingdom Internal Market Bill are there to make sure that Northern Ireland’s businesses do have a guarantee that, whatever happens, they will not be required to have export declarations when goods move from Northern Ireland to Great Britain, because the principle of unfettered access is so important.
Julie Marson
Con
Halesowen and Rowley Regis
Question
I welcome my right hon. Friend’s statement, in particular the extra £705 million for infrastructure at our border. Will he be able to update us a bit more on how the technological solutions are developing, such as the smart freight service, to facilitate movement across the borders?
Minister reply
I am very grateful to my hon. Friend for making that point. Yes, there are a number of systems. For example, I mentioned earlier IPAFFS, which is critical for those in the agrifood sector and has been developed for some time now. The smart freight system and the GVMS are being operated within Government at the moment, in consultation with business, and we hope they will go live so they are there for all to see in their ideal form in the course of the next few weeks.
Daniel Zeichner
Lab
Cambridge
Question
In just 100 days, all food exports to the EU will require an export health certificate and an authorised vet to sign it off. Do we have enough vets to do that? I understand that £80 million has been made available for the 50,000 custom agents required. Can we be told how much of the money has been drawn down and put in place? As a former IT person, may I ask the right hon. Gentleman if he is really confident that the IT systems will be in place and working?
Minister reply
Those are three very good points. On the question of vets yes, but there is a requirement on every part of the United Kingdom to play their part. For example, we have been talking to the Northern Ireland Executive about making sure that the specific need for vets and the new border control posts in Northern Ireland is satisfied. It is the case that there are vets and others who can carry out that job across the UK, but for example I hope, fingers crossed, that the Scottish Government have provided enough money to Aberdeenshire Council to make sure that those who provide export health certificates in the harbours of Fraserburgh and Peterhead are in place. I do not think that voters in either Fraserburgh or Peterhead would forgive the Scottish Government if they had not made that investment and had used the money elsewhere. I am sure they will not have done so.
On the point about IT, we are working hard, internally and with authoritative expertise, to make sure that those IT systems will work. I do not think any of us can make a confident prediction that everything will always be perfect, but some of the very best people in Government and in the private sector are committed to making them work.
Question
Would my right hon. Friend agree that, as we reach the end of the transition period, as well as seeking a positive future relationship with the European Union as a sovereign independent nation, we are well positioned to take advantage of new global opportunities? Will he join me in congratulating advanced ceramics research company Lucideon in my constituency, which is set to receive a £1 million boost as a result of the new Japan trade deal that the UK and Japan have agreed in principle?
Minister reply
I agree with my hon. Friend that that is unmitigated good news. The ceramics sector is well placed to take advantage of new international trade deals, and it could not have a more effective champion than my hon. Friend.
Mark Hendrick
Lab Co-op
Preston
Question
With the end of the transition period fast approaching and our borders with the EU woefully ill-prepared for the trading arrangements a no-deal Brexit will bring, may I ask the Minister how the £700 million he has announced will, over the three months he has available, enable us to recruit and retrain the hundreds of new customs officers required to carry out border checks? With so little time left to fully test, install and commission the smart infrastructure technology required to implement those checks, is this not just another example of what the whole of Brexit has been about—wishful thinking and self-deception, rather than accepting the reality on the ground?
Minister reply
The £705 million is being made available of course to ports. It will also help pay for inland infrastructure, but I should stress that much of that infrastructure will be required only when we ourselves are imposing checks, which will not come until next July.
Question
The people of Newcastle-under-Lyme voted very clearly to leave the European Union, but contrary to the wild claims from the SNP spokesman earlier, they are not seeking a no deal. They want a good, fair, constructive deal negotiated in good faith with the EU, but they do want this over and done with. Would the Minister join me and them in rejecting the calls from senior members of the Labour party, such as the Welsh First Minister and the Mayor of London, to extend the transition period? We cannot have that happen, because if it does happen, it will only lead to more uncertainty for business. We need to move on.
Minister reply
My hon. Friend makes an absolutely important point. We have set out a timetable, and sticking to that timetable will enable people, I hope, to take all the steps required.
Andrew Gwynne
Ind
Gorton and Denton
Question
I was listening very carefully to the Chancellor of the Duchy of Lancaster about business preparedness, not least because it is only three months to the end of the transition period. Businesses in the food and drink industry in my constituency would love to be able to be ready for Brexit, but there is no guidance yet about what labels businesses need to use to legally sell their goods in the EU and in Northern Ireland next year. When will the Government announce these measures, so that food and drink manufacturers are not held back from making the preparations they need to make?
Minister reply
The hon. Gentleman makes an important point. Some of that detail has already been published, but there is more that depends on the negotiations.
Desmond Swayne
Con
New Forest West
Question
The markets Bill does not break any law, does it?
Minister reply
This Government believe entirely in the rule of law.
Question
The UK Government fought an election and won a majority in this House on the basis that they had an oven-ready Brexit. In March last year, the right hon. Gentleman said: “We did not vote to leave without a deal”; now, we are staring down the barrel of a no-deal Brexit, the consequences of which will be magnified by the economic fallout from Brexit. What does the right hon. Gentleman say to those who voted for his Government on the basis that they had an oven-ready Brexit and now feel utterly betrayed?
Minister reply
I have not met anyone in that position. The truth is, of course, that we left on 31 January.
Question
I welcome my right hon. Friend’s statement. He will know that there are two important industries in the UK that begin with the letter F: one contributes £1.4 billion to the UK economy; the other contributes £132 billion and employs more than a million people. In his July statement, my right hon. Friend committed the UK to upholding international norms so that there is a free flow of capital and efficient markets. Is he convinced that he can still deliver those international norms so that there is delegation? Is he convinced that there will be equivalence for UK financial services in July 2021?
Minister reply
I am confident of that.
Justin Madders
Lab
Ellesmere Port and Bromborough
Question
I do not think we have had clarity in response to earlier questions as to how many customs agents are in place now. Will the Secretary State provide that figure? Will he also guarantee that when the time comes, any business that needs the services of a customs agent will be able to access one?
Minister reply
Customs agents are provided by the market.
Question
As we reach the end of the transition period and take back control, I welcome the Government’s United Kingdom Internal Market Bill. One issue that has been raised many times during the debates is the EU’s refusal to give us third country listing. Does my right hon. Friend agree that third country listing is vital to agreeing a deal with the European Union? Will he assure me that he will continue to push to make the EU take reasonable steps to make sure that it happens?
Minister reply
My hon. Friend is absolutely right.
Gareth Thomas
Lab Co-op
Harrow West
Question
Further to the question asked by the hon. Member for Wimbledon (Stephen Hammond), the Chancellor of the Duchy of Lancaster will know that financial services firms in the UK generate a huge number of jobs, a not insignificant number of which are held by my constituents. Will he tell the House exactly what progress has been made on the vital issue of achieving equivalence, and what remains to be sorted out?
Minister reply
The hon. Gentleman makes an important point.
Richard Holden
Con
Basildon and Billericay
Question
This Government were elected with an overwhelming mandate to get Brexit done. In fact, substantially in order to ensure that the 2016 vote was respected, constituencies such as mine and others across the blue wall returned Conservative MPs for the first time ever. Will my right hon. Friend confirm that, in order that to give businesses clarity and to respect the will of the people of North West Durham, there will be no extension to transition?
Minister reply
Yes.
Question
In the worst-case scenario that the Secretary of State outlined, on the basis of no employment Bill, which the Government had committed to, and the European Union looking to strengthen workers’ rights for zero-hours contract workers, agency workers and those workers susceptible to short-term shift changes, are the Government still committed to at least matching the employment protections of the European Union?
Minister reply
It is a good question from the hon. Gentleman.
Jacob Young
Lib Dem
Richmond Park
Question
I and many of my constituents want to see supertrawlers banned from destroying our marine wildlife and damaging our fishing towns, which is something that we cannot do while part of the EU. My right hon. Friend has long been committed to support our fisheries as we leave the EU, so will he confirm that after 31 December we will have the ability to stop foreign supertrawlers operating in our seas? At a time when our negotiations are at their fiercest, will he stand firm on our commitment to take back control of our waters?
Minister reply
My hon. Friend is absolutely right that one of the benefits of departing from the EU is that we can safeguard our marine environment from predators, and we will take all steps necessary to do so.
Carla Lockhart
DUP
Upper Bann
Question
Seven thousand truck long queues in Kent and two-day delays to trade would be disastrous for UK businesses, but so too would any delays and queues as a consequence of checks imposed within the UK as a result of the repugnant Northern Ireland protocol. What assurances will the right hon. Gentleman give me and businesses in Northern Ireland that no such delays will feature at Larne? Will he give an assurance to meet me and the major agrifood sector businesses in the not-too-distant future?
Minister reply
I am grateful to the hon. Lady for raising that and for the opportunity I had to visit Ulster Carpets in her constituency over the summer. The Government are committed to ensuring that the Northern Ireland protocol operates in such a way as not in any way to disadvantage Northern Ireland’s agrifood businesses. I would be delighted to meet them with her.
Edward Leigh
Con
Gainsborough
Question
Despite all the scare stories, surely there is no bar to a deal. We will surely not undercut the EU on state aid—we will not return to picking winners and all that rubbish—and with the regulation of business, we will not create a bargain-basement economy or produce rust buckets like the Morris Minor I drove to university with a hole in the floor in 1968. Breaking news just now, however, is that if the deal is conducted late, there might be not indeed an extension of the transition period, but a two-year implementation period. I want now an absolute commitment from the Secretary of State: no extension to transition and no implementation period. We want a clean break, as we promised the electorate, at the end of this year.
Minister reply
Everything my right hon. Friend said I completely agreed with, apart from one thing—I cannot believe that he went to university in 1968. He looks much younger than that.
Chi Onwurah
Lab
Newcastle upon Tyne Central and West
Question
This morning I met the North East England chamber of commerce and local businesses. We discussed the massive investment in technology and digital skills required by the pandemic to move processes, services and products online. Now we have another transition to face, so will the Minister list each IT system with which a business will have to interface, and when it will be available to be tested by them so that they can begin the process of preparedness?
Minister reply
The border operating model, which we published earlier, outlines the IT systems—
Question
Does the Chancellor of the Duchy of Lancaster accept that although the worst-case scenario situation of 7,000 queuing lorries would be intolerable for people in Kent and my constituency, even only half that number would require the closure of the coast-bound M20? Will he assure us that he will do all he can to ensure that that is not the reality that people are confronted with next year?
Minister reply
My hon. Friend makes a very good point. It is precisely because we want to avoid that scenario that we are sharing it today in order that Government can be held to account for doing everything possible to avoid it, and so that we can work with business in order to avoid it. We have to be ready for the worst, which is why we have taken appropriate contingency plans. In order to avert that scenario, we want to work with him and those in his constituency, and businesses everywhere, to ensure that we can be ready. Eurotunnel, in his constituency, has been brilliant in the support that it has been giving to the business sector as well.
Question
How much does my right hon. Friend think the EU will lose in the event of no deal? Is not this figure not helped by senior Labour politicians suggesting that we might extend the transition period?
Minister reply
My hon. Friend is absolutely correct that no deal is in nobody’s interests. The fact that the First Minister of Wales or the Mayor of London are holding out the prospect of an extension to the transition period does not contribute to the concentration of minds and—to be fair to the hon. Member for Leeds West (Rachel Reeves)—the productive work required in order to secure a deal.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Question
The London School of Economics estimates that a no-deal Brexit could lead to a 63% decrease in exports to the European Union. For the salmon farmers, the crofters producing lamb and the shellfishermen in my constituency, that could be absolutely ruinous. What comfort can the Chancellor of the Duchy of Lancaster give to the people in my constituency whose livelihoods depend on that export market?
Minister reply
The right hon. Gentleman makes an important point. One of the things that the Government have always stressed is that in the event of a no-deal exit, the sectors that would be most adversely affected by tariffs would be in the agriculture sector, with red meat producers particularly hard hit. That is why we are anxious to avoid that outcome and to secure a deal. Come what may, there will be new processes, but also new markets, for producers in Orkney and Shetland. I will work with him to make sure that, in whatever eventuality, we support the high-quality producers in his constituency.
Question
My right hon. Friend will know that I share his vivacious optimism about Britain’s future as an independent sovereign trading nation, but the farmers of Teesdale and Weardale are understandably concerned about what happens if we get to the end of the year without an agreement. Will he reassure the House and my constituents that all is being done by our negotiators to reach that deal? Does he agree, in terms of the future of Britain’s trading policy, that our independence as a trading nation will provide great opportunities for our agricultural sector?
Minister reply
I am grateful to my hon. Friend for attributing to me vivacity as well as optimism. I am certainly optimistic, but it is Conservative Members who were elected in the 2019 general election who provide the vivacity, including herself. She is absolutely right to raise the concerns of farmers in Teesdale and Weardale, and indeed across the north-east. As I mentioned in response to the previous question, it is red meat producers who, in the event of no deal, will most need our support, but it is also red meat producers, particularly lamb exporters and sheep farmers, who have a great deal to gain. One of the biggest consumers of lamb and sheep meat in the world is the US. At the moment, our access to the US market is restricted. It is one of many markets, including markets in the far east and the middle east, to which we could have access. My hon. Friend’s advocacy on behalf of the farming sector and on behalf of free trade shows the way to future prosperity for the constituents she serves so well.
Shadow Comment
Rachel Reeves
Shadow Comment
The shadow response by Rachel Reeves criticised the Government for their lack of readiness, citing potential disruptions such as tailbacks of up to 7,000 HGVs in Kent if businesses are not adequately prepared. She questioned why essential prerequisites for a smooth transition were not already implemented and expressed concerns over delays in constructing lorry parks and insufficient customs agents trained and in place. Additionally, she highlighted the £7 billion additional bureaucracy cost for UK businesses and demanded assurances on the readiness of 10 new IT systems necessary for trading with the EU.
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