Trade Bill — House of Lords, 2020-12-15
Topic: Foreign Trade
Nicholas Trench (Crossbench, Unknown): My Lords, in the Chamber at least: take two I am grateful to the noble Lord, Lord Fox, for tabling this amendment, which I support. We do not yet know whether we are going to get a deal with the EU or what exactly the deal will look like if we do. What we can say is that a no deal on services will be a no deal for the country, irrespective of whether or not we get a deal. The Government and the media have consistently underestimated the importance of service industries both to this country and as part of our trade with Europe. Services are 80% of our GDP, a statistic we have repeated many times in this House. Our services trade with Europe makes up 51% of our services exports. As it stands, Europe is a hugely important market for services—the most important. Because of the significance of geography to service industries, it is one that is frankly irreplaceable Services have not been ignored in all quarters. In an interview with the Observer on November 1 before stepping down as director-general of the CBI, Carolyn Fairbairn said that her "really big disappointment" was the lack of help for services in the potential deal. The recent report by the EU Services Sub-Committee, The Future UK-EU Relationship on Professional and Business Services, raises similar concerns—not least those shown by the creative industries. The amendment moved by the noble Lord, Lord Fox, does not specify precisely what the mobility framework should look like. The so-called mobility arrangement that Liz Truss has just signed with Switzerland agrees 90 days’ visa-free work a year. If this a sign of what is to come for EU countries, it will still not be enough on its own for much of the sector—which demands longer stays and ease of movement between European countries. This will be particularly so for the performing arts, IT and the holiday industry, for instance. Can the Minister supply more details of this arrangement and how it will affect those industries In the meantime, it is no wonder that potential clients across many sectors in Europe are now advertising for those who have European passports, while those with only British passports are expressly excluded in such advertisements. This is now the norm, as clients and so much of the sector see British workers as too much trouble and red tape if they are not to be allowed the necessary physical mobility these industries demand. If this is to be the case it will be a tragedy for our service industries. The bare fact is that without a meaningful mobility framework many will lose their livelihoods and others significant job opportunities There are allied concerns, some of which the noble Lord, Lord Fox, referred to. It is essential that there is a data adequacy agreement and mutual recognition of professional qualifications. For many, there are concerns about costs. According to the Incorporated Society of Musicians, in normal times over 20% of British musicians travel to Europe at least 11 times a year. The ISM has also calculated that in a worst-case scenario, musicians who carry instruments abroad may incur additional costs of £1,000 a year. Like many who work in services, most musicians are self-employed. Such costs would need to be borne personally, which for many may prove simply too prohibitive The creative industries are hugely important financially, and in terms of cultural exchange and soft power. Coming on top of the effect of Covid, all of this will be threatened without a mobility framework in Europe. Moreover, these industries, along with the rest of the services sector, are as much in the dark about a potential deal now, with 16 days to go, as they were four years ago. As I said in Committee, many in the sector are crying out that even now they lack real guidance The Government and the Opposition will note that the amendment from the noble Lord, Lord Fox, cuts to the heart of things and is a more focused version of the one he moved in Committee. Purely and simply, it asks for a mobility framework on services. At the same time, manufacturing will also be affected without such a framework because of the importance of servitisation —including maintenance and repair of goods—to those industries, and to which the noble Lord, Lord Fox, referred We know that deals that would have allowed better access to the single market will have been offered to the UK. We have also heard what the former Australian Prime Minister, Malcolm Turnbull, had to say on an Australian-style deal on WTO terms, with "a lot of friction in the system in terms of services"— surely an understatement. It is essential that a framework for services between the UK and the EU is put in place.