Exiting the European Union and Global Trade — House of Commons, 2017-07-06
Topic: Foreign Trade
Adrian Edward Bailey (Labour, Centre-left): It is a pleasure to follow the right hon. Member for Wantage (Mr Vaizey), as, perhaps unusually, I agreed with almost everything he said. It is a year since the referendum and three months or so since we triggered article 50. We wasted two months on a general election that has left the Prime Minister enfeebled and the Front-Bench team confused. The impact on our economy is potentially hugely serious, and we are running out of time. The public services are in crisis. We need the sort of confident direction that is necessary to attract investment in our economy, to enable growth and the taxation receipts necessary to bolster our services When I participated in the EU referendum debate a year ago, one argument I heard regularly was, "Because of the trading imbalance between us and the EU, they need us more than we need them so they are going to be very favourably inclined to a generous settlement." I have heard similar sentiments reiterated in today’s debate. If that is the case, I cannot understand why there is a problem with saying that we want to remain part of the single market and the customs union, and we will go for a transitional arrangement until we get it. Somehow we do not seem to be getting that from Ministers, but that it is what is needed to give investors the confidence to invest in our country I make it clear that I have a constituency interest: there are more foundries in my constituency than in any other in the country. They are tied into the manufacturing supply chain, particularly that of the car industry. The future welfare of that industry is essential for the future jobs and employment prospects of my constituents. We must be clear about the role the car industry plays in the national economy: 77% of cars manufactured in Britain are exported, 56% of them to Europe. Our overall trading statistics by value show that the contribution of the car industry is huge and significant. It is no coincidence that what I articulated as our objectives earlier are exactly what the Society of Motor Manufacturers and Traders wants This idea that no deal is better than a bad deal and that we can fall back on World Trade Organisation tariffs is nonsense. That would add 10% to car prices, and 2.5% to 4.5% for parts. Given the to-ing and fro-ing of car parts in the supply chain in the industry, the potential cost is £2.6 billion for imports and £1.86 billion for exports. The cost of an average car could increase by £1,500 The Government’s mixed messaging and hostile rhetoric has caused damage. In business questions, my hon. Friend the Member for Bridgend (Mrs Moon) mentioned recent figures on investment in the car industry, which has dropped from £2.56 billion in 2015 to only £322 million in the first half of this year. That is hugely significant for the future of a manufacturing industry that is crucial for our export performance In the time I have left, I wish to comment on the approach and potential of some of the alternative scenarios I have heard outlined. To be clear: I am as in favour of trading with other countries as anybody is. Implicit in a lot of the arguments I have heard is that the EU is somehow a barrier to our having good trading relations with other countries.