EU Membership (Audit of Costs and Benefits) Bill — House of Commons, 2016-02-26
Topic: Foreign Trade
Tobias Martin Ellwood (Conservative, Centre-right): The Prime Minister returned from the European Council having managed to secure the changes necessary for him and the Government to confirm the position that a reformed European Union is in the interests of British membership. From that perspective, there is a collective responsibility to support it. The reason for the change is the unique situation of having the vote. It is absolutely the case that individual Ministers can dissent, but people cannot pick and mix—they cannot take out a slice and say, "I don’t agree with that", because that would make a mockery of participation and involvement in the European Union I was going to wait until the part of my speech dealing in detail with the timetable before I answered the question on purdah, but because of the lack of time, I am pleased to confirm that it will begin 28 days before the vote. I hope that helps my hon. Friend the Member for Gainsborough Several hon. Members have discussed VAT on sanitary goods. In our view, EU member states should have the flexibility to apply a zero rate of VAT to sanitary products. The Financial Secretary to the Treasury has written to the European Commission and other member states setting out the Government’s view that EU member states should have full discretion over the rate of VAT they should apply. The Financial Secretary has been informed by the Commission that its action plan may put forward options to allow member states greater flexibility in the application of the reduced and zero rates of VAT. I am sure that he will make more statements on this in due course We have touched on the trade deficit, which is an important issue. The Office for National Statistics’ "Pink Book" with data for 2015 and 2014 confirms that UK total exports to the 28 nations of the EU were £229 billion, and UK imports from the 28 states were £291 billion. The UK’s trade deficit with the EU 28 was therefore £62 billion. However, it would be disingenuous to use that figure on its own because of the difference between goods and services, of which hon. Members will be aware. We are far stronger in the services aspect. With the reforms that are coming through, that is where the single market is likely to grow in future, and where we are likely to be in surplus rather than in deficit. It is very important to recognise the opportunities for Britain in remaining in the European Union as a result of that Passports have been mentioned. My hon. Friend the Member for Shipley talked about what happens when an individual from the European Union enters our borders and has their passport swiped. There is a watch list system used by Home Office staff for the purposes of border and national security, and the detection and prevention of crime. During business as usual, 100% of passengers arriving in the UK have their identity documents scanned against the watchlist, so somebody on it will be identified and can be detained if need be. The Government’s strategic objective to enhance border security and militate against organised criminality and terrorism risks has led to a requirement to check arriving passengers against the Schengen information system at the border. This is another great example of "what if?" If we were to depart from the European Union, would we have to renegotiate ourselves back into the ability to use SIS II, as it is called?