PARLIAMENTARY DEBATE
Manufacturing Industry - 26 January 2017 (Commons/Commons Chamber)

Debate Detail

Contributions from Mr Toby Perkins, are highlighted with a yellow border.
Lab
Toby Perkins
Chesterfield
8. What assessment he has made of the potential effect on the manufacturing industry of the UK leaving the EU single market.
  10:03:43
Mr David Jones
The Minister of State, Department for Exiting the European Union
The Department has been undertaking a thorough analysis of more than 50 business sectors. We have been speaking directly to manufacturers in, for instance, the automotive and chemical sectors in order to understand what they need from us so that they can continue to thrive after we have left the European Union.
  10:04:09
Toby Perkins
I am glad to hear that that work is being done. Has the Minister established how many British manufacturing factories are in competition internally with other factories in France and Germany? Does he realise how catastrophic it would be for our manufacturing industry if there were tariffs on products made in the UK that factories in France and Germany did not have?
Mr Jones
The hon. Gentleman is entirely right. Manufacturing industries are frequently highly integrated across the European Union, and the Prime Minister has made it clear that she seeks customs arrangements that will cater for that. We must bear in mind, however, that when we have left the European Union, the United Kingdom will be the biggest export market for the continuing EU, and it is therefore in our mutual interest to have proper customs arrangements.
Con
  10:04:31
Mr Philip Hollobone
Kettering
Can my right hon. Friend confirm to manufacturers in Kettering that their prospects for future exports are far brighter outside the European Union because while we are a member, we are forbidden from entering international trade agreements of our own?
  10:05:07
Mr Jones
My hon. Friend is right to point that out. Once we have left the European Union, we will be in a position to strike free trade agreements around the world, which is precisely what the Department for International Trade is doing right now.
DUP
  10:05:26
Jim Shannon
Strangford
The agri-food manufacturing sector in Northern Ireland accounts for some 70,000 jobs and 3.25% of Northern Ireland’s gross value added, which equates to £1.1 billion at basic prices. Will the Minister outline what protection he intends to provide for this massive employer, and what support and advice has been offered in the interim?
  10:05:50
Mr Jones
The hon. Gentleman is right to point out the importance of the agri-food sector not only in Northern Ireland, but throughout the United Kingdom. We have engaged very closely with bodies such as the Food and Drink Federation. There are specific circumstances in Northern Ireland, and he will know that the Government are committed to ensuring that there is as little impact as possible on the sector in Northern Ireland.
Con
  10:06:15
Michael Fabricant
Lichfield
Is my right hon. Friend aware that both Nissan and Jaguar Land Rover are planning for how their export market might well change if we have free trade agreements with India, China and the United States? Does he agree that they are right to say that this is an opportunity for manufacturing, not a disadvantage?
  10:06:28
Mr Jones
My hon. Friend is entirely right. Rather than talking down British manufacturing industry, we have a duty to point out the benefits that will flow from Brexit. There is a world out there and we should be seizing the opportunities.
SNP
  10:06:44
Hannah Bardell
Livingston
My constituency was built on manufacturing and many Livingston companies rely on EU workers. What can the Minister do to assure me, the companies in my constituency and those workers that they will be able to stay and work in Livingston and Scotland?
Mr Jones
The issue of EU residents in the UK—and, similarly, the issue of British residents in the continuing European Union—is one that we believe should be settled very early in the negotiations. I can tell the hon. Lady that I have already discussed this issue with ministerial counterparts, and they agree that it is a priority.

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