PARLIAMENTARY DEBATE
Customs Arrangements - 25 October 2018 (Commons/Commons Chamber)

I have regular discussions in Cabinet, led by the Prime Minister, on all aspects of our future economic partnership with the EU, which of course includes the customs arrangements.

How is the Secretary of State going to persuade the hardliners on the Conservative Benches behind him about the benefits of a customs union for jobs and for defending the United Kingdom?

We made a clear commitment that we will be leaving the customs union, so I do not think it is a question in the way the hon. Gentleman has described. Our White Paper proposals are designed to secure frictionless trade at the border, which is important for all businesses, particularly the UK’s just-in-time manufacturers.

Will the Secretary of State tell us what discussions he has had with the Secretary of State for Scotland about the incompatible arguments that the Republic of Ireland and Northern Ireland can have different customs and trading arrangements but have no border, but Scotland and England would require a border if Scotland were independent? Is the Brexit that the Government are pursuing not just giving more succour to the nationalists?

The hon. Gentleman is right to raise that issue. I have regular discussions with all my Cabinet colleagues, and we are clear that we will not allow any proposals to be accepted by the EU that would threaten the territorial, constitutional or economic integrity of the United Kingdom, and that means the whole of the United Kingdom.

We have regular discussions with our EU counterparts about all aspects of the relationship, and we are making good progress. Of course, I cannot give the full details or provide the reassurance that my hon. Friend and others would want until we have the full deal, because there is no deal until we have the whole deal.

The withdrawal agreement makes provision to bind us into paying an exit payment of £39 billion. What provisions are there to ensure that the future trade agreement, which will only be in the form of a political statement, will actually get delivered and that we will not find ourselves paying the £39 billion without locking in the future trade arrangements in return?

I thank my hon. Friend for that question. I know that he and other hon. Members are concerned about that. We need a package in place that not only deals with the separation issues and the money in the way that he described, but has a clear path and a clear commitment to put the future relationship into effect.

It has been reported that, in the event of a no-deal Brexit and chaos at the Channel ports, the Government will need to charter additional vessels to bring in food and medicine. What is the assessment of cost for both the Government and industry? What capacity is there in alternative ports to do that?

The hon. Gentleman raises an important point. Of course, any blockage at the border ought to be addressed with pragmatism on both sides to alleviate it, but we must ensure that we are in a position, regardless of what the EU, the French or any other EU member state does, to weather any short-term disruption. We will ensure not only that we have the money and investment in place, but that we are co-operating with businesses and port authorities not just in the UK, but in Belgium, the Netherlands and other parts of the EU.