Commons statement on EU Exit: Negotiations and the Joint Committee - Oct 19

The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)

With your permission, Mr Speaker, I would like to update the House on the Government’s negotiations with the European Union on our future trading relationship and also the work of the UK/EU Joint Committee established under the withdrawal agreement.

First, on the talks on the new trade agreement, we had hoped to conclude a Canada-style free trade agreement before the transition period ends on 31 December this year but, as things stand, that will not now happen. We remain absolutely committed to securing a Canada-style FTA, but there does need to be a fundamental change in approach from the EU if the process is to get back on track. I have come to the House at the first available opportunity to explain why and how we have reached this point.

We have been clear since the summer that we saw 15 October—last Thursday—as the target date for reaching an agreement with the EU. The Prime Minister and the Commission President Ursula von der Leyen agreed on 3 October that our negotiating team should work intensively to bridge the remaining gaps between us, and we made clear that we were willing to talk every day. But I have to report to the House that this intensification was not forthcoming. The EU was willing to conduct negotiations only on fewer than half the days available and would not engage on all of the outstanding issues. Moreover, the EU refused to discuss legal texts in any area, as it has done since the summer. Indeed, it is almost incredible to our negotiators that we have reached this point in the negotiations without any common legal texts of any kind.

On 15 October, the EU Heads of State and Government gathered for the European Council. The conclusions of that Council reaffirmed the EU’s original negotiating mandate. They dropped a reference to intensive talks that had been in the draft and they declared that all—all—future moves in the negotiation had to be made by the UK. Although some attempts were made to soften that message by some EU leaders, the European Council reaffirmed those conclusions as authoritative on Friday. That unfortunate sequence of events has, in effect, ended the trade negotiations because it leaves no basis on which we can actually find agreement. There is no point in negotiations proceeding as long as the EU sticks with that position. Such talks would be meaningless and would take us no nearer to finding a workable solution.

That is the situation we now face, and that is why the Prime Minister had to make it clear on 16 October that the EU had refused to negotiate seriously for much of the past month or so. The EU had now, at the European Council, explicitly ruled out a free trade agreement with us, like the one that it has with Canada, and therefore this country should get ready for 1 January 2021 with arrangements that are more like Australia’s, based on simple principles of global free trade.

Now, if the EU wants to change that situation—and I devoutly hope it will—it needs to make a fundamental change in its approach and make clear it has done so. It has to be serious about talking intensively on all issues and trying to reach a conclusion, and I hope it will. But it also needs to accept that it is dealing with an independent and sovereign country now. We have tried to be clear from the start that we would not be able to reach an agreement inconsistent with that status. I do not think that we could be accused of keeping that a secret. Yet the proposals that the EU has discussed with us in recent weeks, which it presents as compromises, are simply not consistent with our new sovereign status—certainly not yet.

While I do not doubt that many on the EU side are well intentioned, we cannot accept the negotiators’ proposals that would require us to provide full, permanent access to our fishing waters, with quotas substantially unchanged to those that were imposed by EU membership. We cannot operate a state aid system which is essentially the same as the EU’s, with great discretion given to the EU to retaliate against us if it thought that we were deviating from it. More broadly, we cannot accept an arrangement that means that we stay in step with laws that have been proposed and adopted by the EU across areas of critical national importance.

In a nutshell, we have been asking for no more than what has been offered in trade agreements to other global trading countries, such as Canada—terms that, of course, the EU said last year it had no difficulty offering to us. We are not even asking for special favours reflecting our 45 years as a member state—during which we paid in every day more than we took out—quite the reverse. But even if this new arrangement is impossible for the EU, I must inform the House that we will be leaving on 31 December on Australian-style terms and trading on the basis of WTO rules.

With just 10 weeks left until the end of the transition period, I have to emphasise that that is not my preferred outcome and nor is it the Prime Minister’s. We recognise that there will be some turbulence, but we have not come so far to falter now, when we are so close to reclaiming our sovereignty. We have to be in control of our own borders and our fishing grounds. We have to set our own laws. We have to be free to thrive as an independent free trading nation, embracing the freedoms that flow as a result. So it is important that I turn to the preparations that we are now intensifying for the end of the transition period. These apply whether we have a free trade agreement or otherwise, of course.

I am not blithe or blasé about the challenges ahead, particularly given the additional problems that we have dealing with the covid-19 pandemic. However, leaving the EU on Australian terms is an outcome for which we are increasingly well prepared. Ever since the UK decided it would leave the single market and the customs union on 31 December, Government and businesses alike have been working hard to prepare for the new procedures that were the inevitable result. I congratulate businesses on the resourcefulness they have shown so far. We want to work with them so that they continue responding as energetically, flexibly and imaginatively as possible to the challenges of change. We also want to work with them to prepare for the opportunities ahead, including those stemming from our new free trade deals, such as the agreement with Japan struck by the Secretary of State for International Trade, which, of course, grants us far more favourable access to the world’s third biggest economy than we had as an EU member.

I would like to put on record my particular thanks to the road haulage industry, customs intermediaries and others for their constructive engagement with Government, including at our extensive roundtable last week.

This week, the Prime Minister and I will be speaking again to business leaders to discuss preparations for life outside the EU. We will continue to listen to their concerns, and we will redouble our efforts to help them to adjust and prosper. The XO Cabinet Committee—the EU Exit Operations Committee—meets daily and will intensify its operational focus on business readiness. We continue to work closely with our partners in the devolved Administrations because we want to ensure that every part of the UK is ready for the end of the transition period.

In these final 10 weeks, we are intensifying our public information campaign. Every firm will find the information it needs on new rules which govern trade between Britain and the EU at gov.uk/transition. Today, HMRC is writing to 200,000 traders that do business with the EU to reinforce their understanding of the new customs and tax rules. We are also putting in place IT systems to help goods flow across borders. We are giving business access to customs professionals to help with new ways of working and we have also planned how to fast-track vital goods in the first few weeks to get around EU bureaucracies. We have already published and indeed updated our border operating model. We have announced £705 million-worth of investment in jobs, infrastructure and technology at the border. We have also strengthened our maritime security to protect our fishing fleets and safeguard our seas.

In addition to the steps we are taking, we are also continuing our work with the EU in the Withdrawal Agreement Joint Committee. I would like to update the House on its latest meeting, which took place earlier this morning. Coming only three weeks after the last meeting, I am pleased to report that in this forum the approach from the EU is very constructive. There is a clear imperative on both sides to find solutions and we remain committed to working collaboratively with the EU through the Joint Committee process.

At our last meeting in Brussels I agreed with my co-chair, Vice-President Šefčovič, that we would intensify discussions to implement the withdrawal agreement, primarily around citizens’ rights and the Northern Ireland protocol. Our officials have since held numerous sessions and today in London I reiterated the UK’s commitment to upholding all our obligations under both the withdrawal agreement and the Belfast agreement. We agreed that we will publish a joint update on citizens’ rights and I am pleased to confirm that almost 4 million EU citizens in the UK have now received status under our scheme. We have also discussed our work to implement the Northern Ireland protocol. We are taking steps to implement new agrifood arrangements. We also acknowledge the EU’s concerns about appropriate monitoring of implementation. We now have a better understanding of its requests and the reasoning behind them. We have confirmed that the specialised committee will work intensively to ensure that we can make progress in this area, and with respect to Gibraltar and the sovereign base issues.

A lot remains to be resolved before the end of December, but we have made substantial progress on implementation. I look forward to further engagement with Vice-President Šefčovič in the weeks ahead. I want to put on record my personal appreciation for the constructive tone and the pragmatic spirit with which he and his team have approached our discussions.

In his statement on Friday, the Prime Minister looked ahead to 2021 as a year of recovery and renewal when this Government will be focused on tackling covid-19 and building back better. We are getting ready to do now what the British people asked of us: to forge our own path and not to acquiesce to anyone else’s agenda. On the negotiations, our door is not closed. It remains ajar, and I very much hope that the EU will fundamentally change its position, but, come what may, on 31 December, we will take back control. I commend this statement to the House.

3.45 pm

Rachel Reeves (Leeds West) (Lab)

I thank the Minister for advance sight of his statement this afternoon.

At the last general election, the Prime Minister said that he had an oven-ready deal ready to go. The withdrawal agreement was the starter course, but we are still waiting for the main meal: a trade agreement with the European Union. At the weekend, the right hon. Gentleman was reminded of some of his previous remarks in 2016 when he assured the country that the one thing that will not change is our ability to trade freely with Europe. Even at this late stage, Labour expects the Government to reach an agreement with the European Union that honours that commitment. It is a question of competence and it is a question of trust; it is what this Government promised the British people.

Of course we were supposed to have a deal by now. This is the third deadline that the Prime Minister has set himself, and it is the third deadline that the Prime Minister has missed. Initially, he said that a deal with the EU would be sorted by July. Then he said by September, and then he said by last week. Will the right hon. Gentleman explain to the House why the Government find it so hard to meet their own deadlines and so hard to achieve their own promises?

Yesterday, when the Minister toured the television studios, he was asked what the chances were now of securing a deal, and he said it was less than two thirds. Can he tell businesses and this House the current probability, given that he has just said that events have, in effect, ended the trade negotiations? Over the past three days, we have heard more posturing than solutions, more excuses and explanations. It is time for the Government to take responsibility.

Of course everyone needs to prepare as best they can, but it is a bit rich for the Government to lecture businesses on getting ready when the Government cannot even tell them what they are getting ready for. Let us be clear: if the talks have run out of road, many industries will face prohibitive tariffs—from 10% for exporting cars to at least 40% for exporting lamb—to Britain’s biggest market in just 10 weeks’ time. I ask again: is that what the Government want businesses to get ready for, and is it even possible for those businesses to do business on those terms?

The Minister will recall that I raised the concerns of the car manufacturing industry on 1 October at Cabinet Office questions and the possibility of tariffs, and also on rules of origin. He agreed to meet the automotive industry and trade unions. The Society of Motor Manufacturers and Traders and Unite followed up with a joint letter on the same day—1 October. However, I am now informed that, 18 days later, that letter has not been replied to and that meeting has not happened. At what point did the British Government give up on British industry, and when will the Minister be meeting those businesses? It is all well and good to say prepare, but he cannot even be bothered to get round a table with them. I ask again: what are they supposed to be preparing for and what support are the Government giving them?

In his statement today, the Minister thanked the road haulage industry for its efforts, but you will also remember, Mr Speaker, that, at Cabinet Office questions, he said that the road haulage industry had been far from constructive, so I welcome the thanks that he gave them today. Earlier this month, I was with a haulage firm in Hull with my hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy). It was a fantastic business, established more than 100 years ago, yet it does not know how many of its fleet of lorries will be able to operate in the EU come 1 January. How are they supposed to prepare for that?

Ministers have blithely referred to leaving with no trade deal as trading on “Australian terms”. This morning, the Business Secretary was pressed on the difference between an Australian deal and leaving with no deal, and he admitted that it was “semantics”—semantics! They can call it no deal. They can call it an Australia-style deal. They can call it a Narnia deal, as far as I am concerned, but let us be honest about what that means and how damaging it is for this country. [Interruption.] Someone says from a sedentary position that it is not damaging—10% tariffs on British cars being exported to the European Union is damage; 40% tariffs on lamb being exported to the European Union is damage. If any Member wants to stand up and tell their constituents, British industry and British farming that that is not damaging, they can be my guest, but it is not the truth.

The Prime Minister promised that the UK would “prosper mightily” without a trade deal with the EU. Given that confidence, will the Government publish their full economic impact assessment of the implications if no trade deal is achieved, broken down by industry and by the regions and nations of our United Kingdom? That may at least help us to understand what we are supposed to be planning for.

While the Government lecture businesses about being match-fit, their own preparations are badly off pace. In late July, the Government announced £50 million of funding for customs intermediaries. Could the Minister update the House on how much of that fund businesses have drawn down and give us the latest figures for the number of customs agents trained up to be ready for 1 January? The Government have given authorisation for a number of lorry parks, so how many of these “inland border facilities”, as the Minister likes to call them, have had work started on them, and how many are now completed? Can he list how many of the IT systems needed are on track and whether the crucial goods vehicle movement system has been tested with all haulage businesses? He mentioned business preparedness. What is happening in terms of security and data sharing?

This Government must deliver a deal that provides guarantees and safeguards on workers’ rights, environmental standards and animal welfare, protects jobs and does nothing to jeopardise the Good Friday agreement. That was all promised last year. Time is short, so my message to the Government is blunt: stop posturing, start negotiating and deliver the deal that you promised to the British people.

Michael Gove

I am grateful to the hon. Lady for her questions. With respect to an oven-ready deal, the withdrawal agreement was concluded happily and voted on by the House of Commons, so we had a deal—a deal which many on the Labour Benches opposed, but a deal which means that our destiny is certain and that we are fulfilling the wishes of the British people. In the same way as 52% of the population of the United Kingdom and 53% of the population of Leeds West—her constituency—voted to leave, we will leave. We are honouring our commitment to the British people.

The hon. Lady was kind enough to refer to some of the past statements I have made that were quoted on the television briefly at the weekend. I have to say—and this is no reflection on her—that if she is going to talk about past statements, she had better clear that with the Leader of the Opposition, who in the past has favoured EU membership, then said he would accept the referendum result, then said that we needed a second referendum in order to satisfy the first, then said that we should have an extension of our membership of the European Union and the transition period, and is now silent on all those questions.

Mr Speaker

Order. This is a statement on Government policy, not the policy of the Opposition.

Michael Gove

I was merely pointing out, Mr Speaker, that we had an oven-ready deal, and from Labour we had an indigestible dog’s breakfast and a Leader of the Opposition who will not eat his words.

The hon. Lady asked about the various deadlines. Those are deadlines that the UK Government have set but that the EU has not met. In any negotiation, both sides have to honour their commitments. As I pointed out in my statement—and she did not, of course, acknowledge this—we were available to talk every day in the weeks preceding the European Council, and the European Union was not. But our firmness on this proposition is now bearing fruit. As we were exchanging thoughts across the Dispatch Box earlier, my colleague David Frost was in conversation with Michel Barnier. I now believe it is the case that Michel Barnier has agreed both to the intensification of talks and to working on legal texts—a reflection of the strength and resolution that our Prime Minister showed, in stark contrast with the approach that the Opposition have often enjoined us to take, of simply accepting what the EU wants at every stage.

The hon. Lady asked about preparation. It is absolutely right to say that we should talk to the automotive sector. That is why, as I pointed out in my statement, the Prime Minister has a business roundtable tomorrow with business representative organisations. She also asked about inland sites. I can confirm that we will have two inland sites at Ashford—Sevington and Waterbook—and one at Ebbsfleet, one at Thames Gateway, one at North Weald, one at Birmingham, one at Warrington, one at Holyhead, one in south Wales and another at White Cliffs in Dover. All those sites will bring extra jobs and investment to the UK as we forge a confident path ahead.

Mrs Theresa May (Maidenhead) (Con)

I thank my right hon. Friend for his statement. The Government appear resigned to the prospect of no deal, yet one area in which they should not be resigned to the prospect of no deal is security. I note that my right hon. Friend made no mention of security in his statement this afternoon, and the Prime Minister made no reference to security in his letter to parliamentarians on 16 October. Will my right hon. Friend confirm that, if the UK walks away with no deal, then our police and other law enforcement agencies will no longer have the necessary access to databases such as PNR—passenger name records—to be able to continue to identify and catch criminals and potential terrorists in order to keep us safe?

Michael Gove

My right hon. Friend makes a very important point about security. I would say three things. The first thing to say is that significant progress has been made in respect of security co-operation, but it is the case that the EU is insisting that, before we have access to systems such as the Schengen information system II, that we have to accept the jurisdiction of the European Court of Justice. We cannot accept that.

The second thing I would say is that there are many areas in which we can co-operate more effectively to safeguard our borders outside the European Union than we ever could inside. Through a variety of methods and arrangements open to us, open to Border Force and open to our security and intelligence services, we can intensify the security that we give to the British people. The third thing I would say to my right hon. Friend is that I agree with her. When it comes to everything—security and other matters—no deal is better than a bad deal.

Pete Wishart (Perth and North Perthshire) (SNP) [V]

So here we go. The coveted no deal is now within touching distance. The dance of the no-deal seven veils is now down to its Brexit underwear. The easiest deal in history will now mean the UK leaving on Mongolian terms. The absolute rubbish we had to listen to about oven-ready deals and holding all the cards is now just the stuff of grotesque bad jokes. And whose fault is it? Well, not the Minister’s or that of this cabal of Tory anti-EU obsessives. It is all the fault of these Europeans. How dare they ask the Tories to stand by what they agreed, and how dare they ask for a level playing field and to retain the integrity of the single market! The EU must have the patience of saints to try to negotiate with these clown shoe-wearing goalpost shifters. As we have just heard, the EU has once again offered to have intensive talks, so it is back in your court, Minister.

The Minister somehow expects Scotland to go along with this disaster. Well there is a saying that he will know as a proud Scot, which will be Scotland’s response to this: he can go awa’ an’ bile his heid. Independence is now the settled will of the Scottish people, with 58% of Scots now in favour, so here is a proposition for the Minister: why does he not just go off and get his no-deal Brexit if that is what England indeed wants, and in Scotland we can now secure our independence—what our people want—which will allow us to design our own future European relationship? Surely there is nothing wrong with that. He gets what he wants and we get what we want. Will he agree to that at last, and say goodbye to his rotten Union and his rotten no-deal Brexit?

Michael Gove

As ever, I am in awe of the hon. Member’s ability, in a very short period, to bring so many metaphors together in what one can only describe as a car crash of similes. The Government, according to him, is wearing seven veils and clown shoes while also shifting goalposts. I have to say that I would love to see that circus performance, but I suspect that I will have to wait, because the SNP conference has I think been cancelled this year.

The second thing I would like to say in response to the hon. Member is that he refers disparagingly to this deal as a “Mongolian deal”. I do not know what Mongolia has ever done to offend the people of Scotland, but we in the UK value our friendship with the people of Ulaanbaatar and others. Certainly, we do not believe that this looking down on other peoples in other nations is appropriate. It may be appropriate for the atavistic nationalism which some SNP supporters avail themselves of, but those of us who believe in the Union, believe in friendship among all nations.

On the hon. Member’s final point about working together, I absolutely agree. The devolved Administrations must work with us and we must work with them to make sure that, as we leave the European Union, the communities of all parts of the United Kingdom prosper. One of the things I do regret is that, even though I value my close working with his colleague the Cabinet Secretary for Rural Economy and Tourism, Fergus Ewing, unfortunately, Scottish Government policy would mean that we would be back in the common fisheries policy. That would mean the people of Scotland’s coastal communities would lose out. I am sure he would not want that, and that is why I hope we can continue to work together to reap the benefits of the sea of opportunity that Brexit will bring.

Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)

I thank my right hon. Friend for his statement. I think he is right, because it was clear in the whole agreement that both sides needed to negotiate in good faith with a view to reaching an agreement. Yet it has been quite clear throughout that, for example, the refusal of those on the EU side to engage on financial services, which are 80% of our economy, but their determination to get a deal on the majority of theirs, which is trade in agri-products, is not good faith. How exactly does he intend to go forward with regard to the problems in the withdrawal agreement that will now be outstanding even if we make no trade deal?

Michael Gove

My right hon. Friend makes two very important points, the first of which relates to the approach that the European Union has taken. As I mentioned, even while I have been at the Dispatch Box it has been reported that there has been a constructive move on the part of the European Union, and I welcome that. Obviously we need to make sure that we work on the basis of the proposed intensification that it proposes. I prefer to look forward in optimism rather than necessarily to look back in anger. However, as he says, the difficult period that we have had over the past two weeks has been the result of some on the EU side not being as energetic as we have been in trying to reach agreement. He also makes an important point about making sure that we iron out all the difficulties in the withdrawal agreement. That is part of my role in the Joint Committee. I am grateful to him and to others for the advice they have offered as to how we should approach these difficult issues.

Hilary Benn (Leeds Central) (Lab)

Despite what the Minister said in his opening remarks, it is quite clear that negotiations are continuing, and the war of words now needs to stop. Both sides need to get together and agree a deal, recognising that both will have to compromise. On preparations for 1 January, given that businesses do not know exactly how trade between GB and Northern Ireland is going to work—the pharmaceuticals industry does not have a clue—and given that the goods movement IT system is not yet in operation because it is not ready, while nowhere near enough customs agents have yet been recruited, why is it the Government’s approach to say to firms that they have their head in the sand and are not ready, when the Government cannot tell them exactly what they are meant to be getting ready for?

Michael Gove

I actually think that is a fair question that contains at least two very important pieces of wisdom. On the first, the EU took a position last week and in the weeks beforehand that was, as was widely acknowledged, not constructive, not designed to achieve progress, and not engaging with the detail. If, as a result of our clear view that we could not proceed on that basis, there has been movement, as it seems as though there has been today, then no one will welcome it more than me. But we cannot have from the EU the illusion of engagement without the reality of compromise: I completely agree with the right hon. Gentleman on that.

On the second point, yes, both with regard to trade in Northern Ireland and more broadly, there are aspects that need to be worked out. That is why we want to intensify these negotiations. If occasionally, in the crossfire between different parts of business, Government and others, different people express their frustration, that is fine. The most important thing is that we make sure that we work together in order to deliver.

Mrs Maria Miller (Basingstoke) (Con)

I thank my right hon. Friend for his statement. If the EU does not want to complete negotiations by this time, then we have to ensure that the whole country is ready for the consequences, so nothing is more important than keeping our ports working efficiently and effectively. Will he join me in commending the work of the local resilience forum in Hampshire on plans to ensure that Portsmouth, which has particular local transport challenges, can continue to support EU-bound freight? Will he update the House on funding available to help make sure that resources for these very important plans are in place?

Michael Gove

My right hon. Friend makes a very important point. Both the local resilience forum in Hampshire and the authorities in the port of Portsmouth have been working incredibly hard to make sure that they are ready for every eventuality. New facilities are being built at the port of Portsmouth. The port of Portsmouth is putting in an application to the port infrastructure fund for them. I had the opportunity to meet the leader of Portsmouth council and the chief executive of the port alongside my right hon. Friend the Paymaster General last Thursday. It is the case that some additional resource will be required to make sure that we can avoid any potential traffic congestion near Portsmouth, and we are working with the local authority to achieve just that.

Geraint Davies (Swansea West) (Lab/Co-op) [V]

The Government are planning to break the withdrawal agreement they signed only last year, thereby breaking international law and sending us into economic self-isolation. The Chancellor of the Duchy of Lancaster knows that a Canada deal is possible if he agrees the protections that are required for workers’ rights and our environment. Will he go back and agree those protections and, with them, a tariff-free trade agreement so that we can avoid the self-infliction of a no-deal Brexit alongside a raging pandemic, which would be a complete disaster for everyone in the UK?

Michael Gove

I have great affection for the hon. Gentleman, but he gets three things wrong. He says that we are planning to resile from the withdrawal agreement, he says that we will go into economic self-isolation, and he suggests that we should accept EU rules in all the areas that he mentions. My reply is: no, no, no.

Andy Carter (Warrington South) (Con)

As my right hon. Friend mentioned in his statement, Warrington is set to be the location of a new inland border facility on a former coach interchange in my constituency. Will he tell us a little more about what that will mean for jobs in my local area? What assurances can he give to local residents who are concerned about lorries clogging up village roads?

Michael Gove

My colleague Lord Agnew, the Cabinet Office Minister, has been in touch with my hon. Friend and with the local authority to stress that there will be additional investment, which will mean more jobs in Warrington. We expect that there will be an additional 375 jobs created in Warrington, split between new jobs for colleagues in the Border Force, Her Majesty’s Revenue and Customs, Mitie and the haulage firm Wincanton. The current expectation is that that number will rise to around 460 jobs by December next year. We are also working to make sure that there is appropriate additional funding to ensure that there is no additional traffic problem for him, his constituents or those in neighbouring villages.

Mr Barry Sheerman (Huddersfield) (Lab/Co-op) [V]

I have known the Chancellor of the Duchy of Lancaster all his political career. May I urge him not to keep the door ajar but to open the door to continuing negotiations? Not to have a deal would be a historic, shameful failure. It would hurt my constituents and his, with broken businesses and unemployment, and blight the future of a new generation and generations to come. Please, I beg him to try again for all of us.

Michael Gove

I am grateful to the hon. Gentleman for his comments. We sincerely want an agreement, but we cannot have an agreement on any terms. I know that his constituents, like mine, voted to leave the European Union—

Mr Sheerman

indicated dissent.

Michael Gove

Oh, a curious absence, then, in Yorkshire. Whatever our disagreements, the hon. Gentleman and I agree that we should work together in the best interests of all the citizens of the United Kingdom. I am always grateful for his wisdom. Ever since I first arrived in the House, he has been a good friend and a wise head, and whenever I have gone wrong it is because I have not paid too much attention—sorry, it is because I have not paid enough attention to his words.

Nicola Richards (West Bromwich East) (Con)

The UK will prosper mightily as an independent free trading nation with control over our money, laws and borders. What support has my right hon. Friend put in place to help business leaders in West Bromwich East prepare for the changes and opportunities that that will bring when we leave the transition period at the end of this year?

Michael Gove

My hon. Friend makes a very good point. Fundamentally, whatever turbulence may occur, whatever bumps in the road there might be in the months ahead, the strengths and resilience of our economy mean that we will prosper mightily. The manufacturing leaders in her constituency in West Bromwich and more widely across the Black Country and the west midlands are benefiting directly from the investment that we are making in customs intermediaries, in new IT processes and systems, and in our Prime Minister’s broader commitment to levelling up. We must make opportunity more equal across the United Kingdom, and my hon. Friend’s championing of business in West Bromwich is a critical part of that.

Sir Jeffrey M. Donaldson (Lagan Valley) (DUP)

Protecting the Good Friday agreement means protecting Northern Ireland’s place as an integral part of the United Kingdom, for that is the settled will of the people of Northern Ireland exercised through the principle of consent. Will the Secretary of State give us an update on discussions in the Joint Committee on the issue of export declarations and the fact that they are not required for goods travelling from Northern Ireland to Great Britain? Will he also give us an update on the issue of goods at risk and the EU attitude on this, to ensure that goods from Great Britain to Northern Ireland that are not passing on to the Republic of Ireland are not subject to unnecessary and costly disruption?

Michael Gove

My right hon. Friend makes three very important points. On the first, about exit declarations, he is absolutely right: the protocol is there both to help us safeguard the EU’s single market, but also to affirm Northern Ireland’s integral place in the United Kingdom and within its customs territory, and there is no need for customs declarations for goods coming from Northern Ireland to the rest of Great Britain. As for his point about goods at risk, he is absolutely right about that as well: bread that is baked in Huddersfield and goes into a supermarket in Ballymena should not be subject to tariffs, because it is trade within the United Kingdom. And his final point is right as well: the Belfast agreement was a balanced agreement, and sometimes some of the rhetoric we hear about the Belfast agreement seems to me to be inadequate in its understanding of the vital importance of the fact that the majority of people in Northern Ireland have voted to stay part of the United Kingdom. Their rights, their views, their loyalty needs to be respected.

Craig Williams (Montgomeryshire) (Con)

The toughest negotiators in this country are the farmers in my constituency, and my farmers recognise at this moment that my right hon. Friend and Lord Frost are excellent negotiators. That is borne out by the news that the talks are intensifying, including on legal texts. May I ask my right hon. Friend to meet me to talk about business engagement, especially in the agricultural sector in the devolved Administrations environment, since the devolved Administrations seem hostile to us getting any kind of successful deal?

Michael Gove

My hon. Friend is absolutely right: I have met farmers in his constituency, and a tougher bunch of negotiators we would be hard-pressed to find. But he is absolutely right also that their interests need to be protected, and not just by the UK Government but by the devolved Administration—by the Government in Wales. We need to work together to ensure that we are supporting them. In the event of an Australian-style exit, one of the sectors that we will need most energetically to support is the sheepmeat sector, and we will—and to be fair to the hon. Member for Leeds West (Rachel Reeves), she made that point.

Dr Philippa Whitford (Central Ayrshire) (SNP) [V]

The UK imports 37 million packets of medicines from the EU every single month. The pharmaceutical industry has highlighted the difficulty in rebuilding full stockpiles for the end of transition due to the impact of covid, so, with just 74 days to go, how will the right hon. Gentleman ensure that there are no drug shortages, particularly of insulin, which the UK does not produce, and radioisotopes, which cannot be stockpiled?

Michael Gove

The hon. Lady brings formidable expertise to this area, and she is absolutely right to highlight the fact that we need rapid access to both insulin and radioisotopes. That is why the Department of Health and Social Care and the Department for Transport have put in place contingency arrangements should there be any risk of disruption, but we are also confident that the steps we have taken more broadly will ensure that we have freight flowing freely between the UK and the EU, including in this critical area.

Damian Green (Ashford) (Con)

First, I should pay tribute to the Under-Secretary of State for Transport, my hon. Friend the Member for Redditch (Rachel Maclean), for her exemplary communications with my constituents who live near the Sevington lorry park; I am very grateful.

I still hope and expect that we will get a deal, but either way, may I ask my right hon. Friend how confident he is that the smart freight system will be fully operational by 1 January, and if it is not, what does he think will happen?

Michael Gove

I join my right hon. Friend in praising the efforts of the Transport Minister, who has been incredibly energetic and determined to make sure that colleagues in Kent from all parties are kept informed on the progress of our preparations. The smart freight portal is being shared with hauliers and others as we speak. It is currently in its beta phase and we want to ensure that it is further refined, but the straightforward approach that it should provide should enable us to minimise any disruption that my right hon. Friend or his constituents face. I am absolutely confident it will be in place; if it were not, other measures would need to be taken, but they would not be as helpful as the smart freight system.

Kevin Brennan (Cardiff West) (Lab)

We have heard it all now: it is just, according to the Chancellor of the Duchy of Lancaster, “an unfortunate sequence of events”, otherwise known as the Lemony Snicket defence—all the fault of evil uncle Olaf and his foreign friends. But on the serious point about this, consider how it will affect, for example, our musicians who go on tour. They are usually not part of large operations. They might take their instrument, fly on a budget flight, try to sell some of their merchandise, cross a few borders in the European Union—that is how they scrape a living. They are making no money now. Will he please consider the consequences of no deal, admit that this is not a frivolous issue but a matter of people’s livelihoods, and seriously engage with it rather than take this frivolous and superficial approach?

Michael Gove

I am very grateful to the hon. Gentleman, but I certainly would not take a frivolous approach towards the livelihoods of anyone, whether they are freelance musicians or anyone else who contributes to the health, prosperity and economy of this country. That is one of the reasons why we are so anxious to secure an agreement with the European Union and why we have been working so hard and in such a dedicated fashion in the Withdrawal Agreement Joint Committee. I mentioned earlier that as a result of the progress that we have made with Vice-President MaroÅ¡ Å efÄ