Asked by Baroness Quin To ask Her Majesty’s Government what
recent discussions they have had with United Kingdom aerospace and
automotive industries about continued access to the European Union
single market. The Parliamentary Under-Secretary of State,
Department for Business, Energy and Industrial Strategy (Lord Prior
of Brampton) (Con) My...Request free trial
Asked by
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To ask Her Majesty’s Government what recent discussions
they have had with United Kingdom aerospace and automotive
industries about continued access to the European Union
single market.
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The Parliamentary Under-Secretary of State, Department for
Business, Energy and Industrial Strategy (Lord Prior of
Brampton) (Con)
My Lords, we engage closely with the UK aerospace and
automotive sectors. We have frequent conversations about
the challenges that leaving the EU poses and the
opportunities that will become open to us. Both sectors
have effective partnerships with government through
the Aerospace Growth Partnership and
the Automotive Council respectively.
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(Lab)
My Lords, the Foreign Secretary has said that it would be
perfectly okay to leave the EU without a deal on Brexit,
but how can this possibly be true in the case of two of our
most crucial industries—the automotive and the aerospace
industries? In evidence to this House, they have shown not
only how important exports to the European market are but
how they are part of European integrated supply chains, how
much they benefit from the movement of trained European
workers across European countries, and how they benefit
hugely from participation in funding and key European
research and development and other programmes. How can the
Foreign Secretary’s statement be true for these industries?
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My Lords, clearly, trading with the countries of the
European Union is extremely important. What we are
discussing are the terms of that trade. The Prime Minister
has made it very clear that she hopes to negotiate a deal
that means trade that is as free and frictionless as
possible. On that basis, there is a very good outlook for
both industries.
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(LD)
My Lords, the Vehicle Certification Agency is our national
approval authority for new road vehicles and it is involved
with EU policy formulation. Its approval certificates are
recognised without question throughout the EU, bringing
enormous access benefits to our vehicle manufacturers. What
future do the Government see for the VCA’s activities post
Brexit and what do the car manufacturers think about that?
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My Lords, the issues raised by the VCA are broadly the same
as those for the EASA, the MHRA and lots of other regulatory
authorities in this country. The relationship between our
national regulators and the European regulatory authorities
is obviously extremely important and will be the subject of
negotiations over the next two years.
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(Con)
My Lords, can my noble friend confirm that there is not an
Audi, Mercedes or Volkswagen that is not assembled outside
this country? German exports of these cars to the United
Kingdom are absolutely massive, and the Germans will have
every interest in seeing that that trade continues without
tariff barriers.
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My Lords, it is clear that there is a huge mutuality of
interest in negotiating a free, frictionless trade agreement
between the EU and the UK. In the car industry and industries
where, as the noble Baroness indicated in her question, there
are integrated supply chains, it is doubly in the interests
of both parties to negotiate such an agreement.
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(Lab)
Why is it that the Foreign Secretary says one thing and the
Prime Minister says another? Surely, the industry knows what
is good for itself. The industry is quite clear that we need
a deal, but the Foreign Secretary says that it is unimportant
and we can walk away.
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My Lords, I think it is clear, as the Prime Minister has
said—and the Government subscribe to the views of the Prime
Minister—that we would like to negotiate a free trade
agreement with the European Union with as few non-tariff
barriers as possible. If we are not able to negotiate such an
agreement, we will fall back on the WTO rules.
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(Con)
My Lords, does my noble friend not think it is very nice to
hear spokesmen for the saying day after day how
important it is that government should do what business
wants? Oh, if only that had been the case in past Labour
Governments —and I hope it will be if we ever get one again.
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My Lords, in both the aerospace and automotive industries,
for a number of years we have had an extremely close
partnership between industry and government, to the benefit
of both parties.
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(Lab)
It is reassuring for this side of the House to see the noble
Lord, , scraping the barrel.
To enable integrated production around Europe, is it not just
a question of tariffs? As the Road Haulage Association said,
instead of needing one piece of paper to get from Munich to
Toulouse, for example, we will need 60 pieces of paper,
unless we are part of a European arrangement for all these
technical standards.
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My Lords, the integrated supply chains that have developed
over a number of years are not just limited to the EU. The
aerospace industry is a case in point: its supply chains are
global supply chains—and, of course, under WTO rules there
are no tariffs for aircraft or aerospace parts. We should
raise the horizon away from just the European Union.
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(Lab)
Following on from my noble friend’s question on continued
access to the European Union single market, what is the
Minister’s reaction to recent House of Commons Library
research which shows that none of the G20 countries trades
with the EU on WTO rules alone? They all have some sort of
preferential trade agreement. Does he think that, in the
event of our having to rely solely on WTO rules in two years’
time, we will also leave the G20?
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I think that the Prime Minister has made it absolutely clear
that it is our intention to negotiate a free trade agreement
with the European Union. That is the policy priority over the
next two years.
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(LD)
My Lords, has the Minister considered the situation of
Airbus, which is in Flintshire in North Wales and employs
7,000 people, as well as people in the ancillary industries?
The wings are produced in Broughton, and there are plants in
Filton, near Bristol, Hamburg and Toulouse. The whole of the
European Union is involved in building the Airbus. How will
we secure the future of those jobs, not only in Wales but in
the rest of the European Union?
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The noble Lord makes an extremely important point. Airbus, in
a sense, is globalisation writ large. France, given the huge
investment in Toulouse, Germany and the UK—Wales and England
—have a very great mutuality of interest in negotiating a
deal that enables Airbus to compete competitively with
Boeing. So it would be extraordinary if we cannot negotiate a
deal that enables Airbus to continue to prosper.
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