Baroness Smith of Basildon (Lab)

My Lords, I am grateful to both noble Lords for their contributions on the situation in Gaza. It is dire; it gets worse by the day. Some will have heard Tom Fletcher from the United Nations on the radio yesterday speaking about his fear of the number of babies who could die in the next 48 hours if aid does not get in quick enough. I understand that a very limited amount of aid went in yesterday. There are lorries at the border now waiting to take more aid in. There are containers available, and discussions are ongoing to get that aid in. My noble friend Lord Collins will be repeating the Statement in the House tomorrow so there will be the opportunity to ask further questions on that. I felt that this debate ran true to form. On the Conservative Benches the feeling was, “You’ve gone too far, it’s terrible”. On the Liberal Democrat Benches it was, “You haven’t gone far enough”. I feel that we have pitched ourselves in the right place. It was an uncharitable and, unfortunately, predictable response from the noble Lord, Lord True. He had questions and criticisms on e-passport use and asked why the deal was so bad last time. He should ask his own party that because the deal was done by his Government. I will go through some of the issues raised. The noble Lord, Lord True, asked about the emissions trading system. It is a ridiculous situation that British businesses—a trade worth, I think, £7 billion—are at risk of paying what is, in effect, a levy to the EU. That has gone. That has to be in the interests of energy prices and British industry. That money was going straight from UK exporters into the EU budget. There is a better way of doing this. This streamlines the regulatory barriers. CO₂ storage is a growth industry in the UK, with enormous potential for investment and jobs. Linking the ETS removes the disincentives for EU emitters to store CO₂ in the UK. That makes our industry far more competitive. That is an important point. On the SPS agreement, I was surprised that the noble Lord, Lord True, was not supportive of it, and I am grateful for the comments from the noble Lord, Lord Newby. It is a huge improvement, and it will have a huge impact on Northern Ireland. The original Brexit deal tried to find a fudge to make this work, with the Windsor Framework. It was a terrible situation where we even had problems exporting between GB and Northern Ireland. I do not know whether other noble Lords do, but I remember Boris Johnson talking to a group of businesspeople, when he said, “If there are any forms to be filled in, you come and see me; you send them to me”. I suggest that, if they had, he might have disappeared under the pile of forms sent to him. We were speaking to a businessperson the other night who said that, for one consignment, his company filled in 2,000 forms. That is damaging to our industry, and it is damaging to our exports. While those forms were being checked and more forms had to be filled in, produce was rotting at the borders. I know that Members across the House have found this to be an issue in their own businesses. It is absolutely right that we have taken action to deal with that. The noble Lord, Lord True, questioned how long the deal on e-passports is going to take, and suggested that it is not going to happen. Negotiations with EU member countries are starting immediately to make sure that it does happen to protect and support those in the UK who are travelling. Anyone who has been on their way back from a holiday or business travel, joined a very long queue, and seen others with EU passports wandering through and British citizens not being able to, will be pleased to see that as well. These are very important agreements. If it helps the noble Lord, in 2024, £14.1 billion of UK agri-food exports went to EU countries. That has a huge impact on British businesses. The noble Lord also went on about dynamic alignment. It might be helpful if I said something about divergence and dynamic alignment, and the rule-taking issue. Research undertaken this May by UK in a Changing Europe showed that the UK has done very little to diverge from EU regulations. That means that British businesses have been sticking to those rules, because it is in their interest since they are still exporting, but the barriers and difficulties they have faced in exporting have had a huge impact on their businesses. The lived reality is that we have had very little benefit from that, which is why this deal has been welcomed by so many businesses. In our trade deal with the United States, we made it clear that we were not prepared to accept, for example, chlorinated chicken, because it would have a detrimental effect on our farmers, who have invested in higher welfare standards. There are always issues that come along on that point. I probably do not have time to respond to all the questions, but I want particularly to come back to fishing. On the point that the noble Lord, Lord True, raised about the European Court, we will have a role in shaping new rules. No rules will apply in the UK unless they go to Parliament and get its agreement, and any disputes will be resolved through international arbitration and agreement. Where the CJEU has a role is with regards to the interpretation of EU law. Briefly on fishing, the fishing industry exports 72% of its produce to the EU. It will benefit hugely from the SPS agreement, which will make a difference. Our shellfish people have not been able to export anything. Saying that we can now export shellfish will have a huge impact and be beneficial to those farmers in Scotland, Devon and other parts of the country who produce shellfish, as well to our salmon farmers. On the year-on-year agreement, there was obviously a wish to get a better deal, but it was highly unlikely because we had not reset the relationship. The 12-year agreement provides some certainty, and alongside it is a £350 million investment for coastal areas and the fishing industry to help them invest in technology and grow their businesses. I think this is an excellent deal. It deals with defence, security and the things that matter to the British people. It takes us a step forward, and away from the argument of Brexit or no Brexit. On the question from noble Lord, Lord Newby, about why we do not further, there will be annual summits to look at these issues; he mentioned some of them. On the customs union, if we were in that union, we would not have achieved the deals with India and the US. People said we could not do it; they said, “You will never get a deal with the EU and the US”. We have done it.