10. Plaid Cymru Debate: Rejoining the single market

Part of the debate – in the Senedd at 5:50 pm on 6 July 2022.

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Photo of Vaughan Gething Vaughan Gething Labour 5:50, 6 July 2022

So, when the Foreign Secretary tells us that she defends a Northern Ireland Bill, as a patriot, with the obvious implication that this carries, we can see, yet again, the depths that what is left of the UK Government will sink to. Now, while we differ on a motion that stirs strongly held views, and mine as much as any other, I'd hope that all Members here would recognise just how dangerous it is for UK Ministers to suggest that support for the Northern Ireland Protocol Bill is a test of anyone's patriotism. This divisive language should not be normalised in Government, and I have made directly clear to the UK Government that this tone is a real problem that must be urgently addressed.

Llywydd, we have attempted to broach shared objectives with a pragmatic approach since the 2016 referendum. That's why we published a joint White Paper with Plaid Cymru in 2017, when we were still within the European Union, setting out viable options for a post-referendum plan for Brexit. That included compromise positions that were both actionable and credible and, indeed, Theresa May moved ever closer to our position over time. But, Llywydd, we can't support Plaid Cymru's motion, because it does not meet those tests of being actionable and credible, given the context that we face today. The motion does not provide a workable solution: single market membership without the benefits of the customs union, which Luke Fletcher mentioned in his opening sentence, would not return the trading conditions that we've previously enjoyed. The motion also raises more questions than it answers. It doesn't suggest how this option would be advanced in a post-deal context or whether, frankly, the EU would entertain such a proposal. Llywydd, we can't endorse a position that is so specific on one element of the relationship whilst remaining silent on the wider questions, which do have major implications for our exporters in particular. 

Our aim is to secure the closest possible frictionless trade with the EU. To support that position, Welsh Government actions reflect the immediate needs of businesses that export from every part of Wales, as well as partners like our universities, who have been let down by the UK Government's failure to secure access to the Horizon programme. Our priority is to promote constructive steps designed to fix the Northern Ireland protocol, reduce those unnecessary trade barriers and to secure access to joint programmes and investment opportunities. We are actively urging the UK Government to change course on all these matters and prevent the immediate risks posed to our economy. We believe that a partnership approach with the EU, based on high standards and respect for international law, could secure major progress that is in Wales's interests. High standards matter, because we know that the engine that drives a successful, modern economy is not powered by a race to the bottom and a tax on workers' rights.

Given the ongoing collapse of the UK Government, it is perhaps no wonder that the Prime Minister is bringing forward new rules allowing agency workers to break strikes. He may soon be turning to them to fill Government posts deserted by an ever-increasing number of people who are withdrawing their labour, and I should add, Llywydd, without the benefit of a ballot before action.

But, Llywydd, given the realities that we face, it is important that the Welsh Government is a partner in the growing coalition of voices presenting the case for the UK Government to change course on its relationship with the EU. It's important because, as many of us agree, significant damage is being done to our economy and much of that could be prevented by the UK Government. That's why I've made clear to UK Minister that we do not accept their analysis of the UK's current trading performance. UK exports to the EU remain below pre-pandemic levels when we account for inflation. The growth of imports also means that the UK deficit on the balance of trade in goods was also at a record level in the first quarter of this year. And the Office for Budget Responsibility has observed that none of the new free trade agreements or regulatory changes announced will be sufficient to have a material impact on the hit to UK exports. So, we have never accepted the overblown rhetoric on new free trade deals, and we remain vehemently opposed to threats to deregulation.

The partnership approach that we advocate is a world away from the aggressive, rule-breaking unilateralism that defines the current UK Government's stance. Their course is both economically illiterate and morally bankrupt. The trade and co-operation agreement does change the context for what is achievable within a constructive partnership with the EU, and what credible next steps could look like. I cannot say with any sincerity to businesses that I meet that the Welsh Government can help them to overcome the problems they face by adopting a position that is simply not credible or even available to UK Ministers today. We continue to want to secure the closest possible frictionless trade with the EU and will continue to press that case. We also believe that it would be much easier to make that case if there were a new Government after a ballot in which all of us could express our opinions.