My Lords, I support Amendment 6, moved by the noble Baroness, Lady Quin. I will speak to Amendment 9, which is in my name and refers to all parts of the United Kingdom and not just the north-east of England. This whole group relates to the impacts of Brexit and the need for there to be assessment before the Government go much further.
It is estimated that around 160,000 jobs in the north-east of England are directly linked to our being part of the single market. That is because 58% of north-east exports go to the European Union, against a national figure of 42%. After 2019, with a hard Brexit there will be no automatic access to the single market, which is the largest free trade area in the world. Therefore, what are the economic advantages to the north-east of England or indeed to any part of the United Kingdom of losing that automatic access? I would like the Minister to explain how the Government plan to protect it.
I understand that the Minister met the North East Chamber of Commerce last Friday following an initiative by my noble friend Lord Beith. Will this be the first of many such meetings? I ask that because there are structures in London, Scotland, Wales and Northern Ireland for the Government to relate to, but what about the rest of the United Kingdom—the English regions? Regular meetings must be held with those regions to put them on an equal footing with Scotland, Wales, Northern Ireland and London. For that reason, I think that we need regional impact assessments of leaving the European Union. As an example of the problem, and as the noble Baroness, Lady Quin,
emphasised, the north-east of England has a net balance of trade, with total exports amounting to £12.14 billion in 2015. No other region does so well in having such a positive balance of trade. The trade surplus in 2015 was £3.4 billion in the north-east—that is, the north-east local enterprise area and the Tees Valley local enterprise area added together.
It would be a disaster for jobs for this surplus to be lost. Chemicals had a trade surplus of £2 billion and the machinery and transport sector had a trade surplus of £2.3 billion. Some sectors had a trade deficit, which accounts for the overall surplus being £3.4 billion. Such a trade surplus is a very impressive figure for a small region in population terms such as the north-east of England. That is why I have concluded that the Government should establish resilience task forces in each part of the United Kingdom to work with the Government on the problems that will arise if we leave the single market and the customs union.
The abolition of government offices in England has not helped this situation and it has resulted in England being treated as a single entity run out of London. England is not a single entity and its differences should be reflected in the Government’s work on Brexit. In terms of EU funding support, we could look at our universities. The north-east universities are receiving £155 million in EU funding in the current funding period, 2014-20. They stand to lose access to much of that funding once we have left the European Union. Will the Government pick up the bill? Will they guarantee equivalent funding after 2020? In terms of structural funding, the north-east of England, including Tees Valley and the North East LEP, is receiving £590 million in structural funding from the EU in the 2014-20 period. Cornwall will receive £476 million, and Greater Manchester and Leeds City Region will receive more than £300 million each. England will receive £5.6 billion and the UK as a whole more than £8 billion. Will the Minister tell us what the Government’s plan is to make this money available after Brexit?
The question matters because it is the poorer parts of the country that voted more strongly for Brexit, but those are the very parts of the country that are in receipt of much higher levels of EU support. This is the challenge for the Government: have they any plans in place, eight months after the Brexit vote, to make those poorer parts of the United Kingdom resilient in the face of Brexit? The danger is that it is these very areas that will fall yet further behind once we leave the EU in 2019. What are the Government’s plans, in the face of Brexit, to generate growth in the poorer parts of the United Kingdom?