Kwasi Kwarteng has dismissed border delays and the rising cost of transporting goods to Europe as “teething problems” rather than a consequence of Brexit.
The new business secretary, who succeeded Alok Sharma last week, told MPs on the Commons business select committee he was confident that, despite concerns raised by businesses across numerous sectors, a “smoother” regime would soon be in place at ports and borders.
UK ports and hauliers have reported a collapse in trade since the Brexit deal was implemented on 1 January, introducing onerous new customs procedures for British companies sending goods to Europe and Northern Ireland.
The fishing industry has been particularly hard hit, with a third of the Scottish fleet tied up because operators say delays and increased costs mean they cannot get their catch to European markets.
Fleets in Devon and Cornwall have been affected too, with exporters reporting long border delays causing stock to spoil, and for some shellfish products rendering European markets unviable.
Boris Johnson has outlined a £23m compensation fund.
On Tuesday morning, the chief executive of Food & Drink Scotland, James Withers, shared a picture of a deserted Peterhead fish market on social media, commenting: “What a sad sight. Europe’s biggest fish market in Peterhead like a ghost town. Built to deal with 10,000 boxes/day but with a few hundred. Boats tied up, exporters crippled. No Brexit image of lorry queues, it’s the sight of trade that isn’t moving at all.”
Challenged about the impact on Scottish fishing, Mr Kwarteng blamed COVID-19 and the closure of restaurants in France – an issue that pre-dates the Brexit deal.
“I think these are teething problems,” he said. “We were in the EU for 47 years. A lot of predictions of total congestion and chaos have not materialised, that doesn’t mean we are out of the woods.
“But the most scary predictions were not borne out in reality. I’m confident that we will be able to get to a regime where we will have to get to a much smoother process.
“A lot of the issues relating to things like the collapse of the price of fish are related to the fact all the restaurants in France are closed, so there is no demand for fish in France at the moment. A lot of the difficult issues we are dealing with are also related to COVID.”
Mr Kwarteng, who campaigned for Brexit, is the latest cabinet minister to minimise the impact the deal has had on trade in the first three weeks of operation.
The PM and the Northern Ireland secretary, Brandon Lewis have made similar arguments, dismissing concerns raised by sectors as diverse as Formula 1 and freight hauliers that the deal has pushed up prices, increased complexity, and ultimately may reduce competitiveness.
Mr Kwarteng added: “There are lots of swirling circumstances here which mean the economic situation is unclear and difficult,” he said. “With respect of the Brexit issue I’m confident we can reach very normal conditions soon, but with the pandemic I have no sight of that.
Kwasi Kwarteng was appointed business secretary in place of Alok Sharma
“No-one in the world can tell you when the pandemic has done its worst.”
The business secretary did acknowledge the difficulties the Brexit deal has caused for musicians and entertainers planning to tour in Europe and hinted he was working to resolve them.
The deal includes no special provision for live performers, meaning an act or touring show will need a visa and customs documentation for every performer and piece of equipment in every country they plan to visit.
The EU has claimed the UK rejected an offer to allow free movement to performers while London has countered that it was the EU that rejected their suggestion.
The upshot is that the industry, already reeling from almost a year of venue closures and no guarantee of a return to normal this year, is facing a huge challenge.
“As far as the deal’s concerned we offered a deal on ease of movement of musicians and the entertainment industry.
“It was the EU that rejected our deal on this. I am convinced we can resolve these issues and I am fully aware of the difficulties in this area, ” the minister said.
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Mr Kwarteng also confirmed that he is reviewing employment regulations and workers’ rights protections following the departure from the EU.
Last week the Financial Times reported that the government would abandon the constraints of the working time directive, which limits workers to 48 hours a week, as part of reforms that would water down workers’ rights.
Mr Kwarteng said it was right to review legislation but standards would remain: “I think we can have a strong, powerful economy based on net-zero [carbon] and high standards and high wages, and the idea that we’re trying to whittle down standards is not plausible or true.”
Shadow cabinet spokesman Ed Milliband claimed the fact of the review demonstrated the government wanted to abandon protections for key workers.
“Neither workers nor business want ministers to take a wrecking ball to the hard-won rights of working people and families,” he said.
