Yes. You have covered the first two or three paragraphs, convener, which should speed things up.
I welcome the opportunity to appear in front of the committee. Thank you for your introductory remarks, convener. As you correctly pointed out, I have with me, on my right, Gillian McGregor and, on my left, Nick Leake, from the Scotland Office. You also pointed out that this is my first appearance before a Scottish Parliament committee. It is not only that; it is my first visit to the Scottish Parliament for any official engagement, so I thank you for inviting me. I am sorry that my scheduled appearance was postponed as a result of an unexpected Cabinet meeting, but I am very pleased that I was able to get to appear at such short notice.
On 31 January, we delivered on the promise that was made to the British people nearly four years ago and finally left the European Union. We left the EU as one United Kingdom, and we are now free to determine our own future and form relationships with old allies and new friends around the world. The UK Government will negotiate those relationships on behalf of the United Kingdom, but we are clear that the devolved Administrations should be closely involved in the process, both at ministerial level—for example, via the joint ministerial committee (European Union negotiations)—and via on-going and constructive engagement between officials.
Turning to today’s session, understandably, the committee will be interested in the impact of the Northern Ireland protocol on Scotland and the building of a future relationship with the EU. First, I want to emphasise that Northern Ireland will remain part of the UK customs territory. Tariffs are not payable for movements of goods within the UK, which will allow Northern Ireland to benefit from the trade deals that we intend to strike around the world. Furthermore, the Prime Minister has made it very clear that, beyond the limited changes that are introduced by the protocol, there will be no change to trade between Great Britain and Northern Ireland.
Secondly, there is no need for a free trade agreement with the EU to involve accepting EU rules. That is a very important point. No other comparable FTA involves acceptance by one party of the rules of the other party. The UK will maintain the highest standards, which, in many respects, will be better than those of the EU, but without being compelled by a treaty to do so.
As the Government has made clear, we want a relationship with the EU that is based on friendly co-operation between sovereign equals and centred on free trade. We are not asking for a special, bespoke or unique deal; we want a comprehensive free trade agreement similar to Canada’s. In the very unlikely event that we do not succeed in achieving that, our trade will be based on our existing withdrawal agreement deal with the EU. The choice is therefore not a deal or no deal, in that respect. My priorities throughout the transition period and beyond are clear: to negotiate the best possible future relationship with the EU and other partners around the globe for Scotland and the UK, to uphold the union and to help to grow Scotland’s economy.
Now that we have left the EU, our fishermen and coastal communities will be free of the common fisheries policy and our world-class exporters will benefit from new trade around the globe. Our points-based immigration system will ensure that the Scottish economy continues to gain access to the labour that it requires. We will treat everyone on the basis of their skills and contribution, rather than on the basis of where they came from. That will mean that it will get a lot easier for Scottish companies to recruit the labour that they need from outside the EU and European economic area countries, but it will be harder to recruit from within the EU-EEA countries.
The undersecretary of state and I have been very keen to meet Scottish stakeholders over the past week—and we have done so—to discuss the genuine difficulties that arise from some aspects of the points-based system. We may talk about that later. However, I am very clear that the salary thresholds that we now have in place are reasonable. The threshold for a job on the shortage occupation list is below the Scottish living wage and we will not lower that further. The new system provides an opportunity for employers in Scotland to make the case for the inclusion of a range of roles, which, up to now, have been out of the scope of the visa regime. We believe that companies should treat employees fairly. The Scottish Trades Union Congress made that point very clearly to me last week and told me that the TUC is very pleased in that regard.
A period of adjustment will inevitably be required, but the Government will continue to support businesses through the changes as we develop the new system. Looking ahead, I am confident that 2020 will be a year of optimism and opportunity as we begin to unleash our potential. My ministerial team and I, and the office, will work tirelessly to represent Scotland’s interests and secure the best possible relationship with the EU and other countries around the world.