Exiting the European Union (Building and Buildings)
(Limited Text - Ministerial Extracts only)
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The Minister for Housing (Christopher Pincher)
I beg to move,
That the draft Construction Products (Amendment etc.) (EU Exit) Regulations 2020, which were laid before this House on 15 October, be approved.
The draft regulations were laid before the House on 15 October this year. They were debated and supported in the other place on 10 November. They are part of the Government’s programme to update European Union exit legislation to reflect the fact that we are now leaving the transition period under the withdrawal agreement and the Ireland-Northern Ireland protocol.
The regulations will amend existing construction products regulations in the United Kingdom using the powers in the European Union (Withdrawal) Act 2018. They will ensure that EU construction products legislation continues to apply in Northern Ireland, in accordance with the Northern Ireland protocol. They will also amend the remainder of the United Kingdom regime so that it applies to Great Britain only.
It is probably worth my taking a few moments to remind the House of some of the background. The EU construction products regulation, or CPR, is directly applicable in all EU member states and has applied across the United Kingdom since 2011. It seeks to remove technical barriers to the trade in construction products in the European single market.
The CPR harmonises the methods of assessment and testing, the means of declaration of poor performance, and the system of conformity assessment of construction products. It does not harmonise national building regulations. Individual member states remain responsible for safety, environmental, energy and other requirements applicable to construction works. Where an EU harmonised standard exists for a product, the CPR places an obligation on manufacturers, distributors and importers of that product when it is placed on the market. That includes a stipulation that the product must have been accompanied by a declaration of performance and affixed with a CE mark. This helps provide reliable information to industry and consumers about the performance of the product.
Jim Shannon (Strangford) (DUP)
One of the concerns I have in relation to this statutory instrument is the north-south movement of products for the construction sector, such as cement moving from Northern Ireland to the Republic of Ireland, and vice versa. There is also the movement of wood from the Republic of Ireland and across from Scotland and the mainland. Can the Minister confirm that a full consultation process has taken place with all those in the sector, and that they fully believe this will enable the construction sector to continue as it is? I say that because I believe the construction sector is able to lift the economy come 1 January next year, and the opportunity must be there. It should not be inhibited in any way.
Christopher Pincher
I am grateful to the hon. Gentleman for his intervention. He is a doughty campaigner for his constituents in Strangford and across Northern Ireland.
The amendments we are debating today are of a technical nature, but I can assure the hon. Gentleman that it is not the objective of these measures to inhibit in any way the transfer of goods between the Irish Republic and Northern Ireland or the transfer of goods between Northern Ireland and Great Britain. We want unfettered access to our mainland markets to continue, of course, for businesses and services in Northern Ireland. I will address those points in more detail in my remarks.
At the end of the transition period, the CPR becomes retained EU law and will form part of the United Kingdom’s legal system. We made the Construction Products (Amendment etc.) (EU Exit) Regulations in March 2019 to ensure its provisions will have practical application in the United Kingdom. That was, of course, before we had a withdrawal agreement or a Northern Ireland protocol.
Those 2019 regulations include the introduction of United Kingdom-wide provisions, such as the UKCA mark and UK-designated standards, in preparation for a no-deal Brexit but, of course, we have now left the European Union with a withdrawal agreement and a Northern Ireland protocol.
Without the amendments made by this instrument, the 2019 regulations would not be compliant with the Northern Ireland protocol, as they would have application to the whole United Kingdom, including Northern Ireland. Regulators would lack powers to enforce EU regulations in Northern Ireland, and manufacturers would not be able to test their products in the United Kingdom and affix the UKNI indication to place the product in the market.
The policy intent of these regulations is to keep the same requirements set out in the 2019 regulations in Great Britain but to introduce a Northern Ireland regime that complies with the Northern Ireland protocol. They do not change the key CPR requirements currently in place. The same standards will apply in Great Britain and Northern Ireland immediately after 31 December, as they did before the transition period, and products that meet Northern Ireland CPR requirements will have unfettered access to the market of Great Britain.
The effect of these regulations can be considered in three parts. First, they will amend the 2019 regulations so that current United Kingdom-wide provisions, such as UKCA marking and UK-designated standards, will become Great Britain-only provisions at the end of the transition period. A further effect of this territorial amendment is that it will ensure that EU construction products law will continue to apply in Northern Ireland, in line with the Northern Ireland protocol. As United Kingdom-designated standards will be identical to EU harmonised standards at the end of the transition period, there will be no change for businesses placing goods on the market in terms of the standards that must be met.
Alan Brown (Kilmarnock and Loudoun) (SNP)
I understand what the Minister is saying about standards still being the same when we leave the EU, but if we leave without a deal the UK will be a third country. What will that mean for the export to the EU of construction goods manufactured in the UK? Will a reciprocal arrangement have to be put in place to recognise those goods, so that they will not have to undergo additional checks and certification in the EU?
Christopher Pincher
We want unfettered access to the EU markets, and we want the same for them. That is why we are attempting to implement a trade deal. The standards between the United Kingdom and the European Union will remain harmonised, unless or until we introduce further regulations. Such regulations or changes will be available to debate, and I look forward to that opportunity.
Secondly, the regulations make provision for conformity assessment bodies established in the United Kingdom. They enable UK-approved bodies to continue testing against EU harmonised standards for the Northern Ireland market, and they introduce, as I have said, a new UK(NI) indication, as required under the protocol. Where the UK-approved body undertakes the conformity assessment activities required under an EU standard, the manufacturer must affix the CE marking together with the new UK(NI) indication. These regulations ensure that these CE plus UK(NI)-marked construction products will be recognised in Northern Ireland and in Great Britain. The details of the UK(NI) indication will be established under a separate instrument, led by the Department for Business, Energy and Industrial Strategy, and those regulations were debated in the House on 16 November.
Thirdly, these regulations amend existing UK-wide enforcement provisions so that they apply in Great Britain and restate EU CPR enforcement provisions in respect of Northern Ireland. For Great Britain, the regulations amend the enforcement rules to reflect that the CE marking on its own and the CE marking together with UK(NI) indicators will be recognised in Great Britain. For Northern Ireland, the regulations provide an enforcement regime in relation to the EU construction products law and the new UK(NI) indication.
Finally, the regulations make a small number of technical changes to correct deficiencies in the 2019 regulations arising from leaving the EU with the withdrawal agreement and the Ireland/Northern Ireland protocol.
To conclude, these regulations serve a very specific purpose: to amend the 2019 regulations to ensure that there is a functioning legislative and regulatory regime in both Great Britain and Northern Ireland. This is necessary in response to the withdrawal agreement and the Ireland/Northern Ireland protocol that the United Kingdom and the EU agreed in January 2020. Our overall approach to these amendments is entirely concurrent with both the policy and the legal intent of the European Union (Withdrawal) Act 2018, and enacts the policy that the Government set out in guidance to the industry in September.
I apologise for the detailed technicalities in these amendments, which are, effectively, amendments to amendments, but I hope that Members across the House will join me in supporting them. I commend the regulations to the House.
Christopher Pincher
We have had an interesting debate on what otherwise might be described as dry and technical matters, though in saying that I do not wish in any way to diminish or undermine the seriousness of the issues at hand, some of which I will address in my remarks. I thank hon. Members on both sides of the House for their contributions.
We are seeking a positive future trading relationship with the European Union that we hope will include a mutual recognition agreement on conformity assessment, supporting United Kingdom approved bodies and construction manufacturers alike. These regulations will come into force at the end of the transition period—in either scenario—and further legislation will be laid to implement such a trade agreement. The reason for these amendments is not a deal on free trade with the European Union, nor because we are attempting to diverge from the present harmonised rules on construction standards. It is simply that the present provisions, which will come into force at the end of the transition period, were made before the withdrawal agreement was agreed and before the Northern Ireland protocol was signed, and we need to amend them in the light of those—I think we would all agree—welcome advances.
I will address some of the points raised by hon. Members across the Chamber. With respect to building safety, I will not attempt to drain the debates that we have had across the Dispatch Box and around the Chamber over several weeks about the importance of dealing quickly with ACM and non-ACM clad buildings. As the House knows, the Government have put aside £1.6 billion for that purpose, and we keep the situation under review. We remain committed to maintaining the highest standards for construction products that are put on the market. Let me say to the hon. Member for Reading East (Matt Rodda) and to the shadow Minister, the hon. Member for Weaver Vale (Mike Amesbury), that the Building Safety Bill, which has been published in draft and will be brought forward as soon as possible, will implement the recommendations of the Hackitt review. We want to use that further to strengthen the regulatory oversight of construction products at a national level. This is not a race to the bottom; it is very much a race to the top in terms of standards.
The hon. Member for Kilmarnock and Loudoun (Alan Brown) also raised the question of where the CE designation will apply. The reason that we are transposing it into British law—Great Britain—is to ensure that businesses have an opportunity to prepare for any future changes in order to minimise business disruption. We are introducing the UK(NI) designation to ensure that any goods sold into Northern Ireland meet European Union CPR designated standards. Again, we want to ensure that the CE designation continues for a period of time. Will future regulations diverge? Well, that is a matter for the Government of the day. Any changes to our regulations will be debated in this place and the other place in the usual way, and the House will come to a conclusion. Should the European Union wish to change its designations, that is a matter for it. In those circumstances, the European Union would certainly have to comply with UK-wide designations, with the exception of the UK(NI) designation, which of course applies to Northern Ireland qualifying goods.
Mike Amesbury
What assurance can the Minister give the House that this divergence will not see a race to the bottom? We have talked about current standards, and it has been mentioned that there have been some major issues, including products that have been tested, and which have then been used either as fire breaks or to encase buildings. It has got to be a race to the top, rather than to the bottom. What assurances can the Minister provide?
Christopher Pincher
I am obliged to the hon. Gentleman for his intervention. We have always been at the forefront of good design and product safety, and I hope that nobody in the House will assume that somehow, because they are EU regulations, those regulations must ineluctably be better than our own. We will make sure that we have regulations that are suitable for our markets. We will make sure that we have really good regulations and that, as we leave the transition period, we maintain EU regulations, which are being incorporated, as I have said, into British law.
The hon. Gentleman asked a question about enforcement. One reason why we need to introduce the amendments to amendments is to make sure that local authorities, which are usually responsible for the enforcement of such regulations, have the wherewithal in England, Scotland and Wales and Northern Ireland to enforce the necessary regulations, whether they are the CE regulations that we are transposing in Great Britain, future regulations that we might apply or the construction products regulations that will continue to pertain in Northern Ireland. The enforcement regulations —I think Lord Blunkett asked about this in the other place, and my noble Friend Lord Greenhalgh replied—will be maintained as a result of these amendments.
What will happen in future? It is for my noble Friend Lord Frost and his negotiating team to win a great trade deal for the United Kingdom, and that is what he is endeavouring to do. I hope, given that the amount of trade in construction products is definitely in the European Union’s favour—something like £10.8 billion-worth of trade, compared with £4 billion and a bit the other way—it is in its interest to reach a good trade deal with the United Kingdom, to ensure that that trade continues to flow.
The Government believe that the regulations that we have laid before the House are needed to ensure that there continues to be a functioning legislative and regulatory regime for construction products at the end of the transition period and that it is, as I have said, in line with commitments set out in the all-important Northern Ireland protocol. I trust that I have answered all—or nearly all—the questions that have been put to me by Members in all parts of the House. If not, I am happy to write to them. With that, I conclude and commend the draft amendments to the House.
Question put and agreed to.
Resolved,
That the draft Construction Products (Amendment etc.) (EU Exit) Regulations 2020, which were laid before this House on 15 October, be approved.
Mr Deputy Speaker (Mr Nigel Evans)
Order. We are going to suspend for three minutes so that the Dispatch Boxes can be sanitised.