Protocol on Ireland/Northern Ireland

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Thursday 3rd March 2022

(2 years, 2 months ago)

Grand Committee
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Lord Frost Portrait Lord Frost (Con)
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My Lords, this is the first time I have spoken as a Back-Bencher since I stepped down from the Government in December. I am glad to have the opportunity to do so now and offer my support for the approach that the Government and my noble friend Lord Caine have been taking.

As the Motion put forward by the noble Lord, Lord Jay, sets out—and as the work of his sub-committee has made clear, as he said—politics in Northern Ireland have come under ever greater strain since the start of this year. The tension created by the protocol obviously underlies the current difficulties, which stem ultimately from the destruction of the protocol’s moral basis caused by the EU’s attempt to put a vaccine regulatory border on the island of Ireland in January last year.

As has been said, the political situation is now very troubling. We do not have a First Minister or Deputy First Minister in post, and the Executive are effectively inoperative. The courts are looking at fundamental aspects of the protocol. It is by no means clear that a stable Executive can be established after the elections. In short, it is clear that there is political and societal disruption.

This situation plainly cannot be allowed to continue. There needs to be significant change. The protocol could have worked properly only with very delicate handling. It has not had it, so change must come. When it does, it must be in the direction of re-establishing full UK sovereignty and legal normality in Northern Ireland. That has to be the end goal. Reversion to this norm is the best way to provide long-run stability and properly protect the Belfast/Good Friday agreement.

Much the best way forward, of course, would be to renegotiate the protocol, as the Government have proposed, so that it can be supported across all communities in Northern Ireland and so that it respects all three strands of the Belfast/Good Friday agreement. I hope that the EU might yet do that in the new spirit of collaboration that currently exists over our common response to Russian aggression in Ukraine. However, if it does not do so, it will be perfectly reasonable for the Government to use the Article 16 safeguard provisions.

Finally, we must also remember that the protocol is explicitly a temporary arrangement. It disappears in 2024 unless the Assembly wishes it to continue. That consent vote is important. It is entirely legitimate for the UK Government to have a view on it, and I personally think that view should be that it is not in the interests of Northern Ireland for this protocol, in this form, to continue beyond that vote. I will certainly support the Government in any action they take to re-establish stability and to secure Northern Ireland’s place in this United Kingdom.

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Lord Caine Portrait The Parliamentary Under-Secretary of State, Northern Ireland Office (Lord Caine) (Con)
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My Lords, before responding to the debate, as I am the first Northern Ireland Office Minister to be at the Dispatch Box in either House since the tragic death of Christopher Stalford, I formally place on record the Government’s sincerest condolences to Laura, the rest of Christopher’s family and his DUP colleagues.

First, I thank the noble Lord, Lord Jay of Ewelme, for tabling this Motion. As he reminded the Committee, before my appointment last November, I had the privilege of serving under his chairmanship as a member of the Northern Ireland protocol sub-committee of the European Affairs Committee. Like colleagues from all parts of the Committee, I benefited immensely from his wise counsel and was hugely impressed by his ability to reach consensus when faced with a range of divergent views—all, of course, in the best traditions of the Diplomatic Service. I take on board the noble Lord’s comments about my right honourable friend the Minister for Europe; I will take them back. Of course, I commend the ongoing work of the sub-committee and wish it well.

I am grateful to the noble Lord for raising issues that remain of immense importance to Northern Ireland in particular but also, as we should never forget, to the rest of the United Kingdom as a whole. The Motion in his name asks

“Her Majesty’s Government what assessment they have made of the impact of the Protocol on Ireland/Northern Ireland on recent political developments in Northern Ireland.”

I will answer that in two parts, if I may: first, by looking at the situation in Northern Ireland today, including reaffirming the Government’s strong commitment to political stability; and, secondly, making a few more general comments about the problems created by the protocol and the Government’s efforts to resolve them.

I turn first to the current situation in Northern Ireland and political stability. One of the Government’s overriding objectives is, of course, the preservation and implementation of the 1998 agreement, along with its successors, and the enormous benefits that have flowed from it. Our commitment, and my personal commitment, to the 1998 agreement, the constitutional principles it enshrines, including the principle of consent, the institutions it establishes and the rights it safeguards for the whole community, remain unshakeable. It is my firm view and that of the Government that it remains the bedrock of all the progress we have seen in Northern Ireland over the last nearly 24 years.

In that context, I warmly welcome back to his place in the House the noble Lord, Lord Murphy of Torfaen, who, as he reminded the Committee, was intimately involved in those negotiations in 1998. I thank him for many of his wise words today.

This Government will never take any risks with the agreement and the relative peace, prosperity and stability it has helped to create. If I might speak personally for a moment, as one who worked in the Northern Ireland Office under Peter Brooke and Patrick Mayhew during a period of direct rule in the early 1990s, while the Troubles were still raging, I need absolutely no convincing of just how important political stability is. It is therefore profoundly regrettable and disappointing, as the noble Baroness, Lady Suttie, made clear, that for the second time in recent years we now find ourselves without a properly functioning Executive in Northern Ireland following the resignation of the First Minister on 3 February and the consequential removal from office of the Deputy First Minister.

The Northern Ireland (Ministers, Elections and Petitions of Concern) Act agreed by Parliament last month will provide some greater resilience and continuity of decision-making, including potentially after the 5 May Assembly election. But, as a number of noble Lords made clear, it is simply not an adequate substitute for a fully functioning Executive working for all the people of Northern Ireland and delivering on their priorities—not least, as my noble friend Lord Rogan mentioned, when it comes to the National Health Service, which in terms of outcomes already lagged behind the rest of the United Kingdom before the pandemic and now does so even more as we emerge from it, I hope. The noble Baroness, Lady Goudie, made a similar reference to the state of the NHS.

Another unfortunate consequence of the current situation is that the Northern Ireland Executive will not now be able to agree and pass a three-year budget this side of the election. That would have given departments such as health greater certainty to enable them to plan ahead and implement necessary reforms. Both in the run-up to and for a period after the Assembly election, Ministers will still be able to take decisions, but nothing that could be regarded as controversial or cross-cutting, which would require executive approval.

I take on board the comments of the noble Lord, Lord Murphy. The Government will continue to urge and call for the immediate restoration of a fully functioning Executive and work towards that end: an Executive able to take the necessary steps to reform the delivery of public services; to address structural weaknesses in the Northern Ireland economy, such as skills and productivity; and, of course, to tackle community divisions, which hold back society in Northern Ireland.

However, we are under no illusions that this will be an easy task—as I know from personal experience and as the noble Baroness, Lady Suttie, reminded us—either in the run-up to the Assembly election in May or in the period immediately thereafter. That is, unless we can fix the root cause of the current instability in Northern Ireland, and that is of course the other subject of today’s debate: the protocol.

The problems created by the protocol are well documented, including in the Command Paper presented to Parliament by my noble friend Lord Frost last July and, as the noble Lord, Lord Jay, mentioned, in the first report of the sub-committee, when I was a member, also last July. Many noble Lords who have contributed this afternoon have highlighted a number of particular issues with the protocol, which I acknowledge. The noble Lord, Lord Jay, set out many of them.

I heard for myself the many challenges that businesses in particular are encountering when I met representative organisations and individual businesses, including a haulage company, in Northern Ireland a few days ago. I anticipate visiting a major port in the near future to look at the situation on the ground. I was left in no doubt by the business community in Northern Ireland about the urgent need to deal with these problems.

In addition, as the noble Baroness, Lady Hoey, and my noble friend Lord Dodds of Duncairn made clear, there are important constitutional and political issues involved here, as well as issues of identity. It is clear that, in addition to the impact on business, the protocol strikes at the heart of the identity of the pro-union majority in Northern Ireland, who increasingly see themselves cut off from the very United Kingdom of which, on the basis of consent and in domestic and international law, they are an integral part. I assure my unionist colleagues that I never wish to see that position change.

In summary, the protocol has led to a diversion of trade, placed substantial additional burdens on business, disadvantaged consumers and led to societal issues, such as we witnessed in the run-up to—

Baroness Ritchie of Downpatrick Portrait Baroness Ritchie of Downpatrick (Lab)
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I thank the Minister for giving way. Would he, along with ministerial colleagues representing the British Government, work with the Irish Government, to look at the provisions in Article 14(b) of the protocol on the North/South Ministerial Council and the implementation bodies to see whether there are immediate solutions, so that we can get past this interregnum phase and ensure that the institutions are up and running again? It is not solely the Executive that is down but the North/South Ministerial Council.

Lord Caine Portrait Lord Caine (Con)
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I of course take on board the noble Baroness’s comments. We are willing to look at any pragmatic solutions to this, although I would caution that negotiations on the protocol are between the United Kingdom Government and the European Commission. The Commission represents Ireland in those negotiations, as was made clear to me by Monsieur Barnier in 2018, when I had the privilege—that is probably the wrong word—of an hour with him.

I was saying that, in summary, diversion of trade and societal problems have disadvantaged consumers and placed burdens on business. Although I accept that opinion within Northern Ireland remains divided, as the contributions of the noble Baroness, Lady Ritchie, and the noble Lords, Lord Thomas of Gresford and Lord Murphy, made clear, a protocol that does not have the support of one part of the community is simply not sustainable and durable, as my noble friend Lord Frost has said on many occasions.

As my noble friend Lord Godson and others highlighted, the blunt truth is that a protocol that was intended to preserve and protect the 1998 agreement in all its parts has now become an instrument for undermining it. Clearly, it does not work for all communities and for business in Northern Ireland, and is having a destabilising effect on politics. That cannot be an acceptable state of affairs.

A number of noble Lords referred to how we got here. If they will forgive me, I wish to focus on the present, but I will pick up on the reference the noble Lord, Lord Hannay, made to my former boss, the then Secretary of State for Northern Ireland, Theresa Villiers. I hold her in the highest regard but it was never a requirement of being a special adviser that one had to agree with one’s boss on every single issue, if I might put it like that.

It is clear that we need to remedy the problems created by the protocol, in both construction and implementation, as a matter of urgency to ensure the proper flow of goods within our United Kingdom internal market while, of course, respecting the integrity of the EU single market. We need to create the conditions in which the institutions established by the 1998 agreement can, across all three strands of that agreement, as my noble friends Lord Frost and Lord Godson made clear, be restored to their proper place and function effectively. That will of course require pragmatism and proportionality on all sides, but principally from the EU itself. For our part, and to this end, the UK Government set out in a Command Paper last year a range of constructive proposals. Of course, the EU published its four non-papers last year, which are, in the Government’s view, a step forward but fall short of what is required.

A number of noble Lords referred to the current negotiations. I am conscious of time and that I am surrounded by a number of seasoned negotiators, all of whom will, at one stage in their careers, probably have advised Ministers not to give a running commentary on current negotiations. It is not my intention to depart from that particular principle. I am sure noble Lords will understand that, although my department works closely with the FCDO, it is clearly in the lead on the negotiations. I am therefore somewhat limited in what I can say or share. Suffice it to say, as a number of noble Lords have mentioned, that intensive negotiations are continuing between my right honourable friend the Foreign Secretary and the European Commission at both ministerial and official level. While it is the case that some progress has been made, significant gaps remain.

I will finish shortly. The Government’s clear position is that, while the conditions for triggering the safeguards within the protocol were indeed met some time ago, our strong preference is to resolve our differences through agreement, if possible. In response to the comments of the noble Lord, Lord Jay, at the outset, we very much hope that agreement can be reached. Unfortunately, I cannot really give him a timetable but, as I said earlier, we are seized of the importance of fixing this, and fixing it quickly. Failing that, the Government reserve the right to take unilateral action, for which the protocol clearly allows.

As the noble Lord, Lord Jay, reminded us, as did the noble Baroness, Lady Goudie, our debate today takes place against a backdrop of the greatest threat to peace and stability in Europe for decades, and our thoughts are with the people of Ukraine at this moment and we stand side by side with them. Notwithstanding the attention and commitment that that crisis is rightly taking up—I hope I can assure noble Lords on this point—the Government will continue to engage tirelessly to fix the problems around the protocol and pursue our objectives to build a Northern Ireland where, to use a phrase I have used many times before, politics works, the economy grows and society is more united.

The UK Government have the strongest possible interest in protecting peace and stability in Northern Ireland, and, through our unwavering support for the 1998 agreement and our efforts to fix the protocol, that is what we will strive to achieve.