Wednesday 13th July 2022
(2 years, 5 months ago)
Commons ChamberNorthern Ireland Protocol Bill 2022-23 View all Northern Ireland Protocol Bill 2022-23 Debates Read Hansard Text Amendment Paper: Committee of the whole House Amendments as at 13 July 2022 - (13 Jul 2022)
17:15 - The Committee divided: - Ayes: 231 / Noes: 313 - Question accordingly negatived.
17:30 - divided: - Ayes: 230 / Noes: 308 - Question accordingly negatived.
17:44 - The Committee divided: - Ayes: 308 / Noes: 231 - Question accordingly agreed to.
17:55 - The Committee divided: - Ayes: 229 / Noes: 300 - Question accordingly negatived.
19:19 - The Committee divided: - Ayes: 212 / Noes: 285 - Question accordingly negatived.
Sir Jeffrey M. Donaldson
We are not Norway; we are Northern Ireland. Northern Ireland is not in the single market, and let us be clear about that. The protocol requires us to align our regulations on manufacturing of goods with those of the EU single market. We are out of the single market and we are out of the EU’s customs union, but we are required to abide by its rules. That is the position in which we find ourselves, and I say to the hon. Lady that the solution the Government are offering will enable businesses to continue trading with the European Union in a way that is helpful and beneficial for cross-border trade, for my farmers and for our agrifood processing industry. Things will still work for Northern Ireland, but the Bill will also ensure that we can trade freely with the rest of the United Kingdom, which we believe is fundamental to our rights as part of the Union.
In conclusion, we believe that this Bill has the potential to move us forward in resolving the problems created by the protocol. The regulations that will be put in place when this Bill is enacted are fundamentally important to delivering those solutions. The Bill will address the democratic deficit and mean that once again, all the United Kingdom has a say in how our money, our laws and our borders are controlled. Finally, it will enable us to restore political stability in Northern Ireland by seeing the political institutions back up and running again and protecting the Belfast agreement and its successor agreements, including St Andrews and New Decade, New Approach, which was the basis upon which we re-entered government. We will not re-enter government until we are clear and sure that what the Government are taking forward will deliver what we need for Northern Ireland.
The Minister for the Cabinet Office and Paymaster General (Michael Ellis)
I begin by thanking Members across the Chamber for their participation on Second Reading. I want to allow for thorough debate of the Bill in Committee, and to facilitate that, and because of the plethora of amendments and the number of people who wish to speak, I might not give way as much as I usually do. I want to facilitate the number of amendments and allow people to speak for themselves. I therefore want to make some good progress, because I am duty-bound to go through a large number of amendments in this opening speech.
As we have progressed to Committee—the House will know that the Government have generously allowed no fewer than 18 hours of debate time—it is necessary to reiterate some key points that go to the heart of why the Government have introduced this Bill. The Northern Ireland protocol, as the Committee knows, was agreed with the very best of intentions, but it is causing real problems, as has already been accepted across the House, for people and businesses in Northern Ireland, including trade disruption and diversion, significant costs and bureaucracy for traders. This legislation will fix the practical problems that the protocol has created in Northern Ireland. It will enable us to avoid a hard border, to protect the integrity of the United Kingdom and to safeguard the European Union single market.
Turning to the clauses under scrutiny today, clause 1 summarises the effect of the Bill and gives vital clarity on how it will function. The clause sets out three things: first, that the Bill provides clarity that the specific areas of the Northern Ireland protocol that are causing problems would no longer apply in domestic law; secondly, that it clarifies how other legislation, such as the Acts of Union, are affected by the Bill; and thirdly, that it provides vital clarity on the operation of the Bill and its position in relation to other domestic law.
Clause 2 underpins the essential functioning of the Bill by confirming that any part of the protocol or withdrawal agreement that has been excluded by the provisions of this Bill has no effect in domestic law. That is necessary and technical, but it is vital for the Bill to function, as without that provision, there may be a lack of clarity as to whether the existing protocol and EU law regime or the revised operation of the protocol has effect. Where this Bill or its powers do not exclude provision in the protocol or withdrawal agreement, that provision will continue to have domestic effect via the European Union (Withdrawal) Act 2018, as it does today.
Michael Ellis
I will give way in due course, if I may, because I will come on to the specific amendments, and it might be more prudent to give way at those points to the individual Members.
Clause 16 supports the functioning of the Bill by granting the power to make new arrangements in any cases where it becomes necessary to use the powers contained in clause 15. That means that new law can be made via regulations, if appropriate to do so, in relation to any element of the protocol or withdrawal agreement that has become excluded provision as provided for in the regulations made under clause 15. Clause 16 is vital to ensure the functioning of the Bill and prevent any gaps in the arrangements established underneath it. Without it, there is a risk of not being able to address properly any new issues arising from protocol provisions.
I thank Members for their contributions. The Government are committed to ensuring that the Bill goes through the appropriate scrutiny, with 18 hours set aside before the summer recess, while balancing the need for urgent action to ensure that protocol issues are rectified as soon as possible. Amendment 1, tabled by my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill), amends clause 1 and paves the way for his amendment to clause 26, which we will debate next week and which reflects a desire for Parliament to approve in a vote the provisions in this Bill before they can be commenced. I am cognisant of the fact that it was not two years ago that he famously introduced a similar amendment to another Bill, of which the Government broadly accepted the substance. However, the situation is not the same as it was two years ago.
Now, we face an urgent and grave situation in Northern Ireland, not a hypothetical one. We know that, as it stands, the EU is not prepared to change the protocol to resolve the problems we face—we have tried that repeatedly—and that there is no prospect of seeing a power-sharing Government restored in Northern Ireland if we are unable to tackle those problems. It is a simple fact. We need to be able to move swiftly, using the powers in the Bill to deliver the changes we propose and enable the protocol to operate sustainably.
Sir Robert Neill
I understand what my right hon. and learned Friend is saying, and I am grateful to him. However, if there is a need to act urgently, it is likely to be many months before the Bill completes its parliamentary passage. With respect, that is a contradiction. He is actually making a compelling case for using the article 16 safeguarding procedure.
Michael Ellis
I am grateful to my hon. Friend for his intervention. “Urgent” does not necessarily mean “immediate”; it means, “As soon as we can reasonably and practically do it.” I think he knows that. I will come to article 16 in due course, but we are going as fast as we can given when the House is sitting.
Additional parliamentary procedures after Royal Assent would risk delays to the regime coming into force, and undermine the certainty and clarity that we are looking to provide through the Bill. That would risk undermining the aim, which we all share, of seeing an Executive back up and running and delivering for the people of Northern Ireland, and risk real harm to businesses and citizens.
Michael Ellis
If I may, I will make some progress. The amendment is well-intentioned, but I hope the Committee will understand that our priority as a Government is to proceed in a way that best supports the functioning of the Belfast/Good Friday agreement and its institutions, which in this case means giving certainty to the people of Northern Ireland that the regime we propose under the Bill will be in place as quickly as possible. That is why I ask my hon. Friend the Member for Bromley and Chislehurst to withdraw the amendment.
Jesse Norman
Further to the point made by my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill), is the concession by the Government that “urgent does not mean immediate” not a plain acknowledgement of the fact that necessity does not apply, because it means there is no grave and immediate peril, which is one of the tests for necessity?
Michael Ellis
My right hon. Friend is conflating two issues. I will come to necessity in due course.
My hon. Friend the Member for Bromley and Chislehurst also mentioned article 16, and the reality is that it does not solve the problem at hand. It would only treat the symptoms without fixing the root cause of the problems. We need a comprehensive and durable solution to this urgent problem and certainty for the businesses and people of Northern Ireland.
Julian Smith (Skipton and Ripon) (Con)
On durable solutions, does my right hon. Friend agree that the only durable solution is for the EU to listen to what my right hon. Friend the Member for Lagan Valley (Sir Jeffrey M. Donaldson) articulated about the needs of Unionism and for a British Prime Minister, in place from September, not to go moaning to their counterparts, as has happened over the past two years, but to grip the issue and solve it politically?
Michael Ellis
Of course, it takes two sides to discuss such matters and come to a solution. I think it has been accepted by all who have spoken so far that there has been some intransigence on the European Union’s side. That is the clear reality. For example, there have been more than 300 hours of discussions between the parties, over 26 meetings involving my right hon. Friend the Foreign Secretary or her predecessor Lord Frost, and 17 non-papers. I am not sure how much more could be done in terms of negotiation; it does need two sides.
I will move on, as I have several amendments to address and I do not want to interfere with Members’ right to speak in due course.
On amendment 26 and new clause 8, tabled by the hon. Member for Oxford West and Abingdon (Layla Moran), she is right to raise the important issue of this Bill’s relationship with the UK’s international legal obligations. However, the amendment is not necessary. The Government have already published a statement setting out their legal position that the Bill is consistent with the UK’s international obligations. In line with the practice of successive Governments over several years, it summarises our position but does not set out the full detail of our legal advice. That is not something that any Government of any shade can do, and it is quite rare to give such a memorandum.
The statement makes it clear that the strain that the arrangements under the protocol are placing on institutions in Northern Ireland, and more generally on socio-political conditions, means there is no other way of safeguarding the essential interests at stake other than the Bill we propose. There is clear evidence of a state of necessity to which the Government must respond. As in other areas, it would not be prudent for the Government to publish evidence or analysis underpinning every point of legal detail—the lawyers in this House will know that that would be extremely inappropriate—particularly in advance of specific cases arising in potential future litigation. I therefore urge the hon. Lady not to move her amendment.
Layla Moran
The Minister is arguing that future litigation is why we cannot see the full legal advice, but it is precisely because future litigation is quite likely that this House deserves to see the full legal advice.
Michael Ellis
It is long-standing convention for very good reason that legal advice is not published in full. We know that, famously, from the Labour Government a couple of decades ago, when there was an enormous controversy about that. It stands as a very good reason, as I have discussed. However, we have published a memorandum on the matter that goes some way towards answering the hon. Lady’s question.
I move on to amendments 31 and 32 and new clause 10, tabled by the right hon. Member for Tottenham (Mr Lammy). The Bill is designed to bring swift solutions to the issues that the protocol has created in Northern Ireland. Those solutions are underpinned by the designation of elements of the protocol as “excluded provision”. Put simply, by excluding some elements of the protocol and withdrawal agreement in domestic law, the Bill is able to introduce, with the necessary certainty, the changes that are needed in Northern Ireland.
These amendments, through the conditions they would impose, would undermine the ability to exclude elements of the protocol and therefore undermine the entire operation of the Bill. The first condition in particular—that provision is excluded only if the EU and the UK agree to it—is obviously unworkable. Negotiations with the EU have so far been incapable of delivering the solutions that are needed, so to set that as a condition would clearly be dysfunctional. The second condition—that provision is excluded only if necessary as part of an article 16 safeguard—also fails to meet the needs of the situation. As I have said, article 16 has inherent limitations in its scope in that such safeguard measures could address some trade frictions, but not the broader identified impacts of the protocol.
In sum, the right hon. Gentleman’s amendments would unacceptably caveat the core operation of the Bill. In other words, they would be wrecking amendments preventing it from delivering the swift solutions in Northern Ireland that it is intended to provide, and that is why I ask him not to press them.
Hilary Benn (Leeds Central) (Lab)
The right hon. and learned Gentleman referred earlier to the three bits of the protocol that the Bill specifically prevents from being excluded—namely, rights of individuals, the common travel area and other north-south co-operation—which he described as particularly sensitive. Could he explain to the Committee why he does not regard article 18 of the Northern Ireland protocol, which relates to democratic consent in Northern Ireland, as equally sensitive? Why is that not covered by the exclusion? As I read the Bill, the Government could, if they wanted to, change article 18. Is that correct?
Michael Ellis
I hope to come to the right hon. Member’s point more specifically in due course, if he will bear with me.
I want first to turn to amendment 5. We have always been serious about negotiations, and we remain so. The whole matter is sensitive and the whole issue is one that we remain serious about. Our preference remains to resolve the issues with the protocol through negotiations, and the Bill provides for this, so I welcome and endorse the sentiment underlying the amendment. It is clear, however, as I have said—I have to emphasise this, because it is not emphasised often enough in my view—that there have been over 300 hours of talks to date, in which the United Kingdom has shared 17 non-papers with our counterparts in pursuit of a solution.
Michael Ellis
I will not give way.
The European Union is not willing to entertain the changes that are necessary to fix the issues with the protocol, so the Government’s judgment is that, absent a change in stance from the European Union, we have to be realistic. Good faith negotiations to resolve the issues with the protocol have already been exhausted. As I say, there have been 26 separate meetings with the Foreign Secretary and Lord Frost.
Amendment 5 would require that this judgment be endorsed by both Houses of Parliament and, where relevant, the Northern Ireland Assembly, but this would not be appropriate.
Michael Ellis
I am not giving way, as I have indicated. I will give way in due course.
It has long been the position that the Northern Ireland protocol and negotiations regarding it are, like any other treaty, a matter for the Government, operating under the foreign affairs prerogative. The Executive must retain that prerogative for very good reasons. Because of the protocol, there is anyway no Northern Ireland Assembly currently sitting to provide the consent that this amendment would require. This Bill aims specifically to restore stability in Northern Ireland and a working Assembly—that is the very essence of it—so there is an essential flaw in the amendment’s logic in requiring the Assembly to approve the operation of the Bill. That is why I ask the hon. Member for Foyle (Colum Eastwood) not to press the amendment. Of course, the Government will continue to update Parliament and the Northern Ireland Executive, when they return, on the status of talks with the EU regarding the protocol, and to consult stakeholders in Northern Ireland on the operation of the Bill.
Michael Ellis
I am very conscious of the time and the number of amendments I have to get through, but I will give way again.
Julian Smith
Just on a point of clarification for the Committee, if the Northern Ireland Assembly is not up and running, the provisions in the Bill state that when the consent vote comes, the Assembly will be recalled and there will be a vote on that consent. I say that just so there is no lack of clarity for the Committee about the current provisions within the consent mechanism.
Michael Ellis
I thank my right hon. Friend for making that point.
With your permission, Dame Eleanor, I will speak to amendment 25 and new clause 7 together, which are in the name of the hon. Member for North Down (Stephen Farry). The Bill is designed, as I have said, to bring swift solutions to the issues that the protocol has created in Northern Ireland. These solutions are underpinned by the designation of elements of the protocol as “excluded provision”. Put simply, it is by excluding some elements of the protocol and withdrawal agreement in domestic law that the Bill is able to introduce, with the necessary certainty, the changes that are needed in Northern Ireland. By requiring the prior approval of the Northern Ireland Assembly, the amendments would undermine the ability to exclude elements of the protocol, and therefore undermine the entire operation of the Bill. That is unworkable. Because of the protocol, no Northern Ireland Assembly is currently sitting to pass the approving resolution that the amendment would require. The Bill as introduced aims specifically to restore stability in Northern Ireland, and a working Executive and Assembly. Therefore, in requiring the Assembly to approve the operation of the Bill, there is an essential flaw in the logic of the amendment.
As the hon. Member for North Down will be aware, the Sewel convention applies to this Bill, as it does to all Bills of this Parliament that intersect with devolved competence. I confirm that in the absence of functioning institutions, senior officials in the Foreign Office have already made contact with the head of the Northern Ireland civil service regarding legislative consent, and we hope to reach a positive solution as soon as the institutions are restored. By contrast, the amendment would allow the Northern Ireland Assembly to constrain the UK Parliament’s power to legislate, even if that legislation related to a reserved matter. That, of course, is wholly inappropriate under devolution arrangements. The Government will consult stakeholders in Northern Ireland, including Members of the Assembly, on the operation of the Bill during its passage and thereafter. I therefore ask the hon. Gentleman to withdraw his amendment.
Stephen Farry
The Minister has mentioned the word “logic” on several occasions and linked the necessity of the Bill to the restoration of power sharing. Does he recognise that there is a real danger in setting a precedent of linking the two together? Have the Government considered a scenario in which Sinn Féin reacts to the Bill and, very regrettably and irresponsibly, withdraws from power sharing? Where does that leave us? Are we any better off? Are we not in a different form of crisis?
Michael Ellis
I will come on to the hon. Gentleman’s question—forgive me; I was distracted. Would he reiterate his point?
Stephen Farry
I will happily do so. I am talking about a situation in which the Government have linked the passage of the Bill to the restoration of power sharing in Northern Ireland. I am asking on a point of logic: if a dangerous precedent is set by that, how do the Government respond to a situation where, as a reaction to the passage of the Bill, Sinn Féin, very irresponsibly and regrettably, walks out from power sharing devolution and leaves us no better off overall?
Michael Ellis
My understanding is that Sinn Féin is willing to go back in and has not set preconditions. That is the actuality of the position, rather than the hypothesis raised by the hon. Gentleman.
Michael Ellis
Forgive me, but may I move on to the issue of necessity, since a number of Members have mentioned that and it may be relevant? On amendment 6, I understand the desire of the hon. Member for Foyle for the Bill to be clear about the powers that it confers to the Government. However, it is essential that the Bill confers necessary powers for the Government to deliver a durable solution to the serious difficulties that the current implementation of the protocol is causing. Those include, as we know, the undermining of the functioning of institutions established by the Belfast/Good Friday agreement.
Amendment 6 confuses an international law concept—the doctrine of necessity, which is long established and well understood—and a domestic statutory one, which concerns the appropriate tests for Ministers exercising powers given to them by Parliament. It is essential that the Bill delivers clarity and certainty for the people of Northern Ireland, and amendment 6 would undermine that. I add the caveat that it is the responsibility of Government to deliver a durable solution to the issues the protocol is causing, in order to protect the Belfast agreement. Any unnecessary additional conditions to the exercise of the powers necessary to deliver that solution will only reduce the clarity and certainty of the Bill and what it does to provide for the people of Northern Ireland. That would undermine our ability to get the Executive back up and running, which is a desire I know we all share. I therefore ask the hon. Gentleman to withdraw the amendment.
Amendments 7 and 14 were also tabled by the hon. Member for Foyle. The Bill will fix the practical problems that the protocol has created in Northern Ireland. That avoids a hard border, protects the integrity of the UK and safeguards the European Union single market. I am therefore entirely sympathetic to the sentiment behind the amendments. The Government are motivated by the same concerns that underlie them. We are moving quickly with this Bill—as quickly as possible. That is our focus, because the situation is pressing.
The power in clause 15, which among other things would allow Ministers to reduce the amount of the protocol that is excluded, is designed to ensure that we are able to get the final detailed design of the regime right. Its use is subject to a necessity test against a defined set of permitted purposes. It is essential that that power can be used quickly if needed. Amendments 7 and 14 would pre-emptively prohibit certain uses of the power, but I submit to the Committee that the proper way to scrutinise its use is in this place. All regulations are subject to scrutiny, under either the negative or the affirmative procedure, so it is not as if anything would be set aside without that scrutiny. The hon. Gentleman’s amendments would also do nothing to resolve a potential clash between the permitted and the unpermitted—for example, a security and global market access intention—so they would risk tying the Government’s hands behind their back just when they would need to be most agile. For those reasons, I ask him to withdraw amendments 7 and 14.
Sir William Cash
I am listening with great interest to the series of amendments that my right hon. and learned Friend has been dealing with and asking Members to withdraw. Has he noticed that amendment 1 is neither chicken nor egg, and that there is no reference in it to any evidence test? I am slightly surprised that at the moment, we are not quite clear as to whether it is going to be suggested that that amendment be withdrawn.
Michael Ellis
I am sure that my hon. Friend the Member for Bromley and Chislehurst will have heard what my hon. Friend has said.
I will now turn to amendment 27 and new clause 9, tabled by the hon. Member for Walthamstow (Stella Creasy). The Bill is designed to provide swift solutions to the issues that the protocol has created in Northern Ireland. Those solutions are underpinned by the legal designation of elements of the protocol as excluded provision. Put simply, it is by excluding some elements of the protocol and withdrawal agreement in domestic law that the Bill can introduce the changes that are needed in Northern Ireland with the necessary certainty. Through the conditions they would impose, the hon. Lady’s amendments would undermine the ability to exclude elements of the protocol, and therefore undermine the entire operation of the Bill. I would also argue that they are unnecessary, because the actions they require are already being taken in practice during the passage of the Bill. By voting on its passage, both Houses of Parliament have an opportunity to indicate their approval for the principle of excluding elements of the protocol.
The Government have already clearly set out in the statement of 13 June that we consider the legislation to be lawful in international law. We have also already been clear on why we are not using the article 16 safeguard mechanism: it has inherent limitations on its scope, in that such safeguard measures could address some trade frictions but not the broader identified impacts of the protocol. It is therefore unnecessary to oblige the Government to repeat those statements before exercising the powers conferred by the Bill, which is why I ask the hon. Lady to withdraw her amendments.
Stella Creasy
The Minister has said that my amendments are not necessary. That is very welcome, because new clause 9 requires the Government not just to tell us that they believe they are acting within international obligations, but to set out how, so that the House has a chance to confirm that it is not in breach of those obligations. If that is not necessary, can the Minister set out for us how he believes the legislation is in line with international obligations—not that it is, but specifically how?
Michael Ellis
I commend to the hon. Lady the legal memorandum that was published by the Government. It is, I think, only the second time that a Government of the day has published such a legal document, and it is exceptionally useful. We cannot publish the full legal advice—no Government can do that.
I will now turn to amendment 8, tabled by the hon. Member for Foyle. I certainly sympathise with the intention of the hon. Gentleman’s amendment, but I reassure him that it is also entirely unnecessary. The Government have no intention whatever to use the power in clause 15 to alter the operation of the domestic consent mechanism, which I think answers the point that was made earlier on the Opposition Benches.
John Redwood (Wokingham) (Con)
Has the Minister ever heard the Opposition point out that the EU is breaking the protocol by diverting our trade and undermining the Good Friday agreement? Has he ever heard them asking to see the legal advice that the EU purports to use when it is so clearly violating the protocol?
Michael Ellis
My right hon. Friend makes an excellent point, as usual. I have to say that I have never heard those requests.
Amendment 10, again tabled by the hon. Member for Foyle, relates to the Northern Ireland Human Rights Commission and the Equality Commission for Northern Ireland. They are, of course, important and well-respected institutions. They were established on the basis of the Belfast/Good Friday agreement. They undertake important duties and any change to their remit should not happen arbitrarily. The Government engage regularly with the commissions and they have powers to provide advice to the Government on issues arising from article 2 of the protocol. The Government have engaged broadly on the issues created by the protocol with stakeholder groups across business and civic society in Northern Ireland, the rest of the United Kingdom and internationally. In fact, the engagement has been considerable. As the Committee will know, the Bill provides specific powers to establish a new regime in Northern Ireland which addresses the issues with the current operation of the protocol. We are consulting stakeholders on the detail of how the powers are to be used. We will give plenty of notice to those affected in due course. Therefore, amendment 10 would compel the Government to do what, in many cases, they already intend to do.
We are moving quickly with the Bill because the situation in Northern Ireland is pressing. The power in clause 15 that would, among other things, allow Ministers to reduce the amount of the protocol that is excluded is designed to ensure that we can get the final, detailed design of the regime right. Its use is subject to a necessity test against a defined set of permitted purposes. It is designed to provide stakeholders in Northern Ireland with certainty that the Government will deliver the solutions that we have outlined to the problems that the protocol is causing.
It is essential that the power can be used quickly if needed. Although, in normal cases, the Government will of course engage with stakeholder groups in Northern Ireland, there may be occasions when the urgency of a situation means that the Government need to act swiftly. This amendment risks tying the Government’s hands behind their back, and that is why I ask the hon. Member for Foyle not to press it.
Amendment 40 is in the name of the right hon. Member for Tottenham, who I do not think is in his place. This is the first of a number of amendments from him in the same vein, to which the Government have a single view. The amendment would replace the test of “appropriateness” in the use of the Bill’s delegated powers with one of “necessity”. Members should not confuse this with the international law doctrine of necessity, as the right hon. Member is doing.
The question covers well-trodden ground. Members may remember the extended debates on this topic during the passage of the European Union (Withdrawal) Act 2018. The powers there are similar to those in this Bill, the European Union (Withdrawal Agreement) Act 2020 and the European Union (Future Relationship) Act 2020. I note that the House and their lordships in the other place ultimately accepted that the word “appropriateness” in this context was, in fact, appropriate.
The word “necessary”, which this amendment seeks to import, is a very strict legal test for a court to interpret. Where there are two or more choices available to Ministers as to what provision is appropriate to address the issues that the protocol has created, arguably neither one is strictly necessary, because there is an alternative. Ministers need to be able to exercise their discretion to choose the most appropriate course. That is why the word “appropriate” is the correct word.
There are clearly multiple choices in how to replace the elements of the protocol that no longer apply in our domestic law. The Government must propose that which would be the most appropriate choice. That is why we have chosen that word. I therefore ask the right hon. Member not to press his amendment.
The Chairman of Ways and Means (Dame Eleanor Laing)
Order. Before the Minister comes to his next point, I draw to his attention that a great many people wish to speak in the debate. A lot of people have a right to do so because they are proposing amendments to which I would like to give them time to speak. The Minister has had the floor for 41 minutes. I hope that he might soon be able to draw his remarks to a close, possibly by addressing just the essential parts without the peripheral parts. In that way, there might be enough time, as we have only an hour and a half left of the debate.
Michael Ellis
I am in full agreement with you, Dame Eleanor, and I am coming rapidly to a conclusion with my points on new clauses 1, 2 and 3, which relate to the Government’s approach to environmental protection and principles as related to the Bill. They introduce new provisions to the Bill that require Ministers of the Crown to provide statements on the environmental impacts of any powers taken under the Bill prior to being able to exercise those.
I understand the desire of the hon. Member for Foyle to ensure that our high environmental standards are upheld across the United Kingdom. In the UK, we already have some of the highest standards of environmental protection in the world. We have no intention of weakening or lowering those standards. The Government are proudly committed to enshrining better environmental protections in law to demonstrate a firm commitment to the highest environmental standards, as we did in the Environment Act 2021.
The UK Government and the Northern Ireland Executive are already held to account by the independent Office for Environmental Protection, which was created under the Act and has a statutory duty to monitor and report annually on progress on improving the environment in accordance with the UK Government’s environmental improvement plans. The OEP also monitors the implementation of, or any proposed changes to, environmental law, and may hold the Government and public authorities to account for serious failures to comply with it. In addition, the Act already creates a duty on Ministers to be guided by five internationally recognised environmental principles when making policy.
In that context, new clauses 1, 2 and 3 are not necessary, as their purpose is served by existing protections, both practical and legislative. I therefore ask the hon. Member for Foyle not to press the new clauses.
May I return very briefly to the consent mechanism, which operates on an international level? We are committed to the 2024 consent vote, which was a principal goal of the Government’s negotiation, as I alluded to a short time ago.
Peter Kyle (Hove) (Lab)
I am grateful that you are in the Chair today, Dame Eleanor, and that I have the opportunity to speak in this debate. As the new Secretary of State, the right hon. Member for North West Cambridgeshire (Shailesh Vara), is in his place, may I start by welcoming him to the job? I hope that we will have the chance to have exchanges into the future. As I have already reassured him, when this divisive period—which includes the contents of this Bill—passes, I hope that there will be more opportunity to find common ground. His predecessor, the right hon. Member for Great Yarmouth (Brandon Lewis), was present a little earlier; that would have been a good opportunity to pass on my sincere gratitude for the way in which he dealt with me when he was in the Department.
Clauses 1 to 3 of the Bill deal with the intention and the main powers. New clause 10, which I will be pushing to a vote, attempts to inject at least some respect for the rule of law into the Bill. The Opposition are also supporting the SDLP’s amendment 8.
The Bill tells us everything we need to know about the Tory party of today, because it represents an abdication of all responsibility—the responsibility to play by the rules, the responsibility to be honest about our actions and their consequences, the responsibility to honour our commitments made on behalf of our country. On Second Reading, the Foreign Secretary declared herself a patriot. Patriotism includes our flag, of course, but it is also about our values. To me, those values should unite all democratic politicians, irrespective of political party. They include respect for the rule of law and equality before it; respect for human rights and the institutions that defend them; and respect for commitments, foreign and domestic, voluntarily entered into and collectively applied.
It says a lot that simply describing those values sounds like a criticism of the Conservative party, the current Prime Minister and almost certainly the next. It is most certainly a criticism of the Bill, which not only breaks convention—the law—but betrays our values as a Parliament and as a country. The Bill exists because the Prime Minister was not honest about the full nature of the Brexit deal. That was followed by a manifesto that promised that his deal was “oven-ready” and vowed to the public that there would be no renegotiations of it.
It is easy for Ministers to dismiss my criticisms, because they are the words of an Opposition spokesman, so how about the words of one of their leadership contenders—of someone running to be their next leader and our Prime Minister? All the contenders have trashed the Tory record in office, so let us take just the most recent example. This morning, the right hon. Member for Portsmouth North (Penny Mordaunt) said:
“The British people…are fed up with us not delivering, they are fed up with unfulfilled promises”.
She is right, and the Conservative manifesto promise not to renegotiate is presumably part of the problem that she describes.
Jim Shannon
The debate was not widened by me; it was widened by somebody else.
Let me be clear: I voted against that agreement, but I listened to its proponents tell us that it protected Unionism. One of those proponents—David Trimble, who sits in the other place—well understands the issue and has outlined how the Northern Ireland protocol has adversely impacted the Good Friday agreement, but we are asked to sit in silence when our economy, our buying power and our very identity is decimated by the protocol.
The hon. Member for Gordon (Richard Thomson) had the opportunity to visit my constituency and understands the importance of fishing there. The Anglo-North Irish Fish Producers Organisation and the Irish Fish Producers Organisation are clear that the Bill will do away with the tariffs and red tape. How can it be right for a fishing boat to leave Portavogie, Ardglass or Kilkeel, get out of the harbour and get 2 miles off the shore, and pay a tariff on anything it brings back? The Bill will stop that. For those in Portavogie in my constituency of Strangford, and for those in Ardglass, Kilkeel and other places, I look forward to the days whenever we can grow our fishing sector, and create more jobs, opportunities and prosperity.
As the House discusses this legislation to begin the process to rectify the gross betrayal of Northern Ireland to get Brexit done, I ask Members please to remember the truths of where we are. I understand that there are those who did not want the referendum result. I understand that some want to remain tied to the EU. I understand the threats that are coming from Europe and latterly from the US. But the question is easy: are we a part of the United Kingdom of Great Britain and Northern Ireland? If so, the protocol must go. The Bill does not satisfy all that I want to see, but it does begin the journey. I am asking the Committee to travel with us, not against us: to call time on the kicking we have gotten as a political football between the EU and the UK. The EU has not negotiated common sense after 300 hours of discussions; it was never going to, or it would have happened already.
The reason we are here today is the Northern Ireland Protocol Bill, which was put forward by the Government and which my party fully supports. We need to make the changes. It is time to legislate this common sense to allow us all to move on together. The quicker that happens, the better. The people of Strangford want it and I want it, being British. I think all the people of Northern Ireland here are British, but even those who are not want it as well.
The Financial Secretary to the Treasury (Lucy Frazer)
I wish to begin by thanking all Members who took part in the debate on Second Reading as well as in the debate in Committee that preceded this one. As we progress to the second day of the Committee stage, I want to reiterate some of the key points that go to the heart of why the Government have introduced this Bill.
The Northern Ireland protocol was agreed with the best of intentions. However, as the right hon. Member for East Antrim (Sammy Wilson) has passionately set out, reinforced by the hon. Member for Strangford (Jim Shannon), unfortunately it is causing real tensions and problems for the businesses and people of Northern Ireland, including trade disruption and diversion, costs and bureaucracy. This legislation will fix the practical problems that the protocol has created in Northern Ireland. It will enable us to avoid a hard border, protect the integrity of the UK and safeguard the EU single market.
Let me address the clauses in turn. The Government’s intention is to introduce a new and different regime, including a green lane for goods remaining in the UK and a red lane for those destined for the EU. Clause 4 will allow the UK Government to implement such a regime for goods remaining in the UK and entering Northern Ireland. The clause, therefore, disapplies in domestic law certain EU law requirements and, with clauses 5 and 6, provides the powers for Government to remove many of the burdens currently placed on businesses by the extensive customs and regulatory processes that are required under the existing Northern Ireland protocol.
Clause 4 also defines “qualifying movements” that will be able to enter our proposed green lane. The subsections remove current burdensome processes for prescribed qualifying movements of UK or non-EU destined goods, and there is a power to define UK or non-EU destined goods. Clause 4 is central to our intention to rationalise the processes for goods moving into Northern Ireland. We have been clear that we do not believe it is appropriate to continue to require full customs and regulatory processes when goods are not even destined for the EU. This clause is part of what will allow us to put in place a more sensible and proportionate regime.
Our green lane and red lane proposals will form the basis of that regime. Engagement with businesses on the detail of the regime is already under way. We know that it is important that we listen carefully. It is the powers in clauses 4, 5 and 6 that will allow us to put it in place.
Hilary Benn
In respect of supermarket deliveries to Northern Ireland, it is really dead simple: those supermarkets sell only in Northern Ireland, so they would, of course, be appropriate for the green lane. But given the very large number of other businesses that send goods across to Northern Ireland, how do the Government propose to identify those businesses that are sending goods that are destined for the Republic and those that are sending them into Northern Ireland where they may be processed and then moved on to the Republic of Ireland? How will that work in practice?
Lucy Frazer
Obviously, this is a matter that the Government have been considering very carefully. There are goods, as the right hon. Gentleman says, that will obviously be going to Northern Ireland. Businesses will also know that there is a significant category of goods that will not, and then there are the goods that may not be certain at all. That is something that the Government will be discussing with businesses during the consultation over the summer period, and it will be set out how those goods are dealt with. The hon. Member for Strangford asked us about reducing paperwork, and I can say that, of course, that is the intention of the future regime.
Clause 5 ensures that a Minister of the Crown has the power to make regulations in relation to any provisions to which clause 4 relates, with the exception of customs matters, which are dealt with in clause 6. Clause 5 is essential in enabling a Minister of the Crown to deliver the UK’s proposals for a new green and red lane regime. Taking a power to provide for the regime is required, and the precise detail of the regime will be guided by consultation with stakeholders.
Clause 6 ensures that the Treasury or Her Majesty’s Revenue and Customs can make regulations in respect of customs matters. It will ensure that, once this Bill gains Royal Assent, the Departments can put in place the arrangements needed to operate a coherent customs regime.
Clause 24 sets out the Parliamentary procedure to be followed in respect of the exercise of regulation-making powers related to tax and customs matters in this Bill. The clause provides that regulations making provision in relation to tax and customs matters are to be made by statutory instrument. Regulations would be subject to the affirmative or negative procedure, depending on their effect. These statutory instruments would come before the House of Commons only in line with the exercise of Commons financial privilege, usually given to tax matters.
Before I turn to the amendments, I will touch on a number of points that have been made by hon. Members across the House. My hon. Friend the Member for Amber Valley (Nigel Mills) rightly said that the Government have been very generous and practical in our approach to border checks, not only in relation to Northern Ireland, but more broadly. He is also right to say that we have tried to negotiate a way forward with the EU. We have spent 18 months doing that. We have spent hundreds of millions of pounds on the trader support service, we have spent 300 hours in negotiations and we have shared 17 non-papers. Unfortunately, the EU has not come to an arrangement with us, and that is why I stand at this Dispatch Box today.
I dispute what the hon. Member for Hove (Peter Kyle) says, that it is clear that the two positions can be reconciled. It is clear that they cannot. We have tried to do that, but we have not succeeded. The Foreign Secretary invited Vice-President Šefčovič to the Joint Committee when we announced this legislation. However, the EU proposals do not go forwards; they go backwards. Under the EU’s suggestions, sending a parcel will involve completing a form with more than 50 data fields. A grandmother who wants to send a gift to her daughter in Belfast will need to complete a customs declaration and a pet owner will have to pay £280 for a certificate to take their pet. I welcome the support for this Bill from the right hon. Member for East Antrim and the hon. Member for Strangford.
Dealing now with the amendments, I will first respond to amendment 24, tabled by the hon. Member for North Down (Stephen Farry). I appreciate the intention of his amendment. However, it would be contrary to one of the core purposes of the Bill, which is to disapply in domestic law those parts of the Northern Ireland protocol that require goods remaining in the UK or not destined for the EU to complete burdensome processes.
The amendment would also mean that the “at risk” test would be left in place, which would mean that some businesses moving goods between Great Britain and Northern Ireland would still be required to pay customs duty even when those goods remained in the UK. As the hon. Gentleman will be aware, the Government’s intention is to put in place a different regime, one that is more proportionate and would remove the unnecessary burdens on business created by the protocol. I hope he will therefore withdraw his amendment.
On the points the hon. Gentleman made about the vet agreement, the UK remains open to a negotiated solution. We have put forward a number of practical solutions to resolve outstanding issues on SPS, but the UK has also been clear that we will not commit to dynamic alignment, which would compromise our sovereignty.
I turn now to amendments 34 and 35 in the name of the right hon. Member for Tottenham (Mr Lammy) . The Minister for the Cabinet Office and Paymaster General, my right hon. and learned Friend the Member for Northampton North (Michael Ellis), addressed this issue briefly in the previous debate, so I will not labour the point. Replacing the requirement for a Minister to consider that regulations are “appropriate” in the use of the Bill’s delegated powers with a test of necessity risks our ability to put in place the right solutions to the problems the protocol is causing. In these clauses, that would potentially circumscribe the ability to design a green lane that will preserve the unity of the UK internal market. I expect the right hon. Gentleman will not agree with me, but I ask him to withdraw his amendments.
Amendments 15 to 18 and new clause 5, tabled by the hon. Member for Gordon (Richard Thomson), would remove the Government’s proposed parliamentary procedures for statutory instruments under the Bill relating to tax and customs matters. The amendments attempt, in some cases, to replace them with a new, so-called super-affirmative procedure. In other cases, the amendments attempt to limit them to the draft affirmative procedure, removing the possibility of the made affirmative procedure in cases of urgency.
The drafting of these amendments is defective, making it unclear precisely what procedure is intended to apply to different categories of regulations. However, I will address the principle behind them. As Members will know, true super-affirmative procedures for statutory instruments are vanishingly rare. The normal affirmative and negative procedures for SIs provide effective scrutiny for the House. The hon. Member’s proposed procedure is long, requiring months of consultation on draft SIs, and procedurally complex, but ultimately does little more than envisage a Committee of the House making recommendations and preventing an SI coming into force pending a vote by this House. The amendments would require the Treasury or HMRC to make statements about any representation they have received on the draft recommendations.
I hope I can reassure the hon. Member that the Government intend to consult on the policy—indeed, work is under way—and the usual tools of parliamentary scrutiny will allow him to seek answers about this from me and my ministerial colleagues. His amendments would simply slow down solving the problems facing the people of Northern Ireland and create a muddling precedent on perfectly effective parliamentary procedures. I therefore urge him to withdraw his amendments.
New clause 4, tabled by the hon. Member for Foyle (Colum Eastwood), would prevent the exercising of powers in this Bill until an agreement has been sought on reducing sanitary and phytosanitary checks in the EU-UK Joint Committee—the joint decision-making forum overseeing implementation of the UK-EU withdrawal agreement. In many ways, I agree with the spirit of what the new clause seeks to achieve, but where we differ is that I recognise that we have already exhausted this option. The Government have engaged extensively with the EU on reducing the burden of sanitary and phytosanitary checks both through the Joint Committee and through official-level channels. As I mentioned, we have had over 300 hours of ministerial and official discussions and spent a significant amount of money. Nevertheless, we were still prepared to get round the table with the EU, and we held further talks through the autumn to the turn of the year.
However, as we set out in the statement by my right hon. Friend the Foreign Secretary on 17 May, the EU has simply shown insufficient flexibility. Although the EU published proposals in a non-paper on SPS in October 2021 that claims that checks carried out on SPS goods moving from GB to NI will be reduced by 80%, our own analysis and business feedback shows that this would not be the case in practice, and that a large volume of SPS goods staying in Northern Ireland will still face documentary, identity and physical checks. I understand why the new clause has been tabled, but regrettably we have had to conclude that the solutions put forward by the EU are not sufficient. It is for the EU to come back to the negotiating table or for the UK Government to get on with the job. I invite the hon. Member to withdraw his new clause.
The Bill provides a comprehensive and durable solution to the existing problems with the Northern Ireland protocol. As I said, the protocol was agreed with absolutely the best of intentions, but it is creating real problems on the ground for people and businesses in Northern Ireland. It is creating trade disruption and diversion, and increasing costs and bureaucracy for traders. The Bill will fix those practical problems. It will enable us to avoid a hard border and it will safeguard the EU single market. I therefore recommend that the clauses in this group stand part of the Bill.
Question put, That the amendment be made.