Tuesday 11th October 2022
(2 years, 1 month ago)
Lords ChamberNorthern Ireland Protocol Bill 2022-23 View all Northern Ireland Protocol Bill 2022-23 Debates Read Hansard Text Watch Debate Amendment Paper: Committee of the whole House Amendments as at 20 July 2022 - (20 Jul 2022)
Lord Ahmad of Wimbledon
That the Bill be now read a second time.
Relevant documents: 7th and 12th Reports from the Delegated Powers Committee
The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)
My Lords, I first thank all noble Lords with whom—together with my noble friend Lord Caine and my noble and learned friend Lord Stewart—I have been engaging on this Bill. While there may be different perspectives and views, I am as ever grateful for the courtesy extended to myself and my colleagues and for the engagement that we have had through our conversations.
This Government remain very much committed to upholding the Belfast/Good Friday agreement, which has, as we all acknowledge, for almost 25 years brought peace and political stability in Northern Ireland. Irrespective of the speeches that will follow, I believe that all noble Lords without exception share strongly in this key principle. The Northern Ireland protocol was also agreed with the objective of protecting the Belfast/Good Friday agreement in all its dimensions and, indeed, in avoiding a hard border on the island of Ireland. That was key. Furthermore, it was also agreed by both sides that it would not undermine the wish of the United Kingdom and the interests of all parties in Northern Ireland.
In practice, however, the Northern Ireland protocol is undermining the delicate balance of the Belfast/Good Friday agreement and, as we all know, the functioning of the power-sharing institutions in Northern Ireland. Indeed, the Executive are not functioning at all. The protocol has diverted east-west trade between Northern Ireland and Great Britain and it is creating fractures within the UK internal market. Again, I am sure all noble Lords would agree that this cannot be right and cannot continue. It is also impacting negatively on the everyday lives of people in Northern Ireland. It has weakened their economic rights and contributed to the sense of a democratic deficit in Northern Ireland—a point to which I will return shortly.
This Bill gives the Government powers to address these urgent political challenges by seeking to fix the practical problems created by the protocol. It allows the Government to restore the balance of the original objectives of the protocol, thereby avoiding a hard border on the island of Ireland and—as I know to be important to all—protecting the integrity of the United Kingdom internal market while also protecting the EU single market.
The Government remain clear—a point that, again, I have shared with colleagues through engagement—that our preference would be to reach a negotiated solution to the protocol with our partners in the European Union. We have always said that we remained open to constructive dialogue and discussions with the European Union on the Northern Ireland protocol. I assure all noble Lords that this remains the case today.
Within the past fortnight, my right honourable friend the Foreign Secretary and EU vice-president Maroš Šefčovič have spoken to reiterate their shared commitment to exploring potential solutions on this very issue. I am pleased to take this opportunity to report to the House in response to a question that I received from noble Lords in advance of Second Reading, including from my noble friend Lady Altmann: I can confirm that officials from the UK and the European Union are now conducting further technical discussions on the protocol.
As my right honourable friend the Foreign Secretary agreed with Vice-President Šefčovič when they spoke recently, both sides—the UK and the EU—want to look for solutions to protect the Belfast/Good Friday agreement. That is another sentiment that I know has been echoed in contacts with the Irish Government, including between my right honourable friend the Foreign Secretary and the Irish Foreign Minister, Simon Coveney, most recently last week and over the weekend.
However, the situation on the ground in Northern Ireland remains urgent, and the Government cannot allow that to continue. We must ensure that the Government retain the ability to act in all scenarios that prevail. It is a fact, as we all know, that Northern Ireland has been without a fully functioning power-sharing Executive since February this year. The political settlement in Northern Ireland is based on respect between all communities and the consent of those communities. I know we all recognise the huge insight of a number of noble Lords and colleagues who were there when that agreement was set up and initiated. However, the protocol in its current form is undermining that delicate balance, as I said earlier, and is contributing to ongoing political instability.
The Government remain committed to the restoration of the power-sharing devolved institutions, including the Northern Ireland Assembly, the Northern Ireland Executive and the North/South Ministerial Council. We remain equally committed to preserving Northern Ireland’s place within the UK and removing barriers to east-west trade. This is particularly critical during the challenging economic period that has been fuelled by President Putin’s illegal invasion of Ukraine. I assure all noble Lords that the Government will continue to engage, as the Bill proceeds through your Lordships’ House, with the remaining parliamentary stages of the Northern Ireland Protocol Bill, while, I also assure noble Lords, continuing to conduct technical talks and explore shared solutions with our EU friends and counterparts.
I turn to some of the substantive provisions within the Bill. The Bill allows the Government to fix specific problems with the protocol by granting powers to make changes in four main areas: first, to provide and improve the customs and sanitary and phytosanitary regime; secondly, to create a new dual regulatory model; thirdly, to ensure that Northern Ireland can benefit from UK policies on subsidy control and VAT; and, fourthly, to legislate for new governance arrangements that address the democratic deficit created by the protocol in its current form.
On customs and SPS, the Bill allows the Government to introduce a green-lane and red-lane system to remove barriers to internal UK trade. There will be no unnecessary paperwork, checks or bureaucracy on goods staying in Northern Ireland as they will move via the green lane. Businesses will be able to use this green lane as part of a trusted-trader scheme. Goods destined for Ireland or the rest of the EU will go through full EU checks, controls and customs procedures via the red lane.
The UK is committed—a point that again several noble Lords raised with me during discussions—to a comprehensive approach to data sharing with the EU under our new model, a key ask that the EU has made of the UK. We would continue to share comprehensive data on the operation of the trusted trader scheme and on goods movements between Great Britain and Northern Ireland. This would of course enable the UK and the EU to jointly monitor the risk of abuse and allow for risk-led intelligence sharing and co-operation. Data-sharing arrangements would be delivered through a purpose-built IT system, with information available to the EU in real time. This would include standard commercial data for green-lane movements and more than 110 fields of data collected through customs declarations for red-lane movements. Any trader found abusing the green lane would incur penalties and face ejection from the trusted trader scheme. We fully understand and respect the legitimate concerns of our EU counterparts and friends that the single market should be protected. These provisions in the Bill will achieve that.
The Bill will also establish a dual regulatory regime so that businesses can choose between meeting UK or EU standards, or both, should they wish to do so. This will remove the barriers to goods made to UK standards being sold in Northern Ireland and cut the processes that drive up costs for business, particularly at this time. It will help address divergence between the two parts of the UK internal market. Anyone who trades into the EU single market will still have to do so according to EU standards. This will also protect the EU single market and we are committed to ensuring that firms in Northern Ireland that benefit from access to the EU single market retain that access.
The Bill will also ensure that the Government can set UK-wide policies on subsidy control, VAT and excise, so that people in Northern Ireland can benefit from the same policies as the rest of the United Kingdom. For example, at present, people in Northern Ireland are not able to benefit from VAT reliefs on energy-saving materials for homes. These reliefs help fight the cost of living and climate crises and pose no risk to the EU single market but cannot be implemented in Northern Ireland because of the protocol. At a time when a warm home and clean and secure energy are more important than ever, is it right that a typical family in Northern Ireland needs to find nearly £300 more to install solar panels? Surely that cannot be right.
Tax and spend are essential sovereign functions, especially in Northern Ireland where the UK Government play a significant role in the local economy. We will also maintain the VAT arrangements in the protocol, which support trade on the island of Ireland while ensuring Northern Ireland can still benefit from the freedoms and flexibilities available in the rest of the United Kingdom.
I turn now to the governance provisions in the Bill. Rules applying under the protocol are currently made without any say for Northern Ireland representatives and with no means to adapt them for the Northern Ireland context. In some cases, this has uniquely disadvantaged Northern Ireland, yet the rules have not been subject to any dialogue beforehand. This has been cited as symptomatic of the significant democratic deficit that I referred to. The proposals in the Bill will give businesses and consumers new flexibilities and freedoms to ensure that they are not bound to follow rules over which they have no say. Furthermore, prominent members of the unionist community in Northern Ireland have also expressed serious reservations about the role of the European court in overseeing the operation of the protocol. Unlike ordinary international treaties, disputes under the protocol can be taken to, and settled by, the Court of Justice, the court of one of the parties. The Bill will remove the domestic effect of the role of the European court where it is not appropriate. Disputes between the European Union and the United Kingdom would be settled by independent arbitration, in line with normal international dispute resolution provisions, including those in the trade and co-operation agreement.
However, the Bill would also enable the Government to implement a mechanism that allowed courts to seek an opinion from the European court on legitimate questions of interpretation of EU law, ensuring that it can still be applied where necessary, such as for the purposes of north-south trade. To be absolutely clear, the Bill seeks to change only those parts of the protocol that are causing problems and undermining the three strands of the Belfast/Good Friday agreement; it keeps the rest. We have, for example, explicitly protected the articles of the protocol that cover north-south co-operation, the common travel area and the rights of individuals, and we will maintain the functioning of the single electricity market, which benefits both Ireland and Northern Ireland.
The Northern Ireland protocol in its current from has created real problems and challenges for ordinary citizens and businesses in Northern Ireland and contributed to political instability in the region.
Lord Howard of Lympne (Con)
If the Government wish to take action to remedy the situation the Minister has identified, why do they not take that action by invoking Article 16 of the protocol, which provides a perfectly legal route for such action to be taken?
Lord Ahmad of Wimbledon (Con)
My Lords, I know that my noble friend has raised this point. As I have indicated, there are parts of the protocol that we believe are working. I have already alluded to the common travel area, for example. While Article 16 remains a provision that the Government obviously know is at their disposal, and can enact it if so required, we believe that the Bill seeks to present a solution to the exact issues that we are identifying and need to be addressed, but not by removing the protocol altogether. I have cited two or three reasons that are currently operational and work within the existing protocol.
To continue, we also believe that the current protocol creates new, cumbersome processes and bureaucracy for traders. It undermines Northern Ireland’s position within the United Kingdom internal market and, as I said, has contributed to the diversion of east-west trade. Most urgently, it has provided an obstacle to the restoration of the devolved Government in Northern Ireland, undermining the important power-sharing institutions established by the Belfast/Good Friday agreement. The Government are continuing, again, as I said earlier, to engage in constructive dialogue with our EU partners to find shared solutions to these problems. I have referred to the discussions under way on current technical decisions between the UK and EU officials, which are a positive forward step.
Let me say again, as I said at the start of my remarks, that our strong preference remains to have a negotiated solution. However, we cannot stand by and allow the current situation to continue. We must ensure that the United Kingdom Government have the powers they need to address these urgent problems and enact lasting solutions to the problems inherent in the protocol, given any scenario. The Bill ensures that we have covered all the bases to implement what we believe are durable solutions while, to reiterate the point on the issue raised by my noble friend Lord Howard, preserving those parts of the protocol which are currently working.
I am confident that once the Bill has received Royal Assent, we will be well on our way to restoring the balance between the communities in Northern Ireland, which is integral to the Belfast/Good Friday agreement. I assure your Lordships that we continue to engage directly on the ground with businesses and communities in Northern Ireland; importantly, we continue discussions with our EU partners. The purpose of the Bill is to ensure that we have all the tools available to the Government to deal with the scenarios that we currently face, but we remain committed to finding a lasting solution.
Lord Frost (Con)
My Lords, I thank noble Lords, in particular my noble friend Lady Nicholson, for allowing me to speak out of sequence so that I could give evidence to the European Affairs Committee. I reassure my noble friend Lady Wheatcroft that I have been following as much of this very important debate as I can. It is a huge pleasure to be here to support the Government on this Second Reading of the Bill.
The House heard my views on the sad deterioration of the situation in Northern Ireland many times when I was on the Front Bench. I do not need to repeat them, as many noble Lords have made the point this afternoon. Clearly, the attempt to apply the protocol is no longer delivering the original intention of supporting the Belfast/Good Friday agreement, but undermining it. Unionism has lost confidence in it, the status quo is highly unstable and risky, and change is needed.
That change is needed for economic as well as political reasons. Those who argue, as some have today, that Northern Ireland is benefiting from the protocol are simply wrong. Since the entry into force of the protocol, the UK’s economy has grown by 7.5% and Northern Ireland’s by 5.5%. PMI surveys in Northern Ireland have been consistently lower than the UK’s, and have actually been negative in the last four months. Exports from Great Britain to the EU have grown faster than those of Northern Ireland to the EU, which suggests that the supposed export boom from Northern Ireland to Ireland is a bit of a fantasy or an artefact of trade diversion. The Government are well within their rights to try to remedy this situation and bring forward this Bill. I note that it passed the other place unamended; that fact must influence the approach taken in this House.
The Government have made their view clear too, in their statement on 13 June, that the Bill is
“justified as a matter of international law.”
Of course, it is possible to find lawyers who take a different view—we have heard many distinguished lawyers today—but the Government are entitled to proceed on the basis of their own legal analysis, and that analysis is not disproven just by the existence of alternative opinions.
This Bill is essential not only on its own merits but in order to strengthen the hand of the British Government in their negotiations. If a negotiated agreement can be reached, that is obviously much better, but it is very hard to see that an agreement that does not amend the protocol very significantly will do the job. I work on the assumption that it is the intention of the Government to achieve a negotiated settlement of that level of ambition. The Prime Minister said in Parliament on 7 September that she preferred a negotiated solution, but
“it does have to deliver all the things that we set out in the Northern Ireland Protocol Bill.”—[Official Report, Commons, 7/9/22; col. 237.]
Some of the more recent mood music from the Government has been less clear-cut on that point, so perhaps in winding up my noble and learned friend the Minister will confirm that is still the Government’s approach and that they are not looking to endorse a negotiated settlement that delivers less than that. On the assumption that is still the Government’s policy, it is absolutely clear that they will need this Bill to deliver it. I will conclude by saying why.
As has been pointed out on several occasions and is well known, I was responsible for negotiating the protocol as we now have it. That negotiation, such as it was, has an important lesson for today. The crucial point is that any negotiation, if it is to find the right balance between the parties, needs to have a meaningful “walk away” option for both sides. We did not have that in 2019. This Parliament and this House had passed a law prohibiting us from leaving the European Union without a deal. The choice we faced, therefore, was on the one hand to see the endless continuation of negotiations with the EU from a position of weakness, some subversion of our efforts by Members of this Parliament and others in the political scene and perhaps see the referendum overturned altogether, or on the other hand do the best deal we could, accept the risks, and deliver the referendum result. I make no apology for choosing the latter, even though our forebodings have been amply justified by events.
The point of this Bill is to avoid that situation being repeated. If this Bill becomes law, the British Government—
Lord Hannay of Chiswick (CB)
Will the noble Lord confirm that what he has just said amounts to saying that he was negotiating under duress in 2019 and the duress was applied by the British sovereign Parliament?
Lord Frost (Con)
I have made the point many times that we were operating within the constraint of a law that usurped the functions of the Executive and prevented us conducting negotiations. I have made that point many times, and I make it again today.
If this Bill becomes law, the British Government will regain agency over events. If they cannot reach an agreement through negotiation, they will be able to use the powers in this Bill to correct the current unsatisfactory situation under international law. The incentives on both sides will still be to reach agreement, but there will still be a “walk away” option, which means that a proper negotiation can take place.
If noble Lords prevent this Bill passing, they will put this Government into the same position I faced in 2019. Once again, there will be no “walk away” option. The Government will have to try to get the best negotiated outcome that the EU will allow them to have. They will be a petitioner for the EU’s grace and favour, not a negotiating partner. If the Government are not happy with what is on offer, the outcome will be even worse—the continuation of the current unsatisfactory situation and the current protocol.
I urge noble Lords not to make the same mistake as in 2019. Give the Government the powers they need to conduct a meaningful negotiation. Do not make them a supplicant in Brussels. Allow them to get the job done.
The Advocate-General for Scotland (Lord Stewart of Dirleton) (Con)
My Lords, I begin by expressing my appreciation for the very large number of thoughtful and informed contributions we have heard during this debate. It has been an honour to have heard it and now to become a part of it. It has grappled with not only the grave political and constitutional matters before us but has cited the Marquess of Salisbury, by my noble friend Lady Nicholson, Montesquieu and The Spirit of the Laws by the noble Lord, Lord Morrow, Shakespeare’s “The Merchant of Venice” by my noble friend Lord Moylan and that peerless advocate and exemplary parliamentarian Sir Edward Carson by the noble Baroness, Lady Hoey. The debate also heard the expression “Piss off” used by the noble Lord, Lord Russell of Liverpool, which I had perhaps not anticipated hearing in a debate in your Lordships’ House.
On behalf of the whole House, I am sure, I echo the words of the noble Lord, Lord Rogan, and others on the loss to our counsels constituted by the death of Lord Trimble. I also echo his comments on the loss to Lord Trimble’s community, the whole of Northern Ireland and his family.
Before I turn to the points raised by various noble Lords, I will briefly restate the reasons for introducing the Bill. The Northern Ireland protocol was agreed with the best of intentions, to ensure that the Belfast/Good Friday agreement was protected in all its dimensions as the United Kingdom left the European Union. The departure of the United Kingdom from the European Union is, as the noble Baroness, Lady Fox of Buckley, put it so trenchantly, a UK matter. It is not to be balkanised in terms of how it played out in London, Northern Ireland, Scotland or Wales. It is a United Kingdom matter.
But in its practical operation, the protocol is causing practical problems for people and businesses in Northern Ireland, including disruption and diversion to east-west trade. That disruption is present in the rest of the United Kingdom and it is causing significant costs and bureaucracy for businesses and traders.
Moreover, political life in Northern Ireland is, as your Lordships have heard on numerous occasions, built on compromise and power sharing across communities. However, as noble Lords have also heard, the protocol does not have the support of all communities in Northern Ireland. The noble Lord, Lord Dodds of Duncairn, was but the first to explore this point. As a result, we are seeing political and social stress in Northern Ireland, including the non-functioning of the Northern Ireland Executive and Assembly. It is clear that the protocol is putting strain on the delicate balance inherent in the Belfast/Good Friday agreement.
It remains the Government’s preference to reach a negotiated agreement on the protocol. I could not associate myself more with the comments from all sides of your Lordships’ House—the noble Lords, Lord Triesman and Lord Bach, on the Benches opposite, the noble Baroness, Lady Wheatcroft, and my noble friend Lord Tugendhat—on the importance of negotiation and the hopes the Government have that it will ultimately bear fruit. My right honourable friend the Foreign Secretary has reiterated this. He and Vice-President Maroš Šefčovič have agreed that officials should meet to discuss technical solutions. The Bill contains provisions to implement any future negotiated agreement with the European Union. I can give an assurance at this stage to my noble friend Lord Frost that we are clear that negotiations must be able to address the full range of serious issues caused by the protocol. The Bill is set up to enable us to do precisely that.
In answer to a point raised quite early in the debate by the noble Lord, Lord Ricketts, our EU partners and friends are aware of this Bill. They are aware that negotiations continue and recognise that there are problems to resolve.
My noble friend Lord Forsyth of Drumlean spoke early in the debate about the manner in which the protocol has been operated. I will revert to that point when I discuss, at a level I think appropriate to Second Reading, the implications of the Government’s stance for international law. However, I must stress to your Lordships’ House that the problems created by the protocol are urgent and require swift action. The Taoiseach, the Irish Premier, said publicly last week that the protocol as it was originally designed was a little too strict. These problems are of long standing and we now seek to address them. But while we engage in dialogue with the European Union, we must also ensure that we have covered all bases and that the United Kingdom Government have the ability to implement durable solutions in any scenario.
I now propose to turn to some of the specific themes and questions raised in this evening’s debate. I do that against the undertaking that if I should fail to refer specifically to the contributions of any of your Lordships or fail to give consideration to any of your Lordships’ arguments proper to this stage of Second Reading, I am happy to engage with your Lordships in writing or in person in the corridors of this place, or for that matter, elsewhere.
The matter that featured most strongly in your Lordships’ deliberations today arose out of the matter of international law and the argument from necessity. The Government have already published a statement of their legal position on the Bill and their position is that it is lawful and necessary. The noble Lord, Lord Birt, from the Cross Benches and my noble friend Lord Kirkhope of Harrogate seemed to suggest to your Lordships that the voice of the legal profession was as one in saying that this was not the case. That is not so. The Government have a worked-out position in international law and there is no reason why we should not take it forward.
The United Kingdom exercised its sovereign choice to leave the European Union single market and customs union. I discern that that course was not universally approved by your Lordships’ House. But the peril that has emerged was not inherent in the protocol’s provision. As to the universal opposition, which some of the contributors to this debate seemed to throw up, it is in the nature of law that it is often adversarial. It is in the nature of law that parties will have different approaches, just as it is in the nature of sincere friendship that sincere friends will often disagree, even on the most fundamental matters.
The strain that the arrangements under the protocol are placing on political institutions in Northern Ireland, and more generally on socio-political conditions, will leave the Government with no option but to take action if they cannot reach a negotiated solution with the European Union.
I listened with great interest to the comments as to law made not only by the many distinguished lawyers on the Benches of this place but from lay people concerned about the implications of the step that the Government were proposing to take. Opening for the Opposition from the Front Bench, the noble Baroness, Lady Chapman, began more correctly—or less wrongly—by saying that it was “likely” that this would amount to a breach of international law. Then she recovered the party line and said that it did breach international law. The curiosity was that I think that the lay people contributing to this debate about international law were, in fact, nearer to the truth than distinguished commentators such as the noble Lord, Lord Pannick, or my noble friend Lord Howard of Lympne, because the fact of the matter is that it is not possible—
Lord Stewart of Dirleton (Con)
I hear the noble Lord and will revert to him in due course. It is not possible to equiparate international law with domestic law. There is simply not enough of it and it is too dependent on facts and circumstances which will not apply from case to case to come up with a precedent which would allow noble Lords who have spoken in these terms to speak with such certainty.
Should I address the noble Lord, Lord Purvis of Tweed, at this stage? At an early stage in these proceedings, he spoke about the nature of the plea to necessity. I say again that it is very different from the interpretation of a domestic statute. Of course in international law there are similarities with domestic legislation, and of course in international law, often being a matter of paction, there are similarities with the law of contract. But it cannot be equiparated with, to use a metaphor that emerged from the Cross Benches, a contract for the sale of sausages. It is too complex and too fact-specific. That point was continued by the noble Baroness, Lady Suttie, my noble friends Lady McIntosh of Pickering, Lady Altmann and Lord Kirkhope of Harrogate, my noble and learned friend Lord Garnier—I am sure that I have missed others out; as I said, my undertaking is to engage with your Lordships to assist them in moving this forward—and, I decipher from my scrawl, the noble Lord, Lord McDonald of Salford, speaking from the Cross Benches. The assertion that the Government’s position breaches international law is too bold and lacking in nuance. I submit that we are entitled to proceed on the basis that we anticipate that the protocol will be operated in a manner that reflects the unique and serious circumstances against which it was drawn up.
The doctrine of necessity was approached by the noble Baroness, Lady Crawley, and my noble friend Lord Hannay of Chiswick in particular, who equiparated—if I misattribute this to my noble friend, I apologise to him and will happily correct it—invocation of the doctrine of necessity with the law of President Putin. Far from it: there is authority for the existence of a defence of necessity dating back at least to the early 19th century. It was recognised by the International Court of Justice in 1997 in a case between Slovakia and Hungary regarding a dam on the Danube. It formed part of the International Law Commission’s articles on state responsibility, drawn up in 2001, as the Government’s statement on their legal position notes. In 1995, the Government of Canada justified steps taken to protect the Grand Banks fisheries on the basis that it was necessary to do so. If fisheries in the Atlantic are important, how much more so is the extension of democratic rights across the whole of this United Kingdom?
Invoking the doctrine of necessity does not repudiate international law or the international rules-based order. It is part of the international rules-based order. The noble Baroness, Lady Kennedy of The Shaws, my noble and learned friend Lord Clarke of Nottingham, the noble Lord, Lord Bach, and my noble friend Lord Tugendhat stated that the Government were undermining the rule of law and that this constituted a flagrant breach of the rule of law. Again, by invoking the doctrine of necessity, we operate within the framework of international law and—
Lord Howard of Lympne (Con)
Is not my noble and learned friend rather missing the point? None of us has suggested that the doctrine of necessity plays no part in international law. What we are saying is that it is not justified by the Government’s approach in this particular instance.
Lord Stewart of Dirleton (Con)
I respond to my noble friend by saying that the assertions that it breaches international law simply cannot be determined at this point because it is a matter of exploring the complex background of facts and circumstances, including the manner in which the protocol has been operated.
Lord Thomas of Gresford (LD)
Can the Minister define in a few words what the necessity is in this particular instance?
Lord Stewart of Dirleton (Con)
My Lords, I think it would be wrong of me at this stage in the Second Reading to engage in a deeper debate. I refer the noble Lord to the terms of the legal statement issued by the Government.
On the diminution of rights which were raised among your Lordships, I return to the point raised by my noble friend Lord Moylan and indeed by other Members of your Lordships’ House from Northern Ireland: what are we to say of the diminution of rights which strips from citizens of this country the right to make laws? Must we not look to that? At present, the circumstances of Northern Ireland strip our fellow countrymen of that right.
Lord Stewart of Dirleton (Con)
I will not give way at this stage.
An argument which was deployed by some of your Lordships, beginning with the noble Lord, Lord Ricketts, and continued by my noble friend Lord Northbrook, was that by these steps the Government are damaging the trust in the United Kingdom among its international partners. There is no reason why this legislation should damage trust among our international partners. The Government want to move past issues with the protocol and focus on the key global challenges, such as those emanating from the current Government of Russia. As regards this country’s standing in the world at large, people furth of this country will look to the unhesitating support offered by this country to a democratic state imperilled by an aggressive neighbour and take that as the badge and measure of this country’s approach.
Lord Stewart of Dirleton (Con)
My Lords, again, with the utmost respect, I decline to give way to the noble Baroness. She has my assurance that I will engage with her.
Lord Stewart of Dirleton (Con)
I hear the noble Lord; I will not give way.
It remains the Government’s preference to reach a negotiated agreement on the protocol, and further discussions are now under way with our European Union counterparts with the aim of identifying shared solutions. I can give my noble friend Lady McIntosh of Pickering repeated assurance of the importance of negotiation. We will continue to work closely with the European Union on the crisis of Ukraine, as we will with the United States and with all friendly powers and democracies throughout the world. We have always said that we want to fix the problems created by the protocol, in part so that we can focus our full collective energy on global challenges such as these.
The point was taken up at various points during the debate that the Bill threatens Northern Ireland access to Ireland and to the wider European Union single market. I stand before your Lordships in place of my noble friend Lord Caine, who I feel is far better equipped to answer these questions, drawing on his extensive experience of affairs in Northern Ireland. Again, he will undertake to engage with noble Lords on that point. Any perception of risk posed to the EU single market can be managed through market surveillance activities delivered by relevant United Kingdom bodies which will continue to prevent, deter and remove non-compliant and unsafe activity to protect the consumers of both the United Kingdom and EU markets. Market surveillance will follow the risk-based and intelligence-led approach as it does at present. As we have said all long, our preference is for a negotiated solution, and we stand ready to discuss appropriate assurances with the European Union.
The noble Baronesses, Lady Ritchie of Downpatrick, Lady Doocey and Lady Ludford, and the noble Lord, Lord Browne of Belmont, raised matters specific to agribusiness and dairy farming in particular. Again, I offer the House assurance that negotiations continue.
I am grateful to my noble friend Lord Frost for his account of the current economic situation and his summary of the historical situation in 2009 which my noble friend Lord Hannan of Kingsclere joined with his customary brio and, in the process, released a cat among the Liberal Democrat pigeons. I am also grateful to the noble Baroness, Lady Fox, whom I took to adopt the historical summary which my noble friend Lord Frost advanced.
I come next to the noble Lord, Lord Purvis of Tweed, who again very early in the debate raised the important point of an impact assessment. As the noble Lord pointed out, the Bill does not have an impact assessment. The full details of the new regime will be set out in regulations alongside and under the Bill, including economic impacts where appropriate.
Since the Bill was introduced, we have consulted extensively with businesses and other key shareholders on the underlying details of the regime to ensure that it is as smooth and as operable as possible. The Government are getting on with that task now.
The noble Lord, Lord Russell of Liverpool, seemed to invoke the concept of historical inevitability in his contribution towards the end of the debate. I am no Marxist but I am by no means clear that his exercise in foresight in relation to society in Northern Ireland will prove to be accurate.
A matter of grave and, if I may say, fully appropriate interest to your Lordships is that of the breadth of the Henry VIII powers. The noble Lord, Lord Bruce of Bennachie, my noble friend Lord Northbrook, the noble Baroness, Lady Ritchie of Downpatrick, once again, my noble and learned friend Lord Garnier, and the noble Baroness, Lady Meacher, in particular, raised these matters, and I apologise to other noble Lords whom I have not mentioned by name.
The Bill provides specific powers to make new law where we are disapplying the EU regime and where such law is appropriate to make the Bill’s regime work. These powers are restricted. They can be used only in connection with certain provisions and subject matter of the protocol, for example changing valued added tax rules in Northern Ireland.
It is important to emphasise that we are engaged in negotiations. We are not, as the noble Lord, Lord Kerr of Kinlochard, said, engaging in blackmail; nor are negotiations, as the noble Lord, Lord Thomas of Gresford, said, engaged in attempting to bully the European Union; and nor, as my noble friend Lady Altmann suggested, have we by this proposal become an elected dictatorship.
These provisions are necessary. They allow the Government to act as quickly as possible to deliver new policy arrangements, for example to introduce the green and red lane for traders. Since the Bill was introduced in June this year, the Government have consulted extensively. There have been over 100 bespoke sessions with over 250 businesses, business representative organisations and regulators.
I am being warned once again: noble Lords will doubtless be glad to see the back of me. The steps which we are taking are necessary to reflect the unique and dynamic situation in which the Bill passed in the other place.
In conclusion—
Lord Stewart of Dirleton (Con)
The Government have not triggered Article 16—from early in the debate, I note my noble friend Lord Howard of Lympne. The position is that it would not solve the radical, fundamental problems with the protocol. It would treat only some symptoms without fixing those root causes. As my noble friend Lord Moylan explained to your Lordships, the problem lies in the protocol and not in its application.
Lord Stewart of Dirleton (Con)
It would appear that I am losing the House’s patience.
The Bill allows the Government to implement lasting and durable solutions to the existing problems with the Northern Ireland protocol. While we remain committed to exploring shared solutions with the European Union, it is critical that we retain the ability to take action on the very real and urgent problems inherent in the protocol. I hope that noble Lords will recognise this and act in the best interests of the people of Northern Ireland by voting with the Government for the Bill. I am obliged to your Lordships.