Draft Export Control (Amendment) (EU Exit) Regulations 2022
(1 year, 11 months ago)
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The Parliamentary Under-Secretary of State for International Trade (Nigel Huddleston)
I beg to move,
That the Committee has considered the draft Export Control (Amendment) (EU Exit) Regulations 2022.
It is a genuine pleasure to serve under your chairmanship, Ms Harris.
The aims of the draft statutory instrument are threefold: first, to make technical amendments to the Export Control Order 2008 to implement the European Union dual-use regulation, which applies in Northern Ireland by virtue of the Northern Ireland protocol; secondly, to correct an error introduced by an earlier instrument; and thirdly, to remove the Russian Federation as a permitted destination from the scope of certain general export authorisations.
Let me step back to provide some context. The draft instrument amends legislation relating to the United Kingdom’s export controls. This is a technically complex area of law, so I hope Members will bear with me as I provide some background. The export controls to which this instrument relates specifically are strategic exports, which include goods, software and technology capable of having a military use. In particular, it relates to dual-use exports, which are capable of both civilian and military uses. The restrictions that apply to strategic goods, software and technology are known as controls, and can take different forms. For example, controls may relate to dual-use items or to end uses relating to weapons of mass destruction. Controlled items may be licensed for export, but exporting controlled items without a licence constitutes an offence.
When the United Kingdom was a member of the European Union, it was subject to the EU law on export controls. The EU set out a number of controls relating to strategic exports, as well as extensive lists of goods, software and technology subject to control. As Members are aware, since the UK’s withdrawal from the EU, certain EU rules have continued to apply in Northern Ireland, in accordance with the terms of the Northern Ireland protocol. When the United Kingdom left the European Union in 2020, many of the detailed rules describing which strategic goods could be exported without a licence were set out in European law.
I will set out three distinct descriptions of relevant legislation and use them throughout the rest of my speech. First, the old EU dual-use regulation applied to the United Kingdom before our withdrawal from the EU; it continued to apply throughout the EU, and in Northern Ireland in accordance with the Northern Ireland protocol, until 9 September 2021. Secondly, the retained dual-use regulation is the version of the old EU dual-use regulation that was retained in UK law when we left the European Union; it applies in Great Britain. Thirdly, the new—I use the EU word—recast EU dual-use regulation came into force on 9 September 2021; the recast dual-use regulation replaced the old regulation in the EU and has applied automatically since 9 September 2021 in Northern Ireland, in accordance with the rules of the Northern Ireland protocol.
The recast dual-use regulation sets out the laws that govern the export of dual-use goods, software and technology from the EU and Northern Ireland. It includes new controls on cyber-surveillance items and technical assistance, and it provides for additional controls relating to EU member states’ national control lists. For regulatory purposes, the recast dual-use regulation is incomplete: it sets out controls on dual-use items but does not provide the necessary legislative detail on how to license exports of such items, the offences applicable for breaching controls, or the applicable customs enforcement powers. Such matters have been left to domestic implementation.
In this case, the regulation that we are seeking to ensure functions properly controls the export of dual-use goods, which are goods that have both military and civilian use. The draft statutory instrument therefore aims to make the necessary changes to the Export Control Order 2008 to ensure that the recast dual-use regulation is properly connected to the existing domestic-law provisions on licensing, offences and customs enforcement. To that extent, it provides for the technical implementation of the United Kingdom’s obligations under the Northern Ireland protocol, rather than representing any change in export control policy.
I should clarify that this statutory instrument is subject to the draft affirmative procedure, because it modifies criminal offences to make the new European Union controls on cyber-surveillance items, technical assistance and national control lists all operable in Northern Ireland. Paragraph 8F(1) of schedule 7 to the European Union (Withdrawal) Act 2018 specifies that instruments that make provisions falling within paragraph 8F(2) fall must be made using the draft affirmative procedure.
Let me explain what the regulations do, first with respect to the changes to the Export Control Order 2008 and then with respect to the changes to the retained dual-use regulation. First, on the 2008 order, regulation 3 updates and clarifies definitions relating to the recast dual-use regulation as it applies in Northern Ireland and the retained dual-use regulation as it applies in Great Britain.
Secondly, regulations 4 to 8 and 15 and 16 update various cross-references to refer to the recast dual-use regulation. For instance, references to article 20(1) of the old dual-use regulation have been updated to refer to the equivalent provision in article 27(1) of the recast dual-use regulation.
Thirdly, regulations 9, 13 and 17 modify the offences provisions in the 2008 order to cover the new controls in the recast dual-use regulation. That is, they make it an offence to contravene the prohibitions and restrictions in the recast dual-use regulation and specify applicable penalties. They also more clearly distinguish between the offences applicable in Northern Ireland and those applicable in England, Wales and Scotland. Specifically, regulation 9 limits the application of article 35 of the 2008 order to offences relating to the retained dual-use regulation as it applies in England, Wales and Scotland. Regulations 13 and 17 create new offences in Northern Ireland in respect of the new controls in the recast dual-use regulation.
Fourthly, regulation 10 both updates certain cross-references to the recast dual-use regulation and extends His Majesty’s Revenue and Customs’ customs powers in Northern Ireland in respect of the new controls.
Fifthly, regulation 12 updates a cross-reference to a European Council directive from 18 June 1991 on the control of the acquisition and possession of weapons, known as the EU firearms directive. This, too, was replaced by an updated directive on the same subject matter: directive (EU) 2021/555, which came into force on 26 April 2021. The new directive now also applies in Northern Ireland in accordance with the Northern Ireland protocol, and it is appropriate that we update the cross-reference accordingly.
Let me turn to the amendment the instrument makes to the retained dual-use regulation. First, regulation 19 corrects an error in an earlier instrument made during the withdrawal of the United Kingdom from the European Union. It reinstates the Secretary of State’s power to reduce, annul, suspend, modify or revoke brokering-services authorisations in the retained dual-use regulation.
Secondly, regulations 20 to 22 amend the retained dual-use regulation to remove the Russian Federation as a permitted destination in certain general export licences that apply to Great Britain.
Mark Eastwood (Dewsbury) (Con)
The Minister mentioned the Russian Federation. I fully support what we are doing with sanctions and to try to restrict exports into and imports from Russia; however, the Russian Federation seems to be very good at circumventing our rules or finding loopholes that allow imports into or exports out of this country. Will the Minister clarify how his Department will address that?
Nigel Huddleston
My hon. Friend is absolutely right, and I assure him that we are all over this. We have one of the most robust export control licensing regimes in the world, and we are playing very close attention, working with our international partners, to make sure that Russia is not able to exploit loopholes. We have rigorous conversations with our partners to ensure that is not the case. The very point of the amendment regulations before us is, as Members will recognise, to do everything we can and that is necessary to step in in the light of Russia’s invasion and annexation of Ukraine’s sovereign territory. I understand my hon. Friend’s great interest in this matter.
I hope Members will forgive me if I do not go into the detail of the remaining draft regulations, which make minor and technical amendments in consequence of those that I have just set out. I ask Members to support the draft regulations, which I commend to the Committee.
Dame Nia Griffith (Llanelli) (Lab)
It is a huge honour to serve under you, Ms Harris; it is the first time that I have had the pleasure. On behalf of the official Opposition, I welcome the Minister to his post and thank him for his clear explanation of the legislation. I also thank the team that prepared the explanatory memorandum, which has been very helpful, given the complexities of the technical detail.
In principle, Labour supports the legislation. It is in everybody’s interests to have clear regulations that can be implemented effectively. I will not repeat all the technical detail, but broadly the legislation has two main purposes. The first is to make the necessary changes to update legislation in line with existing policy, and we support the measures proposed. The second purpose is to prevent sales to Russia, in particular the sale of dual-use equipment—a purpose that we absolutely support.
The Opposition have long supported the principle of export controls, particularly in respect of arms or equipment that might be used for internal repression or external aggression. Labour stands unshakeably with our NATO allies in supporting the provision of military, economic, diplomatic and humanitarian assistance to Ukraine as it defends itself against Putin’s illegal invasion. We are keen to see the strongest possible economic and diplomatic sanctions maintained against Putin’s Russia and for any loopholes to be closed. To that end, we fully support the measures that strengthen the sanctions and provide for export controls to the Russian Federation.
Clearly, in the current context it is more important than ever to prevent the export of items such as dual-use equipment. We therefore support the measures in the legislation that prevent the sale of dual-use equipment to the Russian Federation and that put right a deficiency that arose following the erroneous removal of a provision that extended the power to refuse, annul, suspend, modify or revoke export authorisations to brokering authorisations. I welcome yesterday’s news that the Secretary of State for International Trade signed a digital agreement with Ukraine. On our TV screens, we get a small snapshot of the huge reconstruction task lying ahead in Ukraine that we want to support, and trade is a vital part of economic recovery.
The draft regulations reflect the situation in Northern Ireland—namely, to achieve the same ends, legislation pertaining to Great Britain is introduced through retained legislation, while that pertaining to Northern Ireland is introduced through the equivalent EU legislation. As we have said repeatedly, it is vital for businesses and consumers in Northern Ireland that every effort is made to make Brexit work and to ensure the smoothest possible flow of trade between Great Britain and Northern Ireland. For example, we have called for an effective veterinary agreement, as the Minister will know, to ease the flow of goods from east to west.
It is a matter of deep concern that Northern Ireland remains without an Executive. It is an abject failure that power sharing has not been restored for months and months. The UK Government have achieved little in respect of bringing the communities together and helping to restore an Executive in Northern Ireland. The explanatory memorandum says that it was not deemed necessary to have any consultation. I understand that international trade is reserved to the UK Government, but given the lack of a functioning Executive in Northern Ireland and the sensitivity of anything to do with trade, have there been any discussions between the Department and officials in Northern Ireland or any elected representatives?
The explanatory memorandum tells us that the provision that extended the power to refuse, annul, suspend, modify or revoke export authorisations to brokering authorities was removed “in error”. How did that happen? As has been explained, the draft regulations rectify deficiencies. What analysis have the Government made of anything that has slipped through what we might call the net—the loopholes—and, in particular, of whether there has been any inappropriate supply of dual-control equipment to the Russian Federation or that has been prevented by broader sanction initiatives?
Does the Minister anticipate any difficulties in the implementation of the legislation? The explanatory notes say that there has been no impact assessment because of the low level of impact on any business. Nevertheless, have any efforts been made to identify any businesses that will be affected by the legislation? If so, has there been any correspondence or discussion with them? Those are the questions that I would like the Minister to answer, but I reiterate that we are, in principle, supportive of the legislation. We understand the reasons why it is necessary and would like to see it implemented effectively as soon as possible.
Nigel Huddleston
I thank the hon. Lady for her comments and her welcome. I very much look forward to working constructively with her and the Opposition team on many matters, the vast majority of which relating to the Department for International Trade and the whole remit are not party political. We share the same goals in terms of promoting trade and, as the hon. Lady mentioned, ensuring that where trade happens on sensitive items it happens appropriately. She will be aware of the measures that we have in place. We can be proud to have developed, under multiple Governments, one of the most robust control systems in the world.
Let me respond briefly to the items the hon. Lady raised. Let us be clear and honest about the error that was made: it was a simple error—in government we make human errors every now and again. It was identified by officials and this is the process for correcting it. There have been no consequences to that error since it occurred, so there has been no material impact. We are correcting it at the earliest opportunity.
On the scale of the items covered, according to our licensing data 11 Northern Ireland exporters were granted standard individual export licences for dual use in 2021. They were issued with 315 licences to export dual-use items from Northern Ireland, valued at £13 million. We hold licensing data on open licences, but that data does not include information about end users.
The hon. Lady asked about the impact assessment. The draft instrument implements existing policy; it has no impact on businesses, charities or voluntary bodies and there is no significant change. The EU regulation that it implements was the subject of an EU Commission impact assessment, which is available online. I assure the hon. Lady that we do not believe the differences between the old and the recast regulation will have a significant impact. I mentioned an error; I am afraid they happen every now and again, but I hope that she will accept the apology and the quick turnaround.
My hon. Friend the Member for Dewsbury raised a broader point about sanctions. I reassure him that our sanctions are there to fulfil a whole range of purposes. In the UK, those purposes include complying with UN and other international obligations, supporting foreign policy and national security objectives, and maintaining international peace and security. The UK implements a wide range of sanctions regimes through regulations made under the Sanctions and Anti-Money Laundering Act 2018, which provides the main legal basis for the UK to impose, update and lift sanctions. UK sanctions regulations made under that Act apply in the whole of the UK, including Northern Ireland.
Mark Eastwood
I thank the Minister for that answer. I have picked up on the disparity between sanctions and controls and restrictions in respect of Russia and Belarus. Will the Minister provide reassurance that they are consistent, and that the sanctions and any restrictions and export controls are applied equally in respect of the Russian Federation and Belarus?
Nigel Huddleston
I reassure my hon. Friend that we have extremely rigorous export controls. He raises issues and points that go beyond the remit of the regulations, but I am happy to follow up and have a conversation with him to discuss those matters. I am aware that he is extremely concerned about such issues, as indeed we all are, and I thank him for raising them, but the Chair will forgive me for taking that conversation offline.
Dame Nia Griffith
Will the Minister respond to my question about whether any discussions about this legislation were held with Northern Ireland officials or Northern Ireland representatives? I fully understand why there did not have to be such discussions, but we understand the sensitivity of the situation.
Nigel Huddleston
I assure the hon. Lady that we have regular discussions. The Under-Secretary of State for International Trade, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie), who is responsible for export policy, has regular conversations with the devolved Administrations and we follow through with them on an ongoing basis, so discussions happen very frequently indeed. I am happy to write to the hon. Lady about that. I ask the Committee to support the regulations.
Question put and agreed to.
Draft Internal Market Information System Regulation (Amendment etc.) Regulations 2021
(1 year, 11 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kevin Hollinrake)
I beg to move,
That the Committee has considered the draft Internal Market Information System Regulation (Amendment etc.) Regulations 2021.
It is a pleasure to serve with you in the Chair, Sir Robert. The draft regulations were laid before the House on 20 July 2021. Right hon. and hon. Members will understand the importance of the need to protect citizens and businesses through the effective operation of the Northern Ireland protocol. I hope that right hon. and hon. Members will agree that it is also important that our statute book provides a clear and up-to-date picture of UK law for the benefit of UK public authorities, businesses and citizens.
The statutory instrument tidies up the statute book by removing provisions relating to access to the EU’s internal market information system database that are redundant or inoperable as a result of the UK’s departure from the EU. It also forms part of the UK’s delivery of the Northern Ireland protocol. The IMI is a secure online tool used to facilitate the EU single market. The tool was created to resolve problems of ineffective, insecure and inefficient communication between the European Commission and EU member states. It is hosted and maintained by the European Commission. At the end of the implementation period, the UK’s access to the European Union’s networks, information systems and databases was blocked by the EU, save for specific exemptions.
Under the Northern Ireland protocol, the EU can grant the UK access to such systems as it considers necessary to enable the UK to comply with its obligations under the protocol. In a decision of 16 October, the European Commission granted the UK limited access to the IMI to enable the UK to fulfil certain obligations under EU legislation that continue to apply in respect of Northern Ireland under the protocol. I will set out those obligations in more detail shortly. The UK’s access to the IMI has otherwise been removed.
EU regulation 1024/2012 on administrative co-operation through the IMI sets out the framework for use of the IMI. That regulation is retained EU law under the European Union (Withdrawal) Act 2018, and applies in areas where access to the IMI is retained. The draft regulations do not make any policy changes, impose new obligations or create new powers. They remove redundant provisions that are inoperable because access has already been removed by the European Commission on the grounds that UK access is no longer required. In particular, they remove references concerning legislative areas in respect of which the UK does not have access to the IMI, which include patient rights relating to cross-border healthcare, posted workers, public documents, the services directive, the recognition of professional qualifications and non-road mobile machinery. They also clarify that regulation 1024/2012 applies in respect of Northern Ireland only to facilitate communications and the exchange of information for three general purposes, which I will set out.
The first relates to the return of cultural objects unlawfully removed. The relevant EU directive sets out the procedures for the return to an EU state of objects that are national treasures possessing artistic, historic or archaeological value that have been unlawfully removed from that EU state to another. An EU member state can enter a case on the IMI to send a notification of the EU member state to which it is believed that that object has been taken. On receipt of the case, all reasonable steps would be taken to locate the object and protect it until such time as it can be retrieved, unless it cannot be located or has been found to have been legally imported. All actions taken would be recorded on the IMI. The UK Department for Digital, Culture, Media and Sport is responsible for cases on the IMI module on the return of cultural objects.
The second purpose relates to the acquisition and possession of weapons. The relevant EU directive sets out the minimum standards for civilian firearm acquisition and possession in European economic area states for the purpose of controlling the movement of weapons between EEA states. The IMI is used by EEA states to notify other EEA states where they have granted authorisation to a business or an individual to acquire a firearm from, or transfer a firearm to, another EEA state. The UK Department for International Trade is responsible for all such communications through the IMI module on the control of firearms.
The third and final purpose is to facilitate mutual recognition of goods. The relevant EU regulation sets out a framework for ensuring that goods lawfully marketed in one EEA state can be sold in any other EEA state as long as they are safe and respect the public interest. It provides that economic operators who consider that their rights under this regulation have been breached by a public authority of another EEA state can use the single market problem-solving network, SOLVIT, to try to find solutions without the need to resort to action in court.
The SOLVIT network is hosted on the IMI. If a decision was made by a UK public authority to deny entry to the Northern Ireland marketplace of goods sold in an EEA state, and the EEA economic operator considered that to be incompatible with this regulation, he could lodge a case through the SOLVIT network. The IMI SOLVIT co-ordinator for the UK would then review the case and engage with the responsible authority in the UK in order to agree a response to the case, to be submitted through the IMI.
Andy McDonald (Middlesbrough) (Lab)
I am very grateful to the Minister for giving a very detailed account on this important issue.
Andy McDonald
On SOLVIT, the dispute about the tracing of goods has been one of the major issues around the Northern Ireland protocol. When we speak to people in Brussels, they tell us not only that they are sad to see us go but that they have a solution. That solution relates not only to GB-Northern Ireland and resolving perceived difficulties through co-operation, but to repairing the trade imbalance that now exists between the EU and the UK. That means that what we can solve in GB-NI, we can also solve in EU-UK. Do the draft regulations, albeit narrow and targeted, not suggest that we are going in the wrong direction in our attempts to work better with our European Union partners, for the benefit of our trade?
Kevin Hollinrake
Co-operation is always the best way. I agree with the hon. Gentleman that we need to be pragmatic in finding solutions. This statutory instrument is not about resolving things that have gone wrong in the past; it is about removing things that are no longer needed and that would potentially conflict with other pieces of legislation. However, I agree with him that, in terms of co-operation, it makes sense to come to agreements that suit both sides. Both parties are involved in the negotiation, of course, and we have to tread a pretty fine line in trying to get to the right place.
The IMI SOLVIT co-ordinator is based in the Department for Business, Energy and Industrial Strategy.
In conclusion, this statutory instrument simply makes technical amendments to reflect the current position regarding the UK’s access to the IMI. It removes provisions that are no longer operable following the end of the implementation period and it retains only those provisions that are necessary in respect of Northern Ireland, to ensure that the UK can comply with certain obligations under the Northern Ireland protocol. This statutory instrument ensures that UK public authorities can continue to access the IMI, to allow them to deliver these obligations securely, effectively and efficiently, where necessary. I commend the draft regulations to the Committee.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
It is a pleasure to serve under your chairmanship, Sir Robert. I thank the Minister for setting out the intent of this delegated legislation. I also thank the two separate parliamentary Committees for their work in scrutinising it—the Lords Secondary Legislation Scrutiny Committee and the Joint Committee on Statutory Instruments—neither of which reported issues with this SI to the House.
Co-operation between nations, mutual understanding, shared trade regulations and, indeed, values are part of any effective trading relationship, as my hon. Friend the Member for Middlesbrough has suggested, and they are at the heart of the internal market information system. The IMI is a secure, multi-lingual online tool that facilitates the exchange of information between public authorities. The IMI helps authorities to co-operate and fulfil their cross-border administrative obligations in multiple single market policy areas. The IMI regulation sets out the framework for the administration of the IMI system by Government officials and those bodies exercising regulatory authority. It requires that each member state has a co-ordinator to look after the effective functioning and correct use of the IMI system and that all communications are handled securely in line with the relevant data protection rules.
As we have discussed, this statutory instrument amends the IMI regulation for two main reasons. The first is to revoke redundant retained EU legislation, and the second is to remove inoperable provisions. Together, this allows limited access to the IMI in Northern Ireland. It is clear that part 1 and chapter 1 of part 3 extend to all of the UK. Chapter 1 of part 3 revokes redundant retained EU law relating to the IMI regulation. Part 2 extends to Northern Ireland and amends the IMI regulation. Chapter 2 of part 3 extends to England, Wales and Scotland, revoking those provisions of the IMI regulation and retained EU law that no longer apply. In short, and as the Minister has said, the amendments introduced by this statutory instrument are technical operability changes and do not include any policy changes. However, these operability issues are a consequence of the UK leaving the single market on 31 December 2020.
I am sure that the Minister and the Committee will be pleased to note that Labour does not intend to oppose the draft regulations. However, I would be grateful to the Minister if he would address some questions. I must also express concern about the legislative landscape into which this SI is entering. The revocation of any laws, chapters or paragraphs in legislation should be done with the utmost care. As I have said, this SI has had the scrutiny of two Committees—as well as this Committee and, indeed, the assurance of the Minister’s entire Department—to ensure that there will not be any adverse implications for any organisation, public body or group of people. It is for that reason, however, that I am confused as to where the Government’s priorities and approach lie.
We accept that the SI rectifies a small area of our legislative landscape. The problem is that Conservative Members and the Government could be blowing a gigantic hole in it through the Retained EU Law (Revocation and Reform) Bill. Why is the Minister introducing this very limited and narrow SI when, at the same time, the Bill will soon be at Report stage? Why is the Bill not being used to address this issue? And why are all the EU laws and legislation that the Bill is going to tear out of our statute books not worthy of the same amount of consideration as this change? Why has this SI received the focus and attention of the Government when they are willing to have a bonfire of 2,417 other pieces of retained EU law without, it appears, any consideration? That is not just inconsistent; it is downright dangerous.
The Government’s reckless Retained EU Law (Revocation and Reform) Bill will rip up vital legislation on trade, employment, environmental protection, health and safety in the workplace, parental leave, private pensions protection and food safety. I am very grateful to the Minister for setting out the detailed implications, in very narrow areas, of this SI, yet at the same time the Government’s Bill will just tear them all apart.
Andy McDonald
Is my hon. Friend aware not only that employment rights and protections are in grave jeopardy with the inclusion of a sunset clause, but that all the case law will, in effect, be wiped out? There is real anxiety in the business community and among employment advisers that the whole landscape will disappear, leaving employment relationships in total turmoil. It is another added complication. Does my hon. Friend agree?
Chi Onwurah
I very much agree with my hon. Friend’s comments. I was aware that the Bill will rip up much important legislation—for example, workers’ rights to holidays and so on—and that there is immense concern in the business and the working world and among trade unions and others about that. I was not aware that it will mean that all the precedents go with it. This has to be a huge concern.
The consequences of the Bill, both intentional and unintentional, will be so broad that it is impossible for the Minister to fully know or understand them. If the Government could not see or anticipate the need for today’s SI following Brexit, I implore the Minister to consider the possible legislative nightmare that the Retained EU Law (Revocation and Reform) Bill could unleash. Does he intend or want to spend what will hopefully be his party’s last few months in government sitting through endless SI votes and debates, like this one, because that may well be the fallout from the reckless Retained EU Law (Revocation and Reform) Bill? Have the Government made an assessment of the potential implications that the Bill could have for today’s SI?
The Minister may feel that today represents some legislative progress, but while this Government consistently cause more chaos and uncertainty for British people and businesses, Labour will seek to make Brexit work. I am proud to be a member of the Labour party, the party that completed the Good Friday agreement. That was one of the most progressive political acts of the last century, bringing peace and power sharing after years of conflict and stalemate. But the Good Friday agreement was a starting point, not the finishing line, and it is as relevant today as it was in 1998. Members on both sides of the Committee must always remember that.
The amendment presented here today is in keeping with the spirit of the Good Friday agreement. It recognises and respects Northern Ireland’s sovereignty and relationship with the Union and the Republic. That is why I am dismayed and concerned that the nuance and detail of this SI may yet be undone by the Northern Ireland Protocol Bill, which takes a wrecking ball to the Brexit deal that the Government negotiated, signed and campaigned on. Not only does the Northern Ireland Protocol Bill break international law; it damages our country’s reputation and risks the integrity of the Good Friday agreement. We have heard many international concerns set out. It risks new trade barriers in a cost of living crisis, and it divides the UK and Europe as we face Putin’s war on Ukraine.
The IMI system is built on trust and mutual co-operation, principles on which I am sure we have cross-party agreement, so I ask the Minister how our colleagues in Europe and Northern Ireland can trust this Government to act responsibly when it comes to this SI when the Northern Ireland Protocol Bill is going to rip up a previous agreement and is due to be debated on Report in the other place. What impact does the Minister believe the Northern Ireland Protocol Bill will have on the SI brought forward today? Labour Members believe that we need trust and good will in order to deliver more benefits to business across the UK and Northern Ireland. We achieve this by keeping support for the Good Friday agreement.
I have a couple of questions about how the SI will work in practice. The Minister referred to it being subject to the relevant data protections. I understand that the UK’s data protections are set to diverge from the European Union’s data protections, as announced by the Secretary of State for Digital, Culture, Media and Sport. Could the Minister set out the implications that that might have for this SI? Could he also say a little bit about what protocols are in place to ensure that data sharing in Northern Ireland is compliant with broader data sharing legislation?
I am struggling to understand one point. He talked about this being under the Secretary of State for International Trade. Does that mean that that Department has access to the IMI but that that access and the data cannot be shared with other branches of Government or other Departments—or, equally, with other members of the Union?
Why has it has taken such a long time for the Government to identify this particular section of inoperable or redundant EU law? How or through what process was that identified? What steps is the Department taking to identify further sections of legislation in which there may also be technical operability issues? I hope the Minister will provide reassurances and address the concerns I have raised.
Kevin Hollinrake
I join the hon. Member for Newcastle upon Tyne Central in thanking the two Committees whose work preceded this debate, and I thank hon. Members for their consideration of this statutory instrument and for their contributions.
As I previously set out, the SI makes technical amendments so as to reflect the current position regarding the UK’s access to the IMI. In terms of wider debate on the Northern Ireland Protocol Bill and the Retained EU Law (Revocation and Reform) Bill, the hon. Member for Newcastle upon Tyne Central has every opportunity to raise concerns about that legislation at the appropriate time on the Floor of the House, as the Bills pass through both Houses. That is the right place to do that.
The hon. Member also said that sunsetting the legislation by the end of next year is irresponsible. Personally, I think it is irresponsible not to set a date, because timings will just drift if we do not do so. I urge her to engage with these issues within the relevant debates. She could set out her previous position on a second referendum, which I think she once called for, on leaving the European Union. Government Members are committed to making Brexit work. That is where we stand and where we will remain.
Chi Onwurah
The Minister has a desire to refight the Brexit debate at every opportunity. We are trying to make the SI work and are asking the questions to make it work. I ask him to please set out to us how it is going to work.
Kevin Hollinrake
We do not want to refight previous battles, and that is what a second referendum would open up for people. That is not where we want to be. We want to move forward, and that is what we are trying to do today.
In terms of further changes beyond those under discussion, if any are necessary they could be part of the ongoing negotiations between us and the European Commission. It is very important that we have those negotiations, but also that they take place in a framework where we have a strong position, not a weak one. That is the position we have taken.
In terms of the timing of the measures, the UK was given a right to access the IMI under the withdrawal agreement for a period of nine months in order to deal with outstanding applications for European professional cards from nurses, physiotherapists and pharmacists. The EU and the UK agreed to extend the UK’s right of access to the IMI beyond the nine-month period, to process the remaining outstanding applications. The need for that temporary access has now been resolved and we are now in a position to progress the SI. In terms of the specific timing, one of the powers used to make the instrument under section 8 of the European Union (Withdrawal Act) 2018 expires at the end of the year, so it is necessary to legislate as we are doing now right now.
With the statute book updated, the SI will provide clarity to businesses, citizens and public authorities about the sharing of data between the UK, EU member states and the European Commission
Chi Onwurah
The Minister talks about providing clarity. I hope he is going to address my point about the divergence of the data protection regimes in this country and the European Union, and the impact that that will have.
Kevin Hollinrake
That has absolutely nothing to do with this debate, so I will not get into that at all.
Chi Onwurah
The Minister just said that he is looking to provide clarity on data sharing. He also said very specifically that data sharing would be in accordance with the regulatory frameworks in the country, yet those regulatory frameworks are going to differ.
Kevin Hollinrake
This statutory instrument is about data sharing within the IMI, not within the wider context of the relationship between the UK and the European Union—that is what it deals with. The hon. Lady wants to extend the debate into areas that are not relevant to this SI, in my view, and I think it is inappropriate that we do so.
Chi Onwurah
Is the Minister clear, therefore, that the regulatory framework under which the data sharing will take place in this SI is the regulatory framework of the single market, and not the regulatory framework of the Department for International Trade?
Kevin Hollinrake
The position is that the Data Protection and Digital Information Bill, which was introduced to the House of Commons on Monday 18 July 2022, will amend the existing legislation and adapt the UK general data protection regulation to create a new, bespoke British data protection framework that is business and consumer friendly, and that keeps people’s personal data secure. We are working with businesses and other stakeholders to make sure that it is fit for purpose. But, as I say, that is not relevant to this SI.
This statutory instrument introduces no new costs, obligations or powers. As I have set out, it ensures that UK public authorities can continue to access the IMI, where necessary, in order to enable them to securely, effectively and efficiently deliver their obligations under the Northern Ireland protocol. The statutory instrument also ensures that the UK’s statute book accurately reflects the changes in access to IMI following the UK’s departure from the European Union. I commend the draft regulations to the Committee.
Question put and agreed to.