Draft Product Safety and Metrology (Amendment and Transitional Provisions) Regulations 2022
(Limited Text - Ministerial Extracts only)
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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 Product Safety and Metrology (Amendment and Transitional Provisions) Regulations 2022.
It is a pleasure to serve with you in the Chair, Mrs Latham. Since 1 January 2021, the UK conformity assessment mark, the UKCA, has been used alongside recognition of the EU’s CE and reversed epsilon markings. The UKCA marking applies primarily to manufactured goods that are placed on the market in Great Britain, from microwaves to laptops and from pint glasses to electrical equipment. Products requiring the UKCA marking are valued at approximately 25%, or £110 billion, of manufacturing imports.
For most product sectors, recognition of the CE and reversed epsilon markings in Great Britain is due to end at 11 pm on 31 December 2022, but we know that businesses face increasing burdens with cost of living increases and global supply chain challenges. The main objective of the statutory instrument is to provide businesses with additional time to transition to the UKCA regime and give them greater flexibility in how they can legally place products on the market in Great Britain. It is being made using the powers in section 8 of the European Union (Withdrawal) Act 2018 to address deficiencies arising from EU exit. Without the measures implemented by the instrument, industry will have to meet UKCA requirements from 1 January 2023, at a time of economic hardship for many businesses. Following the UK’s exit from the European Union, the UKCA marking was introduced in Great Britain to replace the EU’s CE marking. As a result of EU exit, we have the autonomy to set our own product regulations and ensure that they work for businesses and consumers throughout the country.
To place products on the market in Great Britain, manufacturers must ensure that products meet the essential safety requirements of relevant product legislation. Compliance is achieved by following a conformity assessment procedure. For lower risk products manufacturers can self-declare compliance, and for higher risk products manufacturers may need to go to a conformity assessment body for product testing.
We have engaged with businesses on the challenges that they have faced in transitioning to UKCA, and the feedback that we received led to the announcement in June 2022 of a range of measures to address key issues. Those transitional measures have been welcomed by businesses, and the SI will implement them. Officials have delivered an extensive programme of domestic and international engagement to support businesses transitioning to the UKCA regime. They have also engaged with UK conformity assessment bodies and worked closely with the UK Accreditation Service, UKAS, to ensure that the accreditation process is as smooth as possible.
Despite the work that we have undertaken since the introduction of the UKCA, industry engagement has indicated that the current economic circumstances are making it more difficult for businesses to meet UKCA requirements, hence the need for further Government action. Although we recognise that a further extension to recognition of the CE marking may raise questions about the future transition timescales for the mandatory UKCA regime, we believe that the benefits of reducing immediate burdens and costs for industry in the current economic climate outweigh the potential risk of business hesitancy to prepare. UKCA marking remains valid when placing goods on the market in Great Britain, and we will continue to engage closely with industry to provide support and understand how to take a pragmatic approach by improving regulation to the benefit of businesses and customers.
Let me explain what the key elements of the SI do in more detail. It extends the time for existing transitional provisions, allowing certain products meeting EU requirements and markings to be placed on the market or put into service in Great Britain. That will give businesses the option to choose to use the CE marking for a further two years until 31 December 2024.
Secondly, the SI provides that when a manufacturer has undertaken any steps under EU conformity assessment procedures in the period until 31 December 2024 but the goods have not been placed on the GB market, those steps will be taken to have been done under the equivalent UK conformity assessment procedures. That applies for as long as any certificate issued is valid or until 31 December 2027, whichever is sooner.
Thirdly, the SI extends the time for existing labelling easements. That will allow businesses to affix the UKCA marking and to include important information for products imported from European economic area countries and, in some cases, Switzerland on a label affixed to the product or accompanying document, rather than on the product itself. There are different rules for medical devices, construction products, cableways, transportable pressure equipment, unmanned aircraft systems, rail products and marine equipment.
To conclude, recognition of the CE marking in Great Britain is due to end at 11 pm on 31 December 2022 for the product sectors in this instrument. Its main objective is to provide businesses with the additional time to transition to the post-exit independent UK conformity assessment regime requirements to legally place products on the market in Great Britain. I am sure hon. Members will recognise that, at a time of cost of living increases and global supply chain challenges facing UK businesses, it is right that Government provide businesses with more flexibility, so I urge the Committee to approve this SI.
Kevin Hollinrake
I thank the hon. Lady for her contribution, and the hon. Member for Brighton, Kemptown for his intervention.
The fact that we are taking a pragmatic approach to the issue should be welcomed, not challenged. Of course, the hon. Lady is there to provide challenge, but it is important, given the current economic circumstances, that we listen to businesses, which is what she encouraged us to do. That is one of the reasons for the delay. We have engaged with and listened to the industry’s concerns and have responded accordingly.
The hon. Lady asks by what mechanisms we do that. We have regular face-to-face meetings; I have meetings and webinars, and correspond all the time with businesses, and it is quite right that we do that. This is a sensible delay, and shows that we can use our autonomy to support businesses and provide flexibility to use either marking for now—UKCA or CE markings.
The hon. Lady is probably underestimating the amount of work that was done by manufacturers in this area. It is our best estimate that 89% of UK manufacturers either had or were planning to introduce the UKCA mark by the end of this year, so it is not as if no progress has been made. It is just that we did not want to disadvantage some businesses that had not managed to make that progress. Significant progress has been made. We do not expect to have to extend the provisions further, but it is right to extend them now and take a pragmatic approach.
The hon. Lady was quite critical of the general UK approach to product standards. I have met representatives of the Office for Product Safety and Standards on a number of occasions, and I have the highest regard for them. They are hard-working, professional civil servants, who take their job seriously and do a fantastic job. She made a good point about products sold online that might not conform to standards, which is a point I raised with the OPSS when we first met: about whether there is a fair and level playing field for other UK businesses when an online marketplace selling into UK customers might not meet relevant standards, and the different responsibilities of those marketplaces. That can be challenged on the basis that they do not believe they are a distributor. We need to look into that and are doing so as part of the product safety review, and I am very interested in the outcome.
Seema Malhotra
Perhaps the Minister was about to say when the Government will be publishing their product safety review due in spring 2022. That commitment was made by Ministers, not civil servants, unless he wants to tell me otherwise. I think we all respect the civil servants, who are playing their part. This is a question about the Government’s priorities and why the measures have been delayed.
Kevin Hollinrake
It was not this Minister who made that promise, so I cannot speak to that particular commitment, but any review should be done properly and not rushed, and we need to get this right. Various things have happened over recent years that have delayed all kinds of things, as I think the hon. Lady would understand, with a pandemic followed by a cost of living crisis and, it is fair to say, some political instability, but we need to move on from that.
Seema Malhotra
I thank the Minister for giving way. Given that it has been at least six months since spring 2022, will he undertake to provide a new timeline for when he expects the review to be published? Now that he is the Minister, I am sure he can get a briefing on how far away from publication we are, and he could then share with the House whether there are any further issues.
Kevin Hollinrake
The hon. Lady will be used to the phrase “soon”, “very soon” or whichever she wants to use—
Kevin Hollinrake
Yes. We are working to bring the review forward as quickly as possible, but as I say, we want to make sure that we do a good job and not just accelerate it to an arbitrary date, which might mean the review is not as sound as it could be. There are some other things that I have asked the OPSS to look at in my first weeks as Minister for Enterprise, Markets and Small Business.
Kevin Hollinrake
I will not give way any more. I want to challenge a few of the other points that the hon. Lady made that do not relate to this SI. She talked about low growth. We have had the third fastest growth in the G7 since 2010, so she needs to reflect on how she defines “low growth”. The only countries that have grown faster than the UK over the last 12 years are the US and Canada, so we have grown faster than Germany and France, for example, and she might want to reflect on that. She also mentioned high levels of tax. We have had to put taxes up to balance the books, because that is what we as a party believe in doing.
The Chair
Kevin Hollinrake
I apologise, Mrs Latham—she started it.
I do not agree that we should stick to the CE marking and not have our own product standards system, because that would miss an opportunity and we would then be locked into the EU rules. Perhaps that is what the hon. Lady would prefer, but we on the Government Benches would not; we want to pursue our own regime that better suits UK businesses and consumers.
This legislation will provide industry with additional time to transition to the post-exit independent UKCA regime requirements for most product sectors. It will give businesses greater flexibility in how they can legally place products on the market in Great Britain by allowing them to use either the CE marking or the UKCA marking until 31 December 2024. Without this legislation, from 1 January next year, businesses that do not comply with UKCA requirements would not legally be able to place their products on the GB market. That would potentially cause short-term market and supply chain disruption, which would not be desirable at all for manufacturers and could cause reduced product availability and could translate into higher costs for commercial supply chains and consumers. We will, of course, continue to engage with industry closely to provide support to businesses and to understand how to take a pragmatic approach to improving regulation to the benefit of businesses and consumers, while maintaining our commitment to higher levels of protection for UK consumers.
Question put and agreed to.