Recognition of Professional Qualifications and Implementation of International Recognition Agreements (Amendment) Regulations 2023
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Lord Offord of Garvel
That the draft Regulations laid before the House on 17 October be approved.
Relevant document: 1st Report from the Secondary Legislation Scrutiny Committee (special attention drawn to the instrument)
The Parliamentary Under-Secretary of State, Department for Business and Trade and Scotland Office (Lord Offord of Garvel) (Con)
My Lords, these regulations were laid before the House on 17 October 2023. They implement the world-leading recognition of professional qualifications provisions within the UK’s free trade agreement with Norway, Iceland and Liechtenstein—the EEA/EFTA states. This was one of the first free trade agreements to be agreed by the UK following our departure from the EU and continues our strong trading relationship with these valued partners. They provide certainty for professionals with qualifications from these countries who want to be recognised by UK regulators and work in the UK.
Given that the provisions in the agreement are reciprocal, UK professionals also benefit from reduced barriers when having their qualifications recognised in Norway, Iceland and Liechtenstein. I will begin with some background to explain what the provisions achieve. I will then move on to discuss the regulations in detail.
The UK signed a world-leading free trade agreement with Norway, Iceland and Liechtenstein in July 2021. Chapter 12 of the agreement outlines an ambitious system for the recognition of professional qualifications between the parties. Under the agreement, UK regulators are required to recognise comparable professional qualifications obtained in Norway, Iceland and Liechtenstein. Regulators in those countries are required to recognise comparable professional qualifications obtained in the UK.
Reciprocal provisions on recognition of professional qualifications are an important part of the UK’s services trade agenda, helping UK professionals enter new markets and deliver our world-leading services overseas. They also help at home, supporting overseas professionals to enter the UK labour market. Enabling this free flow of skills internationally leads to enhanced UK prosperity. Recognition of professional qualifications is a common feature in the UK’s modern trade deals, but the provisions we agreed with Norway, Iceland and Liechtenstein are relatively distinct by introducing binding obligations on regulators.
This agreement underpins our valued co-operation with long-standing trading partners on the recognition of professional qualifications. The Government understand the importance of continuity for British businesses. As such, this agreement seeks to maintain similar recognition of professional qualifications outcomes to the UK’s previous arrangements with these countries.
The UK is required to meet the terms of the agreement by 1 December 2023, and the Government are using powers contained in Section 3 of the Professional Qualifications Act 2022 to do so. Enshrining this system in legislation is necessary to ensure that the UK fulfils its obligations under international law. Without these regulations, some regulators will not have the necessary legal powers to meet the requirements of the agreement. These regulations will come into force at the same time that the UK’s EU-derived system for recognition of professional qualifications ends. This will ensure clarity and a smooth transition for regulators and professionals.
If it is helpful, I will now provide some detail on these regulations. They place a duty on all regulators of professions across the UK to recognise comparable professional qualifications obtained in Norway, Iceland and Liechtenstein. The regulations also give regulators the powers to recognise these qualifications where necessary. Regulators will be required to treat qualifications in accordance with the system set out in the agreement and in the regulations.
Lord Offord of Garvel (Con)
I thank the noble Lord, Lord McNicol, and the noble Baroness, Lady Randerson, for their contributions to this SI debate. We can deal with the points about the devolved Governments right now. Of course, the UK has a strong tradition of different professions and different countries doing different things. It is only since 1707 that we have all been working with one Parliament, and we had lawyers long before then. But on balance, we want to try to work as one country, and the whole point of doing these FTAs is that we form up to the rest of the world as one United Kingdom.
But there is a lot of flexibility within the devolved Governments. We have consulted with the Governments, and the devolved Administrations have confirmed that they can work with this SI—and they will then implement it in their own territories. It is perfectly within the rights of the Welsh to make a Welsh language requirement, in the same way as it might be in the Western Isles in Scotland to do it in Gaelic. That would be for those Governments to decide.
On the specific question raised by the noble Lord, Lord McNicol, on immigration, these three countries, Norway, Iceland and Liechtenstein, are pretty—well, we should not use the phrase “small countries”, but they are contained in terms of their interaction with the UK. Where is Liechtenstein? We would not expect there to be any eventual impact on immigration with reference to those three countries.
On the FTAs, as I said once before, we want to form up to the rest of the world as one UK. In fact, in my own portfolio, dealing with the utilisation of a lot of the FTAs, such as the one we have just done with Australia, we are finding that the key thing in their implementation is to make sure that we benefit the whole United Kingdom.
There has been extensive discussion with the regulators. As required by Section 15 of the PQ Act, we consulted affected regulators. When using the regulations using Section 3, we formally consulted the regulators, in January 2023. We are not required to publish a report online on that consultation. I hear what the noble Lord says about the SLSC, but there is very much a commitment from this Government to broaden and deepen trade policy. Probably the main benefit that we get from Brexit is going to be international trade, so we have an obligation to broaden and deepen trade policy.
With that, we can say that we now have these arrangements in place to proceed. As a reminder, this instrument places a legal duty on the UK regulators to recognise comparable qualifications in Norway, Iceland and Liechtenstein, and it gives regulators the power to recognise those qualifications, when they do not currently have the power in the relevant sector legislation.
This instrument has UK-wide application, and it will ensure that the UK is fully compliant with our obligations in the agreement. It will provide consistency across the statute book and provide clarity for Norway, Iceland and Liechtenstein, as well as for our own professionals.