Northern Ireland After Brexit (Northern Ireland Scrutiny Committee Report) Debate
Full Debate: Read Full DebateBaroness Anderson of Stoke-on-Trent
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(1 day, 11 hours ago)
Grand CommitteeMy Lords, there are many parts of the Windsor Framework, and every time I have a conversation or a briefing about it, there is always something new, and a new part of that world. However, puffins was not where I believed today’s debate was going to go. I hate to disappoint the noble Lord, Lord Empey, but I have been in post for three weeks and the power part may still yet be lacking—but I will see what I can do for him, because I would never seek to disappoint.
We have had a truly substantive and insightful debate this afternoon. I begin by thanking my friend, the noble Lord, Lord Carlile, for securing this debate and for his stewardship of the Northern Ireland Scrutiny Committee. I also take this opportunity to wish my noble friend Lady Ritchie a very happy birthday.
The report we are considering today is very important, not just because of the detailed work clearly undertaken but because the engagement of businesses and civic society with Northern Ireland’s trading arrangements is important at both a constitutional and economic level. Similar themes were also developed by the very thoughtful review of the Windsor Framework conducted by my noble friend Lord Murphy of Torfaen, and I am grateful to hear his further reflections today. There is something so special and addictive about Northern Ireland that means that those of us exposed to it become completely addicted and can never walk away from it. I think that is reflected by the fact that we have two former Secretaries of State participating today.
I have listened with great care to the contributions made from all sides of the House and I want to thank the noble Lords, Lord Dodds and Lord Caine, for reminding us of the stakes at play in Northern Ireland, both economic and cultural. Although noble Lords have different views across the diverse range of issues discussed today, a common thread has been our collective pledge to Northern Ireland’s prosperity, security and economic success, and a shared agreement that businesses, civic society, organisations and public authorities alike should have their voice heard in the very trading arrangements that necessarily underpin that success. Many specific points were raised today, and I will reflect on Hansard to see if I have missed any, but I shall endeavour to answer all the points raised.
I think it will be helpful if we place today’s discussion in context. I should first like to set out the Government’s ongoing commitment to the Windsor Framework and protecting the UK internal market—I assure the noble Lord, Lord Caine, that my speech has not been doctored—while appreciating that there can always be room for improvement. As we have heard today, not least from the noble Lord, those commitments were set out in our manifesto, and we consider them vitally important. They guide our reset with the EU, and they are our guiding approach to securing a vital new agreement with the EU that will smooth trade flows of agri-food goods. Those twin commitments are also important as they reflect the importance of trading arrangements that respect Northern Ireland’s place in the union, avoid a hard border on the island of Ireland, and which work on an agreed basis with the EU.
It is only through this approach that we can give certainty to businesses and consumers in Northern Ireland on the rules that apply, as they trade uniquely across two markets. That is why it contains important mechanisms to enable participation and facilitate that voice; the ability of the Northern Ireland Assembly to scrutinise EU rules; structures for businesses and civic society to engage with the UK and EU on the framework’s implementation; arrangements for the Government and Northern Ireland Executive to work together and ensure that Northern Ireland’s voice is heard; and a periodic vote in the Northern Ireland Assembly on continuing these arrangements. The first such vote, as we heard, triggered a review of the framework that was carefully and thoughtfully conducted by my noble friend Lord Murphy with a wide range of stakeholders. The Government are now taking action on all the recommendations set out in that review.
That brings me to the real topic of today’s debate: the one-stop shop. Noble Lords are very aware, it seems, of the announced £16.6 million for an enhanced one-stop shop regulatory support service, designed to navigate the knowledge gap facing small and medium-sized enterprises. This will be operational in the next financial year, which I gently remind noble Lords begins next week. We are working to make sure that this can work. I assure your Lordships’ Committee that the one-stop shop will support GB businesses as much as it will support businesses operating in Northern Ireland. I will come on to some of the other points that were raised in relation to that shortly.
Progress has also been made on veterinary medicine—something I will again touch on, in terms of the detail raised today. The UK Government worked extensively with industry in the run-up to the end of the grace period. I am pleased to say that the transition has been without significant disruption—I am not saying there has not been any—and there have been no significant supply issues or other impacts, although we continue to monitor this closely.
It would be remiss of me not to mention that the Government have also allocated £2.25 million in funding to InterTrade UK over the next three years, led by the noble Baroness, Lady Foster—funding that will allow it to continue its vital work in advising on and promoting trade within the UK. I am sure that the work of InterTrade will assist in continuing to boost the economy of Northern Ireland, as outlined by my noble friend Lady Goudie. I remind noble Lords that Northern Ireland is the fastest-growing part of the United Kingdom. I place on record my personal thanks to the noble Baroness, Lady Foster, for her work at InterTrade UK.
My noble friend Lady Ritchie raised an important point about the role of InterTrade UK and the one-stop shop. I hope and would expect that the one-stop shop will work with InterTrade UK and other stakeholders to support trade and that this will be something that works together.
I thank my noble friend for addressing that issue, but what about InterTradeIreland, which already has a hub and could provide some beneficial information?
Given the nature of InterTradeIreland, that is a matter for InterTradeIreland and is not something I can comment on from the Dispatch Box.
With regard to the specifics of the report, in short, a lot has been done, but there remains more to do, as this report by the committee highlights. Indeed, the Government’s response to the committee’s report following the independent review shows as much. This leads me to our next steps. We are ensuring that the stakeholder engagement landscape captures a broad spectrum of businesses in a new Northern Ireland business stakeholder group—just to add to the wonderful flowchart that we saw earlier today. We are also looking at how the Government and devolved departments can conduct engagement and capture the views of industry, so that this is joined-up and gets the right outcomes earlier on.
The Northern Ireland Executive participate in all structures under the Windsor Framework, yet we acknowledge that there is more to be done between the Government and the Executive to ensure that public authorities link up and address issues with changes to regulatory proposals earlier in the process. We are therefore implementing new processes to address that and facilitate better engagement at all levels, beyond the Cabinet Office executive office working group.
Can the Minister say whether the United Kingdom will be tabling proposed improvements to the Windsor Framework as part of the reset negotiations?
The noble Lord, who has been a Member of the other place and only recently of your Lordships’ House, will be aware better than me that I am not in a position to give any detail of ongoing negotiations while they are currently ongoing. The noble Lord will be aware that the impact on Northern Ireland is key to some of the negotiations, which is why we are focusing so much effort on the SPS deal.
We will continue to welcome contributions from the Executive, including at the Joint Committee—the governing body for the Windsor Framework and the withdrawal agreement as a whole. More broadly, looking at the committee’s report, we are taking forward a new phase of the Trader Support Service, which provides vital support to businesses with goods movements. Those issues were covered in the committee’s report and, in December 2025, we set out more information on the consortium to deliver it. We are working to give greater discretion to the Democratic Scrutiny Committee; it will be allowed greater discretion over how it conducts its scrutiny and the timelines for it. We are backing this up in Brussels, increasing resourcing, as requested by the Office of the Northern Ireland Executive in Brussels, so that it can provide vital perspective to the institutions there as proposals are developed and considered.
I move on to transparency and awareness. Our approach seeks to ensure that the broadest range of voices from across Northern Ireland is heard, including from business and civic society. It also ensures that there is the right space for technical engagement between government departments and their counterparts in Northern Ireland and the EU institutions. It seeks to ensure that devolved departments are equipped with the right information about regulatory proposals to consider their impacts and advise the Assembly further on Northern Ireland’s interests.
Where issues are identified, we have already shown our capacity to take action, whether domestically, where we have announced consultation activity on toy safety and chemicals labelling and ensured that the UK internal market is protected in response to concerns from industry; or bilaterally, such as on dental amalgam or the arrangements to protect the supply of pharmaceuticals. On all these issues, we have listened to stakeholders, whether they are business organisations, civic organisations or the vital work of the Democratic Scrutiny Committee of the Northern Ireland Assembly.
Just as we will continue to support the scrutiny of the Windsor Framework arrangements and the rules that apply in the Assembly, and by the Independent Monitoring Panel, so too will we support the work of InterTrade UK on promoting the economic bonds and strengths of all parts of the UK, and the east-west council in developing the ties across it.
I move on to some of the specific questions in the order that they were asked and not necessarily grouped by issue. The noble Lord, Lord Carlile, and the noble Baroness, Lady Sanderson, touched on EUR-Lex. Although the EU’s EUR-Lex tool can be used to read and consider detailed legal terms, we recognise the need for businesses to have clear and accessible guidance. The enhanced one-stop shop we are delivering will do that, providing businesses with tailored advice to navigate those issues. We believe that this is the best way that we can support businesses with explaining the rules that apply.
I apologise for interrupting the Minister. Is she saying that something better than EUR-Lex will be part of the one-stop shop, and that legal problems will therefore be solvable through that structure?
I am. Noble Lords heard it here first. Perhaps I do have a little power, as the noble Lord, Lord Empey, said—or rather, the people behind me do.
My noble friend Lord Murphy touched on the SPS agreement and how important it is. We are currently negotiating with the EU on an SPS agreement to make agri-food trade with our biggest market cheaper and easier, cutting costs and removing barriers to trade for producers and retailers across the whole of the UK. The agreement will benefit Northern Ireland through the interplay with the Windsor Framework, by making a more consistent approach to agri-food and plants. We will smooth the flows of trade still further. On 9 March, the Government provided an update on the changes this would entail for businesses. This includes a call for information from businesses so that the Government can understand exactly what they need.
My noble friends Lord Murphy and Lord Hain asked about the Office of the Northern Ireland Executive in Brussels and the investment provided. The Government have agreed to provide funding to this office to cover up to three additional posts to ensure that Northern Ireland’s interests are accounted for in Brussels and that EU policy-making is accounted for in Belfast.
Parity of esteem was raised by my noble friend Lord Murphy. This seems particularly apt given how close we are to the anniversary of the Belfast/Good Friday agreement. We are committed to the agreement in all respects, which of course includes parity of esteem for the identities and aspirations of both communities. The application of the Windsor Framework does not shake that commitment.
Gently, I want to touch on the speech of the noble Lord, Lord Lilley. He raised many issues related to how we got to this point and the question of what is temporary. I was given a slight history lesson earlier today about how many pieces of legislation have the word “temporary” in them, and that has not exactly been an unusual part of our legislative framework historically. I gently suggest that the agreements we have been discussing today were signed by his party when in government, and my party is trying to make the Windsor Framework work for the people of Northern Ireland, which is why we are also currently in the process of resetting the relationship.
They were, of course, signed by the past Government, but they were described by the EU as temporary. That was the sole justification the EU gave for including trade with Northern Ireland in the withdrawal agreement. She cannot make a party-political point about it. She is either going to ignore the EU or believe it.
I believe my party is quite clear on our position on the EU, not least because I believe in international law and complying with our agreements.
One of the issues raised by the noble Baroness, Lady Foster, was on veterinary medicines and the prices going up. She raised a specific case. I should very much like to hear the detail of it because to date, we do not have any evidence of prices going up.
I have written to the Secretary of State about the issue.
I have not had sight of that question and, apparently, neither has the person who gave me the answer. But online retailers continue to operate in Northern Ireland. As in the rest of the UK, prices between online retailers may vary. We recommend pet owners and others do their research to see which retailer best meets their supply.
The noble Baroness, Lady Foster, and my noble friend Lady Ritchie, as well as the noble Lord, Lord Caine, rightly raised the issue of haulage, logistics and the trusted haulier scheme. We have accepted the recommendations of my noble friend Lord Murphy, in this area and are looking at all possibilities to reduce frictions for logistics and haulage businesses on an ongoing basis. In parallel, we will continue to monitor the effectiveness of the available facilitations. The Government have also established a new Northern Ireland business stakeholders’ group as a formal means of engagement between the Government and Northern Ireland business organisations. This group includes representations from key sectors, including the Road Haulage Association, and provides a direct channel for input into technical UK-EU fora.
The noble Lord, Lord Elliott, raised the issue of animal and livestock movement. He will also be aware that I have met the Ulster Farmers’ Union and some young farmers, and this issue has been raised. The noble Lord will be aware that the best way in which to manage this will be through an SPS agreement and that is why we are seeking to move quickly to deliver on this issue, but I have heard both him and the representations made by others.
The noble Lord, Lord Jay, who previously chaired the committee, as well as the noble Baroness, Lady Ludford, and noble Lord, Lord Rogan, touched, as did other Lords, on the record of regulatory divergence. The Government’s priority is to deliver the enhanced regulatory one-stop shop to advise and support businesses in trading across the whole UK market. We believe that this one-stop shop is far better placed to support small businesses that face challenges. We will seek for this one-stop shop to provide regulatory alerts to businesses on changes to the rules, which we would expect to be accessible to them. The Windsor Framework and a set of online tools provided by the EU can already be used to find regulations of relevance to Northern Ireland. It is for these reasons that our response to the independent review of the Windsor Framework set out that a one-stop shop would be our focus going forward.
I apologise for interrupting the Minister again. I am a bit like a dog with a bone on this question of a database, because I am still not entirely clear that a one-stop shop answering specific queries is the same thing as a comprehensive database of all applicable laws being kept up to date, which is not static but dynamic. They are two different things, and I am not reassured by the Minister. I am sure that she responds in good faith, but I tried to suggest in my remarks that the two were conflated. I am not sure that her earlier answer to the noble Lord, Lord Carlile, fully removes my doubts on the subject.
The Government have made a decision that we will focus on helping people work with it, rather than keeping a list, so that we can make sure that people have the support they need as they try to navigate the impact on their businesses and on their trade.
I apologise for intervening again, but will the Minister agree to meet me to discuss a way in which EUR-Lex change can be incorporated in the one-stop shop, possibly including some very simple ways of using existing techniques to simplify complex legal issues?
How could I ever turn down an invitation from the noble Lord? Of course, I am more than happy to meet him to go over the debate. More importantly, officials can be there to make sure that what he wants is reflected so that we can actually make this work. We are taking a pragmatic approach to try to make this work and make it as easy as possible, while at the same time hoping to negotiate an SPS deal that takes away a great many of the issues we are talking about.
No one could doubt for a second the commitment of the noble Lord, Lord Caine, to the people of Northern Ireland and to trying to make these issues work. He touched on the issues of Safeguarding the Union and his PQs—obviously, I sign off every one. I realise that I am now over time, but I am more than happy to have a meeting with the noble Lord to discuss Safeguarding the Union, if that is acceptable to him.
I want to reassure noble Lords on some points, starting with noble Baroness, Lady Sanderson, whom I assure that the interface will be user-friendly—or else—and will be focused UK-wide. The noble Baroness, Lady Foster, asked about hauliers, and I hope I have responded to her in full. If I have not, I will look at what she said and come back to her.
The noble Baroness, Lady Ludford, asked me about parliamentary committees in the other place. She will be aware that how it chooses to engage is a matter for the other place, and for Parliament as a whole, but I am delighted that noble Lords had the Northern Ireland Scrutiny Committee doing this very important work. I reassure the noble Lord, Lord Murphy, and the noble Baroness that we have accepted all the noble Lord’s recommendations and are seeking to implement them—one of the questions touched on that.
The noble Lord, Lord Caine, asked me about future legislation. I reassure him that we will talk about this—I would suggest in this Room, but possibly on the Floor of the House—in the next Session, subject to me now getting told off by the Chief Whip.
In conclusion, the message from this debate is clear: we must continue to listen to and act on the voices of businesses and civic society in delivering Northern Ireland’s trading arrangements. I give the Committee the continued commitment of the Government today that we will always take practical actions on concerns to protect the UK internal market and flow of goods, be that east-west or north-south. As we do so, our focus will remain on the prize of delivering real prosperity, where Northern Ireland remains one of the fastest-growing economies of the UK, in part thanks to its unique trading position and businesses having certainty about the facilitations available to move their goods under the Windsor Framework.
However, I am aware of the ongoing complexities of how this is operating on the ground and, on that basis, I will visit Northern Ireland very soon. Noble Lords, especially those in Northern Ireland, will be aware that I am not allowed to say exactly when, but I will be in Northern Ireland imminently to see how the Windsor Framework is operating on the ground. I will meet key stakeholders who are delivering this, as well as businesses, to see what next steps the Government should consider.
The Government will support only those trading arrangements for Northern Ireland that protect its place in the UK and its internal market, avoid a hard border on the island of Ireland and can be agreed. While there is more to be done to ensure that Northern Ireland’s voice is heard in London, Belfast and Brussels, the Windsor Framework really does provide the best basis for that, and we are committed to working alongside our partners in the Northern Ireland Executive and the EU institutions as we take it forward, alongside new agreements with the EU, so that we may build an even brighter and more prosperous future for people in Northern Ireland and across the whole United Kingdom.
I again thank the committee for its report and I look forward to continuing to work with it in the coming months—I really hope that I did not disappoint my noble friend Lord Carlile. On that final note, I wish all members of the committee a happy Easter and chag Pesach sameach.
Before the noble Baroness sits down, I ask for clarification on one point, and if she does not have it right now, perhaps she could write and put it in the Library. There are two parallel processes here. There is the EU reset and there are the specific conditions in the trade and co-operation agreement, where it is specified that there will be a review in 2026. I have asked the noble Baroness, Lady Hayman of Ullock, and others a number of times whether the Government were preparing for those. We have two separate processes, one a treaty obligation and one a set of political negotiations. We need to know what we are doing, otherwise we are going to get confused. If the noble Baroness does not have the minutiae of it at hand, I would be more than happy if she would write to me.