(4 weeks, 1 day ago)
Lords ChamberMy Lords, it is hardly surprising that the Secondary Legislation Scrutiny Committee highlighted this instrument as likely to be of interest to the House on the grounds that it is
“politically or legally important and gives rise to issues of public policy”.
To that, I would add that it is constitutionally important.
I am therefore grateful to the noble Baroness, Lady Hoey, for proposing this Motion to annul the regulations. Under them, the UK Government will impose EU import laws on certain packed agri-goods entering this country from the rest of the world such as basil, cut flowers, fruit, and certain chicken products from Thailand and China. Not only, therefore, is Northern Ireland to be subject to the EU’s economic and trade laws, or even the lighter-touch version we are told is the aim of the Windsor Framework for goods going there from GB, but so too is the whole of the UK to be under certain EU laws.
The Government say that they want to promote the integrity of the UK’s internal market. That is something they also claim to desire in the new Product Regulation and Metrology Bill. I suggest that one way to do that is to extend the UK’s post-Brexit trade freedoms to Northern Ireland and continue the serious negotiations for revising the 2019 agreement, which combined sticks with carrots. However, the Government intend to do so by imposing EU laws on the rest of the UK by statutory instrument and instead of the UK’s own statutory regime. That sounds to me to be mighty like the Chequers agreement, which was rejected the by House of Commons three times, but piecemeal and by the back door of statutory legislation. Can the Minister reassure me that this is not the case?
The Windsor Framework, which was at least put to a parliamentary vote, is, like most episodes in the complicated history of my native country, Ireland, testimony to the way difficult problems become intractable, and complexities become overwhelming as a result of political interests which want not to resolve them but to the exploit difficulty for political gain. We heard about some of those interests tonight. The Windsor Framework was announced by the then Prime Minister, Rishi Sunak. It was said to ameliorate the obstacle-ridden movement of goods from one part of the UK to another —Northern Ireland. There was much fanfare, many photocalls with the EU commissioner, warm words and a hotchpotch of operational changes to another flawed settlement imposed by the EU on this country: the Northern Ireland protocol.
However, the protocol was not supposed to be permanent. In parts, it made it clear that both parties accepted the Belfast/Good Friday agreement and the integrity of the UK’s internal market. Each party was also bound to best endeavours legally to resolve what was acknowledged to be a temporary arrangement and designed—I fear—to meet the EU’s desire to keep Northern Ireland as a fief subject to EU economic law. By retaining under its laws part of the sovereign UK, the EU violated the Good Friday agreement, whereby constitutional change must be by the consent of the people, and the promise in the 2019 settlement to respect and accept the integrity of the internal market. This instrument under the Windsor Framework therefore has a flawed pedigree.
I did not vote for the Windsor Framework. I did not and do not support the imposition of EU laws on one part of the UK in violation of this country’s sovereignty without a policy of such importance being a matter of primary legislation. It should not be smuggled in the back door to undo the gains of Brexit for most of this country in order somehow to right the wrongs under which Northern Ireland continues to suffer.
My Lords, I refer to my registered interest as a member of your Lordships’ Secondary Legislation Scrutiny Committee and of the Government’s veterinary medicines working group.
It will come as no surprise to anybody in your Lordships’ House that I support the Windsor Framework, as I supported the Northern Ireland protocol. Therefore, I do not support the Motion before us to annul this statutory instrument.
I believe that the Windsor Framework was the best means of dealing with the challenges presented by Brexit for trade and goods on the island of Ireland. Before Brexit, goods moved freely across the island, helping to sustain and underpin our economies in Ireland north and south. To take the example of the dairy industry, milk is supplied from farmers in Northern Ireland. It is processed in factories in the Republic of Ireland, and it comes back, either as butter, whey or cheese, and is sold in the north—and vice versa. We have to give that due recognition. This dual nature and, I suppose, the fact of the all-Ireland nature of part of our economy were recognised in the Good Friday agreement, through the three-stranded relationship and the establishment of the political institutions: the Assembly, the Executive, the North/South Ministerial Council, with north-south implementation bodies, of which one was InterTradeIreland, and the British-Irish Council.
Prior to and since the vote on the Brexit referendum, my colleagues in the SDLP and I have always insisted that there was a need for a special status for Northern Ireland due to the unique trading and other relationships on the island. That has not diminished and manifests itself in the Windsor Framework, which exists to manage those challenging trading relationships. Therefore, we enjoy dual access to the UK internal market and to the EU customs union.
Where there are imperfections with some areas of trade, as has been demonstrated by some of the Windsor Framework instruments, they need resolution, not annulment, through dialogue and negotiation between the UK and the EU, as is happening with veterinary medicines—that work is ongoing—otherwise our agri-food industry could be undermined.
Having listened to the noble Baroness, Lady Hoey, the mover of this Motion, and the noble Lord, Lord McCrea, I note the desire to challenge every piece of secondary legislation on the Windsor Framework as an attack on the constitutional integrity of the United Kingdom. I think this is a little bit disingenuous, because notwithstanding the Windsor Framework and my own political position, Northern Ireland remains within the UK.
This was the view of those people—many who sit on the opposite Benches as well as my colleagues from other parties in Northern Ireland—who argued for the hardest possible Brexit. I say to them: sometimes you get what you argued for. Put simply, it would have been better for us to remain within the EU. I am pleased that my colleagues on the Front Bench in the new Labour Government are working with the EU—via the Prime Minister and other senior Ministers, such as the Paymaster-General—on a reset of relationships, notwithstanding the realities of the situation. I hope that leads to a resolution of all the outstanding difficulties and to less tension and brinkmanship. Through less tension and through negotiation, you can build your economy and good relationships based on collaboration and co-operation.
Yesterday there was a meeting of the Specialised Committee on the Implementation of the Windsor Framework, covered by a joint statement. The joint chairs welcomed the operation of tariff rate quotas for certain agricultural products, and they discussed the intensive work under way in the areas of agri-food, customs, medicines and trade. They noted the importance of
“continued constructive joint working to support those efforts and monitor progress”.
We should all support the Government and the EU in that important work to achieve the full and faithful implementation of the Windsor Framework, and to ensure that wrinkles and challenges are overcome and resolved for hauliers, businesses and the logistics industry. I believe that serves the best interests of all in our communities in Northern Ireland, ensuring that the best possible outcomes are achieved for our economy, society and communities.
The purpose of this instrument on the retail movement scheme for plants is to expand the list of agri-food goods imported for retail into GB from the rest of the world that can move to Northern Ireland under the Northern Ireland Retail Movement Scheme, an issue referred to by the noble Baroness, Lady Hoey. This is all achieved by making changes to the entry requirements for importing these goods into GB so that they can align with the EU-derived entry requirements for importing such goods into Northern Ireland. As a member of the Secondary Legislation Scrutiny Committee, I note that we recognised—remember that our job is purely process driven—that this piece of legislation was likely to be of political interest. That is probably why we are debating it tonight.
It is important to emphasise that the changes made by this instrument will ease the movement of certain goods from GB to Northern Ireland via the Northern Ireland Retail Movement Scheme. In fact, Defra emphasises that the changes made by the instrument were sought by business. Those who argue vociferously against this and other statutory instruments do so, they say, on the lack of proper consultation on constitutional imperatives. Can the Minister, my noble friend Lady Hayman, advise us of the type and nature of the consultation that has already taken place with businesses?
It is important to emphasise that businesses want to see a resolution to all the challenges presented by Brexit and the bureaucracy. They have said to me that they welcome any agreement when faced with the catastrophic alternative of a no-deal Brexit. That is why businesses have been fully co-operative in all these areas of the Windsor Framework. Business and trade in Northern Ireland welcomed an agreement that provided continued access to the all-Ireland market, which many businesses in Northern Ireland relied on. Furthermore, business welcomes a unique solution for a unique place, with trade, social, family and emotive ties with both Britain and Ireland. But it also wants any resolution of the wrinkles in the bureaucracy.
(1 month, 2 weeks ago)
Lords ChamberMy Lords, I thank the Minister for his analysis. It is a pleasure to congratulate him on his appointment and welcome him to the Government Front Bench. I have greatly enjoyed working with him on other enabling Bills, such as the CPTPP Bill, and find myself in agreement with him on many issues. I also welcome the noble Baroness, Lady Winterton of Doncaster, and congratulate her on her winning maiden speech and her extremely impressive parliamentary career. I look forward to her future contributions to this House.
This Bill can be read in two ways. First, it can be read as an enabling Bill, to enable regulation on product safety and consumer protection to be updated, to keep pace with new products hitting the marketplace and new platforms for the market, especially online retail. The Bill, as we have heard, will update product regulation to keep pace with market developments and new marketplaces, and provide, as we have also heard, a means of recognising new or updated EU product requirements, with the intention of preventing additional costs for business. Noble Lords across the Chamber have commented on this, and we have heard many examples of the scary risks from e-bikes, the safety mechanisms that do not work and the calls on the London Fire Brigade. This is all very illuminating and, where necessary, I would totally support the updating of safety and product regulation.
Secondly, in addition to the first way of reading the Bill, it can be seen, as other noble Lords have pointed out, as a Bill to rationalise the UK’s product regulation across the UK’s internal market and to keep it up to date with EU product regulation, which Northern Ireland has been obliged to accept. The King’s Speech guidance illuminates the second reading of this measure, although I am afraid that the Bill is less than forthright about it. I hope the Minister will forgive me if I have questions about that. Page 38 of the guidance says:
“As most product safety legislation falls within scope of the Windsor Framework, EU changes to product regulation only apply in Northern Ireland, resulting in divergence within the UK internal market as EU laws are updated. This Bill gives the Government specific powers to make changes to GB legislation to manage divergence and take a UK-wide approach, where it is in our interests to do so”.
The House of Lords Library briefing, for which I am most grateful, highlights this provision as follows:
“The Government has stated the Bill would give it specific powers to make changes to … GB … legislation to manage divergence within the UK internal market. … Under the bill’s provisions, the government would be able to amend GB legislation in order to … take a UK-wide approach”,
et cetera.
In the impact assessment for the Bill, section 4 explains that the Government’s preferred option to change the law on product framework will ensure the framework is
“agile in its response to emerging threats, new technologies and changes in EU law … This option will ensure that the Government can fully implement a framework for recognising existing EU requirements for a range of products”
and ensure powers
“to enable the Government to manage divergence pragmatically”.
This suggests that the Government will be empowered, in order to manage divergence, to introduce and impose EU goods and product law as they decide. It implies that the EU goods laws now imposed on Northern Ireland could or will be extended to the whole of the UK. Can the Minister clarify whether this is correct and what precisely the Government intend in order to take a UK-wide approach to the internal market, and under which powers particularly conferred in the Bill?
Are the Government planning to end the dual system either at one stroke or in a piecemeal way? This is a dual system in which we have an EU system for Northern Ireland products and UK arrangements which may diverge from inherited EU regulation. Will that be by imposing EU product laws on the whole UK manufacturing sector in order to promote the integrity of the internal market?
I now turn to specific questions on Clauses 1 and 2. Clause 1(2) gives the Secretary of State powers to make regulations for
“marketing or use of products in the United Kingdom, which corresponds, or is similar, to a provision of relevant EU law for the purpose of reducing or mitigating the environmental impact of”
goods. The Henderson Chambers barristers, Prashant Popat KC and Noel Dilworth, in an analysis published on the web, for which I am grateful, say that Clause 1(2)
“empowers the Secretary of State to harmonise UK law with EU law in order to reduce or mitigate the environmental impact of products”.
Can the Minister confirm that he agrees with this analysis and that the UK Government can now decree that our producers must follow such EU legislation as they—the Government—decide, for the purpose, of course, of reducing or mitigating the environmental impact of products?
If so, can the Minister point me to specific pieces of EU legislation, which, to date, fall in this category—since, of course, 2018—that is, any existing EU regulations, and which UK goods and producers will be affected by and subject to it?
I am sorry for the list of questions, but I hope the Minister will bear with me. Is it supposed to be a dynamic alignment, as other noble Lords have suggested, so allowing the continued keeping up with EU laws on product safety? If so, what is the certainty that producers can have as to whether the rules will change, even when some product is already on the assembly line? Who will judge whether a product falls within the law—in fact, EU law—and who will operate the law?
I now move on to the powers given for product requirements in Clause 2, to require conditions to be met for products in the UK. I refer to Clause 2(7), which allows that
“product regulations may provide that a product requirement is to be treated as met if … a requirement of relevant EU law specified in product regulations is met, or … such a requirement is met and conditions specified in the regulations are also met”,
provided due regard has been taken of
“the social, environmental and economic impact of making the provision”.
Does this mean that, in addition to the assimilated or inherited EU law, the Government intend to allow or impose a replacement of UK product law with EU product regulation, and in practice, the shadowing of the EU’s level playing field laws and EU economic law for goods in a dynamic alignment?
If my reading is correct—I would like some confirmation on this—it suggests that the Government intend, under cover of the Bill, to bring in the Chequers agreement piecemeal by the backdoor, which was rejected by the House of Commons three times. Would the Minister agree with that analysis in general?
To conclude, I urge the Government to embark on their new term of office, for which I wish them very well, by being open and transparent with the people of this country, to rethink the Bill to allow only for standard updating procedure for product regulation and metrology where absolutely necessary, and to drop the enabling powers in the Bill which allow them to impose EU law and regulation alignment by the backdoor.
I conclude by proposing, as other noble Lords on this side have already outlined, that the UK recognises the best international standards, wherever they come from, and that it plays its part in helping to shape these standards for product regulation, as it has done so successfully in so many other areas. I note here international financial services regulation in particular. Indeed, I echo the noble Lord, Lord Lansley, in saying that the UK is well-placed to chart its own course and to reflect the best international standards, without looking over its shoulder to enact EU regulation. Much of it, I fear, is unequal to keeping pace with the best—and the worst—new products as they hit the market and the best international standards.