Northern Ireland Protocol Bill

Debate between Baroness Ritchie of Downpatrick and Lord Purvis of Tweed

Committee stage
Tuesday 25th October 2022 Lords Chamber

[Lord Purvis of Tweed (LD)]

My Lords, I rise to speak to Amendments 2 and 6 in my name and support those in the name of the noble Baroness, Lady Chapman. As we start our customary, more-detailed consideration of legislation in Committee, I reflect on the point made by the noble Baroness, Lady Fox, who thought that we were preventing proper detailed scrutiny in a bullying way. However, I cannot see her in her place. Maybe she popped out. I look forward to her return to take part in the detailed consideration of the Bill.

I very much agree with the noble Baroness, Lady Chapman. I have considerable doubts about whether we will be able to legislate an agreement with the European Union. Fundamentally, we are tasked with an almost impossible job. I therefore agree that her amendment is a kind of security for this legislation: it does its best in making the Bill consistent with customary international law. We will also debate this on the next two groups. If we are to see a political agreement, what is the best way of legislating to allow that to be in place? I believe profoundly that this is not the way that it should be done. Nevertheless, if it is done this way, there should be some form of security area.

I very strongly agree with the noble Lord, Lord Kerr, that we should not pass legislation which is a clear breach of international law, as the Constitution Committee reported. Concern about government probity was highlighted earlier: if we have an amendment that relies on the Government themselves to exercise discretion on the exercise of powers, I have my doubts whether they would bring forward a clear view on that discretion. For example, under Amendment 70, the position of the former Paymaster-General in Committee in the Commons would have been that the condition would have been satisfied because talks had been exhausted. However, we now know that they have not been. That is not as a result of the Bill. Maybe the noble Lord, Lord Bew, is right. However, I suspect that if the talks were exhausted in July when we had the Bill in Committee in the Commons, and are not while we have it in Committee in the Lords, it is about the political basis. I am therefore not sure that the security arrangements would effectively be watertight.

My amendments, supported by my noble friend Lady Ludford, are straightforward. They are also part of a form of security that should be updated now, then continuously on the basis of these talks. As I mentioned earlier, the Commons was told in Committee that they had been exhausted, but new life has now been breathed into them. The Government said previously that this was owing to EU intransigence. Now Minister Steve Baker tells readers of the Times at the weekend that the Government say that talks are progressing because he stretched out a hand of reconciliation. Setting aside the contradiction, the reality is that we should be provided with more information, from now on and going forward, on the level and content of these talks.

For example, the EU proposals in October 2021 themselves said that there should be changes to the structure of ongoing talks and of the relationship between the EU and the people and institutions of Northern Ireland. However, I have not seen the Government’s response—the alternative presented by them in those talks. That would inform not only the mood of this House but our ability to pass legislation that gives regulation-making powers over the structure of that. I know what the EU has proposed; I do not know what our Government have proposed. If we are to consider, believe and call out EU intransigence, that case is harder when we know what the EU has put on the table but do not know what the UK has. How on earth can we come to the conclusion that it is being intransigent in these talks when we in this Chamber are effectively blind?

Now I think I understand, fundamentally, the dilemma of the noble Lord, Lord Dodds. He argued for Brexit, the majority of the people in Northern Ireland voted against it. He argued against the protocol, but the majority of the UK and the Conservatives inflicted that on him. This is a difficult dilemma, but ultimately it will mean that Northern Ireland, one part of the UK, will remain in an economic area of another entity, the EU single market. The only sustainable way that that can ever be for the benefit of the people of all parts of the UK is with agreement with that other entity. You cannot unilaterally legislate to enforce on another entity when you have already accepted that we are part of that entity. It is just an impossibility, so there has to be agreement, and in order for us to do our job in this House we have to know what the UK is putting forward in those talks. I should not imagine that our amendments will present the Committee with much difficulty.

[Baroness Ritchie of Downpatrick (Lab)]

My Lords, I thank the noble Baroness, Lady Chapman, and the noble Lord, Lord Purvis, for their probing amendments. I agree with them and believe that there is a mandatory obligation on the Government to provide us with details on the negotiations and to ensure that the regulations are published—many noble Lords across this Committee agree with that—so that we know what is actually going on.

I agree with the noble Baroness, Lady Chapman, that it would be much better if Ministers were investing their time in negotiations with a large degree of rigour with the European Union to produce the desired outcome in respect of the protocol with mitigations. That would achieve everybody’s objectives, including addressing the democratic deficit and the needs of those in the haulage industry and others so that there is no diminution in the good work that has already been achieved and so that better things can be obtained in terms of what we can gain by access to both the UK internal market and the EU single market, because our economy is much better when we have dual access.

In relation to dual regulatory zones, there is certain merit in them but there is also difficulty associated with them. That difficulty has already been highlighted by the dairy industry in Northern Ireland which, by and large, is all-Ireland in nature because the greater proportion of processing capacity lies in the Republic of Ireland. I think that point was referred to by the noble Baroness, Lady Doocey, at Second Reading. There are problems in relation to DAERA certificates and who grants them. I notice a quizzical look on the face of the noble Lord, Lord Caine, but I say again that Ministers should be involved directly in the negotiations. Those negotiations should take on renewed vigour. We should see the regulations and should have reports on those negotiations on a regular basis by way of parliamentary Statements to both Houses.

United Kingdom Internal Market Bill

Debate between Baroness Ritchie of Downpatrick and Lord Purvis of Tweed

Committee stage & Committee: 3rd sitting (Hansard) & Committee: 3rd sitting (Hansard): House of Lords
Monday 2nd November 2020 Lords Chamber

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, it is a pleasure to follow the noble Baroness, Lady Altmann, and other noble Lords in this very robust but genuine and philosophical debate about the role of the CMA and the office for the internal market. The general thrust of the debate has been that there needs to be a degree of independence in this body but also that it should embrace the devolved legislatures as well as that within Westminster and Whitehall. As the noble Lord, Lord Judd, said, to protect identities and recognise and acknowledge democracies that Westminster and Whitehall put in place with the devolved settlements, it is important that they are recognised. The best way to do that is through membership on an equal basis on the CMA and office for the internal market panels.

Like the noble Lord, Lord Hain, I was intending to address Amendment 131, which is now in the next group, because I agree totally with its sentiments, as well as Amendments 117, 118 and 119 in this group. It is interesting that, in its recent report, the Lords Constitution Committee states:

“The Government should explain why the Competition and Markets Authority is the right body to have oversight of the monitoring of the UK internal market”.


Perhaps the noble Lord will provide reasoning for that —I hope he does—because none of the noble Lords who have spoken this evening, apart from the noble Baroness, Lady Noakes, have seen any merit in this organisation doing the job that will be required if this legislation is implemented.

The Lords Constitution Committee also states:

“The Government should seek to make the Office of the Internal Market more clearly accountable to the different legislatures in the UK.”


If you want their buy-in—and, as the noble Lord, Lord Empey, has said, there is no buy-in in Scotland, Wales or Northern Ireland—it is going to be an uphill struggle for the Government to achieve that.

In looking at various aspects of this over the last few days, there is no doubt that members should be appointed by all four Executives on an equal rather than proportionate basis, with substantial stakeholder input from the business sector. It should have a dispute resolution capability and sufficient powers of enforcement. Its remit should include measuring additional costs of GB goods to Northern Ireland and the source of the extra cost. Coincidentally, this issue has already been referred to in this debate by the noble Lord, Lord Empey, and an information session was given by the Government to Northern Ireland businesses today, which said that there will be 30 million customs declarations on an annual basis between GB and Northern Ireland. That is the extent of the issue and the extent, for some of us, of the problem and the work required.

There is no doubt that the resources and information necessary to monitor the impact of the UK internal market as it relates to the implementation of the protocol could be covered in Amendment 131, in the name of the noble Lord, Lord Stevenson of Balmacara. I also highlight the capacity to be informed by relevant stakeholders and business and consumer groups. There is a view in the wider business and academic worlds that the Competition and Markets Authority is not a natural fit, as it deals with private, not government, business. The proximity of the CMA to BEIS would always leave it open to accusations of political influence, even though it is a non-ministerial department with strategic influence given by BEIS.

In summary, it is important that that overarching authority should be—here I go further than other noble Lords, perhaps—independent of all political and governmental influence. However, there is no doubt that the work, influence and devolution settlements need to be recognised and, as such, representatives from the devolved structures need to be on the overarching body for it to work and bring some sense to this organisation. I am happy to support Amendments 117, 118 and 119.

[Lord Purvis of Tweed (LD)]

My Lords, this is a characteristically interesting and deep group, and it is a pleasure to follow the noble Baroness. Having listened to and thought through all the contributions, I start by asking the Minister a question. Did the CMA respond to the Government’s consultation on their White Paper? If so, will the Government publish that response? Over the years, the CMA, as an independent body, has responded to many consultations on government proposals. What was its response to this? We know, as the Minister has indicated in answers to previous groups, that the Bill was, to put it most kindly, drafted within a constrained period; others may say that it was rushed. It seems there are concerns that the Government have found the CMA to be the appropriate body for a function to identify problems which the Government themselves have not indicated exist yet. It is all to do with future problems.

I will start by reflecting on the very good point made by the noble Baroness, Lady Noakes, who is frequently wrong in these debates. Her points are excellent, but when she shows the working of her arguments, we often come to a different conclusion. I have struggled to find a recent example of a UK body, operating on UK reserved matters, which has a direct role on devolved Administrations and Parliaments for areas within their competencies. Maybe the Minister can indicate where that has been the case. If that is not common practice, then we are in new territory. The closest that I can think of would be the operation of certain UK regulators that, by virtue of the decisions they can make within the reserved functions, could have an impact on devolved ones. We addressed that in the Scotland Act 2016, under which there are, for example, new requirements, which did not exist previously, for Ofgem and Ofcom to lay their reports to the Scottish Parliament. Interestingly, both Ofgem and Ofcom have a statutory duty under that Act to appear before a Scottish Parliament committee. This is part of an advance recognition that the decisions that they can make in regulating a UK market will have an impact.

In response to the noble Baroness, the role that the Government seek for the CMA is now markedly different, because the CMA is not just a UK body operating under explicitly UK issues of competition and regulatory functions. It will now report on non-UK-wide policy proposals made by the UK Parliament for England only, for Wales only or for Scotland only. That is a very different way for that body to operate; it was not the policy intent when it was formed in 2013. It is worth considering in detail, because it is a deviation from the policy intent in its parent legislation.

The CMA is also, fundamentally, about private enterprises in the market and the protection of consumer interests, but it will now have new responsibilities to report directly on decisions made by one Parliament, within its legislative competencies, which do not have private enterprise relationships or consumer interests at their heart. This goes back to the debate about what legitimate aims are. We are moving from a single market which had a wider scope of legitimate aims—environmental policies for example—to a more restrictive one. However, the decisions that will be made for England, Wales or Scotland alone will be within their existing devolved competencies or, indeed, their new ones. It goes far beyond what we have at the moment.