Northern Ireland Protocol: Implementation Proposals

Debate between Hilary Benn and Robin Walker

Wednesday 18th November 2020 Commons Chamber

[Mr Walker]

Yes.

[Hilary Benn (Leeds Central) (Lab)]

This morning, the Committee on the Future Relationship with the European Union took evidence from the Ulster Farmers’ Union, the Northern Ireland Retail Consortium and Manufacturing NI. Their message was clear: Northern Ireland businesses and the supply chain will not be ready for 1 January, because they do not know what to plan for, they do not know what goods will be identified as being at risk, and they are not confident that customs facilities, checks and software will be ready in time. As the Minister knows, the Department of Agriculture, Environment and Rural Affairs itself says that it will not be possible to complete the necessary work by 1 January. Given the length of time the Government have had to prepare for the bits they do control, how on earth has it come to this?

[Mr Walker]

I recognise the meticulous and detailed work that the right hon. Gentleman does on his Select Committee, and the importance of all those stakeholders he has mentioned. We do want to provide the certainty and the structure, and I have already given an update in my statement on IT systems and some of the support we are providing through the trader support service. However, he will recognise that some of these issues are not yet resolved due to ongoing negotiations with the EU, and I am sure he would join me and the First Minister and Deputy First Minister of Northern Ireland in urging them to work with us to resolve those in a pragmatic manner.

United Kingdom Internal Market Bill

Debate between Hilary Benn and Robin Walker

Monday 21st September 2020 Commons Chamber

[Mr Walker]

My right hon. Friend is of course right about that, and we still hope to strike a free trade agreement with the EU. I also point out that these issues can and should be resolved through the Joint Committee—I will come back to that.

Both the UK and the EU signed up to the protocol on the basis I just outlined. We are committed to implementing the protocol and we have been working hard to ensure that it is done in a way that delivers the promises that have been made. That includes working with the EU to reach agreement through the Joint Committee process in a number of areas that the protocol left unresolved, and we very much hope that agreement can be reached shortly. But if it is not, the harmful legal defaults contained in some interpretations of the protocol, which were never intended to be used, would be activated. The consequences for Northern Ireland in that scenario would be very damaging. We cannot and will not run that risk.

The provisions we are considering today will therefore ensure that in any scenario, we will protect Northern Ireland’s place in the United Kingdom; ensure that businesses based in Northern Ireland have unfettered access to the rest of the United Kingdom; and ensure that there is no legal confusion or ambiguity in UK law about the interpretation of the state aid elements of the Northern Ireland protocol.

[Hilary Benn (Leeds Central) (Lab)]

Will the Minister give way?

[Mr Walker]

I will give way to the right hon. Gentleman in a moment, because I do intend to refer to some of his comments in my speech, and I will happily take his intervention shortly.

Further measures will be set out in the Finance Bill. These will have the same effect as those already proposed in the UKIM Bill, and will make it clear that no tariffs will be payable on goods moving from Great Britain to Northern Ireland unless those goods are destined for the EU market, or there is a genuine and substantial risk of them ending up there. We will take the necessary powers in the Finance Bill to ensure that this is defined in a reasonable and proportionate way, which ensures that legitimate traders are not penalised, while also resolving the outstanding issues relating to the payment of VAT and excise duty. So we are taking limited and reasonable steps through the legislation to create a legal safety net by taking powers in reserve, whereby Ministers can guarantee the integrity of our United Kingdom and ensure that the Government are always able to deliver on their commitments to the people of Northern Ireland in line with the three-stranded approach of the Belfast/Good Friday agreement.

[Mr Walker]

I will come in detail to the amendment tabled by the hon. Gentleman’s party later in my speech, but I do recognise that when it comes to state aid, we have made specific agreements under the protocol on goods traded between Northern Ireland and the EU, and we should stick to those in order to ensure the effective functioning of trade north, south, east and west. We are taking steps in the Bill to clarify the state aid elements, and some of those will be to the benefit of businesses in Northern Ireland. I will come back to that point in more detail.

[Hilary Benn]

Will the Minister give way?

[Mr Walker]

If I may, I will come to the right hon. Gentleman’s point very shortly, and then I will happily give way to him.

We would not take these steps lightly. We hope it will never be necessary to use these powers, and we would do so only if, in our view, the EU was engaged in a material breach of its duties of good faith or other obligations. We would, of course, always activate appropriate formal dispute resolution mechanisms with the aim of finding a solution through this route in parallel to any domestic legislation. I draw the Committee’s attention to the statement that the Government made on 17 September .

--- Later in debate ---

[Mr Walker]

The right hon. Gentleman makes a powerful point. That is why we are taking the powers in this Bill, and we would seek the consent of the House before those powers were exercised—it is to ensure that there is a legal default different from the one that he suggests. It is about taking these steps in parallel.

I want to recognise the significant concerns that many Members have raised, which is why we have agreed that a “break glass” provision should be included, requiring the House of Commons to give its approval before these measures are commenced. I will return to the detail of that shortly, but the Committee should be in no doubt that this Government will always seek to ensure that the Belfast/Good Friday agreement is protected and that the political and economic integrity of our United Kingdom is maintained. That is what the Government amendments in this group seek to achieve.

Clauses 11, 40 and 41 of the Bill give effect to the Government’s commitment to give unfettered access to Northern Ireland goods to the whole UK internal market, in line with the protocol. They will ensure that we protect the vast majority of the £8.1 billion of goods sales from Northern Ireland to Great Britain and guarantee Northern Ireland’s place in the UK’s internal market. That will provide vital legal certainty for businesses in Northern Ireland, whose largest market is the rest of the United Kingdom—56% of Northern Ireland’s goods trade is with Great Britain—and deliver on a promise that has been repeatedly made throughout the process of our exit from the European Union.

Clause 11 sets out that qualifying Northern Ireland goods will benefit from mutual recognition and are not discriminated against. It ensures that the mutual recognition principle will apply to all such goods that will also benefit from unfettered access under clause 40. Clause 40 ensures that, in implementing the protocol, authorities must have special regard to the fundamental need to maintain Northern Ireland’s integral place in the UK’s internal market and customs territory and to facilitate the free flow of goods between Northern Ireland and Great Britain. That, of course, applies to trade between Great Britain and Northern Ireland in both directions.

Clause 41 ensures that there will be no new checks, controls or administrative processes on goods moving from Northern Ireland to Great Britain. This clause is in keeping with what the Government have constantly said, including in our manifesto, and in line with our commitments to businesses in the “New Decade, New Approach” agreement.

Clauses 42, 43 and 45 set out the safety net that I have described. Clause 42 ensures that full unfettered access is guaranteed in any scenario by providing a power to disapply or modify the requirement for export declarations or other exit procedures when goods move from Northern Ireland to Great Britain. As the right hon. Member for Leeds Central (Hilary Benn) rightly said on Second Reading, there is no real justification for such declarations being needed to protect the EU’s single market or customs union. It is a wholly reasonable suggestion from the UK that this issue can and should be resolved through the Joint Committee, but if it is not—and this is perhaps where he and I disagree—there needs to be a safety net in place.

[Hilary Benn]

I am grateful to the Minister for giving way on that point. I want to press him on the safeguard measures that are provided in article 16 of the protocol and the extent to which they enable the Government to take action if they think the EU is being unreasonable. There is a one-month waiting period, but after that, the Government are able to take safeguard measures. Annex 7(5) goes on to say:

“The safeguard measures taken shall be the subject of consultations in the Joint Committee every 3 months”.

Could he clarify what would cause those safeguard measures to come to an end? Would it be a decision of the arbitration mechanism that the Government lost? Could it then go to the European Court of Justice? In other words, could he explain why what the Government negotiated to protect the country from bad faith action by the EU is insufficient? We have not had an answer to that question.

[Mr Walker]

We are talking about the question of legal default. The UK Government are responsible for their implementation of the protocol, and we want to ensure that we have the necessary powers in UK law to avoid those legal defaults. As I have said, we would initiate all necessary proceedings in international law, including those under the protocol, if necessary, at that stage. It is not a stage that any of us want to get to, and we still hope to resolve these issues through the Joint Committee.

European Union (Withdrawal Agreement) Bill

Debate between Hilary Benn and Robin Walker

Committee stage & Committee: 2nd sitting: House of Commons & Committee: 2nd sitting
Wednesday 8th January 2020 Commons Chamber

[Mr Walker]

The hon. Lady talks about assessments of future deals. The place in which to do that is not legislation that is focused on implementing the withdrawal agreement. I am afraid that it is simply not the case, as it was in the last Parliament, that the political arithmetic means that the Opposition can tie the Government up with all sorts of commitments and assessments. We need to ensure that we get the best deal for our economy, our health and our country, and it is right that we move forward by accepting the withdrawal agreement, legislating through the Bill and focusing on the next stage.

[Hilary Benn (Leeds Central) (Lab)]

As the Minister will be well aware, new clause 1 bears a marked resemblance to clause 31 in the previous version of the Bill. The Prime Minister said to the House on 22 October, talking about the now disappeared clause 31, that

“the intention is to allow the House to participate actively and fully in the building of the future partnership”—[Official Report, 22 October 2019; Vol. 666, c. 840.]

and the clause set out a whole process for doing that, so why was it a good idea to have that in the version of the Bill produced in October, but now it has apparently become completely unnecessary and terribly onerous for the Government?

[Mr Walker]

The answer to the right hon. Gentleman’s question is perhaps in some of the exchanges we had during that debate, when I was reaching out to him to suggest that he ought to support our orderly withdrawal from the European Union so that we could get on to the next phase of negotiations. Since then, we have had a general election that provides a clear mandate for this Government to take us forward, to deliver the withdrawal agreement, and to get into that next phase of negotiations. I think we need to focus on that.

We have are already engaged extensively with the devolved Administrations in our preparations for the negotiations, and we will of course continue to involve all parties, including those in Northern Ireland, as we begin those negotiations. Indeed, this speaks to the absolute necessity and the vital urgency of restoring a functioning Executive in Northern Ireland as soon as possible. The Government will support Parliament in scrutinising the negotiations. We have made a clear commitment in this Bill to Parliament’s scrutiny of the withdrawal agreement Joint Committee. To that end, clause 30 provides that when disputes arise, they must be reported to Parliament. Further, clause 34 states that only a Minister will be able to act as the UK’s co-chair of the withdrawal agreement Joint Committee, and clause 35 ensures that all decisions must be made by a Minister in person. That Minister will be accountable to Parliament. We therefore believe that new clause 47 should not be pressed.

The Government fully recognise the important role that devolved Administrations will play in ensuring that our independent trade policy delivers for the whole of the UK. It is the responsibility of the UK Government to negotiate on behalf of the United Kingdom, and it is vital that we retain appropriate flexibility to proceed with negotiations at pace. However, we have been clear that the devolved Administrations will remain closely involved. Therefore, there is no need to make provisions in statute when the Government are already working tirelessly to ensure that the views and perspectives of devolved Administrations are given full consideration in the United Kingdom’s trade policy. As such, I would urge hon. Members not to press new clause 64.