(4 weeks, 1 day ago)
Lords ChamberMy Lords, I support the Motion moved by the noble Baroness, Lady Hoey. The regulations referenced in this evening’s Motion do not deal with the imposition of the large swathes of EU law which impinge on Northern Ireland’s economy. The regulations before us are intended to expand the range of goods—namely, Thai and Chinese poultry, and cut flowers from the rest of the world—that are eligible to be supplied to Northern Ireland from Great Britain under the retail movement scheme. These regulations are not a solution to the long-term problems born of the protocol. In imposing on Great Britain EU standards that already apply to Northern Ireland, these regulations evidence a desire to use that fact to seek to undermine Brexit in the rest of the country.
It is a strange anomaly that although EU regulation 2023/1231 was made after the UK left the European Union, it relates only to the governance of the United Kingdom and not the European Union. The United Kingdom Government have not scrutinised this legislation and have no power to alter it. Is it really acceptable that laws which apply only in the United Kingdom should be made by a foreign entity of which we are not a part?
Far from removing the barriers to trade between Northern Ireland and the United Kingdom created by the protocol, the Windsor Framework has entrenched many of these and will impose heavy costs on Northern Ireland/Great Britain trade and damage living standards in Northern Ireland. I know that my time is brief, so I will consider just a few points.
It has been argued that the restrictions on state aid set out in the protocol have been significantly eased by the de minimis regulations introduced on 1 January 2024. Unfortunately, this is clearly not the case, since the United Kingdom Government’s capacity to provide financial support to Northern Ireland’s large businesses remains severely limited. This may have made it impossible for the last Government to provide the necessary funds to prevent the Harland & Wolff shipyard in Belfast going into administration. Can the Minister clarify the position regarding the future operation of the Belfast shipyard, in particular the building of naval ships?
The negative consequences of the United Kingdom fulfilling its commitment to extend the requirement for “not for EU” labelling to products consumed in Britain should not be overlooked. This will cause the isolation of the Northern Ireland market, since the increased cost of providing a small product line with different labelling for Northern Ireland will inevitably disincentivise many British traders from supplying goods to Northern Ireland. Can the Minister explain why the Government have reneged on their commitment to introduce this legislation throughout the United Kingdom?
I warmly welcome the arrival of the mutual enforcement Bill, which I see has now been propelled to Second Reading in another place. Unlike the regulations before us today, the Bill provides a sensible solution. It replaces the Irish Sea border—which violates the Belfast agreement in disfranchising the people of Northern Ireland—with mutual enforcement, which disfranchises no one and restores the territorial integrity of the United Kingdom without requiring border infrastructure on the Northern Ireland/Republic of Ireland border.
Finally, we were informed that the protocol would bring prosperity and untold opportunities for business. To date, I believe that there is very little evidence to show this. I support the Motion.
My Lords, this has been a characteristically impassioned debate and, with the notable exception of the very pertinent points made by the noble Baroness, Lady Foster, it has perhaps been rather less about the substance of the regulations before us and more about concerns of identity; but as the noble Lord, Lord Bew, said in his very thoughtful speech setting out the historical context, we are where we are. From these Benches, we welcome the Government stating that they are fully committed to implementing the Windsor Framework in good faith and protecting the UK’s internal market. If the noble Baroness, Lady Hoey, pushes her fatal Motion to a vote this evening, we will not be supporting her.
On the substance of these regulations, I can be extremely brief. These changes, which are fairly limited in scope, impact Scotland, Wales and England and are necessary, we believe, to make the Windsor Framework work in practice. It is welcome that the Government consulted with the devolved Administrations of Scotland and Wales and have received legislative consent from both. But, turning to some of the wider issues that these regulations raise following the change of government, this can be seen to be the beginning of a wider debate about our general approach to alignment with or divergence from the EU. We are going to have to debate whether we want divergence for divergence’s sake, which I would argue is the logical consequence of some of the speeches we have heard this evening, or whether we wish to align whenever possible with our European partners where it makes sense to do so. If we wish to align with EU legislative changes as they happen, this inevitably raises questions about the democratic deficit and being a rule taker.
As someone who was very much against leaving the European Union, I think it is worth recalling from time to time that prior to Brexit we had MEPs, a commissioner, Commission officials and Ministers who were all in a position to debate these issues in Brussels before, during and after the legislation was developed by the EU. Now we have to decide whether or not to follow these changes without having any say—but that was the decision taken in 2016. Ultimately, this is about managing divergence with our biggest market and keeping up with changes as they take place within the European Union. The business community, in particular, is keen to have clarity on this. Like the noble Baroness, Lady Ritchie, I would be very grateful if the Minister could say a little more about what discussions are taking place with the business community on the possible consequences of divergence.
Turning to the democratic deficit, it is welcome that the Liaison Committee of this House is considering establishing a Northern Ireland scrutiny committee. Such a committee could replace the very important work previously carried out by the Northern Ireland protocol committee. But it is also important that we continue to debate many of these issues as fully as possible, including in this Chamber. In that regard, it would be very useful to have a debate in government time on the future approach to the Windsor Framework as well as the wider government approach to EU trade. Can the Minister in her concluding remarks give a brief update on where we are with practical re-engagement with the EU? In particular, can she say a little more about where we are regarding agreements on SPS and on veterinary matters?