Product Regulation and Metrology Bill [HL] Debate

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Department: Home Office
Lord Sharpe of Epsom Portrait Lord Sharpe of Epsom (Con)
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My Lords, this Bill has a troubled history. It should not have been introduced to either House in its current form. It has now fallen foul of the Delegated Powers and Regulatory Reform Committee on three occasions and of the Constitution Committee on two occasions. We acknowledge the Government’s efforts to assuage the DPRRC’s concerns, and we thank the Minister for engaging so fulsomely and openly and driving through a number of government concessions. Those concessions are welcome, and we will support them, but, regrettably, they do not go far enough, in our view.

I speak today about the critical importance of having a purpose clause in the Bill, and its implications for the United Kingdom’s regulatory autonomy. In its current form, the Bill contains no explicit mention of respecting the UK’s regulatory autonomy, which is the foundation of a prosperous, independent economy. This absence is exactly why we need this purpose clause: to fill that gap and provide clear direction for the actions of the Secretary of State under the provisions of the Bill. After all, the reason we left the European Union was to regain the ability to make our own decisions, free from external control. Yet without this purpose clause, the Bill does not sufficiently safeguard the autonomy we have worked so hard to reclaim. This is precisely why we need this purpose clause. It explicitly addresses the need to protect and prioritise the UK’s regulatory autonomy in any actions taken under the Bill. It would establish a guiding principle that the Government must always act in a way that protects the UK’s sovereignty in regulating products and metrology, free from undue influence by foreign laws or regulations.

By explicitly requiring the Secretary of State to ensure that regulations are of the highest quality, this proposed new clause would push the Government to focus on creating a regulatory environment that stimulates rather than stifles business, and extend a clear message that the UK’s regulatory framework should encourage technological development, support start-ups, protect consumers and ultimately contribute to economic growth. We live in a highly competitive global market, where businesses need certainty and the freedom to operate according to clear and fair rules. A regulatory framework that ties the UK’s hands by aligning with foreign laws could create significant barriers to growth and innovation.

I appreciate that this preamble is lengthy in the context of an amendment on Report, but the proposed addition of this purpose clause makes sense only with some of that historical context. These arguments will inform many of our other amendments, so noble Lords will be relieved that they will not need to listen to them again too often.

If the Government are determined to force through this unfinished skeletal legislation in the teeth of perfectly reasonable objections from the committees of this House, and, indeed, from their own Attorney-General, the least we can do is give the Bill an overarching purpose: to improve the regulation of products and metrology, while prioritising the United Kingdom’s regulatory autonomy. If the Government are serious in their stated growth intentions—earlier today, the noble Baroness, Lady Anderson of Stoke-on-Trent, said, “We will always act in the national interest to secure what is best for Britain, British businesses and citizens”—surely they will find nothing to object to in either of those aims and will therefore accept this amendment. I beg to move.

Lord Deben Portrait Lord Deben (Con)
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I apologise to the House for not being able to be present at many of the earlier debates, but I have come specifically to hear the explanation of this amendment, and I have to say that I am not convinced. The purpose of regulation is, of its nature, to do the best for growth and for business, and if it is best for growth and business to have a regulation that aligns us with somebody else then that must be sensible. There is no reason to say that the priority is not to be aligned. Indeed, I rather think the opposite: the priority is probably, in most cases, to be aligned.

To tie the arms of a future Government on the basis that somehow or other we are living not in the world that we now live in but in some mysterious world that people would like to live in seems wholly unacceptable, and I must say that I am sad that the Government have been opposed on this basis. It runs through all these out-of-date amendments, all of which seek to reassess and restate the disastrous policy of leaving the European Union, which we all know to be a huge success—everyone, throughout the country, knows how very good it has been, so let us make it even better by making it even more difficult to try to come to terms with the world in which we now live. I very much hope that the House will not agree to this amendment.

Lord Lansley Portrait Lord Lansley (Con)
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My Lords, I did not intend to support my noble friend on the Front Bench, but I am moved to do so by the speech from my other noble friend. I say to my noble friend Lord Deben that there is a later amendment, which we may or may not pursue, the purpose of which is to make it clear that, when making regulations, Ministers should have regard to the likelihood of the United Kingdom being an attractive place in which to manufacture or supply products. I am sure he agrees that is right.

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Lord Pannick Portrait Lord Pannick (CB)
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My Lords, I recognise and value the constitutional principle that the noble Lord, Lord Hunt, eloquently draws to our attention. Ministers should not be given broad delegated powers, but constitutional principles are not absolute; they have to recognise practical reality.

In the context of this Bill, the practical reality is that technical regulations of the breadth and complexity that will be produced cannot sensibly be enacted by primary legislation. We are dealing, in Clause 1(1), with regulations that reduce or mitigate risks presented by products; to ensure that products “operate efficiently and effectively”; and that ensure that products designed for weighing or measuring operate effectively. Are we really to debate each and every such regulation in this House, either on the Floor of the House or in Grand Committee? We would have little, if any, time for anything else.

If the regulations raise issues of principle, Parliament retains control. Parliament does not have to accept the regulations; it can vote against them under the normal principles. The noble Lord, Lord Hunt, suggested, quoting someone from one of the committees—I cannot remember which—that this is Government by diktat. I suggest to him, with the greatest of respect, that that is unfair and inappropriate in this context, for the reasons I have given.

Lord Deben Portrait Lord Deben (Con)
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My Lords, I make it clear that, having disagreed with Amendment 1, I agree with the noble Lord, Lord Hunt, in his discussion here. I fundamentally disagree with the words of the noble Lord, Lord Pannick, because this is exactly the moment when we give away basic parliamentary control. We know perfectly well that, although it is better than it was, it is still true that a great deal can be done by ministerial diktat which ought to come to Parliament.

I am not in any way suggesting that everything should come to Parliament. Of course, it is very easy to say, “You can’t have everything”, but that does not mean that we should allow this to go through without insisting on having a much clearer definition of where ministerial diktat is proper and where it is not. Until we get that right, this is, if I may dare say so to the noble Lord, Lord Pannick, the slippery slope.

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Therefore, I cannot support my noble friend, because I worry that his amendment will not just unilaterally disarm our conformity assessment provisions with the European Union; it will it unilaterally disarm our conformity assessment processes with a wide range of potential countries. That is not the path that we should go down. In this legislation, we should try to stick, for now, to the principles that we will seek to adhere to international standards, we will build the UK conformity assessment regime, and we will negotiate to secure mutual recognition with other countries on that basis.
Lord Deben Portrait Lord Deben (Con)
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My Lords, I very much support the comments that have just been made. My concern is that we should live in the world that actually exists, rather than some mythical world that we might like to exist.

Some of the comments made by my noble friend Lord Frost seem intent on trying to make it impossible for people to organise themselves in the world in which we live, because of the particular view that he takes about the rest of Europe. I do not want that to be the view that we should have. We should have a fundamental view: first, that our regulation should be in accordance with the science—which is why I very much agree with my noble friend Lord Lansley—and, secondly, that we should take into account where our major markets are and where it is important that we have common standards, if they are possible. We should not be hidebound by some past view.

It happens to be true that the world in which we live includes the fact that the rest of Europe is pretty close to us, and we will therefore find that it is probably true that the area where we will most need to have common views will be there. I say that not to try to reverse the decision made by Britain but to face the facts of geography and trade.

In my business life, I advise a very large number of big and small businesses. We do not discuss whether we were in favour of our leaving the European Union; we discuss how we should run the business and make it work today. One thing that we all agree on is that the present system does not work very well. We can leave the past aside, but if we are to make it work in the future, we must give the Government the opportunity to align where alignment seems sensible in the context of the science. We will have to accept, by the nature of life, that much of that alignment may be with the countries with which we do most of our business and with which we will continue to do so.

We must not insert into the Bill matters that are not about it, but about reasserting a particular view of the way the world ought to work. We in this House should be prepared to accept that we are where we are, and that our job is to make life easier for the businesses we want to grow and to be able to work with other countries in our continent as well as beyond. Sometimes it will be more sensible to be aligned in a much wider sense. Much of the time it will not be, but that will be for the particular issue, the particular moment and the particular decision. We should not make it more difficult here to make the best decision on every occasion.

Lord Browne of Ladyton Portrait Lord Browne of Ladyton (Lab)
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My Lords, I rise to speak to Amendment 13, in the name of the noble Lords, Lord Russell of Liverpool, Lord Kirkhope of Harrogate and Lord Fox. It is a pleasure to follow the noble Lord, Lord Deben, whose common sense I often agree with. I am happy to echo his request that we treat and judge these amendments in the world we live in, rather than the world we would like to live in.

My name was attached to a predecessor of this amendment when the Bill came before your Lordships’ Committee. Its absence at this stage does not reflect any diminution of my belief that its provisions would both enhance the effectiveness of this legislation and strengthen Parliament’s scrutinising role. The fact is, I just left it too late to add my name.

The moving spirit behind this amendment is a desire for the greatest possible transparency and, leading from that, the greatest role possible for your Lordships’ House and the other place in examining regulatory decisions and subjecting them to scrutiny. The coverage surrounding this legislation has frequently described it as an enabling Bill, but I see this amendment as one that enables Parliament to have access to the thinking of relevant Ministers when they choose to align with or diverge from EU or other law. These decisions should and will be made according to a calculus of national self-interest, rather than—as I suspect some on the Opposition Benches are determined to believe—a desire unthinkingly to ape EU regulations, whether such alignment is in the interest of British business and industry or not.

In that respect, this amendment is rather more narrowly drawn than its predecessor, to which I put my name. It does not represent dynamic alignment but offers a greater measure of regulatory certainty for business, while ensuring that decisions that prove not to be in our interest are regularly reviewed. As I have said, I am aware of the fears of some on the Opposition Benches, and the suggestion that the Bill encompasses the extinction of British regulatory independence. I do not agree with them but suggest that if this is indeed their belief, the greater transparency and reviewing requirements of this amendment should offer a vehicle for more effective scrutiny.

This amendment has been drafted carefully and is consonant with the aims of the Bill as a whole. It does not suggest or conform to any preconceived determination that alignment with EU standards is inherently desirable. As we have heard, it simply imposes on Ministers a duty to report to Parliament when a decision has been made against or in favour of regulatory alignment. In a further departure from this amendment’s predecessor, the yardstick against which that decision has been taken will be a simple one: whether the decision is to the benefit of British businesses.

Recent weeks have made it abundantly clear that we now live in a more transactional world. Although I might regret that fact, I recognise it and accept that this is the world that we live in, as the noble Lord, Lord Deben, would say. Even judged by that metric, this amendment’s value is clear. Its starting point is what is good for our national economy and businesses; it ensures that Parliament is to be apprised of the basis on which Ministers make their regulatory determinations; and it ensures that if these have proved mistaken, they can be scrutinised and, where necessary, reversed. For those reasons, it should be part of the Bill. Whether through proceedings in your Lordships’ House or the other place—which, I am sure, will have an opportunity to consider it—I hope that this amendment, or something very like it, will make its way on to the statute book.