(1 year, 1 month ago)
Grand CommitteeMy Lords, this statutory instrument will provide United Kingdom authorities with powers in relation to postal packets—parcels—moving from Great Britain to Northern Ireland. It does nothing more or less than that. It does not itself put in place the wider Windsor Framework arrangements.
These powers are part of delivering what we promised for consumers and businesses in Northern Ireland. They are necessary to ensure that we can implement the Windsor Framework and remove the burdensome regime that the old Northern Ireland protocol would ultimately have required. I am aware of some misunderstanding about what the Windsor Framework requires in respect of parcel movements, so I will attempt to address that also in my opening remarks.
Had it been fully implemented, the Northern Ireland protocol would have required international customs processes for all parcel movements from Great Britain to Northern Ireland. On the new arrangements, it is worth dealing up front with some of the issues where there has perhaps been a misunderstanding about what will be required in future under the Windsor Framework. In short, I would like to provide some reassurances to noble Lords in that regard.
First, someone in Great Britain sending a parcel to their friends and family in Northern Ireland will not need to engage with any customs processes under the Windsor Framework. Nothing will change for those movements, compared with today. Similarly, Northern Ireland recipients of parcels sent by their friends and family in Great Britain will not need to engage with any customs processes. For example, a grandson in Liverpool sending a package to his grandmother in Belfast will not need to do anything new to send the package and his grandmother will not need to do anything new to receive it.
British businesses in Great Britain selling to Northern Ireland consumers will not need to complete customs declarations, international or otherwise, and Northern Ireland consumers buying from sellers in Great Britain, including via online shopping, will not need to engage with any customs processes. They will buy from the seller in Great Britain and receive their goods without doing anything new.
I emphasise that this means the Windsor Framework explicitly removes one of the most onerous requirements on goods being sold to Northern Ireland consumers and, of course, on goods being sent to friends and families. There will be no routine checks or controls applied to parcels, with interventions only on the basis of a risk-based, intelligence-led approach. This means that the overwhelming majority of parcels will not be subject to checks.
I turn to parcels sent from a business in Great Britain to a Northern Ireland business. These will be treated the same as equivalent freight movements: they can be moved through the new green lane where eligible when it is introduced from October 2024. As with freight movements, the green lane will ensure that eligible goods will no longer require international customs processes. They will instead require only the provision of routine commercial information. Movements via the red lane, including goods destined for the EU, will be subject to the customs processes required by the EU, as noble Lords would expect.
The Prime Minister negotiated the Windsor Framework to ensure that consumers and businesses in Northern Ireland—and, indeed, British businesses selling into Northern Ireland—could benefit by protecting internal trade within the UK. The Government need to ensure that the powers of HMRC and Border Force are sufficient to allow them to monitor the rules for movements of parcels and that, where certain requirements are in place, they can be enforced.
The Secondary Legislation Scrutiny Committee’s report suggested that we clarify the rationale for bringing the instrument into force on 31 August. There is a limited range of prohibited or restricted goods that the UK Government accept are required to comply with EU customs rules today—for example, certain drug precursor chemicals or products derived from or associated with endangered species covered by CITES. HMRC and Border Force cannot currently enforce these requirements, which is why this statutory instrument is needed now rather than in a year. The same powers will be used in respect of the new parcels arrangements that will come into force through the Windsor Framework arrangements for parcels from 30 September 2024. This is so that we are able to determine that parcels destined for the EU can be detected and ensure that they follow the requirements of the red lane.
The committee’s report also noted that arguments had been submitted to it that these regulations would contravene the principle of unfettered access within the UK by introducing a customs border. A submission by the Democratic Unionist Party argues that they would be contrary to the Good Friday agreement.
The Government recognise that there are a range of views on the Windsor Framework. Our view as the Government—as the Prime Minister and the Secretary of State for Northern Ireland have made clear—is that the arrangements support and protect the Good Friday or Belfast agreement in all its parts. They protect the integrity of the European Union’s single market and Northern Ireland’s place in the United Kingdom’s internal market. These regulations are discrete and relate solely to powers available to HMRC and Border Force. That said, I hope I have provided some reassurance about what the Windsor Framework does and does not require, and therefore what the powers granted by the regulations will be used to monitor and enforce.
The report also notes the absence of a public consultation. It is the Government’s view that a public consultation on an SI of such limited scope is unnecessary. The instrument implements requirements under the Windsor Framework that have been discussed extensively. The Treasury and HMRC continue to engage with a wide range of businesses and sectors, and indeed with fast parcel operators, on both this SI and the wider Windsor Framework.
In summary, the parcel arrangements set out under the Windsor Framework are a significant improvement when compared with the requirements under the old Northern Ireland protocol. But as well as comparing them with what the protocol would have required, it is vital to understand how little will change compared with the status quo for the vast majority of Northern Ireland parcel recipients and those in Great Britain sending goods to them. This statutory instrument is not a barrier but an enabler to the agreement that we have negotiated. I therefore beg to move.
My Lords, I thank the Minister for outlining the purposes of the regulations before us. As noble Lords probably know, just the other day this was a matter of some heated debate in a Delegated Legislation Committee in the other place, and was subject to a vote in that House yesterday evening. Some consternation was expressed in the other place about the manner in which the Government had removed Members from that committee and replaced them with those who would vote these regulations through, but that is a matter for another day and it can be followed by reading Hansard on those committee proceedings.
The Minister said probably the most significant thing at the very end of her speech: these regulations facilitate the Windsor Framework. A lot of the debate is about the benefits of the Windsor Framework compared with the protocol as originally agreed, but the regulations before us are not about implementing the Windsor Framework; they are purely about creating the border for parcels between Great Britain and Northern Ireland. After that, we come on to the Windsor Framework, which is all about the EU law in which it decided, after discussions, to reduce the requirements that would normally be in place to move parcels into the EU for Northern Ireland.
But that is not what is before this Committee. Before this Committee is purely the creation of the parcels border. Whatever the EU then decides to do, whether by agreement or unilaterally, is facilitated by that border. It is our job as parliamentarians to examine the actual regulations before us, not necessarily today, although we can comment on them. The Windsor Framework proposals, which are in EU legislation, are separate, but I will reference them and no doubt they will be referenced by other speakers in this Committee.
The regulations treat Northern Ireland as if it is a foreign country for the purposes of moving parcels. They put in place another piece of the jigsaw of the Irish Sea border. They do not ameliorate or remove it; this is a new creation that is not here at present. Their effect is to separate Northern Ireland from the rest of the United Kingdom in the sense of placing it outside the same single market as Great Britain for postal purposes.
They amend the Postal Services Act 2000 and the Postal Packets (Revenue and Customs) Regulations 2011, so that movements from Great Britain to Northern Ireland cease to be unfettered within the same single market and become fettered by a customs barrier that effectively divides them into two single markets. As a consequence of the legislation before the Committee, postal packages destined for Northern Ireland from Great Britain have to be placed in the same group as packages destined for foreign countries. The definition of “export” is changed to include movements from Great Britain to Northern Ireland. Reference to the United Kingdom has to be removed so that the only references in play are Great Britain and Northern Ireland, with the UK single postal market terminated.
My Lords, the noble Lord, Lord Purvis, is correct to emphasise what the Secondary Legislation Scrutiny Committee observed about timing and the lack of consultation and impact assessment; of course, that is important, and I am sure that the Minister will want to respond to it fully. The reason it is so important is not just because it is our job to ask those questions, which we ask frequently; it is because, particularly in the matters before us today—as we heard, issues of Northern Ireland’s place within the union have been raised, as a consequence of the sense that this is being rushed or is not being done adequately—it is beholden on the Government to make an extra effort to make sure that this is done in a way that is beyond reproach, as far as Ministers are able.
These regulations implement part of the Windsor Framework, which we support. The Minister knows this, and we have been clear about it. We think it is a far better solution than that which was arrived at previously with the Northern Ireland protocol. It is also better than the approach that the Government sought to take with the protocol Bill, which we spent many weeks discussing earlier this year. Brexit brought us to this place. A solution needed to be found, and there was always going to be this kind of unsatisfactory compromise on Northern Ireland. This was raised before the vote took place. As we all know and have repeatedly said, Northern Ireland voted to remain and a solution needed to be found. I am afraid that this is probably the least worst option that we can land on at the moment.
Consumer-to-consumer parcels and business-to-consumer parcels will not be subject to regulations, and business-to-business goods intended to remain in the UK will use the green lane, while other goods will be subject to declarations and checks. We know that life will not be that simple and that there will be complications—in the real world, things will not always work as anticipated—and there will have to be some recognition of that as we go forward. The questions raised by the noble Lord, Lord Purvis, will have to be answered—if not today, then in the execution of this. That is life, and that is how we will have to approach this. But, having come to the point of securing an agreement, which was approved by the other place by 515 votes to 29, it is incumbent on the Government to make good on what they agreed.
My noble friend Lady Ritchie spoke of the opportunities for Northern Ireland from its unique position, and she asked important questions about the advice and support for businesses that will have to navigate these new arrangements. Is HMRC adequately prepared and resourced to make this work, and can the Minister explain how the green lane will be policed? The noble Lord, Lord Purvis, described the EU as a foreign power, which it is, but it has our consent and agreement. This is the arrangement that we have come to with our negotiating partners. There were other options: the Northern Ireland protocol was the one that was settled on by Boris Johnson and the noble Lord, Lord Frost. We all agreed that it was unsatisfactory —no one seemed particularly happy with that outcome—and here we have moved on to something that is an improvement.
I completely accept what our friends the noble Lords, Lord McCrea and Lord Dodds, had to say. I understand the challenge, but I find myself searching for an alternative viable solution. I know that one could have been that we all stayed in the customs union or the single market, but that is not the position of any of the main political parties and I believe it is not the position of the DUP. The noble Lord, Lord Dodds, may correct me if I am wrong about that—here he comes now.
I thank the noble Baroness for giving way. On alternatives, I refer her to the report by our Select Committee on the protocol, on which I have the honour to serve along with the noble Baroness, Lady Ritchie. In July last year, it said—I do not have the precise reference, but I can supply it—that, in relation to parcels, the solution was to continue as with the grace period, and that there should be no fettering of parcel deliveries between Great Britain and Northern Ireland. The cross-party Select Committee did suggest a very good solution—one that, unfortunately, the Government decided not to run with.
I read that report and I commend the noble Lord for bringing it to our attention, but we cannot arrive at a solution unilaterally, as the United Kingdom. Whatever solution we arrive at must be agreed with our negotiating partners. I was not part of that negotiation but, from what Ministers have indicated, it would seem they were not able, at this point, to settle on that with the European Union. We can regret that, but it is the reality of where we are. We are surely in the business of dealing with reality as we find it, not as we would wish it to be.
It really ought to be a priority for the Government to rebuild trust. I would urge far more candour and a franker approach when we discuss these issues, and not to do anything which would give the impression that we are somehow trying to steamroller these things through. Can the Minister explain exactly what a business would have to do to become part of the trusted trader scheme, so we are clear about exactly what we are asking businesses to do? We completely understand the dissatisfaction that some have with the framework but there is, at the moment, no other viable alternative solution.
I am not going to comment on the mismanagement of the Joint Committee on Statutory Instruments and the debate that took place in the other place. I read Hansard and found the way it was conducted extraordinary, but that is not for me to manage. This is clearly not business as usual; it is different and unique. There have always been differences, which were previously brought to the fore regarding animals and other things, but it is obvious that some contributors this afternoon feel there is somehow a threat to their constitutional position, and we cannot be relaxed about that. We have to recognise that and take it seriously. I disagree; I am British and if I moved to Belfast I would still be equally as British. I might have to fill in some forms if I wanted to receive goods from a business in GB to my business. I could live with that without a threat to my Britishness, but is it not for me to tell other noble Lords how they should feel about it, and they are quite right to bring those points to the attention of the Committee.
I could not agree more strongly with those who said that what we need is a frank and open discussion, and perhaps a change of tone and being a little more relaxed as a Government about all this. I know we have had some torrid debates on these issues in recent years and that the protocol was a disaster. Things have happened and things were said; promises were made, but they should not have been because they were broken knowingly and very quickly. We have damaged our international reputation as a good partner to negotiate with and I regret that very much but, with a change of attitude from the Government, and a more respectful approach to colleagues in Northern Ireland and to this House, we could move forward in a much more positive way.
I was going to come later to ongoing co-operation with businesses in Northern Ireland and Great Britain, in terms of implementing the provisions when it comes to parcels. For example, we are working through in detail with the couriers and the people who take a lot of this traffic on how we can make it as seamless as possible. If I have anything further to add in my speech, I will do so later.
In respect of the point from the noble Lord, Lord Dodds, on this statutory instrument being about creating a border between Great Britain and Northern Ireland, as I said just now and in my opening speech, this instrument does not put in place the Windsor Framework arrangements. The noble Lord is right that that has already happened, but we disagree that the Windsor Framework or these regulations separate Northern Ireland from Great Britain in the way that he describes. The regulations do not treat movements from Great Britain to Northern Ireland as exports or movements from one country to another; they make some powers that are available in respect of international movements available in respect of movements from GB to NI. However, it is not the case that they treat them the same as parcel movements that are international or exports.
As the noble Baroness, Lady Chapman, said, these arrangements are unique. The Windsor Framework is a bespoke set of arrangements. If you move a parcel internationally, such as to your grandmother in France rather than in Northern Ireland, you and she would need to make customs declarations and possibly pay tariffs; that is not the case for the arrangements for GB to NI. Similarly, if you buy from an international retailer, the package goes through customs when it enters the UK; as I set out, that is not the case for GB to NI orders from internet sellers to individuals.
Does the Minister accept, however, that the reason for what she has set out is in EU law, and that nobody in Northern Ireland is elected and nobody in the EU is accountable to anyone in Northern Ireland—indeed, in the United Kingdom—for those laws? If those laws change—for example, if the EU changes, tweaks or modifies them—that is what will apply. So the Minister cannot give any guarantee or assurance that the position she is outlining will continue to pertain and apply because no Government, nor this Parliament, will have any power in that respect.
The Windsor Framework is a bilateral agreement. To the noble Lord’s point, there are detailed governance arrangements around the Windsor Framework. Either side can raise issues through those mechanisms. It is not the case that the EU could just impose new requirements without consultation. Of course, the Stormont brake will be available to the Northern Ireland Assembly, when it is sitting.
With regards to the lack of an impact assessment, that point takes me back to what this statutory instrument itself does. It does not impose any requirements on businesses; it is solely about the powers for HMRC and Border Force. The Government are dealing with the resources available to those agencies in the normal way. I cannot remember who asked about this—it was the noble Baroness, Lady Ritchie of Downpatrick, I think—but we will of course ensure that resources are available, in particular to HMRC, to ensure that these agencies can engage with businesses in order to ensure that the process is as smooth as possible.
(5 years, 9 months ago)
Commons ChamberI am grateful to the right hon. and learned Gentleman for his characteristic courtesy in giving me advance notice of his intention to raise this point of order. He raises a very important matter, and I understand from the written ministerial statement that a document setting out “the Government’s legal position” will be published on Monday—described by the Prime Minister as a “full, reasoned position statement”.
I must be careful not to prejudge, but if the right hon. and learned Gentleman believes that he already knows enough to be sure that Ministers are not complying with the Humble Address, he is free to write to me, as early as he likes, to suggest that the House has seen, or is about to be subject to, a contempt and to seek precedence for a motion to deal with it. It will be for me to decide, and I will not linger, whether there is an arguable case that a contempt has been committed, and therefore whether an appropriate motion should be put urgently before the House.
Further to that point of order, Mr Speaker. I concur entirely with what has been said by the right hon. and learned Member for Holborn and St Pancras (Keir Starmer). The view he has expressed is, I think, felt widely across all parties in this House, and I really do hope that the motion that was passed will be delivered in full, because on the day of that debate we made it very clear where we stand, and we expect the Government to respond in full to the will of the House.
I thank the right hon. Gentleman for what he has said to me and to the House. To what he has said there is really nothing substantive that I need to add. All I would say to him is that, on the basis of what he has said, it is open to him also to write to me on this matter.
(5 years, 10 months ago)
Commons ChamberMy hon. Friend is absolutely right. There is be research and evidence in these areas from around the world, and we hope that it will feature in the consultation. We certainly need to learn from the approaches taken elsewhere.
I am grateful to the Minister for what he is saying and warmly welcome the announcement made by the Under-Secretary of State for Health and Social Care, the hon. Member for Winchester (Steve Brine), on Tuesday. It is a tremendous step forward. As for looking at what has happened across the world, well over 85 countries, including the United States, have mandatory fortification of flour, so there is an awful lot of evidence out there, and clearly it should be taken into account.
It certainly will. The right hon. Gentleman takes a keen in this area, and other countries such as the United States, as he mentioned, Canada and Australia have introduced mandatory fortification. We need to learn from all that, but we also need to understand the dietary habits of the United Kingdom. It is worth mentioning that no EU country currently has mandatory folic acid fortification, but he is right and we will certainly be learning from the experiences elsewhere.
I assure the House that Ministers have always taken the issue of pre and post-conception advice seriously, and the public consultation will allow us to fully explore the fortification of flour. This is the start of a detailed dialogue with the industry, the general public, relevant charities—I thank Shine, which has done so much campaigning in this area—and members of the scientific community. This Government will ensure that the decisions we take will come after the full consideration of all views. It is my pleasure to introduce this important debate, and I look forward to hearing the contributions and views of Members.
It is a pleasure to follow the hon. Member for Pontypridd (Owen Smith) in this debate because, as has been mentioned, he co-chairs the all-party group and has done a fantastic job in raising awareness of the issue in a relatively short time. It is not that long since the all-party group was set up, so this must be something of a record in getting the Government to move. I thank the Minister for what he has said and pay tribute to the hon. Member for Winchester (Steve Brine), who is the Minister responsible for public health, for what he said on Tuesday and for the speed with which he has moved on the issue. Many, many people have been involved in highlighting it over the years, and I join the tributes that have already been paid to people such as Lord Jeff Rooker, to the scientists who have been involved, to the charities in Scotland and to Shine, which operates in Northern Ireland and across the rest of the UK. They have done tremendous work in campaigning on the issue over many years, in addition to the work they are doing to help families who have someone with spina bifida or hydrocephalus in the family and who have lost someone who had these conditions.
This is a great debate and this measure is a great positive move. Clearly, we would wish that it had happened earlier, but we are delighted it has reached this stage now. I thank the Government for taking it forward now, because it is important that we move ahead and do not lose time, as too much time has been wasted. The approach adopted over many years by the Government has been of not wanting to go down the road of what is described by some people as “mass medication”. All sorts of genuine issues have been raised about the effects, but the science proves clearly and objectively that this is safe and will prevent thousands of people from being born with severe conditions—and that does not take into account the many tens of thousands of terminations that happen as a result of parents learning that their unborn baby may be affected severely by spina bifida or hydrocephalus.
The approach of Governments previously—to offer advice, education and information on supplementing diet with folic acid—has not worked. That is clear. Over the past 20 to 30 years, it has not made a difference, mainly because of some of the issues we have discussed: the fact that almost half of pregnancies are unplanned; a lot of people in certain demographics and age groups are simply less likely to know about this or come across the information that is out there; and these neural tube defects develop 14 to 28 days into pregnancy—once that has happened, it is too late to start taking folic acid supplements. I have no argument with the advice on taking folic acid in the early stages of pregnancy, but in the vast majority of cases it will be too late—these supplements need to be taken in advance of conception if they are going to make a difference; that is the reality of it. If we continue with the current policy, the problem is simply going to continue.
There is an alternative, it is safe and it has been proved to have worked in more than 85 countries, including Australia and the United States. The scientific consensus is enormous, and the hon. Member for Pontypridd read out the list of scientific bodies, clinicians and others who are all agreed about the need to proceed along this path. Therefore, I, too, join the call that this should not be a long, drawn out consultation, as ample evidence is already available on the issue. The consultation should be proceeded with as quickly as possible to ensure that this is introduced, and I make the plea that it should be introduced across the UK. We had a debate yesterday about Northern Ireland, and I do not want to get into all of that, but on this issue the Government have taken steps to introduce sensible, non-controversial measures where appropriate.
The hon. Member for Glasgow North (Patrick Grady) mentioned the high incidence in Scotland and we have a high incidence in Northern Ireland. He is absolutely right to make that point and I congratulate the Scottish Government on what they have done on the issue, but we cannot allow some kind of interregnum in Northern Ireland. This issue is important and I think that there would be absolute consensus across the board in Northern Ireland that any change should happen there alongside the rest of the United Kingdom.
The effects of these conditions on the children who are born with them are extreme. I have spoken previously about my own son, Andrew, who was born in 1990 with spina bifida and hydrocephalus, and about the severe impact that had on his life. As he grew older, there were more severe effects. Of course, that did not just affect him. He was a bright, cheerful boy and a lovely child. The lives of those who came into contact with him were enriched, and our lives were certainly enriched by having him. It had severe effects on him—he was hospitalised many times and had shunt operations and setbacks—and there was also an effect on the wider family. It affected the entire family circle. We had great family back-up and support, but in many cases people do not have that. This is a really massive issue, and that is where charities such as Shine and others come into play, providing such fantastic support, help and assistance.
If it can be prevented, why are we not taking the steps that need to be taken? Andrew had eight years of a wonderful life, in the sense that he was loved and gave out so much love, but the problems that he had and faced throughout that short life were very, very difficult for him and for the rest of his family. We would love to see children being born without having to have these conditions. They do not need to. We now have to move on with this issue. There is no good reason not to. Some abstract arguments may be advanced and some theoretical arguments made about liberty, mass medication and other things, but they have been clearly disproved—they are a total red herring. Folic acid fortification is something that can be done that is safe and that works. It will not prevent these conditions entirely—some children will still be born with them—but there will be a lot fewer, so we need to move forward.
I welcome what the Government have done. They have listened and responded. Let us now get on with it. I pay tribute to everyone who has been involved in the campaign and got it to this stage. The political agenda is dominated by certain subjects but, if nothing else happens, if we can get this done, it will be a great legacy for this Government and this Parliament.
(5 years, 10 months ago)
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Could I ask what the purpose of any such extension might be? Is it to replace the Irish backstop, or is it in addition to that?
At the moment, this is an idea that has been raised. In terms of the detail of it and where it fits within negotiations, clearly the Prime Minister will be best placed to answer. I say to the right hon. Gentleman that one of the enduring principles of our negotiations is to ensure that we treat the whole United Kingdom as a single united entity. That is an enduring principle that is guiding us through these negotiations.
(6 years, 1 month ago)
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My hon. Friend is right. I will come on to those Northern Ireland-specific issues, but first I will touch on the 2013 PricewaterhouseCoopers report. PwC uses—this will mean something to the Minister, and probably a lot to the officials sitting behind him, although it does not mean much to a layman like me—a computable general equilibrium model: exactly the same model that the Treasury uses when considering economic impacts. PwC updated its report in 2015, but the 2013 report was clear: scrap air passenger duty, and the Treasury will gain—not lose and claw back, but gain.
As a country we have gone from getting £343 million per year from air passenger duty in 1999, to £3.9 billion last year, with £4 billion estimated by 2021. When PwC updated its model in 2015, it said that there would be a direct boost to this country’s GDP of 0.5% in the first year, not a loss. How many times do we see newspaper headlines with every political decision that is having a detrimental impact on our GDP? Yet here is a simple and clear way that the Treasury could make a positive and progressive move that would lead to an increase in GDP in the very first year.
PwC said in 2015 that if we had done it that year, by 2020 we would have had 1.7% economic growth. That would have meant 61,000 additional jobs in this country, stimulation of our tourism and hospitality sectors, growth in business, 61,000 more families benefiting from a good income, 61,000 more families not otherwise relying on the state, and more revenue raised in tax than would be lost in abolition. If we can push one message, whether through the consultation, the call for evidence or the plethora of modelling and economic data that has been provided to the Treasury, it must be this: more tax revenue will be raised with the abolition of APD than its retention—an extra £570 million per year, had the decision been taken in 2015. That is not the £4 billion we are hoping to get, but £2 billion on top of that by 2020. That is a 50% increase, and were I a Treasury Minister I would jump at the chance.
Northern Ireland is, of course, close to our hearts. We have to look at the competitive disadvantage in Northern Ireland compared with our near neighbours in the Republic. Travelling from Belfast to Dublin airport is no different from travelling from Manchester to Birmingham. It is only 100 miles, so when someone is considering where to fly from and how much it will cost, the economic attractiveness of flying from Dublin is incredibly strong.
I do not put those figures forward to suggest that the UK tourism industry is in a bad place; it is not—we rank fifth out of 136 nations in travel competitiveness overall. However, on ticket price competitiveness, the Treasury report says we are 135th out of 136 countries. When someone is faced with the attractive economic proposition of travelling 100 miles down the road to Dublin, that is a barrier to growth in Northern Ireland, to additional connectivity, and to greater opportunity for leisure travel. It is frustrating and constraining the economic stimulus that we in Northern Ireland desperately need, and that our businesses crave.
In Northern Ireland we have had an 11% increase in travel, with 17% more air passengers going through our airports over the last five years. That sounds good, as the UK average is 22%, but what are Dublin’s figures? In 2014, the Republic of Ireland scrapped air passenger duty. From 2014 to 2018, the number of air passengers going through Dublin’s airports rose by 47%. That is an additional 9 million travellers, 1.2 million of whom come from Northern Ireland. That starkly illustrates what we are attempting to highlight. On average, 25% of the cost of a one-way short-haul ticket in this country is air passenger duty. It is not small beer; it is a considerable consideration for anyone seeking to travel.
The Northern Ireland Affairs Committee, which I served on during the time of the inquiry, has considered both the reduction and the abolition of air passenger duty, as well as a reduction in VAT. The debate does not focus on VAT but on air passenger duty. However, in our view the two are intertwined, and the Northern Ireland Affairs Committee agreed. The Republic of Ireland cut its VAT rate for tourism and hospitality, bringing it down to 9%. That means, again, that that industry has a competitive advantage. If somebody goes to visit the island of Ireland they will see our hospitality figures, hotel rates and so on with a significant uplift.
When the Republic of Ireland cut its hospitality and tourism VAT, there was a significant benefit to the economy again. For every percentage point dropped—and the rate went down to 9%—there was an increase of 1.7% in employment. That directly led to 4,800 new jobs in the Irish Republic, because it had the courage to cut the VAT associated with hospitality and tourism. The Northern Ireland Hotels Federation and Hospitality Ulster are clear that the economic benefit and growth created in the Northern Ireland economy through that simple reduction could result in 1,100 jobs.
I understand that we have two tax rates for VAT in this country—20% and 5%. We are constrained to those two at the moment, and even if we were not, we might not choose to have three, four or five because of the increase in burden. However, the Northern Ireland Affairs Committee was quite clear that the disparity makes a distinct difference when Tourism Ireland, which is charged with promoting tourism on the island of Ireland under the Good Friday agreement, is promoting Northern Ireland, as opposed to the Republic of Ireland.
I hope that the Minister will not only outline a timetable for considering the Treasury’s call for evidence, but show an earnest desire to take, once thoughtful consideration has been given to the mounting evidence that has been compiled over years, reasonable, beneficial, appropriate steps to stimulate the aviation sector across the United Kingdom, tourism and economic growth in Northern Ireland. I hope that we look at not only the specific calls of the Northern Ireland Affairs Committee on the abolition of APD and the reduction of tourism VAT, but other models as well.
One such model could be a route development fund. We could charge no APD for a three-year window. That would be a good way to test whether or not it is an economic barrier or detriment. There would be no loss to the Treasury on any new route, because it would just not charge for such a route. A route development fund would encourage growth and stimulate the sector to get business destinations, which we crave in Northern Ireland, such as Frankfurt in Germany, France or even transatlantic flights to the United States. We could give a route development fund three years to see whether it makes sense, and whether air passenger duty has been a significant barrier. Allow a route to develop without the threat of air passenger duty, allow it to stabilise and grow, and we believe that fruit would be borne through that sensible policy.
I am grateful to my hon. Friend for securing this important debate. It is a timely opportunity to remind everyone of the important work that is under way in relation to the consultation on APD and VAT in Northern Ireland, which he referred to. He talked about the general issues, but there are two crucial issues that will result in a change for Northern Ireland: first, we are in competition with Dublin airport; and, secondly, Northern Ireland is cut off from the rest of the United Kingdom by the Irish sea, and therefore we are much more dependent on air links. When the Treasury looks at APD, it must conclude that, to make Northern Ireland competitive and to sustain our economy, it must take action to deal with those two issues.
My right hon. Friend is absolutely right about the competition and the constraints put upon us as a region. I could not have put it better. We are set aside by the Irish sea, and we rely on air connectivity. We do not have the choice to search around for off-peak train travel, or to easily jump on a boat, only to find that the bus is not at Stranraer waiting for us. When we look at stimulating our economic growth, we have to recognise that we are at a distinct disadvantage because of the Irish border and the tax duty regime in the Republic of Ireland.
I know that other hon. Members will mention the other devolved regions, which have committed to remove air passenger duty. Whenever a devolved Administration gets into such a discussion with the Treasury, it will ask for the cost to be covered by the block grant. It has had such conversations with Northern Ireland and with the Scottish Government. If there is further devolution, it may have such conversations with the north of England.
The whole thrust of that approach is predicated on loss and on the Treasury not having something it otherwise would have had. If it is successful, Scotland, Northern Ireland or the north-east of England are not allowed to reap the rewards; they go back to the Treasury. We need confidence and optimism in this process. Evidence from across the United Kingdom shows that there are benefits. The Government must recognise our unique challenges and those of other parts of the United Kingdom.
I look forward to hearing what the Minister has to say. I have a Valentine’s poem for him. It was written by Pubs of Ulster—the predecessor to Hospitality Ulster—to one George Osborne in February 2015. I hope it adds a bit of levity to a debate that can be turgid when we get down into the figures. I think pragmatists can see what the answer is.
“Labour is red
Tories are blue
Here’s something important
That you need to do
Our VAT rate is crippling
Our ability to grow
It’s putting off tourists
To other countries they go
Please cut the VAT rate
And help us create
A competitive market
For our beds and our plates
As you know my dear Chancellor
You’re close to our hearts
But elections are looming
And you may depart
So as your last action
Before the big day
Please cut the VAT rate
And you may get to stay!”
That is a little bit of fun, but it lays out the Northern Ireland tourism and hospitality industry’s calls about VAT.
Air passenger duty is clearly a barrier to growth. I trust that the Minister will thoughtfully consider all the calls for evidence. We look forward to hearing a suitable response today and in the weeks to come. I hope that, come the autumn statement, we will be in a position to make some sensible and serious proposals.
My hon. Friend always brings intelligent thought to his interventions. I confess that Dublin gives me easy access to the States every year. It is the airport that my family and I use whenever we go on holiday. One of the reasons why we do that is the customs connection. We do our customs clearance in Dublin, and when we get to the far side, we get off the plane, get our baggage, and we are away. With great respect, if we go from Heathrow to New York, we spend an hour in the long customs clearance line.
My hon. Friend points to an important factor, but it has been proved that the single biggest factor that causes people to travel through Dublin airport is price. One fifth of all visitors to Northern Ireland use Dublin airport. The trouble is that many people who arrive at Dublin airport from the States and elsewhere do not, unfortunately, leave the greater Dublin vicinity or southern Ireland. They do not come north; that is the reality. Price is the crucial point. My hon. Friend refers to another important aspect, but air passenger duty means that he and many of my constituents are being directed—almost shown the road—to Dublin airport.
My right hon. Friend clearly states the real issue, which is price. He is absolutely right. I was just saying that one of the other advantages is customs clearance, which probably suits many, but the thing that puts people there first is price. Customs clearance is an incentive but an extra which makes things a wee bit easier. My right hon. Friend is also right about Tourism Ireland needing to ask how better to connect passengers who come into Dublin airport so that they do not stay in Dublin but go north. To be fair, Tourism Ireland does things well when I go every year to the Milwaukee Irish Fest in Wisconsin, but we can and should be doing a lot more. My right hon. Friend is absolutely right about that. First and foremost, people are attracted by price. That can be applied to many facets of life, such as shopping trends or changing shopping practices.
According to a report published by Airports Council International, this year the UK was the only European nation to see a decline in its direct connectivity. That is worrying. If that is happening and a trend shows that, we need to do something positive and constructive about it right away. The reason for our focus on APD is that we believe in Northern Ireland’s ability to compete with the rest of the UK, and any area, to attract and secure global business. Belfast has clearly become the cyber-security capital of the UK and has the potential to do even more than it has so far. Why is that? Look at the reasons to learn how important it is for us to have the APD issue addressed, which would be of advantage to other parts of the UK as well.
In Belfast and other cities in Northern Ireland, global tech names such as Citi or Allstate work in the sector with silicon valley firms such as BDNA, and they are all recognisable. Not only does our highly skilled workforce attract global investment, but our indigenous tech firms such as Kainos, Novosco and First Derivatives grow in size and are becoming global leaders, all in a region of Northern Ireland. We must pay tribute to the Department of Enterprise, Trade and Investment and to the Ministers—when the Assembly was working—for their hard work, which is still delivering today, even though the Assembly is not functioning as it once was—the seeds were sown and the dividends are being paid.
Much of our attraction is the skills base, supported by international-standard research facilities, with education and big business working together. We have the education, the big business, the opportunities, the quality of graduates and all those things together—Northern Ireland again leading the way for the UK to follow. That is how things happen and benefits are achieved.
Northern Ireland is consistently the top-performing region of the UK in national exams at age 16 to 18. The fact is that we have the graduates, and that encourages the investment, which is perhaps why we have done so well. Digital firms want to invest because the skills base is there in Northern Ireland, and still available, because we continue to produce graduates to build above and beyond where we are. We have the highest percentage of qualified IT professionals in the UK and Ireland, with more than 77% holding a degree-level qualification.
I say with respect to the Minister and all other regions, Northern Ireland is leading the way. From a small base of 1.8 million people—although the latest stats tell us we are nearly at 1.9 million—we are up there with London and other parts of the United Kingdom. Post Brexit, therefore, we are in a position to do great good for the United Kingdom of Great Britain and Northern Ireland. This is an opportunity that we should be taking advantage of. Some 77% of post-A-level high school graduates in Northern Ireland go on to further and higher education, compared with the UK average of 71%. Again, Northern Ireland is leading the way.
All such things make it attractive to come to Northern Ireland. Furthermore, labour and property costs for a 200-person software development centre in Belfast are 36% less than in Dublin, 44% less than in London and 58% less than in New York. We can see the benefits of coming to Belfast and Northern Ireland. Improved connectivity, which is central to this debate, will only enhance our global potential. How can we build on our base and our level of delivery in Northern Ireland and across the whole of the United Kingdom? The motion seeks to highlight the importance of the ability to hop on a plane and get anywhere in the world quickly—the need for competitive APD, to allow us to show the world that we are only a short, cost-effective flight away.
Only aviation can connect the United Kingdom with existing and emerging markets vital to our post-Brexit future, producing and maintaining thousands of jobs, and indeed the thousands more jobs to come. At the moment we have a competitive disadvantage that we cannot afford: we pay more than double the aviation tax of our nearest European trading rival, Germany. The tax on trade hits UK businesses as they seek to expand international trade essential to our post-Brexit future. It acts as a brake on airlines’ developing new routes to the very markets that UK businesses need to reach.
If the Government want to signal that Britain is truly open for business as Brexit approaches, what better way could there be than to cut this tax on trade by at least 50%, to bring us in line and give us an advantage? The high rate of APD is a brake on expanding links with the world, meaning that the United Kingdom of Great Britain and Northern Ireland loses out on connectivity opportunities, and it is one of the main reasons why Germany is better connected to South Korea, Japan, China and Brazil than the UK. It should be the other way around and we should be doing something to address that.
(6 years, 6 months ago)
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The A77 Euro route to the north of Cairnryan runs through my hon. Friend’s constituency. I both agree and disagree with him: I completely agree that those roads need a lot more money spent on them, but I disagree that they are getting busier. Part of the problem is that they are not getting busier because, as I will come on to in my speech, we are losing hauliers’ business down to Dublin and across to Holyhead and other ports.
Going back to my point about frustration for convoys and drivers, being stuck behind a fleet of lorries on the A75 is not a pleasant experience. The A75 is predominantly a single carriageway road with very limited overtaking opportunities. Poor roads to and from the ports are putting them at an extreme disadvantage and in turn threatening jobs and livelihoods that depend on those ports. Last November, I met representatives from Stena Line, which has invested over £100 million to provide Scotland with a first-class new port facility at Cairnryan. P&O has also invested a lot in its terminal and in its vessels. The investment those companies have made has not been matched with vital road and rail development to help the ports remain attractive and competitive. Frankly, if such private investment is not supported, that is a disincentive for future investment.
The message could not be clearer. If we continue on the current trajectory of neglecting the A75, the consequences could be grave. The warning signs are already in place. Unfortunately for us, while we continue to talk among ourselves about the need to act, Northern Ireland has stepped up a gear and ensured that its road connections are keeping pace with economic development. That has resulted in a growing number of Northern Irish hauliers diverting their traffic flows to sail from Dublin; in all honesty, who can blame them?
Other UK ports, such as Heysham, Holyhead and Liverpool, are gearing up for the future and the increasing traffic flows of freight and tourism resulting from investment in the surrounding roads, whereas Cairnryan is in clear danger of being left behind. An easy, quick win would be for the Scottish Government to increase the speed for vehicles over 7.5 tonnes on the A75. At the moment they are restricted to 40 mph, but that could be lifted to 50 mph, which in turn would shorten the travel times that hauliers have to face.
However, it is not only ferry companies, visitors and hauliers on whom the condition of the A75 is having an effect. Local people in my constituency who travel the road on a regular basis are just as, if not more, frustrated. I commend the efforts of those involved with campaigning to improve the roads. Both Dual the A75 and the A77 Action Group, which is in the constituency of my hon. Friend the Member for Ayr, Carrick and Cumnock (Bill Grant), have been active campaigners on the issue and have argued their case strongly at every opportunity.
It would be remiss of me not to recognise that there have been some improvements to the A75 in recent years, and they are welcome, but they have not gone far enough and they are just a sticking-plaster solution to a much wider problem. Since 2007, more money has been spent on maintenance issues than on capital investment.
I am pleased that the Scottish Government have commissioned a study to look at the rationale for improving road, rail, public transport and active travel on key strategic corridors in Scotland, including the A75. I look forward to the initial findings of that study being published later this year, and I understand that the outcomes will be fed into a second strategic transport projects review. The Scottish Government have said they recognise the importance of the A75 to the strategic transport network, to the economy of south-west Scotland and to the rest of the country, and I hope they come up with the money to demonstrate it, starting with bypasses for Springholm and Crocketford. Those two villages have been making the case to be bypassed for years, and they are in desperate need of it.
As seems de rigueur in this place at the moment, Mr Betts, I am going to bring the debate on to the subject of Brexit—but, you will be relieved to hear, only briefly. As preparations continue for Britain to leave the European Union, it is important that our economy is firing on all cylinders and ready to embrace the opportunities and rise to the challenges that we will face. It is more important than ever that our road network is able to cope with the demands of a post-Brexit economy, and that means investing in every region of our country. In Dumfries and Galloway, I want an A75 that is not only fit for the future, but one that makes the port of Cairnryan the most attractive port for the transport of goods to and from Northern Ireland, a vital partner in trade and tourism.
I apologise for my late arrival due to the fact that I was at another meeting. I congratulate the hon. Gentleman on securing this debate and on his efforts to highlight this important issue. He knows that, for our part in Northern Ireland, we regard it as an extremely important issue for the Northern Irish economy. We have had a number of meetings recently and our party leader is meeting representatives from the hon. Gentleman’s constituency and other constituencies in Scotland to discuss the matter further. He has our full support, both in his own constituency in Scotland and from a Northern Ireland perspective.
The right hon. Gentleman’s support is very much appreciated.
To conclude, it could be argued that this is a matter for the Scottish Government, since transport is devolved, but at a UK level it is an important arterial Euro route that connects my constituency to the rest of the United Kingdom. Furthermore, as we continue discussions on the exciting borderlands growth deal initiative, I hope that investment in the A75 forms part of the final terms of that agreement. That is something I will continue to call for.
I am delighted that the Transport Secretary has accepted my invitation to visit Dumfries and Galloway to travel the A75 himself later this year. That is also an invitation I extend to the Secretary of State for Scotland. The road in questions runs through part of his constituency, and I know that he, like me, is all too familiar with the issues that I have raised.
I should also put on the record the fact that I appreciate the support of our neighbours across the water. As one Northern Irish politician put it, “Scotland’s loss is our loss too”. If we were to lose those ports at Cairnryan because they cannot compete with those to the south, that would be a great loss for all of us.
I want all businesses to have the greatest opportunity to make a positive contribution to UK plc as we leave the EU, but I fear that the deficit of investment in the A75 Euroroute, and the port of Cairnryan’s difficulties with that, will mean that it becomes more and more marginalised as an even greater volume of freight is lost to the central corridor ports. We cannot and must not let that happen. There is an urgent need for upgrades to the A75, and I look forward to hearing what the UK Government can offer.
(7 years, 11 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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I hope we have shown that. We have important contracts across the Government with people to provide services, but clearly they need to be provided to an acceptable standard. The decision is not to renew the contract. In taking that decision, HMRC has clearly taken into account operational performance. The focus for all of us—Ministers, HMRC and individual Members acting in their constituency capacities—is to ensure that our most vulnerable constituents are supported as soon as possible to ensure that the money to which they are correctly entitled hits their bank accounts and they do not have the stress of wondering where the money will come from.
All of us as constituency Members of Parliament can relay stories of how the service contract has worked and been deplorable, but on the jobs that will be lost—some of them are in Belfast—will the Minister tell us what contact she has had with the Northern Ireland Executive, or what contact HMRC has had with the relevant devolved Administrations or regions, about the effect on jobs? What will be done to give support to those who will lose their jobs?
It is important to note that the decision has been taken by HMRC not to renew the contract. To that extent, the decision for a private company such as Concentrix on what it does beyond that point is clearly a matter for the company. If the right hon. Gentleman has concerns of that nature, colleagues in the territorial office and the Department for Business, Energy and Industrial Strategy will be happy to talk to him in the normal way. It is important to stress that this is not a decision to end a contract here and now, but a decision not to renew it in the spring.
(8 years, 1 month ago)
Commons ChamberWe await the work that is being done on air quality around the airport. When we discussed the matter some months ago, people were a bit dismissive, but to be fair to the new Mayor of London, he raised air quality issues during the London mayoral contest that resonated with voters’ concerns—the hon. Gentleman would know that as a London MP. Before Parliament makes a decision, it is important that we have addressed the issues, concerns and questions about air quality. It will be nothing new if I tell the House that the decision will be controversial when we come to take it, so it is important that no one cries foul over the process. We can then make a decision on the merits of the case. People know my view, which is that we need additional runway capacity in the south-east of England, but where that capacity should come from must be a matter first for the Government and then for Parliament.
I will give way to the right hon. Gentleman and then make some progress.
As with so many issues, Northern Ireland has a direct interest in runway capacity in the south-east, and we want a decision on the issue raised by the hon. Member for Ilford North (Wes Streeting) as quickly as possible as well. Can the Chancellor assure me that the Treasury is talking to the Department of Finance in Northern Ireland and the Northern Ireland Executive so that Northern Ireland’s interests and concerns are very much in the thinking of Her Majesty’s Government?
That dialogue is taking place and I assure the right hon. Gentleman that it will continue to take place. We were on different sides of the argument when it came to the referendum, but he shares my view that Britain needs to be open to the world and trading with the world. That means having sufficient airport capacity to fly to the world and to allow the world to fly to us. I am sure that that view is universally accepted across the House, but we will find out.
The key challenge, to which I think we can rise, is working out through collective discussion and decision making the new relationship that we should seek with the European Union. Until we have agreed on an approach, we should not trigger article 50 and begin the process of exiting the European Union. As the Prime Minister said, “triggering article 50” is rightly a decision for the new Prime Minister and the new Government, and it is a decision that we will take at the right time, when we are ready and not before.
The economic uncertainty will have an impact on our public finances that is likely to be both cyclical and structural. The Office for Budget Responsibility will make its assessment of the economy this autumn—let me tell the shadow Chancellor that, to get the best possible forecast from the OBR, we have to wait a little for the dust to settle—and it will be for the new Government under a new Prime Minister to take the decisions about the adjustments that will be required to meet the new fiscal realities, but we should never forget that fiscal stability is the absolute bedrock of economic security. We must be realistic, but I want to reassure the House that our economy remains competitive and open for business—we have the lowest corporate taxes in the G20, more people in work than ever before thanks to our welfare reforms, and our science and our universities are world class.
Let me pick up on a point that has been made throughout the debate in the country and in Parliament. We need to go on forging our links with key partners beyond Europe, such as with China and India. I never thought that we had to choose between Europe and forging new links with the rest of the world. Germany exports three times as much as we do to China, so it is clearly possible to do that within the European Union, but outside the European Union those links are more important than ever before.
I will travel to China next month as part of the G20 Finance Ministers meeting there. To pick up on a point that my hon. Friend the Member for Harrow East (Bob Blackman) made in an intervention, I have spoken to the US Treasury Secretary and the Speaker of Congress in the past couple of days about strengthening our ties with our great ally, America.
(8 years, 1 month ago)
Commons ChamberIt is a privilege to follow the right hon. Member for Basingstoke (Mrs Miller). I had the pleasure of serving under her chairmanship on the first world war centenary advisory board and of working alongside the hon. Member for South West Wiltshire (Dr Murrison), the Prime Minister’s special representative for the centenary commemoration of the first world war. He has been in Northern Ireland and the Republic on a number of occasions and joined us in some of our centenary commemoration events. We thank him for all his support.
The Battle of the Somme has a particular resonance, as the hon. Gentleman reminded us, for the island of Ireland, and especially in the historic province of Ulster in what is now Northern Ireland. The 36th (Ulster) Division, which was deployed for the first time in combat on 1 July 1916, acquitted itself with great gallantry, heroism and fortitude, but it suffered a huge loss on that fateful day.
Before I go into a little detail on that, may I pay a tribute to my colleagues on the Northern Ireland world war one centenary committee, which I have had the privilege of chairing since its formation? The committee is responsible for organising the main events throughout the centenary period. We have a special programme of events coming up this weekend in Northern Ireland, including an overnight vigil at Clandeboye, near Helen’s Tower, the scene where the 36th Division trained before it went off to France to fight on the western front. We will have events at Belfast City Hall and in Parliament Buildings, Stormont. In the evening, we have a festival of remembrance at Carrickfergus castle. Saturday is devoted to local community events, commemorating the losses at a local level in villages, towns and cities across Northern Ireland. On Sunday, we have a special service in St Anne’s cathedral in Belfast to commemorate the sacrifice not only of the 36th Division, but of the 16th (Irish) Division, which fought with equal valour at the Battle of the Somme.
May I commend my right hon. Friend on the way in which he has chaired the Northern Ireland world war one centenary committee? He mentioned the sacrifice of the 36th (Ulster) Division and the 16th (Irish) Division. The way in which the commemorations are playing out in Northern Ireland is exemplary because they are bringing people together. For the first time in a long time, people are recognising the sacrifice of soldiers from Northern Ireland and southern Ireland. The work that his committee has done has been absolutely tremendous.
(8 years, 2 months ago)
Commons ChamberI share many of my hon. Friend’s views on our membership of the European Union, although I have to say that I do not think EU membership has a great bearing on tourism. People come to this country because of our fantastic heritage, our wonderful landscape, our arts and our sport, not because we are members of the European Union.
The north-west does have many attractions, and I hope it will take advantage of the Discover England fund, which I described earlier. The fund is designed to raise awareness of the many attractions that England has outside London, and, as has been pointed out by my hon. Friend and by the hon. Member for Lancaster and Fleetwood (Cat Smith), many of those are indeed in the north-west.
Has the Secretary of State had any recent discussions with the Northern Ireland Executive about Tourism Ireland, that strange body which is responsible for marketing the Irish Republic and Northern Ireland overseas? There is concern in Northern Ireland about the possibility that its identity will be lost and it will be unable to benefit from the inflow of tourists visiting the rest of the United Kingdom, although it currently has a tremendous amount to offer them.
I am aware of the slightly different arrangements for the promotion of tourism in Northern Ireland, although I have had no discussions with the Minister responsible for it. I think he has only just arrived. I look forward to meeting him in due course, and I shall be happy to talk to him about the issue then.
Each Member is responsible for the questions they submit. Because of the way the process of tabling questions works, the Table Office is able to ascertain whether a question relates to a devolved matter or is the responsibility of a UK Government Minister answering at this Dispatch Box.
Would not one way of increasing participation in Northern Ireland affairs, especially by Northern Ireland Members, be to have more frequent meetings of the Northern Ireland Grand Committee?