(3 years ago)
Lords ChamberMy Lords, the Brexit support fund was indeed not fully used, which suggested to us that it was not the best means of providing support to companies. That is why we have brought in the export support service, which I hope will grow and become more focused in time—in particular to help SMEs, which obviously have most difficulty in dealing with the new arrangements.
The noble Lord is obviously correct to say that this is business for the trade specialised committees, and when we have particular evidence of difficulties, we will certainly raise them in those fora.
My Lords, in the week that the Government have announced, for very understandable reasons, that they will extend free, unfettered access for firms from the Irish Republic—part of the EU—to the UK market, is it too much to hope that British firms sending goods to the other part of the United Kingdom in Northern Ireland might also benefit from free, unfettered access? Surely that is not too much to ask, and can the Minister tell us when we are likely to see that?
The noble Lord makes an extremely good point. If I may dwell on it for a moment, it is obviously true that the legal framework for Northern Ireland and Ireland goods coming to Great Britain is different because of the unfettered access commitment. In practice, at the moment, it is not always possible to distinguish between the two categories of goods, but that will change in future and we will need a definitive solution to this question. Of course, the degree of pragmatism that we show in future to Irish goods coming to Great Britain will be related to the degree of pragmatism and flexibility that the EU shows in allowing goods to move freely around all parts of the UK.
(3 years ago)
Lords ChamberMy Lords, there are a number of difficulties in this highly technical area of the supply of medicines. We have been looking at the proposals made by the Commission. The problem set out by the noble Baroness is not the only issue that needs to be resolved. At the moment, we are not confident that what is on the table would resolve all the issues, but we continue to talk.
My Lords, does the Minister accept that the grace period to allow medicines to come to Northern Ireland from Great Britain is about to run out and that that will have devastating consequences for the supply of over-the-counter medicines and essential drugs for hospitals for people in Northern Ireland? What will he say to people in Northern Ireland to bring certainty on this vital issue? Does he accept that medicine should never have been part of the protocol in the first place? Why was it?
My Lords, the grace period formally expires at the end of this year, but we are also in a standstill agreed between the two sides in July that keeps current arrangements running. It is our expectation that the current grace period arrangements will continue beyond the end of the year as long as we are in constructive discussions with the EU. The existence of the grace period has meant that some of the supply difficulties that we had earlier in the year have changed, but obviously we need to find a permanent solution to this problem.
(3 years, 1 month ago)
Lords ChamberThe noble Lord makes a very fair point about the objectives of this legislation. That is why we need to establish the detail of what the Irish Government intend to do and how they intend to go about it. What he says rather proves the point that we have always made: it is perfectly possible for two separate jurisdictions to pursue complementary policy ends that do not involve accepting exactly the same legislation in exactly the same way. That is the approach we have tried to take.
My Lords, to come back to what the Irish Government actually said about this matter—not the interpretation that has just been put on it—are we not in an ironic situation? The Irish Government and others said that any checks on the island of Ireland equalled a hard border and that a hard border would lead to violence. Now the Irish Government are proposing such a thing—that is the reality of it. People can shake their heads all they like, but the fact of the matter is that the Irish Government, when Varadkar came to power, changed what Enda Kenny was doing and said that no checks—even away from the border or digitally—would be acceptable. Will the Minister go back and indicate to his good friend Simon Coveney, whom he is meeting and talking to later today, that no checks means no checks if what they believe is true?
My Lords, there has indeed always been some complexity in interpretations of this matter. It is certainly true that in areas such as red diesel, for example, where there is a need to avoid fraud due to different excise rates between Northern Ireland and Ireland, there is very good co-operation between HMRC and the Irish Revenue Commissioners. There is lots of multiagency and cross-border co-operation, intelligence and information sharing and so on, and that works perfectly well. I do not necessarily say that is a model you can generalise to absolutely everything, but it certainly shows that this issue is not quite as black and white as it is sometimes painted.
(3 years, 1 month ago)
Lords ChamberTo ask the Minister of State at the Cabinet Office (Lord Frost) what assessment Her Majesty’s Government have made of the impact of the Protocol on Ireland/Northern Ireland on (1) Northern Ireland’s place in the United Kingdom internal market, and (2) the flow of trade.
My Lords, the protocol recalls the importance of maintaining the integral place of Northern Ireland in the UK’s internal market and is clear that Northern Ireland is part of the UK’s customs territory. We are concerned that these provisions are not reflected in the way in which the protocol is being implemented. As a result, there is clear evidence of trade diversion. Trade data shows that trade between Northern Ireland and Ireland has increased significantly in both directions this year.
My Lords, the Minister knows that the protocol is having a major adverse impact on trade flows between Northern Ireland and the rest of the United Kingdom, never mind the massive destabilising effect on the political institutions and the political process in the Northern Ireland. The chairman of Marks & Spencer says the EU proposals threaten to increase the administrative burden on imports to Northern Ireland. They could result in “worsening friction”, he says and, as a result, his firm and others might have to stop sending goods to Northern Ireland.
The head of the Road Haulage Association in Northern Ireland referred to the EU proposals as “window-dressing”. He knows, as we all know, that the EU proposals do not address the fundamental issues of the protocol. Will he now tell the House and tell the people of Northern Ireland when he is going to implement the proposals set out in the Command Paper of July this year to finally restore Northern Ireland’s place in the UK internal market fully, to fully restore Northern Ireland’s place inside the UK customs union, not on paper but in reality, and finally restore full democratic accountability to Northern Ireland as part of the United Kingdom in the 21st century?
My Lords, the noble Lord sets out serious concerns, which we share. I should like to make our position on these negotiations and Article 16 100% clear, as he asks. Whatever the messages to the contrary that the EU may think it has heard or read, our position has not changed from the one I set out on 10 November or, indeed, in July at the time of the Command Paper. We would prefer to reach a negotiated agreement if we can. That is the best way forward for the stability and prosperity of Northern Ireland but I want to be clear that, as the responsible Minister, I would not recommend any outcome from the negotiations that I did not believe safeguarded political, economic or social stability in Northern Ireland. In such circumstances, we obviously would need to provide the necessary safeguards using Article 16. Those safeguards remain very much on the table and they are a legitimate provision in the protocol. No decision has been taken to exclude a priori any specific timing for Article 16. That will be shaped by whether and how quickly negotiations make progress.
(3 years, 1 month ago)
Lords ChamberThe noble Lord, Lord Lilley, is not present, so I call the noble Lord, Lord Dodds of Duncairn.
My Lords, a bonfire of regulation or a selective shredding of EU retained law here in Great Britain will of course not apply to Northern Ireland because we still remain under EU control and EU laws and, as the Minister has said, with no democratic input whatever from anyone elected in Northern Ireland. How is Northern Ireland going to remain competitive or even on a level playing field if Britain diverges from it continuously, not just now but over years and decades to come, unless the protocol is changed?
The noble Lord raises a very good question. It is indeed one of the difficulties with the protocol, as constructed, that EU law, in areas of the single market for goods, is imposed without any agreement by the institutions in Northern Ireland. That is a situation we are seeking to remedy in the negotiations I am currently conducting.
(3 years, 2 months ago)
Lords ChamberMy Lords, I asked myself that question implicitly in the speech and I still do not really know the answer. I think our behaviour since the start of the year as a fully independent country has been extremely constructive internationally. For example, we have established our own sanctions regime; we have been very proactive in it; we have welcomed citizens of Hong Kong to this country; we have been among the first to raise questions about the treatment of the Uighurs; and we have been the first to bring in sanctions against Belarus. I think we have been extremely constructive in this process over the years. I am sorry that from time to time we have faced accusations that we do not behave accordingly, but I do not think they are justified by the facts.
My Lords, issues of sovereignty and democracy lie at the heart of the problems with the Northern Ireland protocol. Does the Minister agree that we may solve some practical issues, and the EU will produce proposals on that later, but unless we do away with the issue of laws being made for part of the United Kingdom in the 21st century without any say—yea or nay—of elected representatives of Northern Ireland, it will store up future problems of divergence and diversion of trade? Therefore, issues such as the ECJ and the democratic deficit need to be addressed if there is to be a permanent solution to the problems of the protocol.
I very much agree with the thrust of the noble Lord’s question. We would like to find a permanent solution to this problem, a solution that everybody can get behind in Northern Ireland and beyond and that represents everybody’s interests. That is why partial solutions that tinker around the edges of the existing arrangement will not do the job. The question of sovereignty is fundamental. We have to find solutions that are consistent with UK sovereignty in Northern Ireland and, to come back to it, that support the Belfast/Good Friday agreement, which is fundamental to politics in Northern Ireland.
(3 years, 3 months ago)
Lords ChamberMy Lords, I am certainly happy to update the House. The Partnership Council met before the summer, as the noble Lord noted. I would expect it to meet again before the end of the year. It is of course the supreme body of a complex substructure and the specialised committees have been meeting. Those that have not will meet over the rest of this month and in October, and will provide proposals and ideas to the council. So, although it may not be as visible as we would wish, there is a huge process under way that is designed to look at difficulties and, we hope, find ways of resolving them, including the question of qualifications that the noble Lord mentioned.
My Lords, the issue of taxation without representation is becoming a bigger problem every day for Northern Ireland. These suggestions and proposals by the Minister, which are very welcome in many respects, simply cannot be applied to Northern Ireland. He must recognise the urgency of this situation. The EU is trying to kick the can down the road until after the Assembly elections next year. Will he act within the very short timeframe that we now have if stability is to be restored and proper democratic accountability for laws made for Northern Ireland introduced?
My Lords, we certainly recognise the urgency of the situation and very much share the noble Lord’s anxiety on this question. The relative stability in Northern Ireland is because our Command Paper proposals are regarded as a good set of proposals that are capable of resolving the problem. Obviously, it is one thing to put them forward and another to see them implemented, so we absolutely need to have a meaningful negotiating process with the EU, which we do not quite have yet, to see whether we can resolve the issues centrally and to know that quickly. If we cannot do so, as I have said, other ways forward are possible.
(3 years, 5 months ago)
Lords ChamberI very much agree with the thrust of my noble friend’s comments. The impact of the protocol on everyday lives in Northern Ireland is a significant part of the difficulty. Again, if one looks at the comments from the chair of Marks & Spencer, we see the risks to everyday life; for example, the risk of not being able to deliver supplies for Christmas under the current arrangements. I do not think that is what either the European Union or we actually want in this situation, and if we can focus on the practicalities and the reality of the situation and try to find a way through, we will all be the better for it.
My Lords, clearly the Northern Ireland protocol is not fit for purpose; it is not working or delivering for Northern Ireland. Any noble Lord who visits Northern Ireland and talks to people will know that immediately, and the Minister has done that frequently. Whatever the benefits, they are massively outweighed by the disadvantages—economic, societal and political. Can the Minister assure me that at the end of this process of renegotiation, or if direct action may be necessary by the Government, we will end up in a position where the new balance of arrangements will restore Northern Ireland to its proper place, with no Irish Sea border and with elected representatives of the people of Northern Ireland, either here or in the Assembly, having the final say over the laws that govern Northern Ireland?
My Lords, it is clear that the balance we have in the protocol is not working at the moment, and I have explained why on many occasions. The issue raised by the noble Lord is one reason why we think changes to the governance arrangements in this protocol are so important. It simply does not fit with the reality of the situation to have laws imposed and policed by institutions outside the UK territory and subject to the judgments of courts that are not courts of the UK. If we can agree that—I recognise that it is a significant point—I think we will find some of the problems raised by the noble Lord beginning to melt away.
(3 years, 5 months ago)
Lords ChamberMy Lords, I do not think that was highly charged language; I think it was an accurate description of the situation when we received a communication containing 600 to 800 pieces of legislation and pages. That is a significant event. New legislation not within scope of the protocol is obviously covered in a different way; this is obviously legislation that is within scope. Technical amendments can of course be quite significant, and the task of assessing that and ensuring that we understand the statute book in Northern Ireland is significant. That is why we should like more warning, more process and more discussion of this matter.
Can my noble friend confirm that the overall balance of benefits and disadvantages of the protocol is tilted against Northern Ireland at present, given that Northern Ireland trades more with the rest of the United Kingdom than with the Republic of Ireland, the rest of the world and the European Union put together, a phenomenal statistic that should always be borne in mind? Does he agree that firm action needs to be taken to deal not only with that trade imbalance but the societal and political instability which also need to be taken into account when one assesses the benefits and disadvantages of the protocol?
My Lords, the noble Lord makes a very good point. The balance of advantages and benefits in the protocol is not solely economic, although the economic links are clearly very strong with Great Britain. They are to do with society, politics and the sense of identity, which, it seems, has been undermined in places by the operation of the protocol. It is reasonable to take that into account in our overall assessment. Diversion of trade, societal disturbances and so on are obviously very important factors when we come to consider what action is necessary in this matter.
(3 years, 5 months ago)
Lords ChamberMy Lords, as I mentioned, the governance mechanisms of the trade and co-operation agreement are now operational. The specialised committees will meet in the weeks and months to come. As this process gets going and the teams get into contact and discuss the issues, I am sure that matters at this level of detail will improve. The best way of improving the level of trust between us would be to engage in a pragmatic negotiation on the Northern Ireland protocol. If we can find solutions there, I am sure that things will greatly improve.
My Lords, if everyone is serious about adhering to the Belfast agreement as amended by the St Andrews agreement, we must all agree that it fails the test of cross-community support in Northern Ireland. It undermines the three-stranded approach to the east-west relationship and the constitutional settlement as far as the Assembly is concerned. In bringing forward solutions, which are urgently needed as we approach the summer, does the Minister agree that, as well as the trade friction, the constitutional and democratic flaws at the heart of the protocol need to be addressed?
My Lords, when one observes the situation in Northern Ireland, there is a clear sense in one community that ties with the rest of the UK risk being weakened. That has the political consequences with which we are very familiar. The situation needs to be dealt with. Consent is extremely important. We recognise the issues of democratic accountability, which is why—unusually—we built arrangements for consent into the protocol. The whole protocol depends on consent. If there are clear doubts about it in either community, in practice it will be very difficult to operate, which is why it is so important to come together to find pragmatic solutions.
(3 years, 6 months ago)
Lords ChamberTo ask the Minister of State at the Cabinet Office (Lord Frost) what steps Her Majesty’s Government will take to prevent any negative impact on Northern Ireland from the Protocol on Ireland/Northern Ireland.
My Lords, as I have set out on many occasions, it is clear that the protocol is presenting significant challenges for many in Northern Ireland and across the whole of the UK. Solutions must be found urgently to address these. We remain committed to working through the issues with the EU, and we hope that it will show common sense and take a pragmatic risk-based approach to the problems. We continue to consider all our options in meeting our responsibility, which is also the purpose of the protocol, to protect the Belfast/Good Friday agreement and the peace process.
I thank the Minister for his Answer. In the protocol court case that is being taken in Belfast, the Government have argued, astoundingly, that parts of the Act of Union itself have been impliedly repealed by the protocol. That is an incredible position for a Conservative and Unionist Government to find themselves in. Does the Minister accept that, as well as the serious economic difficulties and diversion of trade being caused by the protocol, this assertion of constitutional vandalism will add immensely to the serious societal difficulties in Northern Ireland, one expression of which is the almost nightly occurrence of peaceful protests in Northern Ireland, which are largely unreported but reflect a widespread dismay at the unbalanced approach to the political and peace process? The Minister talked about solutions. Can he indicate a timetable for solutions that reflects the urgency and gravity of the situation?
My Lords, obviously I am not able to comment on the specifics of litigation while it is ongoing. I point out that the protocol itself is clear that it is without prejudice and has no effect on the territorial integrity of the UK or its essential state functions. That is a very important element of the protocol.
We understand the dismay and concern about identity that is provoked by the way the protocol is currently being implemented, and we are attempting to respond to that as a matter of urgency. There are a number of timetables in parallel here: the negotiating process, the grace periods themselves and the political timetable in Northern Ireland must all be kept in step if we are to find solutions to these issues.
(3 years, 8 months ago)
Lords ChamberMy Lords, the people of Northern Ireland must of course have access to a wide availability of medicines and pharmaceutical products, just as in any other part of the UK. There is, of course, a grace period in place until the end of this year for the protocol provisions. We have proposed, as is known to the EU, that this should be extended by a further year. We continue to discuss this matter.
My Lords, given that the protocol prevents the flow of free trade within the United Kingdom internal market and stops any elected representative, either at Stormont or here at Westminster, having any say or vote on laws which govern a large degree of the economy of Northern Ireland, does my noble friend agree that these matters must be addressed and corrected at the earliest opportunity; that we as a sovereign, independent country must ensure that the people of Northern Ireland are treated in the same way as people elsewhere in the United Kingdom; and that we have to do this to ensure that we have a stable future for devolution and a balanced and proper implementation of the agreements, not a one-sided interpretation and implementation of them?
My Lords, the noble Lord is absolutely correct to say that the future of the protocol depends on the consent of the elected representatives and the people of Northern Ireland. If that consent is not maintained, it is difficult to see how the protocol can be genuinely durable. All sides must work to sustain it. The EU needs to be aware of the impact its decisions have had on the ground in Northern Ireland in recent months, and continue to work to implement the protocol in a pragmatic and proportionate fashion.