Definition of Qualifying Northern Ireland Goods (EU Exit) Regulations 2020

Lord Hain Excerpts

Monday 30th November 2020 Grand Committee

[Lord Hain (Lab) [V]]

My Lords, I thank the Minister for his explanation of these regulations and his customary professionalism and courtesy, although I am afraid that he rather glossed over, in the inimitable way of Ministers during this chaotic last stage of the Brexit saga, many of the things involved. Although he reaffirmed the UK Government’s promise of unfettered access into Great Britain for Northern Ireland goods, the question arises: what exactly are Northern Ireland goods?

The UK Government needed to define what are those Northern Ireland goods that qualify for unfettered access, but this has not been straightforward, given that some goods leaving Northern Ireland for Great Britain are the product of a complex process of production that includes components from elsewhere, especially in the Republic of Ireland. The picture is especially complicated for agri-food. For example, if a pig was born in the Republic of Ireland, slaughtered in Northern Ireland, processed into sausage in the Republic of Ireland and packaged in Northern Ireland, is that a Northern Ireland or a Republic of Ireland sausage?

As I understand it, the Government have taken all sorts of advice from businesses, but it became complicated, because it is so different for different industries and sectors. For instance, some have no contact with the Republic of Ireland and, therefore, the European Union, while others are fully integrated with both. If a good is defined as a Northern Ireland good but has very little contact with Northern Ireland—for example, it is just packaged there—there is a risk that Northern Ireland could become a back door into Great Britain, especially in a no-deal scenario, to avoid tariffs. That would undermine genuinely local Northern Ireland goods.

The Government did not have time fully to address the complexity of all this, so I am afraid that the statutory instrument is just a sticking plaster for phase 1, as they are calling it, and as the Minister virtually said. We are told to expect much more detail, as he said, and nuance in phase 2, which we are all promised will come next year. The problem is that the sticking plaster prioritises flow over control; that is to say, it basically defines everything in free circulation or moving around Northern Ireland as a Northern Ireland good. That could potentially include Irish and EU goods. The upside is that it avoids the need for new checks and procedures to distinguish between Northern Ireland and other goods leaving Northern Ireland for Great Britain come 1 January. The downside is that, especially if there is no deal, although conceivably even if there is a thin deal, it shares an advantage given to Northern Ireland goods, which is unfettered access into Great Britain, with those from outside Northern Ireland. Again, that is particularly bad in the event of no deal, given that Northern Ireland goods should not face tariffs on entry to Great Britain but Republic of Ireland goods would.

In other words, this is all a real dog’s breakfast, but one with potentially costly and important consequences for Northern Ireland’s economy and businesses, and another case of how Northern Ireland always seems to end up second best over the Government’s hard Brexit dogmatism.