Product Regulation and Metrology Bill [HL] Debate

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Department: Cabinet Office
Lord Jackson of Peterborough Portrait Lord Jackson of Peterborough (Con)
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My Lords, it is a pleasure to take part in this important debate on the Bill. I welcome the noble Lord, Lord Leong, to his place on the Front Bench and congratulate him on his appointment to the Government. I am sure he will do an excellent job. I also welcome the noble Baroness, Lady Winterton of Doncaster. We were sparring partners in the other place and I am sure she will make a very strong contribution in this House.

The Bill appears beguilingly straightforward, benign and innocuous, but it contains some clauses that cause me a deal of concern and alarm, both for what is written in the Bill and—as my noble friend Lord Trenchard said—what is not written but omitted. I will concentrate my remarks on product regulation.

Naturally, we all support the imperative of responding to new product risks and opportunities, updating the law in respect of new and emerging business models in the supply chain, enhancing powers for market surveillance, working towards better product safety, including for products sold online, and addressing product recalls and traceability. The previous Government were committed to replacing and updating EU-derived regulations that were part of UK law, aiming to create a more coherent and effective product safety regime.

There is a consensus on the Government’s focus on innovation as a driver for the delivery of economic growth. That includes the safe development and supply of new technologies. As we know, a new modernised product safety regulatory framework has been needed for some time, as the Office for Product Safety and Standards pointed out in its 2018 report. New legislation was, of course, inevitable and probably advisable following the OPSS’s product safety review of March 2021, with the focus on updating the General Product Safety Regulations 2005. The previous Government legislated in secondary legislation that came into effect this month.

However, as noble Lords might expect, I have some reservations, particularly on Clauses 1(2) and 2(7), which contain powers to align UK laws with any EU environmental rules and a general power to provide that the EU standards shall apply respectively.

The language in Clause 2(7) is oddly technocratic but, at the same time, vague. It has significant ramifications in terms of a policy shift towards aligning with EU standards over time—dynamic alignment. Other noble Lords, such as my noble friends Lady Lawlor and Lord Frost, mentioned this. The Bill also does not fully elucidate the details of what types of products are covered by its provisions—it references “nearly all manufactured products”—so will the Minister clarify this for the House? Will alignment with the EU regulatory regime include the EU’s 2023 safety regulations, due to come into force in the EU in December 2024, and the revised EU product liability directive, in the next few years? What steps will Ministers take to both consult with business and allow Parliament appropriate scrutiny and oversight of ministerial decisions? If the latter is not the case, will the Minister tell us whether the Government will bring forward primary legislation on product liability in the near future?

As Which? has rightly stated, this is an enabling Bill, a Henry VIII Bill, which allocates vast powers. The devil will of course be in the detail of the secondary legislation. I had a wry smile when I heard the noble Lord, Lord Russell of Liverpool, reproaching my noble friend Lord Sandhurst for referencing the Henry VIII powers in the Bill. We were tripping over legal experts on the Cross Benches during the Retained EU Law (Revocation and Reform) Bill, who pontificated and opined on that Bill’s traducing of parliamentary sovereignty by its Henry VIII powers. But I fear that the noble Lord is alone today and that his Cross-Bench noble friends who share his views are not present. The strange thing is that we now have a Labour Government, which might account for that.

The briefing paper from Which? rightly points out the lack of detail in the Bill on the duties and obligations of those supplying products in online marketplaces, for instance. I therefore invite the Minister seriously to consider the proposals outlined by Which? in the helpful briefing paper: an explicit set of provisions to detail key duties on online marketplaces and a commitment to publish, in good time before the duties come into force, any draft secondary legislation on how these duties will work in practice, and to consult key stakeholders on the design of those regulations.

Which? also made the very important point that a new parliamentary committee should be dedicated to scrutiny and to reviewing any proposed changes to product and metrology regulations, especially where the UK is opting to diverge from existing rules. I do not have a problem with defending the divergence of rules if it is in the long-term interest of UK businesses, looking outwards to global regulatory regimes—if it is defensible, of course.

Which? also proposes a commitment to ensure that, in the future, consumer and industry groups are given consultation rights over any significant rule changes that impact specific products and markets, in good time and before draft secondary legislation is published. I hope the Minister will address that in his speech.

As has been mentioned, in fairness, the Bill also contains provisions that allow the UK to end recognition of EU product regulations. I concede that, but the Minister might explain how such a decision might be triggered, what scrutiny Parliament will be able to exercise on that policy and what evidential basis will be required.

On the specific content of Clause 2(8), can the Minister explain the likely scenarios that would cause him or her to make reference to

“the social, environmental and economic impact”

of the Bill’s provisions and the rationale for this subsection, given that the Bill already complies with human rights provisions and environmental legislation? Dare I say that Clause 2(8) might just invite more litigation and judicial review? On that basis, it is perhaps unwise to place it in the Bill.

The Bill is opaque in many respects. It is a concern that the impact assessment prays in aid the enabling nature of the powers in this primary legislation and is therefore silent on the likely monetary costs of the Bill to business. Page 11 of the impact assessment specifically states:

“Impacts have therefore not been monetised and are discussed qualitatively”.


While the rationale for the Bill appears clear and unambiguous—that, at present, the UK lacks the power to end recognition or to recognise new and updated EU regulations in Great Britain—I am unconvinced of the corollary argument that, ipso facto, the UK will fall behind the EU and other jurisdictions and markets in its innovation, technological advances and competitiveness. I have great respect for the noble Lord, Lord Foster, but I think it is important to take our time with the considered scrutiny of the Bill, because the devil will be in the detail—notwithstanding what he said about specific product issues, which are of course very important.

At the risk of being labelled deranged by the noble Lord, Lord Redesdale, I refer noble Lords back to recent history and the ill-fated Chequers White Paper of 12 July 2018, the most consequential part of which considered the future economic partnership between post-Brexit UK and the European Union. These proposals were thrice rejected in the other place, and indeed by the EU in September 2018. The May Government proposed a common rulebook—I am sure we all remember that—for all goods, including agri-food, and a treaty commitment to harmonisation to provide frictionless trade. In addition, the PM promised binding commitments on state aid and competition, and non-regression clauses on level playing field issues, and the UK was de facto to remain in the customs union, which was then labelled the combined customs territory. Amazingly, senior civil servants briefed the EU that Chequers would give the UK no competitive advantage in business and commerce in the future, which seemed an odd position for the UK Government to take. There was no mandate, electorally or in Parliament, for what was effectively dynamic alignment —without a vote or a voice, as my noble friend Lord Lansley said. I say in passing that I agreed with the vast bulk of my noble friend’s very well-articulated remarks.

Finally, the Bill potentially undermines His Majesty’s Government’s manifesto commitment to remain outside the single market, opens up disputes over the reach of the European Court of Justice in its interpretation of legacy EU law, and traps entrepreneurs and innovators in the UK into a legal and regulatory framework that is inimical to British competitiveness, global ambitions and economic growth and prosperity. Let the Minister be assured that a number of us noble Lords will watch the progress of the Bill hawk-like and will fully hold him and his Government to account.