Product Regulation and Metrology Bill [HL] Debate
Full Debate: Read Full DebateLord Lansley
Main Page: Lord Lansley (Conservative - Life peer)Department Debates - View all Lord Lansley's debates with the Cabinet Office
(2 months, 1 week ago)
Lords ChamberMy Lords, this has proven to be a more engaging debate on the subject of product regulation than I had anticipated, principally due to the pleasure of hearing the speech from the noble Baroness, Lady Winterton of Doncaster. We both arrived in the other place in 1997—there were a few of us, and rather more on her Benches. I left before she did, but all through that period it was a very great pleasure to work with the noble Baroness. I look forward to working with her in this place and I much enjoyed her maiden speech.
I am also pleased to follow my noble friend Lord Frost. As I will come on to explain, the purpose of my speech is not necessarily to embrace his argument entirely but rather to embrace his solution. I do not need to ascribe to the Government any ulterior motive about alignment with EU regulation, and I happen not to agree with the noble Lord, Lord Russell, that we should aim for dynamic alignment. Much as I would have wished that we were still members of the European Union and all that flows from that, that is not the point. The point is that we are where we are. From my point of view, the worst outcome is if we become essentially rule-takers rather than rule-makers. The risk is that, through dynamic alignment, that is exactly what would happen; that alignment would contribute to the problem.
I know that a number of noble Lords here today took part in the debate on the Product Safety and Metrology etc. (Amendment) Regulations, just before the Dissolution in July. Quite rightly, concerns were expressed about the loss of capability in the standards-making and regulatory processes in this country as a consequence of the continuing extension of the CE marking on the part of the European Union.
This legislation is necessary. Many in industry welcomed the 21 product sectors having the CE marking extended to them, but they said we were getting closer to the point where there will be a divergence between the CE marking and the UKCA marking. At that point, what do we do? Do we allow two different products to be marketed inside the United Kingdom while arguing to consumers that they are equally safe and effective? I do not think that is a tenable long- term solution, so we must have—as I think my noble friend Lord Frost admitted—more powers, which are in this Bill.
I will not talk on some of the many other interesting subjects that I look forward to our discussing in Committee, but I do want to look at the serious question of how we support and maintain the capability in product regulation, in which the noble Lord, Lord Leong, in his admirable opening to our debate, said we are a world leader. We want to remain a world leader in product regulation, so how are we to do that? Many in industry would say, “Let’s carry on with CE markings for ever and, as they change, just accept them”. I am afraid that is not the solution. I add in parentheses that the Bill’s scope does not extend to medical devices, but the same issues arise in relation to them. Although I endorse the solution in relation to medical devices, we still do not yet get the answer we are looking for; we still run the risk that we recognise other people’s product regulation but do not sustain our own.
Where should we go to? We need to escape from this outcome, and now is the time for us to adopt a much-strengthened policy in relation to our work in international standards. If our regulations and those of the European Union, and indeed the regulations of other countries, are based on international standards, we can reduce regulatory compliance costs and remove technical barriers to trade. Now is the time for this country to lead in an accelerated push for the development and adoption of international standards as the basis of product regulation.
As my noble friend referred to earlier, I think we are to accede to the CPTPP by 15 December. Article 8.5 of that treaty says:
“The Parties recognise the important role that international standards, guides and recommendations can play in supporting greater regulatory alignment, good regulatory practice and reducing unnecessary barriers to trade”.
Article 8.9 says that
“greater alignment of national standards with relevant international standards”
should be pursued,
“except where inappropriate or ineffective”.
It calls for the parties to the CPTPP to
“strengthen their exchange and collaboration … to support greater regulatory alignment”,
which is absolutely right. Very interestingly, in its February 2022 strategy on standardisation, the European Union said:
“Traditionally, the EU has been a strong leader in international standardisation activities but”—
this is interesting—
“needs to take account of a changed geopolitical situation, as other countries start to approach international standardisation more strategically and gain influence”
in its committees. This is a relatively recent acknowledgement by the European Union—in this case, the European Commission—that its policy of making standards in Europe and then handing them to the rest of the world is not going to be sustainable indefinitely; I think it is right about that. Indeed, Mario Draghi, in his recent report on the competitiveness of the European Union, identified the value of international standards in promoting regulatory harmonisation and reducing trade friction. He sought European Union action to lead in framing international standards.
Article 92.1 of the trade and co-operation agreement refers to the use of
“international standards as a basis for the standards”
that each of the parties develop, so we do not need to change the mandate or renegotiate the trade and co-operation agreement; we need to use that agreement. That is where the negotiations with the European Commission should be aimed: at maximising the implementation of the trade and co-operation agreement.
We know that we all use international standards, some to a greater extent than others. We all agree that we should use international standards more in the future, but that fact is not stated anywhere in the Bill. Could it be? Like other noble Lords, I participated in the debates on the Medicines and Medical Devices Act 2021. Section 16(2) of that Act, referring to how to meet product regulation requirements, says that provision
“may … identify relevant requirements by reference to international agreements or standards relating to the marketing or supply of medical devices”.
So where medical devices are concerned, we have statutory backing for a process of recognising international standards as the basis for our own product regulation requirements. I want to see this Bill incorporate the potential for international standards to meet the requirements for product regulation across a broader range of products—not just medical devices, but taking them into the scope of this Bill—and the very wide range of industrial products that are covered. I also hope that in the course of the discussion on the Bill we will give statutory backing to a lead by the United Kingdom to accelerate the development of international standards to be the basis of greater regulatory alignment with our leading trading partners, including our existing agreements both in the CPTPP and the trade and co-operation agreement.