Protocol on Northern Ireland: Disruption to Trade

Debate between Lord True and Lord Morrow

Thursday 14th January 2021 Lords Chamber

[Lord True (Con)]

Yes, my noble friend is right: the protocol and our implementation of it fully protects Northern Ireland’s status as an integral part of our United Kingdom. That must remain the case. As I have said, there are teething problems and we have to address these, but if they ever become disproportionate, then that is the time, as my right honourable friend the Prime Minister said, when further action would have to be considered.

[Lord Morrow (DUP) [V]]

The Minister has acknowledged that there are problems and difficulties at the ports and elsewhere, and it is reported that some freight companies are losing tens of thousands of pounds per week because of the confusion that reigns there. We also have a problem with a Secretary of State who refuses to acknowledge that there is, in fact, a border at all. Will the Minister give his assessment today of the impact that the protocol and the sea border will have on the Northern Ireland economy? In light of the Prime Minister’s comments yesterday, will he clarify the specific conditions in which the Government would act to invoke Article 16 of the protocol and restore unfettered market access for goods moving from Northern Ireland to the rest of the United Kingdom’s internal market?

[Lord True (Con)]

My Lords, I can certainly give the noble Lord the assurance that we will work extremely hard to overcome difficulties. As I just said in reply to my noble friend Lord Caine, the Prime Minister stated the position on the record in the House of Commons yesterday as far as Article 16 is concerned. Obviously, I stand by his words. As for movement of traffic, everybody should feel that they can and must send goods to every part of our kingdom normally. Flows of trucks into Belfast are now normal. There have been issues at Holyhead, but movements there are increasing and we hope to see that trend continue.

UK-EU Withdrawal Agreement

Debate between Lord True and Lord Morrow

Thursday 10th December 2020 Lords Chamber

[Lord True (Con)]

My Lords, the movement of chemicals brings particular complexities, as the noble Lord rightly points out, but the Government are committing an enormous amount of resource to the support of Northern Ireland businesses in terms of the movement of goods. That had already been announced. Indeed, I was criticised by the noble Baroness opposite for the scale of support the Government are giving to Northern Ireland and to business generally in confronting the new regime.

[Lord Morrow (DUP) [V]]

Under Article 8 of the Northern Ireland protocol, Northern Ireland will remain part of the EU VAT regime as well as being subject to the UK VAT rules. In practice, that will increase the amount of debt that businesses in Northern Ireland have to collect, which will in some cases lead to higher payments, with a knock-on effect for the consumer. For those in the second-hand car sales trade, the threat is particularly grave. Cars brought in from GB will now have VAT imposed on the full value rather than on the profits made on the sale. Can the Minister tell us why this disruption to the UK internal market was not prioritised in negotiations and why there is no mention of relief for affected businesses in his Statement? Can he outline what unilateral support the Government will provide to small and medium-sized businesses caught by these damaging rules?

[Lord True (Con)]

My Lords, I repeat the very substantial announcements of financial support for Northern Ireland and Northern Ireland business that I referred to in earlier responses. On VAT, as part of implementing the VAT elements of the Northern Ireland protocol, the UK and the EU Commission have needed to agree how EU VAT rules will apply in the unique circumstances created in Northern Ireland, where traders will continue to be part of both the UK and the EU system. That agreement has been reached and is laid out in the Statement. Further guidance on these topics is being published for traders.

We have heard a concern raised about the application of EU second-hand margin schemes. Obviously, these changes will not affect stock bought in advance of 1 January, even if it is sold later, but we acknowledge that this is not a long-lasting solution to these issues. We aim to minimise disruption for Northern Ireland traders to the extent possible, and we continue to explore options.