Construction Products (Amendment etc.) (EU Exit) Regulations 2019

Lord Young of Cookham Excerpts

Wednesday 13th February 2019 Grand Committee

[Lord Adonis]

My Lords, I wish to make the point that it is totally unsatisfactory that we should be debating these no-deal regulations at the same time as the House is debating Brexit.

[Lord Young of Cookham (Con)]

Order!

[Lord Bourne of Aberystwyth]

My Lords, these regulations were laid before both Houses on 18 December 2018. They are part of the Government’s programme of legislation to ensure that if the UK leaves the EU without a deal or an implementation period, there continues to be a functioning statute book. Securing a deal with the EU remains the Government’s top priority, but it is appropriate to accelerate no-deal preparations to ensure that the country is prepared for every eventuality. This is the responsible thing to do. To confirm, the regulations would come into force in March only in the event that there is no deal and no implementation period. They are made using powers in the European Union (Withdrawal) Act 2018 to fix legal deficiencies in retained EU law. They are needed to reflect that the UK will no longer be an EU member state after exit day.

I trust noble Lords will allow me to provide a brief overview of how the regime works at present. The Construction Products Regulation—the CPR—is directly applicable in all EU member states. It seeks to remove technical barriers to the trade of construction products. It does this by harmonising the methods of assessment and testing, the means of declaring the performance, and the system of conformity assessment of construction products. Through this, the CPR seeks to ensure that reliable information is available to professionals, public authorities, and consumers, so that they can compare the performance of products from different manufacturers. I should make it clear that the CPR does not harmonise national building regulations across the EU. Individual member states remain responsible for safety, environmental, energy and other requirements applicable to construction works. The CPR applies UK-wide, and the devolved Administrations have been kept informed throughout the process of developing this approach and are content with it.

Moving on to how the CPR works in practice, where a harmonised standard has been adopted, the CPR places obligations on manufacturers, distributors and importers of that product. This includes that the product must have a declaration of performance and be CE-marked—that is, marked with the letters “CE”. The CPR will form part of the UK’s legal system as retained EU law when we leave the European Union. Without the amendments made by the regulations, the requirements of the CPR would cease to apply in the United Kingdom.

The general policy is to keep the same requirements but to convert them into a UK regime. This instrument will ensure that the same standards apply immediately after exit day as applied immediately before the UK left the EU. The key requirements of the regime will not change. The effect of these regulations can be considered in five parts.

First, on standards, existing European product standards will be preserved in the UK. Immediately following exit day, the same requirements will apply as were in place the day before. The standards that businesses must meet will therefore be unchanged. Thereafter, new UK standards will be designated by the Secretary of State. Standards have their own review cycles, typically of five years. The consideration of new standards will be supported by expert advice from the British Standards Institution and consultation with wider industry. Those standards are now, and will continue to be, mandatory.

The second area is about conformity assessment and the new UK mark. This element relates to where third-party conformity assessment is required. Existing UK conformity assessment bodies will be granted the new status of UK-approved bodies under these regulations. Where a UK-approved body undertakes the third-party conformity assessment required under the relevant UK standard, the product must be affixed with the new UK mark. The UK mark is being established under separate legislation and details of the new mark were published by the Department for Business, Energy and Industrial Strategy at the start of this month.

The third area is the continuity approach. Alongside the domestic arrangements I have just outlined, for an initial period after exit day we will continue to accept products that comply with the European CPR regime. This will mean that products which meet requirements under the European CPR can continue to be placed on the UK market without the need for re-testing or additional marking. As I have mentioned, all European and UK standards will be the same immediately after we leave the European Union. This approach is necessary to ensure that goods continue to have access to the United Kingdom market, and to help minimise disruption for businesses and consumers.

The intention is that these arrangements will be time-limited. We will ensure that businesses are given sufficient notice in advance of this period coming to an end. I can confirm, however, that ending the recognition of CE-marked products would require further legislation by affirmative resolution. Such legislation would be preceded by a period of consultation with industry.

The fourth and penultimate area concerns technical assessment where product marking is not compulsory. This relates to products not covered by a mandatory UK-designated standard. In some instances, it is helpful to the manufacturer to affix a marking to these products, although there is no legal requirement to do so. Therefore, in the same way as is the case under the current regime, there will be an optional route available to enable products to be UK-marked. That will continue.

Fifthly, these regulations give the Secretary of State powers to make regulations to enable the UK to make technical updates to the CPR framework. This is simply a case of the functions currently resting with the European Commission passing to the United Kingdom. These functions enable the Commission to make delegated and implementing Acts limited to specific areas, as set out in the CPR. We are making no changes to the scope of these powers. To be clear, this is simply a case of the existing functions passing from the EU to the UK. This is necessary to ensure that the UK’s CPR regime can respond to technical progress and new or emerging issues. Parliament will be able to scrutinise any new measures and this provides a similar level of oversight as exists under the EU’s regime currently.

I also note that these regulations make a number of technical fixes to correct deficiencies in the market surveillance regime arising from EU exit. This regime is provided for under domestic legislation. These technical amendments will ensure that the enforcement regime can continue to work in the same way as now.

At this point, I confirm that the UK’s ability to take action against products that do not comply with their declared performance—or are illegally on the market—is unaffected by these regulations.

To summarise, I hope the Committee agrees that these regulations are necessary. They serve a specific purpose: to ensure continuity of the regime in the event of a no-deal scenario, providing certainty if the UK leaves the EU without a deal or an implementation period. I stress that this is not the Government’s intended outcome. These draft regulations have been considered by both the Secondary Legislation Scrutiny Committee and the Joint Committee on Statutory Instruments; no concerns were raised by either.

To conclude, this instrument is necessary to ensure that the Construction Products Regulation continues to function appropriately if the UK leaves the EU without a deal or implementation period. I hope noble Lords will join me in supporting the draft regulations. I beg to move.