Protocol on Ireland/Northern Ireland (EUC Report)

Lord Dodds of Duncairn Excerpts

Monday 13th September 2021 Grand Committee

[Lord Dodds of Duncairn (DUP)]

My Lords, it is a great pleasure, as a member of the Sub-Committee on the Protocol on Ireland/Northern Ireland, to take part in this debate today, particularly as it is happening physically. This is the first time that I have had the opportunity to speak in Grand Committee in this format. That is not to detract in any way from the excellent work that our staff have done to make our meetings happen virtually and work so well and smoothly in the circumstances, but it is so much better to be able to debate these things in person, in my view. Indeed, for me, it is the first time that I have been able to interact with other members of the committee in this way, so I really welcome that.

I welcome the report and thank both our chair, the noble Lord, Lord Jay, and the noble Earl, Lord Kinnoull, for the work that they have carried out to bring us to this point, as well as our excellent staff, particularly Stuart Stoner. Before I come on to the report, I allude to one aspect of the work of the committee, which is that it also carries out an enormous amount of scrutiny work of legislation, statutory instruments and delegated legislation affecting Northern Ireland. It is just worth putting on record, as the Minister is here, that this is an extremely important part of the committee’s work. Given the lack of any other real role for the Northern Ireland Assembly, the other place or this House in that, it is absolutely essential that we get the widest possible and most generous co-operation from the Government as we carry out our important work.

On the report, I welcome the fact that we have been able to reach a consensus; that is an extremely powerful statement. It was done on the basis that we came to the finalisation of its contents without prejudice to the views that each of us held on the substance of the issue of whether the protocol was a good idea or not. We looked at the factual situation and what could be done so long as the protocol exists. There is a fundamental division, nevertheless, as is reflected in Northern Ireland, on the suitability of the protocol as a matter of principle. There is no shying away from that. My noble friend Lord Caine has gone into some of the background and history and has most helpfully put on the record some of the narrative of what happened in the lead-up to the events of January 2017 and some events since.

The issues at stake in Northern Ireland in terms of trade, sovereignty, the democratic deficit and political stability affect everyone and not just the unionist community. Diversion of trade, obstacles to access to goods at a reasonable price—and to the same range of goods as previously—access to medicines and access to a whole range of manufactured goods for businesses and consumers are issues that affect everyone and not just unionists. It is vital therefore that we address them in the interests of everyone in Northern Ireland.

On the trade aspect, which is looked at mainly in the first report, we have found quite significant disruption. There is no doubt that many firms based in Great Britain, even where there is no technical reason why they cannot bring goods from Britain into Northern Ireland, have just given up on the grounds that it is too much hassle and too much work to get their heads around the processes. It is staggering that, between them, the trader support scheme, the digital assistance scheme, the veterinary arrangements and all the other checks amount to some £560 million of public expenditure. At a time when we are talking about other pressures on public expenditure and the need to introduce measures of taxation to plug the gaps, these are enormous sums of money being spent on administrative schemes that do not produce a single contribution in any shape or form to our economy and our productivity. It is pure bureaucracy.

We have the issue of the diversion of trade. There is reference to increased trade between Northern Ireland and the Irish Republic. I urge noble Lords to look at the recent comments of Esmond Birnie, an economist at Ulster University, who says that that needs to be looked at carefully, because it is not necessarily the advantage that people talk about but adds to the costs of business. If it had been advantageous for Northern Ireland businesses to bring goods in through the Irish Republic, they would have been doing it before now, because they are businesspeople and it would have been easier to do so. It must be an added cost.

We have heard it argued that we have the best of both worlds. Yes, one can send goods into the single market of the European Union without checks and restrictions, but one has to be able to get the raw materials and so on into Northern Ireland, mainly from Britain. If we have that problem, the advantages of getting things into the single market are not what they appear at first sight.

So this trade and economic aspect to the protocol is immensely concerning and causing enormous problems. Esmond Birnie has referred to an £850 million per annum detriment to Northern Ireland, which I am sure the committee will want to look at in more detail in future deliberations. However, it is not just the trade aspect; we also have the issue of sovereignty, which other noble Lords have referred to, and the serious issue of the Government’s admission that they have altered the Act of Union 1800 to accommodate the protocol, which is a direct admission that the sovereignty of Northern Ireland and of the United Kingdom has been impacted significantly by the protocol. That cannot be dismissed lightly. The direct application of laws of a foreign jurisdiction on a part of the United Kingdom without any say whatever by anyone in the legislature in Belfast or here at Westminster is quite simply in this day and age totally and utterly unacceptable. The issue of taxation without representation led to cataclysmic and far-reaching consequences previously and it will lead to far-reaching consequences if it is not addressed in the Government’s approach going forward.

Then we have the effect on stability in Northern Ireland, and the Belfast agreement, the St Andrews agreement and subsequent ones. You cannot have a situation where people are saying, as Vice-President Šefčovič was, that the protocol is there to protect the Belfast agreement and is the only way to do so, when in fact the result of its application—without the consent of anyone in Northern Ireland—is to undermine all those agreements and to cause the sort of instability we now see being played out in Belfast. It will have an inevitable consequence. A noble Lord referred earlier to the fact that, if the institutions come down, it will take a long time—as we have found from bitter experience—to get them restored again, and it would be very difficult to suggest how quickly this might occur if it were to happen in this situation.

The Government have produced their Command Paper. I welcome the narrative in it and the very strong commitments made to look at renegotiating Article 13(8) and the principles they have outlined, but I say to the Government that there is urgency to this. Do not forget that on 29 January—this has not been mentioned thus far—the European Union took steps, though thankfully withdrawing from the ultimate step, to instigate and trigger Article 16, undermining at a stroke the whole rationale of the Northern Ireland protocol. That caused enormous impact, not just for the unionist community but throughout Northern Ireland. We are still feeling its reverberations.

When he responds, I urge the Minister to clarify that he notes the urgency of this matter and to give a timescale in which he can come forward with some idea to replace our current arrangements.

Northern Ireland Protocol

Lord Dodds of Duncairn Excerpts

Wednesday 21st July 2021 Lords Chamber

[Lord Frost (Con)]

I very much agree with the thrust of my noble friend’s comments. The impact of the protocol on everyday lives in Northern Ireland is a significant part of the difficulty. Again, if one looks at the comments from the chair of Marks & Spencer, we see the risks to everyday life; for example, the risk of not being able to deliver supplies for Christmas under the current arrangements. I do not think that is what either the European Union or we actually want in this situation, and if we can focus on the practicalities and the reality of the situation and try to find a way through, we will all be the better for it.

[Lord Dodds of Duncairn (DUP)]

My Lords, clearly the Northern Ireland protocol is not fit for purpose; it is not working or delivering for Northern Ireland. Any noble Lord who visits Northern Ireland and talks to people will know that immediately, and the Minister has done that frequently. Whatever the benefits, they are massively outweighed by the disadvantages—economic, societal and political. Can the Minister assure me that at the end of this process of renegotiation, or if direct action may be necessary by the Government, we will end up in a position where the new balance of arrangements will restore Northern Ireland to its proper place, with no Irish Sea border and with elected representatives of the people of Northern Ireland, either here or in the Assembly, having the final say over the laws that govern Northern Ireland?

[Lord Frost (Con)]

My Lords, it is clear that the balance we have in the protocol is not working at the moment, and I have explained why on many occasions. The issue raised by the noble Lord is one reason why we think changes to the governance arrangements in this protocol are so important. It simply does not fit with the reality of the situation to have laws imposed and policed by institutions outside the UK territory and subject to the judgments of courts that are not courts of the UK. If we can agree that—I recognise that it is a significant point—I think we will find some of the problems raised by the noble Lord beginning to melt away.

Ireland/Northern Ireland Protocol

Lord Dodds of Duncairn Excerpts

Thursday 15th July 2021 Lords Chamber

[Lord Frost (Con)]

My Lords, I do not think that was highly charged language; I think it was an accurate description of the situation when we received a communication containing 600 to 800 pieces of legislation and pages. That is a significant event. New legislation not within scope of the protocol is obviously covered in a different way; this is obviously legislation that is within scope. Technical amendments can of course be quite significant, and the task of assessing that and ensuring that we understand the statute book in Northern Ireland is significant. That is why we should like more warning, more process and more discussion of this matter.

[Lord Dodds of Duncairn (DUP)]

Can my noble friend confirm that the overall balance of benefits and disadvantages of the protocol is tilted against Northern Ireland at present, given that Northern Ireland trades more with the rest of the United Kingdom than with the Republic of Ireland, the rest of the world and the European Union put together, a phenomenal statistic that should always be borne in mind? Does he agree that firm action needs to be taken to deal not only with that trade imbalance but the societal and political instability which also need to be taken into account when one assesses the benefits and disadvantages of the protocol?

[Lord Frost (Con)]

My Lords, the noble Lord makes a very good point. The balance of advantages and benefits in the protocol is not solely economic, although the economic links are clearly very strong with Great Britain. They are to do with society, politics and the sense of identity, which, it seems, has been undermined in places by the operation of the protocol. It is reasonable to take that into account in our overall assessment. Diversion of trade, societal disturbances and so on are obviously very important factors when we come to consider what action is necessary in this matter.

UK Government Union Capability

Lord Dodds of Duncairn Excerpts

Thursday 1st July 2021 Lords Chamber

[Lord Dodds of Duncairn (DUP) [V]]

My Lords, I thank the noble Lord, Lord Dunlop, for his report. I too regret the delay in its publication. There are many positives in it, and I admire and applaud—

[Baroness Scott of Bybrook (Con)]

I am afraid we cannot hear the noble Lord. I suggest we move on.

--- Later in debate ---

[Lord Dodds of Duncairn (DUP) [V]]

My Lords, I am very grateful, and I want to put on record my thanks to the noble Lord, Lord Dunlop, for his report. I regret that it has taken so long to have it published. There are many positives in the noble Lord’s review. I particularly admire the desire to embed union thinking and the machinery of government at the heart of UK government policy, development and decision-making, as well as the desire, which we should all have, to achieve the best possible collaboration and working arrangements between the UK Government and our devolved Administrations.

However, as far as Northern Ireland is concerned, their laudable aims and objectives are at complete variance, first with the adoption and implementation of the Northern Ireland protocol and secondly with the continuing and repeated lack of respect for the Northern Ireland Assembly’s areas of competence. We had another example of that from the Secretary of State for Northern Ireland just a few days ago. This approach has led to the destabilisation of politics and the political institutions themselves in Northern Ireland and, if not corrected, will lead to dire political consequences which I urge the Government to act swiftly on to avoid.

If a key objective of the report is to

“strengthen the working of the Union”,

how on earth can that be squared with the judgment of the High Court in Belfast yesterday, where the court found that the Government, through the European Union (Withdrawal) Act had repealed key parts of the Act of Union itself in signing up to arrangements which create an Irish Sea border? Likewise, the Belfast agreement has been breached as far as protection of the third strand of relationships, namely the east-west dimension.

Large swathes of laws for the economy can now be made without any vote in Stormont or Westminster; there is taxation without representation in a part of the United Kingdom. If we are to strengthen the union, I strongly urge the Government to take steps to replace and remedy that which is currently undermining and actively destroying the union.

UK and EU Relations

Lord Dodds of Duncairn Excerpts

Thursday 24th June 2021 Lords Chamber

[Lord Frost (Con)]

My Lords, as I mentioned, the governance mechanisms of the trade and co-operation agreement are now operational. The specialised committees will meet in the weeks and months to come. As this process gets going and the teams get into contact and discuss the issues, I am sure that matters at this level of detail will improve. The best way of improving the level of trust between us would be to engage in a pragmatic negotiation on the Northern Ireland protocol. If we can find solutions there, I am sure that things will greatly improve.

[Lord Dodds of Duncairn (DUP)]

My Lords, if everyone is serious about adhering to the Belfast agreement as amended by the St Andrews agreement, we must all agree that it fails the test of cross-community support in Northern Ireland. It undermines the three-stranded approach to the east-west relationship and the constitutional settlement as far as the Assembly is concerned. In bringing forward solutions, which are urgently needed as we approach the summer, does the Minister agree that, as well as the trade friction, the constitutional and democratic flaws at the heart of the protocol need to be addressed?

[Lord Frost (Con)]

My Lords, when one observes the situation in Northern Ireland, there is a clear sense in one community that ties with the rest of the UK risk being weakened. That has the political consequences with which we are very familiar. The situation needs to be dealt with. Consent is extremely important. We recognise the issues of democratic accountability, which is why—unusually—we built arrangements for consent into the protocol. The whole protocol depends on consent. If there are clear doubts about it in either community, in practice it will be very difficult to operate, which is why it is so important to come together to find pragmatic solutions.

Finance Bill

Lord Dodds of Duncairn Excerpts

2nd reading & Committee negatived & 3rd reading
Tuesday 8th June 2021 Lords Chamber

[Lord Dodds of Duncairn (DUP)]

My Lords, we understand the difficult job the Chancellor has had of bringing forward this year’s Budget in the unprecedented circumstances in which this nation finds itself. The immediate priority, looking at the economy, must be ensuring that we come out of this pandemic with as many safeguarded jobs and livelihoods as possible. The economic packages, especially the furlough scheme and the help for the self-employed, have been incredible interventions, which have helped stave off the worst ravages of economic depression that may otherwise have occurred. I congratulate the Government, as we all do, on the incredible investment in the vaccine rollout, which has produced stupendous results.

Once again, the benefits of being part of one of the biggest economies in the world has been illustrated for all our citizens through all parts of the United Kingdom. I have to say that I have been reassured somewhat in recent weeks by the feedback from people normally critical of the United Kingdom—even of being part of the United Kingdom—about the way in which this country has responded, with the vaccine rollout in particular but also throughout this pandemic with the economic interventions.

The Chancellor is having to balance the need for immediate actions to counter imminent economic shocks against long-term economic recovery and mounting levels of eye-watering debt. So far, I believe that, generally speaking, the Government’s approach has been the correct one. Some of the measures, which normally no one would ever contemplate, have been necessary to avoid far worse problems. That is not to say that there are not issues that need to be addressed and addressed quickly, and I want to refer to a number of general points before making a specific reference to a particular, discrete issue affecting electricity generation in Northern Ireland.

The hospitality and tourism industries, which the Minister referred to in terms of the VAT relief, have been decimated by the pandemic and the lockdowns. I welcome what the Government have announced in relation to VAT for these sectors—the extension of rate cuts until September and tapering measures until March next year—but it is vital that these sectors are allowed to get back to full working capacity as quickly as possible. They can survive only by full reopening and full working, and I hope that that will happen as quickly as possible—if not on 21 June then as quickly as possible thereafter, conscious of the need to take all necessary health precautions.

I also want to mention the issue of air passenger duty. We have some of the highest rates anywhere in the world. Peripheral parts of the United Kingdom are very dependent on air connectivity. Rail options do not exist for places such as Northern Ireland to reach other places in the United Kingdom. I ask the Government to keep under review measures that will alleviate the burden on businesses and families of air passenger duty on internal United Kingdom flights.

It would be impossible to participate in a debate like this and not make reference to the burdens that are being placed on the Northern Ireland economy and Northern Ireland businesses, and our communities more generally, by the Northern Ireland protocol. I am disappointed that there is little, apart from provisions in relation to the steel industry, that will alleviate those burdens, particularly in relation to customs requirements.

However, I do look forward to the Government introducing two new measures—in the near future, I hope—that will address the underlying problems of the protocol and do away with the incredible situation whereby, if the grace periods that are currently in force are not extended or a permanent solution not found, as many if not more checks will be done on foodstuffs and other materials coming from Great Britain to Northern Ireland as are done on those entering the entirety of the European Union from the rest of the world. That is an amazing, incredible and scandalous situation which must be remedied by the Government. I hope that those measures will be comprehensive and far-reaching.

I want to turn to the aspect of the Bill I mentioned and explore it in more detail. I believe it is something that perhaps is an unintended consequence of what is otherwise a reasonable provision: it is do with the prohibition on power plants putting rebated fuel—red diesel—through electricity generators after 1 April 2022. I fully understand, and electricity generators also appreciate, the policy objective of helping meet climate change and air quality targets by removing the tax advantage of red diesel, thus encouraging end-users to use more expensive white diesel, which is taxed at a rate that reflects the impact of the emissions that they produce.

However, the Bill will have a particular, unique and unintended detrimental consequence for electricity generators in Northern Ireland. Kilroot and Ballylumford power stations in Northern Ireland have a historical licence obligation to maintain stocks of red diesel as part of the Northern Ireland Fuel Security Code obligations. The licensing obligation for Northern Ireland electricity generators requires back-up fuel—red diesel—to be held for security of power supply purposes in the event of gas supply interruption. The Bill requires the disposal of all existing red diesel stocks before 1 April 2022. There is in fact major uncertainty about whether that timetable could be met. There will be significant additional costs of doing this to both Ballylumford and Kilroot, estimated at £14 million for one and £1.6 million for the other. That includes all the logistical problems as well as the replacement of the fuel itself.

There is, however, a major competitive commercial disadvantage for Northern Ireland power generators vis-à-vis others within the competitive integrated single market and vis-à-vis the Great Britain market. There is no equivalent requirement to hold reserves of what the Irish equivalent of red diesel is in the Irish Republic, and the requirement to hold back-up fuel is applicable only to Northern Ireland power generators and does not apply to gas-fired power generators in Great Britain. One of the perverse impacts of the requirement of the provision in the legislation, if it is not remedied, is that it will lead to additional and higher CO₂ emissions in Northern Ireland that would otherwise be avoided: having to use up the fuel in generating electricity will cause much greater emissions. It will be costly for the consumer; the extra cost is estimated at £60 million based on commodity prices, as of 1 May 2021. Then there is the risk of security of supply for Northern Ireland in the period between getting rid of one fuel and replacing it.

I welcome discussions which have taken place between power generators, Ministers and officials in Her Majesty’s Treasury. It is vital that the Bill’s unintended consequences are addressed. I understand that progress has been made, but I would like the Minister, in responding to the debate, to put on the record how he understands the way forward. Will he confirm that HM Treasury is looking at fixing this problem, that guidance will be issued relating to the Bill or that there will be secondary legislation to address the issue? Could he confirm that there will not be a requirement placed on Northern Ireland power generators to rid themselves of existing stocks of reserved fuels by the prescribed date, with all the detrimental impacts that I have outlined? I hope the Minister will be in a position to respond positively, because this would be good news for the plants themselves, for consumers and for the environment.

Protocol on Ireland/Northern Ireland

Lord Dodds of Duncairn Excerpts

Thursday 27th May 2021 Lords Chamber

Asked by

[Lord Dodds of Duncairn]

To ask the Minister of State at the Cabinet Office (Lord Frost) what steps Her Majesty’s Government will take to prevent any negative impact on Northern Ireland from the Protocol on Ireland/Northern Ireland.

[The Minister of State, Cabinet Office (Lord Frost) (Con)]

My Lords, as I have set out on many occasions, it is clear that the protocol is presenting significant challenges for many in Northern Ireland and across the whole of the UK. Solutions must be found urgently to address these. We remain committed to working through the issues with the EU, and we hope that it will show common sense and take a pragmatic risk-based approach to the problems. We continue to consider all our options in meeting our responsibility, which is also the purpose of the protocol, to protect the Belfast/Good Friday agreement and the peace process.

[Lord Dodds of Duncairn (DUP)]

I thank the Minister for his Answer. In the protocol court case that is being taken in Belfast, the Government have argued, astoundingly, that parts of the Act of Union itself have been impliedly repealed by the protocol. That is an incredible position for a Conservative and Unionist Government to find themselves in. Does the Minister accept that, as well as the serious economic difficulties and diversion of trade being caused by the protocol, this assertion of constitutional vandalism will add immensely to the serious societal difficulties in Northern Ireland, one expression of which is the almost nightly occurrence of peaceful protests in Northern Ireland, which are largely unreported but reflect a widespread dismay at the unbalanced approach to the political and peace process? The Minister talked about solutions. Can he indicate a timetable for solutions that reflects the urgency and gravity of the situation?

[Lord Frost (Con)]

My Lords, obviously I am not able to comment on the specifics of litigation while it is ongoing. I point out that the protocol itself is clear that it is without prejudice and has no effect on the territorial integrity of the UK or its essential state functions. That is a very important element of the protocol.

We understand the dismay and concern about identity that is provoked by the way the protocol is currently being implemented, and we are attempting to respond to that as a matter of urgency. There are a number of timetables in parallel here: the negotiating process, the grace periods themselves and the political timetable in Northern Ireland must all be kept in step if we are to find solutions to these issues.

Northern Ireland and Great Britain: Trade

Lord Dodds of Duncairn Excerpts

Thursday 25th March 2021 Lords Chamber

[Lord Frost (Con)]

My Lords, the people of Northern Ireland must of course have access to a wide availability of medicines and pharmaceutical products, just as in any other part of the UK. There is, of course, a grace period in place until the end of this year for the protocol provisions. We have proposed, as is known to the EU, that this should be extended by a further year. We continue to discuss this matter.

[Lord Dodds of Duncairn (DUP)]

My Lords, given that the protocol prevents the flow of free trade within the United Kingdom internal market and stops any elected representative, either at Stormont or here at Westminster, having any say or vote on laws which govern a large degree of the economy of Northern Ireland, does my noble friend agree that these matters must be addressed and corrected at the earliest opportunity; that we as a sovereign, independent country must ensure that the people of Northern Ireland are treated in the same way as people elsewhere in the United Kingdom; and that we have to do this to ensure that we have a stable future for devolution and a balanced and proper implementation of the agreements, not a one-sided interpretation and implementation of them?

[Lord Frost (Con)]

My Lords, the noble Lord is absolutely correct to say that the future of the protocol depends on the consent of the elected representatives and the people of Northern Ireland. If that consent is not maintained, it is difficult to see how the protocol can be genuinely durable. All sides must work to sustain it. The EU needs to be aware of the impact its decisions have had on the ground in Northern Ireland in recent months, and continue to work to implement the protocol in a pragmatic and proportionate fashion.

People with Disabilities Standing for Elected Office

Lord Dodds of Duncairn Excerpts

Monday 22nd March 2021 Lords Chamber

[Lord Dodds of Duncairn (DUP) [V]]

My Lords, as the Government prepare their national strategy for disabled people, does the Minister accept that more must be done to facilitate disabled people, who face enormous challenges in seeking elected office? Will this issue be included in the strategy? Is it not time to consider reinstating some kind of financial support, given the staggeringly low number, proportionately, of disabled people in elected office in this country?

[Lord True (Con)]

My noble friend makes an important point on which all parties would, I hope, unite. The reality is that the law regarding electoral expenses, permissible donors and grant-making is complex, and therefore the funding model has always been to contract with other organisations to deliver funding to political candidates. But I note what my noble friend says.

Budget Statement

Lord Dodds of Duncairn Excerpts

Friday 12th March 2021 Lords Chamber

[Lord Dodds of Duncairn (DUP) [V]]

My Lords, I extend my sincere congratulations to all noble Lords making their maiden speech in today’s debate, and I wish them well for the future.

I welcome the decision to extend the 5% VAT rate for the hospitality industry to maintain the £20 uplift on universal credit, although it could be for longer, which would give more certainty. This and the decision to freeze fuel duty are in line with representations made by us to government, and I welcome them. I understand the need for the Chancellor to look at revenue raising, but I think that to freeze tax thresholds for such a lengthy period is not a good idea: taxation by stealth in this way means many more people paying much more tax in the long run.

At the time of the Budget, I regretted—I still do—that there was no mention of air passenger duty reduction, which is so critical to the very damaged aviation industry. It inflicts disproportionate harm on more peripheral areas of the United Kingdom, such as Northern Ireland, which are so dependent on air travel. Since then, the very welcome Union Connectivity Review has been published, and I look forward to progress in this area as soon as possible. I also look forward to progress in getting some of the digital tech giants to pay their fair share of tax in the United Kingdom—and to a fair and better settlement on NHS pay.

The last year has once again proved the benefit of being part of the fifth-largest economy in the world, with unprecedented support on a vast scale for jobs and industry. I congratulate the Government on the speedy rollout of the vaccines across the whole of the United Kingdom.

Of course, to make true economic progress in Northern Ireland, the Government must act quickly to undo the damage being done by restrictions in trade between Great Britain and Northern Ireland through the Northern Ireland protocol. I welcome recent decisions by the Government on behalf of all consumers, businesses and peoples in all communities in Northern Ireland. We must go further to ensure that unrestricted trade in the UK internal market is maintained and continued.