United Kingdom Internal Market Bill

Debate between Baroness May of Maidenhead and Robin Walker

Monday 21st September 2020 Commons Chamber

[Mr Walker]

The hon. Gentleman raises some important points. It is for the Secretary of State for Business, Energy and Industrial Strategy to use the powers in the Bill to take further steps in setting out the UK’s state aid policy. As the hon. Gentleman will recognise, the UK also has a policy on free ports, which we absolutely want Northern Ireland to be part of, so perhaps that is for future debates.

Let me be clear: the Government’s position is that EU state aid rules will apply in Northern Ireland as long as the protocol is in place in respect of goods and electricity, as agreed, but we have to give businesses the certainty that they will not face the destabilising prospect of the European Commission applying its state aid rules to companies in Great Britain with no link, or only a trivial link, to Northern Ireland. The power in the Bill allows the Business Secretary to make provision for how article 10 is to be interpreted for domestic purposes.

[Mrs Theresa May (Maidenhead) (Con)]

My hon. Friend has been setting out throughout his speech that the Government want clauses 41 to 45 because of the bad consequences that could come from an interpretation of the withdrawal agreement. If the potential consequences of the withdrawal agreement were so bad, why did the Government sign it?

[Mr Walker]

As my right hon. Friend knows well, the withdrawal agreement was negotiated by the UK and the EU and agreed with a view that certain elements would be resolved by the Joint Committee. I think there was a reasonable expectation on both sides that the Joint Committee would have made more progress on those issues, but unfortunately we have heard some harmful interpretations over the past few months. The point of these Government clauses is to ensure that we can rule those out and put in place the appropriate legal default.