Product Regulation and Metrology Bill [ Lords ] (First sitting) Debate

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Department: Department for Business and Trade
Those are the reasons why we tabled the amendments in this group. I am sure that all Committee members will warmly support them.
Aphra Brandreth Portrait Aphra Brandreth (Chester South and Eddisbury) (Con)
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I want to make a few brief points in support of the Opposition amendments. Taken together, they serve a simple but essential purpose: they seek to ensure that the powers granted under the Bill are used transparently, responsibly and with full parliamentary oversight. Let me be clear: this is not about rehashing the debates of the past. It is about making sure that future decisions, especially those that could have profound consequences for British industry, trade and product standards, are subject to democratic scrutiny.

As it stands, the Bill gives sweeping discretion to Ministers to align domestic product regulations with European law. As my hon. Friend the Member for West Worcestershire said, it enables the potential for dynamic alignment, which the impact assessment essentially spells out as the aim, without any binding requirement for parliamentary approval, debate or even explanation. Amendment 5 would change that by requiring the Secretary of State to explain the rationale for alignment and seek Parliament’s consent before any such decision takes effect. This is not obstructionism; it is good governance.

As has been noted, the Bill also risks undoing the progress made by the previous Government in removing excessive red tape and regaining regulatory autonomy. Through sovereign decision making the UK has created trading opportunities on the world stage. That is why amendments 3 and 4, to remove automatic mechanisms to treat compliance with EU rules as equivalent to UK compliance by default and without justification, are vital. This is not about rejecting co-operation where it is in our interest; it is about avoiding automatic alignment without accountability.

As was raised in the other place, the powers are not just technical; they are significant policy decisions that deserve primary legislation. The democratic will of the British people, expressed in the referendum when we decided to leave the European Union and in elections since, was to restore British sovereignty. It is only right that no authority based outside the UK, whether it be the European Commission or the Court of Justice of the European Union, can unilaterally shape the enforcement or interpretation of our rules.

Amendment 21, in particular, would ensure that any EU-derived product standards must first be brought into UK law by regulation before they can be treated as equivalent. That would both protect sovereignty and provide certainty. Ultimately, there must be proper scrutiny, and if Ministers are confident in their decisions, they should have no concern about being asked to report back to Parliament on any regulations aligning with EU law and to ask Parliament to approve their continuation. That would enable proper oversight while guarding against regulatory drift.

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Alison Griffiths Portrait Alison Griffiths
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My right hon. Friend makes a very important point. The future of successful economic growth is dependent on not just new industries, but ensuring that traditional industries, and both large and small businesses, can thrive and prosper in a post-Brexit scenario.

Amendment 17 would align the Bill with the pro-growth agenda and send a clear message to investors and innovators: Britain is open for business.

Aphra Brandreth Portrait Aphra Brandreth
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I will speak very briefly on amendment 17. The watchword of this Government has been, supposedly, growth. That is supposed to be the driving force behind legislation and policy, yet they have clearly introduced measures that have done nothing to support growth, and the Bill risks being another stumbling block to continuing the path of recovery—a recovery that the Government actually inherited, with the UK the fastest-growing economy in the G7.

The Opposition have sought to constructively improve the Bill through the amendment, which would ensure that the Government focus on growth. These are sensible and important provisions to promote investment and to foster innovation.

I am sure that Labour Members want to encourage economic growth. Supporting businesses is the way to do that. Empowering them—rather than prohibiting them with regulation and red tape from Brussels—should be central to achieving growth. There are huge opportunities and markets out there for the UK to seize. We must ensure that trade and national policy are as one, supporting job creation, innovation and competition. We need clarity and assurance from the Government that they understand the potential impact of dynamic alignment and the damage that that could do to the economy.

When have legally binding powers achieved growth? When has ambiguity in what businesses should expect and in their operating conditions delivered growth? The truth is that it does not. Businesses need clarity and confidence, and this skeleton Bill does not deliver that. If Labour Members really want—as they say they do—to see growth, I am sure they will want to support the amendment. As my hon. Friend the Member for West Worcestershire pointed out, the Government’s actions so far have seen GDP per capita shrinking and business confidence plummeting.

Richard Holden Portrait Mr Holden
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The Bill makes it clear that the Government are keen on dynamic alignment with the European Union wherever possible. That is why the amendment is so important, because it points to what the Government should be doing. Rather than aligning with the European Union and tacking behind it on every issue, the amendment pushes for growth in this country, to deliver jobs for people in my hon. Friend’s constituency and mine. My hon. Friend the Member for West Worcestershire mentioned our need to embrace the business of the future, but we must also look to where we can drive forward areas that have been particularly left behind in recent years with traditional industries and sectors.

None Portrait The Chair
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Order. Interventions should be pithy.

Aphra Brandreth Portrait Aphra Brandreth
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I thank my right hon. Friend for that important intervention. Dynamic alignment will see us give away control to the European Union, meaning that we cannot focus on growth in a way that will rightly and importantly improve growth for UK businesses across the whole of the UK. I represent Chester South and Eddisbury, a seat in the north-west of England, and we need to ensure that we see growth across the whole United Kingdom. The amendment, importantly, would ensure that we focus on that. More than ever, we must not stifle growth.

Alison Griffiths Portrait Alison Griffiths
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Perhaps my hon. Friend was about to make this point, but does she agree that the amendment would give the Government the opportunity to demonstrate to the world their commitment to and understanding of innovation agility, and the necessity to ensure that not just at Government level, but right across Whitehall, all our legislation considers how we can improve growth, innovation and ingenuity at all times?

None Portrait The Chair
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That was slightly pithier.

Aphra Brandreth Portrait Aphra Brandreth
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I thank my hon. Friend for that clear and important intervention. She is absolutely right: this is an opportunity to create incentives for growth and to position the UK as a global leader in innovation. We all know that we must continue to innovate. We want the UK to be at the forefront for so many possible emerging markets. We must do everything we can to support that. I urge Members to support the amendment.

Justin Madders Portrait Justin Madders
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Economic growth is, as we are all aware, the No. 1 mission of the Government. The Bill will support growth by giving the Government the flexibility to ensure that regulations are tailored to the needs of the UK and can respond to global developments. It will ensure that regulations work effectively for businesses and consumers, and will continue to do so in future. We will empower businesses to have the certainty that they can invest and innovate.

I have to take issue with what my Cheshire neighbour, the hon. Member for Chester South and Eddisbury, said: the Bill does not mean dynamic alignment and we have been clear on that. Some of the doom and gloom from Opposition Members about the state of the economy fails to recognise that it grew by 0.5% in February, and that we are currently second in the G7 countries in terms of growth predicted for this year. There are some positive aspects on the economy.

In terms of innovation, we of course now have the Regulatory Innovation Office under the auspices of Lord Vallance, who I think is doing some excellent work, particularly in the areas of AI. In terms of the shadow Minister’s references to AI, AI will become relevant in this particular Bill only when it is actually manifested in a tangible product. I understand that fridges are a good example of where AI and tangible consumer products actually come into play. I am not quite sure how that works in practice, as my fridge does not talk to me, but I believe that some do, and are quite smart at working out when someone has run out of products.