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

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Department: Department for Business and Trade
Harriett Baldwin Portrait Dame Harriett Baldwin
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It is a huge pleasure to serve under your chairmanship, Ms Vaz. We start by discussing some of the amendments we have tabled to clause 2. In this morning’s sitting we had a thorough discussion of the issues relating to clause 1, and we also discussed some amendments to clause 2. I hope, Ms Vaz, that you will allow the Committee to consider each measure separately.

Essentially, amendments 20, 6 and 22 would allow for product regulations to be defined by relation to the laws of a wide range of foreign countries rather than just the European Union. Although we have an incredibly important and valuable trading relationship with our friends and neighbours in the European Union, and a very good zero-tariff, zero-quota trade agreement with them, we also have a range of agreements with other countries that facilitate the international trade of products.

Amendment 20 would expand the scope of the powers that the Committee agreed to give to the Secretary of State under clause 1 to cover foreign countries with which we have a close trading relationship. For example, we have a close trading relationship with the United States; indeed, we are each other’s single biggest investor and it is the biggest single country with which we have a trading relationship. We would like to see the Bill enable a discussion whereby we liberalise trade between our countries but also mutually recognise product regulation.

We also have a significant trade agreement, the comprehensive and progressive agreement for trans-Pacific partnership, which covers our great trading relationship with friends as far away geographically but as close emotionally as those in Australia and other countries around the Pacific. I am sure that Australia has a system to mutually recognise product safety regimes in important trade agreements, to allow global trade with the confidence that high-quality products are reaching the marketplace.

There is absolutely no reason for the Government to oppose the amendments, unless they truly are uniquely fixated on the EU as a product regulator. Any argument for permitting EU standards should also be one for permitting safe international standards from our other partners. That is unless the actual purpose of the Bill is solely to enable dynamic EU alignment—indeed, EU alignment is mentioned clearly in the impact assessment—while preventing alternatives that could benefit British businesses and, importantly, British consumers, who are our constituents. If the Government do not intend to dynamically align us with the European Union on product regulation, they have every reason to accept amendment 20 and make that clear.

Amendment 6 would add to clause 2 new subsection (7A), which says:

“Any regulations under subsection (7) which specify a relevant foreign law must specify that the foreign law referred to is that which is in application on a particular date, which must be specified.”

That would prevent the Bill from enabling ambulatory references or dynamic alignment to relevant foreign laws, and would enable alignment with laws only as they stand on the particular date the Secretary of State decides to use his copious powers under clause 1. That would mean that if regulation changes, Ministers would rightly have to look again and decide whether to maintain alignment.

It is right that we do not give a blank cheque to the EU—or, if amendment 20 is accepted, to foreign countries—by allowing them to diverge on regulations while British businesses and consumers get taken along for the ride. We should be making our own laws that prioritise growth and innovation and that champion businesses here in the UK, thereby giving them the ability to set the standard and the bar and to thrive on the global stage. Only we in this Parliament should be in charge of those decisions; foreign courts should not opine on them. Amendment 6 would allow for flexibility if foreign laws changed, which would allow for a reassessment of their compatibility with the UK market.

Amendment 22 would require the Secretary of State to justify decisions through an explanatory statement, to limit any reference to the laws of one specific territory and prevent the provision of regulations for dynamic alignment to relevant foreign laws.

By tabling these helpful amendments, we have given the Government a golden opportunity to show that they are not using this Trojan horse Bill to covertly, and without the express will of Parliament, dynamically align for evermore with EU regulations. They would open up the UK as a global trading nation to mutual recognition around the world. We have our very own certification—UK conformity assessed—which I urge the Government to seek to get recognised in all the trade agreements they sign up to.

Surely we want this Parliament to define the standards by which products around the world are recognised. There should be mutual recognition of the other high-quality jurisdictions—such as Canada, Australia, the United States and the countries in the Pacific—to supplement the recognition that the Secretary of State seems minded to give exclusively to the European Union.

Aphra Brandreth Portrait Aphra Brandreth (Chester South and Eddisbury) (Con)
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It is a pleasure to serve under your chairmanship, Ms Vaz. I rise to speak in support of the Opposition amendments, which are not just minor textual tweaks but go to the core of how we manage product regulations now that we have left the European Union.

Amendment 20, which proposes replacing the word “EU” with the word “foreign” in the relevant provision, might seem like a small change on the surface, but it is very important. Focusing only on EU law in this context risks narrowing our horizons at a time when we have been trying to broaden them. Since leaving the EU, the UK has made real efforts to strike up new trade relationships and to move in ways that enable us to take advantage of fast-growing global markets, not just the one on our doorstep.

Richard Holden Portrait Mr Richard Holden (Basildon and Billericay) (Con)
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The context is that, despite its massive expansion since 1990, the EU’s share of global GDP has halved from 30% to just above 15%. That is why the amendments, along with our earlier amendment on growth, are clearly in favour of the UK’s future as a global trading power.

Aphra Brandreth Portrait Aphra Brandreth
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My right hon. Friend makes an important point. Of course we need to think about the EU, but we also need to think more widely and broadly, and look at the opportunities across the globe. A good example of that is, as my hon. Friend the Member for West Worcestershire rightly pointed out, our accession to the comprehensive and progressive agreement for trans-Pacific partnership. That is a major economic partnership with Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. To join the CPTPP, the UK underwent a comprehensive review to ensure that our domestic regulations were compatible with those of its members. That progress was possible because we were no longer locked into EU rules.

We need to be careful here. If the Bill’s powers allowed us to simply fall back into alignment with EU laws through dynamic alignment, we would end up undoing the very advantages that regulatory independence has given us. That is why amendment 6 is so important: it would make sure that if we chose to align with any foreign law, EU or otherwise, it would be to the version of that law as it exists on a specific date, not as it may evolve in the future. In other words, we keep control: we know exactly what we are aligning with and we do so deliberately. As the Opposition continue to stress, the Bill clearly indicates a move towards dynamic alignment with the EU without oversight. It is clear that the intention is to see our regulations automatically change every time the EU updates its regulations.

Dynamic alignment would bring businesses uncertainty by requiring continuous adjustments, and such changes might require businesses to adapt and potentially bear the costs of the changes. As was pointed out in debates in the other place, EU rules are not always made with our economy in mind. They are sometimes protectionist, or designed to benefit specific interests in the single market. We must be sure that the Bill does not jeopardise any progress we have made with new partners, or tie us to a regulatory environment that is not in our best interests. Dynamic alignment would effectively mean outsourcing decisions about UK product standards to a foreign body. That does not sit well with the principle of parliamentary sovereignty and, frankly, does not give British businesses the clarity or stability that they need.

Finally, amendment 22 would add a simple but important safeguard: it would require the Secretary of State to publish an explanatory statement if the Government plan to base regulations on the law of just one foreign market. It is a transparency measure. If we are going to align UK rules with those of another country or bloc, the public and Parliament deserve to know why that is the right course of action. The amendment would help to ensure that decisions are made in the national interest and, importantly, that they are properly scrutinised.

I ask again why Ministers are so unwilling to explain their decisions. Why would they not want transparency? If their decisions are in the public interest, they surely would not have any issue with supporting amendment 22 and agreeing to publish an explanatory statement in relevant cases. The Government have argued that clause 2 provides flexibility and continuity. I understand that perspective, but flexibility should not come at the expense of democratic oversight, and continuity should not mean quietly reverting to rules that we have worked hard to move beyond.

The amendments in this group would not prevent alignment where it is helpful; they would ensure that alignment is clear, accountable and firmly in our control. That is a balanced approach that recognises the opportunities of global trade while respecting the sovereignty of this House. I hope the Committee will support the amendments.

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Justin Madders Portrait Justin Madders
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Clause 2 clarifies the power given under clause 1, specifically what types of requirement the product regulations may cover. It enables regulations to specify the requirements that products to be marketed or used in the UK must meet. That will ensure that the UK can maintain high levels of product safety and compliance, support economic growth, and remove unsafe or non-compliant goods from the market.

The requirements may cover a range of activities related to products, and the list in clause 2 is not exhaustive. It includes, for example, how a product is marketed, how it is assessed, how it is installed and how it is manufactured and packaged. It also allows regulations to set requirements on the components of products, whether tangible or intangible. In that way, although the Bill relates to physical products, regulations may address the effects of intangible components, such as artificial intelligence software, on the risks that a physical product may present.

In terms of who it affects, the clause allows the regulations to set obligations on manufacturers, persons who market or import the products, online marketplace operators and other actors involved in the product journey. Thus, all actors involved in the product’s lifecycle, and therefore the product’s safety, may be covered by the regulations. Members will be aware of the breadth of product safety regulations already on the statute book. The breadth of clause 2 is necessary to ensure that all aspects of ensuring product safety are adequately covered now and in the future by regulations passed under the Bill.

While the growth of e-commerce models has provided consumers with greater choice and convenience, that cannot be at the expense of consumer protection or undermine compliant businesses. The rapid expansion of e-commerce has also brought significant challenges to regulatory frameworks, which were not designed with increasingly complex online and globalised supply chains in mind. Today, the sale of unsafe products to UK consumers via online marketplaces is a significant problem that has led to serious harm and fatalities. The clause will allow the Government to respond to those modern challenges by explicitly recognising the role of online marketplaces in ensuring that products sold via their sites are safe, while enabling businesses to innovate and grow.

We intend to use the powers in the Bill to clarify the responsibilities of online marketplaces. We will build on best practice to create a proportionate regulatory framework for online marketplaces to prevent non-compliant and unsafe products being made available on their sites, to ensure that sellers operating on their platform comply with product safety obligations, to provide consumers with appropriate information, and to co-operate with regulators, such as by establishing processes to remove unsafe products from the market quickly.

The Government will develop the details of the requirements with consideration of the practical implications and through stakeholder engagement and consultation before they are implemented via secondary legislation. The affirmative procedure will also apply when imposing product requirements for the first time on online marketplaces. This will ensure that the first regulations imposing new obligations on providers and platforms are subject to debate and appropriate parliamentary scrutiny.

As Members will be aware, currently we recognise certain EU product requirements, such as conformité Européenne marking, to support the interests of UK businesses and consumers. The clause will ensure that where the EU makes changes to product requirements, including those we recognise, we are able to recognise those changes where it is in our interest to do so. This would offer businesses the choice to use either the CE or UKCA marking to place a range of products on the GB market, helping them to avoid duplication of costs without compromising on consumer safety. The clause also enables the UK to end recognition of EU requirements where that is in our interests. The UK being able to respond to changes made by the EU to product requirements that we recognise will allow us to give businesses the regulatory clarity they need.

Aphra Brandreth Portrait Aphra Brandreth
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I thank the Minister for his remarks. If he says that these things will be done if they are in the country’s interest, what is the problem with bringing that back to the House to be debated and agreed? The problem we have, Ms Vaz, is that Ministers are to have discretion to decide what is in the country’s interest, when we think that should be for Parliament to decide.

Justin Madders Portrait Justin Madders
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I understand the point being made. We have already made it clear that there will be a number of occasions when we bring regulations under the affirmative procedure—for example, when a new power of entry is created; when regulations are disapplied in the case of an emergency; when a criminal offence is created or widened; when information sharing provisions are introduced; when cost recovery procedures are established; where changes are made to primary legislation; when the definition of an online marketplace is amended; when requirements relating to the marking of products and online marketplaces are introduced for the first time; when requirements on persons who control online marketplaces are introduced for the first time, and so on. I suggest that there will be ample opportunity for Parliament to have its say and scrutinise regulations made under the Bill.

Finally, I turn to the technical standards that will be developed or updated. Technical standards set out practical ways in which a requirement may be met, to help manufacturers in meeting their obligations. Currently, they can be used to demonstrate compliance with a particular product requirement, and are often prepared and adopted by recognised bodies such as the British Standards Institution. The reference to standards in clause 2 makes clear that regulations will maintain this practice, and that will therefore help to provide clarity to manufacturers and traders on how to comply with regulatory requirements through the use of these standards.

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Sarah Gibson Portrait Sarah Gibson
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I thank the hon. Member for her intervention, but I think we all have to recognise the reality of our starting position, which is that an awful lot of our product regulation is currently aligned. We cannot throw that out and start talking about “foreign law”, as if any country that we happen to have a trade deal with will have similar levels of scrutiny of its products.

Aphra Brandreth Portrait Aphra Brandreth
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The point is that we want to be forward-looking, and our concern is that this provision is very much backward-looking. My hon. Friends have talked about future trading partners and things like the CPTPP—things we might miss out on by being backward-looking. Does the hon. Member agree?

Sarah Gibson Portrait Sarah Gibson
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Although I am extremely excited about any future and new trade deals the UK might have across the globe, I am a little worried that we are back to Brexit benefits, which we did not quite see. We have to be realistic: our businesses need continuity and clarity, and I believe that the Bill provides them. It would have been much more useful if we had been able to concentrate on the valid points that Opposition Members made about parliamentary scrutiny, which we could quite clearly support. I will be supporting the clause.

Question put, That the clause stand part of the Bill.

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Alison Griffiths Portrait Alison Griffiths
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I rise to speak to clause 3 and Opposition amendments 23 to 25. Clause 3 deals with the enforcement of product regulations, but as it stands, it embodies a vast Executive overreach that undermines accountability and business confidence. The Opposition believe in clear and limited rules, not vague powers that spook entrepreneurs. Our amendments would inject much-needed clarity and proportionality into clause 3.

First, as my hon. Friend the Member for West Worcestershire set out, amendment 23 presses for a definition of the so-called “relevant authority”. The Bill hands out new regulatory powers without even specifying who will wield them. Is it to be the Secretary of State, local trading standards officers, a new quango or devolved Administrations? Nobody knows. Businesses deserve to know who might come knocking at their door to enforce these rules. We need clarity about which authority is in charge, so that there is accountability instead of a free-for-all.

Secondly, amendment 24 highlights the Bill’s vague enforcement functions. Clause 3 would empower unnamed authorities to monitor, investigate and secure compliance with wide-ranging product regulations, but it sets no clear limits or guidance. That open-ended mandate could invite over-zealous enforcement. We all support product safety, but regulators must not have a blank cheque to harass businesses. The functions and scope of enforcement need to be defined with precision and targeted at genuinely dangerous non-compliance, not wielded arbitrarily. Trustworthy business owners should not lie awake at night worrying that some inspector will suddenly decide to make an example of them for a minor technical breach.

Thirdly, amendment 25 addresses the sweeping powers of inspectors. As drafted, the Bill will even allow inspectors to enter homes and seize products on the say-so of a Minister’s regulation. My right hon. Friend the Member for Beverley and Holderness (Graham Stuart) warned in a previous debate that a future Minister, on a whim, could create legions of inspectors with the rights to barge into people’s homes or businesses and to confiscate property. We must ensure that enforcement powers are proportionate to actual risks, and that innocent consumers and traders are protected from unreasonable intrusion.

Aphra Brandreth Portrait Aphra Brandreth
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I rise to speak in support of amendments 23 to 25 on the enforcement of product regulations. Let me be clear: no one here is arguing against the need for robust enforcement of product safety or regulatory compliance. However, we must consider the broader context.

Clause 3—indeed much of the Bill—is a classic example of what the Delegated Powers and Regulatory Reform Committee in the other place has rightly criticised as “skeleton legislation”. The Bill delegates sweeping powers to Ministers to create regulatory frameworks entirely through secondary legislation, with little to no detail included in the Bill itself, yet here in clause 3, we are being asked to give authorities that have not yet been named real and potentially intrusive enforcement powers for regulations that have not yet been written. That should give us all pause for thought.

Subsection (1) allows Ministers to designate anyone as a “relevant authority”, and subsection (3) gives those authorities the power to investigate, monitor and even mitigate non-compliance. We then come to subsection (4), which grants those authorities the ability to appoint inspectors armed with powers to enter premises, seize goods, demand information and even order the destruction of products. These are serious powers. They may well be appropriate in specific, proportionate contexts but the point is that we do not know what those contexts will be because the Bill does not tell us.

How can we, in good conscience, grant enforcement powers for rules that have not been set to people we have not identified in a system that Parliament will have very limited opportunity to scrutinise? This is not a narrow, technical concern; this is a constitutional one. As the DPRRC in the other place said in its report:

“Skeleton legislation signifies an exceptional shift in power from Parliament to the executive”.

This is not something that this House should hand over lightly.

Our amendments do not reject the need for enforcement powers in principle, but as my hon. Friend the Member for West Worcestershire said, the wording of clause 3 needs to be clarified. Who are these authorities and what are their functions? In our amendments, we seek clear information, which is vital. There will be significant costs to businesses, so the powers must be clear. We all support product safety, but I urge the Committee to support the amendments and, in doing so, uphold the role of the House in setting the law, not just rubber-stamping it once the details have been decided behind closed doors.

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Justin Madders Portrait Justin Madders
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I am glad that the shadow Minister is keen to hear from me. I can, I think, explain the power in subsection (6); it refers to subsection (3)(c) and (d), which cover compliance with metrology regulations and mitigating the effect of non-compliance with metrology regulations. This provision is about making sure that those delivering and producing those products are doing so accurately and in compliance with the law. By its nature, subsection (6) has to be broad, but it has to be seen in the context of subsection (3)(c) and (d), which explain the context in which that power would operate.

As the shadow Minister said, the argument here is similar—it is possibly identical—to the one we had earlier about the powers. As I said earlier, enforcement authorities include the Office for Product Safety and Standards, local authority enforcement officers, the Health and Safety Executive, and the Office for Nuclear Regulation. We need to ensure that these bodies can enforce in a targeted way, with the relevant requirements created by these regulations, which set out clearly what those powers do, and they must do so while fulfilling a public function, as set out in clause 6(2) and clause 3(2), which we debated earlier.

Aphra Brandreth Portrait Aphra Brandreth
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It is still not entirely clear from subsection (3)(c) and (d) what that “something” is. Rather than just referring to those provisions, will the Minister clarify what “something” means, instead of referring it back to the relevant authorities, when we still do not know exactly what they will be required to enforce?

Justin Madders Portrait Justin Madders
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I refer the hon. Member to clause 5(5), which talks about quantities, goods and units of measurement, which is the broad ambit of the areas where these powers will apply.

Amendment 29 seeks to prevent regulations made under the Bill from creating product regulation and metrology enforcement powers and functions. At present, product legislation provides a patchwork of enforcement powers across numerous pieces of legislation. That has caused complexity over the decades, so we are seeking to introduce new enforcement powers that are able to meet changing demands without the continuous process of layering that we have seen in recent decades, which has caused confusion and added complexity to the current framework.

As I mentioned earlier, there is precedent for including enforcement powers within regulations, including in the Toys (Safety) Regulations 2011 and the Personal Protective Equipment (Enforcement) Regulations 2018. I believe that the issues in this debate are the same as those that we discussed earlier; therefore, I invite the shadow Minister to withdraw her amendment.