Brexit: Consumer Protection (European Union Committee Report)

Baroness Burt of Solihull Excerpts

Wednesday 16th January 2019 Lords Chamber

[Baroness Burt of Solihull (LD)]

My Lords, we are here to take note of the European Union Committee report on the effect on consumer protection of withdrawal from the European Union, and I certainly commend the committee and the noble Baroness, Lady Kennedy of The Shaws, for undertaking this very important work. I was not a member of the committee, so I am extremely grateful for the clear and very interesting account that she gave of what happened on it.

The report tries to be positive, but I sincerely doubt whether any situation that we try to construct for ourselves from outside the EU to protect consumers will ever measure up to the protection that our own consumers—and EU consumers—currently enjoy through the complex and intertwined relationships that have developed to protect them over the past 50 years.

However, paragraph 20 of the report makes the point that our national law often provides for a higher degree of protection than the EU. That is true, and I truly hope that we will continue to be leaders in the field of consumer protection policy. But, since the interaction that we will have with our hitherto European partners will be so severely diminished, opportunities to learn from each other and create legislation to more effectively protect consumers will be severely limited. Consumers in the EU and the UK will be the poorer.

However, the government response to this is that existing consumer protections that are based on EU law in the UK will be retained. That will be fine when UK customers buy from UK-based traders—and ONS figures tell us that 82% of UK online purchases come from the UK-based companies. But, of course, if we are buying from EU-based companies—or EU citizens buy from UK-based companies—the situation will be different and protections will not be the same, particularly ongoing.

In paragraph 60 of the report, the Government is requested to address specifically the rights of UK citizens who visit EU 27 countries post Brexit. In their response I am unable to see anything that is particularly clear or helpful, other than the fact that they are working on it. I ask the Minister: have I got this wrong? If I have not, can he confirm when we will know what protections UK consumers visiting the EU 27 will enjoy?

A key issue raised by the report concerns how the Government are going to maintain access to the cross-co-operation mechanisms that facilitate the protection of European consumers. The noble Baroness, Lady Hayter, referred to this in the statutory instrument that she, the Minister and I took part in last night, on preparing the UK law in the event of a no-deal Brexit. She said that the Government had ended,

“the requirement on our enforcement bodies to help other EU states in the interest of their consumers. They have made it voluntary rather than a requirement. That was never necessary”.—[Official Report, 15/1/19; col. 208.]

Can the Minister explain why this step was taken? If consumers on both sides benefit, what would be the reasoning for discontinuing it?

In paragraph 84 of the report, grave concern was raised by the Select Committee about the clear evidence that national regulatory and trading standards bodies are already struggling to fulfil their important roles because of financial constraints, even before the additional complications and challenges of Brexit. The noble Baroness, Lady Kennedy, has already mentioned this. All the work that our consumer protection bodies do needs to be properly funded. If it is not being sufficiently funded now, what hope is there for protecting the needs of consumers in the future?

Finally, in the Government’s response to this question and others, they say that,

“the Government is fully committed to securing the … best possible deal for consumers”.

Surely the best possible deal is the deal that we have now.