Ireland/Northern Ireland Protocol: Scrutiny of EU Legislative Proposals (European Affairs Committee Sub-Committee Report)

Baroness O'Loan Excerpts

Friday 20th January 2023 Lords Chamber

[Baroness O'Loan (CB)]

My Lords, I too pay tribute to the noble Lord, Lord Jay, for the effective manner in which the affairs of the committee have been conducted, and to our very able staff.

The scrutiny work of the committee is profoundly important because the legislative and other changes which are ongoing are crucial to the future prosperity of the UK. The report addresses the economic and political impact of the protocol, and we have considered the impact of the arrival of the protocol Bill, which caused such consternation in your Lordships’ House—happily, it is now on the shelf, where it should remain.

We have heard evidence that the ongoing uncertainty and lack of stability are a barrier to inward investment, which is desperately needed in Northern Ireland. The data on the economic impact of the protocol is not sufficient to enable definitive conclusions to be drawn, but we know that other factors are at play such as the exclusion of non-UK labour from the market, which results from withdrawal rather than the protocol. We heard from one CEO that, following Brexit and Covid:

“Instead of the usual 100,000 people coming into the workforce, we will have fewer than 10,000.”


Trade has continued, but it would have been more difficult had the protocol been enforced in all its terms. Time is running out on the grace periods. We have the newly revitalised talks, and it is vital that a negotiated way forward is achieved. It is vital too that the Northern Ireland Assembly returns to do its work, that the democratic deficit in all its forms is addressed and that the problem of regulatory divergence receives urgent attention from the Government.

Concerns are being articulated about problems deriving from the omission to check goods coming into Northern Ireland from GB, particularly because supply chains are altering and goods are coming in from third countries from which they did not come before. Manufacturers and distributors have indicated to us that they are working hard to maintain markets and continue supplies, both east-west and west-east, but that selling into Northern Ireland from GB involves a lot more paperwork, resources and complexity. There are situations where businesses are absorbing that cost; we do not know how long that can continue. The MD of M&S told us that his company has had to open a new export centre in Motherwell in Scotland to facilitate deliveries to its stores on the island of Ireland. They require an extra 24 hours for delivery, with an impact on shelf life and therefore on profitability. A representative of the logistics industry told us that there was an initial 40% increase in the cost of moving goods to Northern Ireland. We have also heard that businesses are taking advantage of free access to the GB mainland.

There is a danger that, if the matters raised in the evidence we have heard are not dealt with speedily by government, if the grace periods expire and are not renewed, if the EU takes further infringement action against the UK and if the issues relating to the protocol are not resolved, Northern Ireland will face significant hardship in many areas, including the ability of businesses both in Northern Ireland and in GB to continue to do business. There will be lost jobs in both parts of the UK as markets can no longer be serviced in Northern Ireland, and there will be difficulty in accessing safe foods and adequate medication, for example.

We have had checks in the past. It is not new that we should have checks, but this is a different situation, and we have to face the reality of that.

I hope that the work of the committee is providing government with assurances about the legislation coming through and with information, which is vitally needed. As the noble Lord said, we need more information from government departments, but I hope that government, working with the committee, will continue to enable this important work.