Definition of Qualifying Northern Ireland Goods (EU Exit) Regulations 2020

Baroness Ritchie of Downpatrick Excerpts

Monday 30th November 2020 Grand Committee

[Baroness Ritchie of Downpatrick (Non-Afl)]

My Lords, I thank the Minister for the explanation of these stage one, stop-gap regulations. From my perspective, I support unfettered access for businesses from Northern Ireland to Britain. I also do not want any borders, whether in the Irish Sea or in the island of Ireland, because they would act as impediments to business and the free flow of people and would have—shall we say?—the capacity to undermine our very delicate political relationships and infrastructure. We must be careful about that.

I see the regulations in the context of a Brexit I did not want to happen, but it is here. It creates barriers and impediments to political, economic and social development at a time when businesses are having to deal with the difficulties and challenges presented by Covid. They need assistance and a streamlined system that does not involve any extra costs or burdens, either administrative or financial, when they are transporting goods to Britain, either via Northern Ireland ports or from ports in the Republic of Ireland. Like the noble Lord, Lord Dodds, I would like the situation of Northern Ireland products and produce imported or exported to Britain via ports in the Republic of Ireland to be clarified.

Notwithstanding all that, there are several questions I would like to ask the Minister about the complexity of these regulations. The Minister and the Explanatory Memorandum indicate that further legislation will be produced in this area and that this is simply a temporary, stop-gap measure. He referred to the regulations, which will last about six months, as avoiding disruption. What will be the nature of the new regulations and when are they likely to be brought to the House for discussion and affirmation? There are suggestions that this legislation is a bridge to a longer-lasting regime— something that the Secretary of State said in the other place. What is that longer-lasting regime? What will be the content, nature and scope of that legislation?

Suggestions have also been made that work is ongoing with the devolved Administrations—I think the Minister referred to that. What is the nature of that work? What discussions have taken place with the Northern Ireland Executive and specific Ministers dealing with economy, finance and the First and Deputy First Ministers? Has the Minister for Infrastructure been involved in such discussions, as having responsibility for transportation? If so, what was the outcome of those discussions, or have they mainly been at official level? Is the Northern Ireland Executive expected to bring forward subsequent legislation in relation to this issue?

I come to the thorny issue of agri-foods, already mentioned by the noble Lords, Lord Hain and Lord Dodds. How will standards of agri-food products emanating from Northern Ireland be dealt with, as they will still have to comply with EU standards? Will there be costs and administrative burdens involved? If they are unfettered, surely there should be no costs.

I come to the issue of processing, the matter raised by the noble Lord, Lord Hain. What are Northern Ireland processed goods? Can the Minister provide us with a definition? The dairy industry is largely all-island in Ireland. If milk is produced in the Republic of Ireland and processed in Northern Ireland for cheese and other dairy products, does the definition of qualifying Northern Ireland goods apply to such products, in the light of the protocol and agri-food requirements? In fact, the dairy industry is largely owned by companies based and headquartered in the Republic of Ireland.

Penny Mordaunt said in the other place that these regulations were

“no more than a stopgap to a longer lasting regime”—[Official Report, Commons, Delegated Legislation Committee, 10/11/20; col. 7.]

which would be accompanied by further anti-avoidance measures that would be introduced in a timely manner. What is the nature of those anti-avoidance measures? Will they deal with the issues of competition and tax?

Like the noble Lord, Lord Dodds, I would like to know what the role of HMRC is in such transactions. Can the Minister provide an update on the UK-EU discussions that are seeking to find solutions to or flexibilities over the types of goods that can come into Northern Ireland from Britain for supermarkets? I appreciate that that is not in the remit of these regulations but the Minister will recall that this matter bedevils suppliers in Northern Ireland, particularly supermarkets. Perhaps this issue would be better dealt with at the supermarket level rather than by the JMC, but it would be good to have an update because the agri-food industry and our general retail businesses require certainty and it is only a few weeks until the end of the transition period.