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

Baroness Suttie Excerpts

Monday 30th November 2020 Grand Committee

[Baroness Suttie (LD) [V]]

My Lords, it is a pleasure to follow the noble Baroness, Lady Hoey. I was one of her constituents in Kennington for many years. We may not see eye to eye politically, but she always speaks with great conviction.

As other noble Lords have said, the commitment to delivering unfettered access was included in the New Decade, New Approach agreement and in that context from these virtual Benches we can give qualified support to this statutory instrument. There remain, however, as many other noble Lords have also indicated, a number of areas of concern. Today is the last day of November. In exactly one month’s time, the transition period will come to an end. On 1 January, it is clearly vital that businesses can continue to function, but the lack of clarity at this stage does little to provide us with a sense of confidence. It is also frustrating that so many of these decisions are coming so late in the day that there is an inevitable feel of “mend and make do” rather than a measured and thorough consideration of the issues involved.

In debating this SI, we already know that it will be replaced by more detailed proposals next year and by additional orders before the end of this year. In his speech, the Minister confirmed that unfettered access will be given effect in two phases. This SI represents the first phase and is the political equivalent, as the noble Lord, Lord Hain, said, of a sticking plaster. It is to ensure that continuity is maintained and disruption avoided at the beginning of next year. As a result of this approach, many questions remain unanswered, as other noble Lords have indicated this evening.

For example, one area of concern is that of processed goods coming from Northern Ireland which have components originating from outside the region. Can the Minister confirm whether this approach to qualifying goods will have wider implications for the UK’s approach to rules of origin with the rest of the world? As the noble Lord, Lord Hain, spelled out so clearly, it remains unclear how non-qualifying goods will be determined and how they will be distinguished as they move from Northern Ireland to Great Britain. Can the Minister say what will be the operating model for this process? What mechanisms will be put in place to distinguish between Northern Ireland goods and goods from the rest of the EU, including from the Republic of Ireland?

The House of Lords EU Committee has also raised concerns that Northern Ireland could become a “back door” for EU products entering the UK market without checks. Can the Minister say how they intend to prevent this from happening in reality? The Minister will know there is particular concern in the food and drink sector that cheaper or non-authentic versions of quality products may be able to reach the UK market in this way. In the debate in the House of Commons, Penny Mordaunt stated that anti-avoidance measures will be

“introduced in a timely manner”,—[Official Report, Commons, Delegated Legislation Committee, 10/11/20; col. 7.]

but declined to give a more detailed timetable. Perhaps I may therefore repeat the question put by the noble Lord, Lord Dodds of Duncairn, on the anti-avoidance measures. Given, as I have said, that tomorrow will be the first day of December and the deadline for the end of the transition period is fast approaching, can the Minister shed further light on when these anti-avoidance measures are likely to be introduced?