Northern Ireland Protocol Debate

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Department: HM Treasury
Thursday 15th July 2021

(3 years ago)

Commons Chamber
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Bernard Jenkin Portrait Sir Bernard Jenkin (Harwich and North Essex) (Con)
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I beg to move,

That this House supports the primary aims of the Northern Ireland Protocol of the EU Withdrawal Agreement, which are to uphold the Belfast (Good Friday) Agreement in all its dimensions and to respect the integrity of the EU and UK internal markets; recognises that new infrastructure and controls at the border between Northern Ireland and the Irish Republic must be avoided to maintain the peace in Northern Ireland and to encourage stability and trade; notes that the volume of trade between Great Britain and Northern Ireland far exceeds the trade between Northern Ireland and the Republic of Ireland; further notes that significant provisions of the Protocol remain subject to grace periods and have not yet been applied to trade from Great Britain to Northern Ireland and that there is no evidence that this has presented any significant risk to the EU internal market; regards flexibility in the application of the Protocol as being in the mutual interests of the EU and UK, given the unique constitutional and political circumstances of Northern Ireland; regrets EU threats of legal action; notes the EU and UK have made a mutual commitment to adopt measures with a view to avoiding controls at the ports and airports of Northern Ireland to the extent possible; is conscious of the need to avoid separating the Unionist community from the rest of the UK, consistent with the Belfast (Good Friday) Agreement; and also recognises that Article 13(8) of the Protocol provides for potentially superior arrangements to those currently in place.

Thank you for that statement, Madam Deputy Speaker, and I would like to record my thanks to the Backbench Business Committee for granting time for this debate. I am also very grateful that so many right hon. and hon. Members have put in to take part in it. I believe that this is a debate of significance, and at a time of significance.

The purpose of the debate is for the House to agree on how the Government should approach the issues that have arisen in Northern Ireland since the UK left the European Union. I remind the House that the Northern Ireland protocol was part of the 2019 EU withdrawal agreement, not part of the trade and co-operation agreement, which was ratified only this year. It is the protocol that is creating strains on power sharing under the Good Friday agreement, pressures on political stability and an upsurge in tension between the two communities in Northern Ireland.

Let me just say what this debate is not about. There is absolutely no value in point scoring about past divisions and disputes that we have had in this House. That would just further undermine public confidence. This debate is about looking forward, about what we must now agree to do to set things right. The proposals I will come to are in the interests of the EU as much as they are in the interests of the UK.

The motion sets out

“the primary aims of the Northern Ireland Protocol of the EU Withdrawal Agreement, which are to uphold the Belfast (Good Friday) Agreement in all its dimensions and to respect the integrity of the EU and UK internal markets”

and states that

“new infrastructure and controls at the border between Northern Ireland and the Irish Republic must be avoided to maintain the peace in Northern Ireland and to encourage stability and trade”.

The motion then points out an indisputable fact—that

“the volume of trade between Great Britain and Northern Ireland far exceeds the trade between Northern Ireland and the Republic of Ireland”.

Why is this significant? In 2019, the Northern Ireland Executive found that over 90% of medicines, fruit and vegetables, books, clothes, household goods and baby equipment sold in Northern Ireland was arriving from other parts of the United Kingdom. In 2018, Northern Ireland sales to Great Britain were two and a half times greater than those to the Republic.

The protocol is clear: it is not intended to create what it refers to as “diversion of trade”. On the contrary, article 16 states:

“If the application of this Protocol leads to serious economic, societal or environmental difficulties that are liable to persist, or to diversion of trade, the Union or the United Kingdom may unilaterally take appropriate safeguard measures.”

Sammy Wilson Portrait Sammy Wilson (East Antrim) (DUP)
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The hon. Gentleman makes a very important point. Is it not significant that since the protocol came into operation, there has been a dramatic increase in imports from the Irish Republic into Northern Ireland and a fall in trade between GB and Northern Ireland? Indeed, Irish Ministers have boasted that one reason for having a delay in further border checks is to encourage further diversion of trade towards the Irish Republic.

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Bernard Jenkin Portrait Sir Bernard Jenkin
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I could not be more grateful for that intervention, and I will amplify the points that the right hon. Gentleman makes, because he is absolutely right. Have no doubt that there has been and continues to be diversion of trade due to the protocol. Article 16 exists in order that either party can take unilateral action to prevent that.

The Central Statistics Office Ireland reports that Republic of Ireland exports to Northern Ireland in the first four months of this year increased by 25% and by 40% relative to the first four months of 2019 and 2020. Northern Ireland exports to the Republic increased by 59% and 61% on the same comparison. Some are heralding that as the birth of an all-Ireland economy, but that is wholly contrary to the letter and spirit of the protocol.

The motion in my name continues by noting that

“significant provisions of the Protocol remain subject to grace periods and have not yet been applied to trade from Great Britain to Northern Ireland and that there is no evidence that this has presented any significant risk to the EU internal market”.

Those grace periods, applying to chilled meats, medicines and the requirement of export health certificates, are intended to lapse in the coming months. The UK Government may choose to extend them, as we already have, with or without the EU’s permission, and they would be justified in doing so because the grace periods are not doing any harm, but that is not a long-term solution.

The Irish Minister for Foreign Affairs, Mr Simon Coveney, says that the grace periods exist

“to give supermarkets in particular, the opportunity to readjust their supply chains to adapt to”

what he refers to as “these new realities”. I am afraid that confirms in the minds of many that the protocol is being used to create diversion of trade.

Diversion of trade as a goal can form no basis for the rebuilding of trust and public confidence in both communities in Northern Ireland. Article 6 of the protocol requires the EU and the UK to

“use their best endeavours to facilitate the trade between Northern Ireland and other parts of the United Kingdom”.

I regret to say that, thus far, there is little evidence to suggest that the Republic of Ireland or the EU are attaching any importance to that vital commitment, and that is what is destroying trust.

The motion then states that this House

“regards flexibility in the application of the Protocol as being in the mutual interests of the EU and UK, given the unique constitutional and political circumstances of Northern Ireland; regrets EU threats of legal action; notes the EU and UK have made a mutual commitment to adopt measures with a view to avoiding controls at the ports and airports of Northern Ireland to the extent possible; is conscious of the need to avoid separating the Unionist community from the rest of the UK, consistent with the Belfast (Good Friday) Agreement; and also recognises that Article 13(8) of the Protocol provides for potentially superior arrangements to those currently in place.”

That is the real point of the motion: that the protocol is only one solution to the challenge of avoiding a hard border in Ireland while also respecting the integrity of the EU and UK internal markets.

There always was more than one way to skin a cat, and the EU agreed to that in article 13(8). Unfortunately, the EU seems implacably opposed to any discussion about how a subsequent agreement under article 13(8) of the protocol could supersede the protocol in whole or in part. Paragraph 25 of the political declaration accompanying the withdrawal agreement also envisaged:

“Such facilitative arrangements and technologies will also be considered in alternative arrangements for ensuring the absence of a hard border on the island of Ireland.”

Sadly, the protocol was not superseded by the trade and co-operation agreement, but now is the time for the EU to accept that its application of the protocol is not achieving its legitimate aims. Either the protocol must be changed by agreement or the UK must exercise its sovereign right to jettison the whole thing as a fundamental threat to peace and stability in Northern Ireland and to the integrity of the United Kingdom.

The EU could start by agreeing to an expanded category of goods that are not at risk of onward travel to the Republic of Ireland. We already have an authorised trader scheme for supermarkets; that could also be expanded, creating far less paperwork than there is now and a permanent exemption from unnecessary sanitary and phytosanitary checks. The EU could also agree to allow non-EU-compliant UK products to be imported into Northern Ireland if they are not at risk of moving into the rest of the EU internal market. The question is whether the EU is capable of being flexible and pragmatic, or whether it will continue to insist on imposing its rules, whatever the cost to peace and stability in Northern Ireland.

The noble Lord, Lord Trimble, was one of the two leaders who won the Nobel peace prize for negotiating the Belfast/Good Friday agreement. He has proposed a new solution: replacing the protocol with a system of mutual enforcement. This would mean that the UK and the EU would each ensure and guarantee that goods travelling across the shared border would be compliant with each other’s standards. Light checks would occur, but away from the border, and both sides would share relevant data on exports.

That proposal would remove the need for direct EU jurisdiction over Northern Ireland; Northern Ireland would be under UK law and fully restored as part of the UK internal market. It would ensure the absence of any new infrastructure on the border itself, it would guarantee the integrity of the EU internal market and, most importantly, it would accord equal respect to the concerns of both communities in Northern Ireland in a way that the present protocol utterly fails to do.

The proposal has not yet been tabled by the UK Government, but my understanding is that they broadly support the sentiments of the motion. Ideally, the EU would accept its obligations under paragraph 25 of the 2019 political declaration and agree in principle that the protocol will be superseded by these pragmatic and practical proposals.

We must hope that the EU lives up to its own ideals. Article 8 of the treaty on European Union obliges the EU to

“develop a special relationship with neighbouring countries, aiming to establish an area of prosperity and good neighbourliness…based on cooperation.”

If the EU refuses in principle even to open these discussions, the UK will have no option but to resort to article 16 of the protocol and take unilateral action. The world is watching how the EU is dealing with the United Kingdom.

Iain Duncan Smith Portrait Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)
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Sometimes, over the course of this, the view is taken in the EU, or even in Ireland, that somehow the rest of the UK, or Great Britain, has no regard at all for the status of Northern Ireland in the United Kingdom. May I just read back to my hon. Friend two facts from a recent poll, which shows that to be completely wrong? When asked whether it is unfair to Northern Ireland that it is treated differently from the rest of the UK, over 50% of the residents from the whole of the United Kingdom said, yes, it was unfair. The second question, which is really important, was: how important or unimportant is it that Northern Ireland remains a part of the United Kingdom. Again, well over half—53%—said “important”. Interestingly, that is a margin of 41% over those in the United Kingdom who said it was unimportant. We want Northern Ireland to remain a part of the United Kingdom.

Bernard Jenkin Portrait Sir Bernard Jenkin
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My right hon. Friend puts down an important marker. We can dismiss any idea that the United Kingdom as a whole is not interested in the interests of Northern Ireland or in Northern Ireland remaining part of the United Kingdom. That is an established fact and he has dealt with that very capably.

In conclusion, the world is watching how the EU is dealing with the United Kingdom. The UK will offer agreement on what the problems are and how they must be resolved. Together, the EU and the UK can look for common ground about how to do so; otherwise the rest of the world will see that the grounds for invoking article 16 have indeed already been met, and action will have to be taken.

Eleanor Laing Portrait Madam Deputy Speaker (Dame Eleanor Laing)
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I have to impose an immediate six-minute time limit on Back Bench speeches, but that is quite generous as compared with recent times.

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Richard Thomson Portrait Richard Thomson
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I think there is a shared interest in making sure that there is as close to seamless trade as can possibly exist across these islands, within these islands and with the European Union. In that sense, the right hon. Gentleman and I are on the same page.

An agreement on animal welfare, sanitary and phytosanitary standards would eliminate the need for very many of the checks and reopen that trade. It is that sort of pragmatic renegotiation of the protocol, in the light of experience and of everything that has come from the nature of Brexit, that would be desirable in order to remove not just the barriers but the symbolism that the frictions that are being felt so keenly in Northern Ireland represent.

Bernard Jenkin Portrait Sir Bernard Jenkin
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May I just point out that if there was an independent Scotland inside the European Union, it would not be that independent, because it would be bound by all the rules of the European Union and the European Union customs code? Scotland would be obliged to have a hard border with the rest of England—not being independent from the European Union, it would have no choice in that matter whatsoever. It was a spokesman for the Scottish nationalist party who said that that would be good for Scotland because a border would create jobs. Will the hon. Gentleman confirm that that was actually said?

Richard Thomson Portrait Richard Thomson
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I knew that mentioning Scottish independence in this context would wake up hon. Members on the Government Benches. Nobody in the Scottish National party wants to set up hard borders with anywhere. It is simply because we are having to live with the consequences of this English nationalist dream and misguided venture that the question arises.

While it is fine and necessary to set an objective of restoring that frictionless trade, it must be done in the correct way. [Interruption.] Being mindful of your strictures, Madam Deputy Speaker, I will draw my remarks to a close. We need to identify practical ways in which that can happen. Above all, the UK Government must stop the empty sabre-rattling. They must stop blaming their predecessors for the misfortunes that they have created for themselves. They must stop blaming everybody else for the misfortunes that they have landed themselves in and for the outcomes of their own choices—[Interruption.] A little bit of self-reflection and self-awareness on the Government Benches would not go amiss at this juncture.

More to the point, the Government need to work to rebuild trust and to secure a durable solution that works in the interests of everyone in Northern Ireland and across these islands.

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Louise Haigh Portrait Louise Haigh
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Of course we have studied the suggestions made by Lord Trimble, who we all thoroughly respect as a co-author of the Good Friday agreement. I would welcome the Minister’s comments and remarks on the Government’s strategy to propose and negotiate such an agreement with the European Union. Mutual enforcement relies on trust, and we need a veterinary agreement that respects the unique circumstances of Northern Ireland. Although we can look to New Zealand and Switzerland as potential models, we need a new model that recognises this unique circumstance, with its own regulatory mechanism to enforce it.

Bernard Jenkin Portrait Sir Bernard Jenkin
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I thought the hon. Lady started her speech extremely well. We have had a few party political points, but I understand what it is to be in Opposition. She is making an interesting contribution about a proposal for a veterinary agreement. Of course, the EU is demanding not a veterinary agreement based on mutual enforcement; it wants a veterinary agreement based on alignment, which is just taking back control. That would prevent us from making any free trade agreements with other countries on any of those matters. Is it now Labour party policy to support a veterinary agreement based on mutual enforcement? That would be a very positive step.

Louise Haigh Portrait Louise Haigh
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We are very happy to see such proposals negotiated. I suggest that the EU is highly unlikely to accept such an agreement, given the profound loss of trust that has resulted from the way this Government, Lord Frost and the Prime Minister have approached negotiations. We want to commit to good food standards—indeed, world-leading food standards, as we were promised in the Conservative party manifesto in 2019. In objecting to alignment, which food or animal welfare standards does the hon. Gentleman wish to lower? What food standards is he prioritising over the protection of the economic integrity of the Union?

The agreement must be based on a commitment to high standards. As I said, the Government made that commitment in their manifesto, and it remains hugely popular in the United Kingdom. No one wants our food or animal welfare standards to be undermined. As the CBI has said,

“a dramatic increase in paperwork, compliance costs and delays for firms”

is coming, even while we maintain the same animal welfare standards as the EU.

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Bernard Jenkin Portrait Sir Bernard Jenkin
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I thank my right hon. Friend for her strong speech. This has been a thoughtful and meaningful debate. I am particularly pleased that the Opposition Front Bench has given its support to the motion that has been tabled. That will strengthen the Government’s negotiating position considerably.

I will pick up one or two points. My hon. Friend the Member for North Dorset (Simon Hoare) talked about the need for flexibility, but then seemed to say that that could be achieved without any change to the protocol. That is just not realistic. The idea that the President of the Commission cannot change his mind because member states would have to agree may be a problem for the European Union, but it cannot be a problem for the paralysis of the British Government—the British Government will have to take action.

I invite all those who have almost signed up to what I call the Macron doctrine, after he said at the G7 summit that nothing was negotiable and everything was applicable—this attitude of “You’ve signed it, so you’re stuck with it,” whether or not that is good for the British people or the Northern Ireland peace process—to consider that that is a kind of blindness that we really have to drop. What we are looking for is flexibility, as my hon. Friend the Member for North Dorset, the Chair of the Northern Ireland Affairs Committee, asked for—real flexibility. The EU will not win respect around the world for adopting a head in the sand approach to this, and we will not shoehorn the whole of the United Kingdom back into the single market to resolve these problems, because that is not what the British people voted for.

I leave my right hon. Friend the Minister with this fundamental thought. She talked about working hard and in good faith, and courage and determination, but I am afraid that we are reaching the point very quickly where the Government will have to take action, and it will be a question of letting the European Union know that its failure to respond in reasonable good faith to the entreaties with which the Government have been presenting it will lead to consequences. That needs to happen soon, because the longer this situation persists, the more economic disruption is caused in Northern Ireland and the more the faith and trust in the Good Friday agreement are ebbing away. Everyone has to accept that the protocol is bad for the peace process in Northern Ireland, and it must change or be changed.

Question put and agreed to.

Resolved,

This House supports the primary aims of the Northern Ireland Protocol of the EU Withdrawal Agreement, which are to uphold the Belfast (Good Friday) Agreement in all its dimensions and to respect the integrity of the EU and UK internal markets; recognises that new infrastructure and controls at the border between Northern Ireland and the Irish Republic must be avoided to maintain the peace in Northern Ireland and to encourage stability and trade; notes that the volume of trade between Great Britain and Northern Ireland far exceeds the trade between Northern Ireland and the Republic of Ireland; further notes that significant provisions of the Protocol remain subject to grace periods and have not yet been applied to trade from Great Britain to Northern Ireland and that there is no evidence that this has presented any significant risk to the EU internal market; regards flexibility in the application of the Protocol as being in the mutual interests of the EU and UK, given the unique constitutional and political circumstances of Northern Ireland; regrets EU threats of legal action; notes the EU and UK have made a mutual commitment to adopt measures with a view to avoiding controls at the ports and airports of Northern Ireland to the extent possible; is conscious of the need to avoid separating the Unionist community from the rest of the UK, consistent with the Belfast (Good Friday) Agreement; and also recognises that Article 13(8) of the Protocol provides for potentially superior arrangements to those currently in place.

Rosie Winterton Portrait Madam Deputy Speaker (Dame Rosie Winterton)
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I am suspending the House for a few minutes to make the necessary arrangements for the next business.