Northern Ireland Protocol Bill

Caroline Lucas Excerpts

2nd reading
Monday 27th June 2022 Commons Chamber

[Elizabeth Truss]

I can absolutely confirm that this Bill is both necessary and legal, and the Government have published a legal statement setting that out.

[Caroline Lucas (Brighton, Pavilion) (Green)]

rose—

[Elizabeth Truss]

I will make a bit more progress and then allow some further interventions.

We continue to raise the issues of concern with our European partners, but we simply cannot allow this situation to drift. Northern Ireland has been without a devolved Government since February due specifically to the protocol, at a time of major global economic challenges. Therefore, it is the duty of this Government to act now to enable a plan for restored local government to begin. It is both legal and necessary.

This Bill fixes the specific problems that have been caused in Northern Ireland while maintaining those parts of the protocol that are working. It fixes problems in four areas: customs and sanitary and phytosanitary; a dual regulatory model; subsidy control and VAT; and governance. On customs and SPS, the Bill creates a green and red lane system. All those trading into Northern Ireland will be part of a trusted trader scheme. Goods destined for Northern Ireland will not face customs bureaucracy. Goods for the Republic of Ireland and the EU will go through four EU-style border procedures. All data from both the green and red lanes will be shared with the EU in real time as the goods depart from Great Britain. This means that the EU will have this data before the goods arrive in Northern Ireland, ensuring that the EU single market is protected.

--- Later in debate ---

[Elizabeth Truss]

I am going to make more progress, and then I will take more interventions.

We fully understand and respect the legitimate concerns of the EU that the single market should be protected. Our solution does just that. The Bill will also establish a dual regulatory regime so that businesses can choose between meeting UK and EU standards. That removes the barriers to goods made to UK standards being sold in Northern Ireland and it cuts the processes that drive up cost for business. It prevents unnecessary divergence between two parts of the UK internal market. Anybody who trades into the EU single market will still have to do so according to EU standards.

The Bill will also ensure that the Government can set UK-wide policies on subsidy control and VAT, overcoming constraints that have meant Northern Ireland has not benefited from the same support as the rest of the UK. For example, at present people in Northern Ireland are not able to benefit from the VAT cuts on solar panels that the Chancellor announced in the spring statement.

These are essential functions of any 21st-century state, but they are especially important in Northern Ireland, where the UK Government play an outsized role in the local economy. We will maintain the arrangements in the protocol on VAT, which support trade on the island of Ireland while ensuring that Northern Ireland can still benefit from the freedoms and flexibility available in Great Britain.

[Caroline Lucas]

Does the Secretary of State understand why so many people would accuse this Government of the most rank hypocrisy? First, this is a predictable outcome of the agreement that they negotiated when they did not give a fig for the situation in Northern Ireland, frankly. Secondly, if they were serious about negotiations, they could be using article 16. Thirdly, at the very same time that the Prime Minister is gladhanding G7 leaders in Bavaria and extolling the virtues of a rules-based international system, his own Government at home are riding a horse and coaches through a rules-based system. Does she understand the concerns we have? What kind of reputation will the UK have on the global stage as a result of this proposal?

[Elizabeth Truss]

As I have made clear, the Belfast/Good Friday agreement should have primacy. The fact is that it has been undermined over the past two years, as we can see from the fact that the institutions of Northern Ireland are not up and running. That is why the Government need to act, and we are doing so in a reasonable and legal way.