Draft Internal Market Information System Regulation (Amendment etc.) Regulations 2021

Chi Onwurah Excerpts

Thursday 1st December 2022 General Committees

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Robert. I thank the Minister for setting out the intent of this delegated legislation. I also thank the two separate parliamentary Committees for their work in scrutinising it—the Lords Secondary Legislation Scrutiny Committee and the Joint Committee on Statutory Instruments—neither of which reported issues with this SI to the House.

Co-operation between nations, mutual understanding, shared trade regulations and, indeed, values are part of any effective trading relationship, as my hon. Friend the Member for Middlesbrough has suggested, and they are at the heart of the internal market information system. The IMI is a secure, multi-lingual online tool that facilitates the exchange of information between public authorities. The IMI helps authorities to co-operate and fulfil their cross-border administrative obligations in multiple single market policy areas. The IMI regulation sets out the framework for the administration of the IMI system by Government officials and those bodies exercising regulatory authority. It requires that each member state has a co-ordinator to look after the effective functioning and correct use of the IMI system and that all communications are handled securely in line with the relevant data protection rules.

As we have discussed, this statutory instrument amends the IMI regulation for two main reasons. The first is to revoke redundant retained EU legislation, and the second is to remove inoperable provisions. Together, this allows limited access to the IMI in Northern Ireland. It is clear that part 1 and chapter 1 of part 3 extend to all of the UK. Chapter 1 of part 3 revokes redundant retained EU law relating to the IMI regulation. Part 2 extends to Northern Ireland and amends the IMI regulation. Chapter 2 of part 3 extends to England, Wales and Scotland, revoking those provisions of the IMI regulation and retained EU law that no longer apply. In short, and as the Minister has said, the amendments introduced by this statutory instrument are technical operability changes and do not include any policy changes. However, these operability issues are a consequence of the UK leaving the single market on 31 December 2020.

I am sure that the Minister and the Committee will be pleased to note that Labour does not intend to oppose the draft regulations. However, I would be grateful to the Minister if he would address some questions. I must also express concern about the legislative landscape into which this SI is entering. The revocation of any laws, chapters or paragraphs in legislation should be done with the utmost care. As I have said, this SI has had the scrutiny of two Committees—as well as this Committee and, indeed, the assurance of the Minister’s entire Department—to ensure that there will not be any adverse implications for any organisation, public body or group of people. It is for that reason, however, that I am confused as to where the Government’s priorities and approach lie.

We accept that the SI rectifies a small area of our legislative landscape. The problem is that Conservative Members and the Government could be blowing a gigantic hole in it through the Retained EU Law (Revocation and Reform) Bill. Why is the Minister introducing this very limited and narrow SI when, at the same time, the Bill will soon be at Report stage? Why is the Bill not being used to address this issue? And why are all the EU laws and legislation that the Bill is going to tear out of our statute books not worthy of the same amount of consideration as this change? Why has this SI received the focus and attention of the Government when they are willing to have a bonfire of 2,417 other pieces of retained EU law without, it appears, any consideration? That is not just inconsistent; it is downright dangerous.

The Government’s reckless Retained EU Law (Revocation and Reform) Bill will rip up vital legislation on trade, employment, environmental protection, health and safety in the workplace, parental leave, private pensions protection and food safety. I am very grateful to the Minister for setting out the detailed implications, in very narrow areas, of this SI, yet at the same time the Government’s Bill will just tear them all apart.

[Andy McDonald]

Is my hon. Friend aware not only that employment rights and protections are in grave jeopardy with the inclusion of a sunset clause, but that all the case law will, in effect, be wiped out? There is real anxiety in the business community and among employment advisers that the whole landscape will disappear, leaving employment relationships in total turmoil. It is another added complication. Does my hon. Friend agree?

--- Later in debate ---

[Chi Onwurah]

I very much agree with my hon. Friend’s comments. I was aware that the Bill will rip up much important legislation—for example, workers’ rights to holidays and so on—and that there is immense concern in the business and the working world and among trade unions and others about that. I was not aware that it will mean that all the precedents go with it. This has to be a huge concern.

The consequences of the Bill, both intentional and unintentional, will be so broad that it is impossible for the Minister to fully know or understand them. If the Government could not see or anticipate the need for today’s SI following Brexit, I implore the Minister to consider the possible legislative nightmare that the Retained EU Law (Revocation and Reform) Bill could unleash. Does he intend or want to spend what will hopefully be his party’s last few months in government sitting through endless SI votes and debates, like this one, because that may well be the fallout from the reckless Retained EU Law (Revocation and Reform) Bill? Have the Government made an assessment of the potential implications that the Bill could have for today’s SI?

The Minister may feel that today represents some legislative progress, but while this Government consistently cause more chaos and uncertainty for British people and businesses, Labour will seek to make Brexit work. I am proud to be a member of the Labour party, the party that completed the Good Friday agreement. That was one of the most progressive political acts of the last century, bringing peace and power sharing after years of conflict and stalemate. But the Good Friday agreement was a starting point, not the finishing line, and it is as relevant today as it was in 1998. Members on both sides of the Committee must always remember that.

The amendment presented here today is in keeping with the spirit of the Good Friday agreement. It recognises and respects Northern Ireland’s sovereignty and relationship with the Union and the Republic. That is why I am dismayed and concerned that the nuance and detail of this SI may yet be undone by the Northern Ireland Protocol Bill, which takes a wrecking ball to the Brexit deal that the Government negotiated, signed and campaigned on. Not only does the Northern Ireland Protocol Bill break international law; it damages our country’s reputation and risks the integrity of the Good Friday agreement. We have heard many international concerns set out. It risks new trade barriers in a cost of living crisis, and it divides the UK and Europe as we face Putin’s war on Ukraine.

The IMI system is built on trust and mutual co-operation, principles on which I am sure we have cross-party agreement, so I ask the Minister how our colleagues in Europe and Northern Ireland can trust this Government to act responsibly when it comes to this SI when the Northern Ireland Protocol Bill is going to rip up a previous agreement and is due to be debated on Report in the other place. What impact does the Minister believe the Northern Ireland Protocol Bill will have on the SI brought forward today? Labour Members believe that we need trust and good will in order to deliver more benefits to business across the UK and Northern Ireland. We achieve this by keeping support for the Good Friday agreement.

I have a couple of questions about how the SI will work in practice. The Minister referred to it being subject to the relevant data protections. I understand that the UK’s data protections are set to diverge from the European Union’s data protections, as announced by the Secretary of State for Digital, Culture, Media and Sport. Could the Minister set out the implications that that might have for this SI? Could he also say a little bit about what protocols are in place to ensure that data sharing in Northern Ireland is compliant with broader data sharing legislation?

I am struggling to understand one point. He talked about this being under the Secretary of State for International Trade. Does that mean that that Department has access to the IMI but that that access and the data cannot be shared with other branches of Government or other Departments—or, equally, with other members of the Union?

Why has it has taken such a long time for the Government to identify this particular section of inoperable or redundant EU law? How or through what process was that identified? What steps is the Department taking to identify further sections of legislation in which there may also be technical operability issues? I hope the Minister will provide reassurances and address the concerns I have raised.

[Kevin Hollinrake]

I join the hon. Member for Newcastle upon Tyne Central in thanking the two Committees whose work preceded this debate, and I thank hon. Members for their consideration of this statutory instrument and for their contributions.

As I previously set out, the SI makes technical amendments so as to reflect the current position regarding the UK’s access to the IMI. In terms of wider debate on the Northern Ireland Protocol Bill and the Retained EU Law (Revocation and Reform) Bill, the hon. Member for Newcastle upon Tyne Central has every opportunity to raise concerns about that legislation at the appropriate time on the Floor of the House, as the Bills pass through both Houses. That is the right place to do that.

The hon. Member also said that sunsetting the legislation by the end of next year is irresponsible. Personally, I think it is irresponsible not to set a date, because timings will just drift if we do not do so. I urge her to engage with these issues within the relevant debates. She could set out her previous position on a second referendum, which I think she once called for, on leaving the European Union. Government Members are committed to making Brexit work. That is where we stand and where we will remain.

[Chi Onwurah]

The Minister has a desire to refight the Brexit debate at every opportunity. We are trying to make the SI work and are asking the questions to make it work. I ask him to please set out to us how it is going to work.

[Kevin Hollinrake]

We do not want to refight previous battles, and that is what a second referendum would open up for people. That is not where we want to be. We want to move forward, and that is what we are trying to do today.

In terms of further changes beyond those under discussion, if any are necessary they could be part of the ongoing negotiations between us and the European Commission. It is very important that we have those negotiations, but also that they take place in a framework where we have a strong position, not a weak one. That is the position we have taken.

In terms of the timing of the measures, the UK was given a right to access the IMI under the withdrawal agreement for a period of nine months in order to deal with outstanding applications for European professional cards from nurses, physiotherapists and pharmacists. The EU and the UK agreed to extend the UK’s right of access to the IMI beyond the nine-month period, to process the remaining outstanding applications. The need for that temporary access has now been resolved and we are now in a position to progress the SI. In terms of the specific timing, one of the powers used to make the instrument under section 8 of the European Union (Withdrawal Act) 2018 expires at the end of the year, so it is necessary to legislate as we are doing now right now.

With the statute book updated, the SI will provide clarity to businesses, citizens and public authorities about the sharing of data between the UK, EU member states and the European Commission

[Chi Onwurah]

The Minister talks about providing clarity. I hope he is going to address my point about the divergence of the data protection regimes in this country and the European Union, and the impact that that will have.

[Kevin Hollinrake]

That has absolutely nothing to do with this debate, so I will not get into that at all.

[Chi Onwurah]

The Minister just said that he is looking to provide clarity on data sharing. He also said very specifically that data sharing would be in accordance with the regulatory frameworks in the country, yet those regulatory frameworks are going to differ.

[Kevin Hollinrake]

This statutory instrument is about data sharing within the IMI, not within the wider context of the relationship between the UK and the European Union—that is what it deals with. The hon. Lady wants to extend the debate into areas that are not relevant to this SI, in my view, and I think it is inappropriate that we do so.

[Chi Onwurah]

Will the Minister give way?

[Kevin Hollinrake]

For a final time.

[Chi Onwurah]

Is the Minister clear, therefore, that the regulatory framework under which the data sharing will take place in this SI is the regulatory framework of the single market, and not the regulatory framework of the Department for International Trade?

[Kevin Hollinrake]

The position is that the Data Protection and Digital Information Bill, which was introduced to the House of Commons on Monday 18 July 2022, will amend the existing legislation and adapt the UK general data protection regulation to create a new, bespoke British data protection framework that is business and consumer friendly, and that keeps people’s personal data secure. We are working with businesses and other stakeholders to make sure that it is fit for purpose. But, as I say, that is not relevant to this SI.

This statutory instrument introduces no new costs, obligations or powers. As I have set out, it ensures that UK public authorities can continue to access the IMI, where necessary, in order to enable them to securely, effectively and efficiently deliver their obligations under the Northern Ireland protocol. The statutory instrument also ensures that the UK’s statute book accurately reflects the changes in access to IMI following the UK’s departure from the European Union. I commend the draft regulations to the Committee.

Question put and agreed to.