United Kingdom Internal Market Bill

Colum Eastwood Excerpts

Monday 21st September 2020 Commons Chamber

[Mr Walker]

I absolutely hear the hon. Gentleman’s concerns. I have made the point about what we have said in the Command Paper and what the Prime Minister has referred to in respect of the Finance Bill.

Amendment 69 seeks to ensure that there would be no new costs for a Northern Ireland business to access or sell in the market. The UK Government have already committed in legislation to delivering unfettered access for Northern Ireland businesses, including through the Bill, which will apply the principles of mutual recognition and non-discrimination to qualifying Northern Ireland goods, thereby ensuring that they can continue to be sold in the Great Britain market in the same way as now. The amendment is therefore unnecessary.

Amendment 70 seeks to ensure that goods moving from Northern Ireland to Great Britain through Ireland will benefit from unfettered access. I reassure Members that we recognise the importance of trade from Northern Ireland to Great Britain that moves via Dublin to Holyhead. We are currently engaging with businesses and the Northern Ireland Executive on the long-term means for delivering qualifying status for unfettered access. It would be wrong to pre-empt the outcome of that consultation, so the Government cannot accept the amendment.

On amendment 71, the Government have been working and will continue to work closely with the Northern Ireland Executive on the implementation of the protocol, including on unfettered access, but we do not agree that a restriction on the Government’s powers to make regulations effectively would be justified.

We resist amendment 72 on the basis that it is legally unnecessary. The current wording already encompasses distortions of competition between persons supplying goods or services in the course of a business within the UK internal market. Such wording is already sufficient to cover the regulation of subsidies that would have the effect of making Northern Ireland businesses less competitive in the Great Britain market.

Although the Government agree with the spirit of amendment 78, the whole Government are acutely aware of the need to maintain Northern Ireland’s integral place in the UK internal market, which is already referenced many times elsewhere in the Bill, so we do not believe the amendment is necessary.

On amendment 79, I understand Members’ concerns and support mutual recognition and the non-discrimination principle, but the exception to mutual recognition that we have introduced for chemicals is there to allow the relevant authorities to respond to local factors. Authorisations granted by the EU after the end of the transition period will not take local conditions into consideration. I emphasise that the authorisations relate to the use of substances of very high concern. It is important that the Government and devolved Administrations can take local factors into account when they decide how to protect human health or the environment from the significant risks posed by such chemicals. I therefore urge Members to withdraw or vote against the amendment.

On new clause 7 and amendment 45, I want to reassure Members that the Bill includes provisions that are there precisely to protect the essential basis of the peace process, by ensuring that, regardless of whether further agreement is reached in the negotiations, there will be no hard border between Northern Ireland and Great Britain, and that Northern Ireland businesses will continue to benefit from unfettered access to the rest of the UK market when the transition period ends.

I can also reassure hon. Members that our commitment to protecting the Belfast/ Good Friday agreement of course includes protecting north-south co-operation in areas specified under that agreement, and the protocol is clear on that. That commitment is already enshrined in UK legislation: in section 10 of the European Union (Withdrawal) Act 2018, and through our continued support for this strand of the Belfast/Good Friday agreement throughout the process of exiting the European Union.

[Colum Eastwood (Foyle) (SDLP)]

Can the Minister explain how people in Northern Ireland can have any confidence that this Government, who said only the week before last that they would break international law, will not break or undermine the Good Friday agreement, which of course is an international treaty?

[Mr Walker]

As I have said repeatedly, we are absolutely committed to the Good Friday agreement, and I can give the hon. Gentleman an illustration of that in UK law on the very next clause. I can assure him that amendment 48 is simply unnecessary. The protocol guarantees that there will be no hard border on the island of Ireland under any circumstances. We are fully committed to delivering on that and no power in the Bill makes any change to that. We have already included in law our commitment not to

“create or facilitate border arrangements between Northern Ireland and the Republic of Ireland after exit day which feature physical infrastructure, including border posts, or checks and controls, that did not exist before exit day and are not in accordance with an agreement between the United Kingdom and the EU.”

That is set out in section 10(2)(b) of the European Union (Withdrawal) Act, which I was pleased to take through the House. For those reasons, the hon. Gentleman’s amendments are unnecessary and I urge him not to press them.

On amendments 43 and 47, I can offer hon. Members an assurance that the recognition and protection of rights are fundamental values of the UK. Our human rights framework offers comprehensive, well-established and effective protections within a clear constitutional and legal system. The Bill is compatible with the European convention on human rights, and the Minister who presented the Bill has given a certificate of compatibility, pursuant to section 19(1)(a) of the Human Rights Act 1998, in the usual way. We remain committed to the ECHR, as we have made clear time and again.

Further on amendment 47, the Government do not envisage any circumstances in which the powers set out in clauses 42 and 43 could be used to amend the Northern Ireland Acts of 1998 and 2006. That renders the amendment unnecessary. For this reason, the Government are not willing to accept the amendment. I hope that hon. Members will be reassured by our commitment on this very serious matter and will not press them.

New clause 6 would require the Government to

“use their best endeavours to seek through the Joint Committee…the disapplication of export declarations and other exit procedures”.

I appreciate the thought and sentiment behind the new clause, but I am happy to say that there is no need for it because, as I have already set out, the Government are committed to implementing the withdrawal agreement and the Northern Ireland protocol. We are continuing to work with the EU in the Joint Committee to resolve outstanding issues with the protocol, including export declarations. Although well intentioned, the new clause is unnecessary and I urge hon. Members to reject it.

I will now turn to the other amendments on our safety net clauses pertaining to subsidy control. Now that we have left the EU, we have the opportunity to design our own subsidy control regime in a way that works for the UK economy. My right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy set out the Government’s plans in this regard in a written statement to the House on 9 September. Clauses 43 and 44 seek to mitigate the risks that stem from the European Commission imposing a broad interpretation of article 10. Ministers will still have respect for the rule of law and human rights when making regulations using these provisions, which is why amendment 56 is unnecessary. I remind the Committee that the purpose of the provisions in clause 43 is to strengthen our legal safety net and ensure that it is the Government’s interpretation of article 10 that UK public authorities must follow. That is why we must reject amendment 58.

Amendment 60 would amend clause 44 by limiting the scope of the Secretary of State’s interpretation of article 10 when notifying possible state aid to the European Commission. Given the complex and novel nature of the application of EU state aid law through the Northern Ireland protocol, it is the Secretary of State who is best placed to interpret and then make any possible state aid notification to the European Commission. The amendment would require the Secretary of State to ignore the safety net that the Government have proposed when making such a notification.

I will deal briefly with amendments 31 and 32. I recognise the spirit of the amendments, but I have to say that they are simply not necessary. An assessment of the legal implications of the clauses has already been provided in the Government’s statements of 10 and 17 September. Nor is there any need to make regulations defining “incompatible” or “inconsistent”, because these are self-explanatory terms. There can be no serious doubt what they mean and no further definition is required. The true intention of the amendments may be to seek to provide another point for parliamentary debate. If that is the case, I trust that the hon. Members who have tabled them will support Government amendment 66. On that basis, I urge them not to press the amendments.

--- Later in debate ---

[Kirsten Oswald]

I thank the hon. Member for that intervention. The short answer is no. Regrettably, I do not believe the Prime Minister, on this or other matters.

The Prime Minister said at that point:

“We have to protect the U.K. from that disaster”:

a disaster—and that is his word, not mine—that was negotiated by him and the same adviser as he has now. The Prime Minister visited Northern Ireland last month and talked of close co-operation between central and devolved Governments, but in the least surprising news of the day, certainly to viewers in Scotland, he did not engage with anyone outside Westminster in the development of his Bill. He excluded all of the devolved Administrations from the process of developing a so-called single market through the United Kingdom—plus ça change. Despite the clear relationship between this Bill and the peace process, as well as not engaging with the Northern Irish Executive, the Prime Minister failed to engage with the Irish Government. Despite the clear importance of doing so, he just breenged on regardless. We know why there was no engagement. It is because this shabby Bill—his shabby Bill—had to be put together out of sight of people that the Prime Minister could not control, people with respect for the rule of law and for accountability.

The SNP amendments would ensure that this Parliament would receive an assessment of the impact of any future action on these matters on the UK Government’s obligations under international law—a proper assessment, not the usual triumph of blustering bombast over good judgment by the Prime Minister. The people of Northern Ireland deserve better from the Conservative party, and our amendments recognise that. How can businesses and communities plan with any confidence when their future depends on the internal battles of a party that shows such scant regard for the rule of law?

[Colum Eastwood]

There has been a lot of talk in recent weeks about consent. The hon. Member rightly says that the devolved Administrations were not spoken to at all about this Bill. With all the talk about consent, it might be useful for the House to know that the Northern Ireland Assembly has just voted in favour of the withdrawal agreement—in favour of sticking to the agreement that the British Government have made with the European Union, and that includes the Northern Ireland protocol. It is the voice of Northern Ireland and it is saying very clearly that this Bill is wrong.

[Kirsten Oswald]

I thank my hon. Friend that intervention. That is a key point for us. How can anyone trust a Government who do not stand behind the agreements they negotiate—a Government who cannot even agree with themselves?

The Prime Minister’s approach has led to several senior legal figures making a sharp exit. Sir Jonathan Jones, the head of the Government’s legal department; Lord Keen, the UK Government’s most senior adviser on Scots law; and David Melding, Shadow Counsel General in the Welsh Senedd, have all walked away. We have heard about Lord Keen’s letter of resignation, but it was particularly telling in respect of the matters that are before us today. He said:

“I have endeavoured to identify a respectable argument for the provisions at clauses 42 to 45 of the bill, but it is now clear that this will not meet your policy intentions.”

That is a damning condemnation from a former chair of the Conservative party in Scotland. No Member representing a Scottish constituency can defend these clauses—or, in fact, this Bill—and expect to be taken seriously when they claim to stand up for Scotland in this place.

We have also heard that the Sir Declan Morgan, the Lord Chief Justice—Northern Ireland’s top judge—warned that when Governments break international law, that

“might undermine…the administration of justice.”

That should concern us all. Even the hon. Member for Gillingham and Rainham (Rehman Chishti), who is a barrister, felt the need to resign as the Prime Minister’s special envoy on freedom of religion. These are telling actions and words that should give the Prime Minister pause for thought and reflection. This Bill is a grubby power grab that we cannot and will not support, and this part, as it stands, hangs like a badge of dishonour around this Prime Minister’s term of office—however long or short that might be.

Unfortunately, the Prime Minister’s approach is being propped up by those with somewhat flexible standards. The Attorney General’s take could most charitably be described as mince, and the Lord Chancellor says he will resign only if the Government break the rule of law in a way that is “unacceptable”, which obviously, for a Law Officer, prompts the question: what is an acceptable way to break the law?

What of the effect of the Bill on the UK and Northern Ireland? In October last year, when he was still trying to convince us that he had negotiated a great deal, the Prime Minister said of his withdrawal agreement Bill:

“For those who share my belief in the transformative power of free trade…a new deal, enabled by this Bill, will allow us to sign free trade agreements around the world.”—[Official Report, 22 October 2019; Vol. 666, c. 830.]

By using this Bill to trash that deal, the Prime Minister has again exposed the ethical vacuum at the heart of his Government and undermined trust around the world—and all the time he has singularly failed to deliver what is needed by Northern Ireland. As Professor Katy Hayward of Queen’s University Belfast put it,

“the one thing most hoped for from this bill—certainty—has become an even more distant prospect.”