Leaving the EU: Consumer Protection

Gary Streeter Excerpts

Tuesday 10th October 2017 Westminster Hall

[Vicky Ford]

On the point about inadequate broadband—and, indeed, the mis-selling of broadband—perhaps I may bring to the hon. Gentleman’s attention the fact that during negotiations on the telecoms directive the Brits pushed for stronger regulation, to make it against the law for anyone to mis-sell broadband and promise higher speeds than they could get. The Europeans refused to introduce that measure. Brexit gives us an opportunity to take new measures on behalf of consumers, especially on issues such as broadband.

[Mr Gary Streeter (in the Chair)]

Order. Interventions should be brief.

[Mike Amesbury]

Of course, my point was about speed; I sincerely hope that we will go beyond the current Government’s snail’s pace ambition and not only match but, in time, exceed the ambition of the EU. On that point the hon. Lady and I probably agree.

I was talking about my constituents getting only 1% of what they were entitled to, but at the other end of the spectrum my constituency is also at the digital forefront. For example, Sci-Tech Daresbury is the home of the Hartree Centre, an initiative leading on the application of high-performance computing and big data. It also houses many leading digital and tech companies. Its ambition is to expand the data storage/archive capability at Hartree. Those organisations have made it clear to me that the UK cannot significantly differ from the EU in terms of future data protection laws while maintaining any kind of working relationship. It is welcome that the Government appear committed to incorporating the general data protection regulation into UK law. The lesson must be how that important aspect of EU law can be expanded into other protections. However, the risks to the UK’s position as the digital hub of Europe, from leaving the EU, remain profound. I will work closely with Daresbury and the many tech organisations based there to make sure that any adverse effects of Brexit on the services developed and provided there will be minimised.

My party is supportive of a Brexit that puts jobs first and protects the rights of workers and consumers. It is therefore vital that the Government take the issue seriously, every step of the way. It is comforting that the hon. Lady obtained the debate, as that shows that some members of the governing party realise how crucial the issue is. I commend her on doing so, and hope that her colleagues in government will respond appropriately. The safety and quality of the services and products consumed by my constituents in Weaver Vale depend on it.

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[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

It is a pleasure to serve under your chairpersonship, Mr Streeter. I congratulate the hon. Member for Chelmsford (Vicky Ford) on securing this important debate and particularly her eloquence and passion in introducing it. I also thank hon. Members present for their thoughtful and constructive contributions, which have vividly highlighted the importance of consumers to the UK economy, but also raised serious questions about what Brexit means for consumers and consumer protections.

Each month, consumers in the UK spend £100 billion in the economy, supporting local businesses, our manufacturing services and employees. Many of the consumer rights that we enjoy are embedded in EU legislation and institutional arrangements. I am disappointed by the Government’s approach to consumer concerns and by their refusal to set out the foundations of consumer protections post-Brexit.

The Government failed to mention consumer protection in their Brexit White Paper in February. They did not dedicate one of their 12 negotiating principles to consumers and consumer rights, and that barely had a mention in the Prime Minister’s 5,357-word speech in Florence. In addition, the Government continue to threaten that “no deal is better than a bad deal”, which could mean the UK crashing out of the EU and being forced to accept World Trade Organisation rules, which dictate tariffs on food of up to 62%—that is for beef—and on other goods such as cars. It will come as no shock that one third of consumers think that they will not be represented in the Brexit negotiations.

The Minister will say that the UK has played an important role in consumer protections, and I agree. The UK has often been a beacon for consumer protections in the EU and also globally, with countries across the world looking to us for our consumer protection laws, and we should be proud of that. However, consumers have been left with little assurance about whether, beyond Brexit, they will continue to enjoy the same rights and protections, or what the Government’s Brexit agenda will mean in this regard. Constituents across the country are asking, “Will it result in the UK being forced to accept chlorinated chicken from the US? What will be the overall impact on food and safety standards? What enforcement structures will be in place to support consumer protections?” There is much more they are asking about, as they do not have any clarity on those critical issues.

To begin with, there is deep concern about the current drafting of the Government’s key legislation, the European Union (Withdrawal) Bill. That Bill—in particular, clause 7—goes beyond the ability of Ministers to make technical changes and enters the murky waters of giving Ministers carte blanche powers to “prevent, remedy or mitigate” any “deficiency” in EU law, with no clear criteria about what that means. In effect, they can make whatever changes they see fit behind closed doors without proper parliamentary scrutiny. If left unchanged, that could have a devastating impact on consumer protections, with Ministers effectively able to bring about wide-ranging change on consumer issues such as food, product safety standards, approval systems and oversight of financial services. The uncertainty about the direction of consumer protections after Brexit leaves consumers in limbo about their rights and protections. This is not a question of simply copying and pasting the legislation from the EU into UK law; it is far more complicated with regard to how we apply the law.

Once we leave the EU, the Government maintain, we will be leaving all the EU bodies, so from the point of our departure, the consumer protection legislation of the EU and that of the UK are likely to drift apart, as interpretations of such legislation will differ. As a result, there is little clarity about questions of jurisdiction, conflict of laws and enforceability after Brexit, with the Government making no effort to clarify those issues.

For example, it is crucial that we maintain cross-border consumer protection so that consumers have the confidence and security that the products they are purchasing are safe. Consumers no longer operate within geographical boundaries, so a key tenet of the Brexit negotiations should be to maintain current protections but also to maintain co-operation agreements to maintain the existing rights when people are dealing with companies based in other EU member states.

As the head of consumer policy at Citizens Advice said in evidence to the Justice Sub-Committee of the House of Lords Select Committee on the European Union,

“It is one thing to say that the rule of law applies, but if there is no right to compensation when travelling abroad, or purchasing from an EU trader, if the cross-border agreements are not there to back it up it is not worth as much as it would suggest.”

We have still not heard anything from the Government about what cross-border co-operation post-Brexit will look like. Will the Minister lay out the Government’s position? Furthermore, the current UK consumer protection regime is under severe strain after seven years of Tory budget cuts to local councils. For example, the current domestic products safety regime is not fit for purpose and needs urgent reform, yet at every opportunity the Government have dismissed calls for such changes. The Government’s working group report into product safety, published on 20 July, was disappointing and refused to acknowledge that real change was needed in the product safety regime. It offered no serious proposal to ensure that proper enforcement mechanisms were in place to remove faulty goods from the market. That raises serious questions about the robustness of current enforcement regimes and their ability to withstand the pressures from the weight of EU consumer rights laws, which would be transferred into UK law. We have had no clarity from the Government about what agencies they intend to establish, how much funding that will require, or what their roles and powers will be when breaches of consumer law are found.

Warm words will not cut it. We cannot trust this Government’s vague assurances that consumer protections will be safeguarded when they will not even properly engage with consumer groups. When I asked the Secretary of State for Exiting the European Union how many times he had invited and met consumer groups to discuss negotiations on the UK leaving the EU and their implications for the consumer in the UK, his response was that Ministers and officials have met with consumer organisations such as Which?, MoneySavingExpert and Citizens Advice, and that they have plans to host a roundtable with consumer groups. All of those organisations have expressed frustration to me about the difference between engagement with businesses and with the consumer side, with the latter receiving very little attention from senior Government figures. Lip service has been paid to consumers, but there have not been any tangible outcomes in action from the Government, as no consumer and Secretary of State level roundtable or working group has been established. Finally, 16 months after the EU referendum we have yet to see a detailed plan about when this consumer roundtable, which the Secretary of State mentioned in his reply to my parliamentary question, will be held. I look forward to the Minister’s response.

[Mr Gary Streeter (in the Chair)]

Order. I call the Minister to respond. If she could leave two to three minutes for the initiator of the debate to wind up, that would be great.

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[Vicky Ford]

I thank all colleagues who have taken part in this debate, and especially the Minister for answering it. The UK has a strong history of consumer protection, and I am delighted that she has committed to its continuation with no reduction in consumer protection. I am also delighted to hear that we will continue to share intelligence with our neighbours to ensure that consumers are protected, and that we are committed to very high standards.

In this debate, food and animal welfare standards in particular were raised numerous times. Those are, of course, competencies of the Department for Environment, Food and Rural Affairs. The first time this Parliament when the Secretary of State for Environment, Food and Rural Affairs took questions from the House, I was honoured to be drawn to ask the first question. My question was whether we would maintain high standards for food and animal welfare post-Brexit; he said yes. It is a key part of consumer protection that we do not mislead our consumers. We should not mislead our voters. This Government are committed to maintaining high standards for consumer protection, animal welfare and food. I thank the Minister again for saying that those would remain priorities.

Question put and agreed to.

Resolved,

That this House has considered the effect of the UK leaving the EU on consumers and consumer protection.

[Mr Gary Streeter (in the Chair)]

We now move on to our next debate, as I see that the protagonists are here. Would Members leaving please do so quietly? This is a half-hour debate, which seems to be extremely popular; fortunately, I am not chairing it. If colleagues will take their positions, we will move swiftly on.