United Kingdom Internal Market Bill

Gavin Robinson Excerpts

Monday 21st September 2020 Commons Chamber

We have outlined our commitment to providing extensive support for businesses, including through the new trader support service, which will provide an end-to-end service and guide traders through all import processes at no additional cost. This is a unique intervention, backed by £200 million in Government funding to ensure that businesses of all sizes can draw on the support that it provides. Given those assurances, I hope that Members will feel able to withdraw the amendments.

[Gavin Robinson (Belfast East) (DUP)]

The Minister invites us to withdraw the amendments. This is the second occasion in the past week on which a Minister has stood at the Dispatch Box and held up an olive branch of potential amendments or provisions that will be brought forth in the Finance Bill. We have not seen the text of those potential provisions and we do not know their content. I invite the Minister to go a little further and explain why we should withdraw the amendment at this time, given the verbal assurances he has offered.

[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.

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[Sir William Cash]

I said, “to a degree”. Within the framework of international law, it is entirely a question of whether the degree to which it is done is commensurate with what is being proposed. The case of sovereignty goes to the heart of the extent to which we are entitled to take the action that we do.

This is less about breaking international law than about breaking the conditions in respect of state aid and in respect of the manner in which the Northern Ireland protocol would operate in the UK with respect to breaking the issues of contract and of the manner in which people work in this country. We are faced with a critical problem, the effect of which is that if we were not to pass these clear and unambiguous clauses, we would find that we were subjected to EU laws—that we were subjugated to them—in a way that would ensure that we would not be able to compete effectively throughout the world or support the workers of this country, particularly in the context of covid.

Section 38 was passed by every single person in this House and by the House of Lords. There is no doubt about that. The notwithstanding provision is inviolate; it is in an Act of Parliament. These enactments do the necessary job to ensure the future prosperity and competitiveness of this country, and the opportunity for its people to move forward in an enterprise society to enable future generations after Brexit to guarantee their jobs, their businesses and their future.

[Gavin Robinson]

It is a pleasure to follow the hon. Member for Stone (Sir William Cash), who has that classic flair of oratory, as when he said that some Members may be somewhat bothered to some degree. Whether we agree or disagree with him, he raises a smile through the Chamber.

I rise to speak in support of the amendments tabled by my party. Before I do, I want to reflect on the comments from the right hon. Member for Maidenhead (Mrs May). I regret some of the comments she made about the implications for relationships in Northern Ireland and the consequences associated with the Bill. Be it her contribution or many others on Wednesday and no doubt later today, there is an awful lot being said that is not only at cross purposes across the Chamber but completely misses the point. The right hon. Lady embarked on a political strategy that was encapsulated by the phrase “Brexit means Brexit”, and for nine months there was no greater clarity than that. Here we are four years later, and we know that what was outlined as a national aspiration and what was agreed to in a referendum by the people of this country is not being delivered for the people of Northern Ireland.

Members will remember the week in December 2017 when there was a flurry of activity around the formulation of what became the UK-EU joint report. They will also remember the work that had to go into getting provisions placed in that joint report at paragraph 50, which not only represented the principle that it was of no concern for the European Union to impede or impose upon the integrity of a member state, but stated:

“the United Kingdom will ensure that no new regulatory barriers develop between Northern Ireland and the rest of the United Kingdom, unless, consistent with the 1998 Agreement, the Northern Ireland Executive and Assembly agree… In all circumstances, the United Kingdom will continue to ensure the same unfettered access for Northern Ireland’s businesses to the whole of the United Kingdom internal market.”

That was in paragraph 50 of the joint report, but it was never honoured in the withdrawal agreement.

[Karen Bradley (Staffordshire Moorlands) (Con)]

The hon. Gentleman is making some powerful points. Does he recall that, when the first version of the European Union (Withdrawal) (No. 6) Bill was brought forward before the election last year, I and others tabled an amendment that would have put paragraph 50 of the joint report into the Bill, but that was not accepted by the Government?

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[Gavin Robinson]

It was not accepted by the Government, but the right hon. Lady was a member of the Government who brought forward three iterations of a withdrawal agreement that did not honour that provision. That provision was not honoured in the earlier iterations of the withdrawal agreement.

[Karen Bradley]

The hon. Gentleman will recall that there was an addendum to the withdrawal agreement that was agreed and would have been lodged in the international court that would have made paragraph 50 part of an international agreement, but that was rejected by this House.

[Gavin Robinson]

The right hon. Lady may be right on that point, but here we are yet again, seeking to legislate domestically within the United Kingdom to right the wrongs of a negotiation that should never have advanced in the way that it did. Our Government fell into the trap of trying to provide an answer when they did not know what the problem was. They did not know what the future trading relationship was going to be. They did not know what the overarching trade deal was going to be between the United Kingdom Government and the European Union, and yet they set out to solve the problem of the Irish border without knowing what the overarching provisions would be. That made no sense, and it led us to the position we are in today. Here I am this evening, asking Members to consider provisions that should be part of this Bill but are not and saying that there are aspirations associated with this Bill that should equally apply to Northern Ireland—the whole of the United Kingdom internal market, as stated in the joint report—but do not. That is hugely regrettable.

I spoke on Wednesday about clause 46, on the provision of financial aid, and my party’s amendment 22 to clause 47, to ensure that there was no restriction on such aid for Northern Ireland businesses. The response from Government was, “That’s great. Thank you very much. Let’s consider it on Monday.” Here we stand on Monday. I have enormous respect for the Minister, but we are hearing, “Don’t worry about your amendments. We’ll consider them in the Finance Bill.” There remain important concerns about the European Union state aid rules that will apply in Northern Ireland. There is nothing in this Bill, there is nothing in the Government’s approach, and there is nothing in their plan that seeks to amend or fetter the rule of EU state aid rules within Northern Ireland.

[Ian Paisley]

Can my hon. Friend explain to the House whether he believes predatory actions from the Republic of Ireland could in fact prevent Northern Ireland from having a free port in his constituency, a free port operational in the constituency of Foyle or a free port operational out of Warrenpoint? Preventing those policies, which would be state aid policies, would have a detrimental impact on trade, jobs and people’s prosperity in Ulster.

[Gavin Robinson]

I am very grateful for the question, and I know that the Government would respond by saying “Look in the Bill. It is for the Secretary of State and no one else to raise issues or notify the European Union on state aid issues.” I am concerned not just about the operation of that provision, but the chilling effect that the application of state aid rules from the European Union has, when the Government consider the potential support that they could give to businesses in Northern Ireland. Again today, we hear that it applies only to goods and electricity, but I think it applies to services of those manufactured goods as well. I think there is a financial threshold of around half a million pounds, but much more clarity is required from the Government on the application of state aid rules in Northern Ireland, because all I hear is an effort to make sure that the EU does not encroach on GB affairs without any consequential understanding or recognition of—or aspiration to solve—the problems that we will face in Northern Ireland.

[Sammy Wilson]

While the Bill may state that it is up to the Secretary of State to notify the European Commission of any state aid, there is absolutely nothing to stop the Government of the Irish Republic—or indeed, another manufacturer who feels aggrieved that state aid has been given to firms in Northern Ireland that impinges on its ability to compete with those firms—taking a case to the Commission and going through the European mechanism at that stage. Once that happens, we have no representatives on the Commission or the Court, so it would be a one-way ticket as far as the complainant was concerned.

[Gavin Robinson]

My right hon. Friend is absolutely right, and I mentioned the chilling effect. Arguably, if the UK Government and officialdom in Whitehall had not offered such religious observance to EU regulations over the past 40 years, this country would not have agreed to leave the European Union. We know that of other countries in the European Union, France has, en français, an à la carte approach to which regulations are important and which are not. The religious observance of regulations in this country has caused that chill factor and it is why people built up frustrations and resentment on the application of those regulations over the years. There is a fear that that could happen in this case.

Let us consider the Addison Lee case on state aid application of rules in this country. Addison Lee wanted to use bus lanes in London, but it was told it could not use them. Addison Lee took a case on the state aid implications because it thought the state was unfairly given an advantage over Addison Lee in London. The UK Government’s position was “Catch yourself on! It is a UK-funded public service versus a UK private business, and EU state aid rules do not apply” but the EU resolved that, yes, the rules were engaged because Addison Lee could equally have been owned by representatives from another member state. That is how the question was resolved, and Addison Lee can now use bus lanes. I have no doubt that the far-reaching implications of state aid law would open the opportunity for claims from elsewhere.

[Jim Shannon]

To back up my hon. Friend’s argument, the farming community and businesses across the whole of Northern Ireland have expressed their great concern about the different levels of state aid. They are not only referring to food, because subsidy comes in many forms. My constituents tell me that they are also concerned about being precluded from the tax reliefs available on the mainland, because potentially our competitive ability may be greatly hampered by that discrepancy. Does my hon. Friend agree?

[Gavin Robinson]

I do agree. I know that the Minister went through a number of the amendments we have tabled and said, “Look, there are provisions about direct and non-direct discrimination and those still apply.” However, where a business is competing in a sector for which there are state subventions and subsidies in England, Scotland and Wales but where those same subsidies and subventions are precluded in Northern Ireland, there will be discrimination. There will be an unfair playing field in the economy of this internal market, and that square is not circled in this Bill. There are no satisfactory answers from the Government to say, “If we run with the implication of EU state aid rules in Northern Ireland, and if we support businesses in GB but not in Northern Ireland, how is there not unfair competition? How are there not direct or indirect discriminatory outworkings of the provisions of this arrangement?”

I want to draw the Minister’s attention to a useful document, which I hope he will spend time considering. I refer to the Northern Ireland stakeholder response to the UK’s research and development road map consultation, which considers clearly some of the things the Government could do under clauses 46 and 47 in providing financial support for sectors in Northern Ireland. We hear an awful lot in this Chamber about doubling down on levelling up. We know that research and development support across the UK is hugely uneven, and that the majority of that money goes into the south-east of England, to London and to the east of England, and that Northern Ireland and other regions throughout the UK do not get their fair share.

The stakeholder response is a collaborative piece of work by Belfast City Council, Belfast Harbour, Queen’s University, Ulster University and Catalyst Northern Ireland. It asks that the Government ring-fence R&D support, with a minimum of £250 million per year for Northern Ireland; that they create bespoke arrangements that allow for flexibility of funds for the Northern Ireland economy; that they appoint regional delivery partnerships; and that they are considering an ARPA—advanced research projects agency—for the cyber-security hub in my constituency, our FinTech hub, the advanced and high-end engineering and manufacturing in my constituency, and the aspirations of a digital free port in Belfast. That ARPA opportunity is well worth considering and it is well worth showing that even though we may have an uneven playing field, our Government are serious about doubling down on levelling up and will extend support to Northern Ireland.

I would love to go through a lot of the amendments, but I am conscious that I have gone over my self-imposed timeline, so I will just discuss the importance of amendment 68, which proposes a change to clause 40. It proposes that Northern Ireland Assembly consent would be required for any new arrangements or requirements for goods traded from GB to NI, and new requirements would not come into force unless they were agreed with the consent of the Assembly. It would also provide that:

“No additional official or administrative costs”—

arising from new requirements—

“may be recouped from the private sector.”

The Minister referred to the trader supporter service, and we know that the Government have said that there are going to put £355 million into that service at this stage. Huge questions remain unanswered for businesses in Northern Ireland, which have heard that they have unfettered access to the UK internal market. Some understand that that promise is one way; some understand that that promise is NI to GB. Some do not understand that there are huge constraints on GB to NI trade, because the Government gave that power away in the withdrawal agreement. They passed it to the Joint Committee and therefore they are only half of the equation. We know that the Joint Committee is considering what goods are at risk, but businesses are trying to access goods in the rest of GB and their suppliers are saying, “Are we able to send this to you? Will we be able to sell you these goods? Will we be required to file exit declarations? Will there be a cost for us doing business with you in Northern Ireland, one that we are not prepared to meet or you are not prepared to pay?” If that is the case, it makes a whole nonsense of this internal UK market.

[Stephen Farry]

Will the hon. Gentleman clarify for the record whether, if the amendment were to proceed and the consent of the Northern Ireland Assembly were required, that would constitute a unilateral breach of the protocol in how that consent would be given? Could a petition of concern be lodged against it, thereby giving his party and anyone else—Members of Traditional Unionist Voice, for example— a veto over the way forward?

[Gavin Robinson]

The first aspect of that question is the intended breach, and the answer is clearly no, because amendment 68 talks about “new requirements”, and if the hon. Gentleman reads the content of the amendment, he will see that. The Northern Ireland Assembly has cross-community voting mechanisms not to provide vetoes but to encourage consensus. The hon. Members on the Benches to my left know exactly why those provisions were brought in, and they know the importance of them, but they tend to believe that they are worthy of use only when there is an issue for which they wish to use them. That is hugely regrettable. When I talk about the consent of the Northern Ireland Assembly, I know that there are cross-community mechanisms to ensure that we get to a place of consensus. I do not believe in stalemate or in logjams. I have spent my political life trying to resolve them. I hope that when I contribute on issues in this House, people respect the fact that, although I do not necessarily agree with everyone, I try to get to a place where we can agree.

Businesses in Northern Ireland that buy from GB and wish to sell to GB want to know what their trading position will be. They were promised the best of both worlds, yet day after day they are learning about the bureaucratic and administrative burdens that are going to be placed upon them. They want answers. I know that the Minister will respond thoughtfully to the debate, and that he will pick up on some of the additional issues that I have raised on amendment 68. I hope he does that. I hope he offers some clarity and comfort for businesses in Northern Ireland, and I hope he outlines just how the Bill will assist them. I believe that it will not do so, however, so I hope that he gives us some clarity as to what steps the Government are prepared to take in the Finance Bill to resolve these overarching and burdening issues, which remain unresolved, through the Joint Committee.

[Sir Robert Neill]

This has not been the most edifying spectacle for the House of Commons over the past few days, but I hope that, at the end of the day, we can find a constructive way forward. I say that it is not edifying because, although much of the purpose of the Bill is important and valuable, to act in contemplation of something that most of us would regard as unworthy—namely, to breach an international obligation—is not something that one should ever seek to discuss lightly. Equally, it is not something that can ever be an absolute, because there can be certain extreme and pressing circumstances where such a derogation is permissible, but the bar has to be a very high one. That is why the discussions that have taken place between some of us and the Government, and the Minister’s response, are important, as far as my thinking is concerned. On the face of it, as my right hon. Friend the Member for Maidenhead (Mrs May) observed, without safeguards and caveats, clauses 42, 43 and 45 would without more ado be unconscionable, and we could not support them.

I want also to speak to my amendment 4 and the Government’s amendment 66, which I hope will provide a means of reconciling that position with the need to find a constructive way forward.

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[Claire Hanna]

It is funny, but we do not hear so much about the alternative arrangements, and this from a party that has us all queuing around the estate because it could not put in place any alternative arrangements for voting. We heard a lot about them for a lot of years, but the magic sovereignty dust that was supposed to solve all of our problems has not yet been produced.

However, it is true that the choices, and they are very difficult choices, are being forced by that Government. We wish that the Government had picked the first of those options. We wish they had picked a higher degree of alignment with the EU, but they did not, and they cannot keep reopening the wound every time they try to deal with the contradictory promises they made. Whatever Bill the Government bring in, the choice will be the same. You cannot opt out of the biggest free trade bloc in the world and then feign shock when the trade is not completely clear, and you cannot refuse to do the first of the two things and then pretend that they are going to happen.

To suggest that any of this is about protecting the Good Friday agreement or the people of Northern Ireland is beyond a parody. We have worked intensively with businesses and other parties to try to address some of the barriers that we accept will exist, but we have to remind the House and others that it is this Government’s choice and the failure of the DUP for the last three years to do anything about those choices that has brought us to this point, and people must own those decisions. The Joint Committee is the place to address those difficulties and those operational issues, and there are the dispute mechanisms.

We see and we very much acknowledge the anxiety that east-west barriers to trade create, but even with the politics and the identity issues stripped out, it is a regrettable fact that the sea border is more practical and more manageable than a border across the island of Ireland, given that there are three such points of entry into Northern Ireland and 108 border crossings between the Republic of Ireland and Northern Ireland. I do not say that to be hurtful; I say it because it is true.

I bit my tongue several times during the speech from the hon. Member for Belfast East (Gavin Robinson), whose opinion is always considered. I bit it for a number of reasons. Not only because of course your party opposed giving a consent mechanism to the Northern Ireland Assembly on article 50 and opposed giving consent on the sequencing, but because you speak about the sequencing. We have seen what has happened with the gamification of the sequencing and the gamification and using of Northern Ireland as a pawn by the UK Government in order to achieve outcomes and to justify no deal. The last thing I had to bite my tongue about was your saying that the petition of concern is not used as a veto. Members can look it up, but your party has used it 86 times. It used it numerous times to veto, for example, equal marriage for absolutely no reasons of offence to the United Kingdom.

[Gavin Robinson]

I think the second-last point—the penultimate point—was right, and I agree with the hon. Member. However, on the petition of concern and the cross-community voting mechanisms, she knows the reason they are there. She does not like it when people use them for reasons that she does not agree with, but she knows the reasons they are there. We were not the only ones to use it. We do not have the power to use it by ourselves. But the aspiration for us all must be building consensus.

[Claire Hanna]

It certainly should. I am not going to rehearse the figures, but I believe that the Democratic Unionist party used the petition of concern approximately two thirds of the time. You do not have the power to use it now because the electorate took that power off you, because it was wielded inappropriately so many times. I am acknowledging very clearly the barriers and impediments that this will create and the intentions of many to try to address those, but whatever the value of trade east-west—I see and acknowledge that value, but it is often cited by people who seem to know the price of everything and the value of nothing—the reality is that there are more people and more units that move up and down the island than move between the two islands. In fact, after 1 January next year, there will be more external crossings into the EU on the island of Ireland than there will be in the rest of the continent’s borders.

Those who support the Bill and the last few years of poor decision making have to acknowledge the intellectual and moral failure in a position that says that a border down the Irish sea is absolutely impossible technically and impossible to bear politically, but that somehow forcing one on the island of Ireland is dead-on, that we can deal with that with a bit of administration and that people are being overly sensitive. Imperfect though I acknowledge the protocol is, it is the baseline protection against the border, so repudiation of the protocol therefore makes a border a lot more likely, and inevitable.

I agree with the right hon. Member for Maidenhead (Mrs May)—we believe that the clauses we are dealing with today are irredeemable—and I appreciate her interventions very much. Over the few years that she served as Prime Minister, while I frequently did not agree with what she said, I could always acknowledge that she was trying to respect the sensitivities. I respect those who are trying to manoeuvre their party to the right place. I know that that is a very difficult thing to do, particularly when 21 decent MPs were sacked for refusing to vote for the previous Bill, and now they will be sacked if they do vote for the withdrawal agreement—I think that is the sequencing of things.

The amendments that we have tabled seek to protect the protocol and put the commitment to the Good Friday agreement into the Bill. While I appreciate the Minister’s words, my hon. Friend the Member for Foyle (Colum Eastwood) has made it clear that the words do not mean anything if you refuse the opportunity to give it legislative effect. Amendment 47 tries to put in place an understanding and an assurance that all of the Bill’s operation will be compatible with all the legislation that underpins the Good Friday agreement. While the UK’s intention is clear—I accept what it is trying to do, but I think it is doing it inappropriately and I do not think it will work—it is about rejecting EU jurisdiction, and the fact is that because of the international treaty that is the Good Friday agreement, international law has jurisdiction in Northern Ireland. That is welcome, and the rights and safeguards in the equality of opportunity section of the Good Friday agreement confirmed the incorporation of the convention on human rights into Northern Ireland law, with direct access to the courts and remedies for breach of the convention, including power for the courts to overrule Assembly legislation on grounds of consistency. That point is echoed again in strand 1 of the agreement, and it must be very clear that my party, certainly, could not and would not have signed up to the Good Friday agreement without those commitments, but this Bill casts them into the wind.

It is clear that we are not talking about narrow and specific breaches. These are going to be open-ended and unchecked powers, and there will not be any qualifications or consultations to test their basis. I sought assurances on Wednesday night from the Minister that there would be limits to the powers, and I did not receive that assurance.

Members may think that this is all a big game of chicken, or a negotiating strategy or whatever with the EU. I urge them to remember the words of the late John Hume, a former Member of this House, who said very clearly, “Victories are not solutions”. The agreement that he designed talked about the obligations of the British and Irish Governments to promote the harmonious and mutually beneficial relationships between the peoples of these islands. I dearly hope that that can somehow still be our future. We are all in the business of trying to deliver solutions for our constituents. I appreciate that some of you are trying to deliver a Brexit and your Brexit deal, however ill-advised I think that is. I am trying to deliver stability and reconciliation in Northern Ireland, but I believe your Bill prevents both of us from proceeding.