Draft Product Safety and Metrology etc. (Amendment etc.) (EU Exit) Regulations 2019

Gill Furniss Excerpts

Tuesday 12th March 2019 General Committees

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

It is a pleasure to serve under your chairpersonship, Mr Gray. We are 17 days from our departure from the European Union. It is perhaps no wonder that statutory instruments are being rushed through Parliament. Once again, the Minister and I are here to discuss a statutory instrument that makes provision for the regulatory framework after Brexit in the event that we crash out without a deal. On each such occasion, my Labour Front-Bench colleagues and I have spelled out our objections to the Government’s approach to secondary legislation. The volume and flow of EU exit secondary legislation is deeply concerning in respect of accountability and scrutiny.

The Government have assured the Opposition that no policy decisions are being taken. However, establishing a regulatory framework inevitably involves matters of judgment and raises questions about resourcing and capacity. Secondary legislation ought to be used for technical, non-partisan, non-controversial changes because of the limited accountability it allows. Instead, the Government continue to push through contentious legislation with high policy content via this vehicle. As legislators, we have to get it right. These regulations could represent real and substantive changes to the statute book and, as such, they need proper, in-depth scrutiny. In that light, the Opposition would like to put on the record our deepest concern that the process for considering these regulations is not as accessible and transparent as it should be.

Today, we are focusing on the SI on product safety and metrology, which has been called a “beast of an SI”, to quote a story in The Times on 12 February. It is 636 pages long, weighs 2.5 kilos and puts together 11 issues that would usually be in separate documents to be sifted through. The Secondary Legislation Scrutiny Committee was damning about the length and scope of the SI and the Government’s approach to bringing it to Parliament. It notes that

“the exceptional size and complexity of the instrument inhibit effective parliamentary scrutiny of the proposals (both by this Sub-Committee and by the House in debate), carry a considerable risk that the whole instrument may have to be withdrawn if a single serious drafting error has been made (as happened in this case), and reduce the accessibility of the legislation. We find that the Department may have chosen the approach for its own convenience, rather than in the interest of Parliament or those affected by the proposals”.

I appreciate the Minister’s attempts in the last few days to bring forward more information to help us scrutinise the draft regulations, but those attempts cannot justify the size and scope of this secondary legislation. It risks setting a precedent, and risks the democratic scrutiny that is vital to bringing about new legislation. In light of this, will the Minister make a commitment that this does not set a precedent for bundling significant changes into one SI in the future?

The statutory instrument relates to a no-deal scenario under which the UK leaves the EU without a deal. Despite the Prime Minister’s claims in October 2017 that leaving the EU would not negatively impact consumer protections, the Government’s own no-deal analysis wholly contradicts that. There is serious concern and uncertainty about the impact of a no-deal scenario on consumer protection, as it may essentially water down 40-plus years of progress in this area. Major consumer groups such as Which? have come out strongly against a no-deal Brexit, arguing that it could be catastrophic for consumer protections, many of which are intrinsically linked with the EU.

The SI attempts to transfer the rights and regulations from EU law into UK law, and in the process to iron out some of the deficiencies that would arise as a result of the UK leaving the EU. Under a no-deal scenario, this is a necessary piece of legislation to ensure that we continue to enjoy important consumer protections. I do not dispute that. However, further scrutiny reveals a few problems. First, the SI proposes that following our departure the UK will no longer be able to use the CE mark to identify safe products. That will be replaced in the UK with a new “UK conformity assessed” marking—the UKCA. The Government have said that they will continue to accept the CE mark until further notice. Will the Minister outline what assessment her Department has made of the timeframe for doing that?

Furthermore, the CE mark is a trusted and established mark that gives consumers the confidence to purchase products. That is a basis of a healthy economy: one where consumers have trust that the products they buy are safe. It will take significant work to bring the UKCA to the same level of credibility. What resources are there and what actions are the Government taking to ensure that people are aware of the new UKCA marking?

Furthermore, what discussions have the Government had with the European Commission about it accepting the UKCA mark in a no-deal Brexit, given that if it does not, there will be no incentive for foreign manufacturers to have their products certified in the UK? Rather, they will get their CE marking, assured that it will be accepted in the UK. What assessment have the Government undertaken of the EU not recognising the UKCA marking, and the impact this will have on consumer confidence and business activity in the UK?

Another point of contention is market surveillance following the UK leaving the EU. The UK will lose access to RAPEX, the EU’s rapid alert system, and the information and communication system on market surveillance, and replace them with a UK-based database on market surveillance to help us remove unsafe goods. Information sharing is a vital element of our continued good consumer protection. The RAPEX system is a good example of UK co-operation. This SI and the Government’s failure to secure a commitment on RAPEX risk losing the vital information sharing that has been critical to the safety of products across the EU.

We know that the increased transfer of responsibilities to UK authorities will increase the workload of the extremely overstretched trading standards bodies, which have suffered cuts of 40% since 2010. What assessment has the Minister made of the impact of a no-deal Brexit on local trading standards and their workload? Furthermore, what discussions has the Minister had about securing further resources for trading standards bodies and other enforcement bodies, so that consumers are reassured they will be safe in the event of no deal? I have consistently asked the Minister that question. Has she taken steps to make such assessments? It is vital that we are aware of the cost to local enforcement bodies so that we can plan ahead.

The explanatory memorandum outlines that an impact assessment was made and an informal consultation was undertaken with cross-representation of stakeholders, including trade associations and other industry representatives. It is suggested that there is no significant impact on business and other organisations. On the same page, it contradicts itself by suggesting that familiarisation costs will impact around 241,000 businesses to the tune of some £19.6 million and a further £1.2 million for cosmetic products specifically. In addition to the costs a no-deal Brexit would have for business, even the familiarisation costs are not insignificant, particularly for small businesses with very tight margins.

Furthermore, I am sceptical about the calculations. It is suggested, for example, that the assessment of the impact is based on a corporate manager or director taking three hours to familiarise themselves with the new legislation. I simply suggest to the Minister that it may take far longer than three hours for a manager to read and digest all the information in the 600-plus pages and share it with staff across the organisation. If the regulations pass today, what plans does the Minister have to bring the details of the SI to the public and particularly to the businesses it affects in bite-sized and understandable language to make it easier for businesses to familiarise themselves with it?

I have spoken to many consumer bodies that have been seriously concerned about the lack of engagement from the top levels of Government during the Brexit negotiations. Consumers are at the heart of our economy, yet there has been little interaction with consumer groups throughout the Brexit process. It is an indictment of the way in which the Prime Minister has overseen the negotiations. It is suggested that there was an informal consultation with groups. Will the Minister provide a list of all the organisations that took part in the consultation process and the nature of those meetings?

I conclude by making it clear that I am deeply concerned about the length and breadth of the SI. While I do not dispute the need for it in a no-deal scenario, the Opposition will vote against it on the basis of the process by which the Government have sought to take it through Parliament.