Draft Postal Packets (Miscellaneous Amendments) Regulations 2023 Debate

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Department: HM Treasury
Monday 17th July 2023

(9 months, 4 weeks ago)

General Committees
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Victoria Atkins Portrait Victoria Atkins
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If I may, I just want to set out the circumstances, because I very much hope that that will help with some of the concerns that have been raised. I know that there is a great deal of interest in these arrangements, so I am going to be absolutely clear with the Committee what these measures entail and, importantly, what impact they will have not just for our constituents, but for the United Kingdom family.

In short, someone in Great Britain sending a parcel to their friends or family in Northern Ireland will not need to engage with any customs processes. Nothing will change for those movements compared with today. Similarly, Northern Ireland recipients of parcels sent by their friends or family in Great Britain will not need to engage with any customs processes. Nothing changes compared with today. A grandchild in Blackpool—I pick Blackpool because that was where I went to school, and there is a wonderfully rich Irish community in and around Blackpool and Preston—sending a package to his grandparents in Belfast will not need to do anything new to send it and, importantly, the grandparents will not need to do anything new to receive it.

Businesses in Great Britain selling to consumers in Northern Ireland will not need to complete customs declarations, international or otherwise. Nothing changes. Northern Irish consumers buying from British sellers, including—hon. Members have raised this point with me—the likes of Amazon and other online shops, will not need to engage with any customs processes. Nothing changes. They will buy from the British seller and receive their goods without doing anything new; I say that very clearly for the sake of colleagues here today and for others outside this Committee Room who may be listening. Those facts are now recorded in Hansard and can be scrutinised. I say that very deliberately, so that those who have concerns understand exactly what we have set out in the framework.

The Windsor framework explicitly removes those requirements on goods being sold to Northern Ireland consumers and, of course, on goods being sent to friends and family. There will be no routine checks or controls applied to parcels. There will be interventions only on the basis of a risk-based, intelligence-led approach. That means that the overwhelming majority of parcels will not be subject to checks.

Parcels sent from a business in Great Britain to a business in Northern Ireland will be treated the same as equivalent freight movements. They can be moved through the new green lane when eligible, when it is introduced from October 2024.

Ian Paisley Portrait Ian Paisley (North Antrim) (DUP)
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Will the Minister give way?

Victoria Atkins Portrait Victoria Atkins
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I promise I will give way to hon. Friends and Members.

As will be the case for freight movements, the green lane will ensure that eligible goods will no longer require international customs processes; they will instead require only the provision of routine commercial information.

Ian Paisley Portrait Ian Paisley
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rose—

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Victoria Atkins Portrait Victoria Atkins
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If I may, I will continue. In relation to the overwhelming majority of parcels, there will be no changes. The one instance in which there will be a requirement to go through green lane processes is where businesses are selling to business from Great Britain to Northern Ireland. I accept that this is—in the phrase used by my hon. Friend the Minister of State, Northern Ireland Office—a hard compromise. I accept that, and I say that with great respect, but we have to make the framework work because we have no alternative. I am not in the business—

Ian Paisley Portrait Ian Paisley
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Will the Minister give way?

Victoria Atkins Portrait Victoria Atkins
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I will give way to the hon. Gentleman in a moment; I am still answering my right hon. Friend the Member for Wokingham. Had the Prime Minister not negotiated the new Windsor framework, we would still be bound by the Northern Ireland protocol, and we know the many problems that that posed for both private residents and businesses, so this framework is a real step forward. This SI—which is a very, very small SI in the context of the framework, dealing as it does only with parcel movements—is a step forwards in ensuring that we protect the Union. However, I very much acknowledge and appreciate, as my hon. Friend the Member for Wycombe has, that for people who are committed to the Union and to leaving the EU, it is a hard compromise, but I am afraid that it is one we must take.

Ian Paisley Portrait Ian Paisley
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The Minister has come to the nub of this matter, because this is about business-to-business trade. I want to know the statistics on which she has based the claim that the vast majority of parcels will be private trade; perhaps she could share those. Secondly, could she outline who will ultimately pay the additional cost that will be put on business to do these things and how long any support will be in place?

Thirdly, the Minister must accept that this measure has the potential to lead to a diversion of trade, forcing businesses in England that really cannot be bothered with the burden of filling in forms to send a very small amount of their overall trade parcel to Northern Ireland. That will force businesses in Northern Ireland to divert trade and do their business elsewhere. Does the Minister accept that that is the likely outcome of this two, three or four years down the line from now?

Fourthly, does the Minister accept that the green lane she has outlined is the safety valve for all of this, in terms of most businesses being able to operate in it? The fact of the matter is that most businesses cannot operate in the green lane—that the green lane is there for only a very few high-class businesses. The vast majority of businesses in Northern Ireland—about 20,000—will not be able to operate in the green lane structure.

Finally, can the Minister—

None Portrait The Chair
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Order. Interventions need to be short. The hon. Gentleman indicated to me earlier that he may wish to speak. He might have an opportunity to put his other points when he is called to speak. Interventions need to be short, as he well knows.

Ian Paisley Portrait Ian Paisley
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Thank you, Mr Pritchard. It is just because this is such a detailed business-to-business issue that I wanted to put those questions. To be fair to the Minister, I think she will actually try to answer them, which I hope will be helpful. Finally—

None Portrait The Chair
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Order. On that point, I have given latitude for four points of intervention rather than one. The hon. Gentleman will be called to speak if he rises from his chair later, and he will have another opportunity. I know that he is an experienced Member and will respect the view and ruling of the Chair.

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Victoria Atkins Portrait Victoria Atkins
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I am very open to ideas and suggestions, particularly from those parliamentarians who represent Northern Ireland, as to how we can improve that understanding within the Northern Irish business community but also, importantly, here in Great Britain, because I want businesses to continue trading, and indeed to grow their trade, with Northern Ireland.

There are experts in this room who know just how ambitious and powerful the messages of support were from the international community when the Windsor framework was signed about the opportunities available for this corner of the United Kingdom, so I very much hope that this measure is seen as part of that drive and that ambition to help Northern Irish businesses to grow.

Ian Paisley Portrait Ian Paisley
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I would like to come back to the point where the Minister indicated, essentially, that there will be discrimination between businesses, business dealings and trade. The Minister claims that this issue has been addressed and that this measure is compliant with the European convention on human rights. How does it comply with article 14 of the ECHR, which prevents discrimination between businesses and individuals?

Victoria Atkins Portrait Victoria Atkins
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Again, I just remind the Committee that we are dealing with parcel movements here; we are not litigating the entirety of the Windsor framework. As I say, we think it is a really positive step forward for the whole of the United Kingdom. Of course the hon. Gentleman is looking at it—quite rightly—very particularly through the lens of his constituents and Northern Ireland. However, in terms of the whole United Kingdom, and of all our businesses being able to have that certainty about how to deal with the EU, both in relation to Northern Ireland and in our wider relations with the EU, it is a good thing. After years of discussion, we now have an agreement that really gives us all, I hope, some clarity and certainty as to how we will conduct trade with the EU in the future.

As I say, I appreciate that hon. Members have rightly been scrutinising some parts of the agreement, but on the article 14 point, I am required as a Minister to satisfy myself as to the measures. I gently point to the fact that, in terms of individuals to individuals, nothing changes and, in relation to businesses—GB to NI only—nothing changes. It is simply where there may be onward traffic to the EU—as indeed, would be the case if there were onward traffic to the US—that that duty may be payable. I am veering into freight; I am conscious that, in relation to the small group of transactions we are talking about, there is a certain amount of overlap or mirroring, but we are, again, looking just at parcel movements for this SI.

Ian Paisley Portrait Ian Paisley
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The Minister talks about business to business, but who does business? It is people; people do business. Business to business is about people, and their rights—the company rights and the individual rights of the people doing business—are being trampled upon. Where businesses are doing that business on behalf of other people and consumers, those people are being discriminated against in terms of cost and the diversion of trade, and there will be general discrimination because we in Northern Ireland will be treated differently from the rest of the UK, or the rest of the UK will be treated differently from Northern Ireland—the point the Minister made to my right hon. Friend the Member for East Antrim.

Victoria Atkins Portrait Victoria Atkins
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Again, I will try to answer the hon. Gentleman’s intervention as fully as I can. The Windsor framework does not introduce any discrimination against anyone. Businesses do not have human rights in the same way that individuals do. Articles 6, 2 and 8 do not apply to businesses. On his point about the business treatment, the Windsor framework is a positive step forward from what would have happened under the Northern Irish protocol. We have to operate under what would have been because I cannot pretend that the protocol did not exist or that those strictures would not come in in due course. As I say, that is not a commentary on what was negotiated at the time under those extremely difficult circumstances, but the United Kingdom and the EU have got around the table, acknowledged the significant difficulties that have been identified and come up with the Windsor framework, which answers all those concerns and does so, I would say, in a way that really moves our relationship with the EU forward.