Northern Ireland Protocol: Disruption to Trade

Jeffrey M Donaldson Excerpts

Wednesday 13th January 2021 Commons Chamber

[Sir Jeffrey M. Donaldson (Lagan Valley) (DUP)]

(Urgent Question): To ask the Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office if he will make a statement on the disruption to trade between Great Britain and Northern Ireland as a result of the Northern Ireland protocol.

[The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)]

I am grateful for the chance to update the House on the operation of the Northern Ireland protocol. The protocol exists to recognise Northern Ireland’s unique position as the only part of our United Kingdom to have a land border with the EU. It was designed to ensure that no customs infrastructure is needed between Northern Ireland and the Irish Republic, while protecting unfettered access for Northern Ireland’s businesses to the rest of the UK market and the gains of the peace process and, of course, respecting Northern Ireland’s position as an absolutely integral part of the United Kingdom.

As with any new trading arrangement, the protocol undoubtedly generates challenges as well as providing solutions. The Government are committed to addressing those challenges by providing pragmatic solutions to any problems that arise and working with the Northern Ireland Executive in the interests of all the people of Northern Ireland.

UK Government Ministers are in daily contact with Ministers in the Executive, and with businesses in Northern Ireland and Great Britain, to ensure the effective operation of the protocol. Inevitably, the impact of covid and the steps taken by the French Government at their border have affected retail businesses across the United Kingdom, but it is important to stress that freight volumes into Northern Ireland’s ports are at normal levels for this time of year. There have been no significant queues, and supermarkets are now generally reporting healthy deliveries of supplies into Northern Ireland.

None the less, the new processes that the protocol asks of businesses that are moving goods from Great Britain to Northern Ireland require the Government to do more. We are working with companies across Great Britain to help them understand the new requirements for moving goods, and the extensive Government support includes the trader support service, to which more than 25,000 businesses are now signed up, yet we know that still more needs to be done.

That is why we are stepping up direct engagement with suppliers to ensure they have access to the realtime guidance they need, and we are also working closely with industry to address specific problems of moving mixed food loads from Great Britain to Northern Ireland through the process known as groupage. In the coming days, the Government will issue new guidance on the practical mitigations that have been developed with industry to enable this important practice to continue and to support hauliers and suppliers.

We also recognise that a number of hauliers have been affected by significant issues at Dublin port. We welcome the easements that have been introduced by the Irish Government, but movements via Dublin are substantially lower than normal, so we have to intensify our engagement with the Irish authorities.

More broadly, the grace periods for supermarkets and their suppliers are now working well, but we are already planning for the streamlined replacements that will follow. A dedicated team within DEFRA, working with the Cabinet Office, is also in touch with the industry to promote readiness, supported by new specific Government funding.

Ultimately, the future of the protocol is in the hands of Northern Ireland’s people, and its renewal is a question of democratic consent. The responsibility of this Government is to ensure that it operates in an effective, legal and pragmatic way, and that is the spirit in which we approach its implementation.

[Sir Jeffrey M. Donaldson [V]]

Thank you, Mr Speaker, for the opportunity to put this urgent question. I thank the Minister for his response. He has sought to address a number of the issues that I wish to raise. I have to say to him, however, that the difficulties encountered by Northern Ireland consumers and businesses may be greater than he recognises. I am still being contacted by constituents who are finding it difficult to order online items from Great Britain. There are many parcel companies and others that will not deliver to Northern Ireland and will not even accept orders from Northern Ireland as a result of the Northern Ireland protocol.

Businesses in Northern Ireland are also having difficulty ordering spare parts for equipment and importing raw materials. Just this week, our steel manufacturers in Northern Ireland have been informed that they face a 25% tariff on some steel imports as a direct result of the Northern Ireland protocol, because we cannot align with the UK quota on that.

Consumers continue to face difficulties in supermarkets. It is not the case that all supermarket shelves are fully stocked. Yesterday, we met some of the main supply chain people in Northern Ireland, who talk of ongoing difficulties in bringing goods in from Great Britain to Northern Ireland. Those issues need to be resolved.

The Minister referred to haulage and specifically groupage. I welcome his commitment to find a practical solution to that with DEFRA. We need to continue to work on that, because we have seen at least 40% of hauliers returning to Northern Ireland with empty trailers because of the Northern Ireland protocol and its impact. Although the trader support scheme is welcome, more needs to be done to inform and assist businesses in Great Britain about the operation of the protocol and how they can continue to send goods into Northern Ireland, because our experience is that that is clearly not well understood.

What do we need the Government to do? We need immediate intervention on this matter. It is important for our economy. It is having an impact on the economy of Northern Ireland and, in some instances, it is resulting in a diversion of trade, so we need steps to be taken to address what is becoming a cliff edge at the end of March for our supermarkets and others. I welcome what the Minister has said about the ongoing discussions, but we need an assurance that it will be resolved before the end of March or that the grace period will be extended further. We also need to ensure that hauliers get the support they need and that we find practical solutions to the whole question of groupage. Above all else—