United Kingdom Internal Market

Jeffrey M Donaldson Excerpts

Thursday 1st February 2024 Commons Chamber

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

The Minister is absolutely right. Perhaps the most powerful illustration of the change that we have secured is to consider what will happen now on the ferry route between Dublin and Holyhead as a result of these new arrangements. A Northern Ireland haulier using that service will board the ferry, travel to Holyhead, leave the ferry and travel straight out of the port and on to their destination, with no customs procedures and with full unfettered access. In contrast, a southern Irish haulier arriving at Holyhead will be subjected to full UK customs procedures at the port before they can proceed. Does he join me in welcoming Northern Ireland’s restoration fully within the UK internal market?

[Mr Baker]

Yes. The right hon. Gentleman is absolutely right in what he has just set out, and I do join him in that. It is a proud day for me, as it is for him, and I join other Members in congratulating him on his courage in bringing all of us this far.

As a result of these regulations, we now have guarantees for Northern Ireland goods moving to the rest of the UK, via Dublin. This unfettered access is future-proofed, regardless of how rules evolve in either Northern Ireland or Great Britain. These regulations will more squarely focus the benefits of unfettered access on Northern Ireland traders. The regulations tackle avoidance of the rules and ensure that, for agri-food goods to benefit from unfettered access in avoiding sanitary and phytosanitary processes, they must be dispatched from registered Northern Ireland food and feed operators. We will also expressly affirm through these regulations that export procedures will not be applied to goods moving from Northern Ireland to other parts of the UK’s internal market.

[Mr Baker]

With great respect to my right hon. Friend, with whom I have gone a very long way in this cause, he might like to revisit the text. The point is that the 80% of goods going on that route are staying in Northern Ireland; they are UK goods. The other 20% are goods that are going on to the European Union. That is the point: 80% is UK internal market trade, and 20% is trade going on to the European Union.

[Sir Jeffrey M. Donaldson]

rose—

[Sammy Wilson (East Antrim) (DUP)]

Will the Minister give way?

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[Mr Baker]

I would not accept that. I am not in a position to set out the statistics, and I do not doubt that the statistics need some work applied to them. It pains me to say this, as I have always regarded the right hon. Gentleman as a great friend—he and I have walked a long way together on this and I have always regarded him as an ideological bedfellow, both on the Union and on Brexit—but as his group leader, the right hon. Member for Lagan Valley (Sir Jeffrey M. Donaldson), said earlier, we voted for, and fervently supported, the protocol Bill. We said that we were willing to have a red lane in order to safeguard the legitimate interests of our friends and partners—and family members, as the Irish ambassador Martin Fraser said. This was always a family dispute, and we were always going to get through it.

Our friends in Ireland, and indeed in the EU, have legitimate interests, which we should have the humility to respect. Even if we had acted unilaterally as a single united Parliament, ridden roughshod over any international negotiation and just done what suited ourselves with the protocol Bill, we would have implemented the red lane. I am afraid that I will part company now with anyone who says otherwise. We would rightly have implemented the red lane, even acting unilaterally, out of respect for the legitimate interests of our friends and trading partners.

[Sir Jeffrey M. Donaldson]

Will the Minister join me in welcoming the announcement on Tuesday of agreement on a joint legal text that will significantly change the status of goods coming from the rest of the world into Great Britain and travelling on to Northern Ireland? The effect of that change, which is part of the arrangements and the published Command Paper, will be that some 4 million goods movements between Great Britain and Northern Ireland will now be moving out of the red lane and into the UK internal market system. That is this party delivering, and securing real change that ensures that more goods flow freely between Great Britain and Northern Ireland, save for those going into the EU or that are at risk of doing so because they are part of a manufacturing process for goods being sold to the EU.

[Mr Baker]

I strongly welcome that intervention. I thought that the right hon. Gentleman was going to mention the draft joint agreement on tariff rate quotas. For a while I was concerned that TRQs needed to be applied to Northern Ireland so that Northern Ireland could share fully in the benefits of free trade agreements with the rest of the world.

I hope to return to this later, but in case I do not have the opportunity to do so, I want to say what an extraordinary situation Northern Ireland is now in. Northern Ireland is not in the single market. I draw everyone’s attention to page 4 of the Command Paper, which sets out checkmarks comparing Northern Ireland with Ireland, as a member of the EU, and with Norway, which is a member of the single market through the European economic area but is not in the customs union or the European Union. Northern Ireland really has the minimum of EU law compatible with unfettered—or privileged, perhaps—goods access to the EU market, and consistent with having an open, infra- structure-free border.

I wonder at people who thought that we could leave the European Union and establish a hard border, or do absolutely nothing about the border. We were always going to leave the European Union and have special arrangements in relation to Northern Ireland. This is a moment of great feeling for me, because before the referendum vote, I and other colleagues set up a committee of Eurosceptics to consider how we might deal with these issues. I confess that we did not have the SPS and customs expertise to proceed. That then became the great story of this battle.

If the United Kingdom had united in accepting the result of the referendum, if this Parliament had united in going forward with resolve to further our own interests as an independent nation state outside the EU, but crucially with the humility to respect the legitimate interests of our friends and partners, and if from the beginning we had had united resolve and clarity of vision, I do not doubt that in a spirit of friendship and good will—the kind that exists today between Ireland and us, and between the European Union and us, thanks to the work of the Secretary of State, the Prime Minister and others—we would have been, as we are now, in a totally transformed position to make our way forward as friends, respectful of their interests and resolved on ours.

That is not what happened. The House does not need me to rehearse it. It has taken eight years of drama for us to arrive at this moment, when we have reduced EU law to this extent and put in place a red lane to protect the legitimate interests of Ireland and the EU. That is something that we should all be very proud of, after everything that we have faced and all the risks that could have put us in a far worse position.

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[Mr Baker]

Yes, I—[Interruption.] I do not quite hear the comment from the leader of the DUP.

[Sir Jeffrey M. Donaldson]

Not on the Union!

[Mr Baker]

It has long been said that this is the Conservative and Unionist party and we have long been understood to be a Unionist party. This agreement is entirely consistent with both our Unionism and our full respect for all dimensions of the Belfast/Good Friday Agreement. We will continue to govern in a spirit of good will and impartiality.

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[Sir Jeffrey M. Donaldson]

I thank the right hon. Member for his work in trying to move things forward. On the very point he has just made, does he agree with me that it was due to the tenacity of my colleagues and me in not giving up when, in 2020, those clauses were dropped? We persevered and we kept pressing—when others gave up, this party kept at it—and now we see the fruits of our labours with the insertion into the United Kingdom Internal Market Act of key clauses that protect our unfettered access to the United Kingdom and its internal market.

[Julian Smith]

I wholeheartedly agree with the leader of the DUP. This negotiation, as I have observed, has involved hours and hours from the negotiating team, from my right hon. Friend the Secretary of State and from the Prime Minister’s team. It has been dogged and ongoing, and it has been hours of work. I observe some of the debate in Northern Ireland and some of the criticism, but I look at the lists of improvements that have been won, and I again pay tribute to those improvements.

This statutory instrument speaks to a broader point in Northern Ireland, which is the economy and the opportunity for economic improvement. Before talking briefly about that, I would like to pay tribute to the business groups in Northern Ireland that have shown great patience since the Brexit vote on how to resolve many of the practical issues they were faced with. In the Northern Ireland Chamber of Commerce and Industry, the CBI, the Institute of Directors, the Federation of Small Businesses and the Northern Ireland Business Brexit Working Group, many people have been working very hard to seek resolution, and I know that each and every one of those organisations will be pleased with what they have seen this week.

There are huge opportunities in Northern Ireland for the defence sector, the cyber sector, agriculture, pharma and more. Whether it is meat exporters who will be welcoming the tariff deal, the many businesses working with the US special envoy this week in Northern Ireland, or the various economic and inward investment seminars and activities my right hon. Friend the Secretary of State has been organising, all of these businesses will benefit, and they will create jobs and opportunities for families, young people and citizens in the future.

I would like to move away slightly from the statutory instrument, and go back to the Command Paper to reference the paragraph on corporation tax. What has been negotiated by the Government and the DUP on that front is to begin a working group between the Treasury here in London and the Department of Finance in the Northern Ireland Executive to look at the competitiveness of Northern Ireland’s corporation tax, and that gives Northern Ireland an additional opportunity to maximise its already unique position in the United Kingdom.

[Sir Jeffrey M. Donaldson]

I draw the right hon. Member’s attention to a further element in the Command Paper that proposes a special investment zone for Northern Ireland, which will deliver an extra £150 million of funding to drive growth in our economy. Does he join me in welcoming the interest of the Secretary of State for Scotland in working with us to ensure that the ports of Cairnryan and Stranraer are included, so that the links with Larne and Belfast are strengthened, and the Union connectivity that binds our country together is valued, invested in and expanded for the future?

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[Mr Baker]

I readily concede that there can be changes to retained EU law and that divergence can happen, but we have set out the safeguards at some length. I also encourage the right hon. Gentleman—as my right hon. Friend the Member for Skipton and Ripon (Julian Smith), who made an excellent speech, said, and as indeed the right hon. Member for Leeds Central (Hilary Benn) said—to look at the section of the Command Paper in relation to the Acts of Union. I myself learned a great deal about it.

[Sir Jeffrey M. Donaldson]

Will the Minister give way?

[Mr Baker]

I need to finish in one minute, but I will give way.

[Sir Jeffrey M. Donaldson]

Very briefly, I draw the Minister’s attention to paragraph 146 of the Command Paper, which makes it very clear that where primary legislation carries implications for the internal market, the Government will set out the measures they propose to take to protect Northern Ireland’s place in the internal market.

[Mr Baker]

I am grateful to the right hon. Gentleman for that intervention. Yes, that is the position.

In closing, there are sensitivities on all sides, as we have heard over the course of the debate, but real life in the age of intervention is complex, and we will press on as best we can. With that, I believe this Government have kept to the timetable as we agreed. I very much hope we will be able to look forward now to a restored Executive—one we will be very pleased to support in serving the best interests of all the people of Northern Ireland.

Question put and agreed to.

Resolved,

That the draft Windsor Framework (UK Internal Market and Unfettered Access) Regulations 2024, which were laid before this House on 31 January, be approved.

Business of the House

Ordered,

At this day’s sitting, notwithstanding the provisions of paragraphs (1) and (2) of Standing Order No. 22D relating to the scheduling of select committee statements, a select committee statement on the Third Report of the Levelling Up, Housing and Communities Committee may be made after the conclusion of proceedings on this motion.—(Robert Largan.)