Draft Marking of Retail Goods Regulations 2025

Jim Allister Excerpts

Monday 23rd June 2025 General Committees

[Jim Allister (North Antrim) (TUV)]

It is a pleasure to serve under you, Sir Desmond. As a Member who represents a Northern Ireland constituency, I am grateful for the opportunity to speak about the draft regulations. They come in a context in which there has already been an indisputable, substantial and worrying diversion of trade in terms of the supply of goods and produce to Northern Ireland. The most recent figures from the Northern Ireland Statistics and Research Agency indicate just how significant that is, yet within the Windsor framework there is supposedly a mechanism under article 16 to enable the Government to take action should there be a diversion of trade. However, this Government, like the last, are blind to that issue and do not want to take on the EU on any of these matters.

It is important for the Committee to understand the genesis—how we got to this point. It all arises from an SPS regulation, EU regulation 2023/1231. This is a regulation that was made by a foreign political organisation—the EU—and the most astounding thing about it is that it makes rules that exclusively apply to non-EU territory. It makes regulations that apply not to itself, but to this United Kingdom. This is the first time since Brexit that the EU has asserted legislative power over the United Kingdom. It tells this United Kingdom that, in a series of three steps, there shall be introduced by this United Kingdom “not for EU” labelling on goods moving within this United Kingdom from Great Britain to Northern Ireland. This is the diktat of the EU: the three steps in Regulation 2023/1231.

As the Minister has alluded to, we come today to the final third step, which is to be introduced in just a few days, on 1 July. Building on the previous two steps, it decrees that goods that are moving from Great Britain, allegedly within the UK internal market, must, by EU law, carry a “not for EU” label. That, of course, has cost implications for those who are sending them, which is why, as a result of the requirements already imposed, a number of companies have simply opted out of supplying to Northern Ireland.

Here is the most ludicrous aspect of this SPS regulation: it creates no prohibition on any EU citizen—most particularly in the Republic of Ireland—purchasing any of these “not for EU” goods. So we put on GB suppliers a costly obligation to engage in labelling of goods that they might be sending to Northern Ireland, but, within Northern Ireland, anyone from the Republic of Ireland can come and buy those goods and can do whatever they want with them.

This is supposedly about protecting the EU single market. How can it be that we have this ludicrous situation that goods are labelled as “not for EU” but can be brought into the EU with no consequence, all under an EU regulation that puts a burden on the United Kingdom but no burden on its own citizens? I guarantee that if anyone went now, at this very moment, to any of the supermarkets in Northern Ireland around the border, in Enniskillen, Londonderry or Newry, they would see people filling up their car boot with goods labelled as “not for EU”, because they are cheaper. Yet we have this ludicrous situation whereby we are now going to impose an even wider duty on British manufacturers. For what purpose? For the purpose only of showing how compliant doormats we are for the EU, for no practical purpose whatever. That is the reality of the situation. I therefore say to the Committee that it should not approve a regulation of this genesis and this nature.

Of course, it is going to burden on industry in Great Britain, and it is not as if there were not already burdens. Even under the internal market scheme, if someone is sending produce to Northern Ireland, they must fill in a customs declaration, which is an expense in itself, and must belong to a trusted trader scheme, which is a further expense. Now, on top of that, they must label their goods as “not for EU”, even though there is no purpose, other than that which is farcical, in doing that.

I say to this Committee: surely, out of respect for your own GB businesses, you should not be rushing into approving a regulation such as this, because it will add burdens, and it will cause companies to de-list. Paragraph 5.2 of the explanatory memorandum recognises what some of us have always been saying: that creating an Irish sea border—creating barriers within our own supposed internal market—will discourage trade. That is why the Government say they are bringing these regulations—to protect against discouraging trade—but will it?

First of all, any “small company”, which is a company with fewer than 50 employees, is not affected: it can de-list Northern Ireland with no consequence. So, in my constituency, artisan cheese people who might buy from a small supplier in Wiltshire, or dear knows where, will no longer simply be supplied, with no penalty upon the provider, because small companies are exempt. This will also enforce the requirement on GB producers to label their goods, even though their goods will never come to Northern Ireland. That is what Members who represent other parts of the United Kingdom should realise. The draft regulations, if the Government act upon them, will require producers in GB, supplying only to GB, to put on their produce, “not for EU”. These regulations are ill-considered and will do nothing to address the fundamental problem of the distortion and upset to the UK internal market that has flowed from the Windsor framework and the protocol, which were identical in this regard.

If this Government want an answer to the Irish sea border, it lies in the very simple but workable proposition of mutual enforcement: we send goods to a recipient country, meeting its standards, and vice versa. We do not need any of this crazy, trade-reducing paraphernalia. We certainly do not need to add extra cost to business, which is what these regulations will foolishly do, all for the purpose of the Prime Minister being able to say, “I’m a faithful implementer of the Windsor framework,” even though the Windsor framework is tearing apart this Union and is literally divorcing Northern Ireland from its natural market, which is so impeded by regulation, to which this legislation is adding.

[Daniel Zeichner]

I am grateful to all hon. Members who have contributed to the debate. I thank the shadow Minister, the hon. Member for Epping Forest, for his support and for raising some important questions. Of course, we want to minimise costs to business, and we made the decision to introduce a targeted power, as opposed to a mandatory requirement for all goods, to prevent some of those costs. As we set out in the impact assessment, the indicative cost to business of applying “not for EU” labelling to a subset of product lines is significantly less and will vary depending on the product. Moreover, the non-monetised benefits, particularly safeguarding food security in Northern Ireland, will be a crucial part of maintaining a strong economy.

The shadow Minister asked how many businesses are likely to seek extensions, but I think that that will only become apparent over time. He also asked about costs to local authorities; given that the statutory instrument is a contingency power, enforcement costs will only be incurred should the powers in the SI be activated. Any enforcement activity would be undertaken by the local authority as part of existing food labelling checks to minimise the burden.

I listened closely to the hon. Member for Westmorland and Lonsdale and, as I so often do, I found a lot in his comments to agree with. I very much look forward to our discussions with Lord Curry in due course.

The hon. and learned Member for North Antrim, very importantly, provided a voice from Northern Ireland in this debate. He asked why we are not triggering article 16, but that would happen only in the event of a massive distortion to trade. A decision to activate article 16 would be contrary to Northern Ireland having stable arrangements for trade now and in future, and that is what we anticipate will happen.

[Jim Allister]

That is news to me. I do not have article 16 in front of me, but I do not believe that it says “massive distortion”. However, what article 1 of the Windsor framework does say is that the EU will respect the territorial integrity of the United Kingdom. Where is the respect for the territorial integrity of the United Kingdom in the EU insisting that we have its “not for EU” labelling? Where is the respect there?

[Daniel Zeichner]

The respect is that we now have a good agreement with our friends in the European Union. I think the hon. and learned Gentleman would do well to recognise the advantages that we are gaining from that, both for Great Britain and for Northern Ireland. Triggering article 16 would disregard the benefits that the Windsor framework offers and that businesses rely on, including those that are taking advantage of Northern Ireland’s unique access to the United Kingdom and EU markets.

We will keep this legislation under review. The statutory review clause requires the Secretary of State to conduct the first review after two years, rather than the customary five, and that will allow for scrutiny of the policy in the context of the proposed SPS agreement. Once completed, the SPS agreement will facilitate the smooth flow of agrifood and plants from Great Britain to Northern Ireland, protecting the UK’s internal market, reducing costs to businesses and improving consumer choice. As I have noted, we expect the requirement to label goods as “not for EU” to diminish significantly as a result of the agreement, which may in turn reduce the need for the power conferred by these regulations.

We must meet our existing international obligations to reach that point. We must continue to fully implement the Windsor framework in good faith, while ensuring Northern Irish consumers are protected. That is why this legislation is essential in supporting this Government’s renewed partnership with the EU, which will deliver a broader range of benefits for people and businesses in Northern Ireland and across the United Kingdom.

I conclude by returning to the primary purpose of this legislation: to provide a safeguard against reduced product availability and to maintain consumer choice in Northern Ireland. This Government are committed to delivering on the commitments made in the “Safeguarding the Union” Command Paper for the people of Northern Ireland. The draft regulations will demonstrate that commitment by ensuring that the Government are able to act decisively if required.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Marking of Retail Goods Regulations 2025.