United Kingdom Internal Market Bill

Jim Shannon Excerpts

Wednesday 16th September 2020 Commons Chamber

[Andrew Lewer (Northampton South) (Con)]

As Martin Howe QC outlined in a recent article, a single unified internal market is a key block in the constitutional foundations of the United Kingdom. When the transition period ends on 31 December, we shall be finally free to leave the provisions of the EU. This country needs a legislative framework that protects the integrity of the UK and provides continuity, certainty and prosperity to all four parts of the country.

[Jim Shannon (Strangford) (DUP)]

The title to the Bill is to do with the issue of Northern Ireland’s status. The Bill ensures that Northern Ireland becomes an integral part of the United Kingdom, which is separate from the withdrawal agreement, which was agreed in January 2020. I know that the hon. Gentleman agrees that that is critical and very important so that we have unfettered access and so that our businesses will not be disadvantaged in any way. Does he agree that it is all about the United Kingdom of Great Britain and Northern Ireland as one entity rather than four regions?

[Andrew Lewer]

Yes, I do. Four as one is the way forward.

At a time when thousands of businesses around the UK are struggling to recover from the impact of coronavirus, no Member of this House should be in any doubt that we need to have in place a system that facilitates the free flow of goods and services around all parts of the UK. That gives us the opportunity, as these amendments touch on, to invest properly in infrastructure and projects that encourage development in all parts of the UK.

--- Later in debate ---

[Sammy Wilson]

I thank my hon. Friend, who has hit the nail on the head. We have all these threats—I have heard them from all around the House in the debate on this Bill. However, I have yet to hear how, first of all, anything in this Bill drives a coach and horses—to use the words of the hon. Member for Foyle—through the Belfast agreement. If it does that, I would have thought that he could give us one example. “Coach and horses” indicates to me that there should be about 100 examples, he did not even give the House one, and of course we get the usual threats.

I want to talk to our amendment 22. My concern is about the provision in this Bill to give financial assistance for all the areas that I have outlined. The danger is that, while it might apply in England, Scotland and Wales, it cannot apply in Northern Ireland, because financial assistance—and a whole range of other assistance, in tax, fiscal policy, industrial policy, research and development, and everything else—falls under the heading of state aid. The Government have realised—rather belatedly, even though they were warned—that the state aid provisions in the withdrawal agreement apply not only to Northern Ireland but to the whole of the United Kingdom, according to article 10 of the Northern Ireland protocol.

The Government have sought to remedy that—of course, they have got a lot of criticism for that—by saying that they will not apply those provisions to England, Scotland and Wales. However, the Secretary of State for Business, Energy and Industrial Strategy made the position quite clear in the letter that he has sent round, explaining that this legislation will

“ensure that there is no legal confusion about the fact that, while Northern Ireland will remain subject to the EU’s State Aid regime for the duration of the Protocol, Great Britain will not be subject to EU rules in this area.”

The reason for our amendment is to remove the exclusion of Northern Ireland in this Bill, which would otherwise prevent Northern Ireland from being able to benefit from that financial assistance.

If these infrastructure projects are to benefit the whole of the United Kingdom and to address national issues, I cannot understand how the Government can then say, “But by the way, we are consciously making a decision to exclude Northern Ireland from these safeguards.” Be in no doubt: without this Bill, under the withdrawal agreement, the whole of the United Kingdom would have to declare any assistance given to its industries, in any form. The Commission would make a judgment whether that was lawful, and if the Government persisted, the European Court of Justice would decide whether that support could be applied. That is the stark fact. That is one of the reasons why the Government have had to take the steps that they have taken, but they have left Northern Ireland out of that provision. Ministers have been quite explicit about that, and the Bill is quite explicit about that.

That has two effects. Let us not forget that we are talking about the internal market of the United Kingdom. The first impact is that Northern Ireland and businesses in Northern Ireland will be left unprotected from predatory behaviour or unfair competition from other countries in the EU, and especially the Irish Republic. We have good experience. People talk about co-operation between Northern Ireland and the Irish Republic. The fact of the matter is that, when it comes to looking for investment, looking for jobs and promoting its economy, the Irish Republic is not co-operating with us. It is not a collaborator; it is a competitor. It has proved that time and again.

We do not have any transatlantic flights between Belfast International airport and North America, even though North America is a very important market for us and a very important source of investment, and connectivity is all-important in that context. Why do we not? Because the Irish Government have promoted flights and used every fiscal device and every means possible to promote Dublin airport. I could go through lots of examples, but time is short.

That is the first impact. Northern Ireland businesses will not have any means of protection. Even if the Northern Ireland Executive spot an issue and say, “We want to have some support for our industries,” that is challengeable in the European Commission and in the Court—which, by the way, we will have no political representation and no judicial representation in.

[Jim Shannon]

The agrifood and fisheries sectors are very important in my constituency and across Northern Ireland. We have past experience of the Republic of Ireland’s intentions towards the fishing sector. It is very important that we have control of that industry and can grow it. The agrifood sector is equally important. In my constituency, it provides some 2,500 jobs. Does he agree that, if we do not have this protection through our amendment to the Bill, we will be disadvantaged compared with other countries, and the Republic of Ireland in particular?

[Sammy Wilson]

Well, the whole withdrawal agreement disadvantages the economy of Northern Ireland. Some aspects have been tinkered with in this Bill, but many have been left as they are.

The second impact refers to the internal market of the United Kingdom. As a result of this Bill, it will be possible for the Government to support industries in GB but not businesses in Northern Ireland. We could therefore have a scenario where a firm located in Northern Ireland cannot benefit from the financial assistance that is available in the rest of the United Kingdom and finds itself in a position where it is advantageous to relocate from Northern Ireland, where it cannot get assistance, to other parts of GB, where it can. So much for this being a Bill to protect the internal market of the United Kingdom! By having a provision for financial aid and excluding Northern Ireland from the measures on ignoring the state aid provisions in the withdrawal agreement, we could distort investment across the United Kingdom to the detriment of Northern Ireland.

For those reasons, I believe that my party’s amendment is reasonable and fair. It meets the requirements and objectives of the Bill—namely, to ensure that the whole United Kingdom benefits from the prosperity that will come when we leave the European Union, and to ensure that the internal market of the United Kingdom will not be distorted. That is one of the reasons why I believe that the Government should include Northern Ireland in the provisions in clauses 42 and 43, and that the House should support amendment 22.