Trade Diversion and Windsor Framework

Debate between Jim Shannon and Jim Allister

Tuesday 4th March 2025 Commons Chamber

[Jim Allister (North Antrim) (TUV)]

The issue of diversion of trade is becoming an increasing problem of manifold proportions for Northern Ireland. Before the protocol, goods could be moved from Birmingham to Belfast as easily as they could be moved from Gloucester to Glasgow, but no more. The resulting Irish sea border, and all that comes with it, has caused a huge and increasing diversion of trade.

We can get an insight into how things naturally should be and how business wishes them to be by looking at the Northern Ireland Statistics and Research Agency figures of recent years. If we look at the pre-protocol days, we see that in 2018, for example, the volume of goods purchased from the Irish Republic was £2.8 billion, but the amount purchased from GB was five times that—£13.4 billion. There we have a snapshot of the natural inclination of trade in Northern Ireland, particularly for our raw materials.

Before Brexit, there was a similar situation. Indeed, we could say—and some may say—that that is a better reflection of whether there has been trade diversion. Before Brexit, we could as readily buy our goods from the Republic as we could from GB, because we were all in the EU single market. Even then, the predominant trading of choice was from GB. That is no surprise because for decades Northern Ireland has been a particularly integrated part of the UK economy.

However, along came the protocol, which requires Northern Ireland to be subject to a foreign customs code—that of the EU—which of course treats GB as if it is a foreign country. Therefore, when goods come from outside the EU into the EU, and we in Northern Ireland are regarded as being in the EU for these purposes, those goods have to be checked, with customs declarations, documentary checks and physical checks on, for example, all our raw materials. So it is no surprise that that is inevitably bound to cause diversion of trade.

We were told, as part of the spin of selling the protocol, “Oh, there are protections against the diversion of trade, and it wouldn’t be allowed to happen”. Article 16 of the protocol, we were told, was our safety net:

“If the application of this Protocol leads to…diversion of trade…the United Kingdom may unilaterally take appropriate safeguard measures.”

It has led to the diversion of trade, but the United Kingdom Government have not taken unilateral action in that regard.

The fact of the diversion of trade is a challenge to the protocol’s proponents. It is a challenge to those who put this upon us, and it is one that they have to meet, but which I fear they will not meet. Where is the proof, some may ask, of the diversion of trade? Again, it is in the NISRA statistics. Dr Esmond Birnie, a renowned economist in Northern Ireland, has done a succession of studies of the NISRA statistics. He wrote back on 11 December 2024 that the data

“provides further evidence that the NI economy is becoming more trade integrated with the Republic”,

and of

“North-South trade growing at very rapid rates at the expense of what previously was an inflow of goods from GB.”

[Jim Shannon (Strangford) (DUP)]

Will the hon. Member give way?

[Jim Allister]

Perhaps in a moment.

We also see that in the purchase of goods figures that NISRA reports. It has given us figures from 2020, contrasting them in a table with those for 2023. The year 2023 was only the beginning of things getting difficult, as the Irish sea border did not in effect come into place until October 2023 because of the grace periods. However, those NISRA figures show that Northern Ireland’s purchases of goods increased from 2020 to 2023—of course, it was a period of inflation—by 24% from GB, but by 50% from the Republic of Ireland, meaning twice the growth rate in the buying of goods into Northern Ireland that would previously have come from our integrated United Kingdom economy.

The Office for National Statistics business insights and conditions survey states that 13.1% of currently trading manufacturers based in GB had sent goods to Northern Ireland in the past 12 months. That was at the end of 2024. But in January 2021, 20% of manufacturers in GB were sending goods to Northern Ireland. So, in just those four years there has been a dramatic fall in the number of manufacturers supplying goods to Northern Ireland. It has nearly halved in four years. The ONS data for 2024 tells us more: 11.7% of companies tell us they have stopped trading with Northern Ireland. Why? Because of the bureaucracy, because they have to make customs declarations, because they have to have them checked, and because they have to employ extra staff to do all that. Many companies, particularly in smaller sectors, have simply said that they are not going to do it.

--- Later in debate ---

[Jim Allister]

That is the absurdity of where we have got to, and it has been accentuated by our subjection to the EU’s general product safety regulations. Those regulations provide that if a company is supplying into Northern Ireland from outside the EU—in other words, from GB—it must have an agent resident within the EU. The company must complete the paperwork on the origin of its goods and on the customs declarations, and it cannot do so without employing an agent within the EU. Anyone who knows anything about business will know that that is added cost that will cause many businesses to say, “Northern Ireland is not a huge market to start with, so I shall just not bother with it.” That is what all our businesses in Northern Ireland are suffering from.

[Jim Shannon]

I congratulate the hon. and learned Member on securing this debate. Small businesses in my constituency have told me that they are now having to pay His Majesty’s Revenue and Customs a duty for buying goods from English suppliers and then selling the same goods in Northern Ireland to the Northern Ireland consumer, remaining within the internal market. Last Friday, one trader told me that he is now having to pay more in duties to HMRC than the invoice was for the goods. That is because HMRC does not trust that the goods will remain, but assumes that they will be sold into the EU. Does the hon. and learned Member not agree that the same HMRC displays greater trust and acceptance of VAT declarations, on the premise that they will be checked at random, than it does for internal trade within the United Kingdom? What a backward step that is.

[Jim Allister]

I agree. Let us just think about the Irish sea border. Given the infinitesimal amount of goods and trade that cross that border—infinitesimal when compared with the proportion of EU trade—it is incredible that it has 20% of all the checks across the whole of the EU. That infinitesimal amount when set against the totality of EU trade warrants 20% of all the checks in the EU. It would be easier to bring in goods from Belarus into the EU than it is to bring goods from GB into Northern Ireland.

Crown Estate Bill [Lords]

Debate between Jim Shannon and Jim Allister

Report stage
Monday 24th February 2025 Commons Chamber

[Jim Allister (North Antrim) (TUV)]

I wish to primarily address new clause 7, tabled by the hon. Members for Belfast South and Mid Down (Claire Hanna) and for Ynys Môn (Llinos Medi), and to express opposition to it. It very much reflects what is in new clause 1, in terms of seeking devolution of the Crown Estate, but in this case to the Northern Ireland Executive in respect of the assets there. I oppose that for a number of reasons. It presently is a reserved matter, and I strongly believe that is how it should stay. I say that not because that is right ideologically, but because practically it is beyond belief that the current Stormont Executive could ever handle the controversies that come with the Crown Estate.

This is an Executive in Stormont that have been in existence for almost 13 months and still cannot agree a programme for Government. If we were to hand them something as controversial as control of the Crown Estate, we all know what the outcome would be. Why is it controversial? For one specific and historical reason. Lough Foyle is controlled and owned by the Crown Estate. It is a piece of water that separates County Londonderry, which is in Northern Ireland, from County Donegal, which is in the Republic of Ireland, but the entirety of Lough Foyle since last we had a King Charles rests under British control. In 1662, Charles II gifted Lough Foyle, the surrounding waters, the seabed and the waters within it to the Irish Society. The Irish Society was a conglomerate of various companies from the City of London, which did a great deal to develop and build the city of Londonderry; and as part of that, I presume, it was gifted control over Lough Foyle. In 1952, the Irish Society conveyed Lough Foyle to the Crown Estate.

A divided Executive in Northern Ireland would be hopelessly incapable of resolving the issues that flow from the somewhat controversial aspect of the entirety of Lough Foyle, right up to the coastline of County Donegal, being properly, legally and in perpetuity in the control of the Crown Estate. Therefore, devolving the Crown Estate to the Northern Ireland Executive would be disastrous for the good management of the lough and for the uncontroversial continuance of its ability to be developed. That might be a particular situation, but it is in addition to my opposition from an ideological point of view and my belief that the Crown Estate is a national asset that should continue to be of a reserved category. I think the proposition in new clause 7 would be the utmost folly; I trust that the Government will resist it and that the House will reject it.

[Jim Shannon]

It is a pleasure to contribute to the debate; I will follow on from what the hon. and learned Member for North Antrim (Jim Allister) seeks. I want to make a specific request, which I did when I intervened on the hon. Member for Mid and South Pembrokeshire (Henry Tufnell).

My issues with the provisions primarily relate to the fishing sector and the impact on fishing fleets around the whole of the United Kingdom of Great Britain and Northern Ireland, but particularly in Strangford for Portavogie, and Ardglass and Kilkeel in South Down. I appreciate the opportunity to speak on an issue that affects Crown Estates in the entirety of the United Kingdom.

As the Library briefing outlines, the Crown Estate focuses on activities that align with wider national needs, including energy security and sustainable economic growth. It manages the seabed and much of the coastline across England, Wales and Northern Ireland, playing a

“fundamental role in the sustainable development of this national asset, including the UK’s world-leading offshore wind sector.”

I am not against wind turbines and the green energy they produce, but I am concerned about the impact on the fishing sector. I want to state my concerns and express my support for the fishing fleets at Portavogie, Ardglass and Kilkeel, where fishing is an important economic sector, providing jobs and investment. That has been happening for hundreds of years, and I want to see that tradition maintained. I hope that when the Minister sums up, he will reassure fishing communities that any development will not be to the detriment of the fishing sector.

[Jim Allister]

Does the hon. Member agree that one of the problems in this territory is that we do not yet have the definition of what is meant to be sustainable? On reading the Bill, it appears that the whole focus of what sustainable will be is on the green energy side, rather than what will sustain the fishing industry.

[Jim Shannon]

That is the thrust of where I am coming from. I am not against the idea of green energy, but I want to ensure the sustainability of the fishing sector over the years. It has been sustainable and still provides jobs in Kilkeel and Ardglass, and I want it to continue to do so. That would be my concern as well.

The fishermen in my area are well aware of the limitations brought about by Crown holdings on the coastline, and concerns have been expressed to me regarding the partnership announced by the Government for the Crown Estate and Great British Energy—the very issue that the hon. and learned Member for North Antrim refers to—to bring forward new offshore wind developments. I wholeheartedly welcome renewable energy and attempts to harness the reliable energy of our vast seas and loughs, but only inasmuch as they do not stop the fishing sector from operating and being successful. That must always be the key consideration. If we were to lose one of our primary sectors in fishing and to gain wind turbines and green energy, that would be something that the Government would have to consider sensibly.

Similarly, the regeneration and development department in my local Ards and North Down council has highlighted the additional red tape that comes from leasing or altering existing leases to the Crown Estate. That being said, the council is also thankful for the open doors and accessibility when needed. However, it has been seen that there is a willingness to consider the national needs when requests are made for alterations, and that is appreciated. When we look at the national needs, we want to ensure that they do not take away from the local needs of those in Strangford, in Ards and North Down and in the fishing fleets and those who own land and farms around the Irish sea and Strangford lough.

During 2023-24, the Crown Estate generated a net revenue profit of £1.1 billion. Over the past decade, it has returned £4.1 billion of net revenue profit to the Treasury. We must ensure that the Crown Estate is being run at ultimate capacity and is bringing money into our coffers, but also that it has a socially conscious operating model and that it is being used to do good for everyone, including the fishing sector in my constituency.

I was very much inspired, as we probably all were, by the Prince of Wales’s scheme on homelessness, and by the fact that he is using his personal estate, the Duchy of Cornwall, to build 24 homes to help tackle homelessness. The construction of the first homes in Nansledan, Newquay, is due to be complete in autumn 2025. That good work should inspire us all to ensure that a Crown Estate operated by a team appointed by the Prime Minister attempts where it can to make such an impact for the common good.

Coastguard Helicopter Services

Debate between Jim Shannon and Jim Allister

Tuesday 14th January 2025 Westminster Hall

[Jim Shannon]

Then I wish you well in your new role. I am sure that you and I and others will meet on a number of occasions—

[Jim Allister]

Will the hon. Member give way?

[Jim Shannon]

I am happy to give way.

[Jim Allister]

While we are on statistics, can the hon. Member tell us how many times he has spoken in this Chamber?

[Jim Shannon]

I am unable to answer that. I say only that I make sure that the constituency of Strangford is named every time I am here. That is the important point, because it is the people who put me here.

It is a real pleasure to follow the right hon. Member for Orkney and Shetland (Mr Carmichael). In all honesty, there probably is not a debate where I do not find myself alongside the right hon. Gentleman, whether it is on fishing issues, coastguard issues, farming or whatever it may be. These are all things that he and I, along with others, have a deep interest in, and we come to Westminster Hall to put forward the case on behalf of our constituents.

European Union (Withdrawal Arrangements) Bill

Debate between Jim Shannon and Jim Allister

2nd reading
Friday 6th December 2024 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I commend the hon. and learned Gentleman for bringing forward the Bill. It is important for us in Northern Ireland and for this whole great United Kingdom to look at this. Our constituents must not lose their place in the United Kingdom of Great Britain and Northern Ireland without consent, by stealth, but that is what is happening. Brexit was a vote for all of us to leave Europe, not for Northern Ireland to leave the UK, and this outstanding matter is detrimental to our economy, peace and stability. Does he agree that the Bill must be supported by all in the House if there is to be justice for all in this great United Kingdom of Great Britain and Northern Ireland?

[Jim Allister]

The hon. Member touches on a fundamental. In June 2016, we all had the opportunity to vote on Brexit. Some liked it and some did not, but the question on the ballot paper was: “Do you want the United Kingdom to leave the EU?” The question was not: “Would you like GB to leave the EU, and leave Northern Ireland behind?” But that is what we got. That is a fundamental denial of Brexit to my constituents in Northern Ireland. That is the source of the disparity, and undemocratic consequences have flowed from that.

I mentioned the 300 areas of law. They are all recited in annex 2 of the protocol. It is no surprise that the first area of law covered in annex 2 is customs, and that the first law put on the people of Northern Ireland is the EU’s customs code: EU regulation 952/2013. What does the customs code do? It operates on the basis that GB—those who got Brexit—is no longer a part of the EU; it is, in the words of the customs code, a “third country”, or in common parlance a foreign country, whereas Northern Ireland is treated as EU territory. Therefore we have this absurd insult under the customs code that goods coming to Northern Ireland—a supposed part of the United Kingdom—from GB must be subject to all the rigour of declarations, checks and reporting of data recording. Why? Because GB is treated as a foreign country when it sends its goods, particularly its raw materials, to my part of the United Kingdom.

That is the iniquitous effect of the Union partitioning and dividing the customs code and protocol. Some Members seem to find that amusing. If hon. Members believe at all in the United Kingdom—maybe some do not—they should be as offended as I am by the fact that moving goods from one part of the United Kingdom to another involves an international customs border under the control of foreign law. How could any MP—amused or otherwise—think that is right and equitable?

Pakistan: Freedom of Religion

Debate between Jim Shannon and Jim Allister

Thursday 28th November 2024 Commons Chamber

[Jim Allister (North Antrim) (TUV)]

We are familiar with interventions from bodies such as Amnesty International and the United Nations even in our own country. Obviously there is a far more acute need for their attention in places such as Pakistan. Does that seem to be articulated and driven home adequately, and is it having an impact, especially on such appalling matters as forced marriages and honour killings?

[Jim Shannon]

I would love to say that such interventions are having an impact, but unfortunately I do not see much evidence of it. Our responses have to be evidentially based. Amnesty International is involved, and present, in Pakistan. Is it highlighting these things in Pakistan? Only Amnesty can answer that. We do not see much evidence of it.

My concern is that the legislative and societal frameworks in Pakistan have created an environment where intolerance thrives. The blasphemy laws, which I ask the Minister to respond to directly, were introduced during General Zia ul-Haq’s regime. They are among the harshest in the world, and have been frequently weaponised against religious minorities. I will give some examples of that in the debate.

Windsor Framework

Debate between Jim Shannon and Jim Allister

Tuesday 19th November 2024 Westminster Hall

[Jim Allister]

It has infected every sector, and none more so than the farming sector, which is topical today. Northern Ireland’s veterinary medicines are now under the regime of the EU, and we are facing a cliff edge in that regard—there could be a cut-off of supply from our primary market of veterinary medicines very shortly.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. and learned Member for securing the debate. He is right to mention farming. Does he agree that our farmers, who have been decimated by the inheritance tax proposals, will not be able to access state aid, while farmers on the mainland can apply for and get that aid? The Government must do the right thing: remove the protocol and return Northern Ireland to the UK in every way.

[Jim Allister]

I agree with that. Of course, the protocol contains an EU cap on the amount of funding that can be given to farming. All the things that the hon. Member says are correct.

All that flows out of one fundamental point: the protocol and Windsor framework mean that, in 300 areas of law, Northern Ireland is now subject to laws made not in this place or in Stormont, but in a foreign Parliament by foreign parliamentarians—the parliamentarians of the EU. That is such an assault on the enfranchisement of our constituents—it is, rather, their disenfranchisement —and on basic constitutional and democratic accountability. It is something, I would suggest, that no Member of this House would contemplate for one moment for their constituents, and yet those of us who represent Northern Ireland, as well as our constituents, are expected to accept that we should be impotent when it comes to making the laws that govern much of our economy.