Leaving the EU: Chemicals Regulation

John McNally Excerpts

Thursday 1st February 2018 Westminster Hall

[John Mc Nally (Falkirk) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Evans.

I take this opportunity to thank the hon. Member for Wakefield (Mary Creagh) for securing this crucial and topical debate. Some interesting and intriguing points and concerns have been raised. The hon. Lady has already said that she feels as though the Government are treating the chemicals industry as a Cinderella industry. Her point about zombie legislation was not lost on Members, and her detailed knowledge of this subject is admirable.

Other Members made clear their concerns about the loss of jobs and the possibility of animal testing, which raises another unnecessary problem that we would have to deal with. Many other important questions are as yet unanswered. It was good to hear that the hon. Member for Gordon (Colin Clark) might cross the divide—that intrigues me—but it was reassuring that he has already become a devotee of the EAC. The hon. Member for Penistone and Stocksbridge (Angela Smith)—

[Angela Smith]

The hon. Gentleman is one of the very few people who have got the pronunciation right.

[John Mc Nally]

Am I? If I can say “Auchtermuchty”, and so on, it is fairly easy.

The hon. Lady raised the importance of getting the transition right and reiterated that we need policy certainty on this issue. The modesty of the hon. Member for Bristol East (Kerry McCarthy) and her understanding of the complexity of this inquiry is to be admired. She is without doubt a very able and knowledgeable MP, as I have learned.

It has been a privilege to be a member of the Committee, as it is to follow the hon. Lady. As well as benefiting from my deeply committed and knowledgeable colleagues, I have relished fighting on issues that I am passionate about. Highlighting the need to protect our precious environment against pollution on a local, national and international level has been my mission. From the scourge of plastic microbeads and nurdles on our beaches, to plastic fibres from clothing that poison our waterways, the Committee has shone a light on environmental issues that the public want and need to know about. The Committee has successfully alerted corporate giants to their responsibility to communities and to the wider world that we share. We have never shirked asking difficult questions. I wish to acknowledge our Chair, the hon. Member for Wakefield, and I am sure that my colleagues want to do the same. In my opinion, she provides the best model for the operation of a successful Committee.

I, too, was on the trip that the hon. Lady mentioned to America prior to last year’s election. The Committee visited Washington DC to meet various agencies, senior academics and scientists. We were told by one of the scientists there that they had already had 100,000 companies registered in Ireland. That immediately raises concerns, and it reinforces what has been said today. We were all warned that Brexit threatened our membership of REACH and would result in disastrous consequences for our industries and economies. I was also warned that the Scottish Government’s competencies in environmental matters were facing an existential threat.

The chemicals industry is an economic linchpin, and we heard grave concerns from senior people who fear that Brexit may result in deteriorating standards if REACH is compromised. REACH has been widely described as the most complex piece of legislation ever undertaken in the EU’s history, and around 30,000 chemicals are registered under it at present. I think that in the UK something like 6,500 are registered under it at the moment. Meanwhile, as has been said, its membership is a passport to the global chemicals marketplace.

REACH standards are recognised by regulatory regimes worldwide. That enables exports worth £14 billion every year across the EU. By May this year—the looming deadline for registering chemicals under REACH—UK companies will have spent an estimated £250 million on the process over the past 10 years. If the unthinkable occurs and no agreement is hammered out between the UK and EU, are we then a UK out of EU reach? Chemical registration-related data sharing would cease to exist. That would be utterly disastrous for businesses and their investments, and they would have to reapply all over again. It would be an absolute nightmare for us to go through.

Let me turn to my homeland, Scotland. The Scots chemical industry is a truly international and invaluable part of the Scottish economy, second only to our thriving food and drink industry. It is a major exporter that delivers outstanding GVA and has shown remarkable resilience in these turbulent economic times. I believe that the most recent Office for National Statistics figures show that the Scottish sector maintained double-digit export growth between 2014 and 2015, before the recent weakening of the pound. Surely that success cannot be allowed to face uncertainty. As we know, the sector is acutely sensitive to any tariffs or barriers that would make exports less competitive. We must also think of the vast numbers of people employed in the sector, as has been said—more than 10,000 directly in Scotland and six times that figure indirectly—in an array of jobs ranging from manufacturing, sales and marketing to logistics. Chemical sciences account for 33% of all Scottish manufacturing.

The regulation system achieved through REACH allows us to protect our environment and therefore human health. Industry and the public—our constituents —cannot afford to wait for the UK Government to act on these issues. Industries will still need to meet EU regulations after we leave the EU if businesses are to continue trading, so why is the Government’s position so vague? We are painfully aware that prolonged uncertainty could cost the taxpayers of this country millions of pounds and leave our exports in disarray.

I believe wholeheartedly that membership of REACH is vital to allow unhindered movement of medicines and drugs post-Brexit. Yet when they were asked by the Environmental Audit Committee to take a pragmatic approach to the UK’s future relationship to the EU single market for chemicals, the Government gave a meaningless response that held no answer. That is simply not good enough. As for Scotland, its continuing transition to a low-carbon energy country must be allowed to continue. It is important for everyone that that approach is seen as a way forward for the environment. Everybody here has asked questions; we now demand some answers.