Northern Ireland Protocol: Disruption to Trade

John Redwood Excerpts

Wednesday 13th January 2021 Commons Chamber

[Michael Gove]

I am grateful to the right hon. Gentleman for raising those issues. Members of Parliament from across Northern Ireland, representing all parties, and indeed Members of the Assembly and Northern Ireland businesses, have been in touch directly with me and others to provide detailed information about the challenges that individual companies face. We are grateful for that, because we want to do everything that we can to resolve those problems.

On the specific questions that the right hon. Gentleman raises, there have been some online sales organisations that temporarily paused the distribution of goods to Northern Ireland, but the majority of parcel distributors continue to distribute goods. We are working with those who have paused—a small number, admittedly—to ensure that they resume normal service. It is important to recognise, as he pointed out, that although Northern Ireland’s businesses have been well prepared for the protocol, there are businesses sited in Great Britain, which operate in Northern Ireland, that we need to work more closely with to acquaint them with the guidance to provide the necessary reassurance.

The right hon. Gentleman made a point about steel tariffs; those tariffs would provisionally apply only to steel from the rest of the world, not to steel from Britain or the EU entering Northern Ireland, but we are looking at ways in which we can provide, through either the quotas or appropriate rebates, an automatic guarantee that businesses will not pay those tariffs for the steel that they need.

The right hon. Gentleman mentioned the concern that customers have had about the shortage of specific goods in supermarkets. There was initial disruption, but I am pleased to say that Andrew Opie of the British Retail Consortium confirmed earlier today to the Future Relationship with the European Union Committee that those shortages have now been overcome, pretty much. The right hon. Gentleman is absolutely right, though, that we need to make sure that we have a sustainable approach for the end of the grace period at the end of March, and I will be working with Helen Dickinson of the BRC, and others, to do just that.

The right hon. Gentleman mentioned some of the difficulties that businesses have had with the trader support service; 95% of queries have been answered within 15 minutes, but we still must do better in order to ensure that every business gets the support that it needs. I have been in touch with the Road Haulage Association and Logistics UK to deal with some of the specific problems that hauliers face, and we are contemplating what more might be required to support them.

On one final point, I know that the right hon. Gentleman and a number of other Members have been deeply concerned about the operation of additional VAT costs on second-hand vehicles being sold in Northern Ireland. I can confirm today that Her Majesty’s Treasury and HMRC will reinstate a margin scheme in order to ensure that Northern Ireland customers need pay no more than those in any other part of the United Kingdom.

[John Redwood (Wokingham) (Con) [V]]

Will my right hon. Friend introduce urgent legislation to ensure the smooth flow of goods between Northern Ireland and GB? Is it not crucial to our Union, in respect of both Northern Ireland and Scotland, that the Government keep their promise to take control of our laws and borders and to demonstrate a more prosperous internal market for the whole UK?

[Michael Gove]

My right hon. Friend is absolutely right. We want, first of all, to make sure that we are doing everything technically and administratively in order to ensure the smooth flow of goods but, as the Prime Minister confirmed to the House earlier, if we need to take further legal steps, then of course we will.