United Kingdom Internal Market

Julian Smith Excerpts

Thursday 1st February 2024 Commons Chamber

[Julian Smith (Skipton and Ripon) (Con)]

Again, I pay tribute to my right hon. Friend the Member for Daventry (Chris Heaton-Harris), the Prime Minister, all of the Northern Ireland parties and, most importantly, the DUP for this negotiation, and I thank the Opposition for their support. I note that this instrument, like the previous one, is liable not to go to a vote, and that there will again be total unanimity across this House. It is really important that we continue to make that point.

I know that the DUP was very concerned that in 2020 measures were dropped from the United Kingdom Internal Market Bill, and I am delighted to see those protections returned. This instrument, like the previous one, emphasises how the DUP has negotiated all the detailed elements that the hon. Member for Belfast East (Gavin Robinson) has just outlined, compared with a blank sheet from those who are currently making arguments against the DUP’s acceptance of this deal.

[Sir Jeffrey M. Donaldson]

I thank the right hon. Member for his work in trying to move things forward. On the very point he has just made, does he agree with me that it was due to the tenacity of my colleagues and me in not giving up when, in 2020, those clauses were dropped? We persevered and we kept pressing—when others gave up, this party kept at it—and now we see the fruits of our labours with the insertion into the United Kingdom Internal Market Act of key clauses that protect our unfettered access to the United Kingdom and its internal market.

[Julian Smith]

I wholeheartedly agree with the leader of the DUP. This negotiation, as I have observed, has involved hours and hours from the negotiating team, from my right hon. Friend the Secretary of State and from the Prime Minister’s team. It has been dogged and ongoing, and it has been hours of work. I observe some of the debate in Northern Ireland and some of the criticism, but I look at the lists of improvements that have been won, and I again pay tribute to those improvements.

This statutory instrument speaks to a broader point in Northern Ireland, which is the economy and the opportunity for economic improvement. Before talking briefly about that, I would like to pay tribute to the business groups in Northern Ireland that have shown great patience since the Brexit vote on how to resolve many of the practical issues they were faced with. In the Northern Ireland Chamber of Commerce and Industry, the CBI, the Institute of Directors, the Federation of Small Businesses and the Northern Ireland Business Brexit Working Group, many people have been working very hard to seek resolution, and I know that each and every one of those organisations will be pleased with what they have seen this week.

There are huge opportunities in Northern Ireland for the defence sector, the cyber sector, agriculture, pharma and more. Whether it is meat exporters who will be welcoming the tariff deal, the many businesses working with the US special envoy this week in Northern Ireland, or the various economic and inward investment seminars and activities my right hon. Friend the Secretary of State has been organising, all of these businesses will benefit, and they will create jobs and opportunities for families, young people and citizens in the future.

I would like to move away slightly from the statutory instrument, and go back to the Command Paper to reference the paragraph on corporation tax. What has been negotiated by the Government and the DUP on that front is to begin a working group between the Treasury here in London and the Department of Finance in the Northern Ireland Executive to look at the competitiveness of Northern Ireland’s corporation tax, and that gives Northern Ireland an additional opportunity to maximise its already unique position in the United Kingdom.

[Sir Jeffrey M. Donaldson]

I draw the right hon. Member’s attention to a further element in the Command Paper that proposes a special investment zone for Northern Ireland, which will deliver an extra £150 million of funding to drive growth in our economy. Does he join me in welcoming the interest of the Secretary of State for Scotland in working with us to ensure that the ports of Cairnryan and Stranraer are included, so that the links with Larne and Belfast are strengthened, and the Union connectivity that binds our country together is valued, invested in and expanded for the future?

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[Julian Smith]

I absolutely agree with those comments. We see that in the Command Paper with Intertrade UK, which I hope will have excellent subject matter experts to build trade opportunities further, as well as with the East-West Council and various other groups.

The Command Paper is much more than a constitutional or legislative document. It is the basis for building on the already extremely exciting opportunity that Northern Ireland has to conquer in multiple sectors of the economy. I presume we will now be moving on to looking at talent and skills, and at how people from poorer nationalist areas or poorer Unionist areas can maximise these economic opportunities. This document is the basis for moving forward for Northern Ireland under a new devolved Executive, and for Northern Ireland knocking the lights out in various sectors of the economy in years to come.

[Jim Shannon]

rose—

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[Sammy Wilson]

Perhaps the Minister can tell us what proof companies will have to give and how onerous that proof will be. What will happen where it becomes clear that there is abuse in goods moving through Northern Ireland into GB? It appears—again, if I am misreading this, perhaps the Minister can explain it to me—that proposed new section 45C indicates that guidance will be given to local authorities, probably through bodies and so on, as to what needs to be done to keep the free flow of goods between Northern Ireland and GB, but proposed new section 46A states:

“The Secretary of State may revise or revoke (in whole or in part) any guidance issued under this section.”

In what circumstances would that guidance be given? If it were given, what would the impact be on the free flow of goods from Northern Ireland to GB, which is more than 60% of our market? It is about those details.

When we have this kind of seal of an agreement, with all the wide-ranging and broad-brush aspects, we sometimes find that when we get down to the detail it falls apart, as happened in the Windsor framework—let us not forget that it fell apart within about two days of the Prime Minister giving the assurances. It is important that we understand all the various scenarios that are being painted in such a detailed SI as this.

First, will the Minister give us an assurance about what is happening to the green lane infrastructure—will the SIs and the EU regulations be removed, or will they stay in place, as part of the Windsor framework, the protocol and the withdrawal agreement? Secondly, what are the five categories of goods that will require export declarations? People need to know. Thirdly, when it comes to the goods flowing into GB, under what circumstances will the border operating model be applied to them? The final point I want to make is this—

[Julian Smith]

Will the right hon. Member give way?

[Sammy Wilson]

I only have one minute left. We are told in paragraph 100 of the Command Paper that for goods going through the green lane, some declarations of “standard commercial information” will be required. Perhaps the Minister could tell us what standard commercial information companies will be continue to be required to supply, even under the agreement.