Leaving the EU: Consumer Protection

Julian Sturdy Excerpts

Tuesday 10th October 2017 Westminster Hall

[Vicky Ford]

I agree, and I thank the hon. Lady for her intervention. Interestingly, when the consumer organisation Which? surveyed British businesses, it found that those businesses, too, want to ensure that consumer interests are properly considered and maintained as part of the Brexit negotiation. That is precisely why British manufacturers say, “We want to continue to be part of the product-setting networks. We must have a seat at the table when they are agreed.” There are non-EU countries where manufacturers and standard-setting bodies are involved in the negotiations on the standards. It should be perfectly possible to maintain that in a deep and special relationship. It is in the interests of both parties.

It is also important to remember that consumer legislation continues to evolve. We need to ensure that legislation keeps up with the digital age. The digital world is increasingly borderless: our consumers are buying products not just from local retailers but, increasingly, from large global retailers, so it is important that we have international agreement on consumer issues. As I have said, the global forums for setting standards, particularly on digital consumer issues, often lack detail. Therefore, co-operation with Europe is necessary.

A key part of digital trade relates to the use of data. The ability of consumers to use comparison sites and to get consumer feedback means that they are increasingly empowered and informed. Our consumers need data.

[Julian Sturdy (York Outer) (Con)]

As has already been said, my hon. Friend is making a powerful speech. She talks about consumers making informed decisions. Does she see an opportunity with Brexit to take things further? One of my campaigns is for the opportunity to expand country of origin food labelling to allow consumers to make a more informed choice. We could expand the products that country of origin food labelling could be applied to.

[Vicky Ford]

Consumer choice is key, and I will discuss food standards, especially when I talk about trade relationships with other parts of the world. Being able to make a consumer decision increasingly relies on being able to access data, to go on to a database and to work out where to make a purchase in a digital world. The free flow of data also underpins digital streaming services, retail loyalty cards and use of cloud computing services. Without the free flow of data, businesses—but also consumers—would find themselves at a disadvantage.

Later this week, we will debate the future of data post-Brexit in the main Chamber. I contend that it is extraordinarily important for British and European consumers that we continue to have a free flow of data post-Brexit. Without that, British consumers will find that they cannot access information or comparison sites in anything like the detail they can at the moment, and many European companies will find significant barriers to their own business. There is no world trade agreement on digital data flows, so it is important that a decision is made on that area.

Another area I want to speak about in detail is the travel sector, because unless agreements are made in favour of consumers on travel, they will face significant impacts. For many consumers, the main impact of Brexit will be what happens on their holidays. The rest of Europe remains the most popular destination for British travellers. In 2015, British citizens made 32 million trips to the rest of the EU on holiday; EU citizens made 9 million trips to Britain. Two hundred million passengers fly through British airports every year.

As we all know, unless negotiated, the UK will lose access to the EU common aviation area, which risks affecting both flights from Europe into Britain and flights in the UK. There are also the many aviation agreements—more than 50—that the EU has with the rest of the world on airspace issues. It is imperative that access to airspace and landing rights is negotiated. Last week, we saw 100,000 people having problems with flights when Monarch collapsed. If there is no agreement or action on flights, tens of millions of consumers will be affected. That is why it is so good that the Government have started work on the areas that will be most affected if there is not a deal.

Aviation safety is also really important. The UK is currently covered by the European Aviation Safety Authority and, unless we continue to be a member of that, the Civil Aviation Authority will have to set up an equivalent, which would take time. That is precisely the sort of issue that needs a decent, long, thought-through transition period so that safety is not risked due to a cliff edge of uncertainty. Furthermore, today under EU law when flights are delayed or cancelled, passengers have a right to reimbursement or repatriation. It is important that we know soon whether those rights will continue. Airline tickets go on sale about 10 months before the first flights, so from next summer the airline companies will be trying to offer flights in a post-Brexit world and they need to know what rights go with their tickets.

Furthermore, non-air transport issues need to be considered. Today, British drivers are covered by the motor insurance green card, which means that we can drive from our homes across to the continent using our own motor insurance and that, if we have an accident with someone from elsewhere in the EU, the insurance will cover claims and compensation. If the green card arrangements are no longer in place, drivers may need additional insurance cover, which is especially important not just to individual consumers but to the freight transport sector.

I was glad to hear in the Chamber yesterday that another issue for travellers seems to have been resolved: the European health insurance card. There are about 27 million EHICs in the UK and last year those cards would have been used by more than 200,000 British travellers. Both sides—Europe and the UK—have said that they wish that to remain. It needs to be agreed in detail, but that does show that progress is being made on these key issues.

The final issue for travellers I want to mention is mobile roaming. This summer, my children certainly cheered when they got on the plane and found out that they would be able to use their phones without additional costs. Abolishing roaming charges has been especially popular with younger people. I know how extraordinarily tricky it was to negotiate that, having played a part in the negotiations myself. A deal on roaming and other digital issues needs to be a key part of our future trade agreement with the EU—and indeed of all future trade agreements.

Brexit gives us the opportunity to create new consumer-focused trade policy. That brings many benefits. Trade agreements bring consumer choice, variety, lower prices and the right to be able to buy products from many different countries of origin, including our own, as my hon. Friend the Member for York Outer (Julian Sturdy) correctly pointed out. However, we know that consumer confidence cannot be taken for granted. There have been many recent reactions and protests by consumers against trade agreements, particularly the proposed EU-US trade agreement, the Transatlantic Trade and Investment Partnership. As a member of the European Parliament, I remember receiving more than 10,000 emails over one weekend, nearly all of them different, about TTIP.

Consumers recognised the benefits of cheaper goods and services, but they also said firmly that this should not come at any cost. In particular, the public would be concerned about any drop in standards on food or animal welfare products. That is why the hon. Member for East Dunbartonshire (Jo Swinson) and my hon. Friend the Member for York Outer are both right to point out that it is in the interest of businesses to maintain standards, but also important that people know where their food especially is coming from.

The TTIP experience shows the problem of a disconnect between the public and the negotiators on trade issues and points to the need for transparency. It shows that the public and consumer organisations need to be involved in trade negotiations. It is important that those of us who want to continue to have a free market economy and free trade with the rest of the world prioritise the opportunities from the consumer’s perspective.

That is why it is important that we focus on issues such as mobile roaming and the real barriers that travellers face, so that they can see we are focused on the issues that consumers focus on. Brexit offers an opportunity for both the UK and EU to rethink and reset our approach to how we trade with each other and those across the world, but it will only retain the support of the public if consumers and consumer protection are put at the heart of the policy.