Product Regulation and Metrology Bill [Lords] Debate

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Department: Department for Business and Trade
And yet there have not been significant changes in Committee. I therefore recommend that the House supports our amendments in the Lobby this evening.
Justin Madders Portrait The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
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I thank all hon. Members for contributing to the debate—my hon. Friends the Members for Stoke-on-Trent Central (Gareth Snell), for Stoke-on-Trent South (Dr Gardner), for Newcastle-under-Lyme (Adam Jogee), for Walthamstow (Ms Creasy), for Harlow (Chris Vince), for Erewash (Adam Thompson), the hon. and learned Member for North Antrim (Jim Allister), the Liberal Democrat spokesperson the hon. Member for Richmond Park (Sarah Olney) and the shadow Minister the hon. Member for West Worcestershire (Dame Harriett Baldwin). I will address many of the points they raised during the debate.

I welcome the Liberal Democrat spokesperson to her new role. I do not know whether it is a promotion or demotion, but I welcome her all the same. As always, it was a pleasure to hear from my hon. Friend the Member for Erewash and his great technical insight. Indeed, we have our own Professor Yaffle in his House—those of a certain age will know who I am referring to. His expertise was greatly appreciated in Bill Committee and again today.

Amendments 9, 11 and 12 would remove clause 1(1) from the Bill. Of course, that is the central power to keep consumers safe and our product regulations updated. As I said in Committee, our product regulation framework is extensive. We have hundreds of often technical regulations. Removing clause 1(1) would freeze our regulations in time. We would be unable to respond to new risks, products or business models. I cannot accept an amendment that would stop us from protecting consumers and businesses from product-related harm.

Joshua Reynolds Portrait Mr Joshua Reynolds
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The Minister talks about protecting consumers. That is exactly what new clause 2 would do by making them aware when a product gets smaller but the price remains the same—shrinkflation—so will he work with us and get that clause into law?

Justin Madders Portrait Justin Madders
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I will address new clause 2 in due course. That is a more a consumer-related issue than a product safety one, but I understand the intent behind it.

We have heard a lot of concerns—many of them misplaced—about the breadth of powers contained within the Bill. In the other place, we did increase the measures that will be subject to the affirmative procedure. We removed several Henry VIII clauses and added a statutory consultation requirement. We also published a code of conduct, available in the Library of the House, which sets out exactly how the powers under the Bill will be used. I now believe the Bill strikes the right balance of appropriate parliamentary scrutiny without clogging up parliamentary time with highly technical product regulations. Gutting the Bill by removing the central power would leave consumers unprotected.

Amendments 10, 14 to 17, 25 to 29 and 32 all relate to EU law. I want to be absolutely clear yet again that the powers in the Bill give the UK the flexibility to manage its own product regulatory framework. Part of that is, of course, ensuring that the UK can respond to relevant developments in EU law. It does not mean that the UK is beholden to EU changes, and all regulations will be subject to Parliament’s oversight. I also wish to reassure the House that the Government remain committed to our obligations under the Windsor framework. The reason the Bill explicitly references the EU rather than other jurisdictions is that most of our product regulation is, of course, inherited from EU law. The UK continues to recognise certain EU product requirements—a policy that was, of course, enacted under the previous Government only 12 months ago.

The Bill’s powers allow us to continue or end such recognition based on the UK’s interests on a case-by-case basis. Decisions on whether to diverge or align will be made as they come along and will only be implemented by laying a statutory instrument in Parliament. Recognition of EU product requirements would be stated in UK law and could only be enforced by UK authorities. The Bill does not grant jurisdiction to foreign courts. I find amendment 15, which would prevent CE recognition, an odd amendment to be pushed by the Conservatives given that they introduced regulations only a year ago that did the absolute opposite.

New clauses 8, 14, 16 and 17 and amendments 13, 31 and 33 deal with themes of EU law, parliamentary scrutiny and oversight. These amendments duplicate the robust safeguards already in the Bill and the statutory and non-statutory controls that we have published in our code of conduct. Those include the statutory requirement for consultation and assessments under the better regulation framework. The Government value Parliament’s role in scrutinising legislation, so we will continue to consult all the devolved Governments as appropriate to ensure that regulations work for the whole of the UK.

Let me turn to amendments 1, 12, 18 and 30, on parliamentary scrutiny. The Bill as introduced already applied the affirmative procedure in key areas, including the creation of criminal offences—contrary to what has been said this afternoon—and amending primary legislation. However, in response to matters raised by the DPRRC, we have added additional areas, which are set out in clause 13(4). For the avoidance of doubt, I can confirm that the affirmative procedure applies to the following: the creation of criminal offences; the first use of regulations covering online marketplaces; the first time duties are imposed on a new supply chain actor; regulations conferring powers of entry, search or inspection; regulations to disapply requirements in response to an emergency; regulations covering the sharing of information between persons; regulations on cost recovery; regulations amending or repealing the Gun Barrel Proof Acts; consequential amendments to primary legislation; and regulations amending the definition of online marketplaces.

Allison Gardner Portrait Dr Gardner
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Does the Minister agree that online marketplaces should have a greater responsibility to ensure the safety and authenticity of the products they sell, just like a retailer on our high streets?

Justin Madders Portrait Justin Madders
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I absolutely agree, and that is one reason why the Bill has been introduced. We absolutely need to keep up to date with developments in the online marketplace world, which is why we have introduced this legislation. It is not, as has been suggested, an unbridled use of powers; it sets out a clear set of principles and provides for the use of the affirmative procedure in most cases. There are already a number of regulations that will be transposed as they stand—there are about 2,500 pages of product regulations, including to do with noise levels emitted from certain types of machinery and the ergonomic design of personal protective equipment. Increasing the list of regulations subject to the affirmative procedure to cover such matters risks miring Parliament in a level of technicality that I think only my hon. Friend the Member for Erewash could follow. I do not think that is a good use of parliamentary time, and I believe the Opposition used to think that too, which is why the powers in the Consumer Protection Act 1987, which is similar to what we are dealing with today, remained in place under successive Governments.

I will deal now with new clause 15, tabled by my hon. Friend the Member for Walthamstow. She raised some important points, and I thank her for setting out the rationale behind her new clause so clearly. First, I reassure the House that we are not looking at the same level of regulatory change that was necessitated when we left the EU. We anticipate no more than half a dozen uses of the powers a year. That is because the fundamentals of the regulatory framework are already in UK law—thousands of pages, as I have referred to, and many of those provisions have been through previous scrutiny processes. The majority of future changes using the power in the Bill will be smaller and technical.

I recognise the concerns raised, though. When we were a member of the EU, directives enacting major regulatory changes were regularly transposed into UK law using the negative procedure. Our Bill contains many more safeguards than were in place before, meaning that the affirmative procedure will be used far more often, as I have set out. Careful consideration was given in the development of the powers to ensure that we struck the right balance between good use of parliamentary time and the processing of highly technical changes. We listened to the concerns raised by members of the Delegated Powers and Regulatory Reform Committee and went further, broadening the areas requiring scrutiny, as I have set out.

As Lord Pannick said, the practical reality is that technical regulations of the breadth and complexity that will be produced cannot sensibly be enacted by primary legislation. If we used primary legislation every time we wanted to do something on product safety, we would have little time for anything else. However, to provide maximum transparency in this space, we also published a code of conduct setting out the statutory and non-statutory guardrails in place before regulations can be made. That included a statement on how we will engage and consult with a wide range of stakeholders to ensure that their views are considered. We will continue to review and update the code of conduct, and of course we will be happy to take suggestions on how we can be clearer about Parliament’s role in the scrutiny of regulations.

Given those assurances, I believe we have struck the right balance between scrutiny, the appropriate use of parliamentary time and the flexibility needed to keep our product and metrology regulations up to date. I hope that gives my hon. Friend the Member for Walthamstow some reassurances.

Stella Creasy Portrait Ms Creasy
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I thank the Minister for setting that out. It is incredibly helpful and reassuring to many of us to hear that in this instance just a handful of regulations would be affected. I hope that Business Ministers have heard the wider call for us to look at the issue across the piece; in fact, I am sure that the Minister will want to feed that in. What he said is very welcome and I am sure that all hon. Members who supported my new clause will be reassured accordingly.

Justin Madders Portrait Justin Madders
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I am sure that Ministers across Government will have heard the important points that my hon. Friend has made today.

Amendment 7 on consumer protection could have unintended consequences as product safety is not one-dimensional; it requires consideration of multiple risks and consumer and business needs. For example, we are undertaking a significant programme of work considering furniture safety and the balance between fire risks and the possible effects of exposure to chemical flame retardants. Were the amendment adopted, we would be open to challenge by any interest groups unhappy with how regulations balance those factors. Indeed, when I gave that example in Committee, the Liberal Democrat spokesperson, the hon. Member for Chippenham (Sarah Gibson), said that it was a compelling reason for not accepting the amendment, so I hope the hon. Member for Richmond Park will not move that amendment.

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Justin Madders Portrait The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
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I beg to move, That the Bill be now read the Third time.

This Bill will help to preserve the United Kingdom’s position as a global leader in product regulation, supporting businesses, protecting consumers and ensuring a fair and level playing field across our economy, whether on the high street or on online marketplaces. It is designed to future-proof our approach to product regulation and metrology, ensuring that we can respond effectively to emerging technologies, tackle modern-day safety challenges and create the conditions for safe innovation and sustainable economic growth. By strengthening the system that underpins confidence in our goods market, we are reinforcing one of the core pillars of a productive and competitive economy.

As hon. Members will know, the majority of the UK’s product safety and metrology laws have their roots in EU legislation developed over the past 40 years. That framework served us well in many respects, but, of course, we have left the European Union, so we have a responsibility and an opportunity to tailor our rules to the UK’s own needs, circumstances and ambitions.

Laurence Turner Portrait Laurence Turner (Birmingham Northfield) (Lab)
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We have heard arguments today, as we did in Committee, that this measured Bill is some mysterious route back into the EU. Does the Minister agree that, far from discovering a Trojan horse, the Opposition are trying to flog a dead one and that their arguments have been made up on the hoof?

Justin Madders Portrait Justin Madders
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I give my hon. Friend 10 out of 10 for ingenuity. I have heard so many references to horses during the passage of the Bill that at times I felt I was at the Aintree racecourse. We can be clear that the Bill will not lead to dynamic alignment by default.

Chris Vince Portrait Chris Vince
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We have heard a lot of myths about the Bill. The other myth that has been parroted is that the Bill will see the end of the great British pint. Does the Minister agree that actually it secures the great British pint? I look forward to enjoying one with him in the next few months.

Justin Madders Portrait Justin Madders
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Indeed, the Bill does secure the great British pint; thanks to an amendment in the other place, it will hopefully be enshrined in law. I look forward to joining my hon. Friend in enjoying one at some point in the not-too-distant future.

The pace of change in both consumer behaviour and product innovation is only accelerating. From connected devices and artificial intelligence to new materials and manufacturing methods, the nature of risk and regulation is constantly shifting. We must ensure that our regulators are equipped with the right tools to act quickly and proportionately so that we can both manage and harness the hazards and the economic potential of new technologies. The Bill provides the powers to do just that. It gives Parliament the ability to update and strengthen product regulation and legal metrology in a coherent, consistent way.

Adam Thompson Portrait Adam Thompson
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Does the Minister agree that the Bill is instrumental in keeping the UK at the forefront of science internationally?

Justin Madders Portrait Justin Madders
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I thank my hon. Friend for his intervention—he has certainly got the measure of this Bill. [Hon. Members: “Oh.”] I will not give up the day job—and we will not have a Division on that, either.

This is a framework that supports businesses by reducing unnecessary burdens, supports consumers by keeping dangerous goods off the market and supports the UK economy by making our regulatory system more agile, more responsive and more transparent. In short, the Bill will help to ensure that every product on the UK market, whether made in the United Kingdom or imported from abroad, meets the expectations of safety, fairness and quality that the public rightly demand.

Gareth Snell Portrait Gareth Snell
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The Minister rightly points out that the Bill will allow for new regulations to come on board to keep us safe, but the safety element of that comes about through the enforcement of those new rules. Can he say a little about the conversations happening across Government to ensure that our enforcement agencies are properly resourced to enforce the new regulations that are so vital?

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Justin Madders Portrait Justin Madders
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My hon. Friend makes an important point. The Ministry of Housing, Communities and Local Government will be primarily responsible for enforcement at the local level, but the Bill also increases the powers of local trading standards to enforce measures.

The Bill affects the whole of the UK. We have worked closely and constructively with devolved Governments on policy development through regular engagement and throughout the Bill’s passage at both ministerial and official level. I therefore thank the devolved Governments, Ministers and their teams for working so constructively with us.

In Committee, we tabled an amendment that placed a statutory requirement on the Secretary of State to obtain the consent of the devolved Governments where regulations contain provisions within their devolved competence. We believe that provides for the most effective and appropriate role for the devolved Governments in a way that respects the individual devolution settlements. I am pleased to report that the Senedd passed a legislative consent motion for the Bill yesterday. I have also had constructive discussions with the Scottish Government and the Northern Ireland Executive, and both have recommended legislative consent to their respective legislatures. We will continue to work collaboratively with those bodies to develop product regulation that best supports businesses and consumers across the whole of the UK.

I will provide a quick recap of some of the changes made to the Bill by the Government since it was introduced last year, in addition to the devolution amendment, because there has been some misconception about what the Bill does and does not do. We have added a statutory consultation mechanism to ensure that stakeholders can shape product and metrology regulations. We have extended the affirmative procedure to parts of the Bill to further boost parliamentary scrutiny; for the avoidance of doubt, they are detailed in clause 13(4). The affirmative procedure therefore now applies to: the creation of criminal offences; the first use of regulations covering online marketplaces; the first time duties are imposed on a new supply chain actor; regulations conferring powers of entry, search or inspection; regulations to disapply requirements in response to an emergency; regulations covering the sharing of information between persons; regulations on cost recovery, which I have already referred to in my response to the intervention from my hon. Friend the Member for Stoke-on-Trent Central; regulations amending or repealing the Gun Barrel Proof Acts; regulations on consequential amendments to primary legislation; and regulations amending the definition of online marketplaces. As Members will be aware from the responses on Report, there were a number of reasons that we want flexibility with regard to online marketplaces, which we believe will develop in ways that we cannot predict.

I can confirm that aviation safety products are exempted from the Bill as they are covered in existing legislation.

The Government have published a code of conduct that sets out the statutory and non-statutory guardrails to ensure that regulation made under this legislation is proportionate and well designed. It is also worth addressing the criticism that this is a skeletal Bill and pointing out that the proportion of skeletal Bills tripled in 2016-2023 compared with 1991-2015. Indeed, in the former period, some 19 separate Bills were described as skeletal by the Delegated Powers and Regulatory Reform Committee.

Michael Wheeler Portrait Michael Wheeler (Worsley and Eccles) (Lab)
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Does the Minister agree that, far from being a skeletal Bill, this legislation provides an adaptable framework for product regulation and consumer safety?

Justin Madders Portrait Justin Madders
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My hon. Friend is right; indeed, this goes well beyond the measures in place when we were in the EU when it comes to parliamentary involvement. I will briefly refer to contributions made by hon. Members during the passage of the Bill.

I thank my counterpart in the other place, Lord Leong, for shepherding the Bill through the Lords, with support from Lord Hunt of Kings Heath. I also thank the hon. Member for West Worcestershire, who has been alongside us throughout the passage of this Bill in the Public Bill Committee. The hon. Members for Wokingham (Clive Jones), for Chippenham and for Richmond Park, who represented the Liberal Democrats in Committee and in the Chamber, are a trio that we will never forget. I hope that the short passage of this Bill is not a reflection of the high turnover in Liberal Democrat spokespeople—they have engaged with the Bill in a constructive manner.

I thank hon. Members who engaged in the Bill Committee and the right hon. Member for South Holland and The Deepings (Sir John Hayes) and my right hon. Friend the Member for Walsall and Bloxwich (Valerie Vaz), who chaired that Committee with great expertise. It is probably worth mentioning my hon. Friend the Member for Stoke-on-Trent Central again. He has championed the ceramics industry both today and on Second Reading, and we recognise his great contributions.

Finally, I pay special tribute to my hon. Friend the Member for Erewash (Adam Thompson), who, as the first elected metrologist to this House, has brought a deeply technical and knowledgeable perspective to our debates, which we all appreciate—although I do not think we could ever be asked to take a quiz on the finer details of his work.

Adam Thompson Portrait Adam Thompson
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On that point, could the Minister elaborate on how the Bill supports the advancement of British science?

Justin Madders Portrait Justin Madders
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I suspect that my hon. Friend would be far better at doing that himself. His speech on Second Reading was a fantastic example of how we explain legislation matters and practice. It is important that we have certainty and consistency in how we measure things and that we have a clear legislative framework for the measurements that underpins all science. He gave us a historical sweep of those issues when he spoke on Second Reading.

It is important for me to pass on my gratitude to all those officials who have supported us in the passage of the Bill, as well as the parliamentary staff who have enabled it to come through swiftly and smoothly. It will return to the other place for consideration of the amendments we have made in this place, and I am confident that—in the spirit of constructive scrutiny and co-operation that has characterised its progress so far—it will continue on its way. This legislation is an important step in strengthening our domestic regulatory regime and ensuring that it is robust, future-facing and fit for purpose in a post-Brexit economy. I look forward to working with colleagues in the other place to ensure that the Bill finally reaches the statute book as swiftly as possible.

Caroline Nokes Portrait Madam Deputy Speaker (Caroline Nokes)
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I call the shadow Secretary of State.