United Kingdom Internal Market Bill

Karen Bradley Excerpts

Monday 21st September 2020 Commons Chamber

[Gavin Robinson]

It is a pleasure to follow the hon. Member for Stone (Sir William Cash), who has that classic flair of oratory, as when he said that some Members may be somewhat bothered to some degree. Whether we agree or disagree with him, he raises a smile through the Chamber.

I rise to speak in support of the amendments tabled by my party. Before I do, I want to reflect on the comments from the right hon. Member for Maidenhead (Mrs May). I regret some of the comments she made about the implications for relationships in Northern Ireland and the consequences associated with the Bill. Be it her contribution or many others on Wednesday and no doubt later today, there is an awful lot being said that is not only at cross purposes across the Chamber but completely misses the point. The right hon. Lady embarked on a political strategy that was encapsulated by the phrase “Brexit means Brexit”, and for nine months there was no greater clarity than that. Here we are four years later, and we know that what was outlined as a national aspiration and what was agreed to in a referendum by the people of this country is not being delivered for the people of Northern Ireland.

Members will remember the week in December 2017 when there was a flurry of activity around the formulation of what became the UK-EU joint report. They will also remember the work that had to go into getting provisions placed in that joint report at paragraph 50, which not only represented the principle that it was of no concern for the European Union to impede or impose upon the integrity of a member state, but stated:

“the United Kingdom will ensure that no new regulatory barriers develop between Northern Ireland and the rest of the United Kingdom, unless, consistent with the 1998 Agreement, the Northern Ireland Executive and Assembly agree… In all circumstances, the United Kingdom will continue to ensure the same unfettered access for Northern Ireland’s businesses to the whole of the United Kingdom internal market.”

That was in paragraph 50 of the joint report, but it was never honoured in the withdrawal agreement.

[Karen Bradley (Staffordshire Moorlands) (Con)]

The hon. Gentleman is making some powerful points. Does he recall that, when the first version of the European Union (Withdrawal) (No. 6) Bill was brought forward before the election last year, I and others tabled an amendment that would have put paragraph 50 of the joint report into the Bill, but that was not accepted by the Government?

[Gavin Robinson]

It was not accepted by the Government, but the right hon. Lady was a member of the Government who brought forward three iterations of a withdrawal agreement that did not honour that provision. That provision was not honoured in the earlier iterations of the withdrawal agreement.

[Karen Bradley]

The hon. Gentleman will recall that there was an addendum to the withdrawal agreement that was agreed and would have been lodged in the international court that would have made paragraph 50 part of an international agreement, but that was rejected by this House.

[Gavin Robinson]

The right hon. Lady may be right on that point, but here we are yet again, seeking to legislate domestically within the United Kingdom to right the wrongs of a negotiation that should never have advanced in the way that it did. Our Government fell into the trap of trying to provide an answer when they did not know what the problem was. They did not know what the future trading relationship was going to be. They did not know what the overarching trade deal was going to be between the United Kingdom Government and the European Union, and yet they set out to solve the problem of the Irish border without knowing what the overarching provisions would be. That made no sense, and it led us to the position we are in today. Here I am this evening, asking Members to consider provisions that should be part of this Bill but are not and saying that there are aspirations associated with this Bill that should equally apply to Northern Ireland—the whole of the United Kingdom internal market, as stated in the joint report—but do not. That is hugely regrettable.

I spoke on Wednesday about clause 46, on the provision of financial aid, and my party’s amendment 22 to clause 47, to ensure that there was no restriction on such aid for Northern Ireland businesses. The response from Government was, “That’s great. Thank you very much. Let’s consider it on Monday.” Here we stand on Monday. I have enormous respect for the Minister, but we are hearing, “Don’t worry about your amendments. We’ll consider them in the Finance Bill.” There remain important concerns about the European Union state aid rules that will apply in Northern Ireland. There is nothing in this Bill, there is nothing in the Government’s approach, and there is nothing in their plan that seeks to amend or fetter the rule of EU state aid rules within Northern Ireland.

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[Joanna Cherry]

That is correct, and it is worrying to hear my hon. Friend talk about the Kirk as he and I were both brought up in the opposite persuasion, but of course the Church of Scotland is also protected by the treaty of Union. So Members on the Government Benches can mock away; they should feel free to continue their mocking, which is seen in Scotland, and simply feeds the desire for Scotland to go a different way. They should keep up the mocking, because it is helping my party’s cause and it is helping the cause of my country.

[Karen Bradley]

It is an honour to rise today in this debate, following a number of very thoughtful contributions from right hon. and hon. Members across the Chamber. Although it is an honour to be called to speak today, I cannot pretend that it is an enjoyable experience, and that is because of the conflict that I feel. I feel desperately uncomfortable. I want to support the Prime Minister and the Government, and I know how the Minister feels. I have sat on that Front Bench far too many times, knowing that people behind me did not agree with my position.

I want to support the Prime Minister. I want to see the whole United Kingdom leave the European Union, respecting the referendum result, but I am desperately uncomfortable about being asked to vote to break international law. My instinct tells me that what the Government are asking me to vote for tonight is not the right thing to do or, to be charitable, may not be doing things in the right way.

The Government have been clear—they are on the record—that paragraph (5) is a breach of the withdrawal agreement, and we are angels dancing on the head of the pin as to when the law is broken. The law will be broken, if these clauses are used. It might be at Royal Assent, or it might be at commencement of the Act. It might be when the order is laid after the parliamentary vote—I thank the Government for agreeing to respect that and for agreeing to that amendment. I would like to hear from the Minister exactly what the Government’s position is now as to when the law will be broken, because no parliamentarian wants to walk through the Lobby knowing they are about to break the law.

Much has been made of the role that respecting the Belfast Good Friday agreement has in this debate. Let us be clear: the Belfast Good Friday agreement was the result of great statecraft and the power of words over violence, but it was also a triumph of compromise—or, as I used to be told I had to call it, accommodation. It was a settlement that meant that people living in Northern Ireland could be comfortable in their own identities, be that British, Irish, both or neither. As the hon. Member for Belfast South (Claire Hanna) said earlier, it was written at a point when both the UK and Ireland were members of the EU. I want to be absolutely clear: the Belfast Good Friday agreement was not contingent on our both being members of the European Union. It was a result of great statecraft, compromise and people being prepared to lead, and it would have happened if both countries had not been members of the same economic bloc. But the fact that both countries were EU members meant that the foundations of the Belfast Good Friday agreement—the Northern Ireland Act 1998 that this House passed—were written without the need to deal explicitly with matters that European citizenship and membership conferred. There was no need to write about citizens’ rights and how somebody who identifies as Irish and lives in Northern Ireland can exercise their right to be a member of the European Union when the country in which they reside is no longer a member of the European Union. It did not go into the points on customs and declarations. It did not talk about that because it did not need to. In fact, the reason we have the Bill—and I want to make it clear that I support the Bill as a whole; it is part 5 with which I have a problem— is because we need it, as the settlements on devolution were written at a time when we were a member of the European Union. We did not need frameworks on agriculture, because matters that will be settled by the devolved Administrations were governed by rules in Brussels.

I support our taking back control of those matters. Again, I have to make it absolutely clear that this has nothing to do with leaving the European Union. It is about how we make sure that we do so in the right way, so that I can hold my head up high and look people in the eye and say that I am proud to be a parliamentarian in this Parliament, which respects the rule of law. We have to remember that the world will judge us by the way in which we respect the Belfast/Good Friday agreement, even more than our breaking the withdrawal agreement.

--- Later in debate ---

[Martin Docherty-Hughes]

On the reputation of the United Kingdom and the identity of Irishness and Britishness in Northern Ireland, why was it up to Emma DeSouza to drag the right hon. Member’s Government through the courts fully to exercise their rights to identify as Irish and their rights as a European Union citizen in the High Court in Northern Ireland?

[Karen Bradley]

The hon. Gentleman would have to take up the reasons why the case was taken with the lady in question, but the DeSouza case is a clear example of how the Northern Ireland Act 1998 did not address these matters. I have been clear, in many interventions since I left my post last summer and while I was in post, that respecting the right of everybody who lives in Northern Ireland to identify in the way that they are comfortable with is incredibly important and we must respect it. So I say to the Minister: part 5 should not be in this Bill. The Government should not ask MPs to vote for an illegal law as a negotiating tactic. This part should be in a separate Bill, if these clauses are needed, and it should be debated separately; it should not be polluting what is otherwise a good and necessary piece of law. All possible steps to avoid needing these clauses should be taken.

I say to the Minister that I am undecided as to which way I will vote this evening, because I respect the fact that Government have moved and compromised, and I understand that that is a difficult thing for Governments to do. But I ask the Minister to give me clarity: if I walk through the Lobby today, am I breaking the law? If I walk through the Lobby today, will the law be broken as a result of my doing so? Will I have the answer for me at 3 am, not for my constituents or others, that I have done the right thing and that this will lead to a better result for the UK?

[Hilary Benn]

It is a great pleasure to follow that fine speech by the right hon. Member for Staffordshire Moorlands (Karen Bradley). I want to concentrate on how we get out of this mess without breaching international law and the treaty we signed up to. Four issues have caused all this: the question of exit summary declarations, the definition of “at-risk goods”, state aid and third country listing. The Bill deals with only some of those; further legislation is threatened to deal with the rest, but one has to look at them together.

The first thing I want to say is that it seems the Government are in a state of hopeless confusion on two questions. The first is: is the EU negotiating in good faith or not? I asked the Prime Minister that last week at the Liaison Committee and he told me it is not. Earlier that same day, the Northern Ireland Secretary told the Northern Ireland Affairs Committee that the EU is negotiating in good faith, and indeed the Government’s response to that Committee’s report confirmed that. I do not know whether that makes the Minister, for whom I have a great regard, the adjudicator in this matter, but perhaps he might offer his opinion in his wind-up, because the Government do not appear to be of one mind.

Secondly, I believe the Minister referred in his speech—I tried to write down the phrase as I recall it—to, “Harmful legal defaults that were never intended to be used” or words to that effect. If they are legal defaults that the Government object to, it really does raise the question: why did the Government sign up to those legal defaults when they negotiated the protocol and the withdrawal agreement, and signed that and extolled its virtues to the House of Commons?

On exit summary declarations, there is a place for this and other concerns to be resolved, which is in the Joint Committee, through the article 16 process. The House needs to ask itself why the Government have said so little thus far about their intention to use article 16 if a satisfactory agreement cannot be reached; I did not get an answer from the Prime Minister last week and, with respect, I did not get an answer from the Minister today, but it seems that the Government have so little faith in the mechanism they negotiated that they have decided that they need to take powers to breach the terms of the treaty, even though—I remind the Minister—article 168 of the withdrawal agreement says that, “For any dispute between the EU and the UK arising under this agreement, the EU and the UK shall ‘only’ have recourse to the procedures provided for in this agreement. This Bill drives a coach and horses through that sentence, which the Government agreed. In the statement that Ministers put out last week, the Government said that they would use the provisions of article 16 “in parallel with” the powers they wish to take in this Bill. In parallel? I really do not understand that as an argument, because surely they should use the mechanism they have negotiated first, and then if they are absolutely determined to break international law, they can get to that subsequently.

I come back to the point about the Joint Committee. Why have the Government not shared with the House the proposals they have made to the EU side about how goods at risk can be identified? It is simply not good enough. Part of the reason why the Government have got into such a mess is that they have not shared with us how the negotiations are going and have then suddenly produced a remedy that is contrary to international law to solve a problem the contents of which we are not aware of because Government have not shared with Members how things are going.

This is not an academic issue: many businesses that trade into Northern Ireland have absolutely no idea, with just over three months to go, of what the arrangements are going to be—none. There is a responsibility on both parties—the EU and the UK—to give them some clarity. Have the Government proposed using, for example, tariff lines as the way to define goods at risk? Or products and shipments, or companies as the basis? To those who have looked into the issue in great detail, it seems that those are probably the three broad approaches that might be taken. I ask the Government to please be open with the House of Commons on this matter.

On state aid, I find it impossible to believe that the Government did not realise what the full implications of article 10 might be. Everybody recognised that it brought into the ambit of the state aid rules what happens in Northern Ireland, but had it really not occurred to Ministers that there might be reach-back—I think that is the expression—implications for state aid in the United Kingdom? This is currently a theoretical issue, because there are not any cases. The Minister will be well aware that in the wake of covid, the EU Commission has significantly relaxed the state aid rules. Other EU members are giving state aid to all sorts of companies. The question is how the matter is going to be resolved by means other than resorting to the breaking of international law.

There is a great puzzle in respect of the Government’s position. When the Chancellor of the Duchy of Lancaster appeared before the Select Committee on the Future Relationship with the European Union on 11 March and we asked him whether businesses that trade out of England into Northern Ireland were going to be subject to the full panoply of state aid regulations, he replied:

“No, we do not believe so.”

That was in March, but apparently the Government do now believe so. What happened between March and now to lead them to that conclusion?

The Chancellor of the Duchy of Lancaster also said:

“The subsidy regime that the UK proposes to put in place after we have left the EU”—

we have now left the EU—

“will be one that the EU will recognise as a robust system.”

Here we are in September, and of a robust system for state aid there is no sight yet. How can that be the case? We read reports in the paper that the reason is because Ministers cannot agree on what kind of state aid policy they want.

The publication of such a policy is urgent for two reasons: not only for the purposes of sorting out the problem of potential reach-back, but for making a breakthrough in the trade negotiations. To be fair to the EU, it has moved from saying at the beginning, “You must follow all our rules on state aid in perpetuity,” to now saying rather plaintively to the Government, “Would you be so kind as to give us just an inkling of what your state aid regime is going to look like?” To announce that we are going to follow the World Trade Organisation rules is hardly a revelation, because as an independent member of the WTO we are obliged to follow the WTO rules. As we know, though, they lack important details and do not cover services.

The sooner the Government publish a state aid regime to answer the EU’s question, the sooner they can help the trade negotiations to move forward. Assuming that an agreement could be reached on that regime as part of the negotiations, the Government could, as the Minister will know, use article 13(8) of the withdrawal agreement to amend article 10, which is the cause of the potential problem—namely, reach-back.

The Bill does not deal with third-country listing, and no Bill could, because it is a regulatory decision of the European Union about the terms on which it lets third-country food and animal product imports into its jurisdiction. I happen to think that if the EU were to deny us such listing, arguably the UK could take the EU to the European Court, on the grounds that it was a perverse decision, or indeed the UK could certainly invoke article 16, on the grounds that denying the UK third-country listing was a breach of the good faith obligation under article 5.