Draft Equipment and Protective Systems Intended for Use in Potentially Explosive Atmospheres Regulations (Northern Ireland) 2017 (Amendment) (Northern Ireland) Regulations 2023

Kevin Hollinrake Excerpts

Wednesday 12th July 2023 General Committees

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

I beg to move,

That the Committee has considered the draft Equipment and Protective Systems Intended for Use in Potentially Explosive Atmospheres Regulations (Northern Ireland) 2017 (Amendment) (Northern Ireland) Regulations 2023.

It is a pleasure to serve under your chairmanship, Mr Vickers. The purpose of this statutory instrument is to ensure that the Windsor framework, in respect of European Union directive 2014/34/EU, known as the ATEX directive, is properly implemented in Northern Ireland, and to introduce provisions regarding UK(NI) marking.

The ATEX directive aims to prevent equipment or protective systems from becoming sources of ignition in atmospheres that could be explosive if conditions lead to dangerous levels of flammable gases, mist or dust. Settings where these conditions could arise include petrol stations and a range of mainly industrial locations, such as mines, agricultural silos and chemical processing plants. ATEX-compliant handheld radios would, for example, be mandatory for safe communication in environments with potentially explosive atmospheres, where a spark could react with the air to cause an explosion.

There are separate GB and Northern Ireland regulations covering ATEX requirements. The Northern Ireland ATEX regulations—the Equipment and Protective Systems Intended for Use in Potentially Explosive Atmospheres Regulations (Northern Ireland) 2017—were made by the Department for the Economy in Northern Ireland, with the Health and Safety Executive for Northern Ireland enforcing them. Currently the Northern Ireland ATEX regulations refer only to the EU market, which no longer includes Northern Ireland.

Conformity assessment bodies perform the vital role of assessing whether specified requirements relating to a product, process, system, person or body are fulfilled, carrying out calibration, testing, certification and inspection activities. For the ATEX directive, as for other directives, there is a system of mutual recognition of conformity assessment bodies, meaning that a given EU country recognises the results from a conformity assessment body located in another EU country.

This system of mutual recognition does not apply to UK conformity assessment bodies, which are now outside the EU. To address that, relying on a derogation in the framework, the UK previously legislated for a new UK(NI) marking to be applied in addition to the CE marking, where goods requiring mandatory third-party conformity assessment have been tested against EU requirements by a UK body. The UK(NI) marking applies when placing such products on the Northern Ireland market.

This instrument makes the necessary amendments to ensure that the Northern Ireland ATEX regulations reflect the fact that the UK has left the European Union. For example, it ensures that references to member states are replaced with an appropriate term that includes Northern Ireland—but not GB—and the European economic area states. It also ensures that information obligations on the UK to inform the Commission and member states apply only to information in respect of Northern Ireland and not the rest of the UK.

The instrument introduces new provisions on the UK(NI) marking into the Northern Ireland ATEX regulations. In line with the Windsor framework, a manufacturer that wants to supply an ATEX product for the Northern Ireland market will need to manufacture that product to EU requirements. If that product requires third-party conformity assessment under the relevant EU legislation, and if a UK conformity assessment body is used to do that, the manufacturer will be legally required to apply the UK(NI) indication, which must accompany the CE or other relevant conformity marking. Failure to comply with this new requirement will be a criminal offence in Northern Ireland. The Northern Ireland Department of Justice has confirmed that the new offence of failure to comply is consistent and proportionate and will not have a detrimental impact on the criminal justice system in Northern Ireland.

As a result of the additional UK(NI) marking requirements, some businesses may incur costs associated with familiarisation with the new requirements and the labelling itself. However, the impacts of these changes are expected to be very limited.

My officials in the Office for Product Safety and Standards will be providing online industry guidance to coincide with this instrument coming into force, to ensure that businesses have all the information they need on how to comply with the new requirements. They are also liaising with the Health and Safety Executive for Northern Ireland, which is responsible for enforcing the Northern Ireland ATEX regulations and ensuring that it has all the necessary information to do so.

In summary, this instrument is needed to ensure that the Windsor framework, with respect to the ATEX directive, is properly implemented in Northern Ireland. It does that by amending the Northern Ireland ATEX regulations to reflect the fact that the UK has left the EU and by introducing provisions on UK(NI) marking. I urge the Committee to approve this SI.

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[Kevin Hollinrake]

I am grateful to the shadow Minister for her important points, and I thank the Committee for its consideration.

On the costs to businesses, the majority of businesses likely to be impacted are SMEs, with micro and small totalling 91% and medium being 8%. Prior UK CA changes were applicable to all businesses, so no business is likely to be impacted more than another.

On the impact assessment, according to the OPSS business population estimates in 2022, 5,445 businesses in the UK were subject to ATEX regulations. As that is an estimate, we provide a 10% upper and lower band, resulting in a high estimate of 5,900 businesses and a low estimate of 4,900. Firms would incur a familiarisation cost in the first year they were made aware of the changes. The cost is around £13,000.

On the points the hon. Lady raised about consultation, where there have been previous, similar instruments in this area, informal consultation did take place with a good cross-section of stakeholders, including trade associations and other industry representative bodies across the product areas covered by the instrument. Stakeholders were supportive of the need to maintain a functioning product safety and metrology regime on EU exit that mirrored the framework in operation the day before EU exit as closely as possible. As the hon. Lady rightly pointed out, an impact assessment has not been prepared for this SI, because measures resulting from the Windsor framework are out of scope of assessment.

To conclude, it is vital for the reasons I am about to summarise that this instrument comes into force in Northern Ireland. It is needed to properly implement the Windsor framework with respect to ATEX products. It achieves its main purpose by amending the Northern Ireland ATEX regulations to reflect the fact that the UK is no longer part of the EU and by introducing provisions on the UK(NI) marking, which will enable UK conformity assessment bodies to assess ATEX products for the Northern Ireland market and ensure conformity. The impact of the changes is likely to be very low for businesses and to be associated with familiarisation with the new UK(NI) marking requirements and the labelling itself. I am happy to commend this instrument to the Committee.

Question put and agreed to.