(1 month ago)
General Committees
Kate Dearden
I thank right hon. and hon. Members for their consideration of the draft regulations and their contributions to the debate. They raised a significant number of issues that I will pick up on in my response.
First, on our product regulation legislation, since getting into Government we have legislated for the flexibility to ensure that product regulation, now and in future, is tailored to the needs of the UK. There will be some instances where we will take our own approach and some instances where we will want to take a similar approach to the EU. However, we have done that, and will continue to do that, on a case-by-case basis, where it is absolutely in the best interests of UK businesses and consumers and in our national interests.
The arrangements under the Windsor framework are a settled and important part of UK law, agreed by Parliament to protect the UK internal market. We have made the sovereign decision that is right for the whole of the UK to improve safety and modernise in particular machinery legislation, which we are discussing today, to reduce duplicative and costly burdens on businesses and ensure that there is no friction with the UK internal market. As I mentioned in my opening remarks, our approach is supported by the overwhelming majority of stakeholders.
This SI does not implement EU law in Great Britain; it does, however, continue CE recognition in Great Britain so that products that meet the new EU requirements can be placed on the GB market. That is not a new concept, but the continuation of current Government policy and the policy of prior Governments. The UK and the EU are strategic partners, and it is in our mutual interest to maintain trade flows and avoid trade friction, while responding to emerging technologies and maintaining a commitment to product safety and consumer protection. Mutual transparency and regular discussions are an indispensable part of that.
Informed by our engagement with industry, the Government have reviewed the changes introduced by the machinery regulation, and we believe that they are sensible and proportionate and will ensure that safer products are available to consumers and businesses alike. That is why we are continuing CE recognition and seeking to introduce similar measures in GB. As I have said before, we are prepared to align with EU regulation, but we will take a pragmatic, case-by-case approach, doing it where it clearly advances the national interests, supports long-term growth, promotes consumer interests, attracts investment and supports jobs. Where that is not the case, we will take a different approach to deliver the best outcomes for businesses and consumers in the UK.
At the centre of any long-term plans for the alignment between Great Britain and Northern Ireland, we will maintain the integrity of the UK internal market and Northern Ireland’s rightful place within it. My officials engage with the Northern Ireland Government and enforcement authorities on a regular basis to discuss any issues or concerns they might have, and that close relationship will remain ongoing. The right hon. Member for North West Hampshire mentioned Northern Ireland businesses and dual labelling, and I thank him for raising that. The answer is no: they can continue to CE mark only, and UKNI marking is optional if the conformity assessment is in the UK.
The shadow Minister, the hon. Member for West Worcestershire, and a number of Members on the Opposition Benches, mentioned the impact assessment for this SI. As she knows, a de minimis assessment has been prepared for the provisions of this instrument relating to continuing CE recognition in Great Britain. These measures are considered to have a low impact per business from their introduction, and that is additionally the case for the Northern Ireland aspects of this instrument. The measures resulting from the European Union (Withdrawal) Act 2018 are out of scope of the assessment. The Windsor framework is already given effect in legislation through the European Union (Withdrawal Agreement Act) 2020, which adds provisions and powers to the 2018 Act.
I am finding it hard to understand how the Minister can claim that there will be no impact on businesses in Northern Ireland. To give a practical example, many production lines nowadays have built-in AI safety monitoring systems. At the moment, companies in manufacturing have to certify that AI against a national standard, and they can self-certify. As I understand it, the EU regulations around AI and cyber-security would mean moving to a notified body certification system. If I had a production line, I would have to go out and find a recognised body to come in and independently certify the software behind the safety system in my manufacturing line as compliant. That has to be an extra cost—how can going from self-certification to external certification by an outside body not have a significant impact? As far as I can see, these regulations are riddled with those kinds of changes, which must impose a significant cumulative burden.
Kate Dearden
The right hon. Gentleman rightly raises AI and cyber-security as part of our considerations. That is why it is so important that we keep up to date with technological developments and the impact on machinery. The EU’s machinery regulations, as he says, include provisions on software and AI to ensure that those new technologies do not affect the safe functioning of machinery. We are also working with the EU to ensure that the changes in Northern Ireland are compatible with wider product safety and regulatory reforms, including cross-cutting legislation on AI and cyber-security.
Overall, we expect the instrument to benefit Northern Ireland. We have extensively engaged with stakeholders in Northern Ireland, and SMEs in particular have indicated that it significantly helps in terms of resources—that is from our direct engagement with those businesses and the feedback we have received. It is a key consideration for businesses that they will be able to continue to benefit from dual access to both EU and UK markets. As we work towards introducing similar measures in Great Britain, continuing CE recognition and ensuring that the same machinery products can be placed on the market across the whole of the UK without unnecessary duplication of testing and administrative process will be absolutely vital.
The shadow Minister asked about the numbers of businesses involved. We estimate that around 230 businesses in Northern Ireland and 5,380 in Great Britain are in scope of the machinery legislation. She also referenced the £16.6 million of funding that I mentioned in my opening remarks. Funding was allocated in the Budget to deliver an enhanced “one-stop shop” advice service for small businesses beyond what is available on gov.uk, along with the new funding for Intertrade UK, and that commitment will be delivered in the course of the next financial year. The project has moved into a phase of more active engagement, with robust interest from stakeholders. Formal co-design workshops are ongoing to refine the service specification and ensure that the delivery model meets business needs.
I have briefly touched on the implementation of similar measures in Great Britain. My officials have already begun actively developing a further SI to modernise GB machinery regulation, which will ensure that the UK framework remains proportionate and aligned with the technological developments raised numerous times throughout this debate. Announcements about implementing similar measures have already been made, to provide businesses with the certainty that the shadow Minister also asked about.
The right hon. Member for North West Hampshire referenced enforcement and parliamentary scrutiny. The day-to-day enforcement of product safety legislation is largely local. For machinery in Northern Ireland, it would generally be undertaken by the Health and Safety Executive for Northern Ireland or by district councils, for workplace and consumer products respectively. However, the Secretary of State has enforcement powers under legislation, as the Office for Product Safety and Standards has an active enforcement role on behalf of the Secretary of State, particularly where issues are nationally significant, complex, novel, high risk or large scale. For example, the OPSS can intervene where a product risk affects consumers nationally or where co-ordinated enforcement action is needed across multiple agencies. I hope the right hon. Gentleman understands that enforcement will remain as it is under the current regime and that nothing will change; I hope that reassures him and answers his question.
When it comes to parliamentary scrutiny of CE recognition under the Product Regulation and Metrology Act 2025, we have consulted with stakeholders, and Northern Ireland provisions are done as part of the Windsor framework, which I touched on right at the start of my remarks. As the right hon. Gentleman knows, the parliamentary process uses the affirmative procedure.
To conclude, we are using the PRAM Act powers, as I have mentioned, for CE recognition, which requires consultation with stakeholders. UKNI marking will only be used by a UK notified body; otherwise, it will be a CE mark only. We have heard that from businesses in Northern Ireland through that stakeholder engagement, and that is what they have told us.
As explained previously, this draft instrument ensures the effective enforcement of the EU machinery regulation in Northern Ireland. It maintains access to the GB market for compliant products and supports high safety standards while minimising unnecessary burdens on business. This draft instrument also ensures our compliance with international law in relation to Northern Ireland’s continuing dual access. I am pleased to commend this draft instrument to the Committee.