Draft Product Safety and Metrology (Amendment and Transitional Provisions) Regulations 2022

Lloyd Russell-Moyle Excerpts

Wednesday 7th December 2022 General Committees

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

It is a pleasure to serve under your chairship, Mrs Latham. This statutory instrument raises yet more concerns regarding the Government’s post-Brexit preparedness and its cumulative effect on British businesses, given the continually delayed attempts to get product safety and the product safety regime right for the good of consumers across the country. Uncertainty, lack of clarity and no clear plan seem to define the Government’s approach to product safety post Brexit. I do not hold the Minister totally responsible—he is the fourth person in his position since September—but there is a serious point here: uncertainty inevitably incurs costs for businesses and reduces their ability to trade in the UK and across borders.

This is all on the back of a high-tax, low-growth economy after 12 years of Conservative Government failure. Recent research from UK in a Changing Europe has found that implementation of the UK’s new trade agreement with the EU has led to a sudden and persistent 25% fall in UK imports from the EU relative to the rest of the world. Ministers have already delayed the transitional provisions twice before. In August 2021, the implementation date was changed from the start of 2022 to January 2023. In June, the Government announced that they would delay some requirements of the scheme beyond the revised date. For a third time, we have a delay. Throughout all these delays, there is clearly no plan for what is next.

The Government have no choice but to extend these transitional provisions, and the Minister is right: it is in the interests of businesses, who otherwise face increasing costs and burdens throughout the transition. He hit the nail on the head when he said that this may raise questions about timescales, because it does. When there are questions about timescales, businesses have to deal with further uncertainty and there is a cost associated with that. My biggest concern now about the effects of the further delay is what is behind it. There does not seem to be a clear plan for how we move forward, when we will reach an end stage, and what the impact will be for business planning and for the product safety regime in the UK.

The UK’s departure from the EU has meant changes have been made to product regulations. As the Minister outlined, this includes the introduction of the UK conformity assessment marking to replace the EU’s CE marking. The UKCA has been operational in tandem with continued recognition of products meeting EU requirements and markings. As the Minister outlined, on 31 December 2022 these would cease to be recognised in Great Britain under the existing arrangements.

The statutory instrument will extend the transition period. It extends the option for manufacturers to use the EU’s CE marking to show that their products are regulation compliant until December 2024, thereby extending the provisions by two years. It also extends the time for labelling easements for products that comply with EU regulations but not UK regulations. Such products would be able to use UKCA marking until December 2027.

To be in such a position with the UK’s new regime, six years on from Brexit, is quite significant. The Government need urgently to provide clarity for the future. Clarity would minimise the uncertainty that can deter business investment—perhaps in new products, how those new products will be made or the standard those products need to meet. This is all part of how we need to lower the barriers that can impede British exports and slow down manufacturing. We want to see a regime that has the certainty to help develop and see the greater international collaboration that is necessary. It should also uphold clear standards on safety, fair trading and environmental protection, all of which command wide and deep support from the British electorate. Can the Minister shed more light on the Government’s plan and whether there will be further delay?

I would also welcome clarity about how the Minister is talking to businesses, as he referred to conversations with businesses and stakeholders. That point is important not just for these regulations, but for making Brexit work overall to support the necessary growth in the UK economy.

On news that the Government would propose the extension, the British Chambers of Commerce stated:

“BCC research carried out last year found that only 8% of business were in favour of getting rid of the current EU marking system, called CE, by the start of 2023, and 59% of businesses, affected by the decision, wanted to keep it. They see strong benefits in having a single system for testing and marking of industrial and electrical goods for business…Today’s push back is a welcome first step, but much deeper engagement with industry is still needed to devise a plan that works to avoid extra costs for both importing and exporting businesses, and consumers.”

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

The reason we are here, is it not, is that the Government negotiated a defective EU exit deal. We could easily have been included in the CE marking system, as Turkey and others are, and British firms could have been allowed to accredit using the CE mark, which they now cannot. If it is a British-registered marker, they have to use an EU-registered marker if they wish to export. It is the Government’s mess that has caused this and it could have so easily been different. We could have exited and still had all the benefits.

[Seema Malhotra]

I thank my hon. Friend for his remarks. He highlights that the situation that we, businesses and industry find ourselves in is caused not by Brexit but by the choices the Government have subsequently made and how they have made them. I am sure the Minister will think very seriously about how we deal with these self-made barriers.

There are other examples of where the Government have failed—successive Governments, I should say. I have lost track of how many we have had since 2019—

[Lloyd Russell-Moyle]

Or this year.

[Seema Malhotra]

Let alone this year. This is a really significant point. There has been a failure to be clear and decisive, to make decisions and act pragmatically, to not be led by ideology and to look at what will make Brexit work for British businesses and consumers. The SI is symptomatic of a system that is failing.

The Minister will want to respond now that he can direct some of his work as a Minister in the Department for Business, Energy and Industrial Strategy. The Government must look to alleviate those issues and work with businesses much more closely, especially in their talks. It is an issue if the Minister says that he is talking to business and industry, but businesses are going out to the media and saying that deeper engagement with industry is still needed just to devise a plan, let alone to implement it.

Make UK stated in response to the extension:

“Given this is the third time this has been delayed, we need to ask why the Government is still ploughing ahead with the plans which are only adding costs and extra bureaucracy”.

In addition, a membership survey carried out by Make UK in May this year found that three quarters of respondents wanted the UK to continue to recognise CE marked goods. I would be grateful for clarity from the Minister on how we are moving forward and on what timescales. We want to see all our businesses able to manufacture their goods, to export and import them, to serve the British market and to do all that with certainty.

The Minister will know as well as I do that businesses plan ahead. They plan ahead as to what they are producing, and they must design those products. They also have to order materials. There is an even more serious situation in the supply chain, with problems affecting materials for production and so on. A year or two ahead is very much in line with what businesses need to plan. Businesses in my constituency have talked to me about the issue, including one that exports to 70 nations across the world with its fine manufacturing of steel products, and clarification from the Minister would be extremely helpful.

I want to raise a final point about product safety in general. Concerns have been raised by businesses and, in its latest report, the British Toy and Hobby Association conducted sample testing of 40 toys from third-party sellers via the marketplaces of four of the largest online platforms: Amazon, eBay, Wish and AliExpress. Of those 40 toys randomly selected for testing, 100% were illegal to sell in the UK and 90% were found unsafe for a child to play with, after failing independent safety testing against the UK toy safety regulations.

The British Toy and Hobby Association’s successive reports span four years and more than 550 toys, so that indicates an ongoing problem, showing that there is a level of non-compliance and that unsafe toys are being sold by third parties through the online marketplace supply chain. It is unacceptable. In its recent report, the BTHA has said that the current system is not working to prevent unsafe toys entering the UK market. The BTHA is calling on the Government to close that gap through legislative means before a child is seriously injured or killed by an unsafe toy.

The Government said they would publish their product safety review in spring 2022 outlining how they will regulate the safety of products sold via online marketplaces to protect consumers from harm by unsafe toys. The publication of the review has been delayed several times during the year. As well as highlighting the Government’s reckless unpreparedness for Brexit, the SI also highlights yet another moment when the Government should be taking broader action on product safety in this country, but are not. When do the Government plan to publish the product safety review, which was first promised for spring of this year?

The SI is symptomatic of a Government that are failing to make Brexit work for our businesses and the people of this country—a Government who have become complacent on the issue of product safety standards for consumers, including children. I would welcome assurances from the Minister on the issues I have raised, and answers to them. I look forward to a complete response that outlines the Government’s plans to ensure that there is clarity and a timeline for what happens as we go forward.

We have a common interest in these issues, which need to be tackled because, in the current low-growth environment, that situation does not help any of us. Anything that can be done to address the barriers to good, effective, increased and safe trade absolutely need to be addressed, and that leadership has to come from the Government.