Prohibition on Quantitative Restrictions (EU Exit) Regulations 2020

Lord Bassam of Brighton Excerpts

Tuesday 8th December 2020 Grand Committee

[Lord Bassam of Brighton (Lab) [V]]

My Lords, I ought to make it clear from the outset that we do not oppose the statutory instrument because we recognise that it is a natural consequence of leaving the EU at the end of the transition period. The instrument was debated some two weeks ago in the House of Commons, when the shadow Minister said that businesses were being left “completely blind” about how to prepare for the end of the transition and that:

“We are no further down the road with a deal, and they have no idea of the terms under which they are going to be trading in a few weeks’ time.”—[Official Report, Commons, 24/11/20; col. 735.]


Two of those weeks have now passed, yet what is so worrying is that those words still bear repeating. Perhaps with the exception of the Northern Ireland protocol issue, which appears to have been resolved today, we are still very much in the dark about what comes next.

The issue with this instrument, as with so much that we in both Houses are being asked to consider, is that it leaves as many questions as answers, as we still do not know what will replace the aspects of the current EU framework that we are disapplying. The Government’s argument for getting these instruments on to the statute book without certainty as to what will replace them appears to be that time is running out to pass all the necessary legislation before the end of the transition. We of course appreciate those circumstances, but do the Government not understand that the same pressures apply to businesses in every corner of the country? They also need time to prepare before the Christmas period arrives. This intense uncertainty comes after a year of hardship, closure and uncertainty due to the Covid panic. It is up to the Government not to continue to add to that burden.

I am grateful to the Minister for his explanation, but the statutory instrument will end the application in England, Wales and Scotland of the rights derived from Articles 34 to 36 of the Treaty on the Functioning of the European Union. The removal of these provisions is to ensure that there is no barrier to divergence from EU rules should the Government choose to diverge from them. What update can the Minister give us on what rights and protections will be in place for EU-UK trade before the end of the transition period? When will businesses have those details?

The statutory instrument does not in itself create divergence, but it is part of paving the way for it. Is the Minister therefore able to update the Committee on where he believes we might seek to diverge from the EU’s standards and requirements? What work is being done to ensure that any divergence is beneficial to British and Northern Irish businesses, and does not create new costs and barriers to trade?

What is crucial is that this issue relates not just to UK-EU trade but to the requirements for a new framework for UK-wide trade, because current treaty provisions also govern trade in goods across the UK. We have shown our commitment, not only on the Labour Benches but across the whole House, on the United Kingdom Internal Market Bill to ensuring that there is a strong internal market for the UK, working with the devolved Administrations through common frameworks on a statutory footing. However, yesterday the Government saw fit to overturn all the amendments to strengthen the role of the devolved Administrations that this House sent back to the Commons. In our way of thinking, that does not show a Government who are working to respect the devolved settlements and build a strong internal market for the future.

The noble Baroness, Lady Ritchie, as ever, asked a number of important questions on Northern Ireland. This SI implicates goods moving between Northern Ireland and Great Britain. We support unfettered access for Northern Ireland businesses to the rest of the UK market. However, the Minister knows that there are concerns over the temporary definition of qualifying goods. Is he in a position to give us any further update on this issue?

Finally, we should always remind ourselves that at the last election the voters were promised an oven-ready deal with

“no tariffs, fees, charges or quantitative restrictions across all sectors”,

and protections for the environment, our workers’ rights, our customers’ rights and our security. However, we are a matter of days away and people in every region of the UK are still waiting to know how their livelihoods will be affected. I particularly want to mention the Government’s so-called levelling-up agenda. If the Government do not get this deal right, it will be the sectors and areas of the UK that can least afford it that will bear the brunt of that fallout.

This statutory instrument might look like a narrow change, but it raises many vital questions about what comes next. I look forward to the Minister’s reply.