Definition of Qualifying Northern Ireland Goods (EU Exit) Regulations 2020

Lord Dodds of Duncairn Excerpts

Monday 30th November 2020 Grand Committee

[Lord Dodds of Duncairn (DUP)]

My Lords, as the Minister said in his opening remarks, this regulation is designed to guarantee unfettered access for Northern Ireland goods into Great Britain. I welcome what Her Majesty’s Government have said about guaranteeing those commitments in legislation. As the Minister pointed out, it is in the New Decade, New Approach document, which was agreed by all the parties in Northern Ireland; they all signed up to that document. It was also in the December 2017 joint European Union- United Kingdom document, which at paragraph 50 said:

“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 paragraph was inserted after my party negotiated with Theresa May during that fateful week. We were always conscious of the need to ensure that protection was in place.

It is always a delight to follow the noble Lord, Lord Hain. He knows a lot about Northern Ireland, and he talked about a dog’s breakfast. Part of the problem that we are facing with Northern Ireland goods and trade with the rest of the United Kingdom is because some people prioritised trade with the Irish Republic and European Union above the biggest market of Great Britain. By far and away the biggest market for Northern Ireland is trade from Great Britain to Northern Ireland and from Northern Ireland to Great Britain. At the time when we were pointing out all those problems over the past couple of years, people did not seem to regard those issues; instead, they talked about all sorts of invented issues about problems north-south, when Simon Coveney, the Foreign Minister, Michel Barnier, and everyone else, including all the parties in Northern Ireland, guaranteed that there would never be any checks on trade north-south, in any circumstances. That is something that the Foreign Minister of the Irish Republic said just the other day.

I will bring the Minister on to a couple of questions that I have about this approach. As he said, this is phase 1 of the issue of how we grapple with defining what is a Northern Ireland good for the purposes of unfettered access. When exactly will we have the longer-term definition? We were told that it would be at some point during the course of 2021, but can the Minister be more precise about that? Can he also undertake that these issues will be sorted out for Northern Ireland at the same time as they are for general UK-EU trade? There is that aspect to it as well—the movement of goods between the European Union and the rest of the United Kingdom. Our view must be that it should all be done at the one time.

On the current or phase 1 definition, under these regulations, how will the Government ensure that Northern Ireland products move through ports in the Irish Republic to Great Britain? Some 20% of our trade with Great Britain goes through the Irish Republic. That needs to be clarified. The agri-food sector has been mentioned, and it is a very important part of our economy. There is concern among producers in Northern Ireland in that sector that this very wide definition, albeit temporary, could lead to goods from the Republic of Ireland being moved through Northern Ireland to Great Britain, which would potentially create great problems in terms of reputational damage for the Northern Ireland agri-food industry.

That brings us on to the issue of anti-avoidance measures, which the Minister mentioned and which are very important. We are told that they will be produced, I think he said, “in due course”. However, we are now almost at the end of 2020. The new definition for unfettered access for qualifying goods comes in on 1 January and we have yet to see the anti-avoidance measures. We were promised that this would be in place before the end of December. We need to see those very soon so that we can examine them and ensure that only Northern Ireland goods benefit from unfettered access. As has been said, it would be entirely wrong if, along with the other disadvantages that Northern Ireland may now face as a result of the protocol, this advantage of unfettered access was extended to competitors in the Irish Republic or elsewhere in the European Union, who would be only too willing to take advantage. The anti-avoidance measures must be effective, they must work, and the Government must ensure that proper enforcement measures are in place. I would like to know what mechanisms HMRC will have in place to find out who is trying to benefit and what steps and powers it will have.

Clear guidance then needs to be given to Northern Ireland businesses so that they are clear about what products qualify and there is no ambiguity. There needs to be clear messaging to producers in the rest of the United Kingdom about the right of unfettered access for goods coming from Northern Ireland. I have already heard of competitors of businesses in Northern Ireland, in the agri-food sector in particular, lobbying people in Great Britain to warn them off Northern Ireland produce, saying, “This could be contaminated with produce coming from outside and it may not be lawful”. There needs to be clear guidance from the Government in Great Britain on this as well. Clear guidance also needs to be given to Irish businesses to the effect that if there is an attempt to use Northern Ireland as some kind of back-door mechanism to the Great Britain market, that will lead to severe consequences and action will be taken, as opposed to one line in the Finance Act setting out how that is unlawful but without any means of enforcing it.

The idea behind these regulations is welcome in principle, but there are questions that need to be answered about goods going through Irish Republic ports that will also benefit from unfettered access, and questions about the anti-avoidance measures. We are now very late in the day in seeing them, and I would welcome more detail being spelled out on when they will come and how effective they will be at policing these regulations.