Protocol on Ireland/Northern Ireland: Impact on UK Internal Market

Lord Dodds of Duncairn Excerpts

Thursday 18th November 2021 Lords Chamber

Asked by

[Lord Dodds of Duncairn]

To ask the Minister of State at the Cabinet Office (Lord Frost) what assessment Her Majesty’s Government have made of the impact of the Protocol on Ireland/Northern Ireland on (1) Northern Ireland’s place in the United Kingdom internal market, and (2) the flow of trade.

[The Minister of State, Cabinet Office (Lord Frost) (Con)]

My Lords, the protocol recalls the importance of maintaining the integral place of Northern Ireland in the UK’s internal market and is clear that Northern Ireland is part of the UK’s customs territory. We are concerned that these provisions are not reflected in the way in which the protocol is being implemented. As a result, there is clear evidence of trade diversion. Trade data shows that trade between Northern Ireland and Ireland has increased significantly in both directions this year.

[Lord Dodds of Duncairn (DUP)]

My Lords, the Minister knows that the protocol is having a major adverse impact on trade flows between Northern Ireland and the rest of the United Kingdom, never mind the massive destabilising effect on the political institutions and the political process in the Northern Ireland. The chairman of Marks & Spencer says the EU proposals threaten to increase the administrative burden on imports to Northern Ireland. They could result in “worsening friction”, he says and, as a result, his firm and others might have to stop sending goods to Northern Ireland.

The head of the Road Haulage Association in Northern Ireland referred to the EU proposals as “window-dressing”. He knows, as we all know, that the EU proposals do not address the fundamental issues of the protocol. Will he now tell the House and tell the people of Northern Ireland when he is going to implement the proposals set out in the Command Paper of July this year to finally restore Northern Ireland’s place in the UK internal market fully, to fully restore Northern Ireland’s place inside the UK customs union, not on paper but in reality, and finally restore full democratic accountability to Northern Ireland as part of the United Kingdom in the 21st century?

[Lord Frost (Con)]

My Lords, the noble Lord sets out serious concerns, which we share. I should like to make our position on these negotiations and Article 16 100% clear, as he asks. Whatever the messages to the contrary that the EU may think it has heard or read, our position has not changed from the one I set out on 10 November or, indeed, in July at the time of the Command Paper. We would prefer to reach a negotiated agreement if we can. That is the best way forward for the stability and prosperity of Northern Ireland but I want to be clear that, as the responsible Minister, I would not recommend any outcome from the negotiations that I did not believe safeguarded political, economic or social stability in Northern Ireland. In such circumstances, we obviously would need to provide the necessary safeguards using Article 16. Those safeguards remain very much on the table and they are a legitimate provision in the protocol. No decision has been taken to exclude a priori any specific timing for Article 16. That will be shaped by whether and how quickly negotiations make progress.