Product Regulation and Metrology Bill [HL]
Lord Fox Excerpts(4 days, 8 hours ago)
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Lord Fox (LD)
My Lords, I join the cavalcade of congratulations to the noble Lord, Lord Sharpe, on his new role. We on these Benches look forward to working constructively with him; having witnessed what he did on at least one other Bill when I was opposite him, there is lots of room for us to build on that and work with him.
This is a Grand Committee but I will try to avoid grandstanding. I just want to lay out a modus operandi, if you like, from these Benches for how we shall take this Committee stage. Like the noble Baroness, Lady Crawley, and others, we do not need convincing that this legislation is necessary. That is the starting point. We believe that this is an important Bill but we are disappointed—as I am sure the Committee has already heard and will hear again—about the choice of such skeletal, paving legislation to deliver it.
Like the relevant committees of your Lordships’ House, we believe that the balance leans toward the secondary legislation route far more than it should. I will not use the same socio-religious language that the noble Earl, Lord Lytton, just used; I will use guard- rails rather than commandments. There need to be guard-rails in this legislation. There are other issues around alignment, which will come up mostly in the fourth group of amendments, but the bulk of our discussions will be on guard-rails—that is, what guidance should be in the legislation so that, when secondary legislation comes, it has some sense of purpose around what we are seeking to achieve. That will be our approach.
I shall now speak to Amendments 113 and 133; I thank the noble Lords, Lord Sharpe and Lord Anderson, for their support. I should say that, in a debate on a different Bill, the noble Lord, Lord Anderson, described me as a nuisance. Now, he has described me as a softie. I am not sure that I shall welcome his support in future, but the point is that we are trying to find a middle way. In a sense, I agree with some of what the noble Lords, Lord Frost and Lord Anderson, said: we are somewhere in the middle with the amendment, so perhaps we are finding the right place for it.
As we have heard, the Delegated Powers and Regulatory Reform Committee was very clear about this Bill; I have chosen different quotes from everybody else, thank heavens. The committee said:
“We recognise the need for this Bill to delegate some legislative powers”.
So do we. It continued:
“However … skeleton legislation should only be used in the most exceptional circumstances and where no other approach would be reasonable to adopt. This is because … it ‘signifies an exceptional shift in power from Parliament to the executive and entails the Government, in effect, asking Parliament to pass primary legislation which is so insubstantial that it leaves the real operation of the legislation to be decided by Ministers’”.
That is the guard-rail I was talking about.
We had this debate so many times in the previous Parliament. In a sense, it is disappointing that we are having it again. The DPRRC said that
“the Bill provides for almost all of the substance of product regulation and metrology to be provided for by Ministers in regulations under the new powers, and little or nothing to be settled under the fuller Parliamentary scrutiny given to Bill provisions”.
The DPRRC said that it remained concerned, and we have heard about those concerns, that
“so little of the policy is included in this skeleton Bill and so much is instead left to delegated legislation which will be subject to a much lower level of Parliamentary scrutiny”.
We know that, and have debated it many times. In some cases, some might say that it gets almost no real, meaningful parliamentary scrutiny, as long as statutory instruments cannot be amended. As the committee said:
“Parliament will be unable to amend that delegated legislation and the only options available to both Houses will be to accept it or reject it”.
We know that rejection, essentially, never happens.
We have also heard that the scope of these powers is not constrained by any requirements for consultation, for criteria to be met or for meaningful preconditions to be satisfied. That is why I am proposing Amendment 133, with the noble Lords’ support. I will say a little more about that shortly.
Lord Jackson of Peterborough (Con)
Is the noble Lord aware of the letter dated 28 October from the Minister, Justin Madders, of the other place, to the noble Lord, Lord McLoughlin, the chairman of the DPRRC, on these specific issues? It says:
“We recognise the Committee’s concerns that the powers in the Bill to amend or repeal primary legislation may appear as though we are intending to replace existing primary legislation with secondary legislation and accept that we should have given more provenance to the fact that our intentions are limited and specific and the powers in the Bill are limited accordingly”.
Does the noble Lord not think it unprecedented for a Minister to write about a Bill that is before this House?
Lord Fox (LD)
I am not a student of parliamentary history, so I do not know if it is an unprecedented letter, but that was a helpful intervention, and I thank the noble Lord for that.
Baroness Crawley (Lab)
I believe that the sentence that was just read out was in the report from the Government to the Delegated Powers Committee as well. It is not unprecedented is what I am saying.
Lord Fox (LD)
My Lords, I feel that I am standing in the middle of a perfectly good debate between the noble Baroness and the noble Lord. Perhaps we can reconcile it in some other way.
Lord Fox (LD)
If they find themselves in the same Division Lobby, but that is rather unlikely.
For this reason—the reason that I spoke of some time ago—I am proposing Amendment 113, which seeks to remove Clause 9(4) from the Bill. In the view of the committee and of your Lordships, this is the main offending clause, as it essentially grants Ministers unlimited powers. That is why we are proposing that amendment.
Amendment 133 harks back to an amendment for which many of the Minister’s colleagues and of those on these Benches voted during the passage of the Retained EU Law (Revocation and Reform) Bill, as it is very similar to an amendment that was tabled then. It is relatively self-explanatory, and it was explained even better by the noble Lord, Lord Anderson. I suggest that it imports some sensible consultation into the secondary legislation process without overburdening that process.
That may be the Minister’s response. He may say that this is bureaucratic and a lengthy process, to which I would say, to some extent, “So what?” This legislation does not have to be a breathless process; it is supposed to get it right. Many of your Lordships will have witnessed statutory instruments that come back to correct previous statutory instruments. I know of one case when we got into three or possibly four statutory instruments before we were presented with something that was acceptable. A bit of time, consultation and reflection gives us a chance to make regulation that is better and achieves what is intended.
I do not think this is an overwhelming process; it is about careful, purposeful regulation and proper consultation during that process. To an extent, that goes some way to dealing with some of the issues in the amendments tabled by the noble Baroness, Lady Lawlor—who has now made it from her transport system to her place—in fact in a rather more inclusive way, covering large portions of the Bill.
I will speak briefly to Amendment 132, also in my name, which I do not believe is controversial. Again, it continues the theme of the retained EU law Bill. As memory serves, one of the last things your Lordships did when sending that Bill back in the previous Parliament was to add a reporting requirement, so I suspect that there may not be much argument on either side of this against having a window on what is going on in the regulatory process. Indeed, it should provide a platform for us to have a discussion on a regular basis about the effectiveness and necessity of regulation, which I am sure many noble Lords would welcome.
My noble friend Lord Foster will not speak but has deputed me to speak on his behalf, which is a great honour and responsibility. He also signed Amendment 126 in the name of the noble Baroness, Lady Crawley. Amendment 129 in the name of my noble friend would ensure that an amendment that he will bring to the Committee later would be subject to the affirmative procedure. Like me, I think my noble friend would like to say that we do not think that the affirmative procedure is an adequate scrutiny measure, but it is marginally better than nothing.
Amendment 33 in the name of the noble Lord, Lord Jackson, makes an interesting point. I would like to hear from the Minister about who and what they are seeking to address in Clause 2(3)(h), because it is very broad. What level of specificity should we expect, or is there none?
To close, there are substantive amendments in this group, and I suggest that Amendments 113 and 133 are two that should find their way forward with the Government’s help.
Lord Lucas (Con)
My Lords, we have been here before. When the Schools Bill was in front of us, I was very happily lined up next to Lord Judge in saying that this would not do, and I find myself in the same position today. We have a job to do in the House of Lords; it is the proper scrutiny of legislation. This Bill seeks to avoid that. Either the Bill needs to wait and rewrite itself in rather more detail when the Government know what they want to do, or we need some such provision as has been suggested by the noble Lord, Lord Anderson and others to allow us a proper view of what will actually happen under this legislation. I very much hope that the Government will rethink, in one direction or the other.
Lord Fox (LD)
I think the Minister is trying to have it both ways. On the one hand, this committee is so long-winded that important and breathless regulation could not be made and, on the other hand, the regulations will be so small and insignificant that this committee does not need to observe them. It is either one thing or the other—and if there are emergency regulations, I am sure that we can put in place a process to necessarily short circuit and get that before your Lordships’ House quickly. So, the idea that somehow this would hold up vital regulation that that the country is waiting for overnight is something of an overstatement of the process of regulatory development.
Lord Leong (Lab)
I said earlier that we will look at this on a case-by-case basis. Some regulations will relate to very minor technical changes, so it really would be taking up too much parliamentary time for that, whereas other regulations may need a full scrutiny, and we will have avenues for that.
On the amendments from the noble Baroness, Lady Lawlor, although parliamentary oversight is crucial, requiring the sunsetting and renewal of regulations under Clause 1 would create legislative gaps and undermine regulatory certainty. This is particularly for essential product regulations that protect consumers or for products where their design, production and installation may take over a year. Ensuring consumer safety is a constant, ongoing concern. We also have to ensure that businesses have certainty. Having a sunset clause will not give certainty to businesses.
As I have explained, these are also highly technical regulations, covering matters as detailed as the formulae for measuring outdoor noise, for example, and I am not sure it would be a good use of parliamentary time to re-examine such specific matters on an annual basis.
Similarly, Amendments 40, 41, and 131 from the noble Baroness, Lady Lawlor, ensure that regulations incorporating EU law will be subject to parliamentary debate, with consideration of constitutional impacts. As Members of the House will be aware, a duty to assess the impacts of any new legislation on trade between Northern Ireland and Great Britain already exists, and the responsible Minister must make a statement considering any impacts on trade between Northern Ireland and the UK internal market. To provide additional assurances, it is considered that the powers set out in Clause 5(2) provide a proportionate and appropriate parliamentary scrutiny process, where the regulations will often be highly technical and routine in nature.
Noble Lords, including those on the DPRRC, have questioned the Government’s intentions as regards consultation on changes made under the Bill’s powers. Amendment 126, tabled by my noble friend Lady Crawley, for example, proposes to establish a duty for the Secretary of State to publish regulations in draft form, and consult such persons as the Secretary of State considers appropriate.
I fully appreciate the importance of consultation and industry engagement. My department and the Department for Business and Trade have excellent relationships with industry and consumer groups and will continue to engage regularly with any stakeholders before changes are introduced. Indeed, we currently have two calls for evidence in circulation seeking stakeholder input, one on the introduction across the UK of a common charger for all our mobile phones and other portable electrical and electronic devices, and the other on measuring noise from outdoor equipment.
We have not included a statutory consultation requirement to allow for proportionate engagement with industry and consumer groups depending on the significance of the changes. This ensures agility in responding to emerging risks or market developments to protect UK consumers, as mentioned by the noble Earl, Lord Lytton. But I give a firm commitment to noble Lords that the Secretary of State will engage and consult with relevant stakeholders before legislating.
Amendment 33, in the name of the noble Lord, Lord Jackson, and mentioned by the noble Lord, Lord Fox, refers to supply chains involved in products and the extent we need to regulate them. This can be complex, and it is important that we get it right.
Clause 2(3) sets out examples of the persons on whom product regulations may be imposed. However, this is not always clear. Depending on the nature of the product or its supply chain, product regulations may need to cover a whole variety of other actors involved in a product journey. For example, our regulations on the safety of lifts need to cover the people involved in their installation as well as their manufacture, and regulations on recreational craft cover private importers in addition to the usual supply chain actors.
We also need to ensure that rapidly changing business models cannot be exploited, allowing bad actors to exploit good business by defining themselves out of regulation. For this reason, Clause 2(3) is an inclusive list, not an exhaustive list, of persons on whom regulations can be imposed. Clause 2(3)(h) further clarifies that regulations can apply to anyone carrying out activities in relation to a product.
Lord Fox (LD)
My Lords, I beg your Lordships’ leave, and I apologise to the noble Lord, Lord Jackson, for taking over his amendment here, but the wording of Clause 2(3)(h) is
“any other person carrying out activities”.
All the other items refer to the activity of the sale and marketing of that product. This does not refer to it but any person carrying out activities unspecified. For example, if I were repairing a product, would I be in the scope of the Bill? I could be, but I do not think that that is the purpose of the Bill. There needs to be some modification of that language—I think the noble Lord, Lord Jackson, is shrewd in putting that up—which focuses on the development and marketing of the product. Otherwise, it is any person doing anything to it.
Lord Leong (Lab)
I thank the noble Lord for that point. As I see it, it is the whole manufacturing of the product itself. For example, 3D printers are getting cheaper and cheaper on the market, and anyone can make anything from a 3D printer. So we need a regulation that covers someone who sells the printer, someone who supplies the plastic that goes into the printer and whoever makes that. Unless the noble Lord is mistaken, perhaps I and officials could have a private conversation with him and the noble Lord, Lord Jackson.
Lord Leong (Lab)
To conclude, I hope that I have been able to provide assurances on all these matters and I assure noble Lords that the Government have carefully considered—
Member’s explanatory statement
The Amendment ensures that regulations relating to the marketing of use of products in the UK may have the purpose of ensuring that products are safe.
Lord Fox (LD)
My Lords, Amendment 3 is part of group 3, which focuses on the safety of marketed products; we are focusing now on safety. In a sense, the debate on the previous group of amendments demonstrated why the skeletal nature of the Bill needs flushing out. Alongside the amendments tabled by the noble Lord, Lord Sharpe, and my noble friend Lord Foster, I hope we can investigate a little how we can flesh out the Bill on the subjects of health, safety and the environment.
Both Amendment 3 and Amendment 95, which is also in my name, seek to add some purpose to the Bill so that future regulations will be within the guard-rails we talked about earlier. Amendment 3 would simply insert safety as an objective for achievement for the regulations caused by the Bill. There are two purposes to this amendment: one is to try to ensure that, in future, the products regulated are safe, and the other is to allow the Minister to explain how reducing or mitigating risk works in the context of product safety. It seems to me that there is a glaring difference between the two, and I look forward to the Minister explaining how this legislation came to be written in this way.
Clause 1(4) goes on to define risk with language that implores the concept of safety, which is of course helpful. However, under the terms of Clause 1 as currently drafted, any danger to the health or safety of a person—or a domestic animal; the Minister knows that I am keen to know which animals are domestic and which are not, and why non-domestic animals should be subject to danger when domestic animals are not—needs only to be reduced, because Clause 1(1) comes before Clause 1(4). Surely the objective should be to eliminate risk.
If I was selling a trapeze kit for a seven year-old that was 30 feet from the ground, I could of course say that I had reduced the risk by including a mattress to put underneath it, but is this safe, and has sufficient mitigation been observed? I understand that there is no such thing as absolute safety. However, I contend that, if the purpose of the Bill is, first and foremost, risk reduction or mitigation rather than safety, it is pitching the objective of regulations too low. I hope that is an understandable albeit rather complex explanation as to why I am moving this amendment.
Amendment 95 also focuses on safety. It simply spells out some considerations for future regulations made under the Act—namely, that they
“must have regard for consumer safety and wellbeing, and environmental sustainability”.
How could anybody object to those aspirations? Looking forward, we could leave it there and deal with the second part of this amendment in a different way. We will certainly come back to some of this in other groups but, at this point, I chose to add the specific issue of the disposal of chemicals and lithium-ion products because disposal is an important part of—
The Deputy Chairman of Committees (Lord Faulkner of Worcester) (Lab)
My Lords, the noble Lord, Lord Fox, was in full flow. He may resume on Amendment 3.
Lord Fox (LD)
My Lords, I was not in full flight; I was merely jogging along the runway.
I have talked to Amendment 3 already. Amendment 95 also focuses on safety, and simply spells out some considerations for future regulations to be made under the Act—namely, that they must have regard for consumer safety and well-being, and environmental sustainability. As I said before, how could anybody disagree with that comforting thought?
Looking forward, we could leave it there and deal with the second part of the amendment in a different way, but I chose to add some specific points around the disposal of chemicals and of lithium-ion products. Given that this is Committee, I want to probe the Minister on how he regards the issue of disposal within the context of the Bill, which is why I included those parts. In a sense, there are two ways of looking at Amendment 95. One is the writing in of an undertaking that consumer safety, well-being and environmental sustainability will be a key part of future regulation. The other is to understand a little more how the Government regard disposal. There will be other times when bits of this are debated, but I am clear in my mind that we must consider the end of life of products that this Bill will eventually regulate. The hardest part of that is what happens to chemicals and batteries.
I hope the Minister will agree, but I fear he may suggest that this should be managed through regulation that we have not yet seen. It would be helpful at least to understand how the Government would go about these things. Regulation is where details lie. I come back to the idea that we need guard-rails to indicate how regulation will be developed and otherwise. That is what we would expect in primary legislation. The principles, in this case for the safety of marketed products, should be set out in primary legislation. I beg to move.
The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)
My Lords, it is a pleasure to respond to this particularly interesting debate. I, too, welcome the noble Lord, Lord Sharpe, to his new position. I must say, the noble Lords, Lord Sharpe and Lord Sandhurst, seem to have undergone a conversion, certainly since the former’s time in the Department for Business. I have not been able yet to count the number of regulations in primary legislation that the noble Lord took through but, given that he was a Home Office Minister and given the Home Office’s—how shall I put it?—productive record in producing legislation in Parliament, I hasten to suggest that it was quite a few.
Clearly, behind that is an important consideration about the shape of the Bill and why we need a regulation-making power. On the other hand, the Government would say to noble Lords that the intention is to use those regulations proportionately on the back of the policy consultation that has just taken place. We see here, in a sense, a tension between those noble Lords who wish to make sure that the legislation covers areas of concern—we have heard about the areas of concern for the noble Lords, Lord Foster and Lord Fox—and those noble Lords who feel that the regulation, or the power given here to Ministers through regulation, goes too wide. Clearly, a balance needs to be drawn.
Lord Fox (LD)
There is no dichotomy. We do think that the powers are too wide but part of what we want to do is channel those powers by making the sort of suggestions to which the Minister just referred.
Lord Hunt of Kings Heath (Lab)
I was hoping to assure the noble Lord that the way the Bill is constructed should give him comfort in relation both to the issues he has raised around safety and to the comments of the noble Lord, Lord Foster. Clearly, we think that consumer safety is very important. It is central to the Bill and a key component of our product regulation.
The Bill as drafted seeks to uphold a high standard of consumer protection and guarantees that the risks associated with products are minimised; Clause 118 provides for this. Although some products have risks that may be reduced through improvements to the design or clear warnings, others may be so dangerous that they should never be allowed to be sold in the first place. Baby self-feeding pillows are an example of this. They were recalled by the Office for Product Safety & Standards in 2022 due to the fact that the risks they presented could not be mitigated.
The noble Lord, Lord Fox, referred to Clause 1(1)(a), which refers to “reducing or mitigating risks”. We believe that that wording puts safety at the heart of the Bill while permitting regulations to acknowledge the wider spectrum of risk. This concept of a wider spectrum of risk covers the point that the noble Lord was trying to make.
That really is the same response as the one to Amendment 10, in the name of the noble Lord, Lord Sharpe, to which the noble Lord, Lord Sandhurst, referred—essentially, how the Bill explains the term “risk”. My noble friend Lord Leong explained how the Bill puts product safety, and reducing the risks associated with it, at its heart. That includes risks to the health and safety of persons, and Clause 10 makes it clear that “health” can refer to the physical or mental health of a person.
I understand what the noble Lord, Lord Sandhurst, was saying. He was concerned about the wide scope of the Bill, particularly Clause 1(4). However, in a sense, we have to capture in the Bill a definition wide enough to allow us to deal with some of the circumstances that noble Lords have raised. The aim is to be comprehensive but also proportionate. The noble Lord said that the Minister could just do this willy-nilly, but the fact is that regulations have to go through Parliament. He knows that in your Lordships’ House, one Member, even on a statutory instrument under the negative procedure, can ensure that a debate takes place. To come back to the words he used, at the very least for Ministers that can be a challenging and extensive process. A regulation will not be produced without full consultation as well. I would therefore argue that this is not an overweening power of the Executive; it is a sensible balance whereby we try to set out a broad enough definition to cover the kind of risks that noble Lords are concerned about. However, because it has to go through a parliamentary process and a consultation process before that, there are sufficient safeguards to ensure that any future Government or Ministers are not overriding in the way that the noble Lord suggested.
Clause 1(4) also ensures that damage to property is also included within the meaning of risk, meaning that regulations made under the Bill can be made for the purposes of mitigating risks to property, including the operability of other products. I can say to the noble Lord, Lord Fox, therefore, that the Bill captures the spectrum of risks that products may present to the health and safety of people and their property.
I also emphasise that not every element of our product safety framework is focused entirely on safety in the traditional sense. Our current regulatory framework covers a wide range of topics. This includes the use of radio spectrum, the ergonomics of protective gear and noise emissions from some outdoor machinery, such as concrete breakers and lawn-mowers. A number of our existing regulations, such as those covering fireworks and pressure equipment, also cover risks to domestic animals. By the way, I point out to the noble Lord, Lord Fox, that that is why domestic animals are mentioned in the clause; it is also for this reason that we cover the interoperability of products and their susceptibility to electromagnetic disturbance, along with the risks to domestic animals, as I said.
Amendment 7, in the name of the noble Lord, Lord Foster, would create in the Bill a category of high-risk products where regulations can apply across the board. He worries that the Bill is too discretionary. I understand where he is coming from.
Lord Fox (LD)
My Lords, as a fox, I take the subject of wild animals somewhat to heart. To some extent the Minister has covered my concerns, particularly around disposal, which is important, so I beg leave to withdraw Amendment 3.
Baroness Bennett of Manor Castle (GP)
My Lords, with the explicit kind invitation of the noble Lord, Lord Russell, I rise to provide an environmental perspective and broadly support Amendments 17 and 127. Since it is the first time I have spoken in Committee, I welcome the noble Lord, Lord Sharpe, to his new role. Given the range of subjects I cover, we have discussed many things before and we will have new subjects to cover. I also apologise to the Minister: I was aware of the long time that he devoted to consultation; like the noble Baroness, Lady Lawlor, however, transport interfered with my attendance. There is a lot of it around, I am afraid.
I will comment broadly on the amendments introduced by the noble Lord, Lord Frost, and others on this side of the Committee. I am not in favour of all those amendments. I suspect it will not surprise many people to hear that but I suggest respectfully to the noble Lord that he might be picking the wrong battlefield when it comes to tethered bottle tops. I am not sure that being the noble Lord in favour of litter is something that he would like to adopt, given that if you look, for example, at a marine conservation study from 2023, bottle tops were the third most littered item found on beaches. Indeed, the NGO Seas At Risk found it was the third most common plastic item in the seas, causing damage to wildlife. So I suggest a small, practical and sensible measure. If the noble Lord is finding it difficult to manage these new bottle tops, there is a TikToker whose handle is @andreilifehack. He has 8 million followers and a neat little trick of how to manage a tethered bottle top. I should be happy to share that link with the noble Lord.
Like the noble Lord, Lord Russell, I am going to take a moderate, practical approach to this. Picking up the point he made about the advantages to businesses, we particularly look at small and medium enterprises in the UK, which have suffered enormously and lost a huge amount of trade following Brexit. Regulatory confusion and uncertainty does not help them, whereas larger businesses may be able to cope. The certainty that his amendment could help to provide would be useful to those small and medium-sized enterprises.
Picking up on environmental health and, indeed, more broadly, the one-health aspect of this and being pragmatic—the noble Lord, Lord Browne of Ladyton, focused on chemical regulation and as the noble Lord, Lord Fox, has amendments on that later in the Bill, I am not going to get into the detail of that now—harmful chemicals and industrial processes are damaging public health in the UK. We have huge problems. The noble Lord, Lord Browne, referred to the state of our rivers, then there is air pollution and the contamination levels in our food. All these things have big impacts on public as well as environmental health. Again being pragmatic and thinking about the fact that both the two largest parties in your Lordships’ House often reflect on the number of people who are not in employment because of ill health and who are not contributing to the economy as a result, taking steps to improve public health, and environmental health as part of that, is an extremely pragmatic step. As the noble Lord, Lord Browne, said, we are trailing significantly behind the EU in important areas of that.
I said I would be brief, so I will stop there because I have more to say on these areas in the next group.
Lord Fox (LD)
As noble Lords can probably imagine, I have been looking forward to this group for ages, and I thank noble Lords for not disappointing. I put my name to Amendments 17 and 127 in the name of the noble Lord, Lord Russell, and tabled my own Amendment 94. I think the valedictory remarks made by the noble Lord, Lord Browne, about leaving this Bill may have been premature because Amendment 16, which is group 9, explicitly deals with the REACH issue, which I know he is so passionate about. I would like him to join me in probing the REACH elements of this, so I hope he can put off his exit from the Bill.
The Prime Minister, the Chancellor and others have stated that they wish to re-engage with our largest market, which is the EU. Their aim, and our aim on these Benches, is to remove friction to make life easier for British business. Thereby costs will be kept to a minimum, markets will be more accessible and growth, which we all agree is vital for our future, can be more easily achieved. I was delighted today when the Treasury spokesperson, the noble Lord, Lord Livermore, endorsed the role of this Bill in helping the Government make those moves to re-engage with the EU. It was reassuring that he sees the importance of this Bill in that process. That is a very good mark to put on what we are doing.
We heard some excellent speeches from the noble Lords, Lord Russell, Lord Browne and Lord Kirkhope, in favour of the amendment tabled by the noble Lord, Lord Russell. The UK Government are introducing legislation to guide the future regulation of standards for thousands of products when they are sold in the UK market. It should go without saying that creating different standards for UK businesses hoping to sell in both the UK and the EU works counter to this. Consistent standards that apply across both markets will give business the ability and certainty to sell in both those markets.
Never mind the dolphins. The noble Lord, Lord Frost, brought up the issue of tethered bottle tops. As far as I am aware, there is no regulation in this country to require tethered bottle tops. The reason we have them is because business knows how costly it would be to have two forms of a drink being sold in one market here and one market there. Business understands, even if some noble Lords do not, the true cost of having two different regulations. When it can do without them, it does, and the one it chooses is that of the biggest market, which is very rarely in the United Kingdom.
This legislation is an opportunity for the Government, if they move in the right direction, to reduce the red tape and the bureaucracy that the current version of Brexit has created for British business. We should be under no illusion that Brexit has made it much harder for businesses to export into the European Union.
The wording of this amendment does not bind the hands of Government. As noble Lords have observed, there is absolutely the opportunity to diverge and move away from the regulations in the European Union, if that is to the advantage of the United Kingdom. This is a common-sense amendment that provides regulatory certainty for UK businesses by requiring a default of alignment with EU regulations and a process for parliamentary scrutiny, if or when Ministers determine that divergence from such regulation would be in the best interests of the UK. That is what business tells us it wants—and I hope that the questions that the noble Lord, Lord Russell, asked will continue with that. It also seems to be what the public wants. A poll published today in the i newspaper says that when people were asked where was more important to Britain economically, 57% opted for Europe, with 34% opting for the US, for example. There are lots of good reasons for the Government to support these amendments, because they provide a foundation for economic growth by ensuring that businesses can plan and invest with confidence about where the regulatory regime is going and what kind of regulations are going to apply in the United Kingdom.
Before I come very briefly to Amendment 94, unlike the noble Lord, Lord Browne, I could not help but be lured into addressing some of the comments made by the noble Lords seated just behind me. The comments of the noble Lord, Lord Jackson, were very interesting. His comments about the environment and how appropriate it is to take into consideration things such as deforestation were interesting, and I shall be interested to see whether the Opposition Front Bench endorse the comments that he made, or whether they will distance themselves from them—because I think that is quite important.
Lord Jackson of Peterborough (Con)
For someone who is usually very astute, who listens to my views and is very kind in saying that they are interesting, I think that the noble Lord may have got the proverbial wrong end of the stick. I was not making a value judgment on whether it was appropriate to put environmental standards in this Bill. The substantive kernel of my comments was that it was unclear as to what the definition of environmental standards was—it was not saying that they were good or bad for things such as deforestation.
Lord Fox (LD)
I may have misunderstood—I shall certainly look at Hansard afterwards. But it would be useful for the Opposition Front Bench to explain where they sit in that regard.
I always listen to the noble Baroness, Lady Lawlor, carefully, but I was confused on a couple of issues that she used as examples. The first example was a very long discussion of digital regulation in the European Union—but digital regulation is not a part of this Bill. The second example was the CPTPP, which we all know is not designed to have mutually enforced standards—standards are not a part of the CPTPP, so I am not sure how this Bill reflects on that at all. This is probably a conversation that we can have outwith this debate, because I am speaking to the point—the point being that we can have trade deals with all sorts of places, multilateral and bilateral, with or without taking into consideration alignment with the EU. However, we cannot have trade in the EU if we do not have the right regulations. That is the point on which I wanted to end, in that regard.
I turn briefly to Amendment 94, which is simply a probing amendment to understand how the Government will monitor and approach the developing international standards. To some extent we have heard about issues around whether we should adopt those standards, but we should certainly understand them—that is my thing—and we should know what standards are governing the products that are coming into our country and how they relate to our standards. Clearly, we are importing a lot of things from a lot of places that are not in the EU, from around the world, and we really need to understand under what level of governance those international standards are maintaining the sorts of things that we care about within product regulation.
To close, the noble Lord, Lord Russell, has done this Committee a great service in tabling his amendments; I am very pleased to be one of their co-signatories.
Baroness Bennett of Manor Castle (GP)
My Lords, in moving Amendment 5 I will also speak to Amendments 28, 30, 50, 115 and 125, which are in my name and that of the noble Lord, Lord Fox. I am very aware of the time and the risk of a vote being called, so I am abbreviating this on the understanding that we may be able to have discussions later.
In the interests of time I did not speak on the first group, but the noble Lord, Lord Fox, spoke about this Bill—rather than being a framework Bill or one that is filled with Henry VIII powers—as providing guard-rails. Many will see the amendments in this group as providing a set of environmental guard-rails. The noble Lord, Lord Sandhurst, said that the Bill needed policy direction, and that is essentially what these amendments do.
I take the Minister’s point about there being a level of detail that is not appropriate to include in legislation rather than regulation. I spent this morning with Westminster Forum Projects talking about deposit return schemes and extended producer responsibility. I learned about RAM—recyclability assessment methodology. Those are things that certainly need to be in the regulations, but they need to be the guard-rails here.
These amendments will be classed as environmental amendments, but they are also amendments about things such as the right to repair and tackling utterly unnecessary planned obsolescence, which is deeply costly to consumers. These are also amendments that start to address the cost of living crisis and are real principles for people today. I was going to go through the amendments in considerable detail, but the arguments for right to repair and against planned obsolescence are really obvious so, given the time, I will address just the circular economy elements, which run as a line through these amendments.
It is worth saying that the environmental improvement plan contains a target to reduce residual waste, excluding construction waste, to 437 kilogrammes per capita by 2028, but in 2022 this figure stood at 558.8 kilogrammes. That was only 2.8% down on 2019. In three years, that was all the progress that had been made towards the target of circularity, which is only three years away.
The noble Lord, Lord Frost, who is no longer in his place, was talking about EU rules on deforestation. In 2021, UK consumption was associated with 30,000 hectares of deforestation, with all the climate and nature impacts that we understand. If we look at the climate aspect, the treatment and disposal of waste resources is separately responsible for 5% of all UK greenhouse gas emissions. The cost of that treatment and disposal of waste is borne very often by the public, when actually a few companies are profiting from the production.
I briefly mention, because I promised to do so, that the noble Earl, Lord Lytton, who is unable to be with us for this group, wanted to stress the importance of construction. Although it is excluded from that waste target, there are difficulties because so many problems with, and failures of, design are happening in construction. We all know about the safety impacts but they also have huge environmental impacts—and cost impacts, about which many of us know from working with builders.
In the interests of time, I shall stop there. I beg to move Amendment 5.
Lord Fox (LD)
My Lords, I will speak very briefly on Amendments 30, 115 and 125, which are in my name. As the noble Baroness, Lady Bennett, observed, they are designed to produce guard-rails that significantly strengthen the environmental and sustainability part of the Bill. It seems inconceivable to me that legislation of this kind would not carry these requirements.
Amendment 30, which is the substantive one, would add new subsection (2A) to Clause 2 in order to ensure that future regulations under the Act include provisions that relate to environmental impact assessments, the circular economy and granting consumers the right to repair products. On the latter, despite attempts, the tendency is to continue to find products manufactured with increasingly complex modules that defy cost-effective repair or sensible re-use, which should be an important part of the future economy. This amendment does not dot “i”s or cross “t”s, because that is the role of the actual regulation, but it sets a standard that we should be looking at for the regulation process. That is it; I could go into more detail, but I do not think I have to.
Amendments 115 and 125 are definitions that would help explain what we mean by “circular economy” and “right to repair”. I hope that His Majesty’s Government will find some sympathy with all of this group and find a wording. I am not proud about my words; I am sure that the noble Baroness, Lady Bennett, is the same. Let us find a way of putting these proposals into primary legislation because these are really important issues.
Lord Sharpe of Epsom (Con)
My Lords, I will be brief. I thank the noble Baroness, Lady Bennett, for introducing this group. I assure her and the noble Lord, Lord Fox, that we on these Benches want to see a bright future for our green and pleasant land. That said, we have some concerns about these amendments.
The first relates to the themes that the Committee has been exploring throughout this session. The Bill confers, as we have discussed at length, extensive Henry VIII powers on the Secretary of State. These amendments are broadly drawn and, we feel, have considerable holes in them. Given the wide Henry VIII powers conferred on the Secretary of State, it is not hard to imagine a world where a crazed zealot occupies the position of Secretary of State—it is not hard to think of those, is it?—and decides to apply these provisions in extreme ways without any scrutiny. We really should not lay ourselves open to that. These decisions should be subject to democratic scrutiny. Opinions will be sure to differ on the definitions of some of the phrases in these things. That is not to say they are wrong; it is just that opinions can, and will, differ.
My second point is that we are concerned that the amendments would impose significant costs on businesses. They will stifle competition and harm growth; obviously, this comes at a time when businesses are grappling with significant challenges. Although the proposals appear virtuous on the surface, in practice, they represent an unnecessary and impractical burden on businesses and consumers. That comes at a time when the country needs growth—a point that has obviously been acknowledged by the Government.
These amendments would create additional regulatory burdens, which would hamper industries already struggling with economic headwinds. I also note—I will expand on this theme in later debates—that the market is already supplying many of the solutions sought through these amendments. We believe that, for the many businesses —especially small and medium-sized enterprises—that are already struggling due to various factors, the cost of compliance with these rigid requirements could be devastating. It is not just businesses that will be affected because, of course, those costs will be passed on to consumers. Before any amendments in this group can be considered, surely we must assess the potential unintended consequences for businesses and consumers.
We have a strong record of delivering improvements for our environment but we on these Benches are clear that we should avoid overburdensome regulation on businesses. That said, informing consumer choice is an important component of efficient markets so, notwithstanding our objections, Amendments 28 and 30 in the name of the noble Lord, Lord Fox, have some merit. He is channelling his Orange Book foundations here. Overall, we would not support these amendments, for the reasons that I have outlined.