(2 years, 11 months ago)
Lords ChamberMy Lords, I think it is reasonable that we should bring in controls as we see fit, in a staged and controlled way over time, so that companies have time to adjust to them. That staging means that the process is spread over a year or two, but that is reasonable and makes life as easy as it can be for businesses both exporting and importing.
The noble Baroness is correct to refer to the substantial sums we have spent on implementing the Northern Ireland protocol. That demonstrates that the accusation sometimes made against us that we are not interested in implementing the protocol is not correct. We have spent a lot of money in an attempt to mitigate the burdens, but there are obviously simpler ways of mitigating the burdens than requiring every good moving to Northern Ireland to go through a customs process and paying the heavy costs of that—and it is those new solutions that I hope we can find in the coming months.
My Lords, I thank my noble friend for all he has done in very difficult circumstances this year. What positive news can we expect on EU and UK matters in the years ahead?
My Lords, I think we are ending the year on a positive note. We have had a year’s experience of running the Trade and Co-operation Agreement; we have the governance arrangements in place; all the disasters predicted about threats, problems and the collapse of trade—one set of difficulties after another—have not materialised and we end the year in a good place. It is my hope that we will have a constantly improving and very friendly and warm relationship with our EU neighbours, based on free trade and friendly co-operation. That is where we want to get to, and that is where, I am sure, the Government will be taking things forward next year.
(3 years ago)
Lords ChamberThe noble Lord makes an extremely important point. I have said before, and say again, that Article 16 is not an on/off switch for the protocol. It is not a sort of self-destruction mechanism for the protocol; it is a safeguard. There are constraints on what can be done with a safeguard. The legal limits of it are to be defined but, if you use Article 16, it is clear that you are left with a protocol with safeguards operating. That is why we find it so difficult to really understand the volcanic reaction that we get to the suggestion of using the safeguards provisions. It is a safeguard, and it is designed to support stability and ensure that the protocol fulfils its task of supporting the Belfast/Good Friday agreement. If we do use the safeguard and Article 16, that will be the spirit in which we do so.
My Lords, I am grateful to my noble friend the Minister for giving us an update, and for doing so in prime time, not at 7.30 pm. I also refer to the helpful reply that he gave to the noble Baroness, Lady Chapman of Darlington, about contingency arrangements on R&D. Could he talk more widely about contingency planning in the event that Article 16 had to be triggered? What conversations have he or his officials been having with interested businesses and Northern Ireland interests, about, for example, the impact of any tariff or bureaucratic changes that the EU might implement here or on the island of Ireland, and what we might do by way of response?
(3 years, 1 month ago)
Lords ChamberMy Lords, I think the question is based on a slight misconception that the legal text that we sent in represents some new stage or evolution in our position. It does not. It reflects the position that was set out in the Command Paper on 21 July and puts it into legal form. It is a negotiating document for the purposes of negotiations. It does not change the UK Government’s position in any way. Of course we discuss with elected politicians in Northern Ireland all the time what our position is, and we did that while preparing the Command Paper.
My Lords, I am interested in trade and especially in exports, because they are vital to UK growth and success. We heard from the Minister about trade within the island of Ireland, but how does he expect the pattern of UK trade within the EU 27, both in goods and services, to change in the years ahead?
My Lords, my noble friend identifies an important point, which is that trade in both goods and services is subject to a lot of noise at the moment—the ongoing Covid pandemic, the effects of leaving the customs union and the single market, stock building and so on—and it is difficult to isolate trends. Nevertheless, our goods exports are nearly back to the levels of 2019. Services exports and imports are down somewhat, but of course the huge impact on the movement of persons, tourism and so on has very significantly affected those figures. So it will be a long time before we reach a steady state, but I have huge confidence in the ability of our exporters and traders to manage that situation.
(3 years, 2 months ago)
Lords ChamberDoes the Minister realise that the grace period puts British industries at a substantial short-term disadvantage? Are there any upsides beyond those already described by my noble friend Lord Moylan? I am very glad to see that my noble friend Lord Frost is still a Minister. What diplomatic and other steps will he take to put this matter on to a more satisfactory long-term basis?
My Lords, we are obviously in constant touch with the European Union through the institutions created in the trade and co-operation agreement and many others. We sought last year to negotiate more relaxed arrangements at the border in both directions, on food and drink and on other issues. Unfortunately, the EU was not open to that at that point, but if it were to become open to it in future, we would obviously wish to engage in that discussion. That is clear, and we will keep making that case, because we believe that it is in the interests of both parties.
(3 years, 6 months ago)
Lords ChamberMy Lords, I read the ONS report with interest. It confirms the position on trade, which I have set out on several occasions before: that there are a number of factors prevailing here. It is true that 2018 may well have been the last full year of normal trading conditions, but we are still in a pandemic. Economies have not returned to normal, so it is not entirely surprising that trade figures have also not returned to normal at the moment.
My Lords, perhaps the most pressing issue facing the country, other than Covid, is discerning the best way forward post Brexit, economically and in other ways. Whether drawing up an impact assessment would be the most helpful method is doubtful in this case. However, does my noble friend the Minister agree that a full evaluation of the new opportunities that he has mentioned is now essential?
My Lords, I agree with my noble friend that there are huge opportunities from Brexit, and we are taking those forward as set out in the Government’s legislative programme: a subsidy control Bill, a procurement Bill, a National Insurance Contributions Bill, a freeports programme and so on. These are all huge opportunities. It might be premature to do an immediate evaluation of the effect of all those before they have been introduced and brought into force, but of course impact assessments will go with the necessary legislation in this area.