Northern Ireland Protocol Bill

Lord Purvis of Tweed Excerpts

Committee stage
Monday 31st October 2022 Lords Chamber

Whatever happens, we have to re-embrace the discipline of the Good Friday agreement and the subjection of the protocol to that prior treaty, courtesy of Articles 1 and 2 of the protocol, if we are to celebrate 25 years of the Good Friday agreement come April.

[Lord Purvis of Tweed (LD)]

My Lords, I support my noble friend Lady Suttie in her amendments. Notwithstanding the appeal from the noble Lord, Lord Cormack, these Benches do not need to be persuaded of his arguments. We are nevertheless tasked with scrutinising and testing this legislation, and I support my noble friend’s amendments.

I want to ask the Minister just two simple questions relating to the Sewel convention, which is now recognised as a constitutional principle. Michael Ellis, speaking on behalf of the Government in Committee in the Commons, was asked about legislative consent of this Bill. He said:

“As the hon. Member for North Down will be aware, the Sewel convention applies to this Bill, as it does to all Bills of this Parliament that intersect with devolved competence. I confirm that in the absence of functioning institutions, senior officials in the Foreign Office have already made contact with the head of the Northern Ireland civil service regarding legislative consent … The Government will consult stakeholders in Northern Ireland, including Members of the Assembly, on the operation of the Bill during its passage and thereafter”.—[Official Report, Commons, 13/7/22; cols. 385-86.]


What did the officials ask of the civil servants with regard to legislative consent in the absence of there being an Assembly? This is not a practice that has ever been seen anywhere else for the operation of the Sewel Motion. Which Members of the Assembly have been consulted during the passage of this Bill, and on what? Have they been asked, with regard to the dual regulatory regime that the Bill proposes, and what have their responses been so far?

[Lord Bew (CB)]

My Lords, I rise to put a technical point. I am not sure of the answer—it is a genuine question—but it bears on the amendment. Trade is a reserved matter in Northern Ireland. When there was first sight of Theresa May’s protocol, there was great rage in Northern Ireland. People in Northern Ireland were told, “Sorry, this is a reserved matter.” Subsequently—it was the second iteration—it was very much the view of the noble Lord, Lord Frost, that that was not itself a satisfactory answer, and there is provision in the protocol negotiated by the Johnson Government. The one significant change is to make, in very specific circumstances, a role for the consent of the Northern Ireland Assembly. That is probably the major difference between the two protocols. However, if it is a reserved matter—if that was the answer that I remember being given throughout 2017 and 2018 in this House—I cannot quite see the purchase of these amendments.

If it is a reserved matter, it is a reserved matter. It is for this Parliament to deal with these trade matters. The burden of the Bill is in dealing with Articles 5 and 10 of the protocol—not those on human rights and so on—in a way which, I accept, many Members of this House do not like. None the less, it does not seem appropriate to be raising these issues now about that role for the Northern Ireland Assembly, because trade is a reserved matter held by this House.

The history of this is perfectly clear: the Government of Ireland Act 1920 has language on trade, as do the prior Acts of Union 1800. Then there were modifications to the Government of Ireland Act—benign modernisations, I would say—under the Good Friday agreement and the legislation that went through this House, which left us with trade as a reserved matter. It seems to me that this should be taken into account. There may be some possible answer to it, and the noble Lord, Lord Frost, has negotiated a possible way that one might work around it, but trade is a reserved matter at this point. We are not concerned with the human rights provisions of the protocol and so on; they are not the issue in the Bill. It is directed mainly against Articles 5 and 10, rightly or wrongly—wrongly, I am sure many colleagues on my own Benches think—but trade being a reserved matter is a problem for amendments of this sort.

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[Lord Caine (Con)]

The noble Lord is a former diplomat. He is a far greater expert on these matters than I will ever be. However, my noble friend Lord Hannan has just whispered in my ear “the post office directive”. I will come back to the noble Lord with further details.

[Lord Purvis of Tweed (LD)]

I am grateful to the noble Lord for giving way. I know that we will come on to the application of EU law in later groups, but since the Minister has helpfully referred to that, it would be good for him to be clear that, even under this Bill—the dual regulatory regime that the Government are proposing—there will be direct application of EU laws.

[Lord Caine (Con)]

As the noble Lord rightly pointed out, we will deal with this subject in the fourth group of amendments. I shall be responding for the Government, so if he can contain himself, we will deal with it at the appropriate point—if we get there this evening.

In summary, we do not think that it would be right to make implementation of measures in this Bill contingent on the restoration of the institutions, given the urgency of the situation in Northern Ireland to which the Government must respond.

I turn briefly to Amendments 68 and 69, also in the name of the noble Baroness. Taken together, these would make the commencement of all operational aspects of the Bill dependent on the approval of the Northern Ireland Assembly. At the risk of repeating myself, it is because of the operation of the protocol that the Assembly has not sat since February. We do not know how long this state of affairs will persist. The situation in Northern Ireland is urgent, and we cannot allow addressing the problems with the protocol to be delayed indefinitely.

The noble Lord, Lord Bew—I should really call him my noble friend—rightly referred to the fact that trade has been a reserved matter ever since the Government of Ireland Act 1920. The amendments would essentially prevent the Government making secondary legislation in a reserved area. That is another reason why we cannot accept them.

Given the urgency of the situation—the need to fix the protocol—it would not be right to make the implementation of the vital measures in this Bill contingent on the restoration of the Assembly and Executive. For those reasons, I ask the noble Baroness not to press her amendments.

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Moved by

[Lord Purvis of Tweed]

7: Clause 4, page 3, line 13, leave out subsection (3)
Member’s explanatory statement
This is part of a series of amendments based on recommendations from the Delegated Powers and Regulatory Reform Committee which states that a number of subsections in the Bill “contain inappropriate delegations of power and should be removed from the Bill.”

[Lord Purvis of Tweed (LD)]

I rise to move Amendment 7 and to perhaps add some mascara to this porcine proposal for the satisfaction of the noble Lord, Lord Kerr. I tried to give a preview of the excitement of later groups to retain the attention of the Committee. Alas, we might be on to more of a core group with Clause 4. In many respects, it is the core of the Bill. We have been told by the noble Lord, Lord Frost—who is no longer in his place—that it contains the proposals which will resolve the issues. However, in many respects, the Bill should be called the Northern Ireland delegated powers Bill, because 19 of the 26 clauses are delegated powers clauses and not proposals that we are able to scrutinise properly.

On why imminent peril and the invocation of necessity is so important, it is because it is at the heart of the reasoning why Clause 4 exists. I shall not recap the discussion on the previous group or the first day in Committee, but there is still a lack of clarity about the Government saying that the protocol is the issue but then that it is not the issue, it is its implementation. They have said in their legal paper that the situation of necessity needs to be addressed urgently but also that they have not yet made up their mind on solutions and addressing them will take time. They have said that there is imminent peril, but the Advocate-General told me on the first day in Committee that imminent is as long as the Government might consider it to be, so it is important to try to pin down when the imminent peril started.

I am disappointed that the noble Lord, Lord Frost, is not able to stay for other groups in Committee because I wanted to respond to what he said. If this Bill is a negotiating tactic, he has completely undermined the Government’s argument for invoking the doctrine of necessity for this Bill, because it cannot be both. It cannot be a way of addressing grave and imminent peril and also be a negotiating tactic with the EU. I heard said from a sedentary position, I think by the noble Lord, Lord Lilley, “Why not?” If the whole reason of grave and imminent peril for the invocation of international law is to set aside treaty commitments but there are negotiations under way to resolve them, you cannot invoke the doctrine of necessity because the doctrine of necessity under Article 25 of the International Law Commission can be invoked only if there are no other means of resolving the issues, so it simply cannot be both.

I am trying to pin down when this peril actually started and how we are to consider what the baselines are. The noble Lord, Lord True, told the Chamber in January 2021 that concerns about the implementation of the protocol must not be overstated. He said:

“I acknowledge that there have been issues—that was never denied—but, overall, goods are continuing to flow effectively. Supermarkets are able to move their lorries into Northern Ireland. There are some specific issues, as we have seen with individual suppliers, but it is holding up well overall.”—[Official Report, 14/1/21; col. 884.]


A week later, his then Secretary of State Brandon Lewis told BBC “Question Time” viewers—I quote from the transcript of the programme: “The protocol means that as part of the United Kingdom Northern Ireland is going to have this unique competitive advantage in the world, in the sense that Northern Ireland has the ability to trade in and as part of the United Kingdom as well as through the single market with the EU. That is going to mean if you are a business that deals with the UK and a business that deals with the EU, the place to invest and grow your business is in Northern Ireland. You have got that ability to trade both ways and I think that gives Northern Ireland a competitive advantage and a huge opportunity.”

Therefore, the Government rest their case on grave and imminent peril somewhere between January 2021 and the publication of the White Paper. During that period, I asked repeatedly for information on UK-EU trade, and we were also asking questions about east-west trade between GB and Northern Ireland. Ministers stated to me in response that it was impossible to disaggregate factors such as Covid and then the global supply chain. They have found ways to do for this for GB-NI trade, but it is hard to discern from official government statistics produced by the Northern Ireland statistics body, and the Department for Transport’s data for UK major ports have not shown major shifts. So I would be grateful if the Government would publish this information directly. They have indicated that trade diversion exists, but they have not published statistics showing their case. I am very willing to look at them if they have published them, but they have not yet done so. Therefore, we need to have more information as they are seeking powers to put forward a dual regulatory system of both UK and EU procedures.

I appreciate the comments that were made on the first day in Committee by the noble Lord, Lord Dodds, and others that the protocol has not been implemented in full yet, and I understand that, but neither has the TCA for any UK port of exit and entry for goods into the UK. We are on our third delay for Dover and all other ports, and they are not fully operational. For trade between the UK and the EU, there is not a single fully operational port under the measures of the TCA in any of the four nations.

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[Lord Purvis of Tweed (LD)]

I thank the Minister for his response. We will get to SPS issues later, as well as some of the customs elements that the noble Lord, Lord Dodds, highlighted.

I thank the Minister for his information from HMRC, which I of course read before this debate—it is static information for one calendar year. One of the frequently asked questions under that data is:

“Does HMRC hold data on NI movements from GB before January 2021?”


The answer is:

“No, the collection of data for goods moving into NI from GB has only been required since 1st January 2021”.


The Minister then added anecdotal evidence, which the noble Lord, Lord True, told us that we should not use. Both things cannot equate: a static set of data for one calendar year does not necessarily demonstrate the implementation of the protocol, especially since the trader scheme would have operated under many of these declarations anyway—but we will no doubt pursue some of these matters later on.

I accept that the Minister is open with the offer of a briefing, but it is the draft regulations that we need to see; it is not briefing on what the theoretical operation of a dual regulatory system might be. We need to see the regulations that would operate that. In the previous group and on the first day in Committee, we heard that the Government have practical solutions, and the Minister has referred to them. But, as the junior to the noble and learned Lord, Lord Judge, indicated, an unprecedented breadth of regulating powers will be provided to Ministers. The noble Earl, Lord Kinnoull, was absolutely right: part of the unprecedented nature that is so egregious is that these will effectively be treaty amendments, and we have the well-established CRaG process for scrutinising and effectively approving treaty amendments.

Finally, the reason why all this is important—it addresses one element of the point from the noble Lord, Lord Lilley—is that the Government accept that they are breaching their commitments and that these are wrongful acts. The Minister shakes his head, but they have.

[Lord Ahmad of Wimbledon (Con)]

I am not clear on the noble Lord’s point. What have the Government accepted?

[Lord Purvis of Tweed (LD)]

The Government have admitted that these are breaches of the obligations under the protocol because they have invoked the defence of necessity for wrongful acts. You cannot invoke a defence for a wrongful act if you do not believe that you have committed a wrongful act.

[Lord Ahmad of Wimbledon (Con)]

But if the original instrument is not working in the first place, which it is not—

[Lord Purvis of Tweed (LD)]

Oh!

[Lord Ahmad of Wimbledon (Con)]

It is all very well to be critical. I accept the points that have been made about Article 16, but let us not open up that debate again. What specifically is the noble Lord’s proposal?

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[Lord Purvis of Tweed (LD)]

Let us have an extra set of processes if we are now scrutinising alternative proposals. We are holding the Government to account here and trying to scrutinise the information. When we see the draft regulations, I will of course be able to give some thoughts about them—but how on earth can I respond to something that I have not seen? That is what the Government are asking for and why the DPRRC believes that these powers are not appropriate for primary legislation, and I agree.

On the defence of necessity for a wrongful act, the FCDO’s delegated powers memorandum admits that it is breaching its commitments, so this is not me making an assertion. I am sure that the Advocate-General will intervene on me if that is incorrect. I am just referencing the delegated powers memorandum. Even if this is a defence of committing a wrongful act, invoking the International Law Commission’s Article 25 on wrongful acts—and if the noble Lord, Lord Lilley, is correct that there are now competing treaty obligations—Article 13 of the protocol allows any other treaty mechanism under the TCA or the withdrawal Act to supersede the protocol. So, if the treaty is competing with other obligations, and if the Government accept the case of the noble Lord, Lord Lilley—which they have not—we have put mechanisms into statute to trigger the superseding of the protocol if we wanted to open up new negotiations under the existing treaty. The Government have not signalled that they are willing to do that, so the noble Lord’s case is not particularly strong, even if the Government do not accept it.

In the later groups, we will no doubt return to some of these aspects and points of principle in detail but, in the meantime, I beg leave to withdraw Amendment 7.

Amendment 7 withdrawn.

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Moved by

[Lord Purvis of Tweed]

9: Clause 5, page 4, line 14, leave out subsection (1)
Member’s explanatory statement
This is part of a series of amendments based on recommendations from the Delegated Powers and Regulatory Reform Committee which states that a number of subsections in the Bill “contain inappropriate delegations of power and should be removed from the Bill.”

[Lord Purvis of Tweed (LD)]

My Lords, I shall speak also to Clauses 5 and 6 standing part. There is consistency in some of the arguments to some extent, so this will not necessarily need to be as long.

As the DPRRC indicated, the Government have not yet formed their policy on the precise elements that they are seeking powers for. The DPRRC indicated and highlighted—I agree with it—that we should not legislate when government has not yet formulated its policy. Let us be clear that the Government’s memorandum states that the powers that they seek under these clauses could make criminal offences by negative instrument. Can the Minister confirm that in his response? We should not make new criminal offences by negative instrument.

The Government also state that they need these powers but should not present them through primary legislation. This includes certain areas of new powers for HMRC and other agencies. In primary legislation—in the Trade Act and elsewhere—proper procedures for dating sharing on customs arrangements within the UK have been brought forward. The Government felt that primary legislation was necessary for that, but, under this Bill, they say that they do not believe that primary legislation is the correct approach for it. This is simply not consistent.

I am interested to know what the Government consider to be the interactions with the Taxation (Cross-border Trade) Act 2018. The regulation-making powers under this legislation, providing more powers for HMRC legislative competence, were not provided for Northern Ireland under that Act. I am not sure what has changed. The interactions between Sections 30A, 30B and 30C of that Act are not clear.

Secondly, we can perhaps explore what the Government seek to do on the use of delegated powers to make new law in an area where we have made an international agreement—as we heard, they have not provided illustration for it. The Government’s response to the European Union’s proposals in October 2021 has not been entirely clear either. I am not sure whether they supported its proposals for having just one certificate per consignment of food products, rather than per product—presumably, that would have a major impact on the HMRC statistics and declarations that the Minister referred to. The European Union indicated that that would remove 80% of checks on products of animal origin, or new procedures for prepared meats, such as sausages, import of which into the EU is generally prohibited. So I am not sure what impact assessment was carried out for the EU proposals, had they been fully adopted.

As the noble Lord, Lord Dodds, said, the Ministers took credit for the Trader Support Service, but they now seem to suggest that it has failed. Why? What has been the impact of the Trader Support Service? As I understand, it raises all the documentation and it states that it has been successful. It is on a lucrative contract from Fujitsu Services Ltd, which is at the centre of the Post Office scandal, so what is the Minister’s view about how Fujitsu has carried out its contract? Fundamentally, legislating first before introducing proposals should not be done, and trying to say that legislating for areas where agreement can be made will not be sustainable elsewhere.

I close by thinking that there must be a prize somewhere for government irony. As we know, the delegated powers memorandum on Clause 6 states that it is a breach of an “international obligation”. Paragraph 56 says that

“regulatory procedures … can be updated to ensure compliance with, or give effect to, any international obligation or arrangement to which the United Kingdom is a party.”

That is quite welcome. However, it is a shame that these powers are removing those obligations and are providing such unprecedented breadth to the regulation-making powers for Ministers. The case has not been made; therefore I beg to move.

[Baroness Chapman of Darlington (Lab)]

I will speak briefly to Amendments 10 and 11, which we have tabled because, like the noble Lord, Lord Purvis, we too wanted to highlight concerns about these issues. As I am sure noble Lords can see, in the current Bill, delegated powers are to be used when Ministers consider it “appropriate”; we would change this to “necessary”. Prior to tabling these amendments, we have signalled our general concerns about delegated powers fairly consistently throughout the process of leaving the EU, since the EU withdrawal Bill in 2018. It is disappointing Ministers’ fondness for this technique seems to have grown; we now see it frequently in things that are quite wide-ranging. I was recently involved with the Schools Bill, which was riddled with these powers because, frankly, the Government did not know what they wanted to do on a wide policy area, so inserted a bunch of Henry VIII powers to give themselves the flexibility to backfill their argument later and decide what they wanted to do once the Bill had passed. Obviously, there was a huge row about that and the Schools Bill is no more, so we can only hope that lessons were learned.

We have been raising concerns again and again about how the Government are just relying on delegated powers, but for some reason the scope of the powers in EU-related Bills seems incredibly wide and we are starting to tease out, with the Minister, some of their intentions. However, an intention stated at the Dispatch Box—or something indicated in other government documents—is not sufficient when we are talking about these sorts of issues. What we really want is clarity and the ability to scrutinise and have those discussions on the Floor of this House, but the way the Government are going about this denies us this opportunity. One of our main concerns is the Government deciding to use skeleton Bills in the way they are.

These are quite general concerns. As we have heard, there are much bigger concerns about the Bill and we have covered some in our debates today and last week. We fully understand the concerns raised about Clauses 5 and 6, which enable the creation of new customs arrangements without primary legislation. The noble Lord, Lord Purvis, did a very effective job of going into those in some detail, which I do not feel I need to repeat. This is quite a precedent to set and we feel deeply uncomfortable about delegating these kinds of powers to the Treasury and its agencies. In the past—I mentioned the Schools Bill, but there have been other examples—the Government have backed off, removed some of these powers from legislation and changed tack by putting in place genuine checks on their use. In all honesty, I do not think that particularly helps us with this Bill because, as many have said, a whole face of make-up could be applied to this Bill but it really would not help.

That said, it is important that we, as a House, put down a marker and make our view known to the Government on this issue of delegated powers, because this is quite an extreme example in the Bill. Perhaps when some more stability is available to Ministers, this might be something we start to see less of, because the government agenda would become clearer. I must say—noble Lords can hold me to this—that should my party win power in the coming months or years, I hope that this is not an approach that we would seek to take. I am very well aware that this is on the record and will be quoted back to me. Such is our concern about the overuse of these powers that I am very happy to be held to my words.

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[Lord Ahmad of Wimbledon (Con)]

As I have alluded to, it is a question of where that bar is set. The Government are, in this instance, looking for that extra level of flexibility for the Minister concerned to be able to make that appropriate act. I accept what the noble Baroness is saying regarding her amendment. Certainly, I am sure that there will be some practical examples and insights that we will exchange on what can be met by those particular tests.

Clause 5 ensures that a Minister of the Crown also has the power to make regulations in relation to the movement of goods to which Clause 4 relates—[Interruption.]—my apologies: that is my phone. This is what happens when you have a 10 year-old and an eight year-old at home—they may be providing me with an answer to the question from the noble Baroness, Lady Chapman.

Specifically, the clause provides for the creation of secondary legislation, which will enable Ministers to define how the green and red lanes work in practice. Regulations made under this power may, in particular, provide for the application of any checks and controls before or after a movement of goods on UK or non-EU destined goods moving into Northern Ireland in order to ensure that appropriate processes are in place to manage, for example, biosecurity risks. Such powers may also be used to ensure that goods that are heading to the EU comply with relevant regulatory processes, such as sanitary and phytosanitary controls. Much of this is operationally focused or deals with the processes to be applied by the relevant government departments. We believe that this clause is essential to enable the appropriate Minister to have the flexibility to deliver the UK’s proposals for this new regime for the movement of goods.

I turn briefly to Clause 6. Again, the noble Baroness, Lady Chapman, alluded to the issue of the Treasury and HMRC having the power to make regulations in relation to the movement of goods for customs matters. Alongside Clause 5, this will enable the delivery of new green-lane arrangements, which remove unnecessary costs and paperwork for businesses trading within the UK. We heard in the previous debate from the noble Lord, Lord Dodds, on challenges being faced by businesses.

Specifically, the clause provides for the creation of secondary legislation to administer the green lane through appropriate checks, controls and administrative processes for goods that would otherwise be subject to EU customs rules. It is the Government’s view that this clause is absolutely essential to enable a Minister of the Crown to have the flexibility to deliver the UK’s proposals for the green and red lane arrangements. Taking power to provide for the regime is required and the precise detail of the regime will be properly subject to consultation with stakeholders. I therefore recommend that this clause stand part of the Bill.

[Lord Purvis of Tweed (LD)]

My Lords, I am grateful to the Minister for his reply—he can tell his kids that we are also doing trick or treat here, although I am not sure what the balance is between the tricks and the treats. I am grateful for his response and for the support of the noble Baroness, Lady Chapman, and the noble and learned Lord, Lord Judge, who is of course here in spirit if not in person.

I strongly agree with the noble Baroness. On a sensitive issue such as this, the powers that Ministers have should be absolutely necessary in order to deliver what they have said they want to deliver. They should not be any broader than that. But the Government have not formulated their policy yet, which is at the heart of the frustration. We are being asked to legislate to give powers to Ministers, but they have not said what they then want to implement. They have not indicated what the interaction with the Taxation (Cross-border Trade) Act will be or why HMRC will be given statutory powers which that Act does not provide it with. I do not believe that we should be in a position where we give in primary legislation the “level of flexibility”—as the Minister said—to Ministers when they have not explained to us what they want to do.

I do not think that the Minister has persuaded me at this stage. I welcome the noble Baroness’s commitment that, if her party wins power, they will not bring forward proposals such as this; on behalf of these Benches, I can give the same commitment that when we achieve power, we will not bring proposals such as this either. In the meantime, before Report or we achieve power, whichever comes sooner, I beg leave to withdraw the amendment.

Amendment 9 withdrawn.

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Debate on whether Clause 7 should stand part of the Bill.

[Lord Purvis of Tweed (LD)]

My Lords, I am grateful for the patience of the Committee on this trio of groups. Clauses 7 to 10 are at the real heart of the proposals, which links to the comments from the noble Baroness, Lady Ritchie, before about trying to understand how the Government will really manage the situation that they want to put in place with the dual regulatory regime.

The dual regulatory regime may be fairly neutral, but it of course means that Northern Ireland will be perpetually part of the EU single market. Clause 7 suggests that a trader can choose to operate under the EU law system or under a UK system, as the Minister referred to on an earlier group. That EU law system would be under separation agreement law.

My first question is genuinely a probing question: there may be a good reason for it, but what impact will the Retained EU Law (Revocation and Reform) Bill have on the implementation of EU regulations in this regard? I do not know what effect the mechanism for updating, as proposed under that Bill, will have on separation agreement law under this Bill. Do we have to legislate for any changes when it comes to the EU changing its regulatory approach?

Is this going to be a dynamic system where we will automatically update domestic statute if the EU changes its approach? If it does, then we are back to square one from our colleagues from the Democratic Unionist Party, who have been railing against that, but we will in effect be in a worse position because this is automatic updating of domestic legislation for another set of statutes from another power, which none of us will have any say over. I find this hard to believe and would be grateful if the Minister were able to say that this is not going to be the case.

The questions now relate to the green and red channels—the dual regulatory system. I would like to know from the Minister: who will operate them? The Delegated Powers and Regulatory Reform Committee says in paragraph 42 in reference to Clause 9:

“This is the frankest admission by the Government that policy is so embryonic that it has not yet been consulted on. And yet Parliament is being presented with a major Bill on the subject. Legislation has preceded policy development rather than vice versa. Nor is it remotely credible to say that it is not possible for these matters to be put on the face of the Bill. Why should the Bill say so little, with so much left to regulations?”


Perhaps we can get clarity for business on the dual system. The Government say that businesses will be able to choose. I would be grateful to know how. Will they have to fill in a declaration? What default system will be in place if they ship products without a declaration? Will they be prohibited from shipping to Northern Ireland if they have not declared what their route is? How will they know what status their GB or EORI classification gives them? We have been led to believe that if they operate under the Trader Support Service with an EORI classification, this process is already streamlined. Will there be a Trader Support Service for both the separate routes now?

The noble Lord, Lord Dodds, asked a valid question: for how long will this scheme operate? If the Government felt it was necessary that there was a Trader Support Service for a scheme which operated under EU procedures and regulations, and they are proposing that they will still be operating under EU regulations—under the dual regulatory system—so will a Trader Support System operate permanently? At what stage does a business choose? Is it for each consignment, or will the business have to choose at what stage of production it opts for each of the routes? What if it wants to use a UK route but also needs an EU conformity assessment? Will there be a public register of who is operating, and how will it be monitored? Who will have access to the data, and is this going to be a public mechanism for which routes certain enterprises choose to operate? The latter questions are vital, I think, because it has to be known, as it may well be challenged under a legal system, and what will that legal system be?

Clause 10(1)(d) relates to the use and import of goods. Is the choice for the seller or for the purchaser? This is fundamental if it is to do with east-west trade, so can a purchaser from Northern Ireland determine that their supplier uses the UK route, or is it the supplier who says, “I am very sorry but I have opted for the EU route, so this the situation that is going to have to be received, and the good that goes into the market has to have the EU mark on it”? I do not know, so I would be grateful for clarity.

Michael Ellis, the Paymaster-General, told the Committee in the Commons that the choice of using a route is completely voluntary, but Clause 11 means that it could be compulsory. Why? Which is it? Is it voluntary for businesses, or could it be voluntary until a Minister says it is compulsory? I think this is a breeding ground for utter confusion: an entire system being established at the outset, only for there to be a broad regulation-making power, which could be put in place without consultation—there is nothing in the Bill that states there will be consultation—to say, “All of your choices that you have been making for this, we have now said that you have to use this particular route.”

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[Lord McCrea of Magherafelt and Cookstown (DUP)]

My Lords, having listened to the debate thus far, I have again noticed that a number of noble Lords seem to be exercised about the DUP’s well-known opposition to the protocol. To be clear, not one unionist or unionist party in Northern Ireland accepts the protocol. Rather than just mentioning the DUP, I ask noble Lords collectively not to obsess over the party and realise that there is a serious problem to be dealt with. Clearly, we have an impasse at present, and until the Northern Ireland protocol is dealt with, we will not move forward into an Assembly. That must be restated.

In this group we are confronted with the proposal that Clause 7 should not stand part of the Bill. The clause deals with the option of dual regulatory routes, which arises from the Bill creating a regulatory route that does not involve complying with the protocol. Thus, those proposing the removal of Clause 7 once again engage their argument that the doctrine of necessity cannot be applied and thus excuse us from complying with the protocol. In that context, they maintain Clause 7 should not stand part of the Bill.

Once again, it seems to me that arguing for necessity and a special dispensation not to obey international law is not the best way of addressing the protocol problem. In making this case, I will pick up on the assertion made by some noble Lords that this Bill is problematic not only because no commitment was made to it in the 2019 Conservative manifesto but because the manifesto suggested that the Conservative Party was committed to the protocol. It seems to me that one can assert on this basis that it would be wrong for the Government to bring forward a Bill such as this only if we pretend that Articles 1 and 2 of the protocol are not part of it.

Not only do Articles 1 and 2 subject the protocol to the Belfast agreement treaty, but Article 30 of the Vienna Convention on the Law of Treaties makes it plain that, in the event of any conflict, the Belfast agreement should prevail. This clearly implies that if the operation of the protocol undermines the Belfast agreement, action must be taken. This is more than implied in Article 2, which actively places as a matter of international law an obligation on the UK Government to ensure that the operation of the protocol does not diminish the rights set out in the section of the Belfast agreement

“entitled Rights, Safeguards and Equality of Opportunity results from its withdrawal from the Union”.

As other noble Lords have pointed out, the operation of the protocol is dramatically diminishing the right in the relevant section of the agreement to

“pursue democratically national and political aspirations”.

This right can no longer be pursued in relation to 300 areas of law that have now been removed from a legislature that includes legislators elected by Northern Ireland and placed in a legislature where Northern Ireland has no legislators. This means that, rather than international law being the enemy of this Bill, it is its friend, because the Government are subject to an obligation in international law—Article 2 of the protocol—to take action to ensure there is no diminishment of the right to

“pursue democratically national and political aspirations”.

There is an additional international legal imperative in this regard which should not be overlooked. It arises from Article 3 of the protocol of the European Convention on Human Rights and the case law arising from the case of Matthews v United Kingdom. Matthews lived in Gibraltar and was subject to legislation made by the European Union. As in the case of Northern Ireland, this legislation was made by the European Parliament, in which Gibraltar had no representation. Paragraph 64 of the judgment of the European Court of Human Rights in the case concluded:

“In the present case, as the Court has found (see paragraph 34 above), the legislation which emanates from the European Community forms part of the legislation in Gibraltar, and the applicant is directly affected by it … In the circumstances of the present case, the very essence of the applicant’s right to vote, as guaranteed by Article 3 of Protocol No. 1, was denied. It follows that there has been a violation of that provision.”


This case is of seminal importance, because it established that it is not lawful for any jurisdiction to be subject to legislation made by the European Union when the citizens of the said jurisdiction are not given the opportunity to elect their own representatives to the EU institutions to make that law. The Matthews judgment rings out loud and clear across Northern Ireland. The legislation imposed on Northern Ireland, courtesy of parts of the protocol, denies the very essence of the right to vote, as guaranteed by Article 3 of the protocol of the European Convention on Human Rights.

[Lord Purvis of Tweed (LD)]

My Lords, I thank the noble Lord, Lord McCrea, for giving way. I am following his argument very closely. I do not understand why that argument will not apply to the red route under a dual system. The dual system, by definition, will include the EU route, which will automatically apply EU rules for trade with Northern Ireland, which will still apply to all the areas that he said will have no say.

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I therefore recommend that these clauses, which are essential to delivering the Government’s objectives and dealing with key issues in the protocol, stand part of the Bill.

[Lord Purvis of Tweed (LD)]

My Lords, I am grateful for both the Minister’s full response and his offer to write when he has reviewed some of our questions. I still have questions over what “classes of goods” means and some of the issues that he raised.

I am grateful for the illustration of conformity assessment. It is one of those areas that sounds so technical and boring when you debate it. It is technical and boring, but every good will have to have it in every shop for every consumer. This means that, separate to the protocol, a manufactured good for a consumer in Northern Ireland, such as a toy, will have to have a CE mark on it if it has used an EU conformity assessment body, of which there are a number in GB. However, if it has used a UK-based body, of which there are none uniquely in the UK at the moment, it will have to have a UKNI mark and a CE mark on it. There is no option. So, uniquely in the four nations, consumers and importers in Northern Ireland will have to check that their goods have either a CE mark or a CE/UKNI mark on them. They will not have a UKCA mark on them; it will be different.

This goes back to the sincere points made by the noble Lord, Lord McCrea, about how to have a situation where there is no difference between Scotland, where I live, Northern Ireland, England and Wales. The reality of this Bill and this Government’s choices on the marking of goods and where they will be checked is that things will still be different, with different procedures and processes. When it comes to using an EU conformity assessment accreditation body, we have no say over its rules and regulations and what it says. This Bill is not going to resolve that but I am grateful for the Minister’s response.

I am going to call these the Rumsfeld clauses because what we are being asked to put in place in statute are regulation-making powers for the known unknowns. However, in Clause 9 we also want powers for the unknown unknowns. We do not know whether they are going to work so, under Clause 9, we want the powers to be broad enough for us to have the power to make them work if they do not work. I do not think that Rumsfeld powers are something that our Parliament should operate with; the case has therefore not been made.

I look forward to the Minister’s letter and further clarifications, of course—I therefore reserve judgment—but, in the meantime, I beg leave to withdraw.

Clause 7 agreed.