UK-EU Withdrawal Agreement Debate

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Department: Cabinet Office

UK-EU Withdrawal Agreement

Lord True Excerpts
Thursday 10th December 2020

(3 years, 3 months ago)

Lords Chamber
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Lord Purvis of Tweed Portrait Lord Purvis of Tweed (LD)
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My Lords, I am grateful to the Government Chief Whip for facilitating a substitution on our Bench, and I am glad that the Minister is keen today. Will the noble Lord allow this House to debate the content of the technical papers as a result of the agreements that have been reached? We know that the Statement in the House of Commons was just one part. The statement from both the Vice-President of the Commission and the Chancellor of the Duchy of Lancaster was very brief, but it alluded to a series of technical papers that will have far-reaching consequences for the operation of Northern Ireland and GB trade, as well as the other areas that are the responsibility of the joint committee. Will we be able to debate them?

During the passage of the Trade Bill, I have said repeatedly that one of the founding principles of my party was fair, free and open trade. We want to see businesses, large and small, across all countries in the UK, prosper. I do not think anybody could fail to have been moved, listening to “The World at One” on the BBC today, when a businessman in Northern Ireland, representing family businesses, laid bare the reality of the new costs that the Government are imposing on businesses doing their work. He said that, for his business, even with a deal with the European Union, he was looking at extra administrative costs of £150,000 —or, as he put it, four or five people whom he will not be employing.

The totality of these costs was highlighted by the announcement today of a further £400 million, which is going to offset the cost of bureaucracy and business burdens rather than being invested in people and our economy in Northern Ireland.

The Chancellor of the Duchy of Lancaster said in the Statement that he wanted to see the border operating model for Northern Ireland

“fully operational on 1 January 2021”.

We know from the euphemisms about a grace period, or, on the border operating model, a phased introduction, that it will not be fully operational. In fact, it will not even be partially operational. It will not be ready. Ministers in this House and the other place have repeatedly blamed businesses for not being ready, when the Government themselves are not. I hope that the Minister will be able to answer specific questions today from across the House.

There was reference during Commons questions on the Statement to new border facilities for Northern Ireland

“in order to ensure that these limited and proportionate SPS checks”—

checks on live animals—

“can be carried out at the port of Foyle, Warrenpoint, Belfast and Larne”.—[Official Report, Commons, 9/12/20; col. 851.]

These are in addition to what we have always had at the port of Belfast, which has typically been checks on live animals coming across from Scotland. When will these four new ports be operational? Why is there the need for this expansion, if the Government’s mantra is that there are no additional checks? What extra checks, other than SPS, will be carried out on goods going from GB to Northern Ireland under this agreement?

The director at the port of Larne, Roger Armson, spoke to the Northern Ireland Assembly in October, raising concerns about the lack of clarity on the new system for IT at the border and the goods vehicle movement system. He said that given that 40% of cargos head south, it is vitally important to secure clarification. There is still no clarification, so can the Minister say when they will be able to have it?

In the Statement, the Minister said that the agreement will

“allow some EU officials to be present at Northern Ireland ports as UK authorities carry out our own procedures.”

This is the first time that foreign entity staff will be supervising UK staff at our ports. Where will they operate from? This Minister—the noble Lord, Lord True —said on 12 May:

“There is no reason why the Commission should require a permanent presence in Belfast to monitor the implementation of the protocol”.—[Official Report, 12/5/20; col. 655.]


We now know that there is, so how will it operate for these foreign inspectors?

The Minister could not answer simple questions with regard to goods that are packaged in Northern Ireland going to GB, and vice versa. He said that there is no clarity in the first phase but he was hoping that there would be some information very early in 2021. He said, “This is what I am advised”. What can he advise the House now as to when businesses will be clear about the information that they need to put on their goods—goods that are either packaged in Northern Ireland or goods that are going to be moved from GB to Northern Ireland? We need answers.

In its paper on Monday this week, the Chamber of Commerce agreed that it needs answers. That paper made grim reading. Of 35 sets of key questions which they had signposted with a traffic-light system, only 11 were marked green—meaning that they have been given satisfactory answers. There were 19 at amber and five at red. One of the red questions was about what food labelling will be in place. We know that there is a grace period but is it purely, as the Statement said, to allow supermarkets to prepare? To prepare for what? Has the decision been made about whether foodstuffs going from GB to Northern Ireland will have to have EU or UK labelling? A grace period is only that if we know what happens at the end of the three months. Where is the clarity?

It is not just businesses that have not had answers. On 12 November, I asked the noble Lord, Lord True, what labelling would be required for goods. I will quote from Hansard:

“My Lords, I will write to the noble Lord on his very specific point about labelling.”—[Official Report, 12/11/20; col. 1141.]


I have not had a response. I reminded the Minister’s office on 30 November and had a courteous reply from his private secretary, saying that the letter had been commissioned and that he would chase it. I still have not received it. It is not only businesses that are not getting answers but parliamentarians.

We knew that there would be no contingency arrangements for Northern Ireland in the event of no deal when the Government made their announcement earlier this year about some of the potential new checks that would be put in place, plus the new infrastructure and new costs on business. As the noble Baroness, Lady Hayter, indicated, we know that there are no contingency arrangements in place for Northern Ireland when the Prime Minister comes to prepare for no deal, so all these questions are valid.

Regarding the rest of the UK and the announcement from the Commission today regarding contingencies, we will potentially have what is often euphemistically referred to as an Australian deal. But even Australia and the EU have an air agreement and a number of agreements that do not require contingencies to be put in place in just a matter of days’ time. The Commission said that the United Kingdom would be subject to these arrangements if they are equivalent. I quote the Commission’s paper:

“These arrangements would be subject to the United Kingdom conferring equivalent rights to air carriers from the Union, as well as providing strong guarantees on fair competition and on the effective enforcement of these rights and guarantees.”


That is the same for air, haulage operators and others.

Will the Government give such equivalent rights, so that if we are to prepare for the worst we can at the very least ensure that there is equivalence for the contingency arrangements that will be in place? That will remove at least one element of confusion on top of other burdens and costs that businesses will have to face in just a few days’ time.

Lord True Portrait The Minister of State, Cabinet Office (Lord True) (Con)
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My Lords, there was a very large number of questions there, but most appeared to be in the “dissatisfied” column. I know the House finds this not particularly pleasant to hear, but the United Kingdom Government have made it clear for a very long time that we would not accept an agreement that did not recognise the decision of the people of United Kingdom twice to vote for a sovereign separation from the European Union which should involve our right to control our laws, our borders and our waters.

I infer from the noble Baroness’s remarks that the Labour Party would accept a deal that would not provide us with control of our borders, our laws and our fish because the line she put forward was effectively “agreement at any cost”. We are working tirelessly to get a deal. The Prime Minister made that clear. As I said, we have been clear from the outset that we cannot accept a deal at any cost. As has been made clear this week, there are still differences between the two parties. To repeat what I just said, we cannot accept a deal that will compromise control of our money, our laws, our borders and our fish.

I say in response to both the noble Baroness and the noble Lord that we have been preparing for a long time for all contingencies. We have discussed matters with the devolved Administrations, businesses and affected partners. We have issued advice on a border control operating scheme. We have issued advice to various sectors in Northern Ireland. We are engaged in constant discussions and meetings with those who will potentially be affected. We are also preparing for an Australian-style outcome if necessary. We have invested £705 million in jobs, technology and infrastructure at the border, and provided substantial grants to boost the customs intermediary sector and so on.

The majority of the changes, referring to the impact on businesses, will occur from 1 January 2021 regardless of whether a free trade agreement is made with the EU. Of course, I accept one could always do more to perfect communication, and we are investing an enormous amount of resources to get the case over, to reach businesses and to reach those affected. We are absolutely committed to ensuring businesses have all the information they need to get ready. But I was not sure if the noble Lord was objecting to the idea of phasing the introduction of some arrangements. We believe that that is a sensible and pragmatic approach.

On security, we see no reason why security arrangements should be seriously affected. There is a common interest for all the countries in Europe in relation to security.

On labelling, I may be misremembering, but I believe I wrote to the noble Lord on 30 November with a detailed answer to his question on labelling. If he has not received the letter, I apologise, but I am informed by my office that it was sent.

I was also asked about supermarkets. It is not only supermarkets that we wish to help with the new trader assistance approach; we will reach beyond large operators, but the grace period is offered to supermarkets.

It was implied that EU officials will be issuing directions to United Kingdom staff, but I can assure the House that that is not the case. The House is constantly asking the Government to honour the terms of the protocol, and as the House knows, within the protocol, the EU has the right to ensure and see that matters are being appropriately conducted. But that has never meant, and will never mean, that the EU necessarily has to have an office, embassy or mission building in Belfast. I stand by the comments I and other Ministers have made.

On the announcement today of a new deal for Northern Ireland, the £400 million is on top of other resources announced for assistance with making preparations. So, there is no double counting there; this is new resource.

As far as debates are concerned, both the noble Baroness and the noble Lord will understand that that is a matter for usual channels. There will be another Statement on Monday, I believe, but I hear the noble Lord’s comment about a wider debate. However, he will understand that limited time is available.

Looking at the clock, I am not sure whether I am bound by the 20 minute-rule. Last time I went on after 20 minutes, I was told I should not have done. I cannot get used to the rules of the hybrid House. I thought I should answer the noble Baroness first; I in no way meant to belittle the noble Lord on the Liberal Democrat Benches.

Of course, I reject absolutely the general comments about the United Kingdom Government’s stance and the accusatory remarks made about the Prime Minister. The Prime Minister has been candid, on the one hand, about our position. In a negotiation, each side needs to understand the other’s position. The purported subject of the Statement repeated to the House—the Joint Committee agreement on the Northern Ireland protocol—is a good example of pragmatic co-operation. So, there is evidence that the United Kingdom Government are prepared to seek agreement and negotiate in good faith.

The position, I am afraid to say, does remain, as has been made clear on innumerable occasions—this is not a change or a novelty—that we simply are asking the EU, with the greatest respect, to accept free trade agreement arrangements with us that are similar to those it has agreed with other nations around the world. We do not think that that is an unreasonable request or aspiration. We also ask that they respect and understand the decision of the British people that they wish to have—I make no apology for using the word—sovereign control of their laws, their borders and their waters.

I believe a pragmatic and good outcome is the main burden of this Statement in relation to the agreement on the Northern Ireland protocol. As far as the broader negotiations are concerned, those are continuing, albeit amid the candour on both sides about the difficulties that remain. Let us see how events turn out over the next few days.

Lord Russell of Liverpool Portrait The Deputy Speaker (Lord Russell of Liverpool) (CB)
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We now come to the 30 minutes allocated for Back-Bench questions. There are 18 speakers listed. I appeal to all noble Lords, out of courtesy to one another and to the House, to be extremely brief. I am sure that the Minister will also be succinct.

Earl of Kinnoull Portrait The Earl of Kinnoull (Non-Afl) [V]
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My Lords, the Statement and its associated Command Paper are very welcome, particularly as they are evidence that both sides in the UK-EU joint committee are now working together in a pragmatic and friendly way. I congratulate all involved. However, we still have no satisfactory structures in place for parliamentary scrutiny, either of the joint committee itself or of new EU law applying to Northern Ireland under the protocol. What steps is the Minister taking to facilitate such scrutiny?

Lord True Portrait Lord True (Con)
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My Lords, I am a poor and feeble plant, but by standing here I am seeking to assist scrutiny. I understand the broader thrust of the question from the noble Earl, but he will also understand that arrangements for the scrutiny of government across the board by committees in your Lordships’ House is not a matter for the Executive. It is matter for your Lordships’ House and it is not for me to declare. As far as my ministerial responsibility is concerned, I am ready to appear before whatever committee, and this House, at any time that is requested.

Lord Robathan Portrait Lord Robathan (Con)
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My Lords, many people will have been very disappointed that the noble Baroness, Lady Hayter, had not a word or hint of criticism of intransigence on the EU side—only of those working to the best of their ability for the interests of the British people. For instance, what about Macron’s stance on fish? By the way, I voted to leave the EU for sovereignty, not for any other reason. This update is welcome. It is not perfect; I am not sure I give it a full three cheers and changes may be required in the future, but at least there was a spirit of compromise on negotiation from both sides. Can my noble friend confirm that the protocol allows for further changes depending on how things work out?

Lord True Portrait Lord True (Con)
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That is certainly true. At the end of the day, the maintenance of the protocol will remain a matter for democratic decision by the people of Northern Ireland. I am grateful for my noble friend’s opening remarks.

Lord Russell of Liverpool Portrait The Deputy Speaker (Lord Russell of Liverpool) (CB)
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The noble Lord, Lord Bird, has withdrawn, so I call the noble Lord, Lord Clark of Windermere.

Lord Clark of Windermere Portrait Lord Clark of Windermere (Lab) [V]
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My Lords, all Members of the House are aware that the Isle of Man lies half way between the United Kingdom and Northern Ireland, yet it has never been a member of the European Union in its own right and is not included in the UK membership of the EU. That relationship is dependent upon protocol 3 of the UK’s Act of accession. That protocol also allows the island to be part of the European Union customs area. Will the Minister double check—or indeed treble check—that the interests of the Isle of Man are covered by and included in this agreement?

Lord True Portrait Lord True (Con)
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My Lords, I will certainly check, as the noble Lord asks. I am not briefed in detail on the Isle of Man but I will make sure that I write to him and that the letter is made available to others present.

Lord Empey Portrait Lord Empey (UUP)
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My noble friend will be aware of my views on the protocol, which I believe is a dagger pointed at the heart of the union. But I wish to ask him two technical questions. First, the Statement mentions a three-month delay for the implementation of food into supermarkets. What about the majority of goods that travel between Great Britain and Northern Ireland? Are they, the bulk of traffic, getting any help with an implementation period? Secondly, with regard to goods between GB and NI, for normal goods—non-supermarket goods—will there no longer be a requirement to obtain power of attorney, to have a customs-compliant commercial invoice and to make an entry into the TSS system? It is the technicalities and the bureaucracies that are causing business the greatest anxiety.

Lord True Portrait Lord True (Con)
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My Lords, on the specific technical points on power of attorney and so on, I will seek very specific responses, and I undertake to write to the noble Lord on that. Obviously, the three-month grace period is to allow authorised traders—such as super- markets, but other organisations will able to partake—and their suppliers to adapt to certification requirements. Alongside that, the Trader Support Service and the movement assistance scheme will provide support across the board.

Baroness Neville-Rolfe Portrait Baroness Neville-Rolfe (Con)
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My Lords, I welcome the limited progress outlined in the Statement on arrangements for the transport of goods, food and drink across the Irish Sea and, in some cases, to or from the Irish border. This was always the job of the joint committee: “pragmatic co-operation”, in my noble friend’s words. However, I would like to know whether some trial shipments by sea and land, and by small and large business—dummy runs, if you like—using the agreed systems, the paperwork, the labelling, the VAT and the tariffs have been attempted across both borders. If so, what were the results?

Lord True Portrait Lord True (Con)
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My Lords, so far as individual, specific, in-person dummy runs are concerned, I cannot categorically answer that, but I will find out if I can supply my noble friend with an answer. What I can assure her of is almost daily—literally daily—discussions and consideration at the highest level of the technical and specific impacts of the new regime, or regimes, that come in either on 1 January or in the course of next year. Indeed, the Government have conducted privately a number of specific exercises to test various contingencies.

Lord Berkeley Portrait Lord Berkeley (Lab) [V]
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My Lords, today the House of Lords EU Goods Sub-Committee has written to Michael Gove, seeking information on government preparedness which, from the evidence the committee received—and I have the honour to be a member of it—appears to be hopelessly late, ineffective and failing on many fronts. The letter lists multiple concerns: IT, communications, transport, and many others. But can I press the Minister today to answer just one small, but very important, question mentioned in the letter? Will he commit the Government to placing toilets at regular intervals adjacent to the queuing lanes on the M20? Everybody thinks they will be needed—deal or no deal.

Lord True Portrait Lord True (Con)
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My Lords, I do not carry ministerial responsibility for public conveniences—

None Portrait Noble Lords
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Yes, you do.

Lord True Portrait Lord True (Con)
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I do not carry ministerial responsibility for public conveniences, if I am allowed to complete the sentence. So far as the planning contingencies for what may or may not happen after 31 December are concerned, I assure the noble Lord that all eventualities are taken into consideration.

Lord Wigley Portrait Lord Wigley (PC) [V]
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My Lords, does the Prime Minister now realise that he cannot have his cake and eat it? But I limit myself to the Statement before us, which explicitly asserts that lamb may be sold from Montgomeryshire to Northern Ireland free of any tariff. If that meat is then sold on to the Irish Republic, will it be liable to the 76% tariff for fresh or chilled sheepmeat carcasses applicable in a no-deal scenario? At what point will that charge be levied, and by whom?

Lord True Portrait Lord True (Con)
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My Lords, the arrangements we are discussing today relate to the protocol and movements between GB and NI and, indeed, NI and GB. Obviously, a future tariff regime between the United Kingdom and the European Union depends on the outcome of free trade negotiations, which are still continuing.

Baroness Meyer Portrait Baroness Meyer (Con)
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My Lords, I welcome this agreement, which is a significant breakthrough. However, given that Northern Ireland will continue to follow EU customs rules after 31 December, can my noble friend the Minister confirm that in a case where the ECJ seeks to claim jurisdiction in Northern Ireland, Parliament will if necessary be able to assert sovereignty and authority and overrule the ECJ?

Lord True Portrait Lord True (Con)
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My Lords, Parliament voted in the withdrawal treaty Act to include a section asserting UK sovereignty. As for the specifics of any course of justice or jurisdiction, it will have to follow the appropriate course, in line with the protocol.

Lord Singh of Wimbledon Portrait Lord Singh of Wimbledon (CB) [V]
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My Lords, with the prospect of a deal with the EU fast receding, the Prime Minister’s visit to India next month has the potential for increased trade with the subcontinent. Can the Minister assure the House that any plans to increase food imports from India will respect the human rights of small farmers already reeling from new laws allowing big business to dictate commodity prices?

Lord True Portrait Lord True (Con)
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My Lords, I will not go into the specifics of negotiations with India, although I know the noble Lord has a particular interest and I respect and understand that. The objective of Her Majesty’s Government is to extend free trade agreements as widely as we may, because we believe free trade is one of the greatest sources of the uplifting of poverty and the human condition that has ever been devised. I welcome the recent announcement of a further free trade agreement, with Singapore.

Lord Whitty Portrait Lord Whitty (Lab) [V]
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My Lords, the problems for Northern Ireland business are not solely those relating to the ports. For example, on Tuesday we debated an SI amending the REACH arrangements for the use of chemicals. It is clear that businesses both operating in and supplying Northern Ireland will have to engage in a dual process of registration in both the European and British systems. The arrangements announced today do nothing to ameliorate that. What help will the Government give to users of chemicals in Northern Ireland, and indeed in other regimes that require a duality of approach and therefore administrative costs to Northern Irish businesses?

Lord True Portrait Lord True (Con)
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My Lords, the movement of chemicals brings particular complexities, as the noble Lord rightly points out, but the Government are committing an enormous amount of resource to the support of Northern Ireland businesses in terms of the movement of goods. That had already been announced. Indeed, I was criticised by the noble Baroness opposite for the scale of support the Government are giving to Northern Ireland and to business generally in confronting the new regime.

Lord Morrow Portrait Lord Morrow (DUP) [V]
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Under Article 8 of the Northern Ireland protocol, Northern Ireland will remain part of the EU VAT regime as well as being subject to the UK VAT rules. In practice, that will increase the amount of debt that businesses in Northern Ireland have to collect, which will in some cases lead to higher payments, with a knock-on effect for the consumer. For those in the second-hand car sales trade, the threat is particularly grave. Cars brought in from GB will now have VAT imposed on the full value rather than on the profits made on the sale. Can the Minister tell us why this disruption to the UK internal market was not prioritised in negotiations and why there is no mention of relief for affected businesses in his Statement? Can he outline what unilateral support the Government will provide to small and medium-sized businesses caught by these damaging rules?

Lord True Portrait Lord True (Con)
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My Lords, I repeat the very substantial announcements of financial support for Northern Ireland and Northern Ireland business that I referred to in earlier responses. On VAT, as part of implementing the VAT elements of the Northern Ireland protocol, the UK and the EU Commission have needed to agree how EU VAT rules will apply in the unique circumstances created in Northern Ireland, where traders will continue to be part of both the UK and the EU system. That agreement has been reached and is laid out in the Statement. Further guidance on these topics is being published for traders.

We have heard a concern raised about the application of EU second-hand margin schemes. Obviously, these changes will not affect stock bought in advance of 1 January, even if it is sold later, but we acknowledge that this is not a long-lasting solution to these issues. We aim to minimise disruption for Northern Ireland traders to the extent possible, and we continue to explore options.

Lord Russell of Liverpool Portrait The Deputy Speaker (Lord Russell of Liverpool) (CB)
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The noble Lord, Lord Balfe, has withdrawn, so I call the noble Lord, Lord Rooker.

Lord Rooker Portrait Lord Rooker (Lab) [V]
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I am grateful to the Minister. To be honest, listening to him, I can hear that he is in an incredibly difficult situation with things moving outside the Chamber. I will confine myself to a single point. Northern Ireland will be treated differently—as it always has been—on the customs union and the single market, while it is out of the common agricultural policy, as the Statement says. My question is simple: what is the position of the rapid alert system for food and feed? Some eight to 10 notifications are issued per day around the European Union. How does Northern Ireland figure in RASFF? Is it out or will it be part of RASFF after 31 December, irrespective of whether there is a deal? Food production per head of population in Northern Ireland is far more significant than in England or, indeed, in Scotland, so it is an absolutely crucial issue for Northern Ireland industries. Will they be part of RASFF or not?

Lord True Portrait Lord True (Con)
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My Lords, regrettably, I cannot give a specific answer to that question. I am certain that there is a specific answer and the weakness is in me. I assure the noble Lord that he will get an answer to that question.

Lord Moylan Portrait Lord Moylan (Con)
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My Lords, I am no longer trepidatious about the prospect of leaving the European Union with no deal. If that is the course recommended by the Prime Minister, I will heartily support him.

On this Statement, it is clear that Northern Ireland will remain in some ways subject to the European Union acquis and thus to the European Court of Justice. Will my noble friend agree to set out—no doubt in writing afterwards—a comprehensive and systematic statement of those parts of Northern Irish life that will remain subject to the European Union acquis so that we all have a firm grasp on it?

Lord True Portrait Lord True (Con)
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My Lords, I will undertake to do that, yes.

Lord Liddle Portrait Lord Liddle (Lab)
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My Lords, I regard this agreement in the joint committee as good progress on a difficult issue and I notice that, in his Statement yesterday, Michael Gove in fact paid tribute to the Vice-President of the European Commission on the pragmatic approach that the Commission had adopted. When it comes to the wider context of our relationship, does the Minister not agree that the Government are making things far worse by insisting on claiming that the European Union is trying to deny us of the sovereignty we have won as a result of Brexit? It is doing nothing of the sort. It is saying that you can have your sovereignty, but if you want to divert from the rules that we presently have, this represents unfair competition. If it represents unfair competition, you have to recognise that the special and privileged access to the single market that this trade deal will give you can be constrained. Why do the Government not simply recognise that fact, rather than harping on about sovereignty? We will have as much sovereignty to diverge as we want, but we cannot have our cake and eat it.

Lord True Portrait Lord True (Con)
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My Lords, the Government, as I said at the outset, have asked for nothing more than an agreement similar to the Canada free trade agreement and other agreements that the EU has struck with other nations. It is for the noble Lord to decide, if the EU wishes to refuse that request, whether that is reasonable or unreasonable.

Baroness McIntosh of Pickering Portrait Baroness McIntosh of Pickering (Con) [V]
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My Lords, I urge my noble friend and the Prime Minister to push the boat out, so to speak, to get an agreement. If the European Court of Justice is not to be the dispute resolution mechanism for the Northern Ireland protocol, what resolution mechanism does he have in mind?

Lord True Portrait Lord True (Con)
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My Lords, on the details of the mechanism proposed under the protocol, as well as the protocol statement that has been made, my noble friend will find that a number of draft decisions are also being laid before Parliament setting out in greater detail the arrangements agreed, which include provision for the settlement of disputes.

Baroness Fox of Buckley Portrait Baroness Fox of Buckley (Non-Afl)
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My Lords, we are assured in the Statement that the primacy of sovereignty is now beyond doubt. This sounds very positive to me, but I am not convinced that there are not worrying cracks in the Statement that sovereignty can seep through. I echo noble Lords who asked for more detail on EU intervention, but my main point is that, in debates here and in the other place, it has been suggested that that this agreement was pushed through in order to make a deal possible from the EU’s point of view. Can the noble Lord reassure us that he understands that those “red wall” voters who loaned their votes to the Government did not do so for a trade deal? 2016 was not about a trade deal. If it happens, fine, but it is about sovereignty, and sovereignty is not in trade or in technicalities, as discussed here. Does the noble Lord understand it, as some of us do, to be about democratic control at home and not just about trade? Maybe it is time to walk away in order to retain that democratic, sovereign control.

Lord True Portrait Lord True (Con)
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My Lords, I find myself between a rock and a hard place, because many of those who have asked questions today have been critical of the Prime Minister for stating what he has said about sovereignty and the need to protect our right to control our borders, to make our own laws and to control our fish. That is a statement that he and the Government have repeatedly made: we ask the EU to recognise and negotiate with us in good faith as an independent sovereign nation, which is what we wish to be. On the other hand, the protocol recognises that we are seeking to be pragmatic, and there are many benefits that your Lordships have not brought out: export declarations have been put in the bin; we have protected supermarkets; and businesses will be able to use VAT returns as they do today, without any burdensome process for splitting some of the issues. So there are pragmatic positives. However, I must tell the noble Baroness that the Prime Minister should be taken at his word on what he is saying.

Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes (Con) [V]
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My Lords, I welcome the Statement and, in particular, the straightforward and clear way in which it has been set out. I am conscious that time is limited, so will focus on just the transition period of up to 12 months being granted to industries to ensure the continuity of supply of medicines and veterinary medication. These are vital supplies and I am pleased that they have been addressed at the outset. However, a period of up to 12 months might not be enough. I suggest that a minimum of, ideally, 12 months, with a review after six months, would be better, and I ask for the Minister’s view on this.

Lord True Portrait Lord True (Con)
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My Lords, I will take advice on my noble friend’s suggestions of a six-month review. As my noble friend said, we have sought to secure agreement to a pragmatic approach not only on medicines but on other things in implementing the protocol, but it is particularly important in relation to medicines regulation. It will give industry the time and flexibility that it needs and ensure that medicines, including veterinary medicines, can continue to flow to Northern Ireland. Work is ongoing across government to prepare for the end of the transition period to which my noble friend referred, and we will publish further guidance for industry on moving medicines to Northern Ireland in the forthcoming period.

Baroness Ritchie of Downpatrick Portrait Baroness Ritchie of Downpatrick (Non-Afl) [V]
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My Lords, first, perhaps I may press the Minister further on where these European officials will be accommodated to do their work at the ports. Secondly, could the trader assistance scheme be extended to independent retailers, many of whom are small supermarket owners? Can further assistance be provided to retailers in respect of the export declarations? Some six months down the road, that could cause major problems for them, to the point where they might be out of business.

Lord True Portrait Lord True (Con)
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My Lords, I can certainly assure the noble Baroness on the question of smaller suppliers. I was trying to look it up quickly, but one has so little time; I think it is paragraph 33 of the protocol statement that refers to the fact that the Government will certainly not discriminate against smaller suppliers. So far as the office is concerned, I responded to that in my first answer. We have always been clear that it would not be acceptable for the EU to establish some kind of mini embassy in Northern Ireland, which is what some in the EU had suggested. The protocol provides for EU officials to be permitted to fulfil the roles allowed under the protocol. Of course, we will not bar the EU from renting office space or accommodation for its staff if it wishes—but there will be no EU flags flying above a brass-plated embassy entrance in Belfast.