Marking of Retail Goods Regulations 2025 Debate
Full Debate: Read Full DebateLord Weir of Ballyholme
Main Page: Lord Weir of Ballyholme (Democratic Unionist Party - Life peer)Department Debates - View all Lord Weir of Ballyholme's debates with the Department for Environment, Food and Rural Affairs
(2 days ago)
Lords ChamberMy Lords, I apologise to the Minister in advance that I will be inflicting a little bit more pain on her. But where else would any of us prefer to be on a Monday night other than in here debating issues such as this?
These regulations appear to be a sticking plaster over the wounds inflicted on the internal market by both the protocol and the Windsor Framework—wounds self-inflicted by the Government. Taken at face value, and the way they are presented by the Government, they are an attempt to slightly ameliorate the level of disruption to trade. I said taken at face value, but a lot of us have come to realise that things cannot necessarily be taken at face value.
At the heart of this, as has been highlighted, the current arrangements and, indeed, those coming into place, purport to deal with what is, in effect, a fictitious issue, by imposing real harm. Frankly, the need to protect the EU single market, as highlighted by the noble Baroness, Lady Hoey, and the noble Lords, Lord Empey, Lord Dodds and Lord McCrea, creates a level of fiction. The reality is that it is unlikely that a special unit of the Garda Síochána will be set up to deal with the modern-day Irish Bonnie and Clydes who are smuggling their beef lasagne across the border to Dundalk, Clones or Donegal. So, we are not really dealing with a real issue of that nature.
On the flip side of the coin, as is highlighted by the FSB, the current arrangements are, in reality, leading to a very damaging impact on the internal market. Some 34% of firms surveyed have indicated that they have already diverged from trade. What is perhaps even more worrying is that, in the same survey, some 41% of firms looking ahead were more pessimistic and, indeed, quite worried about what is coming, and one of the major issues put forward is labelling.
With the best will in the world, noble Lords would anticipate these sorts of criticisms from these Benches and from the noble Baroness, Lady Hoey, opposite. But the FSB is not an ideological opponent of either the Government, the EU or the protocol; it is highlighting the very real concerns.
It is also the case that there are a number of flaws within this legislation. First, as has been indicated, the promise made by the previous Government, supported by the then Opposition, was that, if labelling were to happen, it would be done on a full UK-wide basis and everyone would be treated equally. Yet it is now clear that we are in the position that what is imposed in Northern Ireland will at best have some levels of exceptions where GB can be brought into it—it is not universal.
Secondly, on the circumstances in which government will intervene to compel this, there seems to be quite a lot of wiggle room within the regulations, to the extent that on taking their consultation and looking at various bodies, the Government could very easily come to the conclusion that particular circumstances were not convenient to impose any form of labelling beyond the shores of Northern Ireland.
Thirdly, and again it would be interesting if the Minister could respond to this point, the regulations talk about the impact of the removal of retail goods, or the threat of that, from Northern Ireland. But they do not specifically say whether that removal is simply by way of specific GB goods or more widely.
For example, if you take a consumer in Northern Ireland and they are getting fairly similar goods that are being produced in, say, the Irish Republic, the Czech Republic or France, that would seem, on the face of it, to satisfy the requirement that the Northern Ireland consumer is getting fairly similar goods, but that is creating a level of further divergence within the UK market. It is damaging GB firms. I would be interested in the Government’s interpretation of that.
Fourthly, within the regulations, there is a clear exemption for small firms in Great Britain that employ fewer than 50 people. As a consumer who has sometimes had difficulties in getting goods, it is not what is on supermarket shelves, as there are alternatives and we are not faced with great empty shelves, but it is often when you are trying to order something of which there is a very occasional supply to Northern Ireland from a small firm. That will not solve those particular problems.
Having highlighted the problems, we need to look, I suppose very briefly, at solutions. It is clear that we need more fundamental solutions than a sticking-plaster approach and that the long-term solution should be mutual enforcement, as has been highlighted. That would protect the EU single market and the UK internal market. In the short term, while we are awaiting that, the Government should outline what steps they are taking in terms of their engagement with the EU to fast-track solutions. We are told that because of the reset there is a much better relationship with Europe. What actions are the Government taking to roll back bureaucracy instead of putting forward regulations which extend labelling? What actions are being taken to reduce or remove the need for labelling?
For instance, a key part of the reset agreement has been the acceptance of an SPS deal in which there will be dynamic alignment and we will be put in a situation on food and SPS products in which there is no distinction between goods produced in any part of the United Kingdom and the rest of the EU. The logic of that would be that, whenever that is implemented, there would be no need for labelling on those goods. Yet we seem to be moving from a position in which currently there is no need for labelling on some goods; that is then going to be extended; and then, if the Government get their way, it is going to be removed again. That seems to be a logical nonsense. The reality is that, at the very least, the Government should be working with the EU to say, quite frankly, that it is an illogical pathway. At the very least, let us prevent any further extension of that.
If it is good enough for small firms in Great Britain not to require labelling because of the particular owner’s burden, and I can understand that, that similarly should be applied to the situation as regards Northern Ireland. We should see a blanket removal of labelling across the board. If there is good will with the EU and the Government are prepared to take those steps, if there is a lack of labels on small and medium-sized enterprises’ products from whatever part of the United Kingdom, that is not going to damage, even in theory, the EU single market. Those are the sorts of steps that the Government should be taking in the short term.
As with everything, they will be judged, and our experience of this is not good. We will see what is promised by the Government. We will see what is there directly in the legislation. The real test will be what happens in practice. To believe that this will be a significant step forward would be a triumph of hope over experience, and unfortunately to date in Northern Ireland we have had too much experience to generate a great deal of hope.
My Lords, I first want to congratulate the Minister on her frankness and honesty; we do not always get that from Ministers or government. She has made it quite clear that they going to do Europe’s bidding. They will not be listening to what the politicians of Northern Ireland or anyone else says. It will be about what Europe says: they will be listening. The thought just shot through my brain that this is probably how colonies were treated. That seems to be exactly what the Government are lining us up for, if they have not already got us there. So, I say to the Minister: for your spectacular honesty, I commend you here this evening. I do not think that any of the other speakers have offered that, which was remiss of them, I might add.