Exiting the European Union (Consumer Protection)

Norman Lamb Excerpts

Monday 25th February 2019 Commons Chamber

[Dr Coffey]

That is right. These regulations will apply to the whole of the United Kingdom, with the exception of paragraph 1 of schedule 11, which makes amendments to existing domestic legislation regarding the disposal of polychlorinated biphenyls that, in the current regulations I referred to, extends only to England and Wales. This Government, and this country, have to be ready for the prospect of not being part of ECHA—the European Chemicals Agency—in future, and we therefore need to put in place the regulatory framework that means we will continue to have a safe chemicals industry in future.

[Norman Lamb (North Norfolk) (LD)]

The Minister will be aware, I am sure, of the concern that has been expressed by Rolls-Royce, and others, that the SI does not take account of all the scenarios. It mentions, in particular, an application for EU authorisation submitted by a European economic area entity for which a decision has not yet been made and on which a UK downstream user is dependent. Its concern is that post 29 March, in the event of a no-deal exit, UK companies could be left without a proper authorisation, putting many of them in an incredibly difficult position.

[Dr Coffey]

Actually, I am not aware of the reference to that by Rolls-Royce. Yes, we do need, in effect, to replicate the database, and that is what part of these regulations establishes. However, I want to make it clear to the House that CEFIC—the European Chemical Industry Council—and the Chemical Industries Association in the UK have made a joint statement to their members that the contracts that currently exist between consortiums should be amended so that information or data is available both for REACH and for UK REACH in future. None of the consortiums can force their members to do that, but I believe that it is in their best interests to make sure that the data and information required is available to both chemicals regulation systems.

As I said, the regulations apply to the whole of the United Kingdom. This Government and the devolved Administrations have worked together closely on these regulations and have agreed that a UK-wide REACH system will mean a coherent UK market backed by consistent policies and chemical management. The devolved Administrations have been involved in the drafting of the SI and have given their consent. That includes the Labour-run Welsh Government and the SNP-run Scottish Government. Indeed, this was also scrutinised by the Scottish Parliament, which also gave its consent.

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[Norman Lamb (North Norfolk) (LD)]

I associate myself with the concerns raised by the Chair of the Environmental Audit Committee, the hon. Member for Wakefield (Mary Creagh), by the Opposition spokesperson, the hon. Member for Workington (Sue Hayman), and by the Scottish National party spokesperson, the hon. Member for North Ayrshire and Arran (Patricia Gibson). For those who raised the specific point about the risks of no deal, the most serious concerns could be avoided by the Government simply ruling it out. That is why it is so important for Parliament to assert its authority this week, to prevent the disaster of leaving the EU with no deal.

I will confine my main remarks to a question raised by Rolls-Royce, which contacted me in my capacity as Chair of the Select Committee on Science and Technology. I challenged the Minister during her opening remarks, but I have to say that I was not convinced or satisfied with her response so I want to return to the issue. The concern is that, as it stands, the draft statutory instrument looks as if it is flawed, and that flaw could have very serious consequences for UK companies.

The UK REACH SI takes account of a number of scenarios, addressing, for example, the issue of an EU authorisation held by a UK entity on which a UK downstream user is dependent and, equally, that of an EU authorisation held by an EEA entity on which a UK downstream user is dependent. However, it has been put to me that the scenario that is not addressed—I really would like the Minister to deal with this specifically—concerns an application for EU authorisation submitted by an EEA entity for which a decision has not yet been made and on which a UK downstream user is dependent.

According to Rolls-Royce, approximately 10 applications for authorisations to use or supply particular chemicals are waiting for a decision by the European Commission, which, as its decision-making process proceeds, takes advice from the European Chemicals Agency and from member states. The likelihood is that the applications currently submitted will not be decided by 29 March. The applications have been submitted by an EEA entity, not by a UK company. However, UK companies downstream in the supply chain—the end users of those chemicals—are reliant on the EEA manufacturer and supplier holding a current authorisation. In the event of no deal, if the EEA entity manufacturing and supplying the chemical to a UK company has not received its authorisation from the EU by 29 March, the UK company that uses that chemical would immediately become non-compliant with the UK REACH SI.

I would be delighted if the Minister intervened on me to address this specific question: what will happen to those companies, including many small and medium-sized enterprises that probably have no idea about all this complexity, that will immediately become non-compliant after 29 March? The consequences for them are potentially disastrous. They would be acting unlawfully in using those chemicals in this country after 29 March. I would be delighted if the Minister reassured the House now. If she is not able to do so, then this statutory instrument has to be opposed because it will have devastating consequences, quite apart from the other concerns that have been expressed in this debate. I urge the Minister, who remains silent, to take this away, rethink it and ensure that it addresses those concerns properly and fully. Without doing so, there will be very serious consequences.

[Mary Creagh]

I, too, have been contacted by Rolls-Royce and Make UK, the former Engineering Employers’ Federation, which says that the chemicals affected—these in-flight chemicals, if you like—are a range of chromates using coatings, sealings, paints, primers and touch-up preparation, including chromium trioxide, which is used in the chrome plating industry and is significant for the automotive supply chain. It says that limiting the use of these substances would affect a wide range of component part manufacturers, processing houses, and maintenance and repair facilities, as well as other equipment manufacturers. This is exactly what the Environmental Audit Committee warned about two years ago: market freeze, where we simply freeze our automotive supply chains. Does the right hon. Gentleman agree that in a heavily regulated industry such as aerospace people cannot just switch suppliers from one day to the next?

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[Norman Lamb]

I do agree. One is left reaching the inevitable conclusion that this is chaotic. The party in government prides itself as being the party of business, yet it is putting very many companies in this country in an invidious—indeed, impossible—position unless that is properly clarified.

It is really important that this does not proceed. I know these issues will be raised in the House of Lords, but I hope that this House defeats these regulations this evening. I again urge the Government to withdraw and think again.