Draft Customs Safety and Security Procedures (EU Exit) Regulations 2020 Debate

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Department: HM Treasury
Pat McFadden Portrait Mr Pat McFadden (Wolverhampton South East) (Lab)
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It is a pleasure to serve under your chairmanship, Ms Nokes.

The Minister, for whom I have great respect, as he knows, describes these regulations as technical, but I must differ from him. I think they are more than technical. They are very significant and a graphic example and symbol of the mess the Government have got themselves into as we approach the end of the transition period. I say that because through these regulations the Government are acknowledging that they cannot guarantee that the current safety and security requirements on exports can continue to be met without causing disruption to border security. They have put themselves in the invidious position of having to introduce regulations that compromise our security to guarantee the free flow of goods at the border.

The regulations respond to that dilemma by granting HMRC the power to waive the need for these pre-departure declarations, or to modify the time limit for their submission. In tabling these regulations, the Government are openly acknowledging that they are taking powers that, if used, would water down the safety and security requirements we have in place for exports through our ports. The explanatory memorandum that accompanies the regulations —these things are normally pretty dry explanations of the technicalities involved—is clear about the possibilities. Paragraph 7.4 states:

“There may be risks associated with using these powers…for example, to border security.”

There you have it. The regulations are not technical. That is not an allegation from me. It is not an allegation that the Opposition have made. It is a quote from the Government’s own explanation of what they are doing.

What exactly are these risks that the Government have identified? What exactly are the risks that the regulations could enhance? Why have the Government found themselves proposing a policy with such potential consequences? What a trade-off to put the country in to, really. To avoid disruption to trade, we have to take measures that potentially put our border security at risk. I repeat that that is not an allegation from me; it is the Government’s own explanation, before the Committee right now, of what they are doing with these regulations.

At the moment, as the Minister said, pre-departure declarations enable the UK to meet international standards for safety and security relating to the movement of goods, following the World Customs Organisation’s SAFE framework. The organisation began in 1952 as the Customs Cooperation Council and the UK was a founding member, yet today’s regulations would hinder our country’s ability to support the SAFE framework. We are literally opting out, on a temporary basis, of something called SAFE. That is what the Government are doing.

What does it say about the Government’s management of this process that in order to help business avoid the impact of disruption to exports at the border, they are taking powers to risk our border security in this way? Why should the price of free-flowing trade be the introduction of a smugglers’ charter that increases risks to us all? The regulations say that this will only be the case for up to six months, ending on 1 July next year, but can the Minister guarantee that? Can he guarantee that he will not be back here or that the Government will not extend the waiver beyond the first six months of next year in some other way? What if there is ongoing friction at ports? Will Ministers continue to waive the requirements for these declarations in the future?

What discussions has the Minister or the Treasury had with the Home Office about this in order to minimise the impact on border security? He mentioned weapons, I believe. Will he clarify what he meant when he mentioned weapons and how the regulations will affect them?

The volume of pre-departure declarations is likely to be greater after the end of the transition period because they will need to be made for goods exported to the EU as well as the rest of the world. What extra capacity is being put in place at HMRC from 1 January to process this uplift in pre-departure declarations, thereby helping to reduce the likelihood of the security and safety requirements creating border disruption?

It is often said in this House that keeping our country safe and secure is the first duty of any Government. It is often said because it is true. It is an indictment of the party that used to call itself the party of law and order that in government it has laid regulations that Ministers openly admit will compromise our border security. What an indictment of the handling of this situation. The powers, if exercised, would have that effect. That is the admission that the Government made today. I therefore have to disagree with the Minister’s view that the regulations are just technical measures. They are a graphic example of the mess that the Government have found themselves in.

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Jesse Norman Portrait Jesse Norman
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I thank the Opposition spokesmen for their comments. The right hon. Member for Wolverhampton South East says this is not technical. Of course, by “technical” I do not mean that the law may not have some impact. Of course, this is a power that we do not anticipate necessarily having to use; it is a tool that the Government think is advisable to be used in some very constrained and particular circumstances in the event of unanticipated disruption. We are going through a major change in our trading arrangements. It is sensible to make contingency arrangements.

The right hon. Gentleman may have forgotten that when it comes to safety and security declarations, data is not gathered by the UK in regard to trade with the EU, because we have been part of the EU internal customs and internal market. From that point of view, nothing changes. He and others have asked whether there will be some great compromise to security. We do not anticipate a great compromise to security.

Pat McFadden Portrait Mr McFadden
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The Minister has just said that nothing changes in terms of relations with the EU because we are part of the single market. From 1 January, we will not be part of the single market so quite a lot changes.

Jesse Norman Portrait Jesse Norman
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No, what I have said is that, since we do not gather data at the moment, what we are doing is continuing a system that already exists for a period of time—or we would be if we put in place these powers—and that does not represent a change from what we do at the moment as we do not gather the data at present. As I have already said, our trading arrangements of course do significantly change.

The right hon. Gentleman asked about the Home Office, and I can reassure him that of course these measures are developed in consultation and consideration and discussion with the Home Office. The SNP spokesman, the hon. Member for Paisley and Renfrewshire North, seemed to be having a few operational issues with his own handwriting—I am not quite sure if that is true—so he is well placed to speak on operational issues. Let me just say one thing: as far as I can tell, the numbers that he quoted were from external organisations, the NAO and so on. It is for them to comment on whether the numbers they come up with should be updated. From the Government’s standpoint, the numbers are as they have been published. With that in mind, I invite the Committee to support the motion.

Pat McFadden Portrait Mr McFadden
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The Minister has not answered a couple of questions that I asked. One was whether he can guarantee that there will not be an extension of these provisions beyond the first six months of next year, and the other was the question of weapons that he mentioned in his opening remarks. Can he explain exactly how these regulations will affect the export of weapons?

Jesse Norman Portrait Jesse Norman
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Sure. What I was saying, as the right hon. Gentleman will recall, as regards duration is that they last for six months. Of course, to seek a guarantee in such circumstances is a classic political request. No guarantees can be given, but we certainly do not anticipate extending the regulations. They are specifically designed to be a contingency tool to be used in specific circumstances, for specific purposes, and for a time-limited period.

In relation to weapons, all I said was that the existing arrangements had in part the goal of monitoring the transfer of weapons. As I have said, data gathering does not at present exist on the safety and security declarations, and that will not change as a matter of fact for a period of time, but of course Border Force and other agencies that are concerned with the flow of goods across the border continue to be engaged, and from that perspective we think that the border remains well defended and well supported. Of course, we have made significant infrastructure investments in order to make sure that that is the case.

Question put and agreed to.

11.50 am

Committee rose.