Exiting the European Union (Consumer Protection)

Patricia Gibson Excerpts

Monday 25th February 2019 Commons Chamber

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

This statutory instrument seeks to ensure a high level of protection for human health and the environment, including the promotion of alternative methods for assessing the hazards of substances, as well as the free circulation of substances, while enhancing competitiveness and innovation. Of course, it is necessary that the European Union regulation concerning the registration, evaluation, authorisation and restriction of chemicals, which took more than 14 years to develop, continues to work effectively in the UK. This statutory instrument will give the UK an independent capability to control the manufacture and import of chemicals into the UK and to understand the hazards and manage the risks connected to their manufacture and use.

However, as we have heard today, this is not a straightforward undertaking. Under the UK proposals, all transferring UK registrants need to submit registration data to the UK agency for a two-stage process potentially lasting up to two years. The Minister saying, 30-odd days from the Brexit date with no deal looming large, that staff are being recruited and that they are waiting to see if IT systems can go live is not particularly reassuring, given the complexity of this undertaking.

All of this underlines that the regulation and supply of chemicals is yet another of the long list of areas of huge complexity in the Brexit process, and we can see that, prior to Brexit, those writing things on the sides of buses gave no thought to such complexities. As the Minister has pointed out, chemicals are woven into the very fabric of our daily lives. These last-minute statutory instruments are a desperate attempt to cover up the lack of forethought given to the complexities of Brexit. If the Prime Minister could assure us that she would simply not countenance a no-deal situation due to the damage it would cause across the UK, we would not have last-minute scrambling to deal with matters of such profound importance as those covered by this statutory instrument.

A report released on 7 February by the House of Lords Secondary Legislation Scrutiny Committee raised significant concerns about the draft regulations. It found insufficient information on the expected impact, with no financial analysis of the potential costs to the chemicals industry, particularly in relation to the cost of obtaining data needed to register a chemical with UK REACH and the prospect of initial compliance possibly doubling. The Committee also raised concerns about the ability of UK companies to maintain access to the EU market unless they move their registrations to an EU member state.

It recently emerged that the threat of a no-deal Brexit has already prompted more than 50 chemicals companies to move regulatory approvals from the UK to the EU. The companies, which have operations in the UK, have applied to use EU regulators for critical authorisations to protect their ability to do business legally. Their current authorisations would become worthless if there were no transition arrangement following 29 March—the current Brexit date—according to data provided to The Guardian by the European Commission. That matters because this industry is worth billions of pounds.

Chemicals registration is one of the main areas in which the National Audit Office has found that the Department for Environment, Food and Rural Affairs is wholly unprepared, and there is a risk of disruption to the UK’s chemical manufacturing industry that DEFRA simply cannot address on its own. A negotiated settlement would permit UK chemical manufacturers to export their products to the EU, but without a deal that will not be possible as the registration of products with the EU will cease to be recognised by the EU. In a no-deal scenario, UK chemical manufacturers would no longer be able to export their products to other member states. Recovering market access would be a lengthy process, and it cannot even be started until the UK leaves the EU.

Yet again, we are seeing more complex Brexit aspects for industry that this Government are seeking to scramble to deal with at the last moment. It honestly looks to me as though the Government are acting like an errant pupil who, having forgotten to do their homework, is trying to complete it on the bus on the way to school. This is not good enough. We need a proper extension of article 50 to give this House the proper time to deal with the chaos into which we have been plunged by those who have taken us to the abyss with Brexit, ignoring electoral law to buy the referendum result they wanted and now, having fled the scene, leaving others to deal with the horror left behind. That is why we need, at the very least, an extension of article 50, instead of this House being threatened with a terrible deal or no deal at all.

The matter before us is important and extremely complex, and it should not be dealt with in a short debate on a statutory instrument like some kind of footnote. Yet sadly, this has become the new normal, as a collective madness seems to have gripped too many Members of this House. While I understand that what the Government are doing today is necessary, this is a most unsatisfactory process.

--- Later in debate ---

[Dr Coffey]

I thank all right hon. and hon. Members who have contributed to this debate. I assure the House that the Government remain committed to supporting all the aims of REACH: to ensure a continuing high level of protection of human health and the environment; to promote alternative, non-animal methods for assessing chemical hazards; and to promote the free circulation of chemicals and enhance competitiveness and innovation.

By putting the regulations in place, we will make sure that we can operate a UK REACH regime after leaving the European Union. We are working closely with the HSE and the EA, as well as other regulators, to prepare for that national regime so that the change is as smooth as possible. We know the functions that are needed. I hope that in my opening remarks, I was able to convey the information that we will be providing the resources to fund the staff that are needed. I remind the House that the HSE will be building on the expertise that it already has from acting as the UK competent authority in the EU system and that it will be recruiting more staff to reflect its new and expanded role, as indeed, is the EA.

I do not agree that the arrangements that the REACH SI provides for on scientific advice are in any way weak. The UK agency must publish its scientific opinions, and when forming those opinions on authorisations and restrictions, the HSE must commission scientific knowledge and advice from suitably qualified or experienced persons who are independent of the agency. In a particular case, for example, where ECHA had already published robust evidence, the HSE must publish its justification for deciding not to take further advice. I assure the House that the HSE is not limited to getting its scientific advice from the UK, or indeed, even the EU.

The HSE must consult on and publish a statement about how it will comply with all these duties. That must happen within three months of exit, so we intend to have arrangements in place in UK REACH to allow stakeholders to observe discussions and considerations where this scientific advice is provided.

[Patricia Gibson]

Will the Minister give way?

[Mary Creagh]

Will the Minister give way?

[Dr Coffey]

I will not be giving way in my closing remarks—[Interruption.] Well, I am trying to answer the questions that I have already been asked. On what industry needs to know to do, we have had extensive discussions with a number of businesses and trade associations. We have launched a business readiness campaign targeting downstream users, in particular, and we continue to engage with the industry in that regard.

A question was raised about intellectual property. It is fair to say that the intellectual property remains with the company that submits it, but if companies already own the data, they can of course submit that to UK REACH. If not, they will need to arrange access and, as I pointed out, some are already starting to do so. Some—I mentioned CEFIC and the CIA in the UK—have encouraged their members with consortium registrations to make sure that they make that information readily available. Companies can, of course, employ ORs—only representatives—to hold a registration in the EU, just as they may do for access to other markets around the world, while maintaining their UK registration.

[Patricia Gibson]

Will the Minister give way?

[Dr Coffey]

I will not be giving way, as I have already made clear to the House. I am trying to answer the questions that I have already been provided with. On the other elements of registration, I am conscious that some companies have started to set up relationships with not only ORs, but other companies and to establish offices in the EU. Ireland is a particular favourite.

I want to clarify elements about animal testing—I know that this matters to the House. Within the EU—currently within ECHA—HSE and the EA have been at the forefront of pushing for alternatives to animal testing, and that will continue. UK REACH will continue to follow the “last resort” principle when it comes to possible animal testing. That works alongside other REACH drivers to reduce the amount of testing, for example, where industry must get the regulator’s agreement before carrying out a test. We will continue to work closely with the OECD to develop new alternatives so that we can understand chemical hazards without testing them on animals. We are determined that there should be no need for any additional animal testing for a chemical that has already been registered, unless it is subject to further evaluation that shows that the registration dossier is inadequate or that there are still concerns about the hazards and risks of the chemical.

The right hon. Member for North Norfolk (Norman Lamb) asked particularly about Rolls-Royce and products that have not yet been authorised. The point is that the EU has not authorised those chemicals for use. Therefore, we cannot say that they will be authorised by the time we leave on 29 March and we will not have the position to allow for future EU decisions. HSE will work with companies to help them to get into compliance as soon as possible.

The hon. Member for Wakefield (Mary Creagh) referred particularly to products that include chromium. I can categorically say that chromium is a clear carcinogen and it really matters that we have to keep strong controls on how it is used. That is why it concerns me that the Opposition are considering voting against this SI. I pointed out earlier that the Welsh Labour Government have endorsed this SI and want it to pass today. Without these regulations we would not have a chemical regulatory regime that was effective in maintaining human health, and the environment would be put at risk, which makes me even more astonished that the Green party would also contemplate that.

We need to make sure that our regulators have the tools to understand the hazards of the chemicals that we use, and without this SI we would not have the information available on how to mitigate those risks. I invite the House to approve the regulations.

Question put.