Product Regulation and Metrology Bill [Lords] Debate

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Department: Department for Business and Trade
Michael Wheeler Portrait Michael Wheeler
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I am grateful to my hon. Friend for that intervention. We are dealing with a regulatory black hole that was left behind, and the absence of a framework is letting down the consumers and people of this country—[Interruption.] I was about to say that I am sure we would all agree on that, but that is potentially a stretch in this debate and in this Chamber.

I hope that we do agree that consumers should be able to buy products online without worrying about their safety, and that product standards should not be bypassed or compromised on any platform, digital or otherwise. However, research by the Office for Product Safety and Standards found that 81%—eight in 10—of products for sale on online marketplaces between 2021 and 2022 failed to meet safety standards, which underlines the need for the Bill. We cannot allow companies to circumvent essential safety standards, presenting a public health risk just because they sell their products online.

However, the Bill is not just about safety, critical though that is; it is also about ensuring fairness. We simply cannot continue with a product safety regime that enables online marketplaces to undercut bricks-and-mortar retailers, or that allows rogue traders to out-compete responsible retailers with unsafe, low-quality products. That is unfair on consumers, reputable manufacturers and the small high street businesses that must compete with the online giants. With online sales already making up over a quarter of total retail sales in 2023, we must level that playing field now, providing our high streets with a long overdue boost to their competitiveness.

Richard Holden Portrait Mr Richard Holden (Basildon and Billericay) (Con)
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The hon. Gentleman makes a fair point about product regulation, but is the issue that he is highlighting not actually about enforcement? I have no issue with legislating for product regulation safety standards, but they already exist. In fact, he says that there are products that do not meet the safety standards, so we know that those standards exist. The issue that he highlights is purely around enforcement, which this Bill does nothing to address.

Michael Wheeler Portrait Michael Wheeler
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I disagree that the issue is “purely” around enforcement. Obviously, there are elements of enforcement, but separating out one part of a package—a regulatory framework that will future-proof us from other issues—is not a coherent argument.

To conclude, it is vital that we create a product safety, regulatory and metrology framework that protects consumers, encourages fair competition and meets the changing picture internationally. This Bill delivers that framework, and I look forward to supporting it further in this House.

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Richard Holden Portrait Mr Holden
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Will the hon. Gentleman give way?

Clive Jones Portrait Clive Jones
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Can I just carry on a bit? Thanks.

Online marketplaces are rapidly expanding in number and popularity, competing with high streets across the nation, but unfortunately, there is no level playing field on which those two competitors can battle it out for consumers’ cash. That is what the Bill should be addressing, because our high streets and our small businesses must contend with regulations that online marketplaces are not equally liable to. That is not a level playing field. For example, unsafe products are flooding online marketplaces. A study by Which? revealed that 90% of toys purchased from Amazon, eBay, AliExpress and Temu were illegal due to choking and strangulation hazards. Another study from the British Toy and Hobby Association found that 85% of toys from online marketplaces were unsafe, with 8% also illegal due to missing warnings. Do we want that situation to continue?

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Richard Holden Portrait Mr Holden
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Is my hon. Friend aware of any other piece of legislation on which the DPRRC in the other place has reported three times with exactly the same conclusions?

Joy Morrissey Portrait Joy Morrissey
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My hon. Friend makes an excellent point. I am not aware of any other legislation that has received the same recommendation three times. That represents a substantial warning.

The Bill, either deliberately or unintentionally, will lead to realignment with the EU and once again leave our country beholden to others’ decisions on regulatory standards. It will hamper our businesses in this fast-changing world, making them less agile and less competitive and making us poorer as a nation. It gives Ministers too much power—a fact that in this House should always be pause for thought, no matter who governs. I urge the Government to think again.

Stella Creasy Portrait Ms Stella Creasy (Walthamstow) (Lab/Co-op)
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It is a pleasure to take part in this debate. I hope to offer a course correction from the Opposition’s attempts to fight many things today, not least the concept of geography and what is in the interests of British businesses. In this debate, we are watching the last gasps of the Brexit delusions that have fallen on hard contact with the paperwork reality. That is what this piece of legislation is about; it is about making it easier for British businesses who have been harmed by the previous Government’s approach to their basic needs. This is not about free trade. What came about as a result of Brexit was not free trade, but mountains and mountains of paperwork.

I want to focus on that in my speech, but I cannot let go of what the hon. Member for Beaconsfield (Joy Morrissey) said. She was, as she says, a Whip on the Retained EU Law (Revocation and Reform) Act 2023—my goodness me, I welcome a sinner that repenteth. In that Act, the Government were going to rip up more than 4,000 pieces of legislation overnight without any parliamentary scrutiny, simply because they had the word “Europe” in them. That included things like airline regulations, because of course what we needed were our own separate regulations so that a plane would have to take a different course in mid-air. That was the Brexit benefit.

Under the previous Government’s watch, more than 2,000 statutory instruments were laid before the House as a direct result of retained EU law. I welcome opposition parties’ commitment to parliamentary scrutiny, but I simply say that some of us on that Bill Committee tried to offer arguments about the importance of parliamentary involvement in such decisions, and they fell on deaf ears. I will come on to that.

Now that Opposition Members have suddenly discovered that statutory instruments might not always be the best way to look at such things, I hope they will be able to focus on what really matters here, because British business needs us to do that. British business needs us to clear up the mess created by the previous Administration and their approach to Brexit. That is what this legislation does. It is common-sense politics.

Richard Holden Portrait Mr Holden
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Will the hon. Lady give way?

Stella Creasy Portrait Ms Creasy
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I will, if the right hon. Gentleman can tell me which of those 2,361 statutory instruments he now regrets forcing through this House.

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Richard Holden Portrait Mr Holden
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The hon. Lady is making an interesting point. The key point with that carry-over of EU law is that all the regulations had already been debated and had already gone through Parliament. All we were doing was replacing like with like. With this Bill, the Government are introducing huge Henry VIII powers to create brand-new legislation, perhaps around production regulation, but on who knows what else? Who knows what impact it will have, and on which countries? That is the difference. We are removing parliamentary scrutiny, rather than just carrying over old EU laws into current UK law.

Stella Creasy Portrait Ms Creasy
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There are so many things to unpack there, not least the right hon. Gentleman’s recognition that our previous regulations as part of the European Union were perhaps not that bad. With rules on bicycle safety, for example, perhaps it was pretty sensible to say that if something was safe in the UK, our colleagues in Europe might also be looking at it and we could share the burden of working out good regulation. That is not what happened with the retained EU law Act or with divergence, and it does sound like he needs to look at divergence. Thankfully, I have some statistics for him—I know he will be delighted to hear them.

Before we move on, let me just say this. Opposition Members have not spoken for British business today, although I accept that the Liberal Democrat spokesman, the hon. Member for Wokingham (Clive Jones), did try, and I recognise his expertise in toy manufacturing. He will recognise that we are talking about thousands of British businesses that are affected by regulations. What rules will those businesses have to follow to be able to sell in a market that makes their business sustainable? Some 12% of businesses in this country will be affected by this legislation, not because there are new rules, but because if we start to diverge from existing regulations, they will face a choice. Do they continue to follow European legislation so that they can sell into a larger market, or do they try to follow UK legislation, EU legislation and maybe Japanese legislation as well, with all the paperwork that comes with that?