Product Regulation and Metrology Bill [Lords]

Debate between Richard Holden and Stella Creasy
Richard Holden Portrait Mr Holden
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As the hon. Lady appreciates, we come at this Bill from different angles. We have tabled some amendments, including amendment 13, which would require the Secretary of State to come to this House and make a statement. As the hon. Lady says, small businesses are seeing regulatory change happen so swiftly that they cannot keep up. One issue with the Bill is the fact that it will be possible for regulations to be changed even more quickly, at the stroke of a Minister’s pen. That could lead to small and medium-sized enterprises being disadvantaged compared with very large businesses, which can align much more quickly.

Stella Creasy Portrait Ms Creasy
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The right hon. Member had the luxury and benefit of being on the Public Bill Committee. I did not have the ability to ask the questions that he is asking, but I look at the evidence under the previous Administration. When there was the ability to diverge, what actually happened? The reality is that very little divergence happened, because it is not in our national interest. We can, and do, fight many things in this place —indeed, in British politics—but geography really is not one of the things that it is worth our time arguing about.

Given that we do five times more trade with our European Union neighbours than with America, China and India put together, it obviously makes sense to have a regulatory regime that makes that trade as friction-free as possible, which is where this piece of legislation comes in. Indeed, under the previous Government, there were only five cases of active divergence—the sort of changes that the right hon. Member for Basildon and Billericay (Mr Holden) is worried about—that might affect small businesses. That is with good reason, because if we have a sensible regulatory regime, it makes sense to be aligned. The Prime Minister has talked about that, and it is also what businesses want. The Engineering and Machinery Alliance, which represents over 1,600 firms from 11 different trade associations, puts it very simply. It says that our businesses

“are trading in European markets and are part of European value chains. They have European customers and suppliers. For companies operating in highly specialised, high value markets, the UK is unlikely to provide the mass needed to develop and successfully market their products. They need to be international and that means working to international standards—the EU’s being, almost always, the most appropriate.”

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Stella Creasy Portrait Ms Creasy
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The hon. Member can take it as yes, but he will know that I am sticking very closely to the amendments, because I want to come on to how we make such decisions.

First, though, we need to be clear that this legislation will affect the lives of our constituents. Let me give one example. I am a child of the 1980s; I remember the Glo Worm. Thank you, Madam Deputy Speaker, for looking surprised—I hope it is a look of surprise, but perhaps you are remembering the Glo Worm yourself. The point is that the Glo Worm turned out to be quite a dangerous toy because of the chemicals it contained. Regulations help to keep us safe, so when we are talking about sharing regulatory regimes and being able to promote markets, there is a good reason why we are seeking high standards. I hope that everyone will hold the Glo Worm as an example—it has now been reissued without those chemicals in it, thank goodness, so that children of the 2020s can enjoy those squidgy toys.

What matters is how we make decisions about such regulations, and the debate on this Bill heralds a bigger conversation that we need to have in Parliament about how we can be involved in those decisions now that we are not part of the European Union. Obviously, agrifood and sanitary and phytosanitary goods are not included in the Bill, but the Government have now committed to dynamic alignment with EU rules for a very common-sense reason. As the Prime Minister has said,

“we are currently aligned in our standards, but we do not get the benefit of that. We want to continue to have high standards; that is what the British public want”.—[Official Report, 20 May 2025; Vol. 767, c. 894.]

I hope that is the ethos we take in how we use the powers in this Bill. It is certainly what businesses would like us to do.

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 happily give way, although I promised Madam Deputy Speaker that I was about to turn to new clause 15.

Richard Holden Portrait Mr Holden
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The hon. Lady makes an important point, but on the broader issue of dynamic alignment, are there not some issues—for example, animal welfare, which is not covered by the Bill—on which, if we want to maintain higher standards, we will want to go further than our EU allies, not dynamically align with them?

Stella Creasy Portrait Ms Creasy
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The right hon. Member seems to believe the regulatory regimes we had were a ceiling rather than a floor. There was nothing to prevent us from having higher standards; they were about maintaining standards. He and I are on different sides of the debate about nutrient neutrality, but the concern was about the high standard when it came to protecting our rivers and seas from algae that was at risk under the previous Government.

The right hon. Member is right, though, to raise the question of how we maintain standards, which is where new clause 15 comes in. It is about the concept of how we take back control—which, frankly, was at the heart of all the Brexit debates. I am sure the hon. and learned Member for North Antrim (Jim Allister) is surprised that I have become the stopped clock for him: this is one point in his political career that I may be right.

There is a challenge here that we need to address, and those of us who came to the Brexit debate from different directions can all agree that it is good and healthy to have such a discussion. I also want to say, as a parliamentarian, that the Government should be directed to do something that has consequences for Parliament as well. That is where new clause 15 is coming from. It is a probing amendment to raise a more general concern about how we make good legislation.

At the beginning of this Parliament, the Government decided not to re-establish the European Scrutiny Committee, which had existed since 1973, to scrutinise European documents that affected UK policy or law. In the debate, the Leader of the House said that

“the principal job of the Committee—to examine the documents produced by the EU institutions that the Government would automatically take on board—is no longer required.”—[Official Report, 30 July 2024; Vol. 752, c. 1272.]

The challenge for many of us is that this Bill, and indeed the deal we now have with the European Union, means that that test is being set again. There is now a need for some form of dedicated scrutiny mechanism, with specialist expert staff to consider relevant EU laws and rules. That is not confined to the issues arising from this Bill; it is a broader point about what is happening now.

The ESC worked primarily by examining proposals from the European Commission and giving an opinion on their implications and when they would affect

“matters of principle, policy or law in the UK”.

I recognise that since that Committee was abolished, some work on these issues has been done by other Committees, and that is welcome. However, with this Bill and the reset deal, we are moving to a volume of European law and regulation with such technical complexity that we in this place would be best served by having that specialist expertise. Let’s be honest: many of these things are beyond our individual pay grades and we will want some expert assistance.

Put simply, if PRaM is passed in its current form, where the Government choose to recognise EU product regulations there will again be documents produced by EU institutions that the Government would automatically take on board. The Government’s dashboard of assimilated EU law shows that there are 155 items in the area of product safety and standards that derive from European law and could, under PRaM, be influenced by proposals of the European Commission to update EU law. Clearly, 155 documents alone would likely mean we exceed the ability of any one individual departmental Select Committee to devote sufficient time to the required level of scrutiny given their other priorities.

Many of us had run-ins with the previous Member for Stone. For some reason he never quite welcomed my interest in his work, but my interest and concern in scrutiny in this place is genuine and heartfelt, because I do think that at our best we can help Ministers, although I know that some on the Front Bench—maybe on both sides of the Chamber—will be raising an eyebrow at that suggestion. Aside from the democratic merits of parliamentary scrutiny in its own right and the cry to take back control, there are a number of benefits to the Government of ensuring that regulations derived from EU laws are scrutinised closely, not least because if those regulations deriving from EU law were later the subject of judicial review, the quality of parliamentary scrutiny of the relevant secondary legislation would be factored into a court’s thinking on the adequacy of the Government’s decision making. We might also pick up things in the process that have been missed.

It is indeed the question of perfection, as my hon. Friend the Member for Erewash (Adam Thompson) said, to argue that any Government or any individual scrutiny process through a statutory instrument could ever be perfect. I do not believe we should set that standard. As a psychologist, I believe in competing opinions and views; there is always merit in having a second pair of eyes. That is what this process is getting at—that is how we get closer to perfection, if I have understood my lessons in metrology correctly.

The point also fits within the broader debate about how, as we reset our relationship with Europe, we make sure that we show the British public our homework. That is ultimately what good scrutiny does: it defeats the naysayers who claim that there is a backroom fix; it allows the disinfectant of sunlight to be poured on every single document to its dullest degree.

As the Prime Minister told the House in presenting the European deal, we will be taking co-operation with Europe “further, step by step”, and alignment will be an important part of that. I welcome that because it is in the interests of the British public. We are already committed to dynamic alignment on the SPS deal, to free us from those dire border checks and all the extra paperwork that means that there are trucks stuck at Sevington, food inflation has increased and our constituents have paid the price.

We are also looking at dynamic alignment on emissions trading to allow us to remove energy tariffs in key industries including steel. That means that when those deals are completed, there will be much larger volumes of EU rules that directly affect UK law and policy. That will probably be a good thing but it is right for this place to be able to debate, discuss and scrutinise how that works.

I hope the Minister will recognise that every single political party in this House has supported new clause 15 because they want not to batter the Government but to engage with the Government on these issues, and that he will talk about how we can see the appropriate level of parliamentary scrutiny in this piece of legislation. I recognise that not many pieces of legislation will be affected by the PRaM proposals directly, but there is that broader point about how we take back control—how we have that conversation about the way in which we, at our best, can assist the Government to get the best out of regulations so that our businesses can keep trading, our consumers can keep buying and our Glo Worms can keep glowing.

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?