Trade Diversion and Windsor Framework

Debate between Robin Swann and Jim Allister

Tuesday 4th March 2025 Commons Chamber

[Jim Allister]

Perhaps in a moment.

We also see that in the purchase of goods figures that NISRA reports. It has given us figures from 2020, contrasting them in a table with those for 2023. The year 2023 was only the beginning of things getting difficult, as the Irish sea border did not in effect come into place until October 2023 because of the grace periods. However, those NISRA figures show that Northern Ireland’s purchases of goods increased from 2020 to 2023—of course, it was a period of inflation—by 24% from GB, but by 50% from the Republic of Ireland, meaning twice the growth rate in the buying of goods into Northern Ireland that would previously have come from our integrated United Kingdom economy.

The Office for National Statistics business insights and conditions survey states that 13.1% of currently trading manufacturers based in GB had sent goods to Northern Ireland in the past 12 months. That was at the end of 2024. But in January 2021, 20% of manufacturers in GB were sending goods to Northern Ireland. So, in just those four years there has been a dramatic fall in the number of manufacturers supplying goods to Northern Ireland. It has nearly halved in four years. The ONS data for 2024 tells us more: 11.7% of companies tell us they have stopped trading with Northern Ireland. Why? Because of the bureaucracy, because they have to make customs declarations, because they have to have them checked, and because they have to employ extra staff to do all that. Many companies, particularly in smaller sectors, have simply said that they are not going to do it.

[Robin Swann (South Antrim) (UUP)]

Will the hon. and learned Gentleman give way?

[Jim Allister]

In a moment, perhaps. I need to make sure I get through what I need to say.

It is beyond doubt, I would respectfully say, that there has been trade diversion. Back in September, the Road Haulage Association gave evidence to a parliamentary Committee of this House. It told the Committee that 30% of haulage lorries that take goods to GB are returning empty. Why? Because GB companies have stopped supplying. Now, that is an incredible thing to contemplate. Trade works on the basis that you take goods out, and then you fill your lorry and bring goods back. That is how you make it viable and how the economy works. That 30% of lorries now returning to Northern Ireland are returning empty is an incredible indictment of the operation of the protocol.

And things are getting worse. The EU regulation on general product safety now puts more burdens on companies selling into Northern Ireland, because they have to meet enhanced EU product safety regulations. I have mentioned the craft sector in this House before. Recently, 11 suppliers in that niche market stopped supplying Northern Ireland. It will get worse, because the partial border is coming and they will have to do more paperwork and make more declarations about sending simple parcels from GB to Northern Ireland. Tesco has slides that it shows to its own suppliers stating that they should now buy from the Republic of Ireland because it is easier to supply from there than from GB. The same is happening in veterinary medicines and in every sector.

Why does that matter? It matters for a very pertinent political reason. The whole idea of trade diversion and the whole purpose of the protocol was and is to build an all-Ireland economy: to dismantle the economic links between Great Britain and Northern Ireland and enhance links with the Irish Republic, thereby creating stepping stones out of the United Kingdom into an all-Ireland for Northern Ireland. That was the determination that lay behind the protocol.

We do not need a protocol to govern trade. It is demonstrable that if we can organise trade through Northern Ireland to GB without border checks in the Irish sea, and if, as the Government now say is possible, we can do it with checks away from the border, then equally we could do it in the other direction, through mutual enforcement. That would mean recognising that if we are going to export from one territory to another, our manufacturers must produce goods to the standards of the other, and we would enforce that by making it a criminal offence to do otherwise. That is the essence of mutual enforcement. It would work, but it is not allowed to work, because the political agenda of the protocol is to ensure this reorientation and realignment.

We are told that we now have Intertrade UK, but it has no staff and no budget, in comparison with InterTradeIreland, which has more than 50 staff and a budget of £6.5 million a year and is active across the whole area. Intertrade UK has been set up as a shadow, but it is not able to compete in any sense.

This Government have allowed the economy of Northern Ireland to drift out of the United Kingdom. I believe those who are protocol enthusiasts want that to happen. Now it is happening, the onus is back on the Government to do something about it.

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[Jim Allister]

The right hon. Gentleman is absolutely right. Business is like water: it follows the easiest course. When we were an integrated part of the UK economy, the easiest and cheapest course was to do the greater bulk of our trade with GB. That, historically, has been our basic supply market for our raw materials and everything else. However, when a fettering of trade is imposed, naturally, business will follow the easiest route. The easiest route now, sadly, is to cease trading from GB and accentuate trading with the EU, and most particularly the Republic of Ireland.

The United Kingdom was built on two pillars, according to the Acts of Union. The first was a political union, with article 3 establishing this House as one sovereign Parliament for the whole United Kingdom; the second was an economic union, through article 6, which established unfettered trade between and within all parts of the United Kingdom. That was what article 6 said—that there should be unfettered trade. But along came the protocol, which fettered trade, leaving the Supreme Court with no choice but to accept that the protocol had therefore subjugated article 6. The very foundation of our economic union, article 6, which says that there shall be unfettered trade, is in suspension. It is no wonder that the consequence of that fettering of trade is a diversion of trade.

[Robin Swann]

I thank the hon. and learned Member for giving way. It is on that diversion of trade that I wish to speak. He and most Northern Ireland MPs will know of the fantastic Colemans Garden Centre in my constituency of South Antrim. It supplies quite a number of people across Northern Ireland who have had difficulty in getting plants and fruit brought across from their main supplier, McIntyre Fruit, in Scotland. Just before this debate, the manager of Colemans Garden Centre told me that he had been in contact with Stuart McIntyre who said that he had just picked up a contract to supply a firm in Japan. He said that, bureaucracy-wise and administration-wise, it is easier for a supplier in Scotland to supply into Japan than it is to supply across the 14-mile stretch of water into Northern Ireland.

[Jim Allister]

That is the absurdity of where we have got to, and it has been accentuated by our subjection to the EU’s general product safety regulations. Those regulations provide that if a company is supplying into Northern Ireland from outside the EU—in other words, from GB—it must have an agent resident within the EU. The company must complete the paperwork on the origin of its goods and on the customs declarations, and it cannot do so without employing an agent within the EU. Anyone who knows anything about business will know that that is added cost that will cause many businesses to say, “Northern Ireland is not a huge market to start with, so I shall just not bother with it.” That is what all our businesses in Northern Ireland are suffering from.

Armed Forces Commissioner Bill

Debate between Robin Swann and Jim Allister

Report stage
Tuesday 21st January 2025 Commons Chamber

[Jim Allister (North Antrim) (TUV)]

It is good to see the Armed Forces Commissioner put on a statutory basis, and to see the functions set out and see how the staff, though perhaps not directly recruited, can be provided for the commissioner. All that is good, but it causes me to ask why, if we are making that provision for the serving members of our armed forces, are we not making a parallel statutory provision for our veterans? Why is it right to have a statutory basis for the Armed Forces Commissioner, but not for the various veterans commissioners? Surely, if it is right for serving members, it must equally be right to have a statutory basis setting out the functions and ensuring staff provision for the veterans commissioners. I take the case of the part of the United Kingdom that I know best: in Northern Ireland, we have a part-time, term-appointed veterans commissioner for two days a week, effectively, with two staff seconded from the Northern Ireland Office, who is charged with looking after all the interests of the very many thousands of veterans that we unsurprisingly have in Northern Ireland.

I ask again, if it is right to have a commissioner on a statutory basis for serving soldiers, why is that not the case for veterans? It would be not only a significant step forward in itself, but a significant nod to how we value our veterans community if we were to give them equality of treatment on this issue. I think that is very important. Without the role being on a statutory basis, a part-time, term-appointed veterans commissioner with seconded staff has his hands tied behind his back, frankly.

In Northern Ireland, because this Government are going to repeal the Northern Ireland Troubles (Legacy and Reconciliation) Act 2023, we are moving back into a phase where we may see many veterans from incidents 50 years ago dragged through our courts. We have a veterans commissioner with no standing to intervene in the multiple judicial reviews that take place on those issues and no standing to take any official line on any of that. If we were to put the veterans commissioner on a statutory basis, with the available funding, there would be a role to be performed—and not just on that specific issue, but perhaps if there was a challenging judicial that touched on veterans’ issues. Why should the veterans commissioner not be a notified and intervening party in such proceedings? I think he should.

[Robin Swann (South Antrim) (UUP)]

Does the hon. and learned Gentleman share the concern that the staff of the Northern Ireland veterans commissioner are appointed by the Northern Ireland Office, as is the commissioner? Does he agree that the commissioner having the freedom, independence and ability to challenge the Government with force and vigour, and without having to continually look over their shoulder at what may be perceived as oversight from the NIO, would actually strengthen that role?

[Jim Allister]

I absolutely agree. It is one of the strengths of the Bill that it purports to give independence to the Armed Forces Commissioner, but that means there is all the more need for the veterans commissioner to have the same independence. All the veterans commissioner has is two staff, whom he does not choose—not that there is anything wrong with those staff; they are very good. However, they are not appointed by his office; they are hand-picked by the NIO and seconded to him. If all he has is two staff he has not chosen, it creates the wrong perception, and very often that is enough to do damage to an office.

I therefore take the opportunity of this debate to say that what we are doing for the Armed Forces Commissioner is good, but let us mirror it in what we do for our veterans.

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[Jim Allister]

That is true. However, they failed to take the step I am now advocating of putting the veterans commissioner on a statutory footing. This Government can go one better and do the right thing for veterans, and I trust that they will. I do support new clause 2; I think it is a step in the right direction, but it is not enough. We need to offer our retired servicemen the facilities we are offering our serving servicemen.

[Robin Swann]

The Ulster Unionist party would support new clause 2. I, too, pay tribute to my predecessor as Ulster Unionist MP for South Antrim, Mr Kinahan, for the work that he did in this place and continued to do for veterans. I also wish David Johnstone well.

The right hon. Member for South West Wiltshire (Dr Murrison) made a point about the position of Veterans Minister. Does the hon. and learned Gentleman agree that there is an opportunity for the Veterans Minister to be responsible for appointing the veterans commissioner for Northern Ireland, rather than the NIO, and that there may be a segregation of perception with regard to some of the concerns that our veterans community would have?

[Jim Allister]

That is a fair point. In truth, our veterans community, as they see some of their brethren facing historic investigation, align the genesis and support for that investigation with the NIO. Therefore, it certainly would be better, both in presentation and in reality, if there was that distance between the veterans commissioner and the NIO.

European Union (Withdrawal Arrangements) Bill

Debate between Robin Swann and Jim Allister

2nd reading
Friday 6th December 2024 Commons Chamber

[Jim Allister]

I will deal with that more fully, but for now I will say that the trade that matters the most to Northern Ireland is with our biggest partner, Great Britain. That is the source of the overwhelming majority of our raw materials that keep our manufacturing industry going, but as a result of this pernicious Irish sea border, that trade is fettered. All raw materials have to pass through the full ambit of an international customs border. If the hon. Member’s constituents envy the position of my constituents, they really need to reassess the situation, as does he. It is nothing to envy.

[Robin Swann (South Antrim) (UUP)]

I thank the hon. and learned Member for introducing the Bill. At Prime Minister’s questions, I asked the Prime Minister about the general product safety regulation that will come into effect next Friday, which will force suppliers in constituencies across England, Scotland and Wales to increase bureaucracy and costs if they still want to supply Northern Ireland consumers and producers. Does he agree that it is absurd that we are putting additional costs on our internal UK market to facilitate the requirements of the European Union?

[Jim Allister]

I agree absolutely. We already see the consequences. [Interruption.] Again, this seems to be a matter of humour to some on the Government Benches. Increasingly, we see that GB suppliers simply stop supplying, because they will not put themselves through the rigours of the customs code, documentary declarations and everything else. It is very difficult for anyone trying to do business in Northern Ireland. In the main, small and medium-sized businesses do not have the resources to employ the extra 10 staff that a big business might to meet the requirements of crossing the Irish sea border. Small suppliers do not have the necessary resources, so they simply stop supplying Northern Ireland. That feeds the continuing diversion of trade.

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[Jim Allister]

There are human medicines, and there are veterinary medicines. The vast swathe of veterinary medicines currently stand to be prohibited. As for human medicines, there are some for diabetics that are still subject to difficulties.

[Robin Swann]

rose—

[Jim Allister]

The hon. Member was the Health Minister in Northern Ireland and knows all about that, so I will gladly give way to him.

[Robin Swann]

On that point—I see that Members are smiling; I am quite concerned about the attitude to the issue of some of those on the other Benches—a serious piece of work has been done with the European Union on the subject of continuing the supply of human medicines to Northern Ireland. The challenge is not in the legislation but in the fact that producers and suppliers must meet EU requirements for specific Northern Ireland labelling, which makes it not worth their while to supply items to Northern Ireland, with the result that some manufacturers are still not doing so.

[Jim Allister]

The hon. Member knows that from experience.

I want to make some progress, and to make one point very strongly: the economic consequences are dire for Northern Ireland. We have heard much talk about the fantasy of a dual-access bonanza. We have been told that Northern Ireland will become the Singapore of the west, that we now have unrivalled access to the UK market and to the EU market—consisting of 500 million people—and that everyone should be overwhelmed by the fantastic opportunity that this provides. How wrong that has turned out to be, and for one very simple reason, already alluded to by the right hon. Member for Belfast East.

We have heard the suggestion that inward investment will flow into Northern Ireland because of this dual market access, but it has not done so. Invest Northern Ireland has had to admit that there has been no upturn—and why is that? Because any benefit, if there is one, is countermanded by the fettering of the trade from Great Britain. A manufacturer wishing to set up a business in Northern Ireland in order to have access to the EU market is bound to say to himself—because investors are intelligent people—“Where will I get my raw materials? Oh, I will get them, as most do, from Great Britain.”

But then he will discover that those raw materials will have to pass through an international customs border, with all the regulation, all the delay and all the inspection, and the shine soon goes off that idea. Far from being a bonanza, this has turned out to be anything but.

I have already pointed out that the one sector that is flourishing is the service sector. That does not just happen to be the case; it is able to flourish because it is outside the protocol. And things will get worse: next Friday, when the general product safety regulation comes into force, many small suppliers will simply stop supplying because of the bureaucratic burden that will be placed on them. Already, in so many cases, when someone wants to buy an item online, this will pop up: “Not available in Northern Ireland.” Why is that? Because the small suppliers from Great Britain find it impossible to handle the burden of bureaucracy, so they are simply saying, “We are not supplying to Northern Ireland.” That is hugely frustrating for so many people in Northern Ireland—including, I might say, Mrs Allister, who, like many a woman, wants to order things and then finds that they are not available in Northern Ireland. How would hon. Members from Great Britain feel if “not available in Scotland,” “not available in Wales” and “not available in England” constantly popped up? Would they not be asking why? And when they heard the answer, “It is something called the protocol,” why would they continue to be enthusiasts for the very thing that is blocking their consumers from getting the supplies they need? This is a practical issue.

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[Jim Allister]

Brexit was a national vote, decided for better or for worse on a national basis. The people of London did not vote for Brexit, but no one is saying they should now be ruled by laws from Brussels. The People of Northern Ireland by a small majority did not vote for Brexit, but Members are saying that we should be ruled by laws from Brussels. That does not stack up. I am simply calling in aid what the Belfast agreement says: the Belfast agreement says key decisions are cross-community. Is anyone denying this is a key decision? If so, why is it not a cross-community vote?

[Robin Swann]

I thank the hon. and learned Gentleman for introducing this Bill, and I acknowledge his recognition of the strengths of those protections in the Belfast agreement, which were built in by my party and especially by Lord Trimble, the former leader of the Ulster Unionist party and the crafter and political deliverer of unionism in support of the Belfast agreement at that time. He said:

“I feel betrayed personally by the Northern Ireland Protocol, and it is also why the unionist population is so incensed at its imposition.

The protocol rips the very heart out of the agreement, which I and they believed safeguarded Northern Ireland as part of the United Kingdom and ensured that democracy not violence, threat of violence or outside interference, would or could ever change that.

Make no mistake about it, the protocol does not safeguard the Good Friday Agreement. It demolishes its central premise by removing the assurance that democratic consent is needed to make any change to the status of Northern Ireland. It embodies a number of constitutional changes that relate to Northern Ireland.”

[Jim Allister]

The late Lord Trimble was absolutely right about that. What is happening on Tuesday is an invitation to the Assembly, courtesy of the Government’s directive, to tear up the key central portion of the Belfast agreement on cross-community consent. There is another point.

Income Tax (Charge)

Debate between Robin Swann and Jim Allister

Monday 4th November 2024 Commons Chamber

[Jim Allister (North Antrim) (TUV)]

When the Chancellor introduced her Budget, one thing she said was that change must be felt. This Budget will be felt, but, in many instances, not in a good way. My constituency is peppered with small businesses employing 10 or 12 people. They are the victims of this Budget, because they are now going to be soaked with additional tax on jobs, and that will not bring change that will be felt in a good way; it will diminish employment in my constituency. My constituency also has many family farms, and they too will not feel this Budget in a good way, because inheritance tax will put many of their futures in jeopardy. Family farms are asset rich, but more often than not they are cash poor, so how on earth will they ever meet the huge imposition that has been placed on them?

[Robin Swann (South Antrim) (UUP)]

The average farm income in the past year in Northern Ireland was £27,345, which does not exactly leave those family farms a lot of slack. It does not leave them much to live on, let alone meet inheritance tax bills.

[Jim Allister]

That illustrates my point. It shows how impossible and unfair it is to say to family farms—and it does not take a lot of acreage to be worth £1 million—“You may have the assets, you do not have the income, but you must pay the inheritance tax to HMRC.” What do those farmers do? They sell off part of the farm, and what does that do? It diminishes the food production, and it diminishes the viability of the farm. That will be how this Budget will be felt in many family farms. Similarly, it will be felt in a negative way by new homebuyers because of the stamp duty threshold reductions: new purchasers will now pay significantly more in tax to buy a new home.

As for the Budget allocation for Northern Ireland, back in 2012 the Government accepted a national barometer of need. Through Professor Holtham, it set out what was needed in each part of this nation. What £100 could buy in public services in England was then translated—because other areas were smaller—into what it would cost to buy the same amount in the rest of the United Kingdom: £105 in Scotland, £115 in Wales and £121 in Northern Ireland. Yes, according to the block grant transparency document this Budget provides for Wales £120 per £100 in England, but in Northern Ireland we continue to be just at need. Why is there that uplift for some parts of the United Kingdom and not for others? We in Northern Ireland also have no guarantee of meeting need beyond 2026-27. That is not assured in this Budget. I ask for my constituents what has been afforded to the constituents of Wales, an uplift on need so that they can see their public services provided properly.

Northern Ireland Veterans Commissioner

Debate between Robin Swann and Jim Allister

Tuesday 15th October 2024 Westminster Hall

[Robin Swann]

The hon. Member makes a valid point. I asked a question of the Northern Ireland Office on 12 December about the appointment, and the answer I got was:

“We will set out steps for the appointment of a new Northern Ireland Veterans Commissioner in due course.”

We are now almost a month on from that.

[Jim Allister (North Antrim) (TUV)]

Surely the greatest deficiency is the fact that there is no statutory basis for the Veterans Commissioner? If we are going to secure the long-term future of the essential provision that a Veterans Commissioner can offer, surely we need to have it on a statutory basis, as elsewhere in the United Kingdom. Is that not the most important step that the Government could take moving forward?

[Robin Swann]

I thank the hon. Member for his point, and I will come to it later when I quote him in regards to the concerns that were raised when Mr Kinahan resigned.

On Mr Kinahan’s appointment, the leader of the Ulster Unionist party at that stage, Dr Steve Aiken, said that it

“will be warmly welcomed by all veterans and the wider armed forces community across all of Northern Ireland”,

that Mr Kinahan would

“be a first-rate advocate for the many thousands here who have served”

and that

“by his appointment we have at long last joined the rest of the United Kingdom in providing that very necessary representation.”

Sheep Farming

Debate between Robin Swann and Jim Allister

Wednesday 4th September 2024 Westminster Hall

[Jim Allister (North Antrim) (TUV)]

I thank the hon. Member for Hexham (Joe Morris) for bringing this important matter to the Floor. As has been clear from the contributions from Northern Ireland, sheep farming is a significant but, sadly, poor relation of farming because the lowest farm incomes in the farming sector arise among sheep farmers. That is an indication of an indisputable fact: what is needed in Northern Ireland, and particularly in a constituency such as mine, which has a lot of sheep farmers, is a sheep support scheme.

In Northern Ireland, we do have a beef support scheme —it is called the beef carbon reduction scheme—and we have a separate cow scheme. Those contribute to environmental enhancements on what used to be the single farm payment, now the direct payment. But there is no scheme for sheep farmers, and that is a lamentable failure on the part of the local Department. It has been sitting on a taskforce recommendation since early last year and has failed to move on that matter. Not only is that failure to move doing nothing to increase incomes, but it is going to decrease them. From 2025, sheep farmers farming only sheep are set to lose 17% of their basic payment unless they change to include protein crops and cattle. For many, that is just not possible, so there is an urgent need for action.

[Robin Swann]

The hon. Member talks about sheep farmers in Northern Ireland looking enviously on at beef farmers in Northern Ireland, but he will be aware that they also get to look across the border, where the Republic of Ireland Government have introduced a sheep support scheme that pays up to €17 to €20 a head. That puts our farmers in Northern Ireland at a further disadvantage.

[Jim Allister]

I am grateful to the hon. Gentleman, but it is actually worse than that. Yes, we can look across the border and see the advantage, but the problem is that, courtesy of the Windsor framework and the protocol, Northern Ireland farmers are subject to the same rules and regulations but none of the benefits. Members should never forget that the laws concerning farming in Northern Ireland are not made in this place or in Stormont; they are made in a foreign Parliament to which we elect no one. That is the ultimate constitutional absurdity of the Windsor framework: we have created a situation where, in more than 300 areas of law, the laws are foreign-imposed—colony-like—on Northern Ireland. The laws concerning the whole agrifood industry are made in Brussels, and that is an appalling constitutional and economic affront.

Because we are subject to the European veterinary regime, we now have a looming crisis: come 2025, our veterinary medicines, which are produced in Great Britain, will not be permitted to enter Northern Ireland, and up to 50% of our medicines will be excluded from Northern Ireland. That is a serious challenge, which the last Government did nothing about and which I trust this Government will do something about. This Government will need to stand up with vigour against the European Commission and insist that every part of this country must be entitled to have the same veterinary medicines as the rest of the country. It is time that we shook off our shackles and insisted on that.

Of course, it gets even worse. As has been alluded to, movements of livestock from Great Britain to Northern Ireland are subject to every EU rule that applies. We therefore have quarantine periods of six months for those wanting to bring in livestock, and of 30 days for the host farm it is coming from. Why? Because that is what EU rules, which we have been left subject to—serf-like—insist on. To take sheep farming, farmers need to constantly improve the genetic line; they need to bring in new rams, but bringing one in from Scotland or Wales, which would be our traditional sources, is now nigh impossible because of these quarantine rules. That needs to be addressed.

There are other dimensions. Reference has been made to the fact that hundreds of cattle and other livestock have been stranded on this side of the Irish sea since last year and cannot be moved to Northern Ireland, due to EU rules about bluetongue. We have the ludicrous situation that someone who buys rams in France or cattle in Sweden or elsewhere can bring them straight through GB to Northern Ireland, but if they buy them in GB, they cannot bring them to Northern Ireland, because GB is said to be a bluetongue zone. Even though the livestock is, in many cases, being bought from Scotland, which has no bluetongue difficulties, it still cannot be brought to Northern Ireland. Why? Again, because of the absurdity that we are subject to EU rules.

This House, far outside the framework of farming issues, needs to get hold of the fact that unless we deal with the constitutional imperative of restoring Northern Ireland to the rules of this House and this country, and not of a foreign jurisdiction, we will have these problems, which manifest themselves in our farming industry in the way I have described. It is not just a multifaceted problem, but a multifaceted problem with many deep issues that need to be addressed. The last Government had no appetite to address them—in fact, they deepened the problems with their Windsor framework. I trust that this Government, who have inherited the ludicrous situation of Northern Ireland being a condominium ruled in part by laws made in the United Kingdom and in part by foreign laws in a foreign jurisdiction, will address this issue. We cannot go on like this. Neither our sheep farmers, nor any other farmers, nor our citizens should be living in a colony-like situation where we are ruled by laws we do not make and cannot change.