United Kingdom Internal Market Bill

Sammy Wilson Excerpts

2nd reading & 2nd reading: House of Commons & Money resolution & Money resolution: House of Commons & Programme motion & Programme motion: House of Commons
Monday 14th September 2020 Commons Chamber

[Edward Miliband]

There you have it: he didn’t read the protocol, he hasn’t read the Bill, he doesn’t know his stuff.

Let us deal with the second bogus argument. The Prime Minister claimed on Wednesday that it was necessary to protect the Good Friday agreement. The first outing for that argument was on Wednesday, at Prime Minister’s questions. I have to say to him, I would rather trust the authors of the Good Friday agreement than the Prime Minister, who has prominent members of the Government who opposed the agreement at the time. However, this is what John Major and Tony Blair wrote—[Interruption.] They don’t like John Major. They said that the Bill

“puts the Good Friday agreement at risk”—

[Interruption]—this is very serious—

“because it negates the predictability, political stability and legal clarity that are integral to the delicate balance between the north and south of Ireland that is at the core of the peace process.”

These are very important words from two former Prime Ministers, both of whom helped to win us peace in Northern Ireland. The Prime Minister may not want to believe them, but he will, I hope, believe himself—[Laughter]—maybe not—because this is what he said about the Northern Ireland protocol:

“there are particular circumstances in Northern Ireland at the border that deserve particular respect and sensitivity, and that is what they have received in the deal.”

It is

“a great deal for Northern Ireland.”—[Official Report, 19 October 2019; Vol. 666, c. 578-579.]

I do not understand this. He signed the deal. It is his deal. It is the deal that he said would protect the people of Northern Ireland. I have to say to him, this is not just legislative hooliganism on any issue; it is on one of the most sensitive issues of all. I think we should take the word of two former Prime Ministers of this country who helped to secure peace in Northern Ireland.

[Sammy Wilson (East Antrim) (DUP)]

Before the shadow spokesman lectures the Prime Minister about reading documentation or starts lecturing us about the Good Friday agreement, does he not recognise, first of all, that the Good Friday agreement talks about the principle of consent to change the constitutional position of Northern Ireland, which is what this protocol does? The Good Friday agreement has within it a mechanism to safeguard the minorities in Northern Ireland through a cross-community vote, which again the protocol removed. So before he starts talking about the threats to the Good Friday agreement, does he not recognise that the protocol was a threat to it in the first place?

[Edward Miliband]

The right hon. Gentleman did not like the protocol at all. He would rather have not had the protocol. He and I just have a disagreement on this issue. I believe it was necessary to make special arrangements for Northern Ireland, or for the UK to be in the EU customs union to avoid a hard border in Ireland. That is why the Prime Minister came along and said the protocol was the right thing to do.

Let me deal with the third excuse we heard. This is the “It was all a bit of a rush” excuse. As the Prime Minister said in his article, times were “torrid” and there were “serious misunderstandings”. He tries to pretend that this is some new issue, but they have been warned for months about the way the protocol would work. The Chancellor of the Duchy of Lancaster, who is sitting in his place, was warned at the Select Committee in March and was asked about these issues. The Business Secretary was written to by the House of Lords Committee in April.

Let us just get this straight for a minute, because I think it is important to take a step back. The Prime Minister is coming to the House to tell us today that his flagship achievement—the deal he told us was a triumph, the deal he said was oven-ready, the deal on which he fought and won the general election—is now contradictory and ambiguous. What incompetence. What failure of governance. How dare he try to blame everyone else? I say to the Prime Minister that this time he cannot blame the right hon. Member for Maidenhead (Mrs May), he cannot blame John Major, he cannot blame the judges, he cannot blame the civil servants, he cannot sack the Cabinet Secretary again. There is only one person responsible for it and that is him. This is his deal. It is his mess. It is his failure. For the first time in his life, it is time to take responsibility. It is time to ’fess up: either he was not straight with the country about the deal in the first place, or he did not understand it.

A competent Government would never have entered into a binding agreement with provisions they could not live with. If such a Government somehow missed the point but woke up later, they would do what any competent business would do after it realised it could not live with the terms of a contract: they would negotiate a way out in good faith. That is why this is all so unnecessary. There is a mechanism designed for exactly this purpose in the agreement: the Joint Committee on the Northern Ireland protocol. What did the Chancellor of the Duchy of Lancaster say on 11 March at the Committee on the Future Relationship with the European Union? He will recall that he was asked about state aid. He said:

“the effective working of the protocol is a matter for the Joint Committee to resolve.”

The remaining issues to which the Bill speaks are not insignificant, but nor are they insurmountable, and that is the right way to pursue them, not an attempt at illegality.

Let me come back to the excuses. Fourthly, on Sunday, there was the Justice Secretary’s “the fire alarm” defence: “We don’t want to have to do this, but we might have to.” I want to be clear with the House about something very, very important about a decision to pass the Bill. I have great respect for the hon. Member for Bromley and Chislehurst (Sir Robert Neill), but I want to make this point. The very act of passing the Bill is itself a breach of international law. It would be wrong for hon. and right hon. Members on either side of the House to be under any illusions about that as they decide which Lobby to go into tonight. If we pass the Bill, even if there is a nod and a wink from the Prime Minister to the hon. Member for Bromley and Chislehurst, we equip the Government with the power to break the law. That in itself is a breach of the Northern Ireland protocol and therefore a breach of international law.

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[Sammy Wilson (East Antrim) (DUP)]

The warnings that my party gave about the withdrawal agreement when it was discussed at the end of last year are now coming home to the Government. They are beginning to realise the impact that it had; indeed, they are beginning to admit what their own assessment said: that the withdrawal agreement would reduce trade and business investment in Northern Ireland, affect consumer spending and have a disproportionate impact on small businesses. If the Bill is an attempt to undo some of the damage done by the withdrawal agreement and respond to the points that Arlene Foster and other Ministers have pressed the Government to address, we welcome it. However, I have to say that it does not go the whole way or address all the issues that need to be addressed. Indeed, those who are criticising the Government about the non-implementation of the withdrawal agreement ought to know that only on Friday the Secretary of State for Environment, Food and Rural Affairs overrode the Northern Ireland Agriculture, Environment and Rural Affairs Minister and instructed civil servants in Northern Ireland to put up border posts and put in a proposal for border posts, even though all the information about what would be necessary had not been accepted.

Two arguments have been made against the Bill. The first is that it goes against the Good Friday agreement. For the life of me, I cannot understand why a Bill that prevents businesses in Northern Ireland from being able to sell goods freely in the rest of the UK is going to bring about violence in Northern Ireland. For the life of me, I do not understand why a decision that will enable businesses in Northern Ireland to bring goods from GB without paying unnecessary taxes, which they then have to claim back at some future time, is going to affect peace in Northern Ireland. The argument about the Good Friday agreement and violence in Northern Ireland is always rolled out when the arguments are weak against what the Government are doing.

The second argument is that the Government are reneging on their international obligations. The obligations in the withdrawal agreement are two-sided. There is a requirement for both the EU and the UK Government to act in good faith and with best endeavours to ensure that there is unfettered access and unfettered markets within the UK between Northern Ireland and GB, and to ensure that the Government of the United Kingdom have the ability to rule their own country and to make laws that affect their own country. Even a casual observer would see that the tactics of the EU and the comments that have been made by the negotiators make it quite clear that there has been no good faith and no best endeavours from the EU in these negotiations. In those circumstances, the withdrawal agreement allows the UK Government to act unilaterally.

The hon. Member for Bromley and Chislehurst (Sir Robert Neill) said that we have obligations to the rule of law and obligations to the EU. What about the obligations to the people of the United Kingdom to ensure the provisions of the Act of Union? The economic basis of the Act of Union makes it quite clear that there shall be no barriers on trade between different parts of the United Kingdom. I believe that the Government are fulfilling, in part, their obligations to the people of Northern Ireland in this Bill, and that is why we will support it tonight.

United Kingdom Internal Market Bill

Sammy Wilson Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Tuesday 29th September 2020 Commons Chamber

[Sammy Wilson]

My hon. Friend makes the good point that businesses in Northern Ireland might have to adhere to two sets of regulations. Does he accept that there will be occasions when EU regulations could be totally contrary to the regulations developed for the rest of the UK, and that at that stage, Northern Ireland businesses would have to choose? In fact, they would not have to choose, because they would be obliged to follow the EU regulations and would be unable to comply with UK regulations affecting trade.

[Gavin Robinson]

My right hon. Friend is absolutely right. That is a conundrum that we keep having to address, and the reason we have to keep raising it in these debates is that it is not filtering through. Despite the “lines to take” that have been distributed to colleagues and friends across the Chamber, those conundrums have yet to be answered, and businesses in Northern Ireland still require clarity, whether on selling into the GB market or buying from the GB market. The Bill attempts to address part of that journey, but only part of it, and it does not give us the clarity that we need.

On the REACH regulations and amendment 17, I want to refer to an email I got yesterday from a constituent called Audrey, who outlines something that had not been part of my thought process. She says, “All new and existing substances made and imported into the EU under the REACH regulations at levels of more than one tonne per year must be registered with the European Chemicals Agency. Registration also involves tests on live animals. Cruelty Free International estimates that already 2.6 million animals have been poisoned and killed in this process and that a full minimum data set for the high production chemicals would be approximately 5,000 animals per year, including rats, mice, rabbits, fish and even birds. Based on the information from the Health and Safety Executive, in two years of the UK’s exit from the European Union, UK-based companies must provide the full data package that supported their original registration with the ECHA, including full test reports for each applicable toxicity concern. Because of access to those data issues, many UK registrants could be left with no choice but to repeat the tests on animals that have already been complied with for EU purposes.” Even if Members do not accept my arguments around the implications for businesses, do they think—if those datasets are not agreed and if a common framework is not reached between the EU and the UK—that all those subsets of tests and all that cruelty is genuinely necessary? I think it is avoidable, and I ask the Government to consider amendment 17 more thoughtfully.

On new clause 7, I thank hon. and right hon. Members from across the Committee who support the endeavour and the aspirations that it brings. I wish to put on record my appreciation for the shadow Secretary of State for Northern Ireland—the hon. Member for Sheffield, Heeley (Louise Haigh)—and the right hon. Member for Doncaster North (Edward Miliband) for their engagement with and understanding of the implications that there are for Northern Ireland. They signed the amendment and I am grateful to them for doing so. I am grateful to the hon. Member for North Down (Stephen Farry), who similarly joined us in this endeavour, and, I have to say, to the hon. Members for Foyle (Colum Eastwood) and for Belfast South (Claire Hanna), who have indicated their positive approach to the new clause and signed it when we tabled it to the European Union (Withdrawal Agreement) Bill back in January.

Nothing that the Minister said—I cannot re-emphasise this point enough—undermined the benefits of accepting new clause 7. He indicated that the Government will rightly carry out an analysis of the implications for business in Northern Ireland, so there is nothing wrong with agreeing to it as part of the Bill. We know that there are distinct differences associated with the operation of the Northern Ireland protocol. The new clause seeks not to undermine the protocol but to ensure that Government carry out these impact assessments. In doing so, it seeks to indemnify businesses in Northern Ireland who are unduly, unfairly and uncompetitively put at a disadvantage to their colleagues and counterparts in GB. That is the very essence of the commitments that have been advanced as part of the Bill; indeed, the “lines to take” that Conservative Members have been given tell them that the Bill is about ensuring the integrity of the UK internal market. If they believe that to be the case, then there is nothing in new clause 7 that undermines their position. I say that very earnestly.

Looking across the Chamber, I see Members—friends—who have an interest in Northern Ireland and, more than that, an unbridled belief in the benefits of the Union, and who believe that we should not only hold but build and enhance what we have. If they are of that view and respect our integral place within the United Kingdom—I know that many have gone through the angst of having to accept compromises as part of the withdrawal agreement to get Brexit for themselves in England, knowing that it will have distinct differences for us in Northern Ireland—I earnestly hope that they will consider new clause 7 in a positive vein. It does not undermine the Government’s position—they have offered no fundamental objection to it—and it does not undermine the process that Members are seeking to achieve on Brexit. It would, however, make an enormous practical difference for businesses in Northern Ireland who are faced with uncertainty and a lack of confidence in the arrangements that will come forward, and, should there be a negative impact or consequence, they would know that Government will stand with them.

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It is clear from debates on the Bill that only the Conservative and Unionist party truly wants Britain to succeed as an independent sovereign state that can stand on its own two feet. The United Kingdom of Great Britain and Northern Ireland is the oldest and one of the most successful political unions. Our internal market has been vital to our shared prosperity, having facilitated seamless trade for centuries. Trade has been, and is, the key to prosperity for millions around the world, and will continue to be so for the British people, with a free, unencumbered internal market and global free ports around the country, one of which I dearly hope will be sited on the banks of the River Tees.

[Sammy Wilson]

First of all, I make it quite clear that, so far as Democratic Unionist Members are concerned, despite what has been said by the hon. Members for North Down (Stephen Farry) and for Foyle (Colum Eastwood), the Bill is essential to protect businesses in Northern Ireland. Our worry is that it does not go far enough, because its only reference to keeping Northern Ireland as part of the internal market regards preventing the withdrawal agreement’s requirement that businesses in Northern Ireland make export declarations when exporting to our biggest market, GB. That is the only reference in the Bill. In fact, the Bill also specifically excludes Northern Ireland from protections against EU interference in state aid and support for UK businesses. We are the only part left out of that.

New clause 7 seeks to address some of those things. First of all, it refers to the Government using their “best endeavours” to ensure that trade from GB to Northern Ireland, and from Northern Ireland to GB, is protected within the internal market. Secondly, it would require the Government to monitor the impact of the withdrawal agreement and the Northern Ireland protocol, because we cannot defend businesses in Northern Ireland if we do not know what impact those are having. It stands to reason that, whether defending Northern Ireland through giving support to businesses and helping them to reduce their costs if unfair impositions are placed on them, whether protecting Northern Ireland through mitigation measures or whether supporting Northern Ireland through taking up these issues at the Joint Committee, we must know the impact of the withdrawal agreement. New clause 7 would require the Government to monitor those impacts so that they have the information to make a defence, as Ministers have said from the Dispatch Box that they want to do for businesses in Northern Ireland.

Thirdly, the new clause would require the Government to look at not only the impact of regulations that will be imposed on Northern Ireland by the European Union as part of the protocol, but the impact of any likely regulations, so that they can be anticipated and, again, so that businesses in Northern Ireland do not find that they are affected in a way that I have outlined in this place so many times. In my constituency, at this very moment, a planning application has gone in for a 45,000 square feet, £15 million border post. If we go by what Mr Barnier said yesterday, every lorryload of goods that comes through may have to be stopped, searched and investigated, with the resultant delays, costs and everything else.

It is important that the Government monitor the impact of such impositions. We are trying to ensure that this situation never happens in the first place, but unfortunately the Government already conceded that in the withdrawal agreement and the Northern Ireland protocol. I hope that the negotiations are successful in pushing the EU away from that draconian interpretation of the protocol. If not, there are some provisions in the Bill that will help to ameliorate the situation, and new clause 7 would push that even further. If Ministers mean what they say about protecting business in Northern Ireland and keeping it as part of the internal market, I hope that they will accept our new clause.

[Gary Sambrook]

This is one of the most important Bills that we will vote on in this Parliament, because it will create the foundation and fabric for our United Kingdom to prosper for many years to come—hopefully for at least another 300 years, to pick a random number. It is so important for all four of our nations to benefit from the Bill and prosper together.

The provisions in the Bill, especially on subsidy controls, are exactly what the spirit of Brexit was all about. It was about people knowing that they were sending billions of pounds to the EU, and feeling left behind here in the UK. I was shocked and appalled earlier to hear the shadow Minister talk about the Chancellor of the Duchy of Lancaster saying that money should be taken to the places it needs to be. The seats she was talking about used to be held by the Labour party, but are now held by Conservatives across the country, and it is because Labour forgot about those seats that so many of us Conservative Members are here today.

One such example, in my own seat, is the demise of MG Rover, which many people will remember. The factory closed down 15 years ago, but there is still 150 acres of land going completely unused. It is a daily reminder to the people who drive past it of that feeling of being left behind—of the billions of pounds going to the European Union, and the lost opportunities for jobs and skills across the constituency of Birmingham, Northfield. Through the subsidy controls provided in the Bill, we will be able to use Brexit to deliver on those jobs and opportunities. I very much look forward to this legislation being used for a bright, positive future across Northfield and Longbridge, when the empty space at MG Rover is used once again.

The clauses and compromises on parliamentary sovereignty are absolutely right and sound. A couple of Members on the Opposition Benches spoke about the nature of negotiations. Most Opposition Members are a second-hand car salesman’s dream. Half of them would leave the showroom without any windows, doors or tyres left on their car because every time someone said no to them, they would just roll over and accept it. If the European Union says, “No, sorry, we can’t do that”, Opposition Members think we should just say, “That’s alright; we’ll do whatever you like.”

We have heard about devolution, especially from Scottish National party Members. I am not too sure what definition of devolution they are working to. We talk about taking powers from Brussels to the UK and giving them to the devolved Administrations—but, no, their definition of devolution is to send them right back over to Brussels and have no control over them whatever. That is because the European Union is supposedly some kind of beacon and fount of progressive politics against a domineering United Kingdom. Well, they should tell that to the political independence campaigners in Catalonia, many of whom are political prisoners now, and one of whom was barred from public office yesterday, at the will of the European Union.

I have 10 seconds left, so I will finish by saying that I wholeheartedly support the Bill and its provisions to deliver our levelling-up agenda for constituencies across the country.

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[Alok Sharma]

The right hon. Gentleman says from a sedentary position that I am talking nonsense. He just needs to re-read his Second Reading speech and he will see that it is full of inaccuracies. We have engaged in good faith with the devolved Administrations throughout the passage of the Bill. It was very unfortunate that the Scottish Government decided to walk away from the discussions on the internal market last year and, as I said, we want to continue to work constructively.



Let me turn briefly to the Northern Ireland element of this business Bill, which has attracted a disproportionate amount of interest and commentary. I and every Member on the Government Benches stood on a manifesto commitment to ensure that Northern Ireland businesses and producers enjoy unfettered access to the rest of United Kingdom, and that in the implementation of our Brexit deal we would maintain and strengthen the integrity and smooth operation of our internal market. The Bill delivers on those commitments. We have also been clear that we must protect the gains of the peace process and maintain the Belfast/Good Friday agreement.

[Sammy Wilson]

The Secretary of State is absolutely right that the Bill has no impact at all on the Good Friday agreement, and, indeed, is only helpful to the economy in Northern Ireland—but only helpful in a limited way. He talked about access to the UK internal market for Northern Ireland goods going into GB, but will he say something about the opposite direction? Northern Ireland depends so highly on imports from GB, and yet there is no mention of safeguards to stop trade being blocked in that direction.

[Alok Sharma]

The right hon. Gentleman knows that discussions continue. He and I have had those discussions as well. But he makes the point that this is a business Bill, and I hope that every Member, like him, will support it on Third Reading.

We have taken these powers to ensure that, in the event that we do not reach an agreement with our EU friends on how to implement the protocol, we are able to deliver on promises in our manifesto and in the Command Paper. This is a legal safety net that clarifies our position on the Northern Ireland protocol, protecting our Union, businesses and jobs.

United Kingdom Internal Market Bill

Sammy Wilson Excerpts

Consideration of Lords amendments & Ping Pong & Ping Pong: House of Commons
Monday 7th December 2020 Commons Chamber

[Paul Scully]

If the Welsh Assembly decides that way, that will be regrettable—[Interruption.] The Welsh Senedd. It will be regrettable, because it is important that we continue to work together and allow continuity of trade and business between Wales, Welsh businesses and, indeed, the other nations of the UK. That is what Welsh businesses have been asking us for as we have been talking to them. They want certainty, and this Bill will give them certainty.

The Government are disappointed that the other place did not take up our reasonable offer and removed key provisions needed to ensure the operation of the internal market.

[Sammy Wilson (East Antrim) (DUP)]

Does the Minister not accept that for places such as Northern Ireland, Wales and Scotland, common standards that allow free trade between those parts of the United Kingdom and their main market, which is probably in England, are an advantage to everyone? The provisions in the Bill should not scare or frighten anybody.

[Paul Scully]

The right hon. Gentleman puts it correctly. When I have spoken to businesses in Scotland, Wales and Northern Ireland, they have agreed with businesses in England. The main market for so many of these businesses is within the United Kingdom. We talk about global Britain, but we have to make sure that we have our internal market right. The opportunities for business, including those in Northern Ireland, are absolutely at the heart of this Bill, and I appreciate his intervention.

Removing the powers that I have outlined would make it difficult for the Government to respond to businesses and the wider stakeholder feedback and act rapidly to respond to changes in the UK internal market due to the shifting economic landscape. The other place also added in conflicting, inconsistent amendments accepting our consultation offer, but also adding consent mechanisms.

Moreover, the other place’s three amendments 12, 13 and 56 introduce a new system for excluding requirements from market access principles, based on a long list of legitimate aims. This new clause would render the protections in part 1 almost meaningless. The regulator or legislator could justify a very wide variety of discriminatory measures using the justifications in the new clause. It would result in uncertainty as to what is in scope and leave little protection from regulatory barriers for businesses operating across the whole of the UK. However, the door remains open to the other place to reconsider, and we have kept our offer on the table.

I will turn now to Lords amendments 48 and 49. Clauses 48 and 49 support the Government’s determination to deliver the commitments on which we were elected—levelling up and delivering prosperity for the whole United Kingdom and strengthening the ties that bind our Union together. They provide for a unified power that operates consistently UK-wide.

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[Paul Scully]

My hon. Friend is right again. I know the debate that has surrounded the “notwithstanding” clauses, and it is important that we work in collaboration and partnership as we do these difficult negotiations, but, ultimately, that is where we want to solve these problems, rather than having to legislate for them in the first place. As I say, we will deactivate them when we get to the point that that is consistent with the United Kingdom’s rights and obligations under international law. While we are hopeful of success, it is only prudent that until such time as the discussions have successfully concluded, we retain these clauses in their current form as a fall-back option.

As has been said many times, the Government are fully committed to implementing the withdrawal agreement and the Northern Ireland protocol, and we have already taken many practical steps to do this, but these clauses will ensure that, irrespective of the outcome of our negotiations with the EU on implementation of the protocol, we will always protect Northern Ireland’s place in the United Kingdom. They will ensure that businesses based in Northern Ireland have unfettered access to the rest of the United Kingdom and that there is no legal confusion or ambiguity in UK law about the interpretation of the state aid elements of the Northern Ireland protocol.

[Sammy Wilson]

I thank the Minister for giving way again. I just want to get some clarification. Article 16 of the Northern Ireland protocol makes it quite clear that where the protocol does serious economic, societal or environmental damage to Northern Ireland, the Government have the right to act unilaterally. If this clause is to be removed and set aside, how will the Government be able to take unilateral action if changes in the protocol or demands from the EU do the kind of damage that is outlined in article 16?

[Paul Scully]

As I have said before in regard to these clauses, the changes that we set out in a statement earlier today work on the assumption that we have had success in the discussions and that we can solve this elsewhere. We hope that the “notwithstanding” clauses will never have to be used, and we understand the concerns that have been raised. Making regulations of this nature would not be done lightly. That is why, before this clause is commenced, this House, as we have discussed, will be asked specifically to approve a motion to that effect, and the other place will hold a take note debate. Any regulations made under this clause would be subject to the affirmative or made affirmative procedure, meaning that they will be subject to debates requiring a vote in both Houses.

Moreover, as the Prime Minister has made clear, in addition to taking these steps in domestic law, if we had to make it clear that we believed the EU was engaged in a material breach of its duties of good faith as required and provided for under the withdrawal agreement and the Vienna convention on the law of treaties, we would seek an arbitration panel and consider safeguards under article 16 of the protocol in parallel. We must ensure that, in any scenario, we are upholding the economic integrity of the United Kingdom, maintaining the Belfast or Good Friday agreement and the gains of the peace process and protecting the delicate balance between communities in Northern Ireland.

These “notwithstanding” clauses are a limited and reasonable step that create a safety net to enable those aims to be met. They ensure that the UK Government can always act as necessary to protect and maintain our UK internal market and Northern Ireland’s integral place in it. That is entirely in keeping with what the Government have constantly said, including in public commitments from the Prime Minister, our manifesto commitments and our commitments to the people of Northern Ireland. That is why the Government cannot agree with the Lords amendments, which would remove what was part 5, and why I urge hon. Members to disagree with the Lords amendments and restore the critical provisions in full.

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[Drew Hendry]

This is the man who said:

“The UK Government is back in Scotland. Get used to it.”

We have seen the Tories for an awful long time. In Scotland, we have not voted Tory since 1959, I think. [Interruption.] Sorry, 1951. That is how long the Scottish people have seen what the Tories are at. We do not want a Tory Government making decisions for people in Scotland. That is why the vast majority of Scottish people voted, with a settled will, to have their own Parliament, and all polls and the social attitudes survey show that, more and more, they support not only devolution but independence.

The Government want to drive a wrecking ball through the devolved settlements. That is reflected by the fact that this Bill, as we have heard, has been ripped apart in the House of Lords. On the shared prosperity fund, it said:

“The Government should explain why such a broad power for the UK Government to spend money in devolved territories has been included in this Bill.”

It also said that the delegated powers in the Bill are “extraordinary” and “unprecedented”,

“and many of them are constitutionally unacceptable.”

Of course, we know from experience what happens when UK Ministers have control of spending. The former Tory Prime Minister John Major took much-needed cash from the highlands and redirected it to Tory marginal seats that were under pressure in the south-east of England. Decades on, nothing has changed. As we know from the pork barrel scandal whereby the Secretary of State for Housing, Communities and Local Government directed funding to 61 towns that were key to the Tories gaining or retaining seats in the general election, priorities for Scotland will mean little or nothing to the Tories—probably the latter—unless they see some political advantage. Their naked intention to break devolution and break the law has been condemned across the world and even from their own Benches.

This Bill is not worthy of this or any other Parliament. Outside of Tory Government circles, it has been rightly and absolutely panned. Catherine Barnard, professor of European law at Cambridge University, said

“This is a remarkable piece of legislation and it expressly contravenes our international legal obligations to a point that the legislation itself says this is the intention”.

Imagine that. Steve Peers, a professor at the University of Essex, said:

“It is an obvious breach of international law.”

David Anderson, QC, tweeted:

“The Ministerial Code still mandates compliance with international law, despite a change to its wording, as the Court of Appeal confirmed in 2018”.

Simon Davis, president of the Law Society of England and Wales, said:

“The rule of law is not negotiable.”

Perhaps most tellingly, George Peretz, QC, tweeted:

“But it is hard to think of a better argument for Scottish independence than a UK government that is prepared to use Westminster’s unconstrained sovereignty to override a binding treaty commitment it entered into less than 12 months ago.”

Former Tory Prime Ministers, including a Member still sitting in this House, have savaged this shoddy piece of legislation. From their own Benches, the Government have been told that

“a willingness to break international law sits ill for a country that has always prided itself on upholding the rule of law.”

They have also been told by their own Members that it is an act of bad faith and that the rule of law is not negotiable.

The Bill has also been condemned in the United States. This is a Government who are really good at negotiating no deals, and it looks like they are about to negotiate another one with the US. Nancy Pelosi, the Speaker of the US House of Representatives, said:

“The U.K. must respect the Northern Ireland Protocol as signed with the EU to ensure the free flow of goods across the border.

“If the U.K. violates that international treaty and Brexit undermines the Good Friday accord, there will be absolutely no chance of a U.S.-U.K. trade agreement passing the Congress.”

We have also heard comments from the Taoiseach and others across the European Union. In America, Antony Blinken, the chief foreign policy adviser to Joe Biden, said that Joe Biden

“is committed to preserving the hard-earned peace & stability in Northern Ireland. As the UK and EU work out their relationship, any arrangements must protect the Good Friday Agreement and prevent the return of a hard border.”

[Sammy Wilson]

I am glad that the hon. Member is so supportive of the Belfast agreement, but would he accept that the Belfast agreement was all about ensuring that Northern Ireland stays within the United Kingdom as long as the people of Northern Ireland wish that to be the case, and a border between Northern Ireland and the rest of the United Kingdom, as is in this protocol, certainly does not protect the Belfast agreement and therefore does not even meet the criteria he has set himself?

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It also says that the Secretary of State may in the end make that appointment, but has to give reasons as to why they do not accept the views of the devolved authorities. We need new methods of consulting with each other and they need to be inter-parliamentary methods as much as intergovernmental methods. Those inter-parliamentary methods should scrutinise the decisions that are being made on behalf of the whole of the United Kingdom that affect the devolved Governments and Parliaments. That is where the development needs to be, with rather less hysteria and hyperbole. For the official Opposition to protest that we should uphold the principles of devolution and say, “I love the United Kingdom,” and then whip up the fury about this Bill is just to feed the nationalist beast. It is about time they stopped doing it.

[Sammy Wilson]

As the hon. Member for Harwich and North Essex (Sir Bernard Jenkin) pointed out, one of the most important principles of the United Kingdom is to have a common market and trade between the different parts—that is where the prosperity that attracts people to be part of the United Kingdom comes from. My view, which I have expressed in the House many times, is that the withdrawal agreement undermines the United Kingdom’s economic integrity as well as of course undermining its constitutional integrity, because as a result of the withdrawal agreement part of the United Kingdom will now have its laws made in Brussels and not in London or, indeed, in Belfast. That is why I believe this internal market Bill is so important. First, it ensures that standards within the UK internal market are maintained and that each part of the United Kingdom, for maybe very selfish, very parochial and even very temporary reasons, may want to make differences in its laws, regulations and standards, and, in doing so, damage not only the internal market but their own markets as well.

When it comes to the controversial clauses, I believe that the Lords have done a great disservice to Northern Ireland. I believe, as someone has already pointed out, that they are strong on assertions but very poor on arguments. The withdrawal agreement, while it promises unfettered access, while it promises that Northern Ireland will remain part of the UK customs territory, while it promises that the integrity of the United Kingdom will be maintained, in reality means that we will finish up with a plethora of trade barriers. We will finish up with laws made that are different from the laws in the rest of the United Kingdom. We will finish up with Northern Ireland being part of the EU single market, rather than the UK internal market.

[Paul Girvan (South Antrim) (DUP)]

Does the withdrawal Act that has been put forward or the Northern Ireland protocol included in this Bill not send the message to those who are from the Unionist community, “Your views do not matter, but appease those who are nationalist and republican, and who are only interested in their links with the Irish Republic. Europe has done us a disserve in not giving us free access to both the Republic of Ireland and the UK, and forget about the links we have with the United Kingdom”? That seems to be the message they are sending.

[Sammy Wilson]

Any agreement that means laws can no longer be made in the United Kingdom, and puts economic barriers between ourselves and our main market, is bound to be a change in the position of Northern Ireland that is totally contrary to the Good Friday agreement, which requires consent.

Some have argued that the Bill puts a safety net in place and that some of the aspects—only some of the aspects; I have to make that very clear—of the withdrawal agreement which could damage the Northern Ireland economy can be countered through the measures in the Bill. That, by the way, is totally in line with the withdrawal agreement itself, which allows the UK Government to act unilaterally where there is economic or societal damage done by the withdrawal agreement. The right hon. Member for Doncaster North (Edward Miliband) said, “Well, there you are. You’ve got your assurance in the withdrawal agreement.” But all the withdrawal agreement states is that the Government will have the right to act unilaterally. They must have the means to act unilaterally. The provision in this Bill gives them the means to act unilaterally. Ministers, notwithstanding what is in the agreement, can make new regulations and new laws that protect the Northern Ireland economy and the Northern Ireland market. That is why it is so essential to have these provisions.

What disappoints me is that we now have the Prime Minister today saying, “By the way, once we have a negotiated settlement and the work of the Joint Committee, then we can withdraw this.” That fails to recognise the nature of what we have entered into. The safety net is there not just for a one-off event, but because we will be continually walking the withdrawal agreement tightrope. Northern Ireland is still going to be subject to the rules of the internal market. Indeed, the withdrawal agreement makes it quite clear that the work of the Joint Committee will go on and on. At any stage, EU officials could demand that checks be placed in Northern Ireland and that UK officials would have to adhere to that. If those demands become unreasonable, we will then need a safety net. If we need a safety net, we do not need it until these negotiations are over. We need it while any part of the withdrawal agreement and the Northern Ireland protocol is in place.

I would therefore like an assurance from the Minister that if the Government intend to withdraw the safety net—if negotiations turn out fine this week—what protection will there be for Northern Ireland from the depredations of the withdrawal agreement in the future? That is important. I believe that this Bill is essential. The Government owe it Northern Ireland, having signed a disastrous agreement this time last year. If the integrity of the UK is to be maintained, the provisions in this Bill and, indeed, other provisions will be necessary.

[Sir Robert Neill]

It is a pleasure to follow the right hon. Member for East Antrim (Sammy Wilson), although I fear that I cannot agree with him on one point. I understand the point of view of those who voted against the withdrawal agreement that they can attack what they regard as its inadequacy. I voted for the withdrawal agreement, as did pretty much everyone else on the Government Benches, and I take the view that one should not deviate or depart from it, save under the most exceptional and pressing circumstances. At the end of the day, despite a great deal of debate, that is pretty much where we have ended up. I would not be comfortable about doing so were it ever necessary. I would not find it attractive. Sometimes, though, events occur in the nature of international negotiations that may render it necessary.

The Government having reflected, as I am glad they did in the Bill’s passage through this House and added the parliamentary lock to clause 56, there is a proportionate means of dealing with such an unwelcome eventuality should it arise. It is not something that we should look to. It is not something that we should desire and it is not something that we should make easy either. It is something that should be done only if a high bar of evidence is met and if this sovereign Parliament—to use a phrase that has been much used—is itself satisfied of that. That is reasonable. It is also not inconsistent with the international law approach under article 46 of the Vienna convention where it is possible, in limited but urgent circumstances, to deviate from an international rule of law if it is necessary to maintain the fundamental internal rule of law of the state. This is not something that has been dreamed up without sound legal foundation, which is why, while I am normally most reluctant to disagree respectfully with two former Lord Chief Justices, Lord Judge and Lord Thomas of Cwmgiedd, both of whom I regard as friends and admire greatly, I do take the view that they take a more restrictive approach than is necessary in this case.

To take a contingent power is not of itself a breach of international law, or of itself a breach of good faith. If that were used disproportionately, or without the sort of checks and balances and proper lock that we have now adopted, I can see that that would be the case. I do not believe that the taking of the power, which has not yet been brought into force and would not be without certain hurdles having been met, itself offends against the principle of the rule of law with every respect. Indeed, I hope that, in that respect, we have managed at all times to adhere to the rule of law. That is why, I am pleased to say, the Government intend to reinstate the parliamentary lock, which was removed by their Lordships as well as those clauses that they found offensive. That was perhaps surprising. I say charitably to my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin) that it was perhaps seen as consequential and inevitable if we removed the commencement part of part 5, to be kind.

The reality is that, because the Government have committed to, and reaffirmed today that they are committed to, restoring the parliamentary lock and gone further and indicated that, in subsequent related pieces of legislation, they will adopt the same approach, that does show an internal consistency, a logic, in what is being done. The situation makes me, as somebody who was a lawyer before I came here, and will, I suspect, still regard myself after I have left here, not happy but satisfied that the proper tests have been met in these exceptional circumstances. That is why I am content to support the Government in these motions to disagree tonight, but with the very profound hope that this is never necessary, that we never come anywhere near this, and that the Prime Minister is able to achieve a deal. If he does come up with a deal, he will have my wholehearted support, and the support of many others with a like view, because that is by far the best outcome for the whole country, for the Union and for business.

At the end of the day, I do not think that the clauses that the Lords sought to remove actually offend against propriety and, for that reason, I am prepared to support the Government tonight. They have shown willingness to be pragmatic, to make compromises and to listen. That should be something that one should applaud. I hope therefore that we will be able to return the Bill to their lordships so they can perhaps reflect that it is not necessary for them to insist upon their amendments.

United Kingdom Internal Market Bill

Sammy Wilson Excerpts

Consideration of Lords amendments
Thursday 10th December 2020 Commons Chamber

[Wendy Chamberlain (North East Fife) (LD)]

I am pleased to have the opportunity to speak today, having been unable to do so on Monday.

Because of the international law-breaking clauses, I believe that insufficient attention has been given to how this Bill affects the devolution settlements, which is a matter of great regret. Throughout its passage, my colleagues and I have been keen to work constructively on that aspect. Now that the law-breaking parts have been taken out of the legislation, I hope we can ensure that the voices of the devolved nations are listened to.

At earlier stages I tabled amendments to ensure that the devolved Administrations had input into the membership of the Competition and Markets Authority, following the precedent set by the Scotland Act 1998. The Lords have made amendments to the common framework and the functioning of the Office for the Internal Market, and on engagement with the devolved Administrations—amendments that build on the devolution settlement rather than undermine it.

I have found the Government’s rationale for refusing these changes to be highly frustrating. A case in point is the interaction between the common frameworks and the UK internal market. Why do we need this legislation when the common market frameworks have buy-in from all the devolved nations? The Government tell us it is because the internal market deals with cross-sector issues, whereas the common frameworks deal with specific sectors. Yet when the Minister appeared before the Scottish Affairs Committee, I asked him whether he could give an example of a cross-sector issue that the Bill will help to solve. He could not. When he wrote to the Committee on this matter—I am grateful to him for doing so—he said:

“We would refer you to pages 81-83 of the White Paper, which sketch out a cross-sector example in the form of an illustrative supply chain in the agri-food area.”

I think that says it all. The Government cannot provide a real-life example of an affected product that is cross-sector. Indeed, the implication in the White Paper is that there are no common frameworks in those different sectors. I do not see how, if the common frameworks are in place, there should be an impact. Therefore, there is no need for the Bill’s provisions.

The Government’s refusal to support Lords amendments on common frameworks, in particular amendments 1B, 1C and 1D, is therefore frustrating, but I am also concerned by the Minister’s response to the Committee on the role of the Office for the Internal Market, which will have huge powers. The worry is that parties involved in trade deals—the example I gave in the Committee was that of US investors—could sue the devolved Administrations or indeed the CMA. The Minister’s response to that point was:

“The CMA is therefore able to accept reporting requests from bodies and individuals with relevant concerns connected to”

the operation of the internal market,

“including those from outside of the UK.”

Although the letter then suggests that such reports would not interfere in devolved competences, can the Minister confirm that, by submitting a request to the CMA, foreign investors could potentially interfere with devolved Administrations? If the CMA refuses such a request, could those foreign investors then challenge that in the court?

The Minister has insisted that is not a political Bill, but given that the Paymaster General just this morning was unable to confirm to me whether the Government would bring forward international law-breaching clauses in future business, such as the Taxation (Post-transition Period) Bill, which the hon. Member for Bromley and Chislehurst (Sir Robert Neill) referred to, if the outcome of the EU negotiations is no deal, then it is clearly nothing but.

[Sammy Wilson (East Antrim) (DUP)]

First, I welcome the fact that the provisions in clauses 42 and 43 safeguarding Northern Ireland’s position within the internal market and its unfettered access to that internal market, and also within the customs union, have been maintained. I am not grateful to the Lords that they have not removed them; it would have been a scandal if they had decided to abandon Northern Ireland in that way.

However, I say to the Minister that if we are maintaining those clauses to safeguard Northern Ireland’s position within the UK market, with unfettered access, and the UK customs territory, thereby ensuring no barriers to trade in the form of tariffs and so on, then the means to deliver that must be in place, because it is still under threat, regardless of the agreement reached in the Joint Committee. Some of these issues are under review. Some businesses in Northern Ireland will still be subject to EU tariffs; therefore, there is a tariff barrier between Northern Ireland and GB. The means of safeguarding and delivering on the commitments made in the Bill are therefore important. What I am surprised about, though, is that the Government have accepted the Lords’ removal of the clauses on state aid.

United Kingdom Internal Market Bill

Sammy Wilson Excerpts

Consideration of Lords amendments
Tuesday 15th December 2020 Commons Chamber

State aid rules under EU law are much wider than traditional subsidies and include anything conferring effectively a competitive advantage. They include tax, tax rules, tax reliefs, taxation measures for particular sectors or undertakings, bank bail-outs, gas tariffs for horticulture, structure of airport landing fees, private health insurance, the issuing of carbon trading emission certificates for free and failing to follow public procurement procedures—the list is endless.

[Sammy Wilson (East Antrim) (DUP)]

I am glad that the hon. Member has highlighted the role that the EU would have in state aid, not only in Northern Ireland but in Scotland, Wales and England where those firms have any connection with Northern Ireland. Does he therefore find it surprising that, while Opposition parties have been complaining about state aid rules not being devolved to them, they are quite happy to have the EU plunder through any support given to industries in their own country?

[Sir William Cash]

They do not have a clue. They are going to get clobbered—they really will—and they do not get it. They just want to go on about devolution without regard to the effect that all this will have. I entirely agree with the right hon. Gentleman.

The Bill itself defines aid with reference to EU law—it refers to article 107 of the treaty on the functioning of the European Union. This is something that we will be affected by, because that amendment is not sufficient to enable us to maintain our sovereignty on all the matters relating to state aid rules. I look to the Prime Minister, I look to the Chancellor of the Duchy of Lancaster, and I look to the Government and the negotiators to get this right. This is the moment to do it. We are at a crucial moment. I trust the Prime Minister. I believe he will deliver. He said he will, and we will hold him to that promise.

It would go against UK national interest to accept EU demands of agreeing to legally binding commitments to mirror the EU state aid regime, given that EU state aid rules are created on the basis of objectives of common interest of EU member states, which no longer includes the UK, and are tested by the Commission on the basis of compatibility criteria that it has developed. They are non-binding guidelines, and therefore they can be changed at will. Under article 132 of the protocol and article 174 of the withdrawal agreement, provisions of the withdrawal agreement and the protocol referring to EU law or to EU law concepts or provisions are to be

“interpreted in conformity with the relevant case law of the Court of Justice of the European Union.”

That duty continues beyond the end of the transition period on 31 December and includes European case law handed down after the end of that period.

There is a real problem here. This is down to the negotiators as well as to those who are responsible for this Bill. We are faced with a very difficult situation, which impinges on our sovereignty and on our necessity to avoid, indeed to prevent, EU state aid rules from continuing to apply to the United Kingdom. This is a crucial moment in our economic, political and constitutional history. We must maintain the sovereignty of the United Kingdom. That is the message that I send to the Government and I trust that the Government and the Prime Minister will deliver it.