United Kingdom Internal Market Bill

Sammy Wilson Excerpts

Monday 21st September 2020 Commons Chamber

[Mr Walker]

I absolutely hear what my right hon. and learned Friend has said, and I draw his attention to the words of the Prime Minister, who said that we would simultaneously pursue every possible redress under international law, including those provided by the protocol. In those circumstances, in addition to our steps under domestic law, we would—if we had to—make it clear that we believed that the EU was engaged in a material breach of its duties in good faith as required and provided for under the withdrawal agreement and the Vienna convention on the law of treaties.

[Sammy Wilson (East Antrim) (DUP)]

This is a very important issue. If it is the case that, before the Government introduced the measures contained in this Bill, or those the Minister has promised will be contained in the Finance Bill, he would first pursue the avenues that are open through the withdrawal agreement—the Joint Committee, adjudication and finally the European Court of Justice—does he not recognise that that process itself could be so elongated that the economic damage done by the requirements of the EU could be very severe in Northern Ireland?

[Mr Walker]

The right hon. Gentleman makes a powerful point. That is why we are taking the powers in this Bill, and we would seek the consent of the House before those powers were exercised—it is to ensure that there is a legal default different from the one that he suggests. It is about taking these steps in parallel.

I want to recognise the significant concerns that many Members have raised, which is why we have agreed that a “break glass” provision should be included, requiring the House of Commons to give its approval before these measures are commenced. I will return to the detail of that shortly, but the Committee should be in no doubt that this Government will always seek to ensure that the Belfast/Good Friday agreement is protected and that the political and economic integrity of our United Kingdom is maintained. That is what the Government amendments in this group seek to achieve.

Clauses 11, 40 and 41 of the Bill give effect to the Government’s commitment to give unfettered access to Northern Ireland goods to the whole UK internal market, in line with the protocol. They will ensure that we protect the vast majority of the £8.1 billion of goods sales from Northern Ireland to Great Britain and guarantee Northern Ireland’s place in the UK’s internal market. That will provide vital legal certainty for businesses in Northern Ireland, whose largest market is the rest of the United Kingdom—56% of Northern Ireland’s goods trade is with Great Britain—and deliver on a promise that has been repeatedly made throughout the process of our exit from the European Union.

Clause 11 sets out that qualifying Northern Ireland goods will benefit from mutual recognition and are not discriminated against. It ensures that the mutual recognition principle will apply to all such goods that will also benefit from unfettered access under clause 40. Clause 40 ensures that, in implementing the protocol, authorities must have special regard to the fundamental need to maintain Northern Ireland’s integral place in the UK’s internal market and customs territory and to facilitate the free flow of goods between Northern Ireland and Great Britain. That, of course, applies to trade between Great Britain and Northern Ireland in both directions.

Clause 41 ensures that there will be no new checks, controls or administrative processes on goods moving from Northern Ireland to Great Britain. This clause is in keeping with what the Government have constantly said, including in our manifesto, and in line with our commitments to businesses in the “New Decade, New Approach” agreement.

Clauses 42, 43 and 45 set out the safety net that I have described. Clause 42 ensures that full unfettered access is guaranteed in any scenario by providing a power to disapply or modify the requirement for export declarations or other exit procedures when goods move from Northern Ireland to Great Britain. As the right hon. Member for Leeds Central (Hilary Benn) rightly said on Second Reading, there is no real justification for such declarations being needed to protect the EU’s single market or customs union. It is a wholly reasonable suggestion from the UK that this issue can and should be resolved through the Joint Committee, but if it is not—and this is perhaps where he and I disagree—there needs to be a safety net in place.

--- Later in debate ---

[Gavin Robinson]

I am very grateful for the question, and I know that the Government would respond by saying “Look in the Bill. It is for the Secretary of State and no one else to raise issues or notify the European Union on state aid issues.” I am concerned not just about the operation of that provision, but the chilling effect that the application of state aid rules from the European Union has, when the Government consider the potential support that they could give to businesses in Northern Ireland. Again today, we hear that it applies only to goods and electricity, but I think it applies to services of those manufactured goods as well. I think there is a financial threshold of around half a million pounds, but much more clarity is required from the Government on the application of state aid rules in Northern Ireland, because all I hear is an effort to make sure that the EU does not encroach on GB affairs without any consequential understanding or recognition of—or aspiration to solve—the problems that we will face in Northern Ireland.

[Sammy Wilson]

While the Bill may state that it is up to the Secretary of State to notify the European Commission of any state aid, there is absolutely nothing to stop the Government of the Irish Republic—or indeed, another manufacturer who feels aggrieved that state aid has been given to firms in Northern Ireland that impinges on its ability to compete with those firms—taking a case to the Commission and going through the European mechanism at that stage. Once that happens, we have no representatives on the Commission or the Court, so it would be a one-way ticket as far as the complainant was concerned.

[Gavin Robinson]

My right hon. Friend is absolutely right, and I mentioned the chilling effect. Arguably, if the UK Government and officialdom in Whitehall had not offered such religious observance to EU regulations over the past 40 years, this country would not have agreed to leave the European Union. We know that of other countries in the European Union, France has, en français, an à la carte approach to which regulations are important and which are not. The religious observance of regulations in this country has caused that chill factor and it is why people built up frustrations and resentment on the application of those regulations over the years. There is a fear that that could happen in this case.

Let us consider the Addison Lee case on state aid application of rules in this country. Addison Lee wanted to use bus lanes in London, but it was told it could not use them. Addison Lee took a case on the state aid implications because it thought the state was unfairly given an advantage over Addison Lee in London. The UK Government’s position was “Catch yourself on! It is a UK-funded public service versus a UK private business, and EU state aid rules do not apply” but the EU resolved that, yes, the rules were engaged because Addison Lee could equally have been owned by representatives from another member state. That is how the question was resolved, and Addison Lee can now use bus lanes. I have no doubt that the far-reaching implications of state aid law would open the opportunity for claims from elsewhere.

--- Later in debate ---

[The First Deputy Chairman of Ways and Means (Dame Rosie Winterton)]

I thank the last few speakers, who have stuck brilliantly to the shorter time limit, but I point out that there are still many colleagues who want to get in. If we can stick to the five minutes, that would be very considerate of others who have sat here for a long time wanting to speak.

[Sammy Wilson]

I assume that your remarks were addressed to me, Chair, and I will do my best to respond positively. It is a great joy to follow the hon. Member for North West Cambridgeshire (Mr Vara), who has been a great friend of Northern Ireland and has taken a principled stand during the previous debates on the Brexit negotiations. He is highly regarded in Northern Ireland for his principled stand, his pro-Unionist views and his willingness to make sacrifices for those pro-Unionist views, too.

We will be supporting the Bill this evening and these particular clauses, but I have to say we have some reservations about the extent and the distance that the Government have gone to try to reverse the damage done by the withdrawal agreement and, in particular, the Northern Ireland protocol. I am pleased that the Government now recognise that, either inadvertently or deliberately, damage is being done to not just Northern Ireland, but the United Kingdom as a whole as a result of the withdrawal agreement, and they are trying to reverse it.

Two arguments have been advanced as to why people should oppose the Bill. The first—it has been an obsession in the House this evening, and outside the House over the past number of days—is that it goes against the Good Friday agreement. Indeed, if one looks at the amendments tabled by the nationalist Social Democratic and Labour party and the nationalist Alliance party, it is clear that their only concern is the Good Friday agreement, or their interpretation of the Good Friday agreement. All the amendments that my party have tabled address not the alleged ineffectiveness of the protocol in dealing with the Good Friday agreement, but the real problems that will be caused for Unionists, nationalists, the young, the old, businesses and workers in Northern Ireland by the protocol going through in the form that the EU wishes and by it being imposed in the way the EU wishes.

The protocol will have an effect by putting up costs—that is not my assessment, but the Government’s—reducing opportunities and variety for consumers, impacting on investment and impacting on the trade we do with our biggest market in GB. That is the effect. I will not go through all our amendments, because my hon. Friend the Member for Belfast East (Gavin Robinson) went through them very succinctly and effectively when he was speaking. All our amendments are designed to undo that economic damage.

Let me just address the issue of the Good Friday agreement. It is significant that when pressed about how the Good Friday agreement is damaged, all we can get from those who make that claim is, “Well, it may not actually go against what is written in the Good Friday agreement, but it goes against the spirit of it”, or to use the words of the hon. Member for Belfast South (Claire Hanna), “It goes against the implications”—not the wording, and she admitted that—“of the Good Friday agreement”. She could not find a clause in the Good Friday agreement that was breached by the legislation. Instead, it was the intention and the implication of it.



The truth of the matter is, of course, that the Good Friday agreement is offended by the withdrawal agreement, because the withdrawal agreement affects Northern Ireland politically. Laws will now be made in Brussels rather than in Westminster. Northern Ireland will be subject to rule by the EU; we will be part of its single market rules rather than part of the UK single market.