(1Â week, 3Â days ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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Chris McDonald
I thank the hon. Gentleman for raising that. He raises concerns around bureaucracy and paperwork, essentially, for small businesses, and the hon. and learned Member for North Antrim mentioned our own House of Commons gift shop as well for low value items. I very much want to come on to this point in my speech, so I am grateful to the hon. Gentleman for raising it.
I will start by talking about the general performance of Northern Ireland trade with the rest of the United Kingdom. Northern Ireland’s goods exports within the UK and with the European Union have been strong. In fact, Northern Ireland’s exports to the European Union have outperformed the rest of the United Kingdom, increasing since 2019, whereas in the rest of the United Kingdom, exports have decreased in that period. It is therefore important to note that Northern Ireland does benefit from being a fundamental part of the UK internal market and having unique access to the EU single market. Of course, I do recognise—and the point was made by the hon. and learned Member for North Antrim—that this experience varies across sectors, companies and individual constituents, which is why this debate is so valuable. I will go on to talk more about that.
I understand the challenges around this, but public authorities have a statutory requirement to have special regard for Northern Ireland’s place in the United Kingdom internal market under section 46 of the United Kingdom Internal Market Act 2020. That guidance gives real statutory power to ensure that policymakers within the United Kingdom actively consider Northern Ireland’s place in the internal market when they are implementing the Windsor framework or making policy involving the movement of goods in the United Kingdom. Where that is the case, the statutory guidance ensures that those policymakers must have special regard for Northern Ireland’s place in the UK internal market.
Most importantly, one part of having special regard means the need to facilitate the free flow of goods between Great Britain and Northern Ireland, with the aim of streamlining trade between the two, and maintaining and strengthening the integrity and smooth operation of our internal market. The guidance ensures that policymakers must give that special regard considerable importance and weight above other factors in policymaking. That represents how this Government have implemented a key commitment in the “Safeguarding the Union” Command Paper published under the previous Government to ensure that proper process is in place to always consider both Northern Ireland’s place in the UK internal market and the flow of goods between Great Britain and Northern Ireland.
Members have spoken in detail about the Windsor framework and the challenges it brings. I would like to stress that the Government are wholly committed to the Windsor framework. The framework supports the peace and prosperity brought by the Good Friday agreement, one of the proudest achievements of our last Labour Government, and it plays a vital role in ensuring the smooth flow of goods between Great Britain and Northern Ireland, but of course I recognise the concerns raised by hon. Members.
It is clear that the Windsor framework is delivering benefits and smoothing the flow of goods between Great Britain and Northern Ireland. I have already noted how the Northern Ireland-Great Britain supply of goods has been maintained through the implementation of the framework. Over 15,000 traders are now signed up to the UK internal market scheme, and more than 1,100 operators are registered for the Northern Ireland retail movement scheme and the Northern Ireland plant health label. Northern Ireland traders are benefiting from these facilitations, and businesses are choosing to invest in the dual market access that Northern Ireland uniquely offers.
The hon. and learned Member for North Antrim is concerned about the level of investment and believes that businesses will not wish to invest in Northern Ireland for that reason. On my recent visit to Northern Ireland, however, I saw significant investment from Boeing, Airbus, Navantia and many other businesses. It is clear that this is not a uniform experience across all businesses, but it has been possible for Northern Ireland to attract significant inward investment.
Although the Minister paints a picture of firms signing up and supply still coming through, does he accept that the FSB has indicated that in retail, plant nurseries and firms that use steel, 32% of small businesses in those sectors in GB are no longer supplying to Northern Ireland? He cannot ignore the problem of suppliers stopping supplying from GB and businesses in Northern Ireland not being able to get the supplies that they were previously able to get.
Chris McDonald
Far from trying to ignore issues, I am trying to explain that it is quite a complex situation. I have already acknowledged that there are concerns in particular sectors and with particular companies, but as I have said, I think it is important to take a more balanced approach. Overall, in my view and the Government’s view, and according to the economic numbers that I have presented, the Windsor framework is in fact having a net positive effect on the economy in Northern Ireland.
For example, the company Evri has invested in Northern Ireland being home to the new EU gateway. In Lisburn, PRM Group, which is a major chilled and frozen food distributor, has said that this influenced its investment decision, as well as the growth of its business. Businesses in other sectors, from medical devices to advanced manufacturing and consumer goods, have made a similar call.
I recognise that if businesses and consumers are to benefit from the Windsor framework, they must have access to clear advice and guidance. In our response to Lord Murphy’s review, the Government committed to strengthen our offer, and we are taking action in that regard. We are building on the comprehensive support available through the free trader support service beyond 2026, and work is under way to progress the £16.6 million regulatory support service, which will provide clear and targeted support to help businesses to trade across the UK and EU markets and to benefit from Northern Ireland’s unique dual market access. I am personally grateful to businesses and civic stakeholders for their engagement on this project as we design and build the new service.
(3Â months, 3Â weeks ago)
Commons Chamber
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)
As I mentioned in answer to an earlier question, we are concerned about the role of third-party intermediaries and the proper functioning of the market, and, subject to finding parliamentary time, we intend to bring forward the opportunity for Ofgem to act as a regulator in that regard. The hon. Gentleman’s question clearly identifies why it is so important that we return to energy stability in the UK through our own home-grown clean energy.
In an earlier answer, the Minister for Energy mentioned the money being spent on carbon capture, but has he considered the impact of his net zero policies on carbon release? Last week, I visited a site in the Sperrins where 250,000 metric tonnes of peat are to be stripped from the hillside in order to put in the infrastructure for a wind farm. That is similar to what is happening on peatlands all over England. What assessment has the Minister made of the impact of that and will he—
(7Â months, 2Â weeks ago)
Commons ChamberLast week the Government pushed through the imposition of the emissions trading scheme on domestic shipping. That will have a huge impact on Northern Ireland, because so many goods are brought into Northern Ireland from GB, or sent there, on ferries. What assessment has the Minister made of the impact this will have on consumer prices and manufacturing costs in Northern Ireland? Does he recognise that Northern Ireland will face heavy costs because of this net zero policy?
Chris McDonald
The right hon. Member and I debated this at length in the Delegated Legislation Committee last week. On the impact of this measure on Northern Ireland, I am sure he will be pleased to welcome the fact that we are providing a 50% reduction on the carbon tax associated with the extension to domestic maritime for journeys to Northern Ireland, to ensure that they are not disadvantaged when compared with journeys to the Republic of Ireland.
(7Â months, 3Â weeks ago)
General Committees
Chris McDonald
Yes, I am very happy to extend that invitation for a further meeting with any Members of the House who wish to discuss the matter. Of course, there has been extensive consultation on this statutory instrument.
Chris McDonald
I have given way multiple times, which I am sure the right hon. Gentleman will appreciate. I think it is time I brought the debate to a close.
These changes have the support of all four Governments of the United Kingdom, and consensus in advancing carbon pricing policy to include domestic maritime is key to delivering our decarbonisation goals and driving green investment across the United Kingdom. I commend the draft order to the Committee.
Question put.
(10Â months ago)
Commons Chamber
Chris McDonald
My hon. and gallant Friend is right to raise the issue of AUKUS. I omitted AUKUS from the long list of international collaborations in my speech, but of course, there is an important role for AUKUS here through co-ordination between the nations involved. Our procurement reforms with the MOD will involve a supply chain centre where we will work with such international partners. He is also right to point out the economic opportunity through the export orders that the UK has recently secured. Having a supply chain of critical minerals in the UK will help the security of those exports.
Anyone listening to this statement should be fearful for the future of energy production in this country. On the one hand, we have a Government who are totally committed to net zero, the elements of which will require huge inputs of critical minerals. On the other hand, the Minister tells us that by 2035 we cannot expect to supply more than 10% by ourselves and will still be reliant on some other countries for 60%. We have no control, or no political control, over the global distribution of those metals. Does he not accept that this strategy, rather than being one of assurance for the future, could leave us increasingly vulnerable to people who have control over materials that we need for energy production, and that we should not be turning our back on the gas and oil we have?
(10Â months, 1Â week ago)
Commons Chamber
Chris McDonald
I am pleased to meet another Member from a steelworker family. In fact, Ravenscraig is a plant that I never had the opportunity to work on, but I worked with many people who did, and they always spoke of the great sense of camaraderie among the workforce there. I absolutely refute the suggestion that this Government are not attracting investment. In fact, for Scotland alone, we have seen £800 million of investment in battery storage projects by Copenhagen Infrastructure Partners and £55 million has been awarded to the port of Cromarty Firth for small floating offshore wind. These are the industries of the future and the industries in which people in Scotland will be able to work in—in fact, they already are. The real responsibility of Government is to ensure that we help people to transition across into these industries. Fundamentally, that is the difference between this Government and every previous Conservative Government—and certainly the one in office over the past 14 years.
The Minister says that he and the Government have no bias against the people of Scotland, but they certainly have not done very well out of this Government—1,000 jobs being lost a month in the North sea, and now today’s announcement. He attributes it all to a commercial decision. That commercial decision was made in a hostile economic environment. He has told us some of the factors there: carbon taxes imposed by this Government, lack of supply as a result of the reduction in North sea production, and the energy prices as a result of the increasing reliance on wind energy. The common thread through it all is the Government’s net zero policies. Why can they not be honest with us and just tell us that these net zero policies are robbing the United Kingdom of all its energy-intensive industries and that this will not be the last job loss announcement that we will hear in this House?
Chris McDonald
The right hon. Member speaks of 1,000 jobs a month being lost in the North sea oil and gas industry. That is not a figure I recognise, so I would be happy if he would share the source of that figure with me. However, I have some figures of my own to trade, if he wishes to know them. We are expecting 800,000 jobs to be created in the clean energy industries. We have attracted ÂŁ52 billion of private sector investment since July 2024, and ÂŁ5 billion per year of gross value added to the UK economy from carbon capture and storage alone by 2050.