Exiting the European Union (Consumer Protection)

Simon Hoare Excerpts

Tuesday 2nd April 2019 Commons Chamber

[Kevin Foster]

I thank the hon. Gentleman for his comments. We can all look back over the past three years and suggest that there were things that we might have done differently or changed.

“If? What? Could?” is great fun to play—hindsight has 20/20 vision—but the other 27 member states have their own red lines. The idea that if I or the hon. Gentleman had walked in as the UK Prime Minister, everyone would have said, “Ah, it’s you! What can we do for you? Let’s offer you a great deal” is for the birds. The other member states would still have had their own red lines.

As I said, the only things for which a negotiated deal is not necessary are a complete no deal and revoking and remaining—the latter for obvious reasons—but if we want a negotiated deal, we need the prism of a withdrawal agreement. There is a strong argument for saying that even if we did go down the no-deal route, we would find at some stage that if we wanted a free trade agreement, the first three items on the EU’s agenda would be: clarifying citizens’ rights, which is not particularly controversial across the House; a financial settlement—that might be where a debate comes in; and arrangements to keep the land border in Northern Ireland open. Whether under a withdrawal agreement now or a free trade agreement in the future, those three issues will almost certainly be the basis of any agreement, no matter which of the panoply of Brexit ideas we have been treated to over the last year or two the House, and ultimately the country, decides upon. Once the divorce process is complete, the second phase of negotiations and decision making in the House remain.

Great though it would be to settle Brexit this afternoon, it is time that I return to the substance of the SI: the geo-blocking regulation. [Interruption.] I hear shouts of joy from the shadow Front Bench. Geo-blocking sounds like something to do with a map—a rambler might find their geo-signal being blocked—but it is actually one part of making sure we have a single market online as we do for physical goods. Those of us who grew up in the late 1980s—I am not sure if my hon. Friend the Member for Solihull (Julian Knight) is old enough, and I am certain the Minister is not—will remember the debate about how much a particular CD or tape cost in the UK, the United States, Canada, Germany and other countries. Nine times out of 10 a CD produced in the same factory, with the same copyright and by the same company would be more expensive in certain countries—that excludes differing VAT rates, of course, because that could change the price in the shop; I am talking about the base cost excluding taxes.

The regulation tried to prevent different prices in different markets arising from differing charging and supply. Those of us who studied European law will know that the Commission tried to eliminate this grey market idea of trying to restrict or increase prices in particular markets across the EU single market—a single market that we will remain a part of during the implementation period, if the withdrawal agreement goes through. The regulation was about making sure the consumers had the full opportunities. Such regulations make a difference. It is eminently sensible that we revoke the regulation—I agree with the Minister’s reasoning, and, as I have said, it would be bizarre if British businesses were under an obligation that EU businesses were not but which EU businesses could enforce against us under our law—but having in place some other appropriate measure would make a difference.

I hope therefore that we could consider that in future trade agreements—and not just with the EU. I have just given the example of the US. With increasing online commerce and trading, we should look to open up to other jurisdictions that use the English language and have similar commercial standards, consumer protections and quality standards. Under future trade agreements, we should look to ensure that businesses large and small that are buying stuff in across our borders can benefit from free trade arrangements.

[Simon Hoare (North Dorset) (Con)]

rose—

[Kevin Foster]

I will give way in a moment.

We want to be able to benefit from a single market online, given that it does not matter if someone buys from Tewkesbury or Texas—or North Dorset, for that matter—if they are sitting at their computer, and as long as the delivery charges are there. It is about that principle of giving consumers access to be best prices possible.

[Simon Hoare]

My hon. Friend mentioned the English language. Does he share my concern that we often forget that it is a key part of our armoury? It is the international language. It is the language of the internet and the language of the skies, and it is now the lingua franca of the world. We should never forget that it is one of our great tools of soft power.

[Kevin Foster]

I hope that my hon. Friend will forgive me for turning my back on him while responding to his intervention. I need to address the House, rather than face him directly.

The English language is indeed one of our great tools. When we look at any regulations relating to online businesses, we should bear in mind that the base code of computers is effectively English, because of the history of computer developments between us and the United States. The first computer, as such, was of course developed here, following the amazing theoretical work done by Alan Turing, who, sadly, was treated abysmally by this nation after the second world war in connection with matters that were never a crime. He came up with the revolutionary 01, and set the philosophical basis that would result in the very trading systems that these regulations seek to address.

This is one of our key goals. It is important that we have an effective and competent system of law relating to online transactions, because if we do not we will lose one of our biggest opportunities. My hon. Friend touched on that. Many people go online and happily access information, services and opportunities. They are able to compare prices in a way that would not have been possible before the internet era, because English is pretty much common currency on many internet platforms—although, given that the regulations relate to online shopping opportunities, it is worth noting that people can now interact with the vast majority of online retailers in the language of their choice. There are also the well-known providers’ translation services that we can now use. I used to have a bit of fun when a former Wales Minister texted to ask if I was here: I would reply in Welsh, courtesy of Google Translate.

I will move on, because I know that other Members wish to speak, and that the debate is time-limited. Some other issues on which the Minister may wish to reflect when she sums up relate to Ireland. We have had a great many discussions about the backstop and how we can keep the Northern Ireland land border open, but in these unique circumstances, someone purchasing online in, for example, County Fermanagh can be only a couple of miles away from the online business—or the business behind the online entity—which is based in, for example, County Donegal. There would of course be a different boundary, particularly in the no-deal scenario for which this measure is intended, and I should like to know how we can ensure that some sort of interaction remains. I think it is safe to say that it would be rather controversial if we did not give clear access to Irish websites.

That, in fact, makes eminent sense. There are businesses, cultural links, and supply chains and delivery networks that work across the border. One road crosses the border 15 times in two miles. If something that I had ordered online was being delivered using that road, the farmhouse involved might be in the United Kingdom and the hay barn in the Irish Republic. We need regulations that could deal with the unique situation near the Irish land border.

The Minister rightly referred to the consent of the Scottish Parliament and the Welsh Assembly, but Northern Ireland is beset by the fact its Assembly is not up and running and doing what those elected by the people of Northern Ireland should be doing. Although it is right that we are moving to ensure that Northern Ireland’s statute book is in order for a no-deal Brexit, it would be interesting to know what thought has been given to this aspect, given that the Northern Ireland Assembly is not working and that, sadly, it is unlikely to be up and running in the next couple of months, when we may see a no-deal exit. What thought is being given at Westminster to ensuring that there is appropriate legislation to cover online shopping and, bluntly, to ensure that legislation requires fairness between websites and fairness in online shopping between the Irish Republic and Northern Ireland?