Northern Ireland Protocol: Implementation Proposals

Simon Hoare Excerpts

Wednesday 18th November 2020 Commons Chamber

[Mr Walker]

Delivering on the protocol is a crucial part of operations for the end of the transition period. Providing certainty is urgent and we will continue to prioritise this. As we implement the protocol, it is important to keep in mind that it was designed as a way of implementing the needs of our exit from the EU in a way that works for Northern Ireland and, in particular, as the hon. Lady says, maintaining the Belfast/Good Friday agreement in all its dimensions—the gains of the peace process and the delicate balance across communities that explicitly depends on the consent of the people of Northern Ireland for its continued existence.

For the protocol to work, it must respect the needs of all Northern Ireland’s people, respect the fact that Northern Ireland is an integral part of the customs territory of the UK, and be implemented in a way that protects Northern Ireland’s economy. Our approach does that, focusing on implementing the protocol in a way that is flexible and proportionate, and protecting the interests of both the whole of the United Kingdom and the EU. As I have already referred to, the Government have already taken practical steps to do this, working in partnership with the devolved Administration.

The hon. Lady referred to the delivery of IT systems. I can confirm that the delivery of IT systems necessary for the end of the transition period is on track. The recent National Audit report confirms that since May, Her Majesty’s Revenue and Customs has made progress, putting in place the core elements of the IT services required. As a responsible Government, however, we continue to make extensive preparations for a range of fall-back scenarios. We have been working with key delivery partners to support preparations for IT systems delivery, and we will continue to support their preparations for the end of the transition period.

We are reaching agreement with the EU on individual areas of approach—for instance, the phased approach to medicines that I referred to, and agreement on the process for identifying Northern Ireland traders for VAT purposes and enabling them to reclaim VAT through existing IT databases when trading in goods with the EU. However, the hon. Lady is right to reflect that there remain important outstanding issues to be resolved in discussion with the EU. For example, we are seeking, through the Joint Committee, specific solutions to supermarkets and on the classification of which goods are at genuine and substantial risk of entering the EU market. Those are still subject to discussion and need to be agreed with the EU. There are real-world consequences for businesses and consumers if they are not, which we believe would be contrary to the intentions of the protocol. We have agreed with the EU to intensify the process of engagement, to resolve all outstanding issues. These discussions are ongoing and we continue to act in good faith and in line with the approach we have adopted throughout.

The Government are committed to ensuring that businesses and communities are ready for the end of the transition period, and our intensive programme of engagement with industry has continued at pace. The business engagement forum has now met 20 times since May, and this month the Chancellor of the Duchy of Lancaster formed a UK-wide business readiness task- force. The hon. Lady talked about the importance of supermarkets and food producers, and I can confirm to her that one of the most recent meetings was between the Secretary of State and supermarkets in the industry.

We have also made considerable progress in the provision of guidance, publishing over 25 pieces of sectoral guidance in recent weeks for moving goods between Northern Ireland and Great Britain. We will continue to work with businesses in this manner and ensure that they are provided with the guidance and support they need to be ready.

[Simon Hoare (North Dorset) (Con) [V]]

It is 43 days until 31 December and covid-hit businesses are exasperated —and I share that exasperation. Every witness the Select Committee on Northern Ireland Affairs has heard from says that they wish to obey the rules, whatever they are. When are they going to know definitively what they have to do and how they have to do it, in order to keep themselves in business and on the right side of the law?

[Mr Walker]

I absolutely recognise the concern that businesses have, which has been reflected to me and to the Secretary of State in our meetings, and their desire to have absolute certainty on this. As my hon. Friend will recognise, some of these things are still subject to ongoing negotiations with the EU; of course, I would much rather that those things had already been resolved, as I know he would. However, we want to ensure that for those things that are within our gift, we provide that certainty, and the UK Government are doing that when it comes to unfettered access. For those things that stand to be resolved, we continue to negotiate in good faith to resolve them so that we can put that information in front of businesses, but what we are doing already is progressively providing guidance where agreements have been reached. We will continue to pursue that.