United Kingdom Internal Market Bill

Stephen Farry 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

[Stephen Farry (North Down) (Alliance)]

We now have a different range of voices from Northern Ireland in this Parliament and I want to make a few things clear at the outset. The majority of people in Northern Ireland voted to remain. They also supported the wrongly maligned backstop and they now pragmatically recognise the need for the protocol, despite its challenges. To be very clear, the majority of people and businesses in Northern Ireland do not want the Government to break international law on their behalf.

Northern Ireland only works on the basis of sharing and interdependence. The problem with any form of hard Brexit is that it requires some form of interface between the UK and the single market and customs union. The protocol is the inevitable consequence of a hard Brexit, in order to address the particular circumstances of Northern Ireland and to protect the Good Friday agreement. We are working off decisions taken here in the UK, not something that the European Union has foisted upon us.

Indeed, I am deeply concerned that the Prime Minister and the Government are twisting and distorting the meaning of the Good Friday agreement for their own political ends. The principle of consent is certainly one major component of the Good Friday agreement, and it is entrenched in the withdrawal agreement, so the Union is not up for grabs in this situation. That is a matter for the people of Northern Ireland to determine in due course. The Good Friday agreement is, in fact, a broad range of relationships across our islands.

The protocol is, in effect, the bare minimum to avoid a hard border on the island of Ireland. If we default on that, we risk a return of some form of border in that context. The European Union is entitled to protect the integrity of the single market and customs union, and that will create a fresh form of tension.

It is pragmatically easier to manage an interface down the Irish sea than across the land border. We are talking about seven air and sea crossings versus 270 land crossings, and the number of daily movements on the island far outweighs the number across the Irish sea. However, we must do all we can to reduce that interface to a minimum—to make it a dotted line. The way to achieve that is through building trust and good faith with the European Union and by working through the mechanisms of the withdrawal agreement—the Joint Committee and, if necessary, the arbitration mechanism—rather than circumventing it. We need to define what flexibilities and modalities we can.

Through their action, the Government are risking having no future relationship with the European Union. That brings huge consequences for the UK economy and makes the impact of the Northern Ireland protocol down the Irish sea even more stark. I support a trade deal with the United States, which is the dream of many Brexiteers who are forgoing the relationship with the European Union. I am not sure that they are picking up that that is a complete dead end if the Good Friday agreement is compromised by this Parliament.

United Kingdom Internal Market Bill

Stephen Farry Excerpts

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

[Stephen Farry (North Down) (Alliance)]

The Minister talks about giving a safety net to the people of Northern Ireland. Does he recognise that the majority of people in Northern Ireland regard the Bill as taking away their safety net by undermining the Good Friday agreement? That is the view in Northern Ireland, and it is important that the Government listen to it, not act contrary to it.

[Paul Scully]

I have spoken to businesses in Northern Ireland, and a number of them are very supportive of this. I suggest that anybody in Northern Ireland or elsewhere in the UK who believes that the Bill actually takes away from the Belfast agreement is listening to the wilful misrepresentation of the Bill by certain people politicking. Actually, the Belfast agreement has a three-strand approach, and the Bill will be a safety net only in the event that we cannot reach agreement with the EU through the Joint Committee.

--- Later in debate ---

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. We have not done too badly, all things considered. However, after the next speaker, I will introduce a four-minute time limit, so that we can get in as many people as possible. I call Stephen Farry.

[Stephen Farry]

Thank you, Madam Deputy Speaker. Regardless of that, I will try to honour what you just said about the length of speeches. I primarily want to speak to amendment 16, in my name and those of others, regarding the removal of the most offensive and dangerous clause in the Bill—clause 45—and I will touch on some other amendments.

At the outset, I want to be extremely clear: the vast majority of people in Northern Ireland and most businesses in Northern Ireland do not want to see this Government breaking or threatening to break international law, period, and they certainly do not want to see it happening on their behalf. Let us get that straight. The Government are not doing this for the good of the people of Northern Ireland.

The breaking of international law undermines the Good Friday agreement, which is lodged with the UN and is part of international law. In particular, breaking the withdrawal agreement and undermining the protocol does not help our businesses one bit. Instead, it places them in a much more uncertain legal situation for doing business. That is not in their interests, because businesses need to operate in a long-term, sustainable legal framework, especially if they are trading internationally. It risks Northern Ireland being turned into some sort of rogue state.

Whatever happens today, it is important that this House ensures that nothing goes forward in the Bill that either threatens or breaches international law, because it is a very dangerous route to go down. The opportunity exists this evening in new clause 1 and my amendment 16. Any efforts to soften that or put hurdles in place to make the prospect of breaking the law more difficult or push it further down the line defeats the purpose, because the threat is still on the table. That is no way for this country to do business internationally, and it sends a worrying message around the world.

Some of the spin in relation to the Bill is extremely disingenuous. In another debate, we heard references to George Orwell’s “Nineteen Eighty-Four” and doublethink, but the Government are taking that to a new level with some of the arguments used today and previously. In particular, we are told that this is about a safety net for Northern Ireland. I have already made the point that this is anything but that. This is about removing the safety net for Northern Ireland by undermining the Good Friday agreement.

The Minister talked about the businesses of Northern Ireland being supportive of the Bill. That is news to me, and I would certainly be keen to hear who those businesses are. He talked about people who are opposing the Bill wilfully misrepresenting the Good Friday agreement. I was there as part of the negotiations on the Good Friday agreement. I saw John Major, Bertie Ahern and others negotiating the agreement. I saw the role of the United States and the European Union. They understand what is at stake here and what the Government are potentially doing. It is extremely arrogant to suggest that people are wilfully misrepresenting the agreement when we are trying to defend it.

The principle of consent is embedded within the withdrawal agreement. The European Union is very clear and keen that that is the case. We can talk about other consent issues all we want, and if we are doing so, we go back to the very first principle: that Brexit itself was imposed upon the people of Northern Ireland against their will. That is when the issue of consent and pulling away from a carefully balanced set of arrangements began.

Some of the amendments tabled today seek to disapply the Human Rights Act in relation to clause 45. I remind the Government that the Good Friday agreement contains reference to the importance of the European convention on human rights, and the Human Rights Act puts that into domestic effect. The Government are talking about protecting the Good Friday agreement, in their terms, while at the self-same time putting in a clause that undermines it clearly and unambiguously. Indeed, the Northern Ireland Human Rights Commission and the Equality Commission, two institutions named in the Good Friday agreement, have expressed deep concern at the amendments that have been tabled by the Government.

Breaching international law will be a dead end for the Government, and I am not sure what they are seeking to achieve by it. The right hon. Member for Wokingham (John Redwood) talked about those on the Opposition Benches undermining the negotiations. The Government are doing that all by themselves at present. This is not a tenable or sustainable direction of travel. Until the Government withdraw the threat of breaking international law, they are not going to get a proper future relationship agreement, or a free trade deal with the United States. It is no longer just an issue of the Democrats and such people as Speaker Pelosi or Vice-President Biden. We now have Mick Mulvaney, President Trump’s special envoy, echoing those self-same comments. This is now a bipartisan issue in the United States. Whenever the Government have been out-Trumped, that is a very clear message of the danger of the route that they are going down.

In relation to us in Northern Ireland, we have to get the best route possible in terms of the protocol. The protocol is the direct outworking of the UK Government’s decisions around Brexit, so the protocol arises from what the UK has decided to do. It is imposing, essentially, binary choices on a society in Northern Ireland that works only through sharing and interdependence. We do not want any borders, but we have to try to work to mitigate the impact of the protocol. The way we do that is through building the trust and confidence of the European Union, so that we can ask for waivers and other forms of mitigations, not through unilaterally seeking to breach the terms of the protocol.

A very clear example is around the issue of export declarations and other export procedures. As part of the withdrawal agreement, the Government have already recognised that that is the prerogative of the European Union under its customs code; however, waiving that would not really threaten the integrity of the EU’s single market or customs union, unlike some other potential aspects. That may well be a fairly easy thing for the EU to give, but we are not going to achieve that if the Government cannot establish that confidence to work in good faith with the European Union and their partners going forward.

I will make two more points. The first is on new clause 7 from my DUP colleagues in Northern Ireland. As Members may have noticed, the Alliance party does not always follow the DUP on Brexit—indeed, we take radically different positions, including on this Bill—but there is common ground in a number of areas, in terms of trying to ensure that we have unfettered access from Northern Ireland into Great Britain. I recommend that the House approve that amendment if it goes to a vote. I do not think that it does any damage to the protocol or the withdrawal agreement, but it tests on a periodic basis the commitments that the Government are making and that are reflected in the withdrawal agreement itself. I have probably gone on for slightly too long, so I will end on that point.

[Simon Baynes (Clwyd South) (Con)]

I approach the Report stage of the Bill as a Welsh MP for a border constituency where protecting and enhancing the relationship between England and Wales, and the whole Union of the United Kingdom, is not a conceptual political argument but a vital matter of day-to-day practicality. Thousands of my constituents in Clwyd South go across the border each day to work, attend school or college, visit family and friends, or go shopping, so I am strong supporter of the Bill, which will ensure that businesses in all parts of the UK can continue to trade seamlessly across the UK as they do now—protecting jobs and supporting the economy by avoiding unnecessary burdens and costs being placed on businesses or consumers.

The rest of the UK is Wales’s biggest trading partner by some way, accounting for 61% of Wales’s exports, worth £30.1 billion, and 64% of Wales’s imports, worth £34.3 billion.

Much of those are found in small businesses close to the border with England, such as those in Clwyd South. This Bill will protect the UK’s centuries-old internal market, by ensuring that goods and services in one part of the UK are recognised in the others, and ensure a fair playing field for all companies. As has been mentioned, the Bill will enshrine the principle of mutual recognition, so that goods and services in one part of the UK will be recognised across the country, and the principle of non-discrimination, so that there is equal opportunity for companies trading within the UK, regardless of where they are based. The Bill will also ensure that high standards are protected across the whole UK by promoting co-operation between the UK Parliament and the devolved legislatures. There will be no reduction in our food hygiene or animal welfare standards.

United Kingdom Internal Market Bill

Stephen Farry Excerpts

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

[Paul Scully]

I can indeed.

Part 5 of the Bill contains vital provisions to ensure that this will always be the case, whatever the outcome of our negotiations within the EU. Since these clauses were originally introduced, the UK and EU have worked constructively together through the withdrawal agreement Joint Committee discussions, which continue to progress, and final decisions are expected in the coming days. I can confirm today that if the solutions being considered in those discussions are agreed, the UK Government will be prepared to remove clause 44, concerning export declarations, from the Bill. The UK Government would also be prepared to deactivate clauses 45 and 47, concerning state aid, such that they could be used only when consistent with the United Kingdom’s rights and obligations under international law.

[Stephen Farry (North Down) (Alliance)]

I wonder whether the Minister could reflect on two points. First, I am relatively new to this place, but my understanding is that there has not been a bigger vote in the other place against a proposal from this House for many decades, if not centuries. Secondly, does he recognise that the majority of people and businesses in Northern Ireland want to see the solutions he set out work through the Joint Committee and not through any breach of international law? It is important that there should be a solid legal framework to enable businesses in Northern Ireland to conduct their affairs.

[Paul Scully]

Indeed, we all want this to be dealt with through the Joint Committee. That is why the discussions are continuing, and that is why, in these crucial hours of negotiations between the UK and the EU, we wish them well in that regard.

--- Later in debate ---

I was struck by what my hon. Friend the Member for South Ribble (Katherine Fletcher) said about the practicalities of this. The United Kingdom needs to be ready for whatever the outcome of these negotiations is. We hope for, we expect and we are working towards achieving a deal that is in the mutual interest of all concerned. In the event that that breaks down—as many have commented, that would involve breaches of good faith and potentially of the law on both sides—we need to be ready to ensure, in exactly the way that our friends and allies in the European Union are, that we have the arrangements and powers in place to deal with whatever consequences might come our way. That is why I believe that the Government are taking the right course and I intend to support these measures and vote against the Lords amendments this evening.

[Stephen Farry]

I want to focus largely on the Lords amendments to part 5 of the Bill and to speak in support of them. I am conscious that we may well be part of a charade this evening, in the light of discussions that are happening elsewhere, but it is surely self-evident that no deal with the European Union can be concluded, let alone ratified, if the offending clauses remain part of the Bill. If we end up with a no-deal situation—I very much hope that we do not—the UK will face huge economic damage and will be forced back to the negotiating table. I think most people privately would recognise that that is the reality. Once again, these issues will have to be addressed and overcome.

Since this House last debated the Bill, we have had the very welcome election of Joe Biden as President of the United States. It is clear that there is no prospect whatsoever of a trade deal with United States if there is any threat to the Good Friday agreement, in particular from this Bill or, indeed, the subsequent taxation Bill that may well follow. Obviously, that is of fundamental importance to the UK going forward. I think that the Biden Administration will be very much open to a deal with the United Kingdom, but that will not come at the price of undermining the Good Friday agreement, which Americans of both parties are extremely proud of in terms of their role in and contribution to. The internal market Bill is not helping those negotiations at all. At best it is a distraction from them, and certainly not a source of leverage, but at worst it gives the indication that the UK cannot be trusted with regard to agreements. In particular, if there is a sudden deadlock around issues of governance, the European Union will be very reluctant to give too much in that respect, given the very sad precedent that has been set. Again, the UK is shooting itself in the foot in terms of crucial negotiations.

I want to stress that the majority of the people of Northern Ireland, the majority of Members of the Northern Ireland Assembly and the majority of businesses in Northern Ireland do not want the UK breaking, or threatening to break, international law on their behalf. The outcomes from this Bill are of course very seductive, but they represent a false solution. The only way to address these issues is via the withdrawal agreement and the Joint Committee on the Withdrawal Agreement. To achieve these flexibilities and derogations, we must again look to that word “trust”, which is again being undermined by these actions. That will make it more difficult to reach a conclusion through the Joint Committee processes.

Breaking international law may give some short-term relief to businesses, but it actually ends up hurting them because it puts them in the situation of not having a secure legal environment in which to do business going forward. That is of fundamental importance to businesses. It also potentially risks the return of a border on the island of Ireland. I know that some people want to dismiss that, but the difficulty comes from the fact that if there is not a guaranteed alternative system via the protocol, the pressure from the EU to protect the integrity of its customs union and single market falls back on the island of Ireland. That is one of the key concerns in terms of how the Good Friday agreement may well be breached through this Bill.

Some people seem to think that everything can stay the same as regards how things operate across these islands. The difficulty is that this reflects the choices made by the UK and its Government around Brexit and the nature of Brexit. Northern Ireland is a different place, and because of those choices special arrangements have to be put in place. The backstop was a better alternative, but the protocol is where we have landed, warts and all in terms of the negative consequences from that.

[Alan Brown]

Yet again we have been reliant on the Lords to try to remedy matters in this Bill, which from the outset has shown a complete disregard both for the rule of law and for devolution. The fact that the Government are going to overrule the Lords amendments tonight prompts the question: what is the point of the Lords even when it is doing good work?

In this Chamber, right from the outset of the debates on the internal market Bill, we have been treated to Back-Bench Tories standing up and telling us that they are proud Unionists. However, saying that they are proud Unionists wedded to the idea of the United Kingdom and the Union jack while supporting a Bill that rides roughshod over devolution shows that they do not really care about the Union, and they do not care about Scotland, or understand Scotland. That goes for the Prime Minister, in particular. We know that the Lords has Unionists, and the Lords has told the Government that this Bill puts the Union at risk. Are the Government and their sycophants wilfully stupid or just naturally stupid, because they are certainly not listening?

I want to focus on Lords amendments 48 and 49, which aim to delete the clauses with the same numbers. This is the real power grab about spending in Scotland. Lord Hope summarised the debate:

“It is difficult to avoid the conclusion that this Government regard devolution as an inconvenience”.—[Official Report, House of Lords, 18 November 2020; Vol. 807, c. 1468.]

As a matter of balance, I will quote Lord Forsyth, who reckoned:

“The…Act of Union…has brought about more than 300 years of prosperity.”—[Official Report, House of Lords, 19 October 2020; Vol. 806, c. 1323.]

If the Union has been so successful and brought so much prosperity, why are this Government having to embark on a levelling-up agenda? Why do Scotland and other regions around the UK have to rely on EU structural funds to plug the gaps from Westminster over the years? Incidentally, the EU has never imposed a single project on Scotland against its will, whereas this Bill allows the Government to create projects and spend money against Scotland’s will. Where is the shared prosperity fund anyway? Sadly, it is missing in action.

If the Union was so successful, why are this Government legislating for support for cultural activities, projects and events that Ministers consider benefit the UK and devolved nations? The same goes for sport, education and training activities. What kind of education projects do they want to impose in Scotland? Why do they think that that should be in the Bill in the first place? It is clear that they want to subject us to a Union jack fest, but I can tell the Minister that that will not go down well in Scotland either; actually, it will help our cause.

We have also been told that infrastructure spending will mean additional money coming to Scotland, yet when we look at the spending review we can see that we have just suffered a 5% cut to our capital budget. It is quite clear that that the Government will top-slice the Scottish budget, take some money off and then recirculate it in Scotland with a Union jack. It is so transparent, and the fact that the national infrastructure policy says that the Bill allows the Government to spend directly in the devolved nations tells us that it has been planned all along.

The consequential clause 49 remains a complete affront. Basically, the UK Government can interfere and spend money in Scotland on projects that might not be wanted by the Scottish Government, and clause 49 then allows them to impose repayment conditions on the taxpayers in Scotland. That is ridiculous—it is a con. Any Scottish Tory who argues that this is not a power grab and who thinks that these conditions are acceptable must be completely devoid of self-respect.

Lord Dunlop, a former Scotland Office Minister, said:

“I hope the Government will think long and hard before overturning in the Commons, on the back of Conservative votes alone, any sensible changes”—[Official Report, House of Lords, 2 November 2020; Vol. 807, c. 585.]

There is no long and hard thinking being done on the Government Benches, but there is by the people of Scotland. Those who voted no in 2014 are changing their minds rapidly, because they know the contempt with which this Government treat Scotland.