Draft Postal Packets (Miscellaneous Amendments) Regulations 2023 Debate
Full Debate: Read Full DebateVictoria Atkins
Main Page: Victoria Atkins (Conservative - Louth and Horncastle)Department Debates - View all Victoria Atkins's debates with the HM Treasury
(1 year, 1 month ago)
General CommitteesBefore we proceed any further, I would like to make two things clear for the Committee. First, the membership of the Committee is not a matter for the Chair; it is a matter for the Committee of Selection, as I set out earlier. The Government Whip is in his place and will have heard the strength of feeling among right hon. and hon. Members on that point. Secondly, Standing Order No. 118(5) requires that the Committee debate the motion
“That the committee has considered”
the draft regulations.
I will now call the Minister to move the motion. I will take no further points of order at this point, but if necessary I will take them later, when she has moved the motion.
I beg to move,
That the Committee has considered the draft Postal Packets (Miscellaneous Amendments) Regulations 2023.
May I say what a pleasure it is to serve under your chairmanship, Mr Pritchard? May I also thank hon. Members, including right hon. and hon. Friends, for coming to this Committee today? I hope that they are able to hear me. I thank them for coming to this Committee. I do understand the sensitivities—
No, I am asking Mr Pritchard to take a point of order. I am not asking to intervene on the Minister; I am making a point of order.
In answer to the right hon. Member’s question, this Committee sitting will end at 9.10 pm. On his wider point, I will say again that I said that when the Minister and shadow Minister were in attendance, we would proceed. The only caveat to that, which the right hon. Member will know—having been here longer than I have, as a distinguished parliamentarian—is that the Committee has to be quorate.
I am agnostic: I am not looking around at who is here, who is not, and who is supporting the Government. I am completely neutral in this. I am looking, procedurally, at whether the Minister and shadow Minister are here, and whether the Committee is quorate. I cannot just make up the rules as we go along. Otherwise, we would have chaos. I call the Minister.
Thank you, Mr Pritchard. To reiterate, I beg to move the motion. Before I start, I do recognise the concerns of right hon. and hon. Members and the care with which they have made their points. I hope that I can answer some of their questions in my speech. As ever, I hope that colleagues from across the House who know me know that I will always do my absolute best to answer questions. Whether I am able to do that in Committee or outside Committee, I will always, always endeavour to help with colleagues’ careful scrutiny of Government legislation.
The statutory instrument before us will provide United Kingdom authorities with powers in relation to postal packets or parcels moving from Great Britain to Northern Ireland. It does nothing more or less than that. It does not, itself, put in place the wider Windsor framework arrangements.
The powers are part of delivering what we promised for consumers and businesses in Northern Ireland. They are necessary to ensure that we can implement the Windsor framework and remove the burdensome regime that the old Northern Ireland protocol would ultimately have required. As I say, I am very aware of the sensitivities and the concerns; indeed, I hope that I can help to clarify what the framework itself requires in respect of parcel movements, so I will try to deal with that now.
If I may just take us back a moment, I think it is important to remember that the Northern Ireland protocol was negotiated in good faith and under extreme pressure. If we cast our minds back to the circumstances in 2019, it was negotiated in good faith, as I say, in an effort to provide solutions to the issues raised about trade, on the island of Ireland and within the United Kingdom, following our exit from the single market.
As the protocol began to be implemented, however, practical issues came to the fore. I know that there are right hon. and hon. Members present who were absolutely forthright, and I think very persuasive, in highlighting the problems that businesses in particular were facing. Our concern has always been that, had it been fully implemented, the Northern Ireland protocol would have required international customs processes for all parcel movements from Great Britain to Northern Ireland. Nobody wants that. Indeed, that is why the Prime Minister, assisted by the Foreign Secretary, the Secretary of State for Northern Ireland and—I will give him a shout-out in due course—the Minister of State, Northern Ireland Office, my hon. Friend the Member for Wycombe (Mr Baker), negotiated a deal with the EU that, frankly, few at the time dared to hope would be possible.
If I may, I just want to set out the circumstances, because I very much hope that that will help with some of the concerns that have been raised. I know that there is a great deal of interest in these arrangements, so I am going to be absolutely clear with the Committee what these measures entail and, importantly, what impact they will have not just for our constituents, but for the United Kingdom family.
In short, someone in Great Britain sending a parcel to their friends or family in Northern Ireland will not need to engage with any customs processes. Nothing will change for those movements compared with today. Similarly, Northern Ireland recipients of parcels sent by their friends or family in Great Britain will not need to engage with any customs processes. Nothing changes compared with today. A grandchild in Blackpool—I pick Blackpool because that was where I went to school, and there is a wonderfully rich Irish community in and around Blackpool and Preston—sending a package to his grandparents in Belfast will not need to do anything new to send it and, importantly, the grandparents will not need to do anything new to receive it.
Businesses in Great Britain selling to consumers in Northern Ireland will not need to complete customs declarations, international or otherwise. Nothing changes. Northern Irish consumers buying from British sellers, including—hon. Members have raised this point with me—the likes of Amazon and other online shops, will not need to engage with any customs processes. Nothing changes. They will buy from the British seller and receive their goods without doing anything new; I say that very clearly for the sake of colleagues here today and for others outside this Committee Room who may be listening. Those facts are now recorded in Hansard and can be scrutinised. I say that very deliberately, so that those who have concerns understand exactly what we have set out in the framework.
The Windsor framework explicitly removes those requirements on goods being sold to Northern Ireland consumers and, of course, on goods being sent to friends and family. There will be no routine checks or controls applied to parcels. There will be interventions only on the basis of a risk-based, intelligence-led approach. That means that the overwhelming majority of parcels will not be subject to checks.
Parcels sent from a business in Great Britain to a business in Northern Ireland will be treated the same as equivalent freight movements. They can be moved through the new green lane when eligible, when it is introduced from October 2024.
I promise I will give way to hon. Friends and Members.
As will be the case for freight movements, the green lane will ensure that eligible goods will no longer require international customs processes; they will instead require only the provision of routine commercial information.
I must give way to my right hon. Friend the Member for Wokingham, and then I will give way to the hon. Member for North Antrim.
The form of this statutory instrument is to amend regulations relating to foreign postal packets. It includes GB-NI postal packets alongside foreign postal packets in important matters in the regulations specified. How can the Government defend that? They are effectively treating Northern Ireland and GB as foreign countries to each other, accepting a form of regulation designed for a true international border and clearly violating the terms of the internal market legislation governing the United Kingdom? [Interruption.]
If I may, I will address that point, and then I promise I will come to the hon. Member for North Antrim in due course. I am pleased that my right hon. Friend the Member for Wokingham used that language, so that I can make it clear for the purposes of Hansard that this is not about trying to differentiate or draw lines around our precious Union.
If I may, I will continue. In relation to the overwhelming majority of parcels, there will be no changes. The one instance in which there will be a requirement to go through green lane processes is where businesses are selling to business from Great Britain to Northern Ireland. I accept that this is—in the phrase used by my hon. Friend the Minister of State, Northern Ireland Office—a hard compromise. I accept that, and I say that with great respect, but we have to make the framework work because we have no alternative. I am not in the business—
I will give way to the hon. Gentleman in a moment; I am still answering my right hon. Friend the Member for Wokingham. Had the Prime Minister not negotiated the new Windsor framework, we would still be bound by the Northern Ireland protocol, and we know the many problems that that posed for both private residents and businesses, so this framework is a real step forward. This SI—which is a very, very small SI in the context of the framework, dealing as it does only with parcel movements—is a step forwards in ensuring that we protect the Union. However, I very much acknowledge and appreciate, as my hon. Friend the Member for Wycombe has, that for people who are committed to the Union and to leaving the EU, it is a hard compromise, but I am afraid that it is one we must take.
The Minister has come to the nub of this matter, because this is about business-to-business trade. I want to know the statistics on which she has based the claim that the vast majority of parcels will be private trade; perhaps she could share those. Secondly, could she outline who will ultimately pay the additional cost that will be put on business to do these things and how long any support will be in place?
Thirdly, the Minister must accept that this measure has the potential to lead to a diversion of trade, forcing businesses in England that really cannot be bothered with the burden of filling in forms to send a very small amount of their overall trade parcel to Northern Ireland. That will force businesses in Northern Ireland to divert trade and do their business elsewhere. Does the Minister accept that that is the likely outcome of this two, three or four years down the line from now?
Fourthly, does the Minister accept that the green lane she has outlined is the safety valve for all of this, in terms of most businesses being able to operate in it? The fact of the matter is that most businesses cannot operate in the green lane—that the green lane is there for only a very few high-class businesses. The vast majority of businesses in Northern Ireland—about 20,000—will not be able to operate in the green lane structure.
Finally, can the Minister—
Order. On that point, I have given latitude for four points of intervention rather than one. The hon. Gentleman will be called to speak if he rises from his chair later, and he will have another opportunity. I know that he is an experienced Member and will respect the view and ruling of the Chair.
I will certainly answer the first of the points the hon. Gentleman made in his intervention—I was not able to catch them all, so I very much hope that he will be able to speak in due course. I will absolutely undertake to write to him if I am not able to deal with them in my speech.
I am told that about 5% of GB to NI parcel movements —please forgive the acronyms—are to Northern Ireland businesses. Within that 5%, the level of checks will be minimal, because we are applying this risk-based and intelligence-led approach to checks. We have not put a percentage on it, other than that it would be within that 5%, but we expect this to be minimal, because the very thing we want to encourage is trade between a thriving GB economy and a thriving Northern Irish economy.
In relation to the green lane and whether only a few businesses will be able to benefit, the answer is no. We expect the use of the green lane to be widespread. We are working to ensure that businesses in Northern Ireland and Great Britain know how to be eligible. Indeed, if there are any observations that the hon. Gentleman and others have as to the challenges that businesses face, or representations that they would like to make, will they please continue to work with us? We genuinely want to make this work for people and businesses—of course we do. As I said, I hope that the hon. Gentleman will be able to continue his speech in due course.
To return to my own speech, I was trying to set out the requirements on businesses and, importantly, the lack of requirements on individuals, families, friends and so on. Movements via the red lane, including those goods destined for the EU, will be subject to the customs processes required by the EU, as I hope colleagues will understand.The Prime Minister negotiated the Windsor framework to ensure that consumers and businesses in Northern Ireland—and, indeed, British businesses selling into Northern Ireland—could benefit by protecting internal trade within the UK.
I have a concern when it comes to the integrity of our United Kingdom, because the final sentence of paragraph 7.6 on page 3 of the explanatory memorandum states:
“This means that prior to this instrument coming into force, postal packets moving within the UK cannot be searched, seized or intercepted by HMRC or Border Force.”
This instrument will therefore change the internal integrity of our United Kingdom and is a huge giveaway of our country’s sovereignty.
I am really pleased that my hon. Friend has brought that up, because it touches on the timing point that colleagues have raised. Understandably, colleagues have asked, “Why is this happening now? Why can’t it wait until October next year?” Of course, the Windsor framework arrangements will come into force in October next year, but there is a limited range of prohibited or restricted goods that are supposed to comply with EU customs rules today—for example, hazardous chemicals and chemicals that can deplete the ozone, and blood diamonds have also been mentioned to me. We do not have those powers at the moment, so we need to fill the gap as quickly as we can, so that in respect of those goods—
May I finish the point, please? We need to ensure that Northern Ireland is not being used as a back door into the EU. I am coming at this matter not necessarily from the perspective of being particularly mindful of what may or may not happen in the single market—I do not know whether I am allowed to say that, but there we go—but because I do not want communities in Northern Ireland to be facing these pressures. I look across the room to those who know far better than I, but I am very conscious and have some small understanding of just how those pressures have been withstood valiantly in the past by communities in Northern Ireland. We want to do everything we can to support them in that and to ensure that they can continue to thrive.
I am bemused by the Minister’s explanation. If she is concerned about hazardous substances, invasive species and the other things that are mentioned in the explanatory memorandum being transferred by post from GB to Northern Ireland, is she not also concerned about them being transferred in parcels from London to Scotland and London to Wales? If the regulations are all about protecting markets, why are the Government singling out Northern Ireland?
I remind the Committee that we are looking at parcels, not at freight—although of course there are extensions in that regard. Of course, if items are being imported into Great Britain via Dover, Harwich, Immingham or wherever, there are separate powers on those goods to protect communities in Great Britain and, I would argue, further afield. I acknowledge the difficulties, particularly for those representing Unionist interests in Northern Ireland, but we wish to move these issues forward, and the Windsor framework is a good deal for the United Kingdom as a whole.
We need powers now to stop non-Northern Irish recipients using Northern Ireland as a back door, which is why we are so keen to pass this provision quickly and to make progress. I imagine that businesses in Northern Ireland, and businesses in Great Britain that wish to conduct business with Northern Ireland, will want to ensure that we can do this as quickly as we can. This was a significant deal for the Government, and I absolutely understand and respect the wish to scrutinise it, but we have to move forwards with this.
The list of goods seems quite general, and I was wondering whether there were more specifics. It refers to
“restricted goods, for example invasive alien species or ozone depleting substances”.
In particular, I am mindful of a company in Shoeburyness that exports seeds. It has already stopped exporting to some EU countries because of problems as a result of Brexit, but I could see it giving up unless there is a definitive list. Is there a list, or will one come out through a further SI?
I want to ensure that I can provide the list to my hon. Friend now. However, just on that wider subject, the situation that he has described is exactly what we want to try to avoid in the future. He will know that there was uncertainty about how the protocol would apply. I think it was the chairman of Marks & Spencer at the time who came on to the radio at some point and talked about the 50 or so checks that M&S had to go through to send products to its stores in Northern Ireland. We want to cut through all of that, and I hope the Windsor framework will help the businesses in my hon. Friend’s constituency. I also hope that he will know that we are putting a great deal of effort into the trader support service to help businesses to navigate these new customs duties. Of course, that is in the freight space as well. The Government want to grow the economy and our relationship with businesses. I am very helpfully reminded that there is published guidance on gov.uk already, but I am happy to provide it separately to my hon. Friend if he wishes to see the complete list. It is published on there already.
I am grateful to the Minister for giving way, and I congratulate her on the clarity with which she is explaining the issue. I will stress that there are people in Northern Ireland who support the Windsor framework and appreciate that it is a good deal. Obviously, with Brexit, there are no perfect solutions to these situations.
Just building on the answer that the Minister has just given about the trader support service, does she recognise that there is a potential role for the Government beyond that to try to promote to GB-based businesses the requirements in terms of selling into Northern Ireland? I think that is an area where more work can be done without impinging directly upon the legal framework that has been agreed.
I am very open to ideas and suggestions, particularly from those parliamentarians who represent Northern Ireland, as to how we can improve that understanding within the Northern Irish business community but also, importantly, here in Great Britain, because I want businesses to continue trading, and indeed to grow their trade, with Northern Ireland.
There are experts in this room who know just how ambitious and powerful the messages of support were from the international community when the Windsor framework was signed about the opportunities available for this corner of the United Kingdom, so I very much hope that this measure is seen as part of that drive and that ambition to help Northern Irish businesses to grow.
I would like to come back to the point where the Minister indicated, essentially, that there will be discrimination between businesses, business dealings and trade. The Minister claims that this issue has been addressed and that this measure is compliant with the European convention on human rights. How does it comply with article 14 of the ECHR, which prevents discrimination between businesses and individuals?
Again, I just remind the Committee that we are dealing with parcel movements here; we are not litigating the entirety of the Windsor framework. As I say, we think it is a really positive step forward for the whole of the United Kingdom. Of course the hon. Gentleman is looking at it—quite rightly—very particularly through the lens of his constituents and Northern Ireland. However, in terms of the whole United Kingdom, and of all our businesses being able to have that certainty about how to deal with the EU, both in relation to Northern Ireland and in our wider relations with the EU, it is a good thing. After years of discussion, we now have an agreement that really gives us all, I hope, some clarity and certainty as to how we will conduct trade with the EU in the future.
As I say, I appreciate that hon. Members have rightly been scrutinising some parts of the agreement, but on the article 14 point, I am required as a Minister to satisfy myself as to the measures. I gently point to the fact that, in terms of individuals to individuals, nothing changes and, in relation to businesses—GB to NI only—nothing changes. It is simply where there may be onward traffic to the EU—as indeed, would be the case if there were onward traffic to the US—that that duty may be payable. I am veering into freight; I am conscious that, in relation to the small group of transactions we are talking about, there is a certain amount of overlap or mirroring, but we are, again, looking just at parcel movements for this SI.
The Minister talks about business to business, but who does business? It is people; people do business. Business to business is about people, and their rights—the company rights and the individual rights of the people doing business—are being trampled upon. Where businesses are doing that business on behalf of other people and consumers, those people are being discriminated against in terms of cost and the diversion of trade, and there will be general discrimination because we in Northern Ireland will be treated differently from the rest of the UK, or the rest of the UK will be treated differently from Northern Ireland—the point the Minister made to my right hon. Friend the Member for East Antrim.
Again, I will try to answer the hon. Gentleman’s intervention as fully as I can. The Windsor framework does not introduce any discrimination against anyone. Businesses do not have human rights in the same way that individuals do. Articles 6, 2 and 8 do not apply to businesses. On his point about the business treatment, the Windsor framework is a positive step forward from what would have happened under the Northern Irish protocol. We have to operate under what would have been because I cannot pretend that the protocol did not exist or that those strictures would not come in in due course. As I say, that is not a commentary on what was negotiated at the time under those extremely difficult circumstances, but the United Kingdom and the EU have got around the table, acknowledged the significant difficulties that have been identified and come up with the Windsor framework, which answers all those concerns and does so, I would say, in a way that really moves our relationship with the EU forward.
If I may, I will make a little progress, but I hope that colleagues feel that I have been generous with interventions.
The Government need to ensure that the powers of HMRC and Border Force are sufficient to allow them to monitor the rules for movements of parcels and that, where certain requirements are in place—the point my hon. Friend the Member for Rochford and Southend East made—for movements intended ultimately for the EU, they can be enforced. We need to be able to determine that parcels destined for the EU can be detected and to ensure that they follow the requirements of the red lane.
I know from conversations outside the Committee Room that some colleagues have read the Secondary Legislation Scrutiny Committee’s report into the rationale for bringing the instrument into force on 31 August. As I have said, some existing rules apply to prevent illicit movements of certain categories of goods, such as invasive species or ozone-depleting chemicals, which is why we are bringing these powers forward to HMRC and Border Force at this time, rather than waiting over a year.
The Committee’s report also noted the arguments submitted to it that the regulations would contravene the principle of unfettered access within the UK by introducing a customs border. Indeed, I have carefully noted the submission by the Democratic Unionist party about its concerns relating to the Good Friday agreement. We acknowledge, as I have said throughout, that there are a range of views on the Windsor framework itself, but these regulations are discrete and relate solely to the powers available to HMRC and Border Force. That said, I hope that I have been able to clarify for hon. Members and hon. Friends what the framework does and does not do, and therefore what the powers granted by the regulations will monitor and enforce.
I thank you, Mr Pritchard, for bringing us to a meaningful debate on this matter. I also thank the Minister; she has been dealt a difficult hand here and she is handling it very well.
The Minister has referred several times to smallness and how this is about small packets, but these are actually big principles. I want to be reassured by what she is saying, but I have a question. It relates specifically to business and the package of information that was brought into the Committee room containing submissions, including the DUP’s submission. I will quote one submission from the Road Haulage Association, on page 15, by way of example. It gives several examples of where the regulations will be changed by this provision:
“after ‘foreign postal packets’ insert ‘and all GB-NI postal packets’”.
So the revised version will read
“foreign postal packets and all GB-NI postal packets”.
In other words,
“movements from GB to NI are no longer considered on the same domestic terms as movements between England, Wales and Scotland”.
Does the Minister understand why there is confusion about this? Does she understand how it causes me and others to have concerns about the introduction of a border within the United Kingdom? Perhaps she can explain why that treatment, in that way, does not constitute an internal border within the United Kingdom.
I genuinely thank my hon. Friend and acknowledge the spirit in which he asked those questions.
Historically, the role of postal parcels has not necessarily been defined in freight. As I said before, with that precise wording we are trying to ensure mirroring for this small cohort—so not between individuals or between businesses to Northern Irish individuals; that does not change. However, we do want to ensure that the mirroring in relation to green lanes and red lanes of freight is clear when it comes to those parcels.
We have been dreaming up interesting examples today in preparation for this, but I have used the example of lace. A business in Great Britain may produce lace and send it to a business in Belfast that makes dresses. If that business sells the dresses within Northern Ireland or back to GB, it will not be affected; it will not see any changes. This kicks in only if some of the dresses are sold to Dublin or further afield. We have tried to ensure that the regulations mirror each other, whether one sends a parcel by post or in a great big container.
I reiterate that the vast majority of parcels will move without any additional requirements on parcel recipients in Northern Ireland. We have pushed genuinely very hard to ensure that the interests of Northern Irish consumers, and of GB businesses selling to Northern Ireland, are protected. There are huge improvements compared with the previous protocol, but we need to manage the risk in relation to movements across the Irish border in order to avoid EU tariffs and regulatory controls. We fully accept that this is a trade-off, but we have put protecting people and businesses in Northern Ireland at the very forefront of our efforts, to try to ensure that we get to a proportioned approach in this mechanism. I hope that answers my hon Friend’s question.
I thought that, in law, and certainly politically, the Good Friday agreement took precedence over other agreements, given its importance. How is this measure in any way compatible with the Good Friday agreement when it does not have the consent of the Unionist community—an important underlying principle of the whole agreement? I would also like to assure the Minister that I do not use the phrase “hard compromise”, and I have not been recommending these kinds of proposals.
I am sorry; I did not catch my right hon. Friend’s last point. Would he repeat it?
I thought the Minister implied earlier that I thought that this was a hard compromise. I do not; I think it is bad policy.
I think my right hon. Friend misheard me. I was referring to the Northern Ireland Minister, the hon. Member for Wycombe (Mr Baker). I would not dream of putting words in the mouth of my right hon. Friend the Member for Wokingham.
A point was made about the Road Haulage Association. The answer to that intervention is that the powers were available to Border Force in respect of international movements. We understand the sensitivities and the concerns raised about making powers available for GB to NI movements, but we would say that that is not the same as making these international movements.
My right hon. Friend the Member for Wokingham asked a very important question about the Good Friday agreement. We do not accept that this is contrary to the Good Friday agreement. These regulations are in fact an enabler to the agreement that we have negotiated. As I said, we have ensured that consumer interests in Northern Ireland and the interests of British businesses selling to Northern Ireland are protected, but that means that an incentive now exists to move goods into Northern Ireland and take them across the Irish border to avoid EU tariffs. If we are to manage that risk—[Interruption.]
Order. So that we are absolutely clear, we will return here after 15 minutes if there is one Division. For subsequent Divisions, 10 minutes will be allowed. If the Minister and shadow Minister are present and we are quorate, the proceedings will resume.
I am conscious of the interest in the room, so to give others a chance to speak I propose to sum up very quickly by simply saying that the parcels arrangements are a significant improvement for UK citizens compared with the requirements under the old Northern Ireland protocol. However, it is vital to understand how little will change compared to the status quo for the vast majority of Northern Irish parcel recipients and those in Great Britain sending goods to them. I commend the regulations to the Committee.
The new time for the end of the proceedings will be 21 minutes past 9. I ask colleagues to rise if they wish to speak, in order to help the Clerks and the Chair. There is no time limit on speeches, but speakers may want to be mindful of allowing the shadow Minister and the Minister to respond to the debate.
We acknowledge the range of views on the framework, but I emphasise that the SI is solely concerned with the powers available to HMRC and Border Force to ensure that the improvements in respect of policies that we have secured through the Windsor framework are implemented.
I would like to answer the shadow Minister’s questions and then I will happily give way.
In terms of HMRC, we are fully confident that we have the staff and resources to meet the expectations of not just this element, but the whole Windsor framework.
I give way to my hon. Friend the Member for Rochford and Southend East.
I was standing to be called in the debate to make my 18 points; I was not asking the Minister to give way—apologies.