Draft Product Safety and Metrology etc. (Amendment etc.) (EU Exit) Regulations 2019

Maria Eagle Excerpts

Tuesday 12th March 2019 General Committees

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

I beg to move,

That the Committee has considered the draft Product Safety and Metrology etc. (Amendment etc.) (EU Exit) Regulations 2019.

It is a pleasure to serve under your chairmanship, Mr Gray. Since the referendum decision to leave the EU, the Department for Business, Energy and Industrial Strategy has undertaken a significant amount of work on withdrawal agreements, preparing for a range of potential outcomes, including a no-deal scenario. This statutory instrument has a single, yet crucial, objective to continue to protect consumers and give businesses the clarity that is needed to operate under a no-deal scenario. It will ensure that in the event of no deal, the UK continues to have a robust and highly effective product safety and legal metrology regime.

The UK product safety and legal metrology regime is among the strongest in the world. The toys our children play with, the electrical items in our homes and the petrol pumps on our garage forecourts all rely on the legal framework carried by that legislative regime, and it is vital that post exit we retain such a robust system. This SI will not change the system or approach, which I know are supported by business and enforcement authorities.

The changes made by this instrument to 38 product safety and metrology laws will ensure that the UK’s product safety and legal metrology framework will remain as it is—as followed by the UK as an EU member state—but that it is converted into a UK regime. The changes include: retaining the requirement for conformity assessments to ensure products meet the essential requirements set out in the legislation; retaining the need for assessment by a third-party organisation to confirm that a product can be placed on the market, where it is currently required; retaining the standard systems to give rise to presumptions of conformity with the legislative requirements; and ensuring UK market surveillance systems will continue to work, to limit the number of unsafe and non-compliant goods available to UK consumers and businesses.

Without this no-deal SI, we risk disruption and confusion for businesses and enforcing authorities, limiting our ability to remove a wide range of unsafe or non-compliant everyday and high-risk products from the market, as there will be uncertainty about the extent, impact and application of the existing legislation.

Before I set out the key provisions in more detail, I will explain the approach we have taken and highlight what we have done to make an unusually large SI easier to navigate. We are laying a number of separate product regulations before the House together, because there are many cross-cutting issues that are the same for the majority of products featured. They have similar definitions, obligations and requirements needing similar fixes, and it made sense to group them together into one SI. For example, many of the product areas require third-party conformity assessment bodies to assess the products against the legislative requirements and some require the manufacturer to self-certify and mark the product, as confirmation that the product complies with the requirements. This similarity across the SI makes it easier to use for businesses that have to comply with the legislation and for the enforcement authorities, such as trading standards, which advise and enforce across the wide product safety system.

Another reason for the size of the instrument is the lengthy technical schedules that are included. These are widely used by industry. Including them together removes the effort for business and stakeholders in having to cross-reference separate EU directives and allows them to understand the requirements of UK law, given that they are all set out in one place alongside the related product schedule. Incorporating those annexes accounts for a third of the SI.

Throughout November, after the publication of the technical notices, the draft SI was shared with several stakeholders for information, via a series of reading rooms. The purpose of this exercise was to inform and update stakeholders on our plans for the product safety and legal metrology framework after exit. Stakeholders told us that this was a worthwhile exercise, reassuring them about our approach, which they supported. Furthermore, this engagement has meant that we have been able to understand the main requirements and concerns of businesses, industry experts and enforcement agencies, which were also able to give their feedback on some specifics about the draft SI, and which we welcomed, allowing us to make drafting amendments as appropriate.

[Maria Eagle (Garston and Halewood) (Lab)]

I am interested to hear the Minister refer to stakeholders and these reading rooms. It is all very well referring to business, but there are other interests—what about consumers? Were there any consumer organisations at these reading rooms? We do not have a number for how many stakeholders in each area were actually consulted.

[Kelly Tolhurst]

I thank the hon. Lady for that intervention, and I can answer her questions. We consulted with more than 6,000 business, which are quite important in this legislation as they have to understand and implement it, and are ultimately responsible for placing safe products in the marketplace. It was therefore vital that we could confirm that with stakeholders. I can reassure the hon. Lady that organisations such as Which? were invited to our reading rooms and fed into the process, and that consumer groups were given the same amount of access to the draft SI.

I appreciate that there are concerns about the impact of such a significant instrument on business. Despite being de minimis, we have completed and published a full impact assessment given the importance of this SI and in the interests of transparency. During development of it, we have been mindful of the impact on business of the changes to processes as a result of the UK’s exit from the EU. Where possible, we have made specific arrangements, including an 18-month transitional period for importers regarding labelling and a 90-day transition period for notifying a new UK database of cosmetic ingredients. Businesses have welcomed that.

Having touched on process, I move on to addressing some more detailed points about the substance of the regulations, given the issues that cut across many of the individual schedules. The regulations provide for continued recognition of goods assessed against EU regulatory requirements, including continued acceptance of products lawfully carrying the CE marking and of product certifications carried out by EU recognised bodies. This means that products that meet EU requirements in these areas can still be placed on the UK market after exit. In the event the UK leaves the EU without a deal, this is intended to be for a time-limited period and will help minimise disruption to the public and business in the event of no deal. At the same time, the regulations establish an equivalent UK framework to ensure that the legislation functions domestically once we leave.

I will now turn in more detail towards some of the further elements of the framework, including the new UKCA marking and the establishment of UK approved bodies.

--- Later in debate ---

[Maria Eagle]

It is a pleasure to serve under your chairmanship, Mr Gray. I thank both Front Benchers for the way in which they set out the points they made, and the SNP spokesman for his contribution.

I am deeply concerned about this SI. Apart from the fact that it is as thick as a brick and weighs probably more than that, I find it difficult to conceive that anybody who might be affected by it could understand the meaning of it by reading it. It simply is not possible.

Let me give the Minister an example of what I mean: if we turn to schedule 26, which is on page 318 and is something I have picked out at random, it sets out the amendments to the Non-automatic Weighing Instruments Regulations 2016. The schedule goes on to set out what the amendments to those regulations are, but needless to say, the regulations that are being amended are in a different document that, by the way, is not in the room. If I wanted to assure myself that the measures in the SI were doing what they purported to do, it would be difficult for me to do so, because I do not even have the document that is being amended present in the Committee Room.

I know we now have the wonders of the internet, but when I was a Minister it was the practice always to have present in the Committee Room all those documents—primary legislation and statutory instruments—that were being amended, so that if somebody sitting in the Committee wished to consider whether a particular clause was doing what the Minister, in all good faith, said it was doing, they could check that. It is impossible today for us to do that.

It is impossible—and it will be impossible should this instrument pass—for anybody picking it up and reading it to understand, without having a whole library of legislation, what on earth the provisions are doing and whether what they purport to do is what they do do, or whether, because the civil service is so hard-pressed these days from having to produce these documents, there has been some technical error in the drafting. That is a problem that I have referred to in other SI Committees. Not having the documents that are being amended in the room is a problem.

I turn now to the fact that this is the Tyrannosaurus rex of SIs, or the Giganotosaurus—one of those enormous dinosaurs that got really, really large—and the impact assessment tells me in annex A that 38 pieces of legislation are subject to amendment by this SI. Some of them are extremely important bits of legislation in terms of public and consumer safety. They are also extremely varied, from the General Product Safety Regulations 2005 through to specific regulations such as those on toy safety, the making available on the market and supervision of transfers of explosives, aerosol dispensers, gas appliances, cosmetics and cosmetic products, intoxicating liquor, consumer protection more generally, weights and measures, and all kinds of things. I could read out all 38 pieces of legislation, but that would detain the Committee for too long. However, that is an illustration of the problem.

[Hannah Bardell]

The hon. Lady is making a powerful and appropriate point. Those 38 measures include ones on offshore installations: the Offshore Installations (Safety Case) Regulations 2005 and the Offshore Installations (Offshore Safety Directive) (Safety Case etc.) Regulations 2015. What business do those have being in a document with cosmetics? That is not to diminish the importance of regulations about cosmetics, but those on offshore installations are vital and should have had specific time dedicated to them. Is not the reality that we are in such a rush and a dash to do something that might never even need to be used that such things are being rushed through without proper scrutiny?

[Maria Eagle]

I cannot but agree with the hon. Lady. The scope and range of the legislation subject to amendment by this one SI are extensive and startling. Many of those pieces of legislation do not have obvious connections to others being amended by the same instrument.

I must agree with my hon. Friend the Member for Sheffield, Brightside and Hillsborough about the assessment of the costs of implementation. I bear in mind the fact that the Minister has said, in total good faith I am sure, that the aim of the draft regulations is to keep things as they are in the envisaged circumstances of no deal. I do not suggest for a minute that there is any bad faith in any of this, but it is impossible for us to consider properly whether what the Minister seeks to ensure happens will actually happen. The extent and size of the regulations, and the way in which the legislation is written, with the powers that Ministers have given themselves to change legislation, is impossible to scrutinise properly.

In answer to my intervention, the Minister told us about stakeholder reading rooms and the 6,000 businesses involved. That sounds like a lot until one turns to page 21 of the impact assessment: the number of manufacturing industries covered by specific product safety regulations amounts to 24,255. Just over the page, in table A1.2, we see that other manufacturing industries producing consumer products amount to 38,614. The wholesale industries affected consist of some thousands more and the retail industries affected consist of very many thousands more businesses.

I also note that paragraph 87, on page 17 of the impact assessment, states:

“Based on data from the ONS…around 95% of manufacturing businesses and over 96% of distributors in the industries affected by the SI are small or micro businesses.”

Those are exactly the kinds of businesses that simply do not have the time or capacity—if they are to stay in business—to buy this statutory instrument; to look in it to cross-reference it to the EU directives, other statutory instruments and primary legislation that it amends; to understand and interpret the legal language, of which there is a lot; and therefore to understand what their obligations are.

I, too, will vote against the draft regulations because they are too large a piece of legislation, with too wide a scope to enable those of us scrutinising it in Committee the appropriate opportunity to do so properly. Not only that, but even after the SI passes, it will be almost impossible for anybody who is bound by an element of it to pick it up and understand what on earth it is that they are bound by.

The Minister says that the SI is not intended to make any changes, but changes may have been made, even inadvertently, through the language it uses. We have been unable to check that; I certainly could not check that in Committee today, in respect of even one of the pieces of legislation it amends, never mind 38 of them. It is an exceedingly bad way of making law, it is to be deplored, and I will not be supporting it.

[Kelly Tolhurst]

I thank Committee members for their contributions. I will correct a statement I made to the hon. Member for Garston and Halewood. I said that over 6,000 businesses had been part of the consultation, but the number was 4,000—I knew that, but I was thinking about a figure for something else. I apologise.

The reason the SI is 600 pages long is purely to allow us to bring changes across a number of pieces of product safety together into one bundle, to make it easy for businesses, trade associations, enforcers and consumers to go to one place to find all the legislation that affects similar and cross-cutting issues, in a no-deal scenario. There is absolutely no intention to use this process as an opportunity to reduce transparency or the amount of scrutiny that SIs receive.

The hon. Member for Garston and Halewood is quite right that the intention of the SI is absolutely not to change policy; it is about making the statute book function from day one, were we to leave the European Union without a deal. As a Minister responsible for this area, and having spent my whole life prior to entering the House working with products, whether in the European Union or the UK, I would not want my legacy to be to have done something detrimental to consumers or businesses in a no-deal situation.

[Maria Eagle]

The Minister is being generous in giving way. I accept that the regulations are all in one place, but does she accept my point that if a fictional local businessman from a microbusiness were to come along and think, “Well, I need to check what I am doing if there is no deal,” he would be unable to understand what on earth this meant. It refers to documents that are not attached to it. Anyone would need to have the House of Commons Library available in order to get all the documents together to cross-reference them and understand what on earth any of it means

[Kelly Tolhurst]

I understand the hon. Lady’s concerns, but the majority of the changes in this SI are fixes. I take her point; she is an experienced parliamentarian who has been a Minister in the past. I understand that I am doing things in a way that are not really up to the standard that she would have expected from me. However, on the issue of establishing a framework, businesses are keen to have all the information in one place, where it is simple to access. I know from my previously work that having to keep up to date with EU regulation, which changes every other week, can sometimes be a challenge. The beauty of this arrangement is that it is a UK framework. It does not make a policy change; it concerns a functioning statute book after exit.

We have consulted businesses and trade associations because, in the event of no deal, they are fundamentally responsible for product safety. We have engaged with business. I do not know whether members of the Committee have been lobbied directly by firms, but I have had MPs ask me when the mega-bundle is going through and the SI coming to the House, because they want assurances on EU exit, particularly on conformity. I know that what I am saying might not alleviate some of the Opposition’s concerns, but I want to make it clear that these provisions are about making the process easier for enforcers and businesses, so that we are able to maintain the high standards that we currently have in the UK.

I mentioned that there are no significant changes to elements of product safety. The measures are about fixes and making the process workable. Many of the businesses that will be interested in the SI, or need to understand its content, will not need to refer to all 600 pages. They obviously include the 38 different sets of regulations that cover different areas. We have put the schedules in with those 38 areas, alongside the changes, so that people can turn to the specific areas in the UK framework that interest them.

As for business impact, there will of course be an impact on business when moving to any new framework. In the event of a no-deal scenario, businesses or individuals may have to familiarise themselves with particular changes. To be frank, it is quite within the competence of organisations that are already adhering to the existing legislation to understand where the small changes have been made.

The hon. Member for Sheffield, Brightside and Hillsborough asked how we will assess the timeframe in which we will continue to maintain or accept the CE mark for products placed on the UK market. The timeframe is yet to be decided. It will be discussed in conjunction with businesses and interested parties. The focus is on making this an easy transition for businesses in the UK and for the flow of products. The intention is to have a UK mark so that UK manufacturers, when they have to place a product on the UK market, can establish that they are certified in the UK and meet the necessary requirements.

In a no-deal scenario, however, any UK business wanting to place a product on the EU market would still have to comply with certain regulations there. Currently, the EU has said that it will not recognise or accept the UKCA mark. Quite rightly, the EU has the CE mark to indicate conformity. Any acceptance of a UKCA mark would be part of further trade negotiations, into which the Government may or may not enter, regarding acceptance of our product standards in future. That would be usual in any trade deal as a third country, when operating not just with the EU but with any other country in the world.

The shadow Minister rightly pointed out the concerns about access to European databases. I must give her some comfort that we will still have public access to the RAPEX database, and we are already developing the three databases to do that. Market surveillance is carried out in a number of different ways, and is not reliant just on those databases; it also comes from border and customers, and we hold our own data. I am confident that we will be able to continue carrying out the same level of market surveillance, and it is in the UK’s interests to ensure that unsafe products that should not be here are not placed on the market.

The hon. Member for Sheffield, Brightside and Hillsborough asked whether I could give her details of the meeting on the consultation that was carried out. I would be happy to write to her about that. With regard to trading standards enforcement, we have had the debate about trading standards enforcement many times in the House in recent weeks. Although the shadow Minister is right to challenge me, I hope that she accepts that trading standards enforcement is a particular interest of mine as a Minister. I would therefore like to give the Committee some comfort by pointing out that the Office for Product Safety and Standards has trained over 600 local trading standards professionals in 200 local authority areas, and at no cost to the local authorities. They will ensure that we are preparing our enforcers in the event of no deal, and for the wider aspect of when we do leave the European Union.

With regard to planning and the future direction of the Office for Product Safety and Standards—as well as what we are doing on data and increasing surveillance—we are bringing in more investment: the £12 million is focussed directly on the Office for Product Safety and Standards and the work going on with the border project. I know that the hon. Member for Sheffield, Brightside and Hillsborough has looked into this in great detail.

On the impact on business, labelling is a key concern. That is one reason why we have given organisations 18 months to comply. As a Minister, I have taken an interest in the matter, as Committee members would hope and expect, and have challenged officials in many of these areas, including by asking them how we could do things better or give businesses more opportunities. We have struck the right balance there. It is feasible for even a small business to be able to comply with what we have been able to do, including by familiarising themselves with the legislation.

Again, I thank Committee members for their contributions and I understand their concerns. I reiterate that this is about ensuring that we are in the right place if we leave the European Union without a deal on day one. The regulations are essential to ensuring that people across the UK continue to have confidence in the safety of the products they buy and use every day. If this legislation is not in place, the UK’s product safety regime simply would not work if the UK leaves without a deal agreed by both sides.

Without regulation, unsafe products could more easily be placed on the market, with no effective mechanism for removal, with the result that the British public would have less protection from unsafe and non-compliant products than they do today. The UK product safety and metrology regime is currently among the strongest in the world, and it is vital to ensure that we continue to have an effective product safety and metrology legal framework post exit. Without this, we risk disruption and confusion for businesses and enforcement authorities. Most significantly, we would limit our ability to remove unsafe or non-compliant products from the market. I am disappointed that the Opposition will be voting against the SI today. Many stakeholders out there will be looking for the Committee to approve the SI so they can have assurances on the requirement if we leave the European Union without a deal.

Question put.