(1 day, 20 hours ago)
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Baroness Hoey
To ask His Majesty’s Government what plans they have to ensure that the same rules on duty-free goods apply for those flying from Belfast to the European Union as those flying from the rest of the United Kingdom.
The Financial Secretary to the Treasury (Lord Livermore) (Lab)
My Lords, duty-free shopping between Northern Ireland and the EU would require the application of personal allowances and associated border checks to prevent the uncontrolled flow of tax-free goods into either Northern Ireland or the EU. The enforcement controls required for this would run counter to the Windsor Framework and to the principle of the frictionless movement of people and goods between Northern Ireland and Ireland.
Baroness Hoey (Non-Afl)
My Lords, I thank the Minister for that rather predictable Answer. Could I press him? Does he understand the frustration and anger that families in Northern Ireland have when they travel on their well-earned holidays to sunny parts of the EU and cannot get duty-free, while other citizens of the rest of the United Kingdom can? Does he understand that not having duty-free is costing Northern Ireland’s small airports about £5 million a year? Does he have any sympathy or empathy with the people of Northern Ireland? Will he make a commitment that when His Majesty’s Government are involved in the much-heralded reset, this will be one of the issues—it may seem a minor issue to some people, but it is quite an important one—to be negotiated with the European Union to change?
Lord Livermore (Lab)
I am grateful to the noble Baroness for her question. She says that my Answer was predictable, but one thing that was entirely predictable was the impact of Brexit, which she campaigned for. Back in 2016, Sir John Major and Sir Tony Blair said clearly that Brexit would present specific challenges for Northern Ireland, given its land border with an EU member state and the importance of safeguarding the Good Friday agreement, yet the noble Baroness dismissed those concerns. Now that the reality of Brexit does not match up to the fantasy version which the noble Baroness had, she seeks to blame others for the consequences of her own actions.
Let me be very clear: the Windsor Framework is the best workable solution to Northern Ireland’s unique circumstance. The noble Baroness asked whether I have empathy—absolutely I do. Placing Northern Ireland in a uniquely beneficial position within the United Kingdom, by being part of the UK internal market and the EU single market for goods, provides significant opportunities for growth and ensures that there is no hard border on the island of Ireland. She mentioned the reset. As part of the EU reset, the EU and the UK have agreed to negotiate an SPS agreement. I urge the noble Baroness to support that reset.
Baroness Ritchie of Downpatrick (Lab)
My Lords, does my noble friend the Minister agree that it would be much better for Members of your Lordships’ House to argue for and underpin the value of dual market access whereby businesses and communities in Northern Ireland can avail themselves of access to the UK internal market and the EU single market? I agree with my noble friend when he said that Brexit was the cause of all these difficulties. It would be better if noble Lords sought to work to eradicate the difficulties and challenges presented by the Windsor Framework to underpin our local economy.
Lord Livermore (Lab)
I am very grateful to my noble friend for her question and I agree with every word she said. The Windsor Framework is the best workable solution to Northern Ireland’s unique circumstances. As she said, it places Northern Ireland in a uniquely beneficial position within the United Kingdom—which I hope we can make a lot of—by being part of the UK internal market and the EU single market for goods. That provides significant opportunities for growth and ensures that there is no hard border on the island of Ireland.
Lord Weir of Ballyholme (DUP)
My Lords, the Minister highlighted the principal rationale for there not being duty-free at Northern Ireland airports when flying to the EU as the need to maintain frictionless trade with the Irish Republic, presumably on flights to the Irish Republic. Is the Minister aware that not a single flight goes from Northern Ireland to the Republic of Ireland? Does he agree that we are left in the absurd position of creating an additional problem to solve a problem that, in practice, does not actually exist?
Lord Livermore (Lab)
I am grateful to the noble Lord for his question. I will clarify this for him. The original Question asked about flights from Belfast to the European Union, so that is what this Question is about. I will be very clear. If we have duty-free, we have to have allowances. If we have allowances, we have to have checks and enforcement. If we have checks, we have to have border infrastructure, and border infra- structure is contrary to the Windsor Framework and the Good Friday agreement.
Lord Bellingham (Con)
My Lords, one of the key outcomes of the Windsor Framework was the plan for green lanes for goods leaving the UK but staying in Northern Ireland rather than being transported to the Republic. Can the Minister tell the House what progress has been made on the introduction of those green lanes?
Lord Livermore (Lab)
This may have been another of the fantasies that people had about certain Brexit outcomes rather than reflecting reality. What we have ended up with—I pay tribute to the previous Government for negotiating this—is the Windsor Framework, which, as I said, is the best workable solution to Northern Ireland’s unique circumstances. We absolutely support the implementation of the Windsor Framework.
Baroness O'Loan (CB)
My Lords, the Minister described a very glowing situation in Northern Ireland, which is not necessarily the experience of the people in Northern Ireland, subsequent to the Windsor Framework. While accepting that the Windsor Framework is what we have to live with at the moment, does the Minister accept that there are many problems, that people cannot get access to many goods and services, and that goods are increasingly not being supplied to Northern Ireland because of the bureaucratic difficulties and economic costs? Would the Minister commit to considering all these matters and to bringing forward a reset that actually benefits Northern Ireland?
Lord Livermore (Lab)
I am grateful to the noble Baroness for her question and insight. I will say up front, as I have said before, that we are committed to implementing the Windsor Framework in good faith and to protecting the UK internal market. We will work constructively with all stakeholders—the EU, the Northern Ireland Executive, businesses, and political parties and civic society in Northern Ireland—to achieve that aim, taking into account the implementation deadlines. As the noble Baroness said, the Windsor Framework agreement secured substantial legally binding changes and flexibilities that do improve things. I hope that the EU reset will further improve things, and I therefore urge all noble Lords to support it.
Captain of the Honourable Corps of Gentlemen-at-Arms and Chief Whip (Lord Kennedy of Southwark) (Lab Co-op)
We will hear from the Lib Dems next and then my noble friend Lord Grocott.
Baroness Kramer (LD)
My Lords, will the Government please start to renegotiate our entry into the customs union? It would eliminate the issues raised by the noble Baroness, Lady Hoey, and many others and increase prosperity for us. There is a very simple and direct set of answers.
Lord Livermore (Lab)
I am grateful to the noble Baroness for her question and I pay tribute to her consistency on this matter. We share many similarities in our observations and analysis of the impact of Brexit. She will know that we are engaged in the EU reset, which will achieve substantial benefits for growth in the UK and for British citizens travelling around the European Union. I urge her to support the reset.
Lord Grocott (Lab)
My noble friend, on this Question and a number of others that I have heard him reply on, demonstrates the passion that he feels for the European Union. It is a passion not shared by everyone. Some of us remember that the 40 years when we were in the European Union were not exactly flowing with milk and honey as far as the British economy was concerned.
Lord Grocott (Lab)
My noble friend will notice the support he gets from the Liberal Democrat Benches.
Can I have my noble friend’s assurance that we stand very strongly by the Labour Government’s manifesto promise that there will be no question of us rejoining either the customs union or the single market?
Lord Livermore (Lab)
I am sure my noble friend and I agree on many things, but Brexit is not one of them. I hope that when he talks about our experience in the European Union he will acknowledge the OBR’s calculations that, had we remained in the European Union, by the end of this Parliament the economy would be £100 billion larger than it will be otherwise. That is a significant disbenefit of Brexit. As my noble friend knows, the manifesto stands.
Baroness Neville-Rolfe (Con)
My Lords, returning to the Question, we on these Benches fully recognise the importance of the agreements reached between the previous Administration and the European Union. However, there is a legitimate question about whether practical solutions could now be explored to address the specific anomaly. Will the Minister consider supporting a joint UK-EU technical group to examine practical options for restoring duty-free parity for Northern Ireland travellers, which could overcome the difficulties the Minister outlined? That process could be undertaken without undermining the Windsor Framework.
Lord Livermore (Lab)
Let me be absolutely clear, again. If you have duty-free, you have to have allowances. If you have allowances, you have to have checks and enforcement. If you have checks, you have to have border infrastructure, and if you have border infrastructure, that will be contrary to the Windsor Framework and the Good Friday agreement.