Northern Ireland Protocol Bill

Hilary Benn Excerpts

Committee stage
Wednesday 13th July 2022 Commons Chamber

[Michael Ellis]

It is long-standing convention for very good reason that legal advice is not published in full. We know that, famously, from the Labour Government a couple of decades ago, when there was an enormous controversy about that. It stands as a very good reason, as I have discussed. However, we have published a memorandum on the matter that goes some way towards answering the hon. Lady’s question.

I move on to amendments 31 and 32 and new clause 10, tabled by the right hon. Member for Tottenham (Mr Lammy). The Bill is designed to bring swift solutions to the issues that the protocol has created in Northern Ireland. Those solutions are underpinned by the designation of elements of the protocol as “excluded provision”. Put simply, by excluding some elements of the protocol and withdrawal agreement in domestic law, the Bill is able to introduce, with the necessary certainty, the changes that are needed in Northern Ireland.

These amendments, through the conditions they would impose, would undermine the ability to exclude elements of the protocol and therefore undermine the entire operation of the Bill. The first condition in particular—that provision is excluded only if the EU and the UK agree to it—is obviously unworkable. Negotiations with the EU have so far been incapable of delivering the solutions that are needed, so to set that as a condition would clearly be dysfunctional. The second condition—that provision is excluded only if necessary as part of an article 16 safeguard—also fails to meet the needs of the situation. As I have said, article 16 has inherent limitations in its scope in that such safeguard measures could address some trade frictions, but not the broader identified impacts of the protocol.

In sum, the right hon. Gentleman’s amendments would unacceptably caveat the core operation of the Bill. In other words, they would be wrecking amendments preventing it from delivering the swift solutions in Northern Ireland that it is intended to provide, and that is why I ask him not to press them.

[Hilary Benn (Leeds Central) (Lab)]

The right hon. and learned Gentleman referred earlier to the three bits of the protocol that the Bill specifically prevents from being excluded—namely, rights of individuals, the common travel area and other north-south co-operation—which he described as particularly sensitive. Could he explain to the Committee why he does not regard article 18 of the Northern Ireland protocol, which relates to democratic consent in Northern Ireland, as equally sensitive? Why is that not covered by the exclusion? As I read the Bill, the Government could, if they wanted to, change article 18. Is that correct?

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I appeal to those Members searching for perfection that they will never find it. This House never does anything perfect. But we are stepping in the right direction. Let us keep taking those steps in the right direction.

[Hilary Benn]

We clearly have a problem, the absence of the Assembly and the Executive, and the cause is the operation of the protocol. I have said many times to European colleagues I have spoken to that the Commission needs to move in the negotiations. But one of the consequences is that we now have an absolutely terrible relationship with our biggest, nearest and most important trading partners. That is one reason why this is an extremely unwise Bill.

The honest answer to some of the questions that have been put in the debate is that there is not an easy answer because of the contradictions inherent in Brexit, the point my hon. Friend the Member for Walthamstow (Stella Creasy) made so eloquently a moment ago, although one of the consequences is that Northern Ireland, alone in the United Kingdom, has access to the single market of the European Union as well as to the market of the rest of the United Kingdom.

The reason for me why the Bill is so egregious is that the Government have chosen to pursue it when they have a means of taking the problem to the European Union in the form of article 16. One wonders what the negotiations were like when article 16 was drafted. “What if we have a disagreement about the way the protocol works? Let’s set up a mechanism for dealing with it.” Yet the Government have refused to use it. When I asked the Foreign Secretary why, she said she was a patriot and a democrat. Those are two very worthy things to be, but that is not a reason for abrogating a treaty you have negotiated and signed. It is a long time since I said this to the right hon. and learned Member for Torridge and West Devon (Sir Geoffrey Cox), but I agree completely with the argument he made as to why this is not something the Government should do. It is damaging our relationship and I do not think it will solve the problem.

The Bill is very clever. It is very well drafted and it is a unilateral switch that allows Ministers to turn stuff on and off. That is what it does. Clause 15, which has been part of this debate, contains, in the words of the seventh report of the House of Lords Delegated Powers and Regulated Reform Committee

“a power of the sort we rarely see—a power that in essence allows Ministers to rip up and rewrite an Act of Parliament.”

The Government claim that is necessary because things may come along that they want then to exclude, but there is a point of principle here. If Ministers decide that an Act of Parliament is not working in the way in which it was intended, they should come back to Parliament and Parliament should look at it, rather than Ministers saying, “In that eventuality, I want to take powers to do it by delegated legislation.”

Clause 15(1) lists a series of purposes for which the powers can be used. With no irony, one of the purposes—I could not believe it when I read it—is:

“securing compliance with, or giving effect to, any international obligation or agreement to which the United Kingdom is a party”.

The Government have tried to be virtuous in writing that in, but they then say that there is one exception to that, which is the EU withdrawal agreement and the protocol.

On article 18 of the withdrawal agreement itself, I note the commitment the Minister gave from the Dispatch Box. I urge him, for the avoidance of all doubt, to write that into the three specific exceptions. He has done it for the rights of citizens and the other two, and I advise the Government to put it in there for the avoidance of all doubt.

Along with many Members, I voted against the Bill on Second Reading. I think that it is beyond repair, as has been said, but that does not mean that we should not vote for things that will make it slightly less egregious. That is why I support the amendments tabled by the hon. Member for Bromley and Chislehurst (Sir Robert Neill) and new clause 10, which was advocated for so ably by my hon. Friend the Member for Hove (Peter Kyle), who speaks for the Opposition on Northern Ireland matters.

[Carla Lockhart (Upper Bann) (DUP)]

Today in my constituency, more than 100,000 people will gather in the small, rural village of Scarva for what is the largest parade of the year and what many believe to be the biggest one-day festival in the whole of Europe. It is a fantastic day of colour, music, pageantry and tradition—a celebration of civil and religious liberty for all. I am very sorry to miss it, but I know that those gathered there will be very supportive of what I am in this place to say about the Bill and the protocol. They would want me to reiterate that the Irish sea border must go.

It has been encouraging in recent days to hear some of those who have declared that they are standing to be our next Prime Minister state that they are committed to the Bill. Furthermore, it is welcome to hear from the new Secretary of State—I wish him well in his post—that his priority is to see a Northern Ireland Executive restored. Indeed, we share that priority.

The pathway to the restoration of a fully functioning Assembly and Executive at Stormont is through the Bill, the removal of the sea border and a return to the consensus politics that has been the trademark of our political progress to date. I therefore feel compelled to draw attention to a number of amendments in the names of—but not exclusively—the hon. Members for North Down (Stephen Farry), for Belfast South (Claire Hanna) and for Foyle (Colum Eastwood). Amendments 3 to 5 and new clause 7, which move to restrict the operation of the Bill unless it is approved by the Northern Ireland Assembly, make no mention of cross-community consent, meaning that they are clearly majoritarian in outlook.

The Committee understands that, in Northern Ireland, when one community feel ignored or marginalised or that their views are downtrodden, it brings tension and instability. It is a matter of deep regret that the parties who, for years, have preached consensus and consent now appear to want to tell Unionists that their views do not matter. “We shall overcome” has become “We shall overrule”.

The consequences of such an approach will be vast and extremely damaging. I cannot be clearer on the consequences: Stormont will not come back; community relations will further deteriorate; and the progress made on the basis of consensus will be ruined. No one with a shred of political leadership or responsibility would want that. That is why the amendments that prerequisite approval of the Northern Ireland Assembly must be rejected.

In the time remaining, I turn to the amendments that suggest that EU approval ought to be secured prior to the Government acting or the article 16 provisions being followed. Are those who have tabled such amendments aware that we have reached this point because such agreement has not been possible? The EU position is crystal clear—no renegotiation—yet Members of this House, who are elected to serve the interests of this country and its people, are handing a veto to the EU.

This Government were elected on the back of wanting to “take back control”. Any Government that would accept such amendments would be doing the reverse. It is disappointing, but the amendment paper can be seen for what it is: a wreckers’ charter—to wreck not only the Bill, but our political process in Northern Ireland. I urge the Government to reject the amendments.

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[Hilary Benn]

I agree with the hon. Gentleman completely about the need for a veterinary agreement. Is one advantage of an EU-UK veterinary agreement that it would deal with the objections that were raised earlier by some colleagues from Northern Ireland about Northern Ireland being a rule taker for things that it had not agreed? If an agreement is for the whole UK, and Parliament agrees to it, does it not remove that objection?

[Stephen Farry]

I very much agree with the right hon. Gentleman. Our first preference in all these matters should be a UK-wide solution, and only when that is not available, for whatever reason, should we consider something more bespoke for Northern Ireland. We are discussing the protocol, and I reiterate that this issue is very much in the interests of the entire UK agrifood sector, which is an export sector. Many Members talk with great pride about different industries in their constituencies, and all of those are struggling as a consequence of the impact of Brexit. I am labouring the issue of red and green channels, and the veterinary agreement, to point out that solutions are out there and that the measures in clause 4 and elsewhere in the Bill are not necessary. Solutions are there if people have the creativity and willingness to go out and grasp them, especially when that is fundamentally in the interests of us in the UK, as well as being of benefit to the European Union.

Reference was made previously to the Acts of Union, and I wish to clarify a couple of points in that regard as the situation changes over time. The Acts of Union of 1800 were between Great Britain and Ireland, and we are now talking about Great Britain and Northern Ireland, so that is one change we have seen via the Government of Ireland Act 1920, and the more recent Good Friday agreement, the Northern Ireland Act 1998, and the principle of consent, which is the bedrock of that. That is just a precursor, and while I agree fundamentally with the point just made—that our preference should be for a UK-wide approach and solution to some of these issues where possible—we must recognise none the less that Northern Ireland has always, from its inception, done things differently from the rest of the UK in economic matters.

Northern Ireland has always had devolved powers, right from its foundation, and on matters such as employment law or other issues it has had the right to diverge. Further to that, although I am not encouraging checks down the Irish sea, for various reasons throughout our history, including in wartime and other times of stress, there have been checks on certain movements across the Irish sea, including agrifood movements. Indeed, it is accepted practice that farm equipment is inspected. Ireland only really works as a single unit in terms of animal health, and before a lot of the controversy emerged around the protocol, that was an accepted fact for people from all backgrounds in Northern Ireland, as it was the most pragmatic way of doing things. In the same way, the single electricity market on the island has not been a source of debate, although it is a reality that Northern Ireland energy issues are distinct from those in Great Britain, and happen primarily on an all-Ireland basis.

To conclude, I will stress a couple of points. First, if the will is there, the means exist to resolve these issues without going down the route of unilateral action. Under the protocol, there is scope to progress a lot of those issues, including within the current negotiating mandate for the European Commission from the European Council. The question of medicines was progressed without a change in mandate, and the European Union went ahead and legislated for change. Secondly, issues can be addressed through supplemental agreements to the trade and co-operation agreement—the veterinary agreement probably fits that category best. A specialist committee has been set up for that purpose, so a vehicle exists to progress similar issues. While the UK Government have put forward their Command Paper, the European Union put forward its own proposals in October last year, and updated proposals last month.

If clause 4 remains as currently drafted, including the excluded provision, there will be a series of consequences—indeed, there will be consequences from the Bill itself—both for the UK and, in particular, for Northern Ireland. Those will include the undermining of the rules-based international system; setting a very bad precedent by breaching international law; and the risk of a very damaging set of EU retaliations, right through to a full-on trade war. Sadly, we are already seeing the consequences for UK academics and researchers who have been excluded from Horizon Europe. Research has been a real success story for the UK, so the costs are already clear in that regard—costs that are being paid for something that is not necessary, is unworkable, and is counterproductive.

For Northern Ireland, the effects of clause 4 will be as follows: it will undermine our access to the single market and the customs union. It will create more and more uncertainty for businesses as to the legal regime under which they are operating. It will pose dilemmas to members of the Northern Ireland Executive about how they conduct their duties. Finally—I say this with a degree of trepidation—it will beg the question of how and where the interface between the UK economic zone and the European Union economic zone will be managed. The answer to that question may well pose even greater challenges and difficulties.

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[The Financial Secretary to the Treasury (Lucy Frazer)]

I wish to begin by thanking all Members who took part in the debate on Second Reading as well as in the debate in Committee that preceded this one. As we progress to the second day of the Committee stage, I want to reiterate some of the key points that go to the heart of why the Government have introduced this Bill.

The Northern Ireland protocol was agreed with the best of intentions. However, as the right hon. Member for East Antrim (Sammy Wilson) has passionately set out, reinforced by the hon. Member for Strangford (Jim Shannon), unfortunately it is causing real tensions and problems for the businesses and people of Northern Ireland, including trade disruption and diversion, costs and bureaucracy. This legislation will fix the practical problems that the protocol has created in Northern Ireland. It will enable us to avoid a hard border, protect the integrity of the UK and safeguard the EU single market.

Let me address the clauses in turn. The Government’s intention is to introduce a new and different regime, including a green lane for goods remaining in the UK and a red lane for those destined for the EU. Clause 4 will allow the UK Government to implement such a regime for goods remaining in the UK and entering Northern Ireland. The clause, therefore, disapplies in domestic law certain EU law requirements and, with clauses 5 and 6, provides the powers for Government to remove many of the burdens currently placed on businesses by the extensive customs and regulatory processes that are required under the existing Northern Ireland protocol.

Clause 4 also defines “qualifying movements” that will be able to enter our proposed green lane. The subsections remove current burdensome processes for prescribed qualifying movements of UK or non-EU destined goods, and there is a power to define UK or non-EU destined goods. Clause 4 is central to our intention to rationalise the processes for goods moving into Northern Ireland. We have been clear that we do not believe it is appropriate to continue to require full customs and regulatory processes when goods are not even destined for the EU. This clause is part of what will allow us to put in place a more sensible and proportionate regime.

Our green lane and red lane proposals will form the basis of that regime. Engagement with businesses on the detail of the regime is already under way. We know that it is important that we listen carefully. It is the powers in clauses 4, 5 and 6 that will allow us to put it in place.

[Hilary Benn]

In respect of supermarket deliveries to Northern Ireland, it is really dead simple: those supermarkets sell only in Northern Ireland, so they would, of course, be appropriate for the green lane. But given the very large number of other businesses that send goods across to Northern Ireland, how do the Government propose to identify those businesses that are sending goods that are destined for the Republic and those that are sending them into Northern Ireland where they may be processed and then moved on to the Republic of Ireland? How will that work in practice?

[Lucy Frazer]

Obviously, this is a matter that the Government have been considering very carefully. There are goods, as the right hon. Gentleman says, that will obviously be going to Northern Ireland. Businesses will also know that there is a significant category of goods that will not, and then there are the goods that may not be certain at all. That is something that the Government will be discussing with businesses during the consultation over the summer period, and it will be set out how those goods are dealt with. The hon. Member for Strangford asked us about reducing paperwork, and I can say that, of course, that is the intention of the future regime.

Clause 5 ensures that a Minister of the Crown has the power to make regulations in relation to any provisions to which clause 4 relates, with the exception of customs matters, which are dealt with in clause 6. Clause 5 is essential in enabling a Minister of the Crown to deliver the UK’s proposals for a new green and red lane regime. Taking a power to provide for the regime is required, and the precise detail of the regime will be guided by consultation with stakeholders.

Clause 6 ensures that the Treasury or Her Majesty’s Revenue and Customs can make regulations in respect of customs matters. It will ensure that, once this Bill gains Royal Assent, the Departments can put in place the arrangements needed to operate a coherent customs regime.

Clause 24 sets out the Parliamentary procedure to be followed in respect of the exercise of regulation-making powers related to tax and customs matters in this Bill. The clause provides that regulations making provision in relation to tax and customs matters are to be made by statutory instrument. Regulations would be subject to the affirmative or negative procedure, depending on their effect. These statutory instruments would come before the House of Commons only in line with the exercise of Commons financial privilege, usually given to tax matters.

Before I turn to the amendments, I will touch on a number of points that have been made by hon. Members across the House. My hon. Friend the Member for Amber Valley (Nigel Mills) rightly said that the Government have been very generous and practical in our approach to border checks, not only in relation to Northern Ireland, but more broadly. He is also right to say that we have tried to negotiate a way forward with the EU. We have spent 18 months doing that. We have spent hundreds of millions of pounds on the trader support service, we have spent 300 hours in negotiations and we have shared 17 non-papers. Unfortunately, the EU has not come to an arrangement with us, and that is why I stand at this Dispatch Box today.

I dispute what the hon. Member for Hove (Peter Kyle) says, that it is clear that the two positions can be reconciled. It is clear that they cannot. We have tried to do that, but we have not succeeded. The Foreign Secretary invited Vice-President Šefčovič to the Joint Committee when we announced this legislation. However, the EU proposals do not go forwards; they go backwards. Under the EU’s suggestions, sending a parcel will involve completing a form with more than 50 data fields. A grandmother who wants to send a gift to her daughter in Belfast will need to complete a customs declaration and a pet owner will have to pay £280 for a certificate to take their pet. I welcome the support for this Bill from the right hon. Member for East Antrim and the hon. Member for Strangford.

Dealing now with the amendments, I will first respond to amendment 24, tabled by the hon. Member for North Down (Stephen Farry). I appreciate the intention of his amendment. However, it would be contrary to one of the core purposes of the Bill, which is to disapply in domestic law those parts of the Northern Ireland protocol that require goods remaining in the UK or not destined for the EU to complete burdensome processes.

The amendment would also mean that the “at risk” test would be left in place, which would mean that some businesses moving goods between Great Britain and Northern Ireland would still be required to pay customs duty even when those goods remained in the UK. As the hon. Gentleman will be aware, the Government’s intention is to put in place a different regime, one that is more proportionate and would remove the unnecessary burdens on business created by the protocol. I hope he will therefore withdraw his amendment.

On the points the hon. Gentleman made about the vet agreement, the UK remains open to a negotiated solution. We have put forward a number of practical solutions to resolve outstanding issues on SPS, but the UK has also been clear that we will not commit to dynamic alignment, which would compromise our sovereignty.

I turn now to amendments 34 and 35 in the name of the right hon. Member for Tottenham (Mr Lammy) . The Minister for the Cabinet Office and Paymaster General, my right hon. and learned Friend the Member for Northampton North (Michael Ellis), addressed this issue briefly in the previous debate, so I will not labour the point. Replacing the requirement for a Minister to consider that regulations are “appropriate” in the use of the Bill’s delegated powers with a test of necessity risks our ability to put in place the right solutions to the problems the protocol is causing. In these clauses, that would potentially circumscribe the ability to design a green lane that will preserve the unity of the UK internal market. I expect the right hon. Gentleman will not agree with me, but I ask him to withdraw his amendments.

Amendments 15 to 18 and new clause 5, tabled by the hon. Member for Gordon (Richard Thomson), would remove the Government’s proposed parliamentary procedures for statutory instruments under the Bill relating to tax and customs matters. The amendments attempt, in some cases, to replace them with a new, so-called super-affirmative procedure. In other cases, the amendments attempt to limit them to the draft affirmative procedure, removing the possibility of the made affirmative procedure in cases of urgency.

The drafting of these amendments is defective, making it unclear precisely what procedure is intended to apply to different categories of regulations. However, I will address the principle behind them. As Members will know, true super-affirmative procedures for statutory instruments are vanishingly rare. The normal affirmative and negative procedures for SIs provide effective scrutiny for the House. The hon. Member’s proposed procedure is long, requiring months of consultation on draft SIs, and procedurally complex, but ultimately does little more than envisage a Committee of the House making recommendations and preventing an SI coming into force pending a vote by this House. The amendments would require the Treasury or HMRC to make statements about any representation they have received on the draft recommendations.

I hope I can reassure the hon. Member that the Government intend to consult on the policy—indeed, work is under way—and the usual tools of parliamentary scrutiny will allow him to seek answers about this from me and my ministerial colleagues. His amendments would simply slow down solving the problems facing the people of Northern Ireland and create a muddling precedent on perfectly effective parliamentary procedures. I therefore urge him to withdraw his amendments.

New clause 4, tabled by the hon. Member for Foyle (Colum Eastwood), would prevent the exercising of powers in this Bill until an agreement has been sought on reducing sanitary and phytosanitary checks in the EU-UK Joint Committee—the joint decision-making forum overseeing implementation of the UK-EU withdrawal agreement. In many ways, I agree with the spirit of what the new clause seeks to achieve, but where we differ is that I recognise that we have already exhausted this option. The Government have engaged extensively with the EU on reducing the burden of sanitary and phytosanitary checks both through the Joint Committee and through official-level channels. As I mentioned, we have had over 300 hours of ministerial and official discussions and spent a significant amount of money. Nevertheless, we were still prepared to get round the table with the EU, and we held further talks through the autumn to the turn of the year.

However, as we set out in the statement by my right hon. Friend the Foreign Secretary on 17 May, the EU has simply shown insufficient flexibility. Although the EU published proposals in a non-paper on SPS in October 2021 that claims that checks carried out on SPS goods moving from GB to NI will be reduced by 80%, our own analysis and business feedback shows that this would not be the case in practice, and that a large volume of SPS goods staying in Northern Ireland will still face documentary, identity and physical checks. I understand why the new clause has been tabled, but regrettably we have had to conclude that the solutions put forward by the EU are not sufficient. It is for the EU to come back to the negotiating table or for the UK Government to get on with the job. I invite the hon. Member to withdraw his new clause.

The Bill provides a comprehensive and durable solution to the existing problems with the Northern Ireland protocol. As I said, the protocol was agreed with absolutely the best of intentions, but it is creating real problems on the ground for people and businesses in Northern Ireland. It is creating trade disruption and diversion, and increasing costs and bureaucracy for traders. The Bill will fix those practical problems. It will enable us to avoid a hard border and it will safeguard the EU single market. I therefore recommend that the clauses in this group stand part of the Bill.

Question put, That the amendment be made.