Northern Ireland Protocol Debate

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Department: HM Treasury
Thursday 15th July 2021

(2 years, 9 months ago)

Commons Chamber
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Jeffrey M Donaldson Portrait Sir Jeffrey M. Donaldson (Lagan Valley) (DUP)
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I congratulate my right hon. and hon. Friends on securing this debate today and on giving Members the opportunity to express their views.

For people in Northern Ireland, the political and economic stakes could not be higher, as the protocol presents the greatest ever threat to the economic integrity of the United Kingdom. The rigorous implementation of the protocol that some anti-Brexit parties in Northern Ireland have called for would be bad for consumers and bad for business. It would be socially disruptive, economically ruinous and politically disastrous for Northern Ireland. As Lord Frost has repeatedly pointed out, the Northern Ireland protocol in its present form is unsustainable, and it needs to go.

Over the last 50 years, if we have learned anything in Northern Ireland it is that, if our political arrangements are to last, they will require support from right across the community, and there is not a single elected representative in any Unionist party who supports the Northern Ireland protocol. The Government have promised that they will publish their plans for the future of the protocol before Parliament rises for the summer recess, and that cannot come a moment too soon.

Much has been said about how we got here, but, today, I want to set out where we need to go from here. My party will not prejudge what the Government have to say, but I want to make it clear what any new approach needs to achieve. That is why, today, I am setting out seven tests that I believe are important for any new arrangements. Our tests are grounded not in a Unionist wish list, but in promises that have already been made in one form or another to the people of Northern Ireland. It is not too much to ask that the Government stand by these promises.

First, new arrangements must fulfil the guarantee of the sixth article of the Act of Union 1800. That Act of Union is no ordinary statute; it is the constitutional statute that created the United Kingdom for the people whom I represent. The sixth article essentially requires that everyone in the United Kingdom is entitled to the same privileges and to be on the same footing as to goods in either country and in respect of trade within the United Kingdom. Under the protocol, this is clearly no longer the case. The House will be aware—you made reference to the legal challenge on this point, Madam Deputy Speaker—that the High Court has held that the protocol does not put the people of Northern Ireland on an equal footing with those in the rest of the United Kingdom. In defending their position, the Government lawyers made it clear that the protocol impliedly repeals article 6 of the Act of Union. That is a matter of grave concern to us, and it is a matter that needs to be put right.

Secondly, any new arrangements must avoid any diversion of trade, and I welcome what has been said already. It is simply not acceptable that consumers and businesses in Northern Ireland are told that they must purchase certain goods from the EU and not from Great Britain. In this regard it is notable that article 16 of the protocol already permits the UK to take unilateral safeguarding measures to ensure that there is no diversion of trade, and the Government must do that.

Thirdly, it is essential that any new arrangements that are negotiated do not constitute a border in the Irish sea between Great Britain and Northern Ireland. In line with the Act of Union, there should be no internal trade border in the UK. Northern Ireland’s place in the UK internal market must be fully restored. Fourthly, new arrangements must give the people of Northern Ireland a say in making the laws that govern them. That guarantee is implicit in article 3 of protocol 1 of the European convention on human rights, which clearly states that where people are subject to laws, they should be able freely to express their opinion on those laws. Northern Ireland does not have that in relation to EU regulations being imposed on it. Fifthly, new arrangements must result in no checks on goods going from Northern Ireland to Great Britain, or from Great Britain to Northern Ireland. The Prime Minister gave that commitment on 8 December 2019, and it should be honoured.

Ian Paisley Portrait Ian Paisley (North Antrim) (DUP)
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On that point about goods moving from Northern Ireland to GB unmolested and unhindered, was my right hon. Friend as shocked as I was when Retail NI, Manufacturing NI, Ulster Farmers Union and haulage representatives confirmed before the Northern Ireland Affairs Committee this morning that from January 2022, they will have to put in place documentary evidence of what they are moving from one part of the United Kingdom to the other part of the United Kingdom? Moving those goods does no damage and places no impediment on the European single market. My right hon. Friend must be appalled by that requirement.

Jeffrey M Donaldson Portrait Sir Jeffrey M. Donaldson
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My hon. Friend makes the point very powerfully.

Sixthly, new arrangements should ensure that no new regulatory barriers develop between Great Britain and Northern Ireland, unless agreed by the Northern Ireland Executive and Assembly. That commitment was made in paragraph 50 of the joint report by negotiators from the European Union and the United Kingdom Government in December 2017. Our Government sadly failed to honour that paragraph when they concluded the Northern Ireland protocol. We expect that commitment, which was made by the Government, to be honoured.

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Ian Paisley Portrait Ian Paisley (North Antrim) (DUP)
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I congratulate the hon. Member for Harwich and North Essex (Sir Bernard Jenkin) on getting this matter on to the Floor of the House. I also welcome the comments from the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) and the encouragement he has given with the survey results he has put on the record today saying to all the people of the United Kingdom that we are all as one in this. I would say, and I encourage my Conservative colleagues across the House to say, that Brexit cannot be properly done or properly completed until we resolve the issue of the Northern Ireland protocol, because it is an outstanding matter that does need to be resolved.

Daily, I am horrified whenever parcels arrive from GB to my constituents in Northern Ireland with a label on saying “Northern Ireland” and “foreign parcel”. Coming from post offices in GB to my constituents, this is reminding them day and daily that they are receiving foreign goods in their own country, when they are not; this is about ordinary commerce within the single market of the United Kingdom. The United Kingdom has in effect been partitioned by this protocol, and that is why we welcome this debate and why we welcome the fact that it must be fixed.

I must put on record my declaration—and I refer to my entry in the Register of Members’ Financial Interests—that I am currently engaged as part of the commercial case in the High Court against the protocol on behalf of commercial entities in Northern Ireland.

For all of the litigation that has been ongoing, it really will not solve this issue. What we actually need is political determination. The courts of the land are not there to drive this matter forward; it is for this House to do so. This House is sovereign for all of the United Kingdom, and the sooner this House and the Government determine that they are going to change the protocol, the better for us all. We are, in effect, at a fork in the road.

The protocol, of course, contains its own recipe to fix this: under article 16, it can be unilaterally removed where there is seismic social, community and commercial activity detrimental to a part of the United Kingdom. Section 38 of the European Union (Withdrawal Agreement) Act 2020 also allows for it to be changed unilaterally by the Government, because this House is sovereign. So let us urge the Government to use their majority and to use the sovereignty of this House to fix this matter and to get Brexit done, as we all want to see it done, and let us use this House to put in place the mutual enforcement agreements that we know will be better for all of Northern Ireland.

The Northern Ireland Minister for the Economy recently wrote to the Northern Ireland Affairs Committee saying that he had “significant concern” about the protocol because of the economic divergence that it is clearly creating for British firms in GB trading with British companies in Northern Ireland. He went on to say that this was creating “commercial discrimination”—commercial discrimination because of a protocol that was supposed to help us and that was supposed to give us the best of both worlds. It is not acceptable, and it has got to be changed.

At the heart of this protocol lies confusion. When a President of one of our European neighbours does not even know and acknowledge that Northern Ireland is part of the United Kingdom—Monsieur Macron—how could there not be confusion? The essence of the protocol is not constructive ambiguity. The essence of the protocol has been confusion about Northern Ireland’s place: is it in the EU customs union; is it out of EU territory; is it in UK territory; what is its actual status? That has confused the mix, and we have to make sure we move away from that confusion.

We do not in Northern Ireland have the best of both worlds; we are essentially in a commercial no-man’s land. Let me put some issues to the House on that basis. One of the last-minute revisions made to the protocol on 10 December last year—one that was shoehorned in under the radar—was aspects of the EU’s single-use plastics directive. That means that on top of the already burdensome, costly adaptations that businesses are having to make to continue to sell products in Northern Ireland, regulations will widen even further in January. This will mean that plastics labelling requirements will be imposed on producers for a range of items from wet wipes to drinking cups to tobacco products—a whole host of products that contain plastic—but no transposing regulations have yet been put in place, so we do not know what companies are going to have to do. We now have even more confusion and nonsensical red tape over the trade of wet wipes from GB to Northern Ireland. This will pose incredible problems for Northern Ireland.

Other commercial realities were identified this morning in the Northern Ireland Affairs Committee, when manufacturing, haulage, retail and farming all came together and gave us the sorry picture that over 77% of their base is still experiencing daily problems with the operation of the protocol. There is an increase in wage inflation and an unacceptable spectre coming down the tracks that will mean Northern Ireland having to put in place even more red tape in January 2022 whenever it comes to putting its goods into GB. The overwhelming consensus is that this is not acceptable. Words have been very good, but we now require action by the Government.

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Sammy Wilson Portrait Sammy Wilson (East Antrim) (DUP)
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I, too, congratulate the hon. Member for Harwich and North Essex (Sir Bernard Jenkin) on securing this debate, and thank him for the continued support that he has given to us in our opposition to the Northern Ireland protocol and the effects that it has had on Northern Ireland.

The protocol, if it continues to exist, is a threat to Brexit. Indeed, that was borne out by the survey carried out last weekend by Savanta, in which 57% of those who were surveyed indicated that they believed that the Northern Ireland protocol was designed to frustrate Brexit. Indeed, 40% of remainers made the same point. It represents a bridgehead that the EU still has on the United Kingdom, a salient from which it will continue to attack our sovereignty and try to claw back the influence that it lost when this country decided to leave the EU.

There are three reasons why the protocol must go. The first is that it will be an ongoing means by which Brexit will be frustrated. We have already seen how the EU has used the protocol. In fact, it is taking the UK Government to court because the UK Government will not accept the EU’s interpretation of the protocol and how it should be implemented to impose the kind of restrictions that the EU demands. The British Government argue that the protocol was meant to deal with only those goods that could be at risk of going into the EU through the Irish Republic; any other goods were not at risk. The EU takes the view that we must prove that goods are not at risk before we can avoid the checks. In other words, 97% of goods that are currently being checked do not need to be checked. They do not go any further than Northern Ireland. Yet the EU is insisting that there is a risk that they might go into the Irish Republic. That is why we have such a high level of checks. There will be future laws that will create more need for restrictions. For example, the EU is bringing in changes to the law regarding the testing of lawnmowers. Lawnmowers could be the next goods that are refused entry into Northern Ireland because they do not comply with EU law, which now applies to Northern Ireland. That is the first reason. If we do not get rid of the protocol, there is always that opportunity for friction in relations between the UK and the EU.

Secondly, I do not care what people have said about there being no constitutional impact. Of course, there is a constitutional impact. The Act of Union has been changed. The Government’s own lawyers argued in the courts that the Act of Union was changed—that when this House voted for the protocol it voted impliedly to change one of the fundamental pillars of the Act of Union, which is that there should be unimpeded and equal trade between the different countries of this nation.

The protocol’s other constitutional impact has been to take powers from the Northern Ireland Assembly. I find it amazing that those who have representatives in the Northern Ireland Assembly, such as the hon. Member for North Down (Stephen Farry), can argue that there is nothing to worry about. His party has a Minister in the Northern Ireland Assembly and his party has Members of the Northern Ireland Assembly, yet 60% of the laws that will govern manufacturing in Northern Ireland will never be discussed, cannot be discussed, and, indeed, have to be implemented by the Northern Ireland Assembly without its having any say. The democratic responsibilities of the Northern Ireland Assembly have been undermined, and, of course, there has been a change in the Act of Union and in the constitutional position, and that contravenes the Good Friday agreement, which says that any change in the constitutional position of Northern Ireland has to have the consent of the people of Northern Ireland.

The last reason, which people have outlined very well, is the economic impact that all this is having on Northern Ireland. We already see the disruption to trade. Indeed, just this month the Ulster Bank purchasing managers index survey indicated that inflation in Northern Ireland is significantly higher than in the rest of the United Kingdom and about 50% more than the lowest region in the rest of the United Kingdom. Although that does not lie completely at the door of the protocol, it indicates that costs are rising higher in Northern Ireland because of the costs of the protocol—the delay in supply chains, the additional costs in administration and so on.

The protocol has a real impact on the future ability of Northern Ireland to compete. Of course, as laws in Northern Ireland change because EU laws are imposed, that will make it much more difficult for us to compete in our biggest market in GB. There will be those who say that we will get the best of both worlds, with a foot in the EU camp and a foot in the GB camp. That is not true, of course.

Ian Paisley Portrait Ian Paisley
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On the issue of having a foot in both camps, at today’s Northern Ireland Affairs Committee the Ulster Farmers’ Union made the point that Northern Ireland agriculture is now in a no man’s land and does not have the best of both worlds. How does my hon. Friend respond to the fact that that multimillion pound industry, our most successful, is now placed in that terrible situation?

Sammy Wilson Portrait Sammy Wilson
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I have heard time and again the argument that we have the best of both worlds, but I have not heard any examples of where being in the EU single market and being cut off from the GB market has had any beneficial effect. Indeed, any examples I have heard of improved trade have been a result of the trade agreement that the whole of the United Kingdom has with the EU. That is all that has ensured that those markets are open to companies in Northern Ireland.

There are alternatives. We have heard them mentioned today, including the mutual enforcement of each other’s rules. It is not that it is technically impossible—it is technically possible. It is not that it is economically impossible—it is possible. It is not that it is constitutionally impossible—it is simply a question of whether there is political will. Lord Frost must push this with the EU. There are alternatives that can satisfy both sides and ensure that the single market of the UK is maintained while the single market of the EU is protected.