UK Internal Market Debate
Full Debate: Read Full DebateRobin Swann
Main Page: Robin Swann (Ulster Unionist Party - South Antrim)Department Debates - View all Robin Swann's debates with the Department for Business and Trade
(4 days, 2 hours ago)
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It is a pleasure to serve under your chairmanship, Dr Huq. I thank the right hon. Member for East Antrim (Sammy Wilson) for securing this debate.
I am sure that we will hear in the Minister’s response what the Government have done to alleviate some of these issues, but it is the practicalities that Members from Northern Ireland are actually asking about. I am sure that we will hear about Lord Paul Murphy’s report. He was commissioned to conduct an independent review of the Windsor framework. I am now aware that his report was handed to the Government on 9 July, so we have to ask, “When will we see it? When will businesses see it? When will trade and industry actually see what Lord Murphy has said?” I am sure that the answer we will get is that under domestic law the Minister has up to six months to publish the report and its recommendations. Why not publish it now? Why not let businesses and politicians see the challenges that lie ahead?
Two bodies were created at the time: the independent monitoring panel and Intertrade UK. Those organisations were launched with much noise and furore, and good people—genuine people—were appointed to them, but we have seen no product. We have seen nothing come from them with regard to the challenges, and the opportunities that people keep talking about but that nobody is prepared to put in writing.
With regard to the challenge that we currently face, the introduction of “Not for EU” labelling on 1 July, which has been touched upon, applies even to goods that will never leave the UK’s internal market, and adds yet another layer of complexity and cost. Businesses have been told that these labels will eventually be phased out, but the requirement to have them now still stands. For a large retailer, that may be a frustration, but for a small supplier or producer it could be the final straw.
That was evident in the FSB’s independent report. As the right hon. Member for East Antrim pointed out, this is an independent report commissioned by the FSB from GB suppliers providing goods to Northern Ireland. Those suppliers said that trade disruption is widespread, with 58% of those trading between GB and NI reporting “moderate” to “significant” challenges. Over a third of respondents—34%—have already ceased trading rather than deal with these new compliance issues.
Even major retailers are pushing back. We will hear about all those businesses and companies that make it work, but in June Stuart Machin, the chief executive of Marks & Spencer, called the implementation of these labels
“bureaucratic madness, confusing for customers, and completely unnecessary given the UK has some of the highest food standards in the world.”
If the chief executive officer of one of the UK’s most established food retailers finds the system hugely bureaucratic, says it is
“adding yet another layer of unnecessary costs and red tape”,
how can we expect small firms, often with just a handful of staff, to cope?
I am sure that the Minister will talk about the coming SPS deal, which has been mentioned, but the real challenge that the Government have to answer is: why are they continuing to introduce further bureaucracy and further checks? If this promised deal—this new relationship with the EU—is so positive, so genuine, and if we are so much in partnership, why do we have to introduce this? Why can we not put in place the extended grace periods we have often seen in the past for those businesses and organisations?
The FSB’s work on the framework was undertaken before there were further restrictions—before the restrictions on business-to-business parcels came into force on 1 May, and before the phase 3 labelling requirements on SPS products came into force on 1 July and from 1 September. Small businesses are asking us to establish something that actually helps. A back office, knowledgeable and with expertise, should be made available through an accessible, business-friendly route, rather than this bureaucracy. Dr Huq, I respect your time limits and will allow another hon. Member to speak.