PARLIAMENTARY DEBATE
Exiting the European Union - 24 November 2020 (Commons/Commons Chamber)
Debate Detail
That the draft Prohibition on Quantitative Restrictions (EU Exit) Regulations 2020, which were laid before this House on 9 November, be approved.
As I am sure hon. Members recognise, it is important that we have full sovereignty over our regulatory regime for goods at the end of the transition period. The statutory instrument will help to ensure that we are not challenged if we choose to diverge from EU regulations. At the end of the transition period, EU treaty rights on the movement of goods stemming from articles 34 to 36 of the treaty on the functioning of the European Union will be retained in UK law unless they are removed by this SI.
The EU treaty rights prohibit quantitative restrictions or equivalent measures on imports and exports, meaning that divergence from EU regulatory requirements could result in a challenge from a business or importer if they deemed it a barrier to placing their goods on the market in Great Britain. To be clear, the SI is not a precondition for divergence: as of 1 January, Parliament will of course have the ability to introduce new regulations. Instead, it is about removing potential grounds for legal challenge based on retained treaty articles that have no place on our statute book once we have fully regained our independence.
The SI will remove the aforementioned EU treaty rights so they no longer apply in England, Scotland or Wales. It will not result in any immediate changes for goods in the UK but will protect our right to diverge from EU goods regulations in future, where we so choose.
The SI will protect our ability to regulate goods as we see fit and ensure that challenges do not require us to keep in line with the EU regulations. I commend it to the House.
The Minister and I do not usually stand opposite one another. We did have that pleasure this morning. This morning, in the debate we had in Westminster Hall, I thought to myself that I respected the Minister. It was the first time I had seen her in action, and I really did think what a sound and reasonable Minister she was. But, frankly, she is taking instructions from her Whips. That is her judgment. But in time, that will not be very fitting of her ministerial role. I know she will feel deeply uncomfortable with what she is being asked to do and it is pretty embarrassing for her.
“extend to England and Wales and Scotland only”,
there has not, as I understand it, been a full consultation with the Welsh Government or the Scottish Government, and I was looking forward to having an opportunity to explore precisely where we are going on this with the Government Minister—she is the only person who can really answer that—not least because one of my biggest anxieties is that in this whole process the Government’s relations with the devolved Governments have been so bad that they are tearing at the structure of the Union.
I will now get on to my speech, as I have perhaps taken up a lot of the time that the Minister might have used to explain the statutory instrument to us. We do not oppose this statutory instrument today, because we recognise that it is a natural consequence of leaving the EU and an end of the transition period.
This statutory instrument leaves more questions than answers, as we still have no idea what, if anything, will replace aspects of the current EU framework for the movement of goods in a future trade deal. Any deal is almost certain to make arrangements for the continued market in goods across the UK-EU border. Even with no deal, there would still be a number of implications for trade within the UK, as has already been mentioned by the hon. Member for Kilmarnock and Loudoun (Alan Brown). We want the Government to get such a deal, and we want them to do so urgently. As each day passes, the uncertainty for UK businesses is prolonged at a time when many of them are coping with unprecedented uncertainty due to the covid pandemic and the ensuing economic crisis.
The Prime Minister promised us an “oven-ready” deal, but it seems that in reality it is anything but. He promised us a future relationship, which included
“no tariffs, fees, charges or quantitative restrictions across all sectors.”
I have not seen much sign of that today. He promised that he would safeguard workers’ rights and consumer and environmental protections, and keep people safe with a
“broad, comprehensive and balanced scrutiny partnership.”
It is important to remind the House of the things that the Prime Minister promised as the negotiations with Brussels enter their endgame, because I really am not sure that the results are going to match the initial promise that we were given at the election last year. A deal that fails to deliver on the commitments made in the political declaration and to the British people at the general election risks making life considerably harder for jobs, businesses and communities already grappling with the economic challenges of covid-19, as so many Members have already pointed out.
With time running out, the Government really do need to get on with it and get a good deal for the British people and British businesses. I know that the Minister and her colleagues are in touch with businesses as much as I am. Businesses have real concerns that they will not have the bandwidth for Brexit alongside the pressures of dealing with the pandemic, nor will they have the time to implement whatever is expected from a deal, should one be struck.
Presumably, the Government’s argument today—not that we have heard it, so I have no idea what it is—is that they need to bring forward this legislation now, without knowing what will replace it, because time is running out to pass all the necessary legislation ahead of the transition. Why do they not recognise—perhaps the Minister might respond to some of these points in the 30 seconds that her Whips have given her—that the same applies to businesses up and down the country? They need time to do these things ahead of the Christmas period too.
Businesses also have real concerns that the Government will blame them for any disruption and make them the fall guys. I wondered whether the new No. 10 internal arrangements might have changed the Government’s attitude towards business, but after today’s performance I am not sure that businesses will have that reassurance. [Interruption.] The Minister’s Parliamentary Private Secretary, the hon. Member for Bolsover (Mark Fletcher), moans from a sedentary position. He is more than welcome to speak in the debate, but I see that all his colleagues have withdrawn.
“Mr Eustice’s comments will have angered many of our nation’s sheep farmers”?
Does that not reinforce the point that she has just made—that the Government are, frankly, losing face in the business community?
Let me turn to the serious point. As I understand it, the delay in getting any kind of deal with the European Union almost certainly means that the European Parliament may have to sit on 28 December. Is it not perfectly possible, given that we do not even know the Christmas recess dates for this House yet, that we too may have to sit on 28 or 29 December? There is nothing in this measure that makes it clear what would need to change, whether a deal is sorted out or is not.
As the Minister said briefly in her opening remarks, this statutory instrument will end the application in the UK of the rights derived from articles 34 to 36 of the treaty on the functioning of the European Union. The removal of these provisions will ensure that there is no barrier to divergence from EU rules should the Government choose to diverge. As the memorandum that accompanies the statutory instrument sets out, the Government plan for the UK to have its own regulatory regime for goods after the end of the implementation period.
If the Minister is allowed to, will she update us on what the EU-UK trade regime will look like and what rights and protections will be in place at the end of the implementation period? When will we have the details? More importantly, will businesses have plenty of time to prepare for the regime’s implementation? Ministers have repeatedly said that in many policy areas the rights and protections that we have enjoyed inside the EU will be maintained and improved on when we are outside the EU. Will the Minister set out where she thinks we might diverge from EU standards and requirements in future? How will she ensure that divergence benefits British businesses, instead of putting in place new barriers to trade that could cost them dear?
This statutory instrument relates not just to UK-EU trade, but to the requirement for a new framework for UK-wide trade, as we have been debating through the United Kingdom Internal Market Bill—now in the other place—because current treaty provisions also govern trade in goods across the UK. Will the Minister update us on where these issues are now up to, as we need to know before stripping away all the trade regulations that currently apply across the UK? As has been pointed out, any divergence needs to be agreed with the devolved Administrations, and that is why we are hoping that common standards for trading agreements will be agreed via the common frameworks put on a statutory basis. Ministers herald this approach, yet refuse to put them on a statutory footing. There have been many long discussions on this in the Chamber and in the other place. The Government recently lost votes on this aspect of the internal market Bill, so we are hoping that the Government will accept these amendments when they return. Can the Minister confirm that?
The Government must respect the devolution settlement and work collaboratively, in good faith, with the devolved Administrations to build that strong and thriving internal market with common standards underpinning it. Not doing so would threaten our precious Union by putting rocket boosters under the campaign for independence in Scotland. I know that the Prime Minister is very keen to talk about Christmas at the moment, but he seems to be giving the Scottish First Minister all her Christmases at once with his constant undermining of devolution recently. He seems to have made another blunder on that recently, propelling her campaign for Scottish independence by, as I said, putting rocket boosters under it.
On that point, I wonder whether the Minister would also explain to us the status of this statutory instrument. It is my understanding that her colleague the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Stratford-on-Avon (Nadhim Zahawi), wrote to his counterparts in the devolved Administrations to seek their consent for him to lay this statutory instrument, which she is taking on his behalf, as some goods potentially affected by this instrument fall under devolved competence. I understand that consent has been received from the Welsh Government, but not yet from the Scottish Government—I do not know whether SNP spokesman wants to come in on this. I am not sure whether we can lay and agree to this statutory instrument today on that basis. What happens if the Scottish Government do not consent to it but Parliament already has? I do not know whether anyone knows the answer or whether the Minister wants to rise to clarify that.
“For clarity, as the GB intends to have its own regulatory regime after the transition period, these rights are being disapplied as it is no longer appropriate for them to coexist”—
coexist with what?—
“and pose some risk of challenge if we decide to diverge from EU law.”
Would it not be helpful to the House if the Minister, in replying, were to give us some explanation of the potential risk of challenge to something that the Government say is their objective in the negotiations—the free movement of goods without quantitative restrictions?
As other colleagues have pointed out in relation to other statutory instruments and through the passage of the United Kingdom Internal Market Bill, it is still unclear what checks, controls and processes will be put in place on qualifying Northern Ireland goods, which are also implicated in this statutory instrument, moving from Northern Ireland to Great Britain. Despite the Government’s protestations at the time about the very real dangers, as they saw them, of EU attempts to blockade NI-GB movement and goods, there was absolutely nothing to deal with that apparent clear and present danger in the Bill, as we discussed at the time. We support unfettered access for Northern Ireland businesses to the rest of the UK market. However, there are a number of issues that stand relating to the breadth of the definition of qualifying Northern Ireland goods. My right hon. Friend the Member for Leeds Central (Hilary Benn) is across that matter as well. The Government appear to acknowledge that it is problematic, but it remains unclear what they are going to do about it.
Today’s statutory instrument sheds no further light on that. In fact, it probably makes it even more complicated. We need further clarification, because the definition is not sufficiently tightly drawn to provide the protections intended. The wide drafting of the definition of “qualifying goods” is the problem, because it includes anything that is in circulation within Northern Ireland without being subject to customs control while there. However, it also includes goods processed in Northern Ireland from Great Britain-derived goods, which are themselves subject to customs control in Northern Ireland. I hope people are keeping up, as this is quite a complex subject, which is why I hope the Minister will properly respond. As my hon. Friend the Member for Sheffield Central (Paul Blomfield) has said, that could include whisky imported from Scotland to Northern Ireland, which might be in duty suspension in Northern Ireland but then is used to make mince pies in Belfast. That would leave those mince pies as qualifying Northern Ireland goods, despite the whisky used to make them being subject to customs controls. So we have argued that the definition of qualifying Northern Ireland goods is not sustainable in the longer term. It appears that Ministers agree, but will the Minister let us know today what plans the Government have to resolve this?
We are also concerned about the impact on standards across the UK. Given that Northern Ireland is, in essence, within the EU single market for goods, any good allowed to be sold within the EU as complying with the EU single market must be allowed to be sold in Northern Ireland. So if, for example, Wales decided to extend the EU environmental standards applicable to vehicle emissions, the combinations of regulations would mean that Wales could not succeed, because a lower standard vehicle would be on sale lawfully in Northern Ireland and would be a qualifying Northern Ireland good. The mutual recognition principle in the United Kingdom Internal Market Bill would override that desire of the Welsh Government. Given that processed goods from Northern Ireland may include components originating outside the country, does the approach outlined in the statutory instrument for qualifying goods have wider implications for the UK’s approach to the rules of origin with the rest of the world? I do not know whether the Minister wants to take this opportunity to respond—she may have had a chance to brief herself a little more during my speech while considering her closing remarks. As she will have understood, the statutory instrument, far from being a cursory, quick bit of legislation, has massive implications for businesses and others who, I am afraid, have been left wanting, given what we have heard today.
As this debate has shown once again, there are—[Interruption.] You are nodding, Madam Deputy Speaker; I am on my peroration, you will be pleased to hear. As the debate has shown, there are huge uncertainties still facing businesses that trade in goods and services, even those whose markets are mainly internal. Given that that now comes on top of the biggest economic crash that we have seen probably for 300 years, and the huge uncertainty still surrounding businesses, not least our manufacturers, as we have heard, due to the covid-19 crisis, the Government really need to step up and get a Brexit deal done, allow time for businesses to prepare and absorb the consequences of that deal, and get on with something out all these outstanding issues relating to the UK internal market. The House has expressed huge disappointment and shock that the Government have not taken this very important opportunity of its own making to come to the House today to explore and update us all on these very important matters facing business. The Minister will have an opportunity shortly to respond, and I hope that she will answer the many, many questions that we have raised today.
I understand that there is a parliamentary game going on and that the Opposition want to extend this debate because there are some other things that they do not want to discuss, but that is a matter for them. Oppositions are quite entitled to use what time is available for their own purposes.
So why do I support these regulations, and why are the Government doing this? The first reason is to take back control. That is what millions of people voted for, and many of us are very frustrated that it still has not happened. As the Minister stated clearly, this is about ensuring that, from 1 January, we in this House, on behalf of the British people, can decide for ourselves within international law what the rules shall be on tariffs, quantitative barriers, restrictions and inducements to trade—and how right that is.
I always find it so disappointing that the Opposition, who now say that they understand the spirit of Brexit and have embraced it, do not believe that they can come up with any single improvement on the great body of European law that has been forced on us over many years. I am more optimistic. Working with the talent on the Government Benches, I can see lots of ways of improving on European law. It can be better, not worse, and more rather than less in the right areas. Surely our trade policy should be geared to the interests and concerns of businesses that back this country by investing and creating jobs in it.
From 1 January, we in this House can do the things that are in the power of an independent country. We cannot instruct the EU when we are out of it any more than we could when we were in it. There has been a glittering array of failed issues that we put to the EU on which it did not sympathise with us. We had a series of Governments who were so broken-backed that they only ever accepted things that the EU wanted to do and did not try to do anything that we wanted to do, which is why it got so frustrating as a member of that body.
It is about taking back control, and I urge everyone here to be more optimistic about the powers of this House. What is the point of someone being a Member of Parliament if they do not believe that they can improve on anything in the inherited corpus of EU law? Why do the Opposition, on the whole, say, “Everything EU perfect, everything generated in this country rubbish”? It is not plausible, and it is against the spirit of the Brexit majority in this country. They want us to get a grip and do better. If we do not do better, they will change us. That is the joy of Brexit—they, at last, will get back control over us. If the law went wrong in the European Union, it did not matter who was in the Government. Even if they threw the Government out, nothing changed, because the EU would not change the law, whereas if we get the laws wrong, the public will know what to do—they can throw Ministers out.
The second point I want to make is that this is about our balance of trade and our balance of payments. One of the tragedies of our membership of the European Union over nearly 50 years was how we transformed ourselves from an industrial country with a strong farming and fishing industry into one that had been badly damaged by the rules and tariffs that the EU imposed on us and our trade with the rest of the world. It was asymmetric and very cruel.
We lost a large chunk of our motor industry in the first decade of our membership—I think it halved—and we lost a lot of our steel industry. We moved from being a net exporter of fish to being a heavy net importer, with much of our fish taken by foreign vessels and foreign industry. We have lost a lot of our self-sufficiency in temperate food, because the common agricultural policy did not suit us. State aid, cheap energy and so forth on the continent helped places such as the Netherlands to outcompete us on salads and flowers, for example.
We have a big job to do to rebuild ourselves as an industrial, farming and fishing country that is capable of cutting the food miles, cutting the fish miles and delivering more to ourselves and to our own plates through import substitution. I hope that from 1 January, if not before, Ministers will use these new powers to review all the restrictions and rules about trade and tariffs and create a British model that is better and fairer to Britain, so that “made in Britain” means something, and more is made in Britain and willingly bought by British people. It is very difficult for the Opposition to oppose that, although they will doubtless try to, because they always want to sell Britain short and to build the EU up to greater heights. None the less, outside this Chamber there will be great relief to know that at least some people in Parliament wish to see a revival of British fishing, British farming and British industry and to understand that the rules of trade and the skewed subsidies and tariffs against the rest of the world have been extremely damaging to people who want to build businesses and farming activities in the UK and that it is time for a reversal. I wholeheartedly support this measure. I want to take back control and I urge more MPs to get into the spirit of it, and, instead of cavilling and criticising every move that this country wishes to make to be independent, contribute to the debate about how we can be better.
As everyone in this Chamber is aware, we on the SNP Benches are trying to work our way out of this place. We do not always hold this place in the utmost respect, and today is another day that illustrates that, to be perfectly honest. The Minister took an intervention from me, said that she would answer my point and then sat down. She did not answer the intervention, did not respond to the point of order and did not give us very much in her speech at all. Then we have seen the Government Whips—my goodness, they have been busy today. We had seven withdrawals in the previous debate and something like 15 withdrawals in this debate. Madam Deputy Speaker, I take it that there is nothing you need to tell the House about why so many Conservative Members have had to withdraw from this debate.
I hope that you can show some forbearance, Madam Deputy Speaker, because as I thought there were so many speakers in the previous debate, I did not expect to be called so early in this one, so my notes are a wee bit haphazard; hopefully, you can bear with me on that.
I must commend the shadow Minister for her speech and for the amount of information that she covered. She highlighted the deficiencies that the Minister did not cover. She said that, in actual fact, when we talk about the movement of goods, one of the key issues is what it means for businesses and whether they are ready for this. We can talk about divergence in standards of the EU, but are businesses ready for what will happen on 1 January 2021? Have the Government given enough support to businesses? When we turn on the radio now, it tells us all, “Get ready for Brexit”. That is all very well, but it does not actually tell us what we need to do. What is the point in telling us to get ready, when there is no information that is clearly accessible to businesses about what they need to do? Are IT systems up and running? The companies need to know what they have to do to be able to export, and that is before we even get to divergence.
Just today, ironically, my office got a letter from the Secretary of State for Business, Energy and Industrial Strategy, which is supposed to be aimed at all businesses, but I can assure the Minister that although that letter might be a bit of propaganda, it does not clear up what businesses need to do going forwards.
The key question I had for the Minister earlier is about where we are on the consent of the devolved nations. Importantly, what discussions have been had with the devolved nations about what will happen if the UK Government wants standards to diverge from those of the EU? What would that mean in terms of how the devolved nations operate? What will it mean going forward? Are they going to ride roughshod over the wishes of the devolved Administrations, as with the UK Internal Market Bill and the shared prosperity fund, which was a mechanism to bypass the wishes of the devolved Administrations? Is that what we are looking at? It is symptomatic of the entire Brexit process and debacle.
I looked at the explanatory memorandum at the weekend—unusually for me, on a Saturday night I was sad enough to read an explanatory memorandum. It said that the Welsh Government had granted consent, but the Scottish Government had not. The explanatory memorandum has now been changed and does not refer to either the Welsh Government or the Scottish Government. It would be great if the Minister would clear up where things are on that. I would be happy to take an intervention—I am still happy to take an intervention. I see there are none coming.
I refer to a letter from Ivan McKee to Michelle Ballantyne MSP, convenor of the Economy, Energy and Fair Work Committee. He said:
“The UK Government is seeking to lay the SI as soon as possible in order to secure a debate in the UK Parliament before the end of the year. This timeframe means that the SI would need to be laid before Scottish Parliament consent is confirmed, however Mr Zahawi’s letter states that they will not debate the SI until consent is received, therefore the Scottish Parliament should have the usual 28 day period in which to scrutinise the notification.”
In the preceding paragraph, he also says:
“Scottish Ministers therefore consider that consenting to the regulation remains appropriate.”
The Scottish Government have indicated that they are willing to consent to the SI and are willing to work with the UK Government on it. The UK Government committed not to debate the SI until consent was given. As we are now debating the SI, I ask the Minister again whether consent has been formally given. Perhaps we can assume it has not been; it would be great if the Minister could clear that up later on.
This is about divergence. I understand the UK wants to protect itself from challenges. We can understand that—there is a need to have some legal protections—but the Minister did say it is not a precedent to diverging. Could she confirm that? Why would we want to diverge from the EU, especially at the moment, when we are still negotiating this trade deal that really determines the future of the UK, particularly in the short term, on 1 January? What is the status of the trade deal discussions? Surely the UK thinking about diverging has a massive impact on the trade deal because the trade deal will confirm what divergences are possible or not. It seems to me that the cart is before the horse. We can talk about taking back control, but unless the UK Government are capable of joining up the dots in the big picture, this SI matters not a jot.
We saw the same last night with the statutory instrument that directly amended primary legislation passed by the Scottish Parliament. Fair enough, it was relatively technical in nature, as is this measure, but it goes to the point of respect for the devolution settlement, and it goes to the point of democratic accountability that Brexit was supposed to bring forward.
Was the Labour Front-Bench spokesperson not right when she said that when the Government force through relatively technical stuff such as this statutory instrument what they are doing is driving a coach and horses through the devolution settlement, and they are doing our work for us, because they are undermining the case for the Union?
I agree with the point my hon. Friend made. Following up his earlier point about the contribution from the other Benches, I actually thought, “Oh my goodness, I’m going to have to listen to another 15 Conservative MPs telling me how great Brexit is going to be, how they are taking back control, how this is just another step in the way of taking back control and there’ll be wonderful trade deals.” So in one way there is a blessing: I do not have to listen to 15 speeches that are all the same. But in another way, it is disappointing that they have not turned up here to actually do their job and actually say what they wanted to say. That is disappointing.
We do have to wonder what divergences are planned by the UK Government, but also how these divergences are going to be managed. What is the process going to be? Will there be proper impact assessments undertaken, and will there be complete transparency on divergences that are proposed and what that means for businesses? How will we ensure that there are no unintended consequences from diverging in one area, which might affect more businesses adversely by stopping the export of their goods or preventing vital imports coming in? Those vital imports might prop up the supply chain of the key industries mentioned earlier, such as aerospace and automotive, because we rely on an EU-wide supply chain, with goods in the supply chain going backwards and forwards two or three times sometimes to create a finished product.
I was speaking about divergences. I hope that the Minister will clear up how the divergence process will work and how it will be transparent, because we need to ensure that no divergences are given to some cronies who shout the loudest, because that again might have a wider impact on other businesses. So far, there have been allegations of cronyism in how covid has been dealt with, in terms of supplies of personal protective equipment. I would never accuse the Government of cronyism in giving contracts to people they know and who might favour the Tory party, but other people have done that, so I hope that the Minister will give us assurances that any divergences from the EU will be done with the best interests of UK businesses at heart and, again, done with the wishes and agreement of the devolved Administrations.
A key point, as I said, is divergences, and this is all about the movement of goods. Where are we with regard to the movement of goods in terms of a no deal? Are we still reliant on the EU making concessions, just because the UK is not in a position to check in common goods? If we are going to look at diverging, we have to be able to manage what we have got just now, never mind changing things going forward.
This question was raised yesterday. The Minister at the Dispatch Box was not able to answer it but, on checking goods and the movement of goods, how many custom agents will be required? How many have been trained? Yesterday, the hon. Member for Bristol East (Kerry McCarthy) highlighted that the Cabinet Secretary estimated that 50,000 customs agents are needed, but that it is also estimated that only 10,000 have been trained to date. The Minister could not clear that up. This Minister has been taking lots of notes, so although she has not intervened, I am expecting a lengthy response. I hope that she can tell us where we are with training and employing customs agents and whether there will be enough in place on 1 January 2021.
The reality of Brexit preparations, as described by my hon. Friend the Member for Glasgow East (David Linden), was illustrated yesterday by the passing of the Kent borders regulations, which allow the police to stop lorry drivers entering Kent because of the fear of the utter chaos at the border in January. That shows that the UK Government have not done enough and that more work needs to be done. Clearly, all those issues matter in the immediate short term, and need addressing in the long term before we start looking at divergences of standards.
Is there any planned divergence for agricultural standards? That has been touched on and is important. The UK Government resisted protecting those standards for future trade deals in the Agriculture Act 2020. What does the SI mean regarding the UK’s ability to diverge from the EU? While the UK wants to avoid challenge, what does that mean for the devolved nations in terms of the UK Government protecting themselves? Will they impose their will on the devolved nations? I mentioned the point earlier, but on divergences, will the internal market Bill become the kicker through the back door by allowing divergences to be forced on the devolved nations against their will?
We do not accept that the UK Government have any legitimacy in imposing divergence from the EU acquis on Scotland’s behalf as a member of the UK. On democratic principles, we do not consent to allow any withdrawal of Scotland from the EU. That applies to the withdrawal agreement and any subsequent legislation used to enforce the unwanted and undemocratic divergence from the EU, which Scotland voted overwhelmingly to remain a member of.
We do not accept the economic impact of diverging from EU rules, and that also applies to leaving the transition period, particularly because, as we discussed, the economy faces unprecedented challenges as we try to recover from the covid pandemic. We do not support or accept the need for the UK internal market Bill, which potentially allows divergences to be forced on the devolved Administrations against their wishes. We really need better co-operative working from the UK Government.
It would be ironic, when there seemed to be consensus from the Opposition that they would not oppose the SI, if, unless we start to hear decent responses from the Minister, there was a vote on it after all.
I stress that my opening speech was short because these regulations do not result in any immediate change and will not introduce any changes for business. The regulations mean that if we choose to diverge from the EU requirements, either actively or by changing our legislation, or by not keeping pace with the EU regulations, we cannot be challenged under the EU treaty. As I have made clear—
As I have made clear, the SI is not a precondition for divergence, nor does the SI itself introduce any diversion from current laws. I have set out today, however, the importance of this SI to ensuring that we are not faced with legal challenges that seek to keep us in line with EU regulations. This will ensure that we have the freedom to regulate in Great Britain how we see fit, considering the impact on businesses and consumers, while ensuring that UK product safety remains one of the strongest in the world.
We have engaged with officials across all the devolved Administrations, sharing drafts of the SI and taking them through the changes as appropriate. Consent has been received from the Welsh and Scottish Governments as some of the changes are subject to devolved competence. The SI will not impact on Wales’s and Scotland’s ability to regulate those that fall under these areas of devolved competence. Articles 34 to 36 of the treaty on the functioning of the European Union will still apply in Northern Ireland by virtue of the Northern Ireland protocol. It is therefore not necessary for this SI to extend to Northern Ireland.
Coming on to business participation, since the summer the Department has been rolling out an ambitious series of readiness events for businesses and has published a range of guidance, including on this requirement, on placing goods on the market from January 2021. Let me once again stress that this SI itself does not—
Let me once again stress that this SI itself does not introduce any changes for businesses.
These regulations give business greater certainty that as UK rules change they will not be rolled back after any legal challenges based on them. At the end of the transition period, EU treaty rights on the movement of goods stemming from articles 34 to 36 of the treaty on the functioning of the European Union will be retained in UK law unless they are removed by this SI. The UK will have its own regulatory regime after the end of the transition period. However, if retained, these EU treaty rights could impact our ability to diverge from EU regulation in the future. The EU treaty rights prohibit quantitative restrictions of equivalent measures on imports and exports, meaning that divergence from the EU regulatory requirements could result in a challenge. This SI will remove the EU treaty rights flowing from articles 34 to 36 of the treaty on the functioning of the European Union.
My Department published guidance on gov.uk on 1 September and 10 November detailing requirements on placing goods on the Northern Ireland market, as well as arrangements for access to the rest of the UK. My Department also issues regular transition bulletins that provide the latest readiness information. When the SI comes into force on 1 January 2021, it will protect our right to diverge from the EU regulations without being challenged under the EU treaty rights. I commend these regulations to the House.
Question put and agreed to.
Resolved,
That the draft Prohibition on Quantitative Restrictions (EU Exit) Regulations 2020, which were laid before this House on 9 November, be approved.
On resuming—
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