PARLIAMENTARY DEBATE
Northern Ireland Protocol - 17 May 2022 (Commons/Commons Chamber)
Debate Detail
As a Government, we want to see a First Minister and Deputy First Minister in place, and we want to work with them to make further progress. The basis for successful power sharing remains strong, as my right hon. Friend the Prime Minister laid out yesterday. However, the Belfast/Good Friday agreement is under strain, and, regrettably, the Northern Ireland Executive has not been fully functioning since early February. This is because the Northern Ireland protocol does not have the support necessary in one part of the community in Northern Ireland. I also note that all Northern Ireland’s political parties agree on the need for changes to the protocol.
The practical problems are clear to see. As the House will know, the protocol has not yet been implemented in full, due to the operation of grace periods and easements. However, EU customs procedures for moving goods within the UK have already meant that companies are facing significant costs and paperwork. Some businesses have stopped this trade altogether. These challenges have been sharpened by the post-covid economic recovery. Rules on taxation mean that citizens in Northern Ireland are unable to benefit fully from the same advantages as the rest of the UK, such as the reduction in VAT on solar panels. Sanitary and phytosanitary rules mean that producers face onerous restrictions, including veterinary certification, in order to sell foodstuffs in shops in Northern Ireland.
These practical problems have contributed to the sense that the east-west relationship has been undermined. Without resolving these and other issues, we will not be able to re-establish the Executive and preserve the hard-won progress sustained by the Belfast/Good Friday agreement. We need to restore the balance in the agreement.
Our preference is to reach a negotiated outcome with the EU; we have worked tirelessly to that end and will continue to do so. I have had six months of negotiations with Vice-President Maroš Šefčovič, which follow a year of discussions undertaken by my predecessor. The UK has proposed what we believe to be a comprehensive and reasonable solution to deliver on the objectives of the protocol. This includes a trusted trader scheme to provide the EU with real-time commercial data, giving it confidence that goods intended for Northern Ireland are not entering the EU single market. We are already sharing over 1 million rows of goods movement data with the EU every week.
Our proposed solution would meet both our and the EU’s original objectives for the protocol. It would address the frictions in east-west trade while protecting the EU single market and the Belfast/Good Friday agreement. The challenge is that this solution requires a change in the protocol itself, as its current drafting prevents it from being implemented, but the EU’s mandate does not allow the protocol to be changed. That is why its current proposals are unable to address the fundamental concerns. In fact, it is our assessment that they would go backward from the situation we have today with the standstill.
As the Prime Minister said, our shared objective must be to find a solution that can command the broadest possible cross-community support for years to come and protect the Belfast/Good Friday agreement in all its dimensions. That is why I am announcing our intention to introduce legislation in the coming weeks to make changes in the protocol.
Our preference remains a negotiated solution with the EU. In parallel with the legislation being introduced, we remain open to further talks if we can achieve the same outcome through a negotiated settlement. I have invited Vice-President Šefčovič to a meeting of the Withdrawal Agreement Joint Committee in London to discuss that as soon as possible.
However, to respond to the very grave and serious situation in Northern Ireland, we are clear that there is a necessity to act to ensure that the institutions can be restored as soon as possible. The Government are clear that proceeding with the Bill is consistent with our obligations in international law and in support of our prior obligations in the Belfast/Good Friday agreement. Before any changes are made, we will consult businesses and people in Northern Ireland as our proposals are put forward.
I want to be clear to the House that this is not about scrapping the protocol; our aim is to deliver on the protocol’s objectives. We will cement the provisions in the protocol that are working, including the common travel area, the single electricity market and north-south co-operation, while fixing those elements that are not, such as the movement of goods, goods regulation, VAT, subsidy control and governance.
The Bill will put in place the necessary measures to lessen the burden on east-west trade and to ensure that the people of Northern Ireland are able to access the same benefits as the people of Great Britain. It will ensure that goods moving and staying within the UK are freed of unnecessary bureaucracy through our new green channel.
That respects Northern Ireland’s place in the UK’s customs territory and protects the UK internal market. At the same time, it ensures that goods destined for the EU undergo the full checks and controls applied under EU law. That will be underpinned by the data-sharing arrangements that I have already set out. It will allow both east-west trade and the EU single market to be protected while removing customs paperwork for goods remaining in the United Kingdom.
The Bill will remove regulatory barriers to goods made to UK standards being sold in Northern Ireland. Businesses will be able to choose between meeting UK or EU standards in a new dual regulatory regime. It will provide the Government with the ability to decide on tax and spend policies across the whole United Kingdom. It will address issues related to governance, bringing the protocol in line with international norms. At the same time, it will take new measures to protect the EU single market by implementing robust penalties for those who seek to abuse the new system, and it will continue to ensure that there is no hard border on the island of Ireland.
I will publish more detail on these solutions in the coming weeks, and let me be crystal clear that, even as we do so, we will continue to engage with the EU. The Bill will contain an explicit power to give effect to a new, revised protocol if we can reach an accommodation that meets our goal of protecting the Belfast/Good Friday agreement. We remain open to a negotiated solution, but the urgency of the situation means we cannot afford to delay any longer. The UK has clear responsibilities as the sovereign Government of Northern Ireland to ensure parity of esteem and the protection of economic rights. We are clear that the EU will not be negatively impacted in any way, just as we have ensured the protection of the EU single market since the existence of the protocol.
We must restore the primacy of the Belfast/Good Friday agreement in all of its dimensions as the basis for the restoration of the Executive, and we will do so through technical measures designed to achieve the stated objectives of the protocol, tailored to the reality of Northern Ireland. We will do so in a way that fundamentally respects both Unions—that of the United Kingdom and that of the EU—and we will live up to our commitments to all communities of Northern Ireland. As co-signatory and co-guarantor of the Good Friday/Belfast agreement, we will take the necessary decisions to preserve peace and stability. I commend this statement to the House.
It is over two and a half years since the Government negotiated and signed the withdrawal agreement. That deal included the Northern Ireland protocol, which required, by its design, some trade barriers and checks in the Irish sea. That was clear from the outset and it was a choice by this Prime Minister and by the Government, yet now, barely two years later, the Government are trying to convince people that their flagship achievement was not a negotiating triumph, but a deal so flawed that they cannot abide by it. Either they did not understand their own agreement, they were not up front about the reality of it, or they intended to break it all along. The Prime Minister negotiated this deal, signed it and ran an election campaign on it. He must take responsibility for it and make it work.
The situation in Northern Ireland is incredibly serious. Power sharing has broken down, Stormont is not functioning and political tensions have risen, while people in communities across Northern Ireland face rising bills as the cost of living crisis deepens. The operation of the protocol has created new tensions that do need to be addressed by listening to all sides, as well as to business and to consumers, and both the UK Government and the EU need to show willing and good faith. This is not a time for political posturing or high-stakes brinkmanship.
Everyone recognises that the situation in Northern Ireland is unique, and we want checks to be reduced to their absolute necessary minimum and for them to properly reflect trade-related risks. It cannot be right, for example, that goods leaving Great Britain that have no realistic prospect of leaving Northern Ireland, such as supermarket sandwiches, face excessive burdens, and the EU needs to understand that practical reality. Unnecessary barriers will only hamper business, inhibit trade and undermine confidence and consent.
The Good Friday agreement was one of the proudest achievements of the last Labour Government. It is absolutely essential that it is protected. That is why we need calm heads and responsible leadership. We need a UK Government capable of the hard diplomatic graft to find solutions and an EU willing to show flexibility. The right response to these challenges cannot simply be to breach our commitments. It is deeply troubling for the Foreign Secretary to be proposing a Bill to apparently break the treaty that the Government themselves signed just two years ago. That will not resolve issues in Northern Ireland in the long term; rather, it will undermine trust and make a breakthrough more difficult. It would drive a downward spiral in our relationship with the EU that will have damaging consequences for British businesses and consumers. It is Cornish fisherman, County Down farmers and Scotch whisky makers who will lose out, holding back the economy while growth forecasts are already being revised down.
But this goes beyond matters of trade. Britain should be a country that keeps its word. The rest of the world is looking at us and wondering whether we are a country that they want to do business with. When we seek to negotiate new deals abroad, do the Government want to make other countries question whether we will keep our end of the bargain? There are wide-ranging and damaging repercussions, undermining our ability to hold others to account for their own commitments, when we should be pulling together in support of Ukraine, for example, not fuelling divisions with our European allies.
The right approach is for the Government and the EU to work together to find practical solutions to these problems, and to brief the media less and to negotiate more. There is no long-term unilateral solution, and only a solution that works for all sides and delivers for the people and businesses of Northern Ireland will have durability and provide the political stability that businesses crave and the public deserve. We believe that should begin with a veterinary agreement that would eliminate the vast majority of checks on produce going from Great Britain to Northern Ireland. New Zealand has an equivalence agreement, and it should not be beyond the Government and the EU to negotiate one that reflects the unique circumstances in Northern Ireland.
We would also negotiate with the EU for more flexibility on VAT in Northern Ireland, to fully align Northern Ireland VAT rules with those of Great Britain. We would use that to take VAT off Northern Ireland energy bills, funded by a one-off windfall tax on oil and gas producer profits, to help ease the cost of living crisis.
If the Government are determined to plough on with the Bill that the Foreign Secretary has proposed, will they agree to prelegislative scrutiny by the Foreign Affairs Committee, and will they set out clearly to the House why this does not break international law?
Labour wants to make Brexit work and for Britain to flourish outside the EU. We want the Government to take responsibility for the deal they signed, to negotiate in good faith and to find practical solutions, not take reckless steps to prolong uncertainty in Northern Ireland and damage Britain’s reputation. We want the EU to show the necessary flexibility, to minimise all barriers, and to work with the UK Government and listen to all sides in Northern Ireland. That is the right approach, that is the responsible approach, and it is what is in the long-term interests of the people of Northern Ireland, and indeed of the whole of the United Kingdom.
I welcome the hon. Gentleman’s acknowledgment that there are issues with taxation, with customs, and with procedures and bureaucracy. Fixing those issues does require the EU to be open to changing the protocol. As yet, and I have had six months of talks with Vice-President Šefčovič—my predecessor had 12 months of talks—the EU has been unwilling to open the protocol. Without that, we cannot deal with the tax issue, we cannot deal with the customs issue and we will not sort out the fundamental issues in Northern Ireland. It is our responsibility, as the Government of the United Kingdom, to restore the primacy of the Belfast/Good Friday agreement to get the Executive up and running.
In answer to the hon. Gentleman’s question about legality, we are very clear that this is legal in international law, and we will be setting out our legal position in due course.
“The first duty of Government is to uphold the law. If it tries to bob and weave and duck around that duty when it’s inconvenient, if government does that, then so will the governed, and then nothing is safe—not home, not liberty, not life itself.”
Those are not my words, but Margaret Thatcher’s. Respect for the rule of law runs deep in our Tory veins, and I find it extraordinary that a Tory Government need to be reminded of that. Could my right hon. Friend assure me that support for, and honouring of, the rule of law is what she and the Government are committed to?
Neither my colleagues nor I deny for one moment the hurt and upset caused to many in Northern Ireland by the protocol, but we must not forget that Scotland and Northern Ireland as a whole both voted against Brexit, and that there was not cross-Union consent for where we are now. If the consequences of that deal are judged to be not in the best interests of the people of Northern Ireland, we need to be honest and recognise that the consequences of the entire withdrawal agreement are not in the interests of any place in the UK, because “getting Brexit done” has meant border checks for goods going from Great Britain to the EU or to Northern Ireland, but an absolute free-for-all for anything coming into Great Britain.
We on the SNP Benches have said all along that a stable agreement needs to be reached with the EU that works for all parts of the UK, and I genuinely wish the UK Government well in that, but with the crisis in Ukraine, the last thing we need to be doing is thrashing around here pointlessly in a snare of our own making. Domestic legislation will, even if passed, not wash away the need to comply with international commitments; nor will it change the fact that if the UK is neither in nor aligned with the single market and customs union, that still creates a trade border that needs to go somewhere.
Restoring devolved government in Northern Ireland and resolving the self-inflicted wounds of Brexit will require good will, trust and a negotiated settlement. I am sorry to say that the threats of unilateral legislative action by this Government to override their own deal are unlikely to be taken seriously in Belfast, and will not be taken seriously in Brussels; there is absolutely no reason why they should be taken seriously in this place either.
On the response from the EU, I point out that our solution makes the EU no worse off. We have proposals to protect the single market and to ensure enforcement of the green and red lanes. I hope that it looks at our proposals in a reasonable way, just as we are putting them forward in a reasonable way, and that we can work together on a solution.
Today’s statement is a welcome, if overdue, step. It is a significant move towards addressing the problems created by the protocol, and towards getting power-sharing based on cross-community consensus up and running again. We hope to see progress on a Bill to deal with these matters in days or weeks, not months. As the legislation progresses, we will take a graduated and cautious approach.
We want the Irish sea border removed, and we want the Government to honour their commitment in the New Decade, New Approach agreement to protect Northern Ireland’s place in the UK internal market. The statement today indicates that that will be covered in legislation that brings about revised arrangements. Under the Belfast/Good Friday agreement, power sharing can be stable only if there is cross-community consensus, but there is not consensus on this at the moment on the part of the Unionist community. We want the political institutions functioning properly as soon as possible, but to restore Unionist confidence, decisive action is now needed in the form of legislation, in order to repair the harm that the protocol has done to the Acts of Union, and in order to put in place sensible arrangements that, in the words of the Queen’s Speech, ensure the
“continued success and integrity of the whole of the United Kingdom...including the internal economic bonds between all of its parts.”—[Official Report, House of Lords, 10 May 2022; Vol. 822, c. 3.]
The words today are a good start, but the Foreign Secretary will know that actions speak louder than words. I welcome her commitment to decisive action in her statement to the House.
“ensures that goods destined for the EU under the full checks and controls”,
so there will still be checks. On that basis, has she received an assurance from the DUP that, even with these continued checks, it will agree to re-enter the Executive?
In terms of cross-community consensus, can the Secretary of State assure the House and the people of Northern Ireland that her Bill will be placed before Parliament before the summer recess, so that people can see what progress—practical rather than words—has been made?
“great success for Northern Ireland…fully compatible with the Good Friday agreement.”—[Official Report, 19 October 2019; Vol. 666, c. 581.]
So to be clear, why are the Government now abandoning their oven-ready Brexit deal?
I welcome the Foreign Secretary’s statement and the work that the Northern Ireland Secretary has engaged in for some time. The House is aware of the White Paper that was published last summer and aware that the conditions to trigger article 16 had been met, and it is now fully aware of the constitutional imperative—for good governance and democracy in Northern Ireland—that this matter is resolved. I implore the Foreign Secretary, in recognising that urgency, that weeks and weeks for the introduction and passage of legislation is not quick enough; we need to see movement now.
I want to highlight one area. Many people in Northern Ireland have seen the protocol as the introduction of a surrender Act for Northern Ireland to become part of an all-Ireland economy. That has created its own difficulties. Many Members have focused on measures to do with veterinary medicine and food, but this affects every aspect of our economy, and I am mainly worried about the constitutional position and the message that that has given to Northern Ireland. To those who have seen it as a surrender Act, I am telling them today: it is no surrender.
“act on its responsibility to safeguard the future of Northern Ireland and replace this damaging and community-splitting protocol”.
With his comments in mind, one really wonders what John Hume would make of the divisive and majoritarian approach of his successor, the hon. Member for Foyle (Colum Eastwood).
The Foreign Secretary’s statement is welcome. It correctly identifies some of the fundamental problems with the protocol and the need to act in the absence of agreement with the EU. Given that she has accepted the need to address these issues urgently, does she understand that good intentions for another day will do nothing to address the urgent problems we face, and that we need to have words backed up by actions immediately?
There is rising anger in Northern Ireland in relation to the Northern Ireland protocol. The hon. Member for North Dorset (Simon Hoare) said on the radio this morning—I notified him at 10.46 am that I would be mentioning him—that filling out a form to buy something should not make someone less British, which illustrates his woeful misunderstanding of the Unionist position and, further, undermines his ability to act impartially as Chair of the Northern Ireland Affairs Committee.
Does the Secretary of State agree that this is precisely why tensions have been escalating? And does she understand that this typifies why the Unionist community my party represents has lost faith, and that words cannot restore that faith? As I think she is saying, we need to see concrete legislation and less harmful discourse.
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