PARLIAMENTARY DEBATE
EU Withdrawal Agreement - 9 December 2020 (Commons/Commons Chamber)
Debate Detail
We had to ensure that Northern Ireland businesses retained unfettered access to the rest of the UK market. Northern Ireland’s place in the UK’s customs territory had to be protected, and that meant that goods that stayed in the UK were not subject to tariffs. We had to ensure that the important Great Britain-Northern Ireland trade flows, on which lives and livelihoods depend, were not disrupted; we needed to ensure a smooth flow of trade with no need for new physical customs infrastructure.
I am pleased to say that on Monday, the European Commission Vice-President Maroš Šefčovič and I, as co-chairs of the Joint Committee set up to negotiate the implementation of the protocol, came to an agreement in principle on a deal that meets all those commitments and puts the people of Northern Ireland first. I would like to begin by paying tribute to Maroš Šefčovič and his team for their pragmatism, collaborative spirit and determination to get a deal done that would work for both sides. I would also like to thank the First Minister, the Deputy First Minister and all the Members of the Northern Ireland Executive for their crucial intervention at significant moments to ensure that the rights of the people of Northern Ireland were protected.
I turn now to the first Government commitment. This deal protects unfettered access for Northern Ireland businesses to their most important market. As the Prime Minister underlined, this had to be protected in full, and that meant removing any prospect of export declarations for Northern Ireland goods moving from Northern Ireland to Great Britain. That is what our agreement will do. There will be no additional requirements placed on Northern Ireland businesses for these movements, with the very limited and specific exceptions of trade in endangered species and conflict diamonds.
On the second commitment, the deal safeguards Northern Ireland’s place in the UK’s customs territory. As recently as July, the Commission had envisaged a default tariff scenario in which
“all goods brought into Northern Ireland”
were
“considered to be at risk…and are as such subject to the Common Customs Tariff.”
If that had been implemented, that would have raised the prospect of a 58% tariff on a pint of milk going from Scotland to a supermarket in Strabane or a 96% tariff on a bag of sugar going from Liverpool to the shops of Belfast. As we have repeatedly made clear, this could never have been an acceptable outcome.
Instead, I am pleased to say that under the agreement that we have reached, Northern Ireland businesses selling to consumers or using goods in Northern Ireland will be free of all tariffs, whether that is Nissan cars from Sunderland or lamb from Montgomeryshire. Internal UK trade will be protected as we promised, whether we have a free trade agreement with the EU or not.
Thirdly, this deal would keep goods flowing between Great Britain and Northern Ireland in January and provide some necessary additional flexibilities. It protects Northern Ireland’s supermarket supplies. We heard throughout the year that traders needed time to adapt their systems. That is why we have a grace period for supermarkets to update their procedures. Our agreement prevents any disruption at the end of the transition period to the movement of chilled meats. British sausages will continue to make their way to Belfast and Ballymena in the new year, and we have time for reciprocal agreements between the UK and the EU on agrifood, which can be discussed in the months ahead. This deal also protects the flow of medicines and vet medicines into Northern Ireland. That means we will grant industry a period of up to 12 months to adapt to new rules under the protocol, which will avoid any disruption to critical medical supplies.
So those are three commitments entered into, and three commitments that we have upheld. But this agreement goes further still, providing additional flexibility that will enable us to make the most of the opportunities that face us as the transition period ends. As you know, Mr Speaker, this House has been concerned about the risk of so-called reach-back from the state aid provisions that the protocol applies. The concern that many colleagues had was that a company in Great Britain with only a peripheral link to commercial operations in Northern Ireland could be caught inadvertently by the tests within the protocol’s text. That would not have been acceptable, nor was it what the protocol had envisaged. That is why I am pleased that the agreement we have addresses that risk. It means that firms in Great Britain stay outside state aid rules where there is no genuine and direct link to Northern Ireland and no real foreseeable impact on Northern Ireland-EU trade. That is an important step forward in dealing with an issue raised by a number of Members across the House.
This deal also ensures that Northern Ireland will be out of the common agricultural policy, which means that the Northern Ireland Executive have full freedom to set their own agricultural subsidies for Northern Ireland’s farmers. It also means appropriate and flexible arrangements, so that more than £400 million of spending each year is totally exempt from state aid rules. As well as that, the deal ensures that support for fishermen in Northern Ireland will be exempt from EU state aid rules, which means more than £15 million of flexibility for Northern Ireland’s fishermen over the next five years. And, of course, Northern Ireland’s services industries are totally outside the scope of the protocol and its state aid measures.
The agreement also respects the protocol provisions, which were endorsed by Parliament, that allow some EU officials to be present at Northern Ireland ports as UK authorities carry out our own procedures. Let me be clear: there will be no Belfast mini embassy or mission, as some in the EU originally sought, and the EU officials will not have any powers to carry out checks themselves. There will instead be sensible, practical arrangements, with co-operation and reciprocal data sharing, so that both sides can have confidence in these unique arrangements. We also want to leave no doubt about our ongoing commitment to peace and prosperity in Northern Ireland. My right hon. Friend the Northern Ireland Secretary will set out in the coming days further measures of financial support to help businesses and communities to prosper and thrive from the end of the year and beyond.
We have been able to deliver a package which now means that the protocol can be implemented in a pragmatic and proportionate way. It takes account of the Belfast/Good Friday agreement in all its dimensions, and it protects the interests of both the EU single market and, more importantly, the territorial and constitutional integrity of the whole United Kingdom. This agreement will be approved officially at a Joint Committee meeting in the coming days. Of course, the agreement we have reached also enables the Government to withdraw clauses 44, 45 and 47 of the United Kingdom Internal Market Bill and avoids the need for any additional provisions in the Taxation (Post-transition Period) Bill. Having put beyond doubt the primacy of the sovereignty of this place as we leave the EU, we rest safe in the knowledge that such provisions are no longer required.
We know that we now need to get on and give further clarity to business as to the specifics of what this deal means for them and how it will work in practice, and we will do that through the publication of further guidance. That will sit alongside the ongoing intensive work that we will take forward to implement the protocol. Above all, we will always work with the interests of the people and businesses of Northern Ireland in mind, as this agreement and the important flexibilities it will provide reflects. We must all remember that, if the protocol is to work, it must work for the whole community in Northern Ireland. Whether it is to be maintained in the future, as the protocol itself sets out, is for the people of Northern Ireland to decide through the democratic consent mechanism that my right hon. Friend the Prime Minister negotiated. On that critical note of the primacy of democracy, I commend this statement to the House.
Northern Ireland’s Department of Agriculture, Environment and Rural Affairs says that the border infrastructure simply will not be ready in time. Manufacturing NI says that just 9% of businesses in Northern Ireland are ready for the end of the transition period. The systems needed to make trade flow, such as the Trader Support Service, reportedly will not even be going live until 21 December—eight working days before the end of the transition period. This really does give new meaning to “the night before Christmas”.
Last December, the Prime Minister said:
“We’re a UK government, why would we put checks on goods going from NI to GB or GB to NI? It doesn't make sense.”
With that in mind, will the Minister explain why today’s documents confirm that on trade from GB to NI there will indeed be a range of checks? The trusted trader scheme will be removed after three and a half years and reviewed then, with further uncertainty at that point.
The exemption on agrifood checks is available for only three months, so will the Minister tell us what guarantees there are on prices and availability of fresh food supplies in Northern Ireland after 1 April? Will custom checks be required just three months into 2021? All that raises the question: did the Prime Minister actually know what he had signed up to last year, and then give false assurances to the House, or did he simply not care? This is a disgraceful way to treat businesses in good times, never mind in the middle of a pandemic.
On the trade deal needed for Northern Ireland, and for Great Britain too, we are told that the level playing field remains an outstanding area of disagreement, yet the Prime Minister’s political declaration, which he signed with the EU, spoke of a future relationship with
“open and fair competition, encompassing robust commitments to ensure a level playing field.”
Some Conservative MPs are agitated by the idea of a floor on workers’ rights. Indeed, no fewer than three Cabinet Ministers jointly wrote a book that said that British workers are
“among the worst idlers in the world.”
We on this side of the House do not agree with that statement. Neither do the people of our country, who want more security at work, not less. There are some siren voices among those on the Government Benches, who appear to view any agreement with the EU as a betrayal. The Minister should know that the true betrayal would be job losses, border chaos and price rises in our shops.
The Minister referred to cars from Nissan and lamb exports from Wales, and that they will be tariff-free in Northern Ireland, but as he knows, they need to be tariff-free with the EU too. We on this side of the House want the negotiations to succeed. We want the Government to keep their promises and come back with the oven-ready deal that we were promised at the general election less than a year ago. Sometimes it feels as though we on this side of the House want the Government to succeed and bring back this deal more than those on the Government’s own Back Benches do.
Deal or no deal, there are preparations that still need to be made for Northern Ireland, and for Great Britain too. I want to ask again about customs agents, because just minutes ago, the Prime Minister did not seem to have any answers on how many there are. Earlier in the year, the Minister agreed with industry estimates of 50,000 customs agents needed. Since then, he has told the BBC that the number had increased fourfold, but he omitted to tell us what the figure was. Let us give him another chance: how many customs agents are in place and are we ready for the end of the transition period?
It is not just me asking these questions. Richard Burnett, chief executive of the Road Haulage Association, says:
“The big issue that we face is that there are insufficient customs agents”
and that without them and the correct paperwork,
“we are likely to see vehicles being turned around… That is going to create significant chaos and significant queues.”
On lorry parks, will the Minister tell us how many inland border facilities are ready and will they ensure the free flow of lorries and vehicles from 1 January? Can he guarantee the House that there will be no disruption to medical or food supplies from 1 January?
Ours is a great country, and Labour wants to see a good life for all our people, but, as great as our country is, it cannot afford to be afflicted by Government incompetence. Every price rise, every traffic jam, every lost contract and every redundancy caused by this Government’s mistakes and poor planning holds our great country back. Next year must be a year of rebuilding and recovering from covid-19, not dealing with the fallout of reckless decision making, tariffs or incompetence. So this is decision time for this Government, and it is time to get the deal.
The hon. Lady asked about border infrastructure. Let me emphasise that this border infrastructure is there to ensure that sanitary and phytosanitary checks can be made. As she and the House know, it is already the case that the island of Ireland is a single epidemiological zone, and therefore when live animals move from Great Britain to Northern Ireland there are physical checks. There will be border facilities in order to ensure that these limited and proportionate SPS checks can be carried out at the port of Foyle, Warrenpoint, Belfast and Larne, and we have reassured the Commission, and indeed others, about the speed and effectiveness with which the necessary limited infrastructure will be in place.
The hon. Lady also asked about the Trader Support Service, which is there to help Northern Ireland businesses. I am pleased that we spend over £200 million in order to support Northern Ireland businesses, and I think it is the case that more than 10,000 businesses are now signed up to the Trader Support Service in order to ensure that they will incur no costs as a result of the protocol.
The hon. Lady also asked about the future of the trusted trader scheme, which, as she rightly pointed out, guarantees that goods being sold in Northern Ireland and businesses operating in Northern Ireland will face no tariffs. It is the case that we will have an opportunity to review how that scheme operates, but it will only need to be reviewed if there is a demonstrable diversion or illegal activity, and in those circumstances there is an obligation on both parties to seek alternative arrangements. I should stress again that no additional customs checks will face goods going from Northern Ireland to Great Britain.
The hon. Lady asked about customs agent capacity overall. It is the case that £84 million has been made available in order to increase capacity, and the latest survey by HMRC shows that there has been a fourfold increase in capacity. Of course, one of the reasons why we are phasing in import controls over six months next year is to ensure that the sector can increase even further, but that fourfold increase in capacity gives us the confidence we need that all the staff will be there.
The hon. Lady mentioned Richard Burnett of the Road Haulage Association. He, along with Dave Wells of Logistics UK and other figures in the haulage and logistics industry, has played an invaluable role in making sure that the Government do everything necessary to prepare, but I would never shirk from saying that more needs to be done.
The hon. Lady asked about the level playing field and workers’ rights. We have a proud tradition of upholding workers’ rights and ensuring that we have social and environmental protections in this country that are higher than in many other European countries. That will not change—that is a source of pride—but one thing we cannot accept in the course of the level playing field negotiations is the demand from some in the EU that if the EU adopts new laws, we would automatically have to follow those laws or face penalties. We are not afraid to say that our standards are high and we will uphold them, but we are also not afraid to say that the people of this country voted to take back control, and that is what this Government will do.
I do not know whether the Chancellor of the Duchy of Lancaster has come to the House today looking for some sort of “congratulations and well done” for all this. I suppose it is “well done” for taking us all to the very brink with the very worst of negotiation statecraft on what was supposed to be the easiest deal in the world, “well done” for the emerging chaos at our ports and businesses taking flight, or maybe even “well done” for in a few weeks denying our young people the right to live, work and love freely across a continent. Tonight, we are going to have the last supper—but we know it is the British people who will be crucified.
Yes, what Northern Ireland has got is great for it. “Best of both worlds” is a phrase that we in Scotland are pretty much familiar with; it is what we were promised in 2014. Now, in 2020, we are faced with the worst of all worlds. We would give our right arm for access to the EU single market and unfettered access across the rest of the UK market, so can the Chancellor of the Duchy of Lancaster explain to the Scottish people exactly why Scotland is the only part of the United Kingdom that will not get any part of what it voted for on Brexit?
On the basic question, it is the case—the hon. Gentleman recognises, as I recognise—that Northern Ireland has a unique position within the United Kingdom as a result of having a land border with the European Union, which no other part of the United Kingdom does, and that requires specific arrangements. But whatever those specific arrangements, it is the case that Northern Ireland, by the will of its people, remains part of the United Kingdom. Long may it remain so.
Will the Chancellor of the Duchy of Lancaster also confirm today that he will appear before the European Scrutiny Committee? As he knows, he has declined to do so on at least three occasions, most recently on 26 November. We put this to him in writing but so far he has not been able to come. Will he please commit right now, today, to coming before the Committee as soon as possible?
For example, it has been reported that food products coming from GB into Northern Ireland will be exempt from export health certificates for a period of at least three months, and that chilled meats—the right hon. Gentleman referred to sausages—will be allowed for a period of time, pending a review, after which they might be prevented any more from moving from GB to Northern Ireland. What is going to happen after those dates? How exactly are businesses going to be able to prepare when they have not yet seen the detailed arrangements, because the Joint Committee is not going to meet for a couple of days, and when those details may well change yet again in a few months’ time?
“this Protocol leads to serious economic, societal or environmental difficulties that are liable to persist…the United Kingdom”
Government
“may unilaterally take appropriate safeguard measures.”
Safeguarding the Union is not a three-month, six-month or three-year project; it is an enduring commitment. Will the Chancellor of the Duchy of Lancaster now give a commitment that, if necessary, the Government will introduce safeguard measures to ensure unfettered access in both directions for trade between Great Britain and Northern Ireland?
The fate and the future of businesses in the north-east are very dear to me, having lived and worked in Newcastle in the past. It is striking how many of those who work for businesses in the north-east voted Conservative just 12 months ago, which is why Conservative MPs in Blyth Valley, in Bishop Auckland, in Redcar and across the north-east are standing up—[Interruption.] I will mention more constituencies that the Conservatives won if the hon. Lady likes: North West Durham, with Consett, is now a Conservative constituency; Sedgefield, with Spennymoor, is now a Conservative constituency—[Interruption.] Anyway, as the hon. Lady and the House know, the north-east is Tory, and that is because we stand up for workers.
Let me turn to the two specific areas that the right hon. Gentleman mentions. It is the case that the limited number of EU officials—I think it is probably no more than two dozen at most—who will come into Northern Ireland will be working alongside UK officials. The UK officials will be in the lead there, but we want to provide the EU with assurance. On the matter of where goods are sourced from, I cannot think of any better place for goods in Northern Ireland supermarkets to be sourced from than Northern Ireland itself. Wonderful though produce in the Republic of Ireland is, I do not think it is the case that there is any better producer—[Interruption.] The hon. Member for Glasgow North (Patrick Grady) asks about bananas. I think he is referring, of course, to SNP policy on trade. But when it comes to pork products, there is nothing better than an Ulster fry.
At the end of last month, Jim Harra told the Public Accounts Committee that Her Majesty’s Revenue and Customs is concentrating on seven key IT systems that need to be changed or built from new to enable GB-EU trade to continue and to enable us to comply, particularly, with the Northern Ireland protocol. Will my right hon. Friend update me on those systems? Will they be completed before the end of the transition period?
“once a derogation period has elapsed, Northern supermarkets will have to source such products locally or from the South.”
Will the right hon. Gentleman explain why it is acceptable to him to disadvantage Scotland and our food exporters in such a way? Is it not just another example of why Scotland would be better off as an independent nation state within the EU?
I am all for pragmatism, because that is the best way to sort out a deal that works for Welsh lamb farmers and, for that matter, British car manufacturers and all the rest of it, but I want to ask the right hon. Gentleman about the foreign policy element. On a pragmatic basis, we have always done rather well out of persuading other countries in Europe to adopt, for instance, sanctions against Putin, and we have tried to get people on board with our policy on Hong Kong. How will we be able to do that in future if we have poisoned the well by not having any long-lasting trade deal at the end of the week?
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