PARLIAMENTARY DEBATE
Northern Ireland Protocol: Implementation Proposals - 18 November 2020 (Commons/Commons Chamber)
Debate Detail
We are getting on with the work that we need to do so that our systems and facilities are ready. We are putting in place the IT systems that are needed to process goods movements, supported by £155 million, which we announced in August. We are working with the Northern Ireland Executive on the delivery of expanded points of entry for agrifood, with the contract now awarded and work under way on arrangements on day one and thereafter.
We are getting on with putting the legislative framework in place for manufactured goods and food safety among many other issues, and our programme is well on track to be delivered in full by the end of the year. We are delivering on our unequivocal commitment to unfettered access. We have provided for robust protections in the United Kingdom Internal Market Bill for mutual recognition and a prohibition on new checks and controls. We will re-table those clauses when the Bill returns to the House.
We laid a draft statutory instrument in Parliament, which was approved on 10 November by this House, and is scheduled for debate in the other place on 30 November. That will ensure that on 1 January Northern Ireland businesses can continue to move their goods as they do now. We are working with the Executive to introduce a longer-lasting second phase of that system, to focus its benefits on Northern Ireland businesses, in the course of 2021.
We are working intensively and in good faith through the Joint Committee to pursue the solutions that we need to support our approach. We have already agreed a phased approach for medicines rules in Northern Ireland, ensuring that those critical goods can continue to flow. We have agreed an approach to scoping the application of the electricity directive in respect of Northern Ireland’s single electricity market that will ensure that the single electricity market continues to deliver for Northern Ireland.
We are working to ensure that UK internal freight is not subject to tariffs, and to remove export declarations from Northern Ireland to GB trade. We continue to pursue specific solutions for supermarket trade, noting the huge social and economic importance of avoiding disruption. That essential work will continue at pace in the coming days but, of course, I cannot give a running commentary on discussions with the European Union.
The result of that recklessness and incompetence is that thousands of businesses still do not know the bare basics of how they will trade with Great Britain in just six weeks’ time. As the president of the Ulster Farmers Union said this morning, we are in a transition, but we do not know what we are transitioning to. The whole purpose of the protocol was to protect the Good Friday agreement in all its dimensions, and the relationship east-west is as important as the relationship north-south. The Government’s reckless approach to negotiations, and their incompetent failure to prepare, risk significant disruption, a maximalist interpretation of the protocol and completely unnecessary checks. Ministers should take their heads out of the sand and give businesses the answers for which they have been begging throughout this transition year.
First, on the customs declaration service, which will handle over 1 million declarations in January alone, experts say that they need 18 months to get traders ready for the new system, so why has the industry not had the final version? Given that those experts now say that it is simply too late for the system to work, what are the contingency plans to avoid widespread disruption on 1 January? Will there be flexibility to allow businesses to adapt to new systems? What is plan B?
On the trader support service, which the Minister mentioned and which is supposed to guide businesses through the complex new customs arrangements, can he confirm that the Government are not seriously considering leaving it until 21 December for that system to go live? Why have businesses had no information whatsoever on the tariff rebate system, as confirmed by the chief executive of Manufacturing NI this morning? Where is the border operator model promised by the Chancellor of the Duchy of Lancaster overthe summer? Without it, traders are completely in the dark on what data they will need to provide in order to move goods.
Finally, on food imports, which the Minister mentioned, a compromise is now desperately needed—and the EU has a huge responsibility of its own to deliver this—in order to reduce checks that some supermarkets and food producers say could lead them to pull out of Northern Ireland altogether. It is absurd that food destined for Northern Ireland supermarkets should be considered a risk to the EU single market, so is either a temporary waiver requirement or a permanent trusted trader scheme about to be confirmed? Again, why have the Government refused to engage directly with Northern Ireland retailers?
Northern Ireland desperately—
For the protocol to work, it must respect the needs of all Northern Ireland’s people, respect the fact that Northern Ireland is an integral part of the customs territory of the UK, and be implemented in a way that protects Northern Ireland’s economy. Our approach does that, focusing on implementing the protocol in a way that is flexible and proportionate, and protecting the interests of both the whole of the United Kingdom and the EU. As I have already said, the Government have already taken practical steps to do this, working in partnership with the devolved Administration.
The hon. Lady referred to the delivery of IT systems. I can confirm that the delivery of IT systems necessary for the end of the transition period is on track. The recent National Audit report confirms that since May, Her Majesty’s Revenue and Customs has made progress, putting in place the core elements of the IT services required. As a responsible Government, however, we continue to make extensive preparations for a range of fall-back scenarios. We have been working with key delivery partners to support preparations for IT systems delivery, and we will continue to support their preparations for the end of the transition period.
We are reaching agreement with the EU on individual areas of approach—for instance, the phased approach to medicines that I referred to, and agreement on the process for identifying Northern Ireland traders for VAT purposes and enabling them to reclaim VAT through existing IT databases when trading in goods with the EU. However, the hon. Lady is right to reflect that there remain important outstanding issues to be resolved in discussion with the EU. For example, we are seeking, through the Joint Committee, specific solutions to the issues supermarkets and of the classification of which goods are at genuine and substantial risk of entering the EU market. Those are still subject to discussion and need to be agreed with the EU. There are real-world consequences for businesses and consumers if they are not, which we believe would be contrary to the intentions of the protocol. We have agreed with the EU to intensify the process of engagement, to resolve all outstanding issues. These discussions are ongoing, and we continue to act in good faith and in line with the approach we have adopted throughout.
The Government are committed to ensuring that businesses and communities are ready for the end of the transition period, and our intensive programme of engagement with industry has continued at pace. The business engagement forum has met 20 times since May, and this month the Chancellor of the Duchy of Lancaster formed a UK-wide business readiness task- force. The hon. Lady talked about the importance of supermarkets and food producers, and I can confirm to her that one of the most recent meetings was between the Secretary of State and supermarkets.
We have also made considerable progress in the provision of guidance, publishing over 25 pieces of sectoral guidance in recent weeks for moving goods between Northern Ireland and Great Britain. We will continue to work with businesses in this manner and ensure that they are provided with the guidance and support they need to be ready.
“with both arms tied behind our back and a blindfold on.”
The other place heard last week from the Police Service of Northern Ireland that there is a real risk that there are bad men on all sides of the discussion in Northern Ireland ready to take advantage of chaos, and that internationally, we could see organised crime focusing on Northern Ireland because of the lack of preparation and uncertainty. This just is not ready yet, Minister. Northern Ireland needs an adjustment period: are preparations ready for that? Failing that, what plans are there for a relocation of police officers to Northern Ireland on a massive scale, in order to assist with such procedures as will need to be enforced because of his Government’s failure?
“totally unacceptable level of risk”
in getting the vital customs declaration service ready for 1 January and that it risks paralysing all of Northern Ireland’s trade movements. Ministers were warned in summer 2019 that industry will need a year to test, trial and implement this new system, so how can it be right, with 43 days left, that the final version has still not been delivered?
“simply isn’t worth jeopardising access to the single market for the sake of global trade”?
The Chancellor of the Duchy of Lancaster told the Future Relationship with the European Union Committee on 8 October that border infrastructure in Northern Ireland would be ready for exit day, but the permanent secretary in charge of the project to deliver that infra- structure in Northern Ireland’s Department of Agriculture, Environment and Rural Affairs has said that the project is unachievable and will not be finished until June 2021. What is the Minister’s explanation for the difference between those two statements?
Will the Minister give me a cast-iron guarantee that traders operating between the Welsh ports—Pembroke, Fishguard and Holyhead on Anglesey—and either the Republic of Ireland, or Northern Ireland in internal UK trade that transits the Republic of Ireland in either direction, will not face any difficulties with IT systems, checks or processes come the end of the transition period?
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