Northern Ireland Protocol: Disruption to Trade

(Urgent Question): To ask the Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office if he will make a statement on the disruption to trade between Great Britain and Northern Ireland as a result of the Northern Ireland protocol.

I am grateful for the chance to update the House on the operation of the Northern Ireland protocol. The protocol exists to recognise Northern Ireland’s unique position as the only part of our United Kingdom to have a land border with the EU. It was designed to ensure that no customs infrastructure is needed between Northern Ireland and the Irish Republic, while protecting unfettered access for Northern Ireland’s businesses to the rest of the UK market and the gains of the peace process and, of course, respecting Northern Ireland’s position as an absolutely integral part of the United Kingdom.

As with any new trading arrangement, the protocol undoubtedly generates challenges as well as providing solutions. The Government are committed to addressing those challenges by providing pragmatic solutions to any problems that arise and working with the Northern Ireland Executive in the interests of all the people of Northern Ireland. UK Government Ministers are in daily contact with Ministers in the Executive, and with businesses in Northern Ireland and Great Britain, to ensure the effective operation of the protocol.

Inevitably, the impact of covid and the steps taken by the French Government at their border have affected retail businesses across the United Kingdom, but it is important to stress that freight volumes going into Northern Ireland’s ports are at normal levels for this time of year. There have been no significant queues, and supermarkets are now generally reporting healthy deliveries of supplies into Northern Ireland.

None the less, the new processes that the protocol asks of businesses that are moving goods from Great Britain to Northern Ireland require the Government to do more. We are working with companies across Great Britain to help them understand the new requirements for moving goods, and the extensive Government support includes the trader support service, to which more than 25,000 businesses are now signed up, yet we know that still more needs to be done.

Thank you, Mr Speaker, for the opportunity to put this urgent question.

I thank the Minister for his response. He has sought to address a number of the issues that I wish to raise. I have to say to him, however, that the difficulties encountered by Northern Ireland consumers and businesses may be greater than he recognises. I am still being contacted by constituents who are finding it difficult to order online items from Great Britain. There are many parcel companies and others that will not deliver to Northern Ireland and will not even accept orders from Northern Ireland as a result of the Northern Ireland protocol.

Businesses in Northern Ireland are also having difficulty ordering spare parts for equipment and importing raw materials. Just this week, our steel manufacturers in Northern Ireland have been informed that they face a 25% tariff on some steel imports as a direct result of the Northern Ireland protocol, because we cannot align with the UK quota on that.

Consumers continue to face difficulties in supermarkets. It is not the case that all supermarket shelves are fully stocked. Yesterday, we met some of the main supply chain people in Northern Ireland, who talk of ongoing difficulties in bringing goods in from Great Britain to Northern Ireland. Those issues need to be resolved.

The Minister referred to haulage and specifically to groupage. I welcome his commitment to find a practical solution to that with DEFRA. We need to continue to work on that, because we have seen at least 40% of hauliers returning to Northern Ireland with empty trailers because of the Northern Ireland protocol and its impact. Although the trader support scheme is welcome, more needs to be done to inform and assist businesses in Great Britain about the operation of the protocol and how they can continue to send goods into Northern Ireland, because our experience is that that is clearly not well understood.

Order. I think Minister Gove needs to be able to answer the question.

I am grateful to the right hon. Gentleman for raising those issues. Members of Parliament from across Northern Ireland, representing all parties, and indeed Members of the Assembly and Northern Ireland businesses, have been in touch directly with me and others to provide detailed information about the challenges that individual companies face. We are grateful for that, because we want to do everything that we can to resolve those problems.

On the specific questions that the right hon. Gentleman raises, there have been some online sales organisations that temporarily paused the distribution of goods to Northern Ireland, but the majority of parcel distributors continue to distribute goods. We are working with those who have paused—a small number, admittedly—to ensure that they resume normal service. It is important to recognise, as he pointed out, that although Northern Ireland’s businesses have been well prepared for the protocol, there are businesses sited in Great Britain, which operate in Northern Ireland, that we need to work more closely with to acquaint them with the guidance to provide the necessary reassurance.

The right hon. Gentleman made a point about steel tariffs; those tariffs would provisionally apply only to steel from the rest of the world, not to steel from Britain or the EU entering Northern Ireland, but we are looking at ways in which we can provide, through either the quotas or appropriate rebates, an automatic guarantee that businesses will not pay those tariffs for the steel that they need.

The right hon. Gentleman mentioned the concern that customers have had about the shortage of specific goods in supermarkets. There was initial disruption, but I am pleased to say that Andrew Opie of the British Retail Consortium confirmed earlier today to the Future Relationship with the European Union Committee that those shortages have now been overcome, pretty much. The right hon. Gentleman is absolutely right, though, that we need to make sure that we have a sustainable approach for the end of the grace period at the end of March, and I will be working with Helen Dickinson of the BRC, and others, to do just that.

Will my right hon. Friend introduce urgent legislation to ensure the smooth flow of goods between Northern Ireland and GB? Is it not crucial to our Union, in respect of both Northern Ireland and Scotland, that the Government keep their promise to take control of our laws and borders and to demonstrate a more prosperous internal market for the whole UK?

My right hon. Friend is absolutely right. We want, first of all, to make sure that we are doing everything technically and administratively to ensure the smooth flow of goods necessary, but, as the Prime Minister confirmed to the House earlier, if we need to take further legal steps, then of course we will.

The disruption to trade between Great Britain and Northern Ireland is serious and it is unacceptable. We have seen the empty supermarket shelves, the lorries from Northern Ireland that have been stuck in Britain or are returning empty, and the unnecessary checks on everything from guide dogs to people moving house. These problems were foreseen time and again in this House and elsewhere and they are, I am afraid to say, the inevitable consequence of the Government’s shambolic preparations for the protocol and the last-minute guidance given to business.

The Chancellor of the Duchy of Lancaster has acknowledged that British business was not prepared for the changes to the trading relationship—and little wonder, when the main Brexit advert running in Britain does not mention Northern Ireland at all, the Secretary of State for Northern Ireland sends tweets denying that there is a border of any description, and the Prime Minister just claimed that there was no disruption whatsoever. This denialism is incredibly frustrating to those dealing with the consequences of this Government’s actions.

Although the protocol is far from perfect, it must be made to work, so I would be grateful if the Chancellor of the Duchy of Lancaster could set out what explicit steps he is taking to support British businesses, and how many British-based businesses have accessed the trader support service. Will he set out the plan for the Joint Committee to resolve the many outstanding issues, and how he will avoid the cliff edges to the grace periods in April and July? Will he confirm whether any easements have been sought with his counterparts on sanitary and phytosanitary or customs checks?

Of utmost importance to us today is that the protocol explicitly commits all parties to ensure that it impacts as little as possible on the everyday life of communities in Northern Ireland. As it stands, those communities are currently facing shortages and price rises, which will only get worse unless the Government are honest about the challenges that we face, engage with business and take the urgent action that is required.

I am grateful to the hon. Lady for all the points that she raises; they are all legitimate. It is important, of course, to recognise that some of the problems that were identified in the very first few days of the operation of the protocol have been addressed. As I mentioned, Andrew Opie of the British Retail Consortium explained to the FREU Committee earlier today that the supply of goods to supermarket shelves is now pretty much as normal. It is also important to recall that, as the Prime Minister stated earlier, no trucks have been turned away and that we now have normal traffic for this time of year. But the hon. Lady is right to say that there are and will remain challenges that it is the Government’s responsibility to address.

The hon. Lady asked specifically about engagement with the trader support service. As I mentioned earlier, more than 25,000 businesses have engaged with the TSS, but there is more that the Government must do to ensure that all businesses are acquainted with the new procedures that the protocol requires and that our departure from the European Union requires when it comes to trade across the short straits.

The hon. Lady is absolutely right: the protocol should impact as little as possible on the lives of the citizens of Northern Ireland. That is why I will be working not just with businesses and representatives in Northern Ireland, but through the Joint Committee to ensure that we have a pragmatic approach towards grace periods and the operation of the protocol, because we want to make sure that the citizens of Northern Ireland, who are integrally part of the United Kingdom, are valued in the same way as her own constituents and mine are by everyone in this House.

I welcome my right hon. Friend’s remarks. I particularly welcome the confidence that he is planning to give to UK businesses to continue to trade in Northern Ireland—a fantastic base for their products and services. Will he confirm that the protocol is a joint UK-EU responsibility and, in that light, will he look at setting up immediately the joint working group, beneath the Joint Committee, and also use his negotiating talents and the relationships that he built up last year in completing the protocol to make 2021 a grace period for supermarkets in Northern Ireland? I think the EU will be up for that deal, so let us make it happen.

I am grateful to my right hon. Friend. No one has better negotiating skills than him. We remember that it is almost a year to the day since the “New Decade, New Approach” agreement was concluded, which restored democratic government to Northern Ireland. That was secured thanks to his leadership as a superb Secretary of State for Northern Ireland.

My right hon. Friend is absolutely right that the protocol is a joint responsibility and I will be talking to my colleagues in the Commission as well as to representatives of the Government in Dublin to ensure that we do everything possible to smooth life for citizens of Northern Ireland. He is absolutely right: it is a wonderful place in which to live and to do business, and in this year of all years we must do everything possible to support the citizens of Northern Ireland.

Having lectured businesses for months about being prepared, it seems that the UK Government themselves have failed to prepare for this hard Brexit. When the Minister promised Northern Ireland the best of both worlds in trade, I wonder whether he envisaged lorries trapped in red tape at a border that he and the Secretary of State have claimed does not exist.

Does the Minister accept that businesses are facing greater uncertainty and greater administrative burdens than promised? Will he explain what is being done to help Northern Ireland hauliers and facilitate groupage? Can he explain why Scottish Government warnings over the need for greater flexibility on grace periods are being ignored? That is particularly vexing considering the democratic outrage at the disregarding throughout of Scotland’s position.

Does the Minister acknowledge the difficulties being caused for businesses, consumers and communities in Northern Ireland, along with the grave damage being done to the Scottish seafood and food and drink industries among others, and what will he do to resolve these issues? Finally, will he commit the UK Government to working with all the devolved Administrations to address the damage being done to businesses across the UK?

I thank the hon. Lady for her points. It is important to stress that no lorries have been trapped in red tape. Lorries have been able to get into Northern Ireland without let or hindrance, which is why, as I mentioned earlier, Andrew Opie pointed out that supplies on supermarket shelves are as they should be. However, she is right to raise the question of groupage. It is a specific issue that the Department for Environment, Food and Rural Affairs and the Cabinet Office are seeking to resolve when there are mixed loads from a number of different locations, all of which require appropriate SPS—Sanitary and Phyto Sanitary—certification. We will be coming forward with proposals to address that specific problem in due course.

The hon. Lady is right to raise the specific issue of seafood supplies. Owing to their perishable nature, it is absolutely vital that we ensure the smoothest possible access to European and other markets. I am very grateful for the constructive approach that has been taken by the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) who, unlike those in the SNP, has come forward with some specific pragmatic solutions to this issue.

The final thing I would say is that, although many of the hon. Lady’s points are legitimate, as I mentioned, I cannot help reflecting that there is a certain irony in the Scottish National party complaining about barriers to trade within the United Kingdom when its signature policy, which it is pursuing even at this time of covid, is to erect new trade barriers within the United Kingdom and, indeed, to impoverish Scotland’s people. I know that that is not what she wants, but it would be the effect of her policies.

Is this chiefly an issue of valid applicability of the protocol, or of over-zealous—and perhaps erroneous—interpretation? If it is the former, when will my right hon. Friend take steps to address it with our European counterparts? If it is the latter, what will the Government do to better explain what hauliers and others in the industry can do to follow the rules and get it right?

The truth is that it is a combination of factors. The first and most important thing is to make sure that all businesses, particularly businesses in Great Britain that trade and do business in Northern Ireland, understand what is required of them. That responsibility rests on my shoulders and on the Government’s; that is the first and the single most important item. The second thing, as my hon. Friend quite rightly points out, is not so much that there is an over-zealous application—for example, by the Northern Ireland Executive—but that there is, in the way in which some of the rules apply, a rigidity, which we need to address. That is why we are taking the action that we are—for example on VAT, on steel imports and on groupage.

The right hon. Gentleman has received a letter from the big supermarkets warning of the risk of further disruption to Northern Ireland food supplies from April, and this morning the Committee on the Future Relationship with the European Union heard evidence from the British Retail Consortium that unless there are changes, the system will not be workable for supermarkets. Of course, he cannot guarantee that the current three-month grace period—in which, for example, export health certificates are not required—will be extended, because that is a matter for the Joint Committee. What will happen if it is not extended? What would that mean for choice and prices for consumers in Northern Ireland?

The right hon. Gentleman makes a very important point. As I mentioned earlier, I am grateful to his Select Committee for the exchanges with Andrew Opie, which provided reassurance about the operation of the protocol at the moment, but he is right to raise the letter that was sent to me by Helen Dickinson of the British Retail Consortium on behalf of a range of supermarkets. We are working intensively with those supermarkets and the Commission to address the problems. So far in my experience, Maroš Šefčovič, the Vice-President of the Commission, has always taken a pragmatic approach. As the shadow Secretary of State for Northern Ireland, the hon. Member for Sheffield, Heeley (Louise Haigh) reminded us, it is the responsibility of both the UK and the EU to ensure that the protocol impacts as little as possible on the lives of Northern Ireland citizens.