Northern Ireland Protocol: Implementation Proposals

(Urgent Question): To ask the Secretary of State for Northern Ireland if he will make a statement on the preparations for the implementation of the Northern Ireland Protocol.

My Secretary of State is on the way to Northern Ireland this afternoon, and has asked me to respond to this question on his behalf. We continue our work to implement the protocol in a pragmatic and proportionate way that minimises the disruption to people’s day-to-day lives and preserves the gains of the 22 years since the Belfast/Good Friday agreement was signed. We are helping traders to prepare for the end of the transition period. We published business guidance in August, and are updating it all the time as arrangements are finalised. We have established the trader support scheme, backed by £200 million of Government funding. More than 7,000 businesses have signed up, and hundreds more are joining them every day. We are considering further support measures for agrifood traders, with further details to be announced shortly.

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.

Thank you for granting this urgent question, Mr Speaker. There are 43 days until the end of the transition period, and it is hard to express the frustration, anxiety and fears that have been relayed to me and to the Minister by countless businesses and communities in Northern Ireland, as the clock has started to tick. Northern Ireland needed every second of this transition year to get ready for the biggest changes to its trading relationship that it has ever known, but vital time has been squandered, first with the denial that any checks would take place at all, and then with the extraordinary spectacle of the Government threatening to tear up their own oven-ready deal and breach international treaties that they had signed into law—an approach that the Minister has just confirmed they are sticking to when the Bill returns to this House from the other place.

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?

Order. Can I just say that when I grant an urgent question, it is for two minutes, but we are now over three minutes? I did give the hon. Lady some time, and I think the Minister will have picked it up.

Delivering on the protocol is a crucial part of operations for the end of the transition period. Providing certainty is urgent and we will continue to prioritise this. As we implement the protocol, it is important to keep in mind that it was designed as a way of implementing the needs of our exit from the EU in a way that works for Northern Ireland and, in particular, as the hon. Lady says, maintaining the Belfast/Good Friday agreement in all its dimensions—the gains of the peace process and the delicate balance across communities that explicitly depends on the consent of the people of Northern Ireland for its continued existence.

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.

It is 43 days until 31 December and covid-hit businesses are exasperated —and I share that exasperation. Every witness the Select Committee on Northern Ireland Affairs has heard from says that they wish to obey the rules, whatever they are. When are they going to know definitively what they have to do and how they have to do it, in order to keep themselves in business and on the right side of the law?

I absolutely recognise the concern that businesses have, which has been reflected to me and to the Secretary of State in our meetings, and their desire to have absolute certainty on this. As my hon. Friend will recognise, some of these things are still subject to ongoing negotiations with the EU; of course, I would much rather that they had already been resolved, as I know he would. However, we want to ensure that for those things that are within our gift, we provide that certainty, and the UK Government are doing that when it comes to unfettered access. For those things that stand to be resolved, we continue to negotiate in good faith to resolve them so that we can put that information in front of businesses, but what we are doing already is progressively providing guidance where agreements have been reached. We will continue to pursue that.

I am appalled by the lack of seriousness with which the UK Government are taking issues in Northern Ireland. We have warned about it for long enough: even this morning, this House’s Committee on the Future Relationship with the European Union heard from Victor Chestnutt, the president of the Ulster Farmers’ Union, who has no axe to grind politically in this. He said that we are approaching 1 January

“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?

I simply do not recognise the picture that the hon. Gentleman paints. The protocol will ensure that many of the key issues about which his party has warned over the years are addressed with respect to the end of the transition period, and that there is no disruption at the border, as some have suggested in the past that there could be. We will absolutely deliver on that, and I am looking forward to giving evidence to the Select Committee on the issue of cross-border co-operation. I am convinced that strong co-operation to tackle crime, including organised crime, can continue between the UK and the Republic of Ireland.

It will be essential to restore the United Kingdom Internal Market Bill to the status quo ante, will it not?

Yes.

This morning, the Committee on the Future Relationship with the European Union took evidence from the Ulster Farmers’ Union, the Northern Ireland Retail Consortium and Manufacturing NI. Their message was clear: Northern Ireland businesses and the supply chain will not be ready for 1 January, because they do not know what to plan for, they do not know what goods will be identified as being at risk, and they are not confident that customs facilities, checks and software will be ready in time. As the Minister knows, the Department of Agriculture, Environment and Rural Affairs itself says that it will not be possible to complete the necessary work by 1 January. Given the length of time the Government have had to prepare for the bits they do control, how on earth has it come to this?

I recognise the meticulous and detailed work that the right hon. Gentleman does on his Select Committee, and the importance of all those stakeholders he has mentioned. We do want to provide the certainty and the structure, and I have already given an update in my statement on IT systems and some of the support we are providing through the trader support service. However, he will recognise that some of these issues are not yet resolved due to ongoing negotiations with the EU, and I am sure he would join me and the First Minister and Deputy First Minister of Northern Ireland in urging them to work with us to resolve those in a pragmatic manner.

The very point of the protocol is to uphold the Good Friday agreement, and also to protect consumers in Northern Ireland. The First Minister and Deputy First Minister recently made that clear when they wrote to the European Union. Does my hon. Friend agree that if the EU is as serious as we are about peace, prosperity and the people of Northern Ireland, it must take a pragmatic and proportionate approach to all negotiations?

My hon. Friend is spot on. It is also important that both parties to the protocol bear in mind the wording in that protocol about protecting the everyday life of people in Northern Ireland. That is absolutely crucial to this, and it is something that we should both be working to deliver.

The Minister will be aware that the protocol enables the UK Government to act unilaterally where that is necessary to protect the economy of Northern Ireland. In relation to the single market Bill and the Finance Bill, will he assure the House that he will bring forward those proposals and measures that are necessary to protect Northern Ireland’s place in the internal market? Does he recognise that there is cross-party and cross-community support for a period of time for the implementation of those measures, to allow our businesses, supermarkets, and others to prepare properly?

The right hon. Gentleman makes an incredibly important point. He mentioned our approach to the return of the UK Internal Market Bill to the Commons and a Finance Bill later this year, and although I do not have specific control of that, I am happy to make those commitments to him and to all parties in Northern Ireland. It is crucial that we resolve these issues, and he has set out one of the most sensible ways to do that.