What recent discussions he has had with Cabinet colleagues on the potential merits of devolving spending in Northern Ireland of (a) structural and (b) investment funding after the end of the transition period to the Northern Ireland Executive.
The UK shared prosperity fund will help to level up and create opportunities for people and places across the United Kingdom. The Government will co-ordinate funding on a UK-wide basis, working with the devolved Administrations and local communities to ensure that it is used most effectively. The Northern Ireland Executive and the other devolved Administrations will be represented in the fund’s governance structures to help target this funding to the people and places that are most in need.
The spending of the shared prosperity fund, according to clauses in the United Kingdom Internal Market Bill, would override devolution, with no duty to consult on spend in devolved areas. We know that the internal market Bill intends to breach international law, and yesterday it was indicated that a further breach of international law was likely to come in the taxation Bill. Far from being limited and specific, it seems that disregard for the Good Friday agreement is unlimited while people desperately want certainty and a deal. Can the Secretary of State give us any assurances that next week’s Bill will not further undermine the Northern Ireland protocol and the chances of a deal and the certainty and the stability that people so desperately want?
If the hon. Lady looks at the clauses in the United Kingdom Internal Market Bill, she will see that they are about protecting and delivering on the Good Friday agreement to ensure that there are no borders. To deliver that, it is important that we have no border not just north to south, but east to west as well. On the UK shared prosperity fund, if she looks at my answer to the substantive question, she will see that I was very clear that the devolved authorities would be part of that, but of course this is money over and above; this is extra money that we will be looking to spend—in the same way that the EU has always been able to spend— once we have left the EU to ensure that those communities have the support that we have said they would have.
Does my right hon. Friend agree that any spending requirements and demands made by and within Northern Ireland would be enhanced and likely to receive a more welcome ear in the Treasury and elsewhere were the Executive to crack ahead and create the independent fiscal council, which would act as a very convincing mouthpiece for those pleas?
My hon. Friend makes a hugely important and very accurate point. I think we sometimes forget this but the fiscal council was actually first agreed back in the “Fresh Start” agreement of 2015 and recommitted to in the “New Decade, New Approach” deal of January this year. I have been talking to the Executive about this. I had hoped to see it up and running by the autumn. I think it is important that the Executive and the Department of Finance get on with this and deliver on it. It will help them for budgeting purposes and ensure that, in the same way that we have the Office for Budget Responsibility and the Irish Government have an independent fiscal council, people can be clear about the transparency and understanding of the money being spent in Northern Ireland. I think it would be the right thing to do, and I am looking forward to seeing the Executive deliver it as quickly as possible.
UK-EU Future Relationship: Businesses
John Mc Nally (Falkirk) (SNP)
What assessment he has made of the effect on businesses in Northern Ireland of negotiations on the future relationship between the UK and the EU.
We want a relationship with the European Union that is based on friendly co-operation between sovereign equals and centred on free trade. We will have a relationship with our European friends—one that is inspired by our shared history and values. The whole of the United Kingdom, including, of course, Northern Ireland, stands to benefit from such a trading relationship with the European Union. In fact, Northern Ireland businesses have a huge potential under the Northern Ireland protocol, and of course Northern Ireland will continue to enjoy tariff-free access to the EU market, alongside unfettered access to the whole of the UK.
John Mc Nally [V]
I hope you are well, Mr Speaker.
Scotland is the largest exporter of seed potatoes in the single market. That is a product on which a great many Northern Irish potato farmers rely. This has been placed under threat by the lack of equivalence between the UK and the EU after the transition period. When will the Minister confirm a date for our attaining equivalence on seed products? If he cannot give us a date, is that not more evidence that the Government do not care about Scotland’s farming communities?
Actually, it is quite the contrary. The hon. Gentleman can look at the delivery of money last week, for farmers particularly. That is evidence of the Government’s determination to deliver on our commitment to, and our understanding of the importance of, the agriculture and farming community across the United Kingdom, with £315 million going to Northern Ireland farmers. Through the Joint Committee, we are working with the European Union on some of these final issues to ensure that we do have that free flow. We have been saying to our partners and colleagues in the EU that they need to play their part in being pragmatic about ensuring that we continue to see that sensible free flow of trade across the United Kingdom, as a sovereign nation.
The Secretary of State will recognise the importance to Northern Ireland businesses of getting agreement on the classification of qualifying goods and qualifying businesses as they relate to trade between Great Britain and Northern Ireland within the UK single market. What progress has been made on securing such agreement and on defining at-risk goods, and what measures will the Government bring forward in legislation to ensure that Northern Ireland businesses really do have unfettered access to the UK internal market?
I should put it on record that I also think you look well, Mr Speaker.
On an equally serious note, as the right hon. Gentleman knows, this Government are committed to ensuring that Northern Ireland businesses have unfettered access to the rest of the United Kingdom. That is why we have taken the steps that we have taken in legislating for the first phase of unfettered access; that is what those clauses in the United Kingdom Internal Market Bill are for. We are building on and learning from the discussions that we have had with businesses and the Northern Ireland Executive. We are pushing hard to secure agreement with the EU on a number of outstanding issues that relate to the protocol, including that of at-risk goods. We accept that tariffs should be paid on goods moving from Great Britain into the EU, but there should not be any tariffs on internal UK movements that begin in Great Britain and end in Northern Ireland; they are internal movements. I hope that the right hon. Gentleman will understand that I am not able to comment on the progress of the negotiations, although we are keen to move through them as quickly as possible. I reassure him that we are focused on those issues and are determined to deliver in full on our commitments to the people of Northern Ireland.
I thank the Secretary of State for that helpful response. I am sure that he will agree that those who talk loudly about the Good Friday agreement are the people who are threatening the economic prosperity of Northern Ireland by insisting on measures that are completely unnecessary in terms of protecting the agreement. Will he therefore indicate what progress has been made in securing a commitment from the EU to a significant grace period to allow Northern Ireland businesses sufficient time to adjust to the new arrangements that will be introduced when the transition period ends on 31 December?
The right hon. Gentleman identifies, quite rightly, the importance of ensuring that there is no border between Great Britain and Northern Ireland. We have accepted the sanitary and phytosanitary checks. We are working with the EU, and both the UK and EU have committed to that intensified process, as colleagues will have seen, and to resolving all outstanding issues with the implementation of the Northern Ireland protocol, including securing the flexibilities that we need for trade from Great Britain to Northern Ireland.
As I said, the discussions are ongoing. I hope that the right hon. Gentleman will continue to understand that I am limited in what I can say as I do not want to pre-empt the outcome of those discussions, but we continue to work closely with the Northern Ireland Executive around the practical implications and operational delivery. The Department for Environment, Food and Rural Affairs has been working with the Department of Agriculture, Environment and Rural Affairs in Northern Ireland, and with industry, traders, representative bodies and local authorities to ensure that they are engaged, supported and ready for trading from January 2021. I encourage any business that has not already done so to sign up free with the Trader Support Service.
The Secretary of State will know of the anger among Northern Irish businesspeople over the accusation by the ironically titled Minister for Efficiency and Transformation that they have their
“head stuck in the sand”
on Brexit. Only 30 days from the hard Brexit cliff edge, does the Secretary of State appreciate that most people will have far more sympathy with the Northern Irish businessman Stephen Kelly, who suggests that it is the Government who have their “head stuck somewhere else”? Is it not the case that Northern Ireland businesses have simply been an afterthought in his Government’s chaotic hard Brexit?
If only the hon. Lady was talking to Northern Ireland businesses directly, as my team and I do regularly, most weeks. The Minister of State, Northern Ireland Office, my hon. Friend the Member for Worcester (Mr Walker), also engages with businesses in Northern Ireland, as we have been doing consistently throughout this process—including Stephen Kelly, whom I do know. It is the information from businesses that fed into the Command Paper that we issued earlier in the year, as well as the guidance that we issued and the work that we are doing to ensure not just that we have unfettered access for Northern Ireland businesses to mainland Great Britain—I hope that she and other colleagues will support us in ensuring that measures are in the United Kingdom Internal Market Bill to deliver unfettered access, which she claims in her question to support—but also that we get a good free flow of access to ensure that the whole UK internal market can work together, including Great Britain to Northern Ireland.
Given the fact that the Secretary of State has already admitted that the clauses removed by the Lords from the UK Internal Market Bill will break international law, and that the Irish Government, the new US President-elect and the people of Northern Ireland believe that those clauses breach the Northern Ireland protocol, will he commit today to not reinstating them in the Bill next week?