Product Regulation and Metrology Bill [HL]

Report (1st Day)

Amendment 1

1: Before Clause 1, insert the following new Clause— “Purpose(1) The purpose of this Act is to improve the regulation of products and metrology.(2) The Secretary of State must, in taking any actions under this Act, advance that purpose while prioritising the maintenance of the United Kingdom’s regulatory autonomy.(3) Accordingly, and so far as it is possible to do so, provision made by virtue of this Act must be read and given effect so as to achieve the purpose mentioned in subsection (1) to the extent that it is consistent with the maintenance of the United Kingdom’s regulatory autonomy.(4) When taking action to improve regulation under this Act, the Secretary of State must have regard to maintaining the highest quality regulatory framework.”

My Lords, this Bill has a troubled history. It should not have been introduced to either House in its current form. It has now fallen foul of the Delegated Powers and Regulatory Reform Committee on three occasions and of the Constitution Committee on two occasions. We acknowledge the Government’s efforts to assuage the DPRRC’s concerns, and we thank the Minister for engaging so fulsomely and openly and driving through a number of government concessions. Those concessions are welcome, and we will support them, but, regrettably, they do not go far enough, in our view.

I speak today about the critical importance of having a purpose clause in the Bill, and its implications for the United Kingdom’s regulatory autonomy. In its current form, the Bill contains no explicit mention of respecting the UK’s regulatory autonomy, which is the foundation of a prosperous, independent economy. This absence is exactly why we need this purpose clause: to fill that gap and provide clear direction for the actions of the Secretary of State under the provisions of the Bill. After all, the reason we left the European Union was to regain the ability to make our own decisions, free from external control. Yet without this purpose clause, the Bill does not sufficiently safeguard the autonomy we have worked so hard to reclaim. This is precisely why we need this purpose clause. It explicitly addresses the need to protect and prioritise the UK’s regulatory autonomy in any actions taken under the Bill. It would establish a guiding principle that the Government must always act in a way that protects the UK’s sovereignty in regulating products and metrology, free from undue influence by foreign laws or regulations.

By explicitly requiring the Secretary of State to ensure that regulations are of the highest quality, this proposed new clause would push the Government to focus on creating a regulatory environment that stimulates rather than stifles business, and extend a clear message that the UK’s regulatory framework should encourage technological development, support start-ups, protect consumers and ultimately contribute to economic growth. We live in a highly competitive global market, where businesses need certainty and the freedom to operate according to clear and fair rules. A regulatory framework that ties the UK’s hands by aligning with foreign laws could create significant barriers to growth and innovation.

I apologise to the House for not being able to be present at many of the earlier debates, but I have come specifically to hear the explanation of this amendment, and I have to say that I am not convinced. The purpose of regulation is, of its nature, to do the best for growth and for business, and if it is best for growth and business to have a regulation that aligns us with somebody else then that must be sensible. There is no reason to say that the priority is not to be aligned. Indeed, I rather think the opposite: the priority is probably, in most cases, to be aligned.

To tie the arms of a future Government on the basis that somehow or other we are living not in the world that we now live in but in some mysterious world that people would like to live in seems wholly unacceptable, and I must say that I am sad that the Government have been opposed on this basis. It runs through all these out-of-date amendments, all of which seek to reassess and restate the disastrous policy of leaving the European Union, which we all know to be a huge success—everyone, throughout the country, knows how very good it has been, so let us make it even better by making it even more difficult to try to come to terms with the world in which we now live. I very much hope that the House will not agree to this amendment.

My Lords, I did not intend to support my noble friend on the Front Bench, but I am moved to do so by the speech from my other noble friend. I say to my noble friend Lord Deben that there is a later amendment, which we may or may not pursue, the purpose of which is to make it clear that, when making regulations, Ministers should have regard to the likelihood of the United Kingdom being an attractive place in which to manufacture or supply products. I am sure he agrees that is right.

My noble friend Lord Sharpe’s amendment serves two important purposes. First, it illustrates that the Government have not, even in this framework Bill, taken the trouble of telling Parliament the purpose of this legislation, other than that it is to make regulations at Ministers’ discretion. It does not really do much more than that, and that discretion is extremely wide.

The second benefit of the amendment is that it says—and I rather like this idea—that we should have a high-quality regulatory framework and a priority to maintain our regulatory autonomy. That does not mean we do not align with other jurisdictions; it means that we retain control of the extent to which we are aligned with other jurisdictions. In so far as that is encapsulated in a purpose clause at the outset, it would illustrate what use this legislation should be put to. We will come on to discuss the deficiencies of the Bill and whether the framework is sufficiently clear, but the more one is clear in statute what the purpose of a framework Bill is, the easier it is subsequently to scrutinise the many statutory instruments that will come forward in reference to it.

My Lords, I support the amendment from my noble friend Lord Sharpe. We discussed what the point of the Bill is on many occasions in Committee, but I am afraid we are none the wiser and certainly no better informed on that subject as a result. That is why it is necessary to have a clearer purpose clause written into the Bill. The nearest we have is in the Explanatory Notes from a few months back; I will not read the full text, but they say:

“The Bill intends to ensure the UK is better placed to address modern day safety issues”

and high modern standards

“by allowing the UK Parliament the power to update relevant laws”.

Correct me if I am wrong, but the UK Parliament already has the power to update any law that it wishes, so I do not see how that can be the purpose of this Bill; there must be something else to it. Of course, one could speculate about it. Perhaps it is just to relieve the Government of the burden of having to go through the effort of legislating for the full range of manufactured goods that we still produce in this country, to delegate that power to the European Union and to recreate the situation that existed before we left that organisation. Perhaps it is to help with the woeful arrangements of the Windsor Framework and to make it a little easier to move goods across the internal border from Great Britain to Northern Ireland—I do not know.

What the purpose of the Bill cannot be is to reduce trade barriers—or it can be so only on one condition—because aligning with EU law does not reduce trade barriers. The EU itself is very clear about that; the process remains because it is a different legal system. The one condition on which that could be true would be if the UK and the EU reached an agreement that the aligned legislation under this Bill was to be considered as EU law and would be enforced by the Commission and the court—in other words, a Swiss-style arrangement. We have heard chat that that might be what the Government are aiming for in their reset.

My Lords, I support the amendment in the name of my noble friend Lord Sharpe of Epsom. I hope that over the course of my remarks I can illuminate the rationale for the amendment, for the benefit of my noble friend Lord Deben. This amendment is not about relitigating the Brexit battles. It is about holding the Government’s feet to the fire in a Bill that is deeply flawed. It is found to be deeply flawed by your Lordships’ Constitution Committee and delegated legislation committee—more of that later.

The two reasons that Ministers should look benignly on this amendment are that it is not substantially at odds with the Bill’s raison d’être and it is not only a noble aspiration of the Government. The Government were concerned—indeed, the previous Government were also concerned—that they did not have sufficient powers to respond to the EU’s regulatory initiatives efficaciously and that this would have negative trade consequences. It is perfectly proper that the Government seek to address that issue.

The fundamental problem of the Bill is that it does not articulate how far the Government intend to exercise the wide-scale, sweeping enabling powers in favour of alignment with the European Union only, and not other jurisdictions. For that reason this amendment should receive the support of your Lordships’ House. It is a purpose clause and a fundamental issue. I hope your Lordships will forgive me if I stray into the remit of Amendment 2. They are very similar and both look at Clause 1.

Before I go any further, I thank the Minister for how congenial and open he has been in engaging with all sides of the House—including our friends on the Liberal Democrat Benches—in seeking to improve the Bill and have a proper debate. Although there is no specific mention of dynamic alignment in the Bill, my noble friend Lord Frost makes a very astute point on whether the Government are moving towards a Swiss-style agreement—multiple bilateral agreements—which would potentially not be in the best interests of the UK as a much larger and more substantial economy than Switzerland.

I said that what we do is totally in our own hands. The Bill gives us the right to adopt if we want to—to change, if we want to. This is about the UK having control. I thought that is what the party opposite wanted.

That would be the case if the Bill was not an egregious offence in respect of huge Henry VIII powers and enabling powers.

I am sorry to intervene on the noble Lord again but I cannot resist it. Surely the whole point about the Bill is to give us flexibility to do what the noble Lord is asking us to do.

Then the noble Lord would support a purpose clause, which—one might make the case—is much clearer and more explicit. Incidentally, I agree with every word said by my noble friend Lord Lansley and will be supporting his amendment later.

But, as the noble Lord, Lord Hunt of Kings Heath, rises to the Dispatch Box, I would just like to conclude my remarks with the words of his noble friend the Attorney-General. This has been mentioned before, because it is very important within the context of the Bill. It is not just that this is primary legislation; it is unclear. It gives ministerial fiat—wide-ranging ministerial powers—and there are not explicit protections. Indeed, the Delegated Legislation Committee specifically says there are not proper procedures for even consultation with key stakeholders. But the noble Lord will know that on 14 October, the Attorney-General—who is not as high-profile in this House as he used to be—said in his Bingham lecture on 14 October that

“excessive reliance on delegated powers, Henry VIII clauses, or skeleton legislation, upsets the proper balance between Parliament and the executive. This not only strikes at the rule of law values … but also at the cardinal principles of accessibility and legal certainty. In my view, the new Government offers an opportunity for a reset in the way that Government thinks about these issues. This means, in particular, a much sharper focus on whether taking delegated powers is justified in a given case, and more careful consideration of appropriate safeguards”.

I could not have put it better myself. On that basis, I hope that Ministers may be minded to support my noble friend Lord Sharpe’s amendment.

My Lords, it is a pleasure to take part in this Report debate and to speak to this amendment.

I am grateful to the noble Lord, Lord Jackson, for reminding us that we are not relitigating the Brexit debate, because sometimes in Committee it was very hard to understand that point, given the speeches that came from his Benches. We are not relitigating the Brexit debate; we are trying to put in place a regulatory regime and the ability to deliver regulation that benefits the people of this country.

I was minded to consider that if I was using an electric lawn-mower and I started either to be electrocuted by it or have my toes removed by it, the last thing I would worry about was whether the regulation for that was autonomous. I would be worrying: why was it not safe? Why was the product not preserving my rights as a consumer not to be electrocuted or amputated? There is a serious point to this. If the noble Lord wanted to put a purpose to the Bill, its purpose is not to deliver some mystical autonomy—if we look at Amendment 8, we see that the Minister, far from delivering autonomy, is going to tie us to a whole bunch of other regulatory regimes. It is about delivering a regime that protects people and the environment, and gives consumers right of recompense if they are sold faulty products—all those sorts of things that we see before us. If we look in the draft code of conduct, that is what is set out in the introduction to it.

Sometimes we use before Clause 1 purpose amendments to make sure that we are the first speaker up. I do not think in this case that was in the mind of the noble Lord, Lord Sharpe. His amendment is designed—