[Relevant Documents: First Report of the Northern Ireland Affairs Committee, Unfettered Access: Customs Arrangements in Northern Ireland after Brexit, HC 161, and the Government response, HC 783; oral evidence taken before the Northern Ireland Affairs Committee on 16 September 2020, on Brexit and the Northern Ireland Protocol, HC 767.]
I should explain that, in these exceptional circumstances, although the Chair of the Committee would normally sit in the Clerk’s chair during a Committee stage, in order to comply with social distancing requirements I will remain in the Speaker’s Chair, although I will be carrying out the role not of Deputy Speaker but of Chairman of the Committee. We should be addressed as Chairs of the Committee, rather than as Deputy Speakers.
Clause 1
Purpose of Part 1
2:27 pm
Question proposed, That the clause stand part of the Bill.
With this it will be convenient to discuss the following:
Government amendment 90.
Amendment 89, in clause 2, page 2, line 8, leave out from “requirements)” to end of line 10 and insert
“must meet the relevant requirements of the part of the United Kingdom with the highest level of standards for that sale of that good.”
This amendment would ensure that any good produced, or imported, into the United Kingdom would have to meet the level of standards for sale of that good in the part of the UK with the highest level standards.
Government amendment 91.
Clause 2 stand part.
Amendment 34, in clause 3, page 3, line 24, leave out “consult” and insert “gain the agreement of”.
Clause 3 stand part.
Amendment 73, in clause 4, page 3, line 35, leave out “not”.
The intention of this amendment, linked to Amendment 74, is to ensure that mutual recognition applies to existing legislation as well as future legislation.
Amendment 74, page 3, line 36, leave out from “principle” to end of line 10 on page 4.
The intention of this amendment, linked to Amendment 73, is to ensure that mutual recognition applies to existing legislation as well as future legislation.
Clauses 4 and 5 stand part.
Amendment 35, in clause 6, page 5, line 22, leave out “consult” and insert “gain the agreement of”.
Clauses 6 and 7 stand part.
Amendment 86, in clause 8, page 6, line 40, at end insert—
As ever, it is a pleasure to serve under your chairmanship, Dame Rosie.
This Cummings-directed Tory UK Government are breaking international law, and they are breaking devolution. Behind the innocent-sounding mutual recognition mechanism, the Bill simply starts a race to the bottom on standards with the UK Government imposing it against our will in Scotland.
The Bill will see the Tories mount an assault on devolution with the biggest power grab since the Scottish Parliament was re-established. People in Scotland are seeing through the contempt that the Tory Government and Westminster have for their democratic choices. They are not daft. They know that this shabby, illegal, dogmatic Bill is not designed to fix anything, but it is designed to game the system for vested interests. It is a fact that existing mechanisms and simple changes to Standing Orders could have worked with consensus instead, but this Government do not believe in consensus, just in getting their own narrow ideological way.
The UK Government’s approach—the diktat—is the opposite of the democratic European single market approach. The development of the EU single market has been based on the principles of equality, co-operation, co-decision, subsidiarity and, of course, consent. Crucially, it sets a baseline of minimum agreed standards with which all member states’ own rules must be compatible. What a contrast with this hasty, badly written, contemptuous Bill. The Government are even having to amend their own Bill as they go along, so shabby is it. Government amendment 109 is necessary to remove clause 20—how slapdash is that? On the mutual recognition mechanism, clauses 2 to 9 contain sweeping powers to compel Scotland to accept lower standards, set elsewhere in the UK, on animal welfare, food safety and environmental protections, among a host of other areas.
My hon. Friend is making a very important point. One issue raised by the General Teaching Council for Scotland is that teachers in Scotland must adhere to certain professional standards. That is not the case in England. If professional qualifications were accepted across the United Kingdom, Scotland would potentially have to accept teachers with lower professional standards. That is a real concern for the SGTCS. Does my hon. Friend share that concern?
I do indeed. I thank my hon. Friend for her intervention. As I mentioned in my speech last week, the Bill affects every aspect of Scottish public life. These powers radically undermine the ability of the Scottish Parliament to serve the people who elected it.
The UK Government want to ditch high regulatory standards. They continually refuse to confirm whether the UK will keep pace with EU standards after 31 December. They will not even rule out chlorinated chicken being forced into our marketplaces. The question has to be asked: why keep that prospect on our tables? It is because they are betting all our farms on a US trade deal. They have put everything on black, hoping for a Trump victory. The irony is that if it comes up red, with a Biden win, the Bill puts any trade deal in trouble, because the presidential candidate has said that he will not put up with anything that undermines the Northern Ireland-Ireland peace process.
The hon. Member is absolutely right that there will be no trade deal if any damage is done to the Good Friday agreement or the protocol. It is also the case that the Houses of Congress have to ratify any trade deal, so no matter who wins the White House, it is clear that Congress will not support a US-UK trade deal after any damage is done to the Good Friday agreement.
I completely agree with my hon. Friend. His point that the Good Friday agreement is being put in jeopardy is absolutely spot on. That is why the Government are betting on a Trump victory. President Trump has declared that when it comes to doing business with the UK, as far as he is concerned
“everything is on the table.”
The US Secretary of State, Mike Pompeo, has said of the trade talks:
“We need to make sure that we don’t use food safety as a ruse to try and protect a particular industry.”
The Government have even voted against their own Back Benchers’ amendments intended to protect high standards. They voted five times against amendments to the Agriculture Bill, and five times against food standards amendments to the Trade Bill.
The effect of clauses 2 to 9 would be to prevent the Scottish Parliament from requiring goods or services to meet the standards that it decides. The UK Government’s White Paper outlined examples of this. Page 77 has a case study on deposit return schemes, page 78 has one on food labelling and pages 79 to 82 cover food manufacturing, including hygiene, recycling and animal welfare. Page 82 specifically mentions minimum pricing as a regulatory restriction. Page 85 talks about building regulations and construction permits. As Professor Michael Dougan of Liverpool University observes, Scotland’s minimum price controls could be
“characterised as a form of product requirement”,
making them
“fully subject to the principle of mutual recognition.”
This would mean that
“imported English alcohol would not have to comply with any new Scottish requirements. Once the mutual recognition obligation applies, there is virtually no scope for Scotland…to justify applying its new rules to English imports: mutual recognition can only be set aside on the basis of serious health threats arising from the internal movement of pests/diseases/unsafe foodstuffs.”
I am sure that the hon. Gentleman shares my concern that Professor Dougan also draws attention to the fact that policies that already exist under the auspices of the Scottish Government and the Welsh Government, if they were to be adapted, might then fall within the scope of this Bill. These are popular policies that we have made to cut our own path in the past, and yet this now threatens their future.
Indeed—I agree. In fact, Professor Dougan has said:
“I do not share UKGov’s apparent assumption that regulatory divergence is inherently problematic and must be strictly controlled, by imposing extensive limits (in effect) on the ability of devolved institutions to make different choices from Westminster”.
I congratulate the hon. Gentleman on his very carefully crafted amendment 89, which would mean a race to the top as opposed to the race to the bottom that he has alluded to.
I thank the hon. Gentleman for that. Of course, that is where we all should be aiming—a race to the top. That should be the principle that is being set by elected Members in the Parliaments that they are elected to represent, yet we find here a complete travesty of that.
Devolution has proved that the market can successfully operate across the UK with variations in standards. This Bill’s proposals work against the interests of our high-quality producers and our consumers. As the National Farmers Union of Scotland explained in its submission to the UK Government’s White Paper consultation, the proposals for the UK internal market, in the absence of effective common frameworks, could trigger a race to the bottom. In a Scottish context at the very least, they could force a choice between upholding high standards of production and maintaining the competitiveness of agricultural businesses.
The existing common frameworks were designed to manage cross-UK divergence where EU law and competences intersect. They do not need to be supplemented or undermined. Scottish Environment Link is clear that the UK Government’s plans could
“force Scotland to follow the lowest common denominator, especially where countries negotiating bilateral trade deals with the UK demand lower standards seriously undermining efforts to combat climate change and biodiversity decline.”
I am interested in why the hon. Gentleman seems to assume that any standards legislated for in this Parliament would inherently always be lower, as he puts it. Why would that necessarily be the case?
Perhaps you should ask your hon. and right hon. Friends on your Back Benches who voted against your own Back Benchers’ amendments to protect—
20 of 330 shown
“(c) the promotion of environmental, social and labour standards.”
This amendment would expand the definition of “legitimate aim” that could permit discrimination against incoming goods to include the promotion of environmental, social and labour standards.
Amendment 36, page 6, line 41, after “State” insert
“, after obtaining the agreement of the devolved administrations,”.
Clause 8 stand part.
Amendment 76, in clause 9, page 7, line 4, leave out “not”.
The intention of this amendment, linked to Amendment 77, is to ensure that the non-discrimination principle applies to existing legislation as well as future legislation.
Amendment 77, page 7, line 8, leave out subsections (2) and (3).
The intention of this amendment, linked to Amendment 76, is to ensure that the non-discrimination principle applies to existing legislation as well as future legislation.
Clause 9 stand part.
Amendment 78, in clause 10, page 7, line 17, at end, insert—
“(2A) In making these regulations, the Secretary of State must have special regard to the need to maintain the integral place of Northern Ireland in the United Kingdom internal market.”
The intention of this amendment is to ensure that further exclusions from the application of the access principles have regard to safeguarding unfettered access of NI businesses to the UK Internal Market.
Clause 10 stand part.
Government amendments 5 and 6.
Amendment 79, in schedule 1, page 44, line 40, at end, insert—
“(6A) In the case that there is one REACH authorisation process for Great Britain, an authorisation that is lawful for the Northern Ireland market will be valid for the Great Britain market.”
The intention of this amendment is to apply the non-discrimination principle to the REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) regime.
Government amendment 7.
Amendment 80, page 45, line 2, at end insert—
“(8A) The United Kingdom market access principles do not apply to fisheries within the jurisdiction of Scottish Government Ministers.”
This amendment would exempt fisheries in Scotland from market access principles.
Amendment 87, page 45, line 23, at end insert—
“11 The United Kingdom market access principles do not apply to (and sections 2(3) and 5(3) do not affect the operation of) any legislation so far as it relates to public procurement.”
This amendment would include specific reference to public procurement within those areas of regulation that are exempt from market access principles under Schedule 1.
Schedule 1 stand part.
Clauses 12 and 13 stand part.
Government amendments 93 to 95.
Amendment 40, in clause 14, page 9, line 26, at end insert—
“(8A) A reference in this Part to “regulations” must take into account the requirements of section (Maintenance of minimum standards).”
Government amendment 92.
Clause 14 stand part.
Government amendments 97 to 107.
Clause 15 stand part.
Government amendment 108.
Clause 16 stand part.
Government amendments 112 and 111.
Schedule 2 stand part.
Clauses 17 to 20 stand part.
Government amendments 109 and 110.
Clause 21 stand part.
Amendment 81, in clause 22, page 13, line 33, after “23)” insert “or frontier worker”.
This amendment would accord to frontier workers the rights accorded to qualifying UK residents under this clause, to have experience or qualifications awarded in one part of the UK to be recognised in another part.
Amendment 82, page 13, line 34, after “resident” insert “or frontier worker”.
This amendment is linked to Amendment 81.
Amendment 83, page 13, line 39, at end insert—
“(3A) For the purposes of this Part, “Frontier worker” shall have the meaning given in Article 9(b) of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community.”
This amendment is linked to Amendment 81.
Clauses 22 and 23 stand part.
Amendment 84, in clause 24, page 15, line 2, after “resident” insert “or frontier worker”.
This amendment would accord the same rights to frontier workers as to qualifying UK residents under this clause.
Amendment 85, page 15, line 9, leave out “, the resident” and insert
“or frontier worker, the resident or frontier worker”.
This amendment is linked to Amendment 84.
Clauses 24 to 26 stand part.
Government amendment 96.
Amendment 27, in clause 27, page 19, line 42, after “training” insert
“that has been agreed and approved by the devolved ministers”.
Clause 27 stand part.
Government new clause 12—Guidance relating to Part 1.
New clause 5—Maintenance of minimum standards—
“Regulations under this Part must not result in lower food or environmental standards applying in any part of the United Kingdom than apply in the European Union.”
New clause 10—Environmental derogation for market access principles—
“The United Kingdom market access principles do not apply to (and sections 2(3) and 5(3) do not affect the operation of) any legislation or other requirement so far as—
(a) its purpose is to protect the environment, and
(b) it is a proportionate means of achieving a legitimate aim.”
The purpose of this new clause is to provide for exceptions and derogations that allow all four UK nations to put in place proportionate measures to protect the environment and improve environmental standards.
Amendment 72, in clause 48, page 38, line 49, at end insert
“or
(b) has the effect of making Northern Ireland businesses less competitive in the Great Britain market.”
The intention of this amendment is to include within the definition of distortive or harmful subsidies a subsidy which has the effect of making NI businesses less competitive in the GB market.
Clause 48 stand part.
Amendment 88, in clause 49, page 39, line 2, leave out subsection (1).
This amendment would prevent the United Kingdom Internal Market Act 2020 from being inserted into Schedule 4 of the Scotland Act 1998, meaning that this Bill would not become a “protected enactment” under that legislation.
Clauses 49 and 51 to 53 stand part.
Amendment 4, in clause 54, page 41, line 24, at end insert—
“(2A) The relevant sections of this Act come into force in accordance only if—
(a) a Minister of the Crown has moved a motion in the House of Commons specifying on which date a relevant section comes into force, and
(b) that motion is approved by resolution of the House of Commons.
(2B) The relevant sections for the purposes of subsection (2A) are sections 42, 43 and 45.”
This amendment would prevent any of sections 42 (Power to disapply or modify export declarations and other exit procedures), 43 (Regulations about Article 10 of the Northern Ireland Protocol) and 45 (Further provision related to sections 42 and 43 etc) coming into force before the House of Commons had approved by resolution the date from which they would take effect.
Amendment 9, page 41, line 25, leave out subsections (3) and (4) and insert—
“(2A) The other provisions of this Act may not come into force (and in particular no additions may be made to Part 2 of Schedule 7A to the Government of Wales Act 2006 (specific reservations), Part 2 of Schedule 5 to the Scotland Act 1998 (specific reservations) or Schedule 2 to the Northern Ireland Act 1998 (excepted matters)) until the Prime Minister is satisfied that resolutions have been passed in Senedd Cymru, the Scottish Parliament and the Northern Ireland Assembly in favour of those provisions coming into force.”
This amendment would ensure that no additional powers are reserved to Westminster through this Bill unless the devolved legislatures of Wales, Scotland and Northern Ireland give their consent.
Government amendment 66.
Amendment 39, page 41, line 26, at end insert—
“(3A) Regulations under subsection (3) may not be made before a legislative consent motion relating to this Act has been approved by the each of the devolved legislatures in Scotland, Wales and Northern Ireland.”
This amendment would require the remainder of the Act to have gained consent of the devolved legislatures before coming into effect.
Clause 54 stand part.
New clause 9—UK Council of Ministers—
“(1) The Secretary of State must publish no later than three months from the date on which this Act is passed a framework for a UK Council of Ministers to be agreed by resolution of each House of Parliament.
(2) The responsibilities of the UK Council of Ministers must include—
(a) considering the UK Government’s use of financial assistance for economic development in terms of section 46 of this Act;
(b) considering the terms of any reports prepared by the Competition and Markets Authority in terms of section 29 of this Act;
(c) considering the extent to which its members have acted in a manner consistent with the devolved settlement;
(d) reviewing and considering the impact of any aspect of the internal market of the United Kingdom on any part of the United Kingdom;
(e) requesting that the Secretary of State take specific necessary action to facilitate policy objectives in an area within the competence of the Secretary of State.
(3) The membership of the UK Council of Ministers must include representatives from all parts of the United Kingdom and its devolved administrations.”
This new clause establishes a UK Council of Ministers to ensure the effective functioning of the Internal Market and to examine spending under this Bill.
New clause 11—Review of the Act—
“(1) Within three months of the date on which this Act is passed, the Secretary of State must lay a report before each House of Parliament on the dates on which each section—
(a) was commenced; or
(b) is planned to be commenced.
(2) The Secretary of State must arrange for a review to be carried out within three months of the date on which this Act is passed, and thereafter at least once in each calendar year on the operation of this Act.
(3) The Secretary of State must invite the Scottish Government, the Welsh Government and the Northern Ireland Executive to contribute to the reviews in subsection (2).
(4) The reviews under subsection (2) must make an assessment of—
(a) the functioning of the United Kingdom internal market;
(b) the effectiveness of market access principles;
(c) progress towards agreeing common frameworks with the devolved administrations;
(d) progress towards drawing up a shared prosperity fund framework; and
(e) progress in resolving issues through the Joint Committee machinery in the Withdrawal Agreement.
(5) The Prime Minister must arrange for a report of any review under this section to be laid before each House of Parliament as soon as practicable after its completion.”
The intention of this new clause is to provide Parliament with information on the working of this Act in the context of developing common frameworks.