My Lords, over the Recess, the Minister and I both travelled to regions of the world where peace building continues to need to be nurtured and where trust is a vital commodity. The offensive nature of this Bill is that in just one measure it breaches international law, undermines our reliability for other international trade agreements, divides communities rather than brings them together and abuses proper parliamentary legislative processes to an egregious degree. The fact that it is a Foreign Office Bill—a department which is meant to promote the currency of the British word in an unreliable world—is doing immeasurable damage. I believe that the House knows it and that the Minister, who is very highly respected here, must know it too. My colleagues will expand on these areas in their contributions.
When the Government presented their protocol, they did so with somewhat of a Janus face. “Best of both worlds” and “oven-ready deal” was how it was how it was spun, but the unspun accompanying impact assessment was clear that it was neither, and far more complex.
Chapter 6 of the impact assessment at the time, on risks, states in paragraph 295:
“An increase in uncertainty associated with the UK’s regulatory or customs position with the EU could affect the business environment and consumer confidence. The costs of new checks and administration associated with the Ireland/Northern Ireland Protocol may affect the profitability of businesses trading to and from NI … given uncertainty around price changes, or the UK’s and NI’s relationship with the EU, consumers may decide to delay spending, reducing consumer demand for goods and services”.
Paragraph 302 states:
“The proposals will have an effect on all UK businesses that move goods between Great Britain and Northern Ireland, irrespective of the business’s size … a ‘one size fits all’ approach for business trade requirements is likely to have a disproportionate effect on SMBs in particular”.
Paragraph 319 states:
“This could result in higher prices for Northern Ireland consumers purchasing goods which reached Northern Ireland from both Great Britain and Ireland.”
Remember, this is what the Government said would happen if it was working—not if it was not working, which is what the Minister seems to be suggesting today. Perhaps the Government thought that we would not read the impact assessment at the time, let alone remember it. Boris Johnson said that there would be no problems. Liz Truss said that the problems were “unintended”. The noble Lord, Lord Frost, said that they were someone else’s fault. Speak no evil, hear no evil, but see evil.
When Liz Truss said in the spring that there were “unintended consequences”, the poor officials who outlined the intended consequences must have rolled their eyes. However, with the joint monitoring and systems that the Minister has outlined today, they were the very ones that were rejected by the Government at the time of the protocol. I am therefore not surprised that some want the protocol ended.
Instead, the Government say that they want to mend it, not end it. So if they mend, not end, what will be left of it? Northern Ireland will still have to operate under a foreign power’s laws and have no say over them. It will still collect its taxes, still operate under its state aid rules and still have to comply with the hundreds of regulations listed in the annexe to the Brexit agreement that I spoke of in 2019.
On countless occasions, the Liberal Democrats, along with our Alliance partners in Northern Ireland, warned constructively but repeatedly that the Government knew they were in breach of the previous commitment that the Minister, the noble Lord, Lord Callanan, gave to this House in January 2019 when he said:
“We will give an unequivocal commitment that that there will be no divergence in rules between … Great Britain and Northern Ireland”.—[Official Report, 9/1/19; col. 2222.]
We were ridiculed and condemned, especially in the House of Commons by people such as Steve Baker MP. However, today, on behalf of my colleagues, I accept Steve Baker’s apology. By the way, some might be tempted to suggest that it is the fact that we have this Bill that forced Brussels’ hand to return to talks; it is perhaps the welcome hand of apology from a Northern Ireland Minister.
The Minister’s justification for the Bill today seems to be based on the coming to pass of the very impacts that the Government themselves said were going to happen, but that case for the Government is disingenuous as the Bill does not even address all the areas in the Government’s previous Command Paper. There, they listed what they said were the problems with the protocol —not least that it would be an ongoing “democratic deficit”, which, I remind the House, was a fully intended consequence. So the Government cannot say that this is the solution when it omits whole swathes of areas that they previously said were the problem.
At this point, it is worth saying that the impact of the protocol has been mixed, with some benefits for people in Northern Ireland, which has benefited from the single market. Those are not my words; they are the words of the Northern Ireland Economy Ministry under a DUP Minister. I will quote from Invest NI:
“This dual market access position means that Northern Ireland can become a gateway for the sale of goods to two of the world’s largest markets … This is a unique proposition for manufacturers based in Northern Ireland as well as those seeking a pivotal location from which to service GB and EU markets … These additional benefits further enhance Northern Ireland’s already strong proposition as a prime location to establish, or grow, a business”.
I think the whole House wishes the Northern Ireland economy well and wishes growth for it, but the Government’s legal position is that all of what the DUP Minister’s department is saying is a grave and imminent peril to this country. Both cannot be right.
Describing “grave and imminent peril” is in the Government’s legal position: it seems to be their case. They cite the UN International Law Commission’s Responsibility of States for Internationally Wrongful Acts from 2001. However, Article 25 of that states:
“Necessity may not be invoked by a State … unless the act … is the only way for the State to safeguard an essential interest against a grave and imminent peril”.
It goes on to say that
“necessity may not be invoked by a State as a ground for precluding wrongfulness if … the State has contributed to the situation of necessity.”
The Government state that the UK has not contributed to this situation of necessity relied upon. But, of course, that is almost a risible explanation, given that the Minister at the time, in 2019, signed an impact assessment saying that they were party to it. Given that the UK has made policy decisions separate from the agreement that would have had a material impact on UK trade with Northern Ireland, such as on labelling requirements, the Government cannot credibly argue the UK has been a wholly unwitting and absent bystander to this process.
I agree with the Law Society of Scotland, which said that the Bill goes beyond what is necessary to resolve any trade problems and instead seeks to rewrite provisions in the withdrawal agreement and the NI protocol, such as those in Clauses 13, 14 and 20. When the Advocate-General winds up this debate, I would be grateful if he could clarify the Minister’s assertion, in response to the intervention, that Article 16 would bring about the cessation of the whole of the protocol, rather than be a mechanism that could resolve certain elements of it. I have to say that the contradiction in the noble and learned Lord, Lord Stewart, over these two days arguing in the Supreme Court that the Scottish Government are seeking to act unlawfully but this evening defending the Government for breaking international law is jarring.
Why should this deplorable misuse of “necessity” and redefining “grave and imminent peril” worry us so much? Since I have been speaking on trade from these Benches, I am now on my seventh Trade Minister in the Lords. Every one has said “Our word is our bond” in implementing agreements. For all the trade agreements we have signed, the other side will know that they can be changed unilaterally. How can we be trusted if we choose not to use the dispute mechanisms written into
trade agreements but just bring forward domestic legislation to disapply treaty obligations? Pacta sunt servanda.
The Bill presents no baseline information on disruption, subsequent to the original impact assessment. It presents no objective assessment of overall net impact on the economy of Northern Ireland and no regulatory impact assessment contrary. This is all contrary to clear Cabinet Office guidance on legislation.
Finally, of course, the Bill reflects the Government’s view of Parliament. The Law Society of Scotland has said that
“it is inappropriate to implement international agreements by regulation. That approach departs from the precedents set by the EU (Withdrawal Agreement) Act 2020 and the EU (Future Relationship) Act 2020.”
I would add that it is contrary to every commitment for every trade agreement since Brexit.
I conclude by quoting these remarks:
“The Bill represents as stark a transfer of power from Parliament to the Executive as we have seen throughout the Brexit process. The Bill is unprecedented in its cavalier treatment of Parliament, the EU and the Government’s international obligations … the legislative mechanism by which the Government propose to give to effect to the Bill’s purpose is wholly contrary to the principles of parliamentary democracy (namely, parliamentary sovereignty, the rule of law and the accountability of the Executive to Parliament)”.
That was all from the Delegated Powers and Regulatory Reform Committee of this House.
On the basis of the breach of international law, the damage to our standing and word around the world, the adding to divisions—rather than healing them—and the abuse of Parliament, the Government should think again. At the very least, we should reflect very carefully on the necessity of proceeding, given ongoing talks that we on these Benches wish well and which need to continue and conclude.
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