I thank the noble Baroness for her intervention; I accept that point. There is a significant argument by an esteemed economist about how serious and significant that really is, because we have no figures for the impact of the Windsor Framework. What figures we have go back over several years, and we cannot work out the impact of the Windsor Framework on this problem, which is important.
The government White Paper notes that the Windsor agreement
“marks a decisive break from … the political concept of an ‘all island economy’”—
something that was prioritised in the 2017 document, with the UK Government’s agreement, over Northern Ireland’s place in the UK economy. We have moved on. The island economy is one area where the British Government have been carrying out a major work of rectification to get away from the humiliation of 2017 and that agreement.
I turn briefly to EU law. Again, it is not mentioned in the seven tests. I have heard regularly over the last few days that EU law is dominant in Northern Ireland. Well, okay. Continued alignment with EU law applies to only about 20% of Northern Ireland’s economy. When I heard about the dominance, I thought: is this the Northern Ireland I live in, with its large state sector—larger than in any other devolved region—funded by the UK taxpayer? Is this the Northern Ireland economy I live in, in which the service sector, totally outside the framework of the EU, is the growing sector? There is a question mark about the price to be paid for access to the EU market, which many of our businesses want, but it is not dominant: we are talking about around 20%.
There is an argument here, I accept, and there are people in this House who will never accept that EU law is worth accepting, no matter the value for individual
businesses and so on. But it is important to say that what we have in Northern Ireland—well, let me put it this way: changes since the transition period have been remarkably small. There has been nothing of impact in three years since the transition period ended. There is a well-developed marketplace in Northern Ireland, completed over 20 years ago. It is not a building site full of rubble waiting for some spectacularly ambitious, slightly crazed architect to come along and construct something new and wild—it is set in a particular mould; that is how it is. It is rather humdrum to say it, and in any case most manufacturers in Great Britain follow EU regulations because they export to the EU or provide goods to other companies that export to the EU.
The issues of EU law and the island economy are two areas that are very important to talk about; they dominate the current debate in Northern Ireland. It is important to say that, as far as EU law is concerned, there is, and always will be, a division of opinion on that point. However, it is also the case that this is not the first time in our history in Northern Ireland that we have been dealt with in an unequal way in a trade agreement between the British Government and the Irish Republic. In 1938, exactly this happened. If we look at the debate in this House on 10 May 1938 on what was a very bad deal, a humiliation for the British Government in the end, there is no question but that Northern Ireland businesses are treated unfairly and without equality. There is no doubt about that at all, and the point is made very eloquently by the unionist MPs.
However, a broader political decision was made within unionism: you can get hung up on things that offend you, that are bad news and that stick in your craw, or you can look at it in terms of the wider interests of Northern Ireland as part of the United Kingdom. On that occasion, they made a deal that involved unemployment insurance payments for thousands of shipyard workers on the dole in Belfast that could not be met out of Northern Ireland resources. They made a deal for those shipyard workers—an economic deal in the interests of Northern Ireland which, when the Attlee Government came in with the welfare state, turned out to be an absolutely wonderful deal. In other words, they looked at the problem in the round, did not obsess about the one area in which nobody will agree or be happy, and acted in terms of what was the lesser of two evils.