My Lords, I declare my farming and land management interests as set out in the register.
I thank the noble Baroness, Lady Hoey, for introducing this Motion and for raising the key issues for people living in Northern Ireland. I also thank all noble Lords who have contributed to the debate with such passion and energy and who have candidly shared their deep frustrations.
From the outset, as has been raised several times, I would like to confirm my personal commitment, and that of my noble friends on the Front Bench, that we are all dedicated unionists. Although much of what has been said today goes wider than the scope of the retail movement scheme, I want to draw the attention of noble Lords back to what the Government regard as the positive impact this legislation will have on the union of the United Kingdom and on UK businesses and consumers.
The Windsor Framework, which this instrument implements in part, will have multiple and demonstrable benefits. I would like to list a few of those. First, the significant removal of over 60 pieces of EU legislation for everyday retail goods moving from Great Britain to Northern Ireland under the Northern Ireland retail movement scheme will mean consumers in Northern Ireland will have consistent access to the same everyday goods that are available to consumers across the UK.
Secondly, this instrument ensures that certain retail goods moving from the rest of the world via Great Britain to Northern Ireland are eligible to move under the Northern Ireland retail movement scheme. Again, this means that consumers in Northern Ireland will have access to the same retail goods that are available to consumers in Great Britain.
Thirdly, this instrument enables specific commodities, such as plants for planting, seed potatoes and used farming and forestry machinery, to move from Northern Ireland to Great Britain using a Northern Ireland plant health label. This means Northern Ireland businesses will not need to apply for additional labels when moving these goods back to Great Britain, saving both time and money. It is also clear to see the important contribution this instrument makes to safeguarding Northern Ireland’s place in the union, which is an imperative to which this Government are firmly committed.
I now turn to the concerns behind the Motion tabled by the noble Baroness, Lady Hoey. First, the arrangements agreed under the Windsor Framework significantly reduce the requirements associated with moving goods from Great Britain to Northern Ireland. Retail goods moved via the new Northern Ireland retail movement scheme move on the basis of a single per consignment certificate, rather than requiring the hundreds of vet-signed certificates for individual products needed under the old Northern Ireland protocol. For plants, the Northern Ireland plant health label regime removes the requirement on plants for planting and used farming or forestry machinery to be accompanied by expensive phytosanitary certificates. Rather, operators can register and become authorised to issue and attach a Northern Ireland plant health label for goods moving from Great Britain to Northern Ireland, in the same way that these goods move within the rest of the UK under the existing UK plant passport regime. Instead of paying £150 per movement into Northern Ireland, growers and businesses can now pay approximately £120 annually to be part of this scheme, which is the same as the cost for the UK plant passport scheme.
Secondly, for all these arrangements, the EU’s regulation 2023/1231, which the noble Baroness, Lady Hoey, referred to, puts in place safeguards to deal with any significant issues in their operation. This includes, at Article 14, the potential for suspension of these arrangements should that be required. As would be expected, though, this would be used only where a very high bar of systemic failure is met. Before any potential use of that provision, the regulation sets out requirements for extensive UK-EU engagement. This reflects, in line with the broader Windsor Framework, that any future issues should be resolved through engagement.
Finally, I restate that Northern Ireland is and remains an integral part of the United Kingdom under the Windsor Framework, which safeguards Northern Ireland’s place in the union. The framework secures the application of British standards for goods which move to and stay in Northern Ireland, ensuring the same goods are available for consumers in all parts of the UK. It upholds Northern Ireland’s access to the rest of the UK internal market, and it also safeguards Northern Ireland’s privileged access to the EU single market, which has been a clear demand from businesses to protect livelihoods. Importantly, the framework does so while protecting biosecurity on the island of Ireland, which, as noble Lords know, has been treated as a single epidemiological unit for decades.
I now turn to the points raised in the debate. The noble Baroness, Lady Hoey, asked what financial support is being offered to businesses to help them with labelling requirements. We are providing £50 million in support for businesses which have had to prepare for new labelling rules as part of the Windsor Framework. The transitional labelling finance assistance scheme will offer retrospective grants at a flat rate, adjusted by business size, for businesses which can provide evidence of additional labelling costs related to the new Windsor Framework rules. Redesign, printing and warehouse costs for product, box and shelf labelling will all be in scope.
The noble Baroness also asked about the implications for individual consumers wanting to purchase plants and trees direct from GB and have them delivered. I remember her question from a couple of weeks ago regarding an order she placed from the back of a newspaper. Under the Windsor Framework, professional operators, including growers and garden centres, can move plants, including trees and seeds, between Great Britain and Northern Ireland via the new plant health label scheme. Consumers wishing to source plants and seeds direct from GB will need to meet official controls and regulations requirements. We will continue to work closely with the horticultural industry to ensure that consumers can access plants and trees from a wide variety of sources. Detail on the Northern Ireland plant health label scheme can be found at GOV.UK.
The noble Lord, Lord Morrow, the noble Baronesses, Lady Hoey and Lady Suttie, and other noble Lords, raised the issue of divergence between GB and EU standards and how these will be managed. The Windsor Framework ensures Northern Ireland’s businesses have full, unconditional access to their most important market in Great Britain, while maintaining their privileged access to the whole of the EU market. It also contains important new mechanisms that will ensure we can closely monitor and manage divergence as it emerges. For example, under the Windsor Framework, we have established a number of joint UK-EU fora aimed at managing implementation issues, as well as longer-term issues of regulatory divergence. These include five new joint consultative working group structured sub-groups, as well as a new special goods body. These sub-groups will enable us to engage early where any rule changes could inadvertently lead to a new regulatory barrier to find appropriate solutions through the joint committee.
It will mean that the regulatory environment in Northern Ireland can be better tailored to suit consumer and business needs.
Noble Lords also raised the issue of duty-free movement. It is critical that goods can continue to move freely on the island of Ireland. There are no controls on the movement of goods within the EU single market, so introducing duty-free shopping between Northern Ireland and the EU would allow untaxed goods to circulate among the EU, Northern Ireland and Great Britain. The alternative would be to introduce allowances and controls between Northern Ireland and the Republic. At the current time, neither of these is deemed acceptable.
The noble Lords, Lord Morrow and Lord Weir, and my noble friends Lord Jackson and Lord Moylan, as well as the noble Lord, Lord Bew, coming at it from a different angle and whose comments I am grateful for, asked why the requirements of the Windsor Framework are set out in EU not UK legislation. The disapplication and derogations from EU law agreed under the Windsor Framework mean that the EU must change its law, which of course it must do under EU regulations. This is none the less implementing the bilateral agreement between the United Kingdom and the EU. The Windsor Framework takes effect through a range of mechanisms, including amendments to the text of the framework formerly known as the Northern Ireland protocol, unilateral and joint declarations, and new UK and EU legislation. The EU has made new legislation to implement its obligations under the bilateral agreement between the UK and the EU.
The noble Lords, Lord McCrea and Lord Browne, and other noble Lords, wanted to press further on the issue of biosecurity. I can only restate that the Windsor Framework recognises the need to protect biosecurity on the island of Ireland, which has long been treated as a single epidemiological unit. Some checks, such as those on live animals, were required from Great Britain to Northern Ireland prior to EU exit and before the old Northern Ireland protocol was implemented to protect the integrity of this single epidemiological unit.
The noble Baronesses, Lady Foster and Lady Taylor of Stevenage, asked about the timing of the SI. I have been told by officials that the SI was laid after the Summer Recess, on 5 September.
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This instrument is subject to the negative procedure because of the rules in the enabling Act under which it was made. It does not contain any affirmative triggers.
A de minimis assessment for this instrument has been completed. The annual costs and benefits to businesses from this instrument are below the de minimis threshold. The instrument is part of a wider package of legislation brought forward by Defra to implement the Northern Ireland retail movement scheme and other arrangements under the Windsor Framework. Defra is considering the best means of setting out what the Northern Ireland retail movement scheme and other arrangements mean as a whole for businesses and the public sector.
The noble Baroness, Lady Suttie, raised the restoration of the Northern Ireland Executive. The Government believe that the Windsor Framework represents a turning point for Northern Ireland by restoring the balance of the Belfast/Good Friday agreement and respecting Northern Ireland’s place in the UK. The UK Government want to see the Windsor Framework’s benefits realised for the potential of businesses and people in Northern Ireland and across the UK in a manner that meets our international obligations. We continue to take forward work to implement the Windsor Framework and are engaging the Northern Ireland parties as part of those efforts.
This instrument is essential in implementing the benefits of the Windsor Framework, which is already successfully restoring the smooth flow of trade within the UK internal market by removing the burdens that have disrupted east-west trade and safeguarding Northern Ireland’s crucial place in the union by addressing the practical problems affecting the availability of goods from Great Britain. I urge all noble Lords to support its implementation.