Brexit & Beyond Newsletter

3 October 2022

Welcome to the 3 October 2022 Brexit & Beyond newsletter

The EU and UK have relaunched talks on the Protocol on Ireland/Northern Ireland, following a call between the lead negotiators. The NI Secretary of State met Ireland’s Foreign Minister last week. There are concerns over the continued supply of veterinary medicines to Northern Ireland under the Protocol. The Minister for Finance said the UK Government’s promises to replace EU Funding have not been met.

The latest on the Protocol

Protocol talks relaunch

UK Foreign Secretary James Cleverly and European Commission Vice President Maroš Šefčovič held a phone call on Friday afternoon, the first discussion since Cleverly became Foreign Secretary. Šefčovič and Cleverly tweeted that it was a good conversation. They agreed to look for solutions on the issues around the Protocol. Negotiating teams will meet soon and the pair will stay in touch. At the Conservative Party Conference, Secretary of State for Northern Ireland Chris Heaton-Harris said that he was on the call and that the discussions on the Protocol “reopened with gusto”.  Northern Ireland Office Minister Steve Baker said, “I want to accept and acknowledge that I and others did not always behave in a way which encouraged Ireland and the European Union to trust us to accept that they have legitimate interests, legitimate interests that we’re willing to respect, because they do and we are willing to respect them. And I am sorry about that because relations with Ireland are not where they should be and we will need to work extremely hard to improve them and I know that we are doing so.” He added that no-one should underestimate the resolve of the UK Government to get progress on the Protocol. The Irish Times reports that the reaction from Irish Government figures to this statement was a “cautious welcome”. Taoiseach Micheál Martin said that he did “detect a genuine engagement [from Prime Minister Liz Truss] and a wish to get this issue resolved. I think she would prefer a negotiated solution and the subsequent meeting between Liz Truss and Ursula von der Leyen went well also.”

UK Foreign Secretary James Cleverly | Source: Simon Dawson / No 10 Downing Street

Secretary of State and Ireland’s Foreign Minister meet

Chris Heaton-Harris met Ireland’s Foreign Minister Simon Coveney in Hillsborough last Wednesday. Coveney called the meeting “very constructive.” Heaton-Harris told media following the meeting, “I am really confident that they [these discussions between the EU and UK] will move forward”, even though there is only a short period of time before an election must be called, in line with legislation passed in February 2022. Coveney remarked, "The messages coming out of London are quite different from what we heard a few months ago." The Secretary of State tweeted that he and Minister Coveney are “both committed to finding ways forward and will work together to help find them.”

In an article in the News Letter, Heaton-Harris writes that his priority “is to see the formation of an Executive as soon as possible”. He goes on to say, “I understand that the Northern Ireland Protocol is causing real problems and that we must find a solution. I believe this can be found through a negotiated settlement with the EU but if this is not possible we will continue with our legislation to resolve the very serious issues with the Protocol.”

The Secretary of State has met with a range of NI political parties recently, and on 27 September met with the business community. Manufacturing NI said this meeting was “very useful”. Last week Steve Baker met with independent MLAs Claire Sugden and Alex Easton, TUV leader Jim Allister, and People Before Profit MLA Gerry Carroll.

Views and commentary on the Protocol dispute

In the News Letter Jim Allister, leader of the TUV, writes that EU-UK negotiations on the Protocol “are incapable of producing an outcome acceptable to unionism as they, under these terms, can not recover the EU’s ill-gotten sovereignty over Northern Ireland.” He states that the Retained EU Law Bill does not provide for the removal of EU law in Northern Ireland. He says the ongoing judicial review challenge “illustrates a government complicit in implementing the very protocol they would have us believe they oppose!”.

Stuart Anderson, Head of Public Affairs at the NI Chamber of Commerce, and Chair of the Northern Ireland Business Brexit Working Group, has said “I do think over the course of the summer there has been a change in the mood music. We’ve had continued detailed dialogue with both the UK government and the EU Commission throughout the summer months and early autumn. We’ve had a lot of engagement with officials…There hasn’t been any escalation in all that’s going on around the wider political and economic level. Even the language is more pragmatic.”

Michel Barnier, who negotiated the Withdrawal Agreement, including the Protocol, visited Ireland last week. He said the EU “must not and will not back down” over the Protocol.

Charles Grant, of the Centre for European Reform, writes that it is “unclear” whether PM Truss will take the chance to rebuild relations with the EU. He argues, “what really matters for a potential reset [in EU-UK relations] is the protocol. If Truss pushes ahead with the Northern Ireland Protocol Bill…no reset will be possible and bad relations with the EU would be guaranteed.”

Anton Spisak of the Tony Blair Institute for Global Change writes that for negotiations to be productive, “a high-level agreement must be reached on the principles guiding negotiations on four core issues — how to treat goods moving into Northern Ireland from Great Britain; how to address the implications of future regulatory divergence; what can be done with state aid and value-added-tax (VAT) provisions; and how the Protocol should be governed. “

Veterinary medicines

DUP MP Sammy Wilson has received a response from the UK Government to his concerns that 51% of veterinary medicines supplied to Northern Ireland are at risk of being discontinued at the end of 2022, due to import requirements under the Protocol on Ireland/Northern Ireland. The grace period is set to end on 31 December 2022. The Minister writes that the small size of the NI market “makes it difficult and, in many instances, impossible for manufacturers, wholesalers, vets, and consumers to meet the importation requirements once the grace period ends.” He writes the measures in the Northern Ireland Protocol Bill would “provide us with the power to remove regulatory and trade barriers within the UK internal market…and give confidence that animal health and welfare will continue to be protected.” The Minister also states that they would like to reach a negotiated settlement with the EU on this matter. Last week Alliance party MLAs met with the Ulster Farmers’ Union, NOAH (which represents the animal health industry), and the British Vets Association to discuss the end of the grace period and the possible consequences of unavailability of drugs.

Alliance party meeting the Ulster Farmers’ Union, NOAH and the British Vets Association | Source: @JohnBlairMLA on Twitter

In its report of July 2022, the Commons European Scrutiny Committee considered the issue of supply of veterinary medicines under the Protocol. Previously there were concerns about continued supply of human medicines to Northern Ireland. In April 2022, the EU Council and the European Parliament adopted proposals to secure the long-term supply.

Replacement EU funding

The Belfast Telegraph reports comments from the Minister for Finance Conor Murphy that the UK Government’s promises to replace EU Funding “have not been met and we are facing a significant shortfall in funding as a result”. The UK Shared Prosperity Fund is intended to replace EU structural funding. Murphy said the funding promised has “no flexibility…[and] compares poorly with the average £64m per annum the north received from comparable 2014-20 EU Funds and represents a loss over the three-year period of around £65m before factoring in inflation.” The Minister highlighted that this funding will be delivered directly by the UK Government; previously the Northern Ireland Executive managed the funds.

In response to a written question on the impact on rural communities of the Levelling Up agenda, Brexit, and the withdrawal of EU funding, the Minister of Agriculture, Environment and Rural Affairs states, “The relatively poor outcome [from the Levelling Up Fund] compared with the other devolved nations (particularly Wales) suggests that the unique highly centralised approach adopted by Whitehall for applications from here has not worked for us.” The Levelling Up Fund will invest in local infrastructure. On the Shared Prosperity Fund, the Minister states that the allocation of £127million across three years “does not meet the manifesto commitment for full replacement of ESF [European Social Fund] and ERDF [European Regional Development Fund] and falls short of the £65m per annum we would have received on average from these funds. That is before inflation is taken into account.”

A UK Government spokesperson said, “The UK Shared Prosperity Fund, alongside EU investment to 2023, matches previous funding in Northern Ireland. We are working with local partners to plan how UK money is spent, enabling local communities to invest in priorities that matter to them.”

Retained EU law

Senedd Research has published an article on the Retained EU Law (REUL) Bill, which was laid before Parliament earlier this month. It explains that the Bill would grant UK and Welsh Ministers powers to amend, repeal and replace REUL and assimilated law more easily. The Welsh Counsel General has said the Bill could give UK Ministers “unfettered authority” to legislate in devolved areas, and risks lowering standards. While the UK Government published a ‘dashboard’ of over 2,400 pieces of Retained EU law, it does not identify which legislation is reserved, and which is devolved. The Welsh Government told the Senedd it does  “not consider that the Devolved Governments should have to undertake entire separate analytical exercises on this, not least given the scale of the task and that this is a UK Government initiative driven to an arbitrary UK Government timetable.”

The Commons European Scrutiny Committee held an inquiry on regulating after Brexit and received written evidence on this matter from various institutions. It also published a report on Retained EU Law in July and held an evidence session with Minister Jacob Rees-Mogg, who is now Secretary of State for Business, Energy and Industrial Strategy, and leading the legislation. The Hansard Society will be holding a webinar on the Retained EU Law (Revocation & Reform) Bill and what it means for Parliament. 

Other news

• On 6 October, the European Political Community will hold its inaugural meeting of leaders across the continent to “foster political dialogue and cooperation to address issues of common interest and strengthen the security, stability and prosperity of the European continent”. The UK has accepted an invitation to attend and has offered to host the next summit in London. According to Wall Street Journal Laurence Norman, when deciding whether to attend, the UK Government was considering issues like whether migration will be addressed, whether the EU would play a less dominant chairing role, whether the next host will be non-EU and the naming of the forum as a ‘community’.
• In August, the Minister of Agriculture, Environment and Rural Affairs gave an update on the all-island Protected Geographical Indicator scheme for beef. The UK Department for Environment, Farming and Rural Affairs (on behalf of the NI beef industry) opposed Bord Bia’s (the Irish food board’s) application for Protected Geographical Indication (PGI) status for ‘Irish Grass Fed Beef’ on the basis that the application excluded grass fed beef produced in Northern Ireland. The European Commission invited both sides to enter into discussions and agreement was reached in July 2022. A modified application, including Northern Ireland, was submitted to the European Commission on 3 August. If the process continues successfully (this could be by the end of the year), the Commission will grant the PGI status on an all-island basis and farmers in Northern Ireland will be able to market their beef under the PGI protection and attract a premium. The Minister released a statement on this matter in July.
• The Commons Library has published a research briefing on the UK’s new points-based immigration system, and article looking at how immigration has changed under the UK’s new system.
• The Human Rights and Equality Commissions in Ireland and Northern Ireland have addressed the Oireachtas about human rights and equality issues in Northern Ireland post-Brexit. They raised concerns about the Electronic Travel Authorisation (ETA) requirement in the UK Nationality and Borders Act. Geraldine McGahey, Chief Commissioner for the Equality Commission of Northern Ireland (ECNI) said, "Concerns have been raised with us that the enforcement of the ETA, if introduced, could result in an increase of racial profiling and racial discrimination; particularly affecting those in border communities.”
• The Commons European Scrutiny Committee has published its seventh report of this session. It considers the implications for the UK of EU plans on eco-design for sustainable products. It notes that the new EU Ecodesign for Sustainable Products Regulation will likely automatically apply in Northern Ireland, “with potential effects across the UK internal market”. The committee states, “It is alarming that the Government appears to have been caught out by the EU on draft legislation with potentially significant implications for the UK and also appears reluctant to respond to our analysis.” The report also considers EU proposals on deforestation, noting, “there is considerable uncertainty about how much of it [the legislation] should apply” to Northern Ireland.
• According to academics from the London School of Economics and the Resolution Foundation think-tank, the Protocol on Ireland/Northern Ireland is the reason for NI’s smaller economic contraction compared to other regions of the UK.