Brexit & Beyond newsletter

2 May 2023

Welcome to the 2 May 2023 Brexit & Beyond newsletter

The Specialised Committee on the Implementation of the Windsor Framework met for the first time since its adoption. The Secretary of State for Northern Ireland gave evidence on the Windsor Framework to the NI Affairs Committee. The Lords Sub-Committee heard evidence from SMEs about the new trading arrangements for NI. Concerns have been raised about the UK’s proposed model for border checks. A Westminster Hall debate was held following a petition calling for a public inquiry into Brexit. Reports suggest the UK Government may change its approach to Retained EU Law.

 

Implementation of the Windsor Framework

The Specialised Committee on the Implementation of the Windsor Framework, made up of UK Government and European Commission officials, met on Thursday 27 April. A joint statement was released. The co-chairs “took stock” of work and next steps to implement the Framework, which was formally adopted on 24 March. It noted the Joint Consultative Working Group has adopted amended rules of procedure which provide for the establishment of “structured sub-groups” for stakeholders to input into discussions. The UK and EU “reiterated the importance of engagement with business groups, civil society and other stakeholders in Northern Ireland as work on the Windsor Framework is taken forward”.

Last week, committees in the European Parliament voted unanimously to approve proposals on SPS measures, and human medicines, which will give legal effect to arrangements agreed in the Framework.

 

Secretary of State gives evidence on the Windsor Framework

The Secretary of State for Northern Ireland Chris Heaton-Harris gave evidence to the NI Affairs Committee on 25 April. He was asked about suggestions that the UK Government may legislate to address constitutional concerns, but didn’t give any indication of what this may entail. He said, “what is actually required by the Unionist community and their politicians…is a question really for them. We indicated in the Command Paper the sorts of things that we could possibly do.” He said when the Windsor Framework is implemented, he’d like to think “it will be almost like the Ronseal framework, because it will do what it says on the tin.”

Secretary of State for Northern Ireland Chris Heaton-Harris speaking to the Committee

Secretary of State for Northern Ireland Chris Heaton-Harris speaking to the Committee | Source: UK Parliament

The Minister was told by DUP MP Jim Shannon that the party’s legal opinion finds the Stormont Brake “not worth the paper it was written on.” Heaton-Harris told the Committee, “the one sure way of demonstrating any legal opinion…is to get into Stormont and see, when the need arises, what happens when the Brake is activated. Until that point, you are talking theory.” He says he wants the Brake to be tested, and believes “it will then demonstrate to those who do not believe that it is going to work, that it does.” Heaton-Harris and an official from the NI Office explained that the Brake only begins to function when NI’s institutions are functioning. After this point, two parties who are “seeking in good faith to operate the institutions” can operate the Brake if the Executive isn’t working. They also emphasised that the Stormont Brake would be subject to judicial review, as it will be enshrined in domestic law. Mark Davies, Director of the Windsor Framework Taskforce in the NI Office said, “That is why we were so clear and keen to put this on to a sort of domestic law footing… we wanted those safeguards clear and in place.” Madeleine Alessandri, Permanent Secretary at the NI Office explained that the department has been working closely with NI Assembly staff in developing the detail of how the Brake will work. They are working to have “dry runs” of the new provision before it is operational.

On the operation of the red and green lanes, Davies said there is scope “for dialogue and working things through, rather than it being rigid or causing difficulties for every stage.” Heaton-Harris said there has been live testing of the system for some time and he believes the processes to access the green lane will be “quite straightforward”. This was in relation to concerns from businesses about how onerous it may be to comply with the green lane requirements [more on this below].

 

Lord Sub-Committee inquiry on the Windsor Framework

The Lords Sub-Committee on the Protocol on Ireland/Northern Ireland continued to hear evidence as part of its inquiry into the Windsor Framework. Sarah Hards, Sales Director at AM Logistics, told the committee that for retailers, the Framework is a major improvement. However, she said groupage (goods from different companies which are transported together), which was forgotten about in the Protocol, “has not been remembered” in the Framework. Peter Summerton, Managing Director at haulage company McCulla Ireland, agreed. He argued the green lane is more cumbersome than the previous scheme, with more information and details required from businesses. He noted the goods which will require ‘not for EU’ labels (e.g. pre-packaged meat and fresh dairy) and suggested certifying goods for the red lane and moving them in bulk may be less hassle for traders than the new labelling system.

The red and green lane system for the movement of goods from Great Britain to Northern Ireland

The red and green lane system for the movement of goods from Great Britain to Northern Ireland

Roger Pollen, Head of the Federation of Small Businesses Northern Ireland, welcomed the efforts from the EU and UK in finding joint solutions but called for more detail, and input from business. He said the focus should be on “facilitation over gold-plating”. He emphasised that the involvement of business is essential and that ways should be found to allow them to use the green lane.

Pollen said the Framework “could be best of both or it could be the worst of all” for market access: there is a risk that if NI is considered unique, that it could be marginalised from the rest of the UK. He highlighted the role for the Office of the Internal Market to ensure NI is not negatively impacted. He also suggested there could be a role for an “EU champion” to promote NI in other markets, as an integral part of the EU and UK markets. Hards said access to the EU market needs to be realised, saying, “we have not reached the point where there is enough stability and enough clarity on everything.” She said there are investors who want to bring their business to NI because of its unique position but they cannot do that “until things are settled here.”

On the new arrangements for parcels, plants, and seeds, witnesses emphasised the need for greater clarity and a reasonable amount of time to prepare for changes. Pollen said the sense from FSB’s membership is that the developments on VAT are quite positive and pragmatic. Summerton would like to see more information on what is considered ‘immovable property’. From 1 May, Northern Ireland households do not have to pay VAT on energy-saving materials, a change made possible under the Windsor Framework.

UK’s Border Operating Model

Summerton highlighted the impact of the UK’s Border Target Operating Model (the draft publication was issued in April), which sets out its planned border controls on EU imports. The Windsor Framework promises “unfettered access” to Great Britain for NI businesses, but Summerton questioned how that will be controlled, if EU goods can flow freely into NI. He added that if third-country goods can enter GB via NI with no controls, this would be a disadvantage to NI producers. Hards doesn’t see this as a legitimate route to market and presumes the UK will do something similar to the EU on protecting the integrity of its market, based on intelligence-led information. Pollen said if the UK border model is operating effectively, a backdoor via NI shouldn’t be available.

Politico reports on concerns from businesses about the impact of post-Brexit border checks on food prices and inflation. William Bain, trade expert at the British Chambers of Commerce, says, “EU suppliers may be less willing to trade with British based companies, because of increased costs and paperwork. The costs of imported goods would almost certainly increase.”

 

Westminster Hall debate on Brexit

On 24 April, a Westminster Hall debate on the UK’s Exit from the European Union was held. This was following an e-petition (with currently more than 190,000 signatures) which states, “The benefits that were promised if the UK exited the European Union have not been delivered, so we call upon the Government to hold a Public Inquiry to assess the impact that Brexit has had on this country and its citizens.”

Stephen Farry (Alliance) argued that Brexit “has fundamentally changed so much in relation to the UK economy and our ability to influence transnational issues, such as crime and the environment. It has diminished the UK’s international standing.” Jim Shannon (DUP) said his constituency of Strangford voted 56% to leave and 44% to stay in the EU. He stated “I am the first to say that my full support lay with exiting the EU and the repercussions that have come from it. Unfortunately, we are seven years on from the referendum, yet there is still outstanding work to be done on how we can make the best out of the cards we have been dealt.”

Leo Docherty, Minister in the Foreign Office, responded to the debate. He said the Government has been re-elected twice “with a clear mandate to pass the necessary legislation to leave the EU and negotiate a trade agreement.” He said its policies on its new relationship with the EU are “subject to robust parliamentary scrutiny”, pointing to Parliament’s votes on the Withdrawal Agreement, and Trade and Cooperation Agreement and the work of the European Scrutiny Committee, the Lords European Affairs Committee, and the Lords Protocol on Ireland/Northern Ireland Sub-Committee. He said therefore the Government “does not believe that it would be appropriate to hold an inquiry into the impact of Brexit”. Docherty argued, “Britain left the EU to do things differently and make our own laws, but this was not just political theory: our laws and tax framework and the way we spend our money all make a real difference to people’s lives. The Government are committed to capitalising on the opportunities of Brexit.” He said the UK’s immigration system is now “much fairer” and that “Brexit was never about the UK stepping away from our proud and historic role in Europe”.

 

Retained EU Law

The Financial Times reports that Business Minister Kemi Badenoch has told Conservative Eurosceptics that perhaps only 800 items of Retained EU Law (REUL) will be repealed by the end of the year. There are currently 3,745 listed on the Government’s REUL dashboard. Under the Retained EU Law Bill, this legislation would automatically expire at the end of this year, unless retained. The FT reports that Badenoch has told MPs that plans to improve EU law could not be rushed. A Government spokesperson said, “We remain committed to ensuring the Retained EU Law Bill receives Royal Assent and that the supremacy of EU law ends with unnecessary and burdensome EU laws removed by the end of this year.” The Guardian reports comments from Labour MP Stella Creasy, who says, “All those wanting to defend parliamentary sovereignty should be wary of the government using the promise not to delete vital rights now as a Trojan horse to get this legislation through parliament and then use the powers in it to destroy legislation later.” Jill Rutter writes for the Institute for Government that the apparent approach of Badenoch - to list items of REUL which are to be repealed - “removes the risk of inadvertent error and will enable parliament at least to look at what is in scope. So far, so much better.”

Over 20 UK workplace safety bodies have written to Badenoch expressing their concerns about the provisions in the Bill for workplace safety protections, which could impact, for example, regulations on asbestos.

Secretary of State for Business and Trade, and Minister for Women and Equalities, Kemi Badenoch

Secretary of State for Business and Trade, and Minister for Women and Equalities, Kemi Badenoch | Source: UK Parliament / licensed under Attribution 3.0 Unported (CC BY 3.0)

In a letter to the Commons Women and Equalities Committee on 6 April, Minister Badenoch stated “The Government will not abolish any law for the sake of it.” She says, “the provisions within the Bill are not intended to undermine our human rights or equality legislation” and argues that the high standards in employment rights and parental leave “were never dependent on our membership of the EU.”

 

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