Like you, I’ve carefully considered the Internal Market Bill. I reviewed my own concerns and those of the many emails I’ve received on this topic before deciding how to vote on this legislation.
A lot of what the Bill does has been lost in the furore in Parliament and in the media.
The Internal Market Bill will:
- Ensure all four of the UK's nations are not limited by regulations determined by each devolved government by guaranteeing mutual recognition and non-discrimination
- Give UK ministers authority to spend money on state aid and financial support in devolved regions if necessary as we recover from the coronavirus pandemic;
- Give Northern Ireland businesses unfettered access to the UK internal market by removing exit-summary declarations, ensure EU state aid law does not apply to the whole of the UK if applied in Northern Ireland only, and ensure Northern Ireland is fully part of the UK customs territory by guaranteeing that goods moving within the UK will never pay EU tariffs.
The Internal Market Bill is fundamentally about protecting the integrity of the UK.
As we approach the end of the transition period, we have to consider the wider context of our ongoing negotiations with the EU.
The Northern Ireland Protocol – the insurance policy in the event of no agreement being reached by the end of the transition period – contains inconsistencies the UK and EU had intended to resolve by the end of the year. The end of the transition period is fast approaching, and with no agreement yet reached, the government has proposed a safety net to protect the Union and guarantee that the UK’s obligations under the Belfast Agreement are met. See bullet point 3. above.
Unless the powers in bullet point 3. were used, the UK would not be in breach of our international law obligations on state aid and customs provisions as set out in the Northern Ireland Protocol. The EU, however, is concerned the existence of these powers technically breaches international law under Article 4 of the Withdrawal Agreement, which sets out the UK must implement the Withdrawal Agreement in full into domestic legislation. I hope you understand that a technical breach of the Withdrawal Agreement may be unpalatable, but could be necessary. The overriding purpose of the Bill is to protect the Union and ensure that the four nations of the UK can continue to trade seamlessly at the end of the transition period. These aims have my wholehearted support.
If no action were taken, the default legal position would risk creating barriers to trade within the UK and could threaten the Union. The government’s proposals make clear this cannot be allowed to happen.
As you may be aware, the Internal Market Bill passed Committee Stage this week. This stage in the House of Commons allowed MPs to discuss amendments. I’m glad the government listened to our concerns and has agreed to give MPs a vote before invoking certain powers in the Internal Market Bill.
The Bill is not expected to return to the Commons until December. Progress can be made on the issues of subsidies and checks on goods crossing the Irish sea in the meantime, which will allow Ministers to remove “notwithstanding” provisions in the bill that have caused most controversy.
Ultimately, Ministers remain committed to continuing our negotiations with our friends and allies in the EU. Negotiations have continued throughout the coronavirus outbreak with discussions by video conference in April, May and June following the first round of talks in March. Face-to-face negotiations have resumed and the technical detail is well understood by both sides. The differences that remain are largely of a political nature and I am hopeful that these can be resolved. That’s why I don’t support an extension to the transition period. It’s taken long enough to deliver the will of a democratic decision made in 2016. Businesses also need certainty more than ever.
There are really strong feelings on all sides about this legislation. I regret to say I won’t be able to respond individually to each and every concern raised over email. I’ll try to respond if you have further questions or points if you’d like to raise, though I would ask to please bear with me. I’m continuing to prioritise urgent casework and increasing correspondence regarding coronavirus issues as a result of the new restrictions put in place.