Clause 11 - Modifications in connection with the Northern Ireland Protocol

Part of United Kingdom Internal Market Bill – in the House of Commons at 5:00 pm on 21 September 2020.

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Photo of Robin Walker Robin Walker The Parliamentary Under-Secretary of State for Scotland, The Minister of State, Northern Ireland Office 5:00, 21 September 2020

I will make a little progress.

Clause 42 is in keeping with what the Government have constantly said, including public commitments from the Prime Minister, our manifesto commitments and commitments to the people of Northern Ireland. It is clear from the protocol that it is for the UK to implement unfettered access. Declarations of the sort that would be disapplied through this clause would be contrary to the recognition in the protocol that Northern Ireland is part of the customs territory of the United Kingdom.

Clauses 43 and 44 provide a similar safety net in the case of EU state aid rules that will apply in the UK by virtue of the protocol. Clause 43 gives the Secretary of State the ability to ensure there is no ambiguity in UK law about the interpretation of article 10 of the protocol, which provides that EU state aid rules will apply in respect of goods and electricity traded between Northern Ireland and the EU. A clear interpretation of how they will apply may be needed in the interests of legal certainty for both public authorities granting subsidies and companies throughout the UK receiving support. There is a risk that a maximalist interpretation of article 10 of protocol by the EU, which was never intended but is none the less a risk we must protect against, could give the European Commission extensive jurisdiction over subsidies granted in the rest of the UK, known as reach-back. All the subsidies granted to the services sector in Northern Ireland could be caught even if there is no link, or only a trivial one, to a goods provider.