← LEADERSHIP TERMINAL

UK PARLIAMENT · SITTING

Bill Esterson

MP for Sefton Central · Labour · United Kingdom

IN THEIR OWN WORDS

As the Prime Minister said on Tuesday, our energy supply and our energy security are not a question of having either oil and gas, or renewables; they are about both. It is a great pity that proper process was not followed in 2022 or 2023. [ Interruption.

JACKDAW AND ROSEBANK OIL AND GAS FIELDS · 2026-09-03 · READ IN HANSARD

I warmly welcome my right hon. Friend’s commitment to continuing Britain’s global leadership on climate action, including by going to COP31. I also welcome his focus on breathing space for people and businesses, but, as he said, it will take a lot more than that to deliver the growth and reindustrialisation that he is so committed to.

DIRECTION OF GOVERNMENT · 2026-09-01 · READ IN HANSARD

Last week the Committee heard from Claire Dykta, the director of strategy and policy at NESO, who told us: “Operational decisions are taken by authorised, trained personnel only.” Her comments were confirmed by Alastair Martin, the chief strategy officer at Flexitricity, who, in the same session, said: “I do not think the idea that the he…

NATIONAL ENERGY SYSTEM OPERATOR: BLACKOUT RISK · 2026-07-15 · READ IN HANSARD

As the Minister has just said, new nuclear is essential for energy security. It is also essential as an alternative career for workers in oil and gas.

NUCLEAR ENERGY SITES: SCOTLAND · 2026-07-07 · READ IN HANSARD

Paul and Susan Robinson each worked for the Health and Safety Executive for more than 40 years. They have not been able to plan for their retirement since finishing work last year; they have been living off their savings and the small loan that they have had. They are typical of the dozens of constituents who have contacted me.

CIVIL SERVICE PENSIONS · 2026-07-06 · READ IN HANSARD

Hudson primary school in my constituency does a brilliant job. It is a family hub, it specialises in support for children with SEND and autism, and it has a nursery, but its building, which is 80 years old, suffers from a high water table that brings damp, mould and structural problems for the building—as does occasional flooding.

SCHOOL REBUILDING PROGRAMME: SEFTON · 2026-06-22 · READ IN HANSARD

The complete record

Every one of 4,882 lines we hold for Bill Esterson, in date order, each linked to its source. Free to read, in full, without an account. Page 37 of 98.

  1. Given the scale of the regulations and their far-reaching nature, I will put on the record our concern about whether we have been provided with sufficient evidence of whether they deliver the technical details required for a functioning state aid regime that supports our economy and communities up and down the country. We will, however, do what we can to tease out some of the concerns that we have been able to identify about the technical nature of what is being proposed. This set of regulations comes to 80 pages. I, and other Members, have been on Public Bill Committees that have been allocated many days, if not weeks, to consider far shorter Bills with line-by-line scrutiny, quite often following pre-legislative evidence sessions from expert witnesses.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  2. The hon. Gentleman tempts me down various different routes. I shall come to how the Government have diverged from their normal practice of straight transposition with these regulations. That applies particularly to the debate we had about the devolved Administrations. These regulations do not follow the normal pattern, as will become clear as I set out my argument. State aid plays a vital role in our economy. Ensuring that we have a functioning state aid regime means that putting in place regulations that deliver exactly what is needed is very important. It is therefore essential that we carry out the detailed scrutiny this afternoon in the same way that the Lords did on 14 March.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  3. My constituents would certainly welcome such Government intervention, rather than allowing private bus companies to continue to cherry-pick routes and leave those in rural communities with inadequate or non-existent public transport.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  4. Sadly, post offices continue to close, despite her protestations that she has done a deal with WHSmith. Our towns and villages, many of which do not have access to the internet, depend on post offices. Those who rely on cash, including many smaller businesses especially, need a full postal service system. Labour’s plans for a full postal bank network would be allowed under the draft regulations, so why not adopt it, to the benefit of residents and businesses? That is entirely what the exemptions covered by the regulations anticipate. I live in hope for the Minister’s answer. The draft regulations show that she could intervene far more extensively if she wished, and I hope that she will take the opportunity to do so. Similarly, will we see better rural bus services?

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  5. On subsidies, EU rules are much more stringent than those of the WTO, so in the light of the Treasury’s own estimates of serious contraction of the economy, it is of real concern that the Government are limiting their ability to stimulate the economy through the use of state aid, by retaining EU restrictions on its application. [ Interruption. ] I am starting to answer the question from the hon. Member for Burton, and there is more to come that will address his points. What will the state aid regime post Brexit mean in practice? Paragraph 2.8 of the explanatory memorandum refers to postal services and rural transport. Will we see additional support for our post offices? That is part of the Minister’s brief so she should be able to answer that.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  6. State aid is governed by Articles 107 to 109 of the TFEU—and a number of EU regulations made under those TFEU Articles. Article 107(1) defines State aid and sets out the general prohibition on giving aid. The prohibition operates by effectively providing that aid is incompatible with the internal market insofar as it affects trade between Member States unless the aid has been approved by the Commission.” However, the proposed regulations apply only to aids that affect trade between the UK and the EU. That on its own is somewhat odd, as it applies in the event of a no-deal Brexit, when we would be a third country, with no agreement with the EU and no prospect of reciprocal arrangements. Certainly none would be in place. Under no deal, aids in the EU that affect trade between the EU and the UK will not be subject to article 107 and 108.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  7. Fortunately, Mr Hanson, you have answered my hon. Friend’s question very well. I think his point was that we are really not doing this justice, and are not in a position to do so. However, we will do what we can. Paragraph 2.1 of the explanatory memorandum describes what the regulations do. It says: “The overall effect is to transpose the EU State aid regime as set out in Articles 107 and 108 of the Treaty on the Functioning of the European Union (TFEU) into domestic law and give the Competition and Markets Authority…the function of regulating the regime in place of the EU Commission”. Paragraph 2.2 says: “State aid is support in any form (financial or kind) from any level of government which gives a business or another entity an advantage that could not be obtained in the normal course of business.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  8. The explanatory memorandum’s reference to having a functioning state aid regime in place is a reminder that the Government need to continue such support once we have left the EU—from day one of the application of the regulations, without a gap in between. I would be interested to hear what the Department has in store to ensure that there is no gap between European funding and national funding.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  9. Does that commitment to provide support for our less prosperous regions mean that the Government will invest to replace the money that is currently delivered by the EU to areas such as the Liverpool city region? That area has historically benefited from European Union funding under the European regional development fund and similar programmes, which is the kind of investment in infrastructure and skills that my constituents have needed and will continue to need. Such investment has delivered both success for businesses and high-skilled and well-paid jobs in the regions and nations of the UK.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  10. Absolutely, Mr Hanson. I quoted paragraph 2.8 of the explanatory memorandum for the State Aid (EU Exit) Regulations 2019, which refers to support for postal services and rural transport as examples of services of a general economic interest that are covered by the regulations. I was using them as an example. I am glad that you asked me to clarify why I was doing so and are happy that I have done so. Paragraph 2.13 of the explanatory memorandum refers to the operation of a functioning state aid regime. It says: “This is important to give certainty and continuity for business, to prevent distortions of competition and to ensure that less prosperous regions of the UK are not disadvantaged by support provided in wealthier regions.” That point was alluded to by my hon. Friends in their interventions.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  11. It is not that she is wrong; it is that I have no way of telling whether she is right or wrong. That is an important distinction. [ Interruption. ] I am perfectly capable of reviewing the legislation, as the hon. Member for Burton points out. Unlike him, I do not have the legal background—

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  12. My hon. Friend is quite right to pursue that point further. I prepared a section of my speech on that, and I will pick up his point in detail when I reach it. I have identified some additional points from what he said earlier and the Minister’s reply. Paragraph 6 of the explanatory memorandum covers the legislative context. It lists no fewer than 14 pieces of legislation affected by the regulations and underlines just how much of a challenge it is for the Committee to scrutinise these changes, which are vast in scale and have far-reaching consequences. The volume of legislation listed in paragraph 6.4 demonstrates why it simply is not possible for us to say whether the regulations deliver the technical changes the Minister claims are being made.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  13. How can we judge what the outcome is or should be without sight of that response?

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  14. In paragraph 7.2 of the explanatory memorandum, the Government refer to “the costs and benefits of setting up a completely new body or having an established regulator take this on”. I note the information before us does not give the details of that cost-benefit analysis or why the decision was taken to choose the CMA rather than setting up a new body. That takes me back to the points made in earlier interventions about the devolved Administrations. Paragraph 10.1 refers to the discussions with the devolved Administrations and the CMA. It sounded to me in those earlier exchanges as though the Minister was in danger of being right in the middle of a constitutional crisis. Without publication of the Secretary of State’s response to the letter from the Welsh Government, this dispute has not been resolved to anybody’s satisfaction.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  15. A further example of our inability to form an opinion can be found in the wording of paragraph 6.28, which states that “a large number of deficiency corrections were required to make the Procedural Regulation operable in a domestic setting.” The explanatory memorandum does not describe in detail what that large number of deficiency corrections is, it does not say what the evidence base is for asserting the need for those corrections, and it does not give back-up expert witness evidence in support of that assertion. That sentence is a pretty fair indication that we have an impossible task and are being asked to approve something with a clear lack of evidence to support doing so. The CMA is being asked to take on responsibility for oversight of the state aid regime from the European Commission.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  16. Before we joined the European Union, there was of course no comprehensive state aid regime to regulate what was and was not permitted, so the difference between the two options is very significant. The information provided to us does not give us the evidence we need to make a reasonable judgment about the technical adequacy of the regulations. For a simple example of that, I refer Members to paragraph 6.14 of the explanatory memorandum. I have no doubt about the need to omit specific references to Germany in article 107(2)(c) of the EU regulation, but I also have no way of knowing whether such a technical change is appropriate. More to the point, we have no way of knowing whether all the necessary technical changes of a nature similar to those identified in paragraph 6.14 and a number of other paragraphs have been made.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  17. Oh, the hon. Gentleman does not have a legal background either—never mind. We are in danger of being diverted again. In paragraph 6.10 of the explanatory memorandum, the Government say they will rely on EU case law in their application of state aid rules, but there is legal opinion that we may have to rely on case law from before we joined the EU—this point was picked up in the Lords—as we will no longer be bound by the treaties of the EU. That may be tested in the UK courts, and it may take years to resolve. That has been the case with other regulations passed in Committees like this, and Ministers have not been able to give a satisfactory answer—presumably because there are conflicting legal views about how it would be resolved.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  18. I am grateful to the Minister for that intervention, which tells us that we have not had the response from the Secretary of State. I am pleased that we got that on the record. The Secondary Legislation Scrutiny Committee (Sub-Committee B) report, published on 7 February, refers to this issue and asked “whether the Devolved Administrations were content with the approach”. It is pretty clear that there has not been an answer to that question, let alone the more detailed letter published as evidence given to that Committee, which my hon. Friend the Member for Blaenau Gwent quoted from earlier and which I will quote from in more detail now. Not only are those responses not recorded, but it does not appear they have been made.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  19. It is entirely understandable that our Labour colleagues in the House of Lords tabled a motion of regret that the draft regulations were not accompanied by a strategy for consultation on the use of state aid after the UK has left the EU. I entirely agree with their lordships. The entirely unsatisfactory approach to engagement with the Welsh and Scottish Governments further reinforces the perception that the Lords were absolutely right in their regret of the way that the regulations have been handled.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  20. I am afraid that the way this matter has been addressed suggests a lack of understanding or interest from the Government on state aid. UK state aid is less than a third, proportionately, of the scheme in Germany, and slightly more than half that in France. The Government did not support Sheffield Forgemasters in 2010, and abandoned Labour’s plans to do so. They failed to ensure that contracting supported domestic train manufacturing at Bombardier and steel production at SSI, and stopped the EU using trade remedies to defend our steel industry in the 2015 steel crisis. We know the Government’s attitude to state aid. Sadly, their casual approach with the regulations shows that they are ill prepared for Brexit. Yet again they are failing to support industries, economies, jobs and communities across the country.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  21. We know the Government have been struggling with consultation and impact assessments, and ensuring that all regulations are in place on Brexit day, whenever that is, but for this SI there is the additional concern that there is a massive economic imperative, the need for state aid support across the country, and for the replacement of significant investment in communities such as the ones that my hon. Friends and I represent. The concerns about CMA capacity and expertise, and the uncertainty about whether primary legislation will be needed and about overreach into devolved national competences, are therefore all of real concern. The lack of expert evidence is especially important, on a subject that is so significant to our country, our economy, our constituents and our communities.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  22. Again, the oversight appears to be of concern, as so often with this Government. The Secretary of State will have oversight day to day, but Parliament will have to wait to receive reports from the CMA. Perhaps the Minister can spell out the system of reporting to Parliament. Then there is the consultation by the CMA itself, which ended on 18 March. Would it not have been a good idea if, along with the response to the Welsh Government, we had been shown the responses to that consultation before considering this instrument?

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  23. If that is not to happen, why are the Government not moving straight to a less strict system, as covered by WTO rules, rather than via this halfway house given that we will no longer be governed by EU state aid rules once we leave? Usually the answer to such questions is that this is because under the withdrawal Act these regulations are deliberately limited in scope, but if that is true, why are the Government not complying with the withdrawal Act in respect of competences and the devolved Administrations, as I think we have demonstrated in some detail—it is certainly the opinion of the Welsh Government from the letter that I quoted earlier? It seems that the Government are content to follow the process of creating SIs when it suits, but not with any consistency.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  24. This is referred to in a number of places in the explanatory memorandum, including in paragraph 7.6. I should be grateful for clarification from the Minister on what certainty exists around the regime that is being created by these regulations and whether, given the complexities involved, these regulations are in fact inadequate. As the explanatory memorandum says, primary legislation is needed. When will that legislation be introduced? Perhaps she can tell us of any plans to do that. Will the CMA retain the strict EU interpretation of state aid rules or allow a loosening of them to enable support for the economy, not least given the loss of EU funding and those Treasury forecasts of economic contraction after we leave the EU?

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  25. We might think it ironic that we have regulations on state aid but the Government have chosen not to use such an opportunity to support the economy and jobs in other parts of the country. Is there a plan to review how the existing state aid guidelines operate in a UK-only context once the new regime has been set up? What will be the engagement and involvement of the devolved Administrations according to the Government’s plan, notwithstanding the fact that the way this is addressed has yet to be resolved? What is their plan on the involvement of local and regional government, industry bodies, trade unions and civil society? The Secondary Legislation Scrutiny Committee not unreasonably asked for clarity on whether primary legislation would be needed to introduce state aid, and under what circumstances that might apply.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  26. The decision was taken to give them to the CMA, which is taking on the role of national regulator in addition to its significant current responsibilities. How are the preparations going for the CMA to take on those new responsibilities? How many staff have been recruited? Has it even been possible to identify the necessary staff with the skills, experience and expertise needed to fulfil the functions required under those new responsibilities? Does the CMA have the capacity to discharge these new duties? Why have the Government chosen to significantly expand this agency in London, missing the opportunity to support the economy across the country? This is a form of state aid, is it not?

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  27. Paragraph 12.3 states that “the instrument will not have a significant impact on business.” From this discussion so far, it is pretty clear that how the CMA chooses to operate the state aid regime, and how funding to the regions and nations of the UK is operated—for example, to replace ERDF funding—will have an enormous impact on business and the economy, as well as on our constituents in the poorer parts of the country. The Minister might wish to comment on what I have already said, and I also have a number of questions for her. She said earlier that the CMA has expertise, but these are entirely new responsibilities. Hence I referred to the cost-benefit analysis of whether a new body should be created or whether these powers should go to an existing organisation.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  28. I do not know whether that is a fair representation or not, but it sounds pretty serious to have such substantial disagreement. Given the seriousness and the importance of these regulations, I suggest that it would have been extremely beneficial to have resolved this before it came to the Committee. Paragraph 10.2 of the explanatory memorandum refers to the August 2018 technical notice and discussions with a variety of stakeholders, including the Confederation of British Industry and the Federation of Small Businesses. The responses to the technical notices have not been published with the explanatory memorandum.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  29. They say: “In reaching this view we also note that the UK Government has not responded to the Welsh Government’s request for an explanation of their position that State Aid is a reserved matter. In his letter to us”— the Welsh Government— “the Counsel General has confirmed that the Welsh Ministers do not intend on granting to the UK Government unilateral consent for these Regulations. It is our understanding that discussions between the Welsh Government and the Secretary of State for Business, Energy and Industrial Strategy are ongoing.” I understand that the Scottish Government have similar concerns, but I have been unable to find public confirmation in writing. Perhaps the Minister will be able to clarify one way or the other—I do not think we quite got that from her earlier. I mentioned the phrase “constitutional crisis”.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  30. The Welsh Government go on to say: “The approach being adopted by the UK Government therefore appears to be a breach of paragraph 8 of the Intergovernmental Agreement” on the European Union (Withdrawal) Act 2018, which states: “The UK Government will be able to use powers under clauses 7, 8 and 9 to amend domestic legislation in devolved areas but, as part of this agreement, reiterates the commitment it has previously given that it will not normally do so without the agreement of the devolved administrations. In any event, the powers will not be used to enact new policy in devolved areas; the primary purpose of using such powers will be administrative efficiency”. It is pretty clear that the Welsh Government think this is a matter significantly beyond administrative efficiency.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  31. However, the UK Government do not consider it as such’”— the Minister has made that point already— “‘(as was noted in the Intergovernmental Agreement) and therefore they have not requested Welsh Ministerial consent. The Welsh Government has requested from the UK Government, an explanation of their legal position but there has been no response.’” As we have just confirmed, that is still the case.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  32. That is absolutely the right question to ask. I will just make clear exactly what questions we want answered by quoting from the letter published on the website as evidence to the Secondary Legislation Scrutiny Committee, which raised significant concerns: “These Regulations transfer functions to non-devolved public authorities, namely the Competition and Markets Authority and the Secretary of State”— we will come back to him later— “and giving functions to non-devolved public authorities restricts the legislative competence of the National Assembly for Wales.” It also said that “there is the added problem that the Welsh Government and the UK Government disagree as to whether State Aid is devolved”, and quoted the advice of the Welsh Government Counsel General, which said: “‘The Welsh Government’s position is that State aid is a devolved matter and not a reserved matter under any heading of the Reserved Matters Schedule in the Government of Wales Act 2006.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  33. On a point of order, Mr Hanson. I am sure that had anything disorderly taken place or the suggestion the Minister just raised been made, you would have intervened and stopped it. May I have your confirmation that that is what would have happened, and that as it did not, nothing disorderly happened earlier?

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  34. That is interesting. I read the regulations and the explanatory memorandum in some detail several times. Although the Minister is right that the regulations will apply in the event of no deal, it is pretty clear that they will also apply if there is a deal. Indeed, I checked this point with the Library, and the regulations will apply whatever the arrangements for our exiting the EU. Will she confirm that that is the case?

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  35. I will repeat part of the quote that I read out from the Welsh Counsel General about clauses 7 to 9 of the withdrawal Act. It relates to the inter- governmental agreement that the Minister has just referred to, and states that “the powers will not be used to enact new policy in devolved areas; the primary purpose of using such powers will be administrative efficiency”. I put it to her that this is a million miles away from being just about administrative efficiency. By any definition, this is about new policy in devolved areas.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  36. On a point of order, Mr Hanson. In the light of the Minister’s inability to deal with the point about the response from the Welsh Government to the Secretary of State, is there a way for the regulations to be further debated on the Floor of the House as part of their passage? That would give the Minister time to get us the answers to that question and others, because this is very unsatisfactory.

    DRAFT STATE AID (EU EXIT) REGULATIONS 2019 · 2019-04-10 · READ IN HANSARD

  37. She is engaged in a conversation at the moment, so I hope she heard that question. My hon. Friend the Member for Coventry South (Mr Cunningham), who is no longer in his place, asked the Minister a very good question about how UK consumers will be protected in the event of no deal. His question highlighted just how important it is that we do everything in our power, particularly in these next 10 days, to avoid the disaster of crashing out with no deal. That is the best way in which to avoid having to revoke the regulation.

    EXITING THE EUROPEAN UNION (CONSUMER PROTECTION) · 2019-04-02 · READ IN HANSARD

  38. I thank the Minister for her opening remarks. She set out exactly what the existing regulations do and, to be entirely honest, what she is proposing in the case of no deal makes perfect sense. The regulations before us revoke the existing regulations that prevent undue discrimination across the European Union by the blocking of consumers in one country from accessing websites in another member state or by redirection to the member state of the consumer. A number of questions arise from the Minister’s remarks and from at least one of the interventions she took. She spoke about the fact that these regulations are relevant only in the event of no deal. When she responds to the debate, will the Minister confirm that, if a deal is agreed, the Government have no intention of revoking these or similar regulations?

    EXITING THE EUROPEAN UNION (CONSUMER PROTECTION) · 2019-04-02 · READ IN HANSARD

  39. On a no-deal outcome, the CBI-TUC letter states: “Firms and communities across the UK are not ready for this outcome. The shock to our economy would be felt by generations to come…avoiding no deal is paramount.” They describe no deal as causing “reckless damage”— [ Interruption. ] It is a shame that those Members commenting from sedentary positions on the Government Benches did not support some of the alternative options available to us yesterday. The TUC and CBI call for a plan B, which has been rejected by those Members who have been heckling me for the past few seconds.

    EXITING THE EUROPEAN UNION (CONSUMER PROTECTION) · 2019-04-02 · READ IN HANSARD

  40. Although I do not have its response to the consultation—I hope to hear it shortly from the Minister—I do have what it wrote to the Prime Minister, in a joint letter with the TUC, about the consequences of no deal. Is it not refreshing to see the leaders of the employers’ largest representative organisation and the leaders of the workers’ representative organisation working so closely together, signing a joint letter to the Prime Minister? That is what leadership in this country looks like and it is a great shame that we have not seen more of it from politicians. The joint letter makes it clear that no deal would be disastrous for the country—for businesses and for workers—and that also applies to the draft regulations, should they ever be needed.

    EXITING THE EUROPEAN UNION (CONSUMER PROTECTION) · 2019-04-02 · READ IN HANSARD

  41. The draft regulations are an example of what no deal means. After yesterday’s latest failure by Members from across the House—but from some parties in particular—to be prepared to find a compromise to avoid no deal, we are one day closer to the dire prospect of that outcome. Of course, the Government should have taken no deal off the table, so that MPs did not have to do so, to avoid what in all honesty are desperate, last-minute no-deal preparations. That is the only way to describe what we are being asked to do today, 10 days before a likely no-deal departure. The CBI was one of the business organisations referred to as having been consulted.

    EXITING THE EUROPEAN UNION (CONSUMER PROTECTION) · 2019-04-02 · READ IN HANSARD

  42. Paragraph 2.4 makes the point that “if we did not revoke the Geo-Blocking Regulation, UK traders would continue to have obligations to EU customers under the Regulation while UK customers are unlikely to receive any of its benefits.” Paragraph 2.5 states: “To avoid this asymmetry of enforcement obligations in the EU’s favour, we are revoking the…Regulation in the UK.” I accept those points, which is why we will not oppose the revocation. The revocation of the regulations would at least minimise discrimination, but that is a bare minimum and a low base from which to operate. It would be far better not to have to do this and to have mutual recognition after we leave the European Union and continue with an arrangement that protects our businesses and consumers against discrimination as far as possible.

    EXITING THE EUROPEAN UNION (CONSUMER PROTECTION) · 2019-04-02 · READ IN HANSARD

  43. If we leave with no deal, the draft regulations will revoke the geo-blocking regulation completely. No deal would end the protections for UK businesses and consumers, as they would not be protected in the European Union. The Minister set that point out very well in her opening remarks. As she said, retaining the regulation in the UK would mean that we could be blocked but would not be able to block against discriminatory practices from within the European Union. Those points are well made in paragraphs 2.4 and 2.5 of the explanatory memorandum.

    EXITING THE EUROPEAN UNION (CONSUMER PROTECTION) · 2019-04-02 · READ IN HANSARD

  44. The regulations that we are being asked to revoke are designed to prevent discrimination based on location. They exist to stimulate the internal market of the European Union and to support the free movement of goods and of free trade through the digital sector. They address the possible restriction on competition between businesses across the European Union market and ensure that consumers have access to the best offers, prices and conditions of sale. They do not limit trade for consumers to goods and services in their own country—that is a very important distinction—and that is precisely what has happened since the regulations were introduced at the start of last year. They also prevent website redirection away from businesses that are not in the consumer’s member state.

    EXITING THE EUROPEAN UNION (CONSUMER PROTECTION) · 2019-04-02 · READ IN HANSARD

  45. I have no reason not to accept it, but I do not have the technical expertise. The papers in front of us do not allow me to say any more than that, so I have to put on the record my reservations and those of my party. As ever with the statutory instruments we are being asked to approve, there is no impact assessment. The lack of published consultation responses also makes it that much harder for us to analyse what we are being asked to approve. Businesses and consumers need confidence and certainty. I note from the explanatory memorandum that a number of business organisations were consulted. Perhaps the Minister could provide more detail on what they said. She has done so on previous occasions, so I look forward to hearing what was said in those consultation discussions.

    EXITING THE EUROPEAN UNION (CONSUMER PROTECTION) · 2019-04-02 · READ IN HANSARD

  46. I think he might be. Suffice it to say that that deal has been rejected three times, on the first occasion by the largest margin by which a Government have ever been defeated in the known history of Parliament. Quite apart from the undesirability of what is in that deal, I think we should probably move on. I have a sixth sense that it will come back for fuller debate on another occasion. The Minister made a very strong case for cross-border co-operation, for maintaining the regulation and for a mutual recognition agreement so that we can maintain protections for consumers and businesses. I hope she will confirm that when she responds to the debate. I am not able to confirm with absolute certainty that the revocation will deliver what the Government intend it to do. We have to accept the Minister’s word that it will do so.

    EXITING THE EUROPEAN UNION (CONSUMER PROTECTION) · 2019-04-02 · READ IN HANSARD

  47. Will businesses in this country be able to buy services from within the EU if the regulation is revoked? I and other hon. Members have asked questions about the damage that no deal will do on a small scale through this one set of regulations. One way to express it is to say that these regulations show that the Government have failed to prepare; another is to say that they have not prepared because it simply is not possible to prepare for no deal. These regulations, like so much else that is going on at the moment, given the looming prospect of no deal, demonstrate that. We can overcome the danger of a disaster only by avoiding no deal. I hope that hon. Members from all parties will take note of that and will try to find alternatives. The Government’s deal will not go through, so an alternative needs to be found.

    EXITING THE EUROPEAN UNION (CONSUMER PROTECTION) · 2019-04-02 · READ IN HANSARD

  48. I understand that there are businesses in the UK that currently use hosting services from EU providers. Can she reassure them about how that access will continue if the geo-blocking regulation is revoked in the event of no deal? The impact assessment takes a very narrow view and does not comment on the number of individuals using services from the EU in this way under the regulation. I hope that the Minister can give some sense of what the impact would be, what the likely outcome is, and how the Government propose to protect businesses in the event of no deal in this respect. Consumers currently enjoy the ability to buy services and goods from across the EU. Will the Minister indicate whether the Government have assessed what the impact on them will be in relation to access to services and registration?

    EXITING THE EUROPEAN UNION (CONSUMER PROTECTION) · 2019-04-02 · READ IN HANSARD

  49. I am delighted to welcome the passing of that Bill. I was not quite sure what that intervention was going to be about. I agree that it is an extremely welcome and important piece of legislation that has made progress in the other place. The TUC and the CBI are calling for a plan B. I hope that, as we make further progress in finding alternatives tomorrow, we do that and avoid a no deal. If that is the case, the Minister will not have to invoke these regulations. The revocation of the geo-blocking regulation is not the largest single impact of no deal; it is a small example of the consequences, and I hope it is not needed. I hope that the Minister and all hon. Members agree with that point. I have a couple of questions for the Minister in addition to what I asked her earlier.

    EXITING THE EUROPEAN UNION (CONSUMER PROTECTION) · 2019-04-02 · READ IN HANSARD

  50. The hon. Lady demonstrates that she and I are in agreement about the benefits of geo-blocking and the current arrangements that we have as members of the EU. This regulation is about no-deal preparation, and we will lose those benefits if we leave with no deal. Perhaps she can tell the House what preparations she and her Department have made to ensure that, if we do manage to avoid no deal, there is a mutual recognition agreement that keeps these provisions in place.

    EXITING THE EUROPEAN UNION (CONSUMER PROTECTION) · 2019-04-02 · READ IN HANSARD