“Urgent need” for protocol dialogue reset, says Lords committee
Calls for a fresh attempt at negotiations over the Northern Ireland Protocol have been issued by a House of Lords Committee, after the publication of a new report.
The socio-economic impact of post-Brexit trading arrangements was the subject of the study, and it has found that the Northern Ireland Protocol has created a “feast” for some businesses trading with the Republic and the rest of the UK, and a “famine” for others doing more trading within the UK.
The committee looking into the matter has therefore stressed an urgent need to resolve the issues created by the protocol.
Negotiations had broken down over the UK Government’s proposals to legislate to scrap parts of the protocol without EU consent, with the trading bloc then issuing legal proceedings.
House of Lords peers said the two sides needed to rebuild trust and repair damaged relationships and recommit to finding an agreed resolution.
They said a "mutually agreed solution" was the best outcome as they urged compromise.
"The committee's engagement with businesses trading in and with Northern Ireland has demonstrated that, while much uncertainty remains, the economic impact of the protocol is gradually becoming clearer,” said Lord Jay of Ewelme, who chairs the Protocol on Ireland/Northern Ireland Committee.
"The situation was described to us as 'feast or famine', whereby businesses able to take advantage of the protocol benefit, while those dependent on trade with Great Britain lose out."
In preparing its report, the committee took evidence from the five largest parties in the Northern Ireland Assembly, the UK and Irish governments, business representatives, academics and civic society representatives.
Peers said the sea border had created increased bureaucracy, resulting in added pressures on companies' staff resources, increased costs and longer delivery times.
They said the arrangements had a "disproportionately negative impact" on small to medium sized enterprises (SMEs).
The committee said there remained a concern that businesses in GB will ultimately decided to withdraw from the Northern Ireland market.
Examining those businesses that are benefiting from the protocol, the committee highlighted the dairy and meat processing industries, which are dependent on complex cross-border supply chains on the island of Ireland.
They said those sectors would be damaged if access to the EU single market was lost.
The committee identified several solutions that have been advocated by the business community in Northern Ireland.
Those include a call for "proportionality" in the application of the rules and controls on Irish Sea trade and differential treatment for GB goods whose end destination is Northern Ireland, in comparison to those destined for onward transportation into the EU.
One of the UK's preferred resolutions is the creation of a dual regulatory system whereby businesses could choose to either comply with EU product standards or UK rules.
The committee said there was "widespread concern" among business about the practical feasibility and implications for cross-border supply chains of this proposal.
The report is a follow-up to an introductory report published by the committee 12 months ago.
Lord Jay added: "Business representatives have put forward a number of mitigations and solutions to ease the practical impact of the protocol, and many of these proposals remain unchanged since the Committee's July 2021 introductory report.
"At that time, we stressed the need for dialogue to resolve the issues arising under the protocol in the interests of the people of Northern Ireland. It is a matter of deep regret that, in the intervening twelve months, the state of political dialogue in relation to the protocol has deteriorated further.
"There is an urgent need for a reset of dialogue. We therefore call on the UK and the EU, together with the political parties, and stakeholders in Northern Ireland, and the Irish Government, to make a renewed commitment to work together to put Northern Ireland's interests first, participate together in constructive engagement, rebuild trust and engage in effective relationship-building.
"As one of our witnesses told us, those who negotiated the Belfast/Good Friday Agreement were able to do so because of their ability to appreciate the perspectives of others and willingness to work together and take risks to achieve a common goal despite historic differences. Such a courageous approach is needed now."
Read more:
Tributes from political world for Lord Trimble as funeral details confirmed
Support grows For Belfast To Host 2023 Eurovision Song Contest