Benn pressed on potential ‘collapse’ of motor industry due to incoming EU rules

Northern Ireland Secretary Hilary Benn has been pressed to act with urgency amid concerns of a “potential collapse” in the motoring industry due to post-Brexit arrangements.

DUP MP Gavin Robinson said new EU rules coming around emissions and the sale of cars were going to have a “significant impact” on the car and motor trade in Northern Ireland.

Under the Windsor Framework, the joint EU/UK accord that sets out post-Brexit rules for Northern Ireland, the region continues to follow many EU trade and customs rules to ensure no hardening of the Irish land border.

This has created friction with Northern Ireland’s place in the UK internal market.

Mr Robinson pressed Mr Benn on the car issue when he appeared at a meeting of the Northern Ireland Affairs Committee on Wednesday.

“All of us met in October of last year, and I raised the issue of cars and the motor trade,” he said.

“And one month ago, I received a letter from the Secretary of State indicating that you’re aware that there is emissions requirements that are going to have a significant impact on the ability of car trade within this UK internal market and there’s a suggestion now that you may legislate at some point next year.

“One issue is emissions, the other is on the commercial sale of vehicles, and the benefit in kind associated with that.

“There’s going to be a fundamental collapse of the motor trade, as one example within the UK internal market system, unless these issues are addressed.”

Mr Benn said a remedy is coming and he is conscious of a need for clarity before February 1.

“We will continue to work with the car manufacturers, but we’ve been quite clear with them that the future is going to be they’re going to have to be aligned so there isn’t the problem that you have identified,” he said.

Mr Robinson queried when action will happen, pointing to just “two and a half months of parliamentary time before February 1”, asking: “Will it happen before there is an example of market failure?”

Mr Benn committed to respond to the committee, as Mr Robinson warned “these issues are not going away”.

Earlier in a previous session of the committee, Lord Murphy said there is further work to do to smooth friction caused by the Windsor Framework.

The Labour peer was behind an independent review into the workings of the framework which was published last month.

Giving evidence to the committee, former Northern Ireland Secretary Lord Murphy described an at times “frustrating” process due to the “constraints” he was under, including having just six months and a tight terms of reference.

He emphasised there were “real concerns” which were “not made up for political reasons”, and said the situation is still difficult despite the recommendations his review made.

“At the moment, it is still difficult, despite the recommendations of myself and that committee, which hopefully will help the way in which the Windsor Framework operates and make it more democratic,” he told MPs.

“There is still this essential difference which is burdensome on the body politic, and we need to address that.

“How that is done? It’s not easy, all I know is it has to be done by trying to get agreement, by sitting down and talking about it. That’s beyond my pay grade.”

He was asked by Mr Robinson whether he had met First Minister Michelle O’Neill in terms of his review.

Lord Murphy said no, suggesting diary commitments had prevented this.

He said he talked to Sinn Fein, as well as Alliance, the DUP, UUP and TUV, adding that while it would have been “helpful” to have met Ms O’Neill: “I don’t think it would have necessarily made any difference to the recommendations that I came up with.”

He said they also did not meet with the European Union, despite trying to engage with it.

“In the end, they concluded that this was a matter for the United Kingdom which, of course, it is, but the European Union does have an interest, presumably, in these issues. So that was a bit disappointing as well,” he added.

Mr Benn said while the Government will set out its formal response within the required six months, he praised the review as having reflected “common themes” of other reports.