Source · Select Committees · Public Accounts Committee
Recommendation 28
28
The Northern Ireland Protocol came into operation from 1 January 2021, with grace periods delaying...
Conclusion
The Northern Ireland Protocol came into operation from 1 January 2021, with grace periods delaying the requirements for some checks and preparations.87 Government told us that the requirements of the Protocol had had a significant impact on Northern Ireland trade including causing considerable diversion of trade.88 For example, trade between Northern Ireland and Ireland has increased significantly – goods flowing from Northern Ireland to Ireland having increased by 61% year on year between January and August 2021 and goods from Ireland to Northern Ireland increased by 47% over the same period.89 We also know from examples in our own constituencies that businesses have incurred significant increased costs as well as delays in moving goods because of Protocol requirements.90
Government Response
Not Addressed
HM Government
Not Addressed
8: PAC conclusion: Businesses have faced challenges operating under the Northern Ireland Protocol which need to be resolved. 8: PAC recommendation: Government should continue its efforts to resolve the challenges of the Protocol and ensure that departments are ready to put any negotiated outcome into operation, and that it has prepared for any contingencies which may be required if an agreement cannot be reached between the UK and the EU. Alongside the Treasury Minute, it should write to the Committee to update on the state of negotiations and the operational implications. 8.1 The government agrees with the Committee’s recommendation. Recommendation implemented 8.2 The government has been in intensive talks with the EU since October 2021 to resolve the challenges with the Northern Ireland Protocol, though remain some distance apart in reaching a negotiated outcome. The government continues to work to prepare for whatever outcome is reached. Ministers will continue to update Parliament on progress, including appearances in front of Select Committees where appropriate.