Point of Order
Thursday 22nd June 2017
(7 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text
Jonathan Ashworth (Leicester South) (Lab/Co-op)
On a point of order, Mr Deputy Speaker. You will have seen in your copy of The Guardian newspaper this morning, and indeed yesterday, the leaked reports of a new capped expenditure process for the NHS, revealing plans to cut services, close wards and ration treatments. So far, we have had no response from the Department of Health. Has the Secretary of State for Health given you any indication that he plans to come to the House to update Members and to tell us whether he approved these plans—and if so, when—and why the plans were drawn up in secret, with no consultation with patients, staff or local people?
Mr Deputy Speaker (Mr George Howarth)
As far as I am aware, no such request has been made. The hon. Gentleman knows full well that that is not a point of order. However, he has used the opportunity to draw attention to the point he is seeking to make. I think that that is the end of the matter, and there can be no further point of order on that issue.
Bills Presented
Air Travel Organisers’ Licensing Bill
Presentation and First Reading (Standing Order No. 57)
Secretary Chris Grayling, supported by the Prime Minister, Mr Chancellor of the Exchequer, Secretary Amber Rudd, Mr Secretary Lidington, Secretary Greg Clark and Secretary David Mundell, presented a Bill to amend sections 71, 71A and 84 of the Civil Aviation Act 1982, and for connected purposes.
Bill read the First time; to be read a Second time tomorrow, and to be printed (Bill 1) with explanatory notes (Bill 1-EN).
European Union (Approvals) Bill
Presentation and First Reading (Standing Order No. 57)
Secretary Greg Clark, supported by the Prime Minister, Mr Secretary Lidington, Dr Secretary Fox and Secretary David Davis, presented a Bill to make provision approving for the purposes of section 8 of the European Union Act 2011 draft decisions under Article 352 of the Treaty on the Functioning of the European Union on the participation of the Republic of Albania and the Republic of Serbia in the work of the European Union Agency for Fundamental Rights and on the signing and conclusion of an agreement between the European Union and Canada regarding the application of their competition laws.
Bill read the First time; to be read a Second time tomorrow, and to be printed (Bill 2) with explanatory notes (Bill 2-EN).
European Union (Approvals) Bill
Tuesday 4th July 2017
(7 years, 4 months ago)
Commons ChamberRead Full debate European Union (Approvals) Act 2017 Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)
I beg to move, That the Bill be now read a Second time.
The purpose of the Bill is to approve four draft decisions of the Council of the European Union. All four draft decisions rely on article 352 of the Treaty on the functioning of the European Union, which allows the EU to take action to attain the objectives set out in the EU treaties, for which there is no specific power given. That can be done only with the approval of the European Parliament and the unanimous support of all member states. Before the UK can agree those draft decisions at the Council, Parliament must first give its approval. Section 8 of the European Union Act 2011 provides that a Minister may vote in favour of an article 352 decision only where the draft decision is approved by an Act of Parliament. I am pleased that Members of both Houses will have the opportunity to scrutinise and decide whether to approve such measures.
The UK is leaving the EU. Until that process has concluded, the UK remains a full member of the EU, and all the rights and obligations of EU membership remain in force. That includes exercising the UK’s vote in the Council of the European Union on these four draft decisions. Whether or not those EU decisions involve the UK directly, they may make a difference to the context of the negotiations. While we are leaving the EU and its institutions, we will continue to maintain a resolute friendship and alliance with all the European countries. We have been working in peaceful partnership with EU member states for decades to build a prosperous and stable Europe.
Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con)
Will my hon. Friend give way?
Mr Speaker
Order. It is quite important to be clear to whom the Minister is giving way. The hon. Member for Stone (Sir William Cash) was perfectly convinced that it was he that she had in mind, but the hon. Member for Bridgwater and West Somerset (Mr Liddell-Grainger) looks similarly confident that it was he. Take us out of our misery, Minister.
Margot James
I apologise for the confusion. I was referring to my hon. Friend the Member for Bridgwater and West Somerset (Mr Liddell-Grainger).
Mr Liddell-Grainger
Thank you very much for that clarification, Mr Speaker.
My hon. Friend is fully aware that I am the president of the European Conservatives in the Council of Europe. We have had support from the Government and from colleagues in both Houses, and I am sure she would like to make it clear that the Council of Europe is still an important part of what we do here. It was set up by the British in 1948 under Sir Winston Churchill and continues to play an important part through the European Court of Human Rights. I hope she will confirm that it will continue to play that important role.
Margot James
I commend my hon. Friend for all his work within the Council of Europe, and confirm that that will continue long after we have successfully concluded our Brexit negotiations.
The Prime Minister set out a bold and ambitious vision for the UK. She outlined our key negotiating objectives as we move to establish a comprehensive new partnership with the EU.
Margot James
I will make a little progress and then give way.
That vision for a partnership in the best interests of the United Kingdom means that we will also continue to work with the EU on tackling areas of common interest.
Sir William Cash
I am much encouraged not only by the fact that the Minister is giving way but by what my hon. Friend the Member for Bridgwater and West Somerset (Mr Liddell-Grainger) said. It may be that we are no longer brothers and sisters in Europe, but we are cousins. Therefore to that extent we will continue to seek to maintain good relations with the EU, despite the fact that we are absolutely going to leave.
Margot James
I heartily agree with my hon. Friend that we will continue to foster good relations with our EU friends long after we leave the European Union. Keeping that in mind, we are content that all four decisions that the Bill addresses are reasonable, proportionate and in keeping with our best interests, and will not result in any additional financial burdens on the UK.
As I have said, article 352 decisions must be agreed by all EU member states unanimously. When all member states are in a position to vote on the decision, the European Council will schedule a meeting of the Council of the European Union. If all member states vote to approve the draft decisions at that meeting, the European Parliament will be asked in turn to approve the draft decisions. If it does so, the decisions are adopted into EU law. All member states apart from the UK have agreed the EU-Canada decisions, and all member states except the UK and Germany have agreed the Fundamental Rights Agency decisions. We do not believe that any of the draft decisions should be considered contentious in any way.
Mike Wood (Dudley South) (Con)
It has been suggested that, as we negotiate our exit from the European Union, the United Kingdom should abstain in decisions in the Council. Will the Minister explain what the impact of a British abstention would be on those decisions?
Margot James
I assure my hon. Friend that, were we not to pass the Bill this afternoon, the draft decisions would not proceed. We are still full members of the European Union and therefore our consent is required for the draft decisions to take effect.
Michael Tomlinson (Mid Dorset and North Poole) (Con)
The Minister is being generous with her time. She indicated one other country that has yet to ratify or vote on this—namely, Germany. Does she have, or has she been given, an indication as to when support may come from Germany?
Margot James
Any such comment from me would be speculation, which I intend to avoid, but I point out that Germany, like the United Kingdom, needs the consent of its national Parliament before its Ministers can vote on such draft decisions.
As I said, all member states apart from Germany and ourselves have agreed the Fundamental Rights Agency decisions, and we do not believe that any of the draft decisions are contentious. The Government are committed to being constructive in the UK’s ongoing engagement with the EU. Holding up progress on business that is simple and uncontroversial would undermine that approach and the principle of sincere co-operation that lies behind it. It is therefore clearly in the UK’s interests to approve these draft decisions. Delaying the decisions could have a negative impact on the UK’s exit negotiations with the EU, including discussion on any future framework. There will, of course, be further opportunities to examine more fundamental aspects of the work of the EU in other debates. However, I am sure hon. Members will recognise that, whatever their views on EU exit, it is in the UK’s interests to approve these draft decisions.
Andrew Percy (Brigg and Goole) (Con)
Will the Minister confirm that, as part of our ongoing relationship with the European Union until we achieve our freedom, the provisions of the trade agreement secured with Canada will be implemented fully in the United Kingdom, and that we will continue to play a proactive role within the EU and beyond in encouraging further free trade with Canada?
Margot James
I welcome my hon. Friend’s intervention. I remember his excellent work when he was a trade representative to Canada and I assure him that the Comprehensive Economic and Trade Agreement negotiations, completed between the EU and Canada, will cover the United Kingdom for as long as we are members of the EU. After that point, it will be up to us to decide the terms of any future trading relationship with Canada, bearing in mind the—I won’t go any further on that.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
Will the Minister give way?
Margot James
I will make a bit of progress. I am concluding my remarks on Canada and trade. I will give way to my right hon. Friend the Member for Wokingham (John Redwood) when I have made further progress.
It is therefore clearly in the UK’s interests to approve the draft decisions. Delaying the decisions could have a negative impact on the UK’s exit negotiations, including discussions on any future framework. There will, of course, be further opportunities to examine more fundamental aspects.
John Redwood
Surely the Minister would confirm that the Canadian trade agreement, along with all the others the EU will have in place when we leave, will novate to us, assuming that both we and Canada wish it to do so? That will clearly be the case, so it will carry on.
Margot James
I accept the first part of what my right hon. Friend says, but I do not wish to predict what the UK and Canada may find it important to discuss in their trade relationship in the years to come.
Margot James
I will make a bit more progress and then I will give way.
The first two decisions will enable two countries, the Republic of Albania and the Republic of Serbia, to be granted observer status in the EU’s Fundamental Rights Agency. Before I go any further on that point, I will give way to the hon. Gentleman.
Jonathan Edwards
I am grateful to the Minister for giving way. I was not going to raise a point on CETA this afternoon, but as it has been raised by her colleagues I just wondered what estimate the UK Government have given to renegotiating a CETA-type Canada deal following Brexit.
Margot James
I thank the hon. Gentleman for his intervention, but I remind him of the scope of the Bill. It does not include much detailed discussion about our future trade relationship with Canada. For the avoidance of doubt, the Canadian decisions are about competition law, not trade.
The Fundamental Rights Agency was set up to support EU institutions and EU member states by improving the knowledge and awareness of fundamental rights issues in the EU, with a view to ensuring respect for fundamental rights. The agency does this through the collection and analysis of information and data. It can also formulate opinions on specific topics, either on its own initiative or at the request of EU institutions. It also has a role in communicating and raising awareness of fundamental rights, but it cannot hear individual complaints. EU accession candidate countries can be given observer status at the agency. This allows the agency to collect and analyse fundamental rights data from those countries, but it does not allow them the right to vote in decisions as part of the agency’s management board.
John Howell (Henley) (Con)
How does the agency differ from the Council of Europe? The Council of Europe looks after democracy and the rule of law within Europe, and it carries out exactly the same activities as the agency.
Margot James
The goal of the agency is to provide expertise on fundamental rights to EU institutions, member states and countries seeking accession when implementing EU law. The specific tasks of the agency are: to analyse and share information on fundamental rights in the European Union; to carry out scientific research and surveys on fundamental rights issues; to formulate opinions on specific topics, either on its own initiative or as requested by EU institutions; and to increase awareness on fundamental rights in the EU.
Albania was granted EU candidate status in June 2014. The UK supported the awarding of EU candidate status on the condition that Albania redoubled its reform efforts, with particular focus on justice and home affairs, especially tackling organised crime, corruption and illegal migration. The UK welcomed Albania’s progress in adopting legislation towards a judicial reform package in July 2016. Albania must now fully implement the judicial reform package as soon as possible, so that it can underpin other reforms.
Serbia was granted EU candidate status in 2012 and accession negotiations were launched in January 2014, with the first four negotiating chapters opened during 2016. The UK continues to support Serbia on its reform path, including through funding projects in Serbia.
James Cartlidge (South Suffolk) (Con)
Will the Minister comment on whether Serbia’s membership of the agency would have any impact on the pursuit of war crimes in Serbia, as part of its effort to increase human rights?
Margot James
I cannot comment specifically on the likely impact on the treatment of war crimes in Serbia, a subject about which the Foreign Office is extremely concerned—as, I presume, is my hon. Friend—but I think it can only be a mark of progress for Serbia to be admitted in the way that this decision enables it to be.
Graham Stringer (Blackley and Broughton) (Lab)
The Minister says that this is a mark of progress, but I cannot accept that. This sounds like motherhood-and-apple-pie Eurospeak. Exactly the same words were used during the accession of Croatia, but has Croatia handed over its war criminals and does it have the rule of law yet? Both were promised. It has one of the longest borders in the EU, which is used for sex trafficking and human trafficking. We heard exactly the same then, but there have been no improvements. Why does the Minister believe there will be improvements with Albania and Serbia?
Margot James
To correct the hon. Gentleman, I do not think I said that I thought there would be improvements; I said that I thought it would be a mark of progress. I was trying to limit my enthusiasm to that degree, mindful of what he says about Croatia. However, I would say that it is early days and we can only go down the path of progress. The UK continues to support Serbia on its reform path, including through funding projects in Serbia.
Serbia has more work to do on anti-discrimination policies, improving the situation for vulnerable people and ensuring freedom of expression. Observer status at the Fundamental Rights Agency should help Albania and Serbia to reform in the areas we are discussing. Albania and Serbia should also be allowed to benefit from instances of good practice and evidence from other EU member states in relation to human rights. The Government are therefore satisfied of the need to support these two decisions.
The third and fourth decisions are necessary to implement a co-operation agreement between the EU and Canada on competition enforcement. The decisions will allow the agreement to be signed and allow conclusion of the agreement after it has been approved by the European Parliament. This competition co-operation agreement will replace an existing agreement that has been in place since 1999. It replicates and builds on the provisions in the earlier agreement by allowing the European Commission and the Canadian Competition Bureau to exchange evidence obtained during investigations, including confidential information and personal data.
The existing co-operation agreement with Canada dates from June 1999, and at that time the exchange of evidence between the parties was not regarded as needed. In the meantime, the bilateral co-operation between the European Commission and the Canadian Competition Bureau has become more frequent and deeper in terms of substance.
Jonathan Edwards
The Government have already told the Exiting the European Union Committee, on which I served during the last Parliament, that following our withdrawal from the EU we will no longer benefit from, for instance, the information exchange agreements between our competition regulator and the Canadian Competition Bureau. That renders much of the Bill rather pointless, does it not? Can the Minister explain how pulling us out of global deals such as the one that we are discussing will be helpful?
Margot James
I have explained that the purpose of the decision is primarily to support our role as a continuing member of the EU until the negotiations are complete, in two years’ time. Until then we will be covered by it, but after that date we shall have to see what has been agreed during the negotiations. The existing competition agreement with Canada does not allow the sharing of confidential information, but the new one does. I shall return to that point in a few minutes.
The absence of the possibility of exchanging information with the Canadian Competition Bureau is regarded as a major impediment to effective co-operation. The proposed changes in the existing agreement will allow the European Commission and the Competition Bureau to exchange evidence that both sides have obtained in their investigations. That will be particularly useful in all cases in which the alleged anti-competitive behaviour affects transatlantic or world markets. Many worldwide or transatlantic cartels include Canada and, via Canada, the Commission will gain a good opportunity to have access to additional information concerning those cartels.
Co-operation with third-country competition authorities is now standard practice in international competition investigations. In addition to the agreement with Canada, the EU has concluded dedicated co-operation agreements with the United States, Japan, Korea and Switzerland.
I now return to the intervention by the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards). I omitted to say that even after the Brexit negotiations have been completed, the competition agreement with Canada will continue to apply to British companies if they are trading with the single market of the European Union.
The most advanced agreement is the one with Switzerland, which already contains provisions on the exchange of evidence, and the proposed update would bring the agreement with Canada to the same level as the one concluded with Switzerland.
I am sure Members will agree that the ability to share information is increasingly important for effective and efficient international competition enforcement. Access to information from other jurisdictions can be important to the reaching of a robust enforcement decision. Co-operation and information sharing between jurisdictions can help to ensure that enforcement bodies do not reach different decisions based on different sets of information.
The agreement contains general safeguards for the transfer of information, and additional safeguards for the transfer of personal data. Personal data can be shared only with the express written consent of the person or company to whom they relate. In the absence of consent, such data can be shared only when both competition authorities are investigating the same related conduct or transaction. Furthermore, the transfer of the data will be subject to independent oversight. The agreement also contains safeguards for information provided by a company under the EU cartel immunity or leniency programme. Such information cannot be shared without the express written consent of the individual or company that provided it.
As I have noted, the decisions will have no financial implications for the UK. I confirm that I do not consider that any of the Bill’s provisions interfere with the rights set out in the European convention on human rights, so no issues arise in connection with its compatibility with those rights.
John Redwood
I wonder why there is no cost. Surely, if there is to be an added layer of complexity in the sharing of information—which may be a good thing—there must be a cost in respect of the time of the officials involved.
Margot James
I am assured that no costs are associated with these decisions, other than those that arise in the normal course of Government business.
It is intended that the Bill will come into force on the day of Royal Assent. For the reasons that I have outlined, I commend it to the House.
Bill Esterson (Sefton Central) (Lab)
The Bill was included in the Queen’s Speech. The background notes refer to helping to grant Serbia and Albania observer status at the EU’s Fundamental Rights Agency, and an agreement for enhanced co-operation between competition regulators in the EU and Canada. However, I will not be the only one who was somewhat surprised that it was chosen as the second Bill to be given a Second Reading in the new Parliament. Why was it given such a high priority, given what might have happened, and given what was, at one point, in the Conservative party manifesto?
We could have suggested some alternatives. For instance, the Government could have addressed the pay cap. Members of the Cabinet and members of the Conservative party are now doing that, and quite an argument seems to be going on, but we could have been debating the subject in the House today.
James Cartlidge
The hon. Gentleman will know that the civil war in Yugoslavia was an horrific, scarring experience for our whole continent. We should not belittle it by underestimating the importance of those nations’ reaching our level in terms of human rights and so on.
Bill Esterson
Of course the hon. Gentleman is absolutely right, which was why it was right for the Bill to be in the Queen’s Speech. I was merely questioning why it had been given such prominence. Given that it consists of only two lines, why was something weightier not presented first?
I have mentioned the pay cap, the turmoil in the Conservative party, and the agonising over whether public servants should be given a pay rise. There is also the debate about tuition fees, the debate about whether there should be more police and firefighters—
Michael Tomlinson
I am grateful to the hon. Gentleman for giving way, but I fear that he may be being a little bit churlish. He has the opportunity now to set out the Labour party’s position in relation to the Bill. He is, of course entitled to go on speculating about what might or could not or should have been debated at this time—as long as you allow him to do so, Mr Speaker—but he has the opportunity to debate this subject now. What does he have to say about it?
Mr Speaker
Order. I am grateful to the hon. Gentleman for his inquiry. I could not know what the hon. Member for Sefton Central (Bill Esterson) would say until he had said it, but now that he has said it, I can tell him that he should not have said it.
It would be advisable now for the hon. Gentleman to return to the subject of the European Union (Approvals) Bill. I very gently remind the hon. Gentleman, who is quite a seasoned parliamentarian, that it consists of two clauses, of which—and I say this not least for the benefit of those who are attending to our proceedings elsewhere—the second is “Extent, commencement and short title”. The only substantive clause is clause 1. The question of the pay cap is a matter of enormous interest, but it is wholly irrelevant to the question of clause 1 and consideration of the Republic of Albania, the Republic of Serbia, the European Union Agency for Fundamental Rights, and the relationship between the European Union and the Government of Canada in respect of competition law.
Bill Esterson
Thank you very much, Mr Speaker. You may even have stolen parts of my speech.
Anyway, we have the European Union (Approvals) Bill, with its four draft decisions and two clauses, the second of which—as you pointed out, Mr Speaker—consists of the name of the Bill. Members will be pleased to learn that Labour will not oppose the Bill at this stage. We on the Labour Benches are committed to ensuring that the UK fulfils its responsibilities as a member state of the EU, not least in the very important matter of the progress made by the former member states of Yugoslavia. We will do so until the time of withdrawal from the EU; we will continue to scrutinise EU matters that come before Parliament.
This Bill is the enactment of provisions under the European Union Act 2011 and addresses draft decisions of the Council of the European Union. The first of those relates to the participation of the republics of Albania and Serbia as observers in the European Union Agency for Fundamental Rights, and the second to the signing and conclusion of an agreement between the EU and the Government of Canada regarding the application of their competition laws, which includes the exchange of information between the EU and the Canadian Competition Bureau.
The European Union Agency for Fundamental Rights replaced the European Monitoring Centre on Racism and Xenophobia in 2007. As set out on the Europa website:
“It advises EU institutions and national Governments on fundamental rights, particularly in the areas of: discrimination; access to justice; racism and xenophobia; data protection; victims’ rights; children’s rights.”
The agency’s areas of work have been determined through a five-year framework. The main priority areas include the fight against racism, xenophobia and related intolerance.
EU candidate countries can participate in the European Union Agency for Fundamental Rights as observers. This Bill approves two draft decisions on the participation of the Republic of Albania and the Republic of Serbia as observers in the work of the agency. The decision will not in itself confer observer status on Albania and Serbia, but it will establish that the Stabilisation and Association Councils for Albania and Serbia can determine the conditions of the two countries becoming observers.
As the House of Commons Library explains, under the draft Council decisions, Albania and Serbia would both appoint an observer and alternate observer in the work of the agency’s management board, on an equal footing with the member and alternate members appointed by EU member states, but without a right to vote. They would also participate in initiatives undertaken by the agency and make a financial contribution to it.
In an explanatory memorandum to the European Scrutiny Committee on 22 March 2016, the hon. Member for Esher and Walton (Dominic Raab), who was then and is now a Ministry of Justice Minister, said that the Government support Serbia and Albania becoming observers in the European Union Agency for Fundamental Rights, agreeing that it would assist their accession to the EU which the UK also supports subject to “firm but fair conditionality”.
Albania and Serbia will both make a contribution to the EU budget in order to participate, ranging from €160,000 to €183,000 a year. The draft decisions have been cleared by the European Scrutiny Committee and the Lords European Union Select Committee. The Minister said that this is an opportunity for us to support the progress being made on human rights in the two countries in question, and I completely agree on that.
Mr Liddell-Grainger
As the hon. Gentleman knows, Labour and Conservative Members and other Members of this House work through the Council of Europe with Albania and the Balkan states to make sure they are monitored and understood. An enormous amount of work is done by this place with parliamentarians across Europe to continue the efforts the hon. Gentleman is talking about. I commend the hon. Gentleman and our Front-Bench team, and I know he will praise the fact that there are MPs here doing the work already.
Bill Esterson
The hon. Gentleman is absolutely right to make that point, and I thank him for it; I join him in praising colleagues across the House for their work on these important matters.
However, I have a particular question for the Minister, which also came up in some of the interventions: what would be the nature of our involvement in the agency both immediately after Brexit in handling transitional arrangements and in the longer term? A similar question would apply to a number of other agencies. Perhaps the Minister can address that in her concluding remarks.
There is already an agreement between the EU and Canada on competition. This decision extends the powers so that both sides will be able to exchange evidence collected in the course of their investigations.
Paul Scully (Sutton and Cheam) (Con)
I would like the hon. Gentleman to repeat his question in a little more detail, as my understanding of the European Union Agency for Fundamental Rights is that it is there to help to interpret and work on Community law in its member states, so presumably if we left the EU it would no longer be relevant in that context to the UK itself.
Bill Esterson
I had moved on to the second part, but I will come back to the hon. Gentleman’s question. We need to know what our relationship will be, given the important work—as the hon. Member for Bridgwater and West Somerset (Mr Liddell-Grainger) rightly described it—carried out by Members in this House over many years, which has been extremely important in making progress in the countries named in this Bill and others. It is important that we have a sense from the Government as to how we will stay involved in the work of such agencies. I am sure all Members will agree that this country still has a very important role to play whether or not we are in the EU.
Alex Chalk (Cheltenham) (Con)
Does the hon. Gentleman agree that a key bulwark of human rights in this country, and indeed across Europe, is the European convention on human rights, which is not affected by this Bill at all? That has to remain the key and most important element.
Bill Esterson
I completely agree.
The EU Commission states that there is a danger that the absence of a power to exchange information with the Canadian Competition Bureau will become an impediment as co-operation between the two parties increases; the Minister made that point. Co-operation with other competition authorities is now standard practice in international competition investigations. The EU has co-operation agreements with the USA, Japan, South Korea and Switzerland. The most advanced is the one with Switzerland; it is very similar to the Canada agreement and has proved, as the Minister said, uncontroversial. Many worldwide or transatlantic cartels include Canada in their operations, and the Canadian commission will get a good opportunity via this agreement to gain additional information concerning these cartels and whether practice is anti-competitive or not.
Ian Paisley (North Antrim) (DUP)
Does the hon. Gentleman agree that this Bill serves as an interesting template for taking forward competitive activities post-Brexit? If we can get this right, it might serve to enable other members of the Commonwealth to look at how we can pattern a similar relationship.
Bill Esterson
That is a good point, and I will come later to further questions about arrangements after we leave the EU, so that we can continue to benefit from the sort of arrangements set out in the Bill. We certainly need to make sure arrangements are in place to address anti-competitive practices in this country and involving our interests across the world. The Minister might want to address that very good point in her concluding remarks.
Ian Paisley
Does the hon. Gentleman agree that the question of establishing such a pattern impacts greatly on our nearest neighbour, the Republic of Ireland? If we can get the relationship right between ourselves and Canada, it might help in getting it right with the Republic of Ireland, which will help us to bolster our trade.
Bill Esterson
I think we are in danger of wandering away from the subject—[Interruption.] I have no idea why Conservative Members find that funny, but there we are. Obviously, the hon. Gentleman and the Democratic Unionist party are particularly exercised by that matter, among others, but I dare say that this is something that the Minister can pick up on, perhaps on another day.
Competition delivers benefits to consumers, to businesses and to society as a whole. Competition policy therefore contributes to boosting jobs, growth and investment. The Commission pursues this objective by enforcing competition rules, sanctioning breaches and promoting a competition culture internationally. The proposed agreement will improve the administrative co-operation between the European Commission and the Canadian Competition Bureau. Ultimately, consumers in the European Union and in Canada benefit from competition policy and from the sanctions that contribute to a stronger deterrence of anti-competitive behaviour. More effective competition enforcement results in more open and competitive markets in which companies can compete more freely, enabling them to generate wealth and to create jobs. It also gives consumers a better choice of products at lower prices.
This new agreement is substantively the same as the existing one, which has been in place since June 1999. This agreement just adds new provisions on the exchange of information. Even after we have left the European Union, UK companies operating in the EU will still be subject to the jurisdiction of the European Commission in anti-trust and merger investigations, as all non-EU countries are. Information on UK companies will still be transferable after Brexit. After Brexit, the European Commission will still share information about UK companies with Canada but will not be bound to share the information about the UK it receives from Canada with the UK. I would like the Minister to address that point.
This agreement relates to administrative co-operation between the European Commission and the Canadian Competition Bureau, so public consultation and an impact assessment were not considered necessary by the Government, and, as the Minister has now said on a number of occasions, she does not think that there will be financial implications. The Government have noted in the explanatory memorandum that this new agreement will have no impact on UK law and no financial implications.
The European Scrutiny Committee did not at first clear the proposal. The Chair of the Committee, the hon. Member for Stone (Sir William Cash), who I dare say will make a contribution to the debate, requested further information about whether and in what way the United Kingdom could participate in the agreement following withdrawal. The Minister responded to the Committee on 24 October, stating that
“the Government will ensure that the UK is in the strongest possible position to cooperate on competition matters with our international partners...There are a number of options for securing the means for international cooperation…As the form of any cooperation agreement will depend on our negotiation with the EU and negotiations with other countries such as Canada it is too early to say what exact form international cooperation will take.”
That raises a number of questions about transitional arrangements in the longer term. In response to that letter, the Committee subsequently cleared the documents.
That brings us to the question of what arrangements will exist after we leave the EU. The Minister referred in her letter to seeking to extend the current arrangements. For how long does she think that will be necessary? What guarantee is there that it would be possible to extend them? UK companies operating in the EU will still be covered by this agreement. The difference will be that, while the European Commission will continue to share information with Canada about UK companies, that information will not be shared with the UK unless a further agreement is reached. She said in her letter that any co-operation agreement would depend on negotiation. How long does she think those negotiations are likely to take? What will she be seeking to achieve in them? We have now reached the point at which Ministers need to start answering the questions about transitional and longer-term arrangements for these and many other matters.
There is no doubt that competition is vital to our economy, to the success of our businesses and to the prosperity of the people of our country. Encouraging healthy competition is vital. The role of national Governments, and of international co-operation, is to create a fair market, not just a free market. It is also to avoid anti-competitive practices, including the creation of cartels through mergers and acquisitions which distort the market; the undercutting and exploitation of workers and smaller businesses; the use of zero-hours contracts where workers have little choice; the treatment of smaller businesses by banks that will only fund those with liquid assets; and the delays in the payment of invoices by larger firms. Those are all examples of anti-competitive and exploitative practices in which Governments—nationally and internationally—should find ways of intervening to set a level playing field. Governments should be a partner to business and to the workforce. They should encourage those wishing to start and grow a business. They should be investing, and they should have the right strategy for infrastructure and skills. They should have an industrial strategy. Underpinning all that should be the right approach to competition, which is what this part of the Bill is all about.
We need answers to the questions about what happens after we leave the EU and about what transitional arrangements will be in place. The nature of the Minister’s comments in her letter to the European Scrutiny Committee show just how complex these questions are, and it is time we started to get some answers.
Michael Tomlinson
I am following the shadow Minister’s speech closely. He has mentioned the European Scrutiny Committee several times. Will he join me in calling for the Committee to be reconstituted as soon as possible? His speech has demonstrated the important work it does, and it needs to get going straight away.
Bill Esterson
I do not know whether the hon. Gentleman was in the Chamber before this debate started, when my hon. Friend the Member for Bootle (Peter Dowd) made an impassioned plea to you, Mr Speaker, for the Select Committees to be reconstituted as soon as possible. Of course I agree with the hon. Gentleman.
Labour accepts the referendum result and recognises that Britain is leaving the European Union, but we need to negotiate for strong transitional arrangements to ensure that there is no cliff edge for the economy. We also need to give much greater priority to retaining the benefits of the single market and the customs union than we have seen from the Government so far. We should not accept any watering down of workers’ rights and environmental standards as a result of Brexit. We will seek significant improvements to the repeal Bill to ensure that there is proper oversight of the use of new powers and no drop in EU rights and protections.
In that context, the discussions that we are having this afternoon are really important. We on the Labour Benches will seek—as, I believe, will the Minister—a strong, collaborative new relationship with the EU, not as a member but as a partner. We will seek to remain a member of common European agencies that benefit the UK, such as Europol, Eurojust and the Erasmus scheme. Perhaps the arrangements we are discussing today can be added to that list. We have to get this right, but we are not in a strong position as we enter the negotiations. I want to see the Prime Minister change her approach. She must drop the idea that “no deal” is a viable option. She must also put a much stronger emphasis on jobs, on the economy and on retaining the benefits of the single market and the customs union, and she must bring Parliament back into the Brexit process, as we have seen happening today. The fact that we are debating this Bill shows that we must retain the benefits of the co-operation and relationships that we currently have with the EU.
I said at the start that this was a Bill with only four draft decisions, but it is indicative of what is to come as we address the challenges of Brexit. As far as this Bill goes, the Minister really does need to answer the questions about transitional arrangements and negotiations so that we can continue to share information to the benefit of our economy and of the people of this country.
Sir William Cash (Stone) (Con)
As has been mentioned, the European Scrutiny Committee, of which I was Chairman for six years, has actually cleared these decisions. We did have some reservations about one aspect, however: we wanted to know how all this would work out during the Brexit negotiations and after we have left the European Union.
Basically, there is a necessity for this Bill because, as the Minister pointed out, although we are leaving the EU, under sections 2 and 3 of the European Communities Act 1972 we are still within the framework of the requirements to comply with EU rights and obligations until Brexit takes effect. There are some who hope that all this will somehow be kicked into the long grass, that we will have arrangements that take us into a world of never-never land, and that it will all disappear. There are some in the House of Lords who certainly take that view and there may even be some in the House of Commons. I was extremely glad to note, however, that on certain matters, in particular the single market and the customs union, the decision that was taken on the Queen’s Speech made it clear—subsequent events seem to have confirmed it—that the Opposition have actually begun to become extremely realistic about the single market and all that goes with it. These sort of arrangements are implicit in the Brexit negotiations and in the outcome of Brexit.
The Bill has to provide parliamentary approval of the decisions on Albania and Serbia, and the European Scrutiny Committee had no reservation or concern after we heard from the relevant Minister—the same Minister who wrote me the letter last year. The important issue here is that Albania and Serbia are not by definition countries that are likely to become candidates for EU membership during the period of our negotiation process and exit. Mr Juncker himself said that he does not think there will be any enlargement until after we have left the EU, so such decisions will not impinge upon us. We do not have to take a specific position on the candidatures of Albania and Serbia.
The Bill’s briefing paper contains many references to the Fundamental Rights Agency, and one thing that has not yet been mentioned in this debate is the charter of fundamental rights, which is embedded in the Lisbon treaty arrangements and is a matter of law. I strongly resisted our being drawn into the charter, and we held a European Scrutiny Committee inquiry into how Lord Goldsmith and his negotiations had failed so dramatically. We thought that we were not going to be a member of the charter, but we ended up within that framework. The Fundamental Rights Agency, which promotes dialogue with civil society in order to raise public awareness of fundamental rights, things which would be part and parcel of the functions that would be carried through by virtue of the Bill in respect of Serbia and Albania, contains something of a vacuum because we will not be part of the charter of fundamental rights after we have left the EU, but we are part of it for the time being, so to that extent there is a problem. I will not invite the Minister to enlarge on that—I hope she is glad about that—but I want to put it on the record that the charter of fundamental rights should never have applied to us in the first place. It was a botched job by the then Labour Government, and we are now saddled with the fact that we are in it. Fortunately, however, we will be coming out of it as a result of Brexit.
Michael Tomlinson
I declare an interest as someone who served on that Committee in the previous Parliament. Has my hon. Friend received any assurances about when the Committee will be reconstituted? Does he agree that that is a matter of urgency?
Sir William Cash
I am glad to respond, because I have been very much engaged on that subject. In fact, one of the last things I did on the day of Dissolution was to write to the Chief Whip asking him to ensure that our Committee was reconstituted immediately after the election, because in 2015 the whole process went on until November, by which time we had a monument of documents. In the meantime, many things are being decided in the European institutions, many of which are directly relevant to the Brexit negotiations. It is therefore incredibly important that this House has an opportunity to assess the sorts of things that are being decided, subject to the Committee clearing the documents.
As hon. Members may know, if the European Scrutiny Committee imposes scrutiny reserve on a document because we think it is so important that it has to be debated, the Council of Ministers cannot conclude its consideration of those matters, and the Government cannot make a decision to carry the matter through, unless and until that debate has taken place. When we have a pile of documents—I understand there are some 200 documents in the pipeline—and a pile of explanatory memoranda explaining the Government’s position on them, the position the Government adopt on the documents in the negotiations will be highly interesting.
My hon. Friend the Member for Mid Dorset and North Poole rightly raises the question of getting on with the job, and I am given to understand, without committing anybody to anything, that the Government are taking steps to accelerate the process because it is so important. Of course, we will discuss the other Select Committees later this afternoon. Their schedules and the allocation of chairmanships to each party will be decided, and I understand that that has been discussed through the usual channels, so I do not expect it to be terribly controversial, but for all the reasons I have set out, it is important for the European Scrutiny Committee to get going.
I entirely endorse what the Minister said about the Canada agreement, which again was discussed by the European Scrutiny Committee. We agreed that we would let it go ahead, but the explanatory notes on the Bill indicate some implications for United Kingdom companies operating in the EU after Brexit, which is the bit we should be most concerned about at the moment:
“Following the UK’s exit from the European Union, UK companies operating in the EU will still be subject to the jurisdiction of the European Commission in antitrust investigations and, where the thresholds are met, in merger investigations in the same way as for other non-EU companies operating in the EU. Information relating to UK companies based in the EU would therefore still be transferable under the new Agreement.”
That is becoming a bit of a hot potato. I made a representation to the Prime Minister the other day on the question of citizens’ rights, and we hear a lot about the question of City regulation, and here it is coming up again.
Some people are making too much of it. An enormous amount is emerging from the commentariat and on programmes we sometimes find ourselves listening to but that we perhaps ought to switch off. They are trying to make out that, somehow or other, the real problem is that we have to stay in the European Court of Justice, which is complete rubbish. We do not have to stay in the European Court of Justice and, far more than that, we are not going to stay in the European Court of Justice, because we will be repealing sections 2 and 3 of the European Communities Act 1972. The Labour party has made it clear that we will not stay in the single market or the customs union, which raises some of the biggest issues relating to the ECJ. Frankly, as I told the House the other day, we have to come up with a sensible arrangement that does not prejudice the regaining of our judicial sovereignty. At the same time, we must agree some form of tribunal that enables us, through a parallel bilateral “source of law” agreement, to have a decision-making process that does not and cannot keep us in the European Court of Justice. That is not a matter of opinion or of wishful thinking; staying in the ECJ is fantasy land.
Vicky Ford (Chelmsford) (Con)
At the moment, under our current competition agreement with the EU, a British company can seek direct redress if it believes a European company is anti-competitive. Under the agreement between the EU, the UK and Canada, although we will have competition co-operation if we pass the Bill, there will be no direct redress for a British company that is concerned about the anti-competitive activities of a Canadian company. Therefore, although I completely understand my hon. Friend’s concerns about the European Court of Justice, we want enforcement that means British companies can seek direct redress from our largest trading partner, when needed. Does he think that the European economic area or the European Free Trade Association court models might be of interest?
Sir William Cash
I am not at all convinced by the EEA route. I do not want to get into all that now, except to say that the EEA involves the EU.
Sir William Cash
EFTA is a different story, and I specifically raised it with the Prime Minister only a few days ago because I have been having fruitful discussions with the president of the EFTA court and his advisers. He has been over here to talk to the Foreign Office, to me as the then Chair of the European Scrutiny Committee and to others.
It is an interesting proposition. I am not saying that we will do exactly the same in resolving those jurisdictional questions as happens at the moment with EFTA, but the great advantage of the EFTA model is that it is completely independent of the EU yet follows the decisions of the European Court of Justice for the most part, although not always—that is important. I am glad that my hon. Friend the Member for Chelmsford (Vicky Ford) noticed that, because not many people have. It is important that we have a constructive discussion about the best way of being cousins rather than brothers and sisters, as I said in my earlier intervention. We all have a mutual interest in ensuring that we have a proper jurisdictional answer to these questions.
I will not attempt to design a model here and now, but it might be something along the lines of a retired European Court of Justice judge—I do not want to be held to this, but it is a thought—together with a retired member of our Supreme Court and an independent judge, so that we get the benefit of listening to arguments that bridge the two jurisdictions. We will retain our sovereignty, judicial and legislative, but we are interested, for the sake of the companies to which my hon. Friend referred, in ensuring that we give them the answers they need. Her general point raises an important practical question, and we need to ensure that we end up with something that works, without prejudicing our legislative and judicial sovereignty, while providing an answer to the people in our constituencies and throughout the United Kingdom whom we serve as Members of Parliament.
Mr Deputy Speaker, many congratulations to you on the fact that I am seeing you here yet again. As you may have noticed, I am still here as well. So for practical purposes, let me draw my speech to a conclusion by saying that I do not in any way want to interfere with the process before us, because it is not going to affect this country in the longer term, and it is important that we act sensibly and responsibly to make sure that we do not rock the boat in the meantime.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
As this is also my first opportunity to do this, may I congratulate you and welcome you back to the Chair, Mr Deputy Speaker?
I am grateful to the Minister for setting out the provisions in the Bill. On the first two draft decisions, we welcome the opportunity to give our support to the participation of Albania and Serbia as observers in the work of the European Union Agency for Fundamental Rights. As the agency says:
“Fundamental rights set out minimum standards to ensure that a person is treated with dignity. Whether this is the right to be free from discrimination on the basis of your age, disability or ethnic background, the right to the protection of your personal data, or the right to get access to justice, these rights should all be respected, promoted and protected.”
Those are shared values, and Scottish National party Members and the Scottish Government hold them dear. We are demonstrating that in Scotland by using our limited new powers to build a social security system with dignity at its heart. We can contrast that with the approach of the UK Government, who are rolling out a dysfunctional universal credit regime which is punishing the disabled, those on low wages and the vulnerable.
On Serbia and Albania, although there is much work to be done, this is an important step for both countries in their journey to improving the lives of their citizens. They deserve credit for their approach, and we know that joining the EU is also the will of both nations. Serbia was formally announced as an EU candidate in 2012 and has already opened 10 of the 35 chapters of accession. Last week, Serbia’s newly elected Prime Minister, Ana Brnabić, talked of a
“strategic orientation toward the European Union, which represents the values that we stand for.”
She continued:
“That is the place where Serbia should be”.
Similarly, elections in Albania this week showed, once again, a renewed commitment to the EU. Albania’s two largest parties are both pro-EU, and a national survey has shown that more than 95% of its citizens support EU membership. In their commitment to EU accession, Serbia and Albania have shown a willingness and commitment to improving the fundamental rights of their citizens and to restoring peace. They see the EU as a vehicle for peace across Europe. As his name has been mentioned today, it is worth recalling Jean-Claude Juncker’s tribute to the recently deceased former German Chancellor, Helmut Kohl. Mr Juncker said:
“It was on the day we decided to press ahead with EU enlargement to the east and south east. In a voice choked with tears he said it was one of the most beautiful days of his life. That he, as German Chancellor, was able to bring Europe back together after all the harm that Germany had caused.”
Juncker said of his friend:
“He wept. Nobody was embarrassed by his tears. That was Europe at its best.”
That we are here today playing our, albeit small, part in improving the rights of people across the Western Balkans is a great thing.
What a shame then that this UK Government are hell-bent on pulling Scotland out of the very partnership that delivers those protections; and this despite people in every Scottish local authority area voting to remain in the EU. It is also not lost on us that this Bill comes only days after the fundamental rights of people, in particular those of the LGBT community in Northern Ireland, are now being questioned—all because of a back-door deal with the Democratic Unionist party to keep this Tory Government in power.
Alex Chalk
Does the hon. Gentleman agree that when it comes to protecting the human rights of people in the United Kingdom, be that in England, Scotland or Northern Ireland, our membership of the convention is by far the most important thing in asserting those rights, and that is what we need to keep in mind?
Drew Hendry
The hon. Gentleman makes a good point about the membership of the convention, but it is also vital that we take every opportunity to make sure we are protecting the rights of citizens.
Turning to the third and fourth draft decisions, SNP Members welcome further formalisation of the working relationship between Canada and the EU in regard to competition laws. These draft decisions, in particular, serve as a reminder of the good business and trading opportunities the EU provides for the UK. A bad Brexit deal, or the fatuous, ludicrous idea of no deal, will make it more expensive and difficult for our businesses to trade with the EU—a market eight times the size of the UK market.
The people in Scotland stand to lose much, with independent estimates concluding that a hard Brexit could cost Scotland up to 80,000 jobs within a decade and that after 10 years average wages could fall by £2,000 a year per head.
Ian Paisley
For the record, will the hon. Gentleman confirm that Scotland’s largest trading partner is the rest of the United Kingdom?
Drew Hendry
I am happy to confirm that, but I am also happy to point out how important Scotland is to the rest of the UK as a trading partner.
This treaty shows there are many other potential costs to a hard Brexit; for example, in respect of the protection of the rights of citizens who otherwise may also find that they face additional burdens. As the Minister mentioned, the explanatory notes state that the Bill carries no cost to the Government, but that does not mean that subsequently losing these protections will mean no cost to our citizens and businesses. Areas of EU competition regulation include anti-trust, cartel, merger and state aid measures, and the sectors covered are agriculture and food; consumer goods; energy and environment; financial services; information and communication technologies; media; motor vehicles; pharmaceuticals; postal services; professional services; sports; telecommunications; and transport.
This is yet another example—and we have heard no update today—of where we have no clarity from the UK Government over Brexit proposals on something fundamental to UK companies operating in the EU and, ultimately and importantly, to consumers and our citizens. In contrast, this agreement will mean that information obtained during competition enforcement investigations may be discussed and transferred between the European Commission and the Canadian Competition Bureau. It is intended to increase the ability of both organisations to conclude competition enforcement investigations efficiently, and should be welcomed.
We are advised that following the UK’s exit from the European Union, UK companies operating in the EU will still be subject to the jurisdiction of the European Commission in anti-trust investigations. That raises an interesting question, so will the Minister confirm with whom that agreement has been met and when it was decided? As we know, following the €2.4 billion fine on Google, the EU is considering giving the Commission tougher competition powers to allow for earlier and faster intervention in anti-trust cases. After Brexit, the UK will have no say over these types of decisions, which could involve UK companies. How do this Government intend to deal with the implications for businesses and consumers of having no voice in deciding the direction of EU competition law? We need to hear some commitments here. The hon. Member for Stone (Sir William Cash) did not want to be held to anything, but is it not about time the UK Government were held to at least some things that they are going to do in the future?
Although SNP Members are keen to support the approval of these draft decisions, the very nature of the Bill shows us how deep and wide our current protections are in the EU. In Scotland, we remain determined to give people hope for the future and ensure that the protections they currently take for granted will continue to benefit them, their families and our businesses. I believe that many people in all parts of this Chamber are as passionate about dignity, freedoms and protections as I am and as we in the SNP are. Whatever the future holds, it will be important for those voices to make themselves heard, and when they do, we will be ready to support them.
John Howell (Henley) (Con)
This is a time for everyone to congratulate you on your successful re-election, Mr Deputy Speaker, so let me do so again on behalf of the whole House.
Let us just reflect on what we are doing here. As my hon. Friend the Member for Stone (Sir William Cash) said, we will not be in the EU when Albania and Serbia are admitted as members, so we are using our role as members of the EU now to set out something for their benefit for the future, and that is an important point to remember. We are acting responsibly in our current membership of the EU, not simply washing our hands of those two countries.
In an intervention on the Minister, I asked what the difference is between the work of the Agency for Fundamental Rights and that of the Council of Europe. That is a very relevant question. According to the description she gave, what the agency does is exactly the same as what the Council of Europe does. I could not get a cigarette paper between the two definitions. As many Members have said in interventions, many of us, as delegates to the Parliamentary Assembly of the Council of Europe, are actively involved in monitoring Albania and Serbia—for example, regarding participation in their elections—and will continue to do so for many years after the UK has left the European Union, because the Council of Europe is not an EU body. The UK will, I hope, continue as a member of the Council of Europe and its subsidiary body, if I can use that term, the European Court of Human Rights. It is important to recognise that it is the Council of Europe that owns the European Court of Human Rights and the convention.
As my hon. Friend the Member for South Suffolk (James Cartlidge) said, we should not take lightly the situation in Serbia. I have spent many years in central and eastern Europe helping countries to develop along the paths of democracy and a market economy. Only a few years ago, Serbia appeared to us to be full of warlords, and full of all the angst of the Balkans at the time. It seems a miracle that Serbia has come so far. In my work at the Council of Europe, I spent a lot of time working with Serbian Members of Parliament. That was done on a cross-party basis—it was an extreme pleasure to work with a Serbian Socialist MP. Serbia has come so far in what it is trying to do, in what it has achieved and in where it is going.
The co-operation that we had encompassed all three areas that the Council of Europe looks after: democracy, human rights and the rule of law. It is important to stress those. There are two examples of Serbia’s problems in the region: one is Kosovo, which some EU members still do not recognise as a separate state, and the other is Montenegro. I am pleased to say that the last Council of Europe meeting was addressed by the Prime Minister of Montenegro, which shows the enormous respect those countries have for the institutions and for the individual members of those institutions.
Albania is a slightly different case. It was, I think, the 35th member of the Council of Europe, and we still monitor Albanian elections very closely. In fact, I was invited to be a monitor of the recent Albanian elections but was unable to do so because of our own general election. There has been an enormous difficulty with corruption in Albania. I am the Prime Minister’s trade envoy to Nigeria, which has a reputation for corruption, but I can tell hon. Members that Albania runs it a very close second in that respect. When I mentioned to an hon. Friend that I was going to say that in this debate, he warned me, “You’d better watch out. There will be gangs of Albanians wandering about, wanting to throw you into the boot of a car and do away with you.” Well, I have taken the risk and said it.
The Minister set out the responsibilities of the agency: to collect, analyse and disseminate objective, reliable and comparable information relating to the situation of fundamental rights in the EU. I see no difference between that and what the Council of Europe does. In Serbia, the Council of Europe is strengthening the capacity of law enforcement and the judiciary specifically in the fight against corruption. An additional project aims to harmonise court practices and to raise the capacity of judges, to ensure consistent application of the judgments of the European Court of Human Rights. Those seem to me to be identical to the activities the agency undertakes on behalf of the EU, so I believe there ought to be considerable co-operation between the Council of Europe and the agency. It shows how far Serbia has come that it also plays an active role regionally in promoting minority protection, in particular for the Roma community, and inclusive education.
The Council of Europe’s overall strategic objective in Albania is to promote the reform agenda across various sectors. Protection of human rights, anti-discrimination, the fight against corruption and organised crime, and reform of the judiciary, as well as freedom of the media and free and fair elections in line with general European standards, are all part of the effort to increase good governance and democratic participation. I know that Albania has a long way to go—it is behind the other countries of the Council of Europe and the EU in taking that agenda forward—but we are working on that.
It would be churlish of me to deny the rights of Serbia and Albania to be members of the agency on the basis set out in the Bill and in the agreements, but I do think that the European Scrutiny Committee could have looked more carefully at what the Council of Europe is doing and pointed out the overlap between that and what the agency will do. We have talked about how long accession takes. I suggest that the reason it takes such a long time is that there is little in the way of co-operation and harmonisation of aims between individual organisations.
Having expressed my belief that Serbia and Albania should be admitted, I will answer the question put earlier about what we can do to put pressure on those countries, which have emerged from horrendous periods in their history. We have to welcome them into our institutions. It is not necessarily about harmonising legislation and making it EU-compliant, as the agency does. All of that can be taken care of. What we have to do—this is where the Council of Europe works very effectively—is work with them, include them as part of our bigger European family, and press them to act in the right way in their own territories. As those other members of the Council of Europe will affirm, that is an effective practice when it comes to dealing with this issue. I welcome those countries, and cannot think of a reason to keep them out, but I do ask for more co-operation across the board.
Let me turn very briefly to the Canadian competition issue, on which many Members have commented. Personally I can see no difficulty in exchanging information and having a better system for exchanging information—whether that is via the EU or with Canada directly as a result of the activities that take place. On that note, I will sit down.
Ian Paisley (North Antrim) (DUP)
I add my congratulations to you, Mr Deputy Speaker, as you assume your rightful place in this House in chairing these proceedings. It is good to see you in your place. It is also a privilege to follow some of the speeches that have been made here today, especially that of the hon. Member for Stone (Sir William Cash). When he speaks on these issues, I often think that his constituency has been badly and underwhelmingly named. It should be renamed the rock, because he acts like a rock—he is solid on these issues—when he speaks before this House. Once again, he has shown his breadth of knowledge and skill in this particular area. I wholeheartedly concur with his point that the European Scrutiny Committee should be reactivated—and reactivated very quickly—because, as we exit the EU, we will need to scrutinise these matters very closely and ensure that we consider the details that will come up during the exiting process. The Committee is one vehicle that could be used to that advantage, and I wish him well in his quest to have it re-established.
I also agree with the hon. Gentleman on the charter of fundamental rights. It is an absolute dog’s dinner. I will not invite the Minister to comment on that, but he did make a valid point. Many of the shared values that we call rights today originated from this great kingdom under our own rights-based common law. We cast that aside too quickly and think that all those rights were given to us by the EU. We actually bestowed many of the fundamental principles of rights on our neighbouring states. Last year, a display in Westminster Hall celebrated many of the fundamental rights that originated here—from employment rights right the way through to anti-slavery activities. We should take more pride in the fact that this nation is the great bastion of rights and has encouraged rights around the world. I also agree that we are not leaving the European Court of Human Rights. That is an incredibly important point. The ECHR is not affected by Brexit. People forget that. Whenever they hear about Brexit, they all too often think that we are leaving Europe. We are not leaving Europe; we are leaving an economic club that has failed us. We are not leaving those issues of rights.
The hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) made a number of points about some “backroom deal” between my party and the Government of the day. I want to make it absolutely clear that, in my view and in the view of the people in my party and on this Bench, the rights of the unborn child trump any political agreement that has been put in place. I want to make that absolutely and abundantly clear. If anyone thinks that we would trade that issue of life and the sanctity of life on a political deal, they do not understand me and they do not understand my party; they need to be aware of that. For it to be characterised in that way is grossly unfair to members of my party.
Drew Hendry
The hon. Gentleman makes a point about something I said about the deal. I was making a point not about children born or otherwise but about lesbian, gay, bisexual, and transgender concerns in Northern Ireland. He should be willing to clarify that issue.
Ian Paisley
I am quite happy that the hon. Gentleman has clarified his comments, but given what has happened in the past week in this House—the passing of the Queen’s Speech and the amendment that was not moved—I think reference has already been made to that. It should be absolutely clear that, in my view and in the view of my party, the unborn is—even in the words of Hillary Clinton—a “human being”. According to science, it feels pain, it knows emotions and it is faithfully and wonderfully made. My party will take a stand on that issue irrespective of the political agreements that are reached. I say that as a warning to others who may seek to raise the issue in the House in the weeks, months and, hopefully, years ahead.
Turning to the issue of competition, which is mentioned in this Bill, and the competitive rights, which have been identified, I welcome what has been put on page 6 of the Labour party manifesto, because it emphasises the importance of what we are discussing today. It says that the Labour party will make sure that we leave the European Union. I welcome that because, when we leave the European Union, we do not half leave it or partly leave it; we get out. It is essential that we get out of the customs union and the single market. We cannot address the competition matters identified in this Bill with Canada, for example, if we do not get out of the customs union. It is absolutely crucial that we leave the customs union. We cannot make free trade agreements with any other country unless we are free to do so, so the quest for freedom is incredibly important. That was driven home to me recently in a piece of correspondence that I received from a large steel processor here in the United Kingdom.
Bill Esterson
The hon. Gentleman is raising some really important points relating to the competition element of this Bill. He touched on an earlier intervention. Will he say a little bit about how he sees the relationship between the north and south of Ireland working?
Ian Paisley
Certainly. I will comment on it after I have made my point about the steel industry. I received a note from the managing director of John Reid and Sons. It is a massive company that has been in existence for 98 years. It said:
“to remain in the customs union would mean that we cannot do our own trade deals with the rest of the world. We have exported to over 140 countries throughout our 98 years in business; we have an idea of what we are talking about…The customs union is a terrible tragedy for Third World agriculture and fisheries, and prevents proper trade.”
That was written by someone who is at the coalface every day and knows what they are talking about. It is important that that point is reflected in this debate.
The hon. Member for Sefton Central (Bill Esterson) has asked me to comment on some of the points that were made about how this matter impacts on the Republic of Ireland. While you would show me great leniency, Mr Deputy Speaker, if I were to speak at length today on the Republic of Ireland and on what a future trade deal would look like, I think that, even though you like me considerably, you would probably rule me out of order. I will try to touch on the point. I recommend to all Members of the House that they go to the Library and get a copy of the Policy Exchange document that was published earlier this month. It was written by Ray Bassett, a former ambassador from the Republic of Ireland to the United Nations. The title is: “After Brexit: will Ireland be next to Exit?” It is a very important policy paper that sets out compelling reasons why the Republic of Ireland must follow the United Kingdom out of the EU. If it fails to do that, its trade will be ruined. We have something in common with Canada on that point. For example, Canada has great fishing waters, and it protects those fishing waters for its fishing fleet and fishing companies. In the past 48 to 72 hours, the fishing rights of the United Kingdom have been discussed at some length in the media.
Of course, the Republic of Ireland’s fishing waters are currently underfished, because the Republic of Ireland is able to encourage the rest of the EU to fish in our waters. Once we claim back our fishing waters, Mr Deputy Speaker, do you know what will happen? The rest of the EU will want to fish in Ireland’s fishing waters, putting great pressure on the Republic of Ireland and stealing its catch. It is for such reasons that it is essential that we understand the commercial reasons why it is important for Ireland to exit the EU. I think that I have probably pushed you just enough, Mr Deputy Speaker, with my comments on the Republic of Ireland. I wish that the shadow Front-Bench spokesman would encourage me again, perhaps by asking me another question on the issue, as I would certainly push the matter even further—then we might not get the red flag.
We must make it absolutely clear, as I said earlier, that agreements such as that which we are discussing today impact tangentially on the pattern of how we should do commerce in the future. The Canadian agreements and aspects are very important, because if that is how Canada will be treated by the EU after we leave, we need to take cognisance of what is in the Bill regarding the relationship that we will have with Canada.
In response to the points made by the hon. Member for Henley (John Howell), let me say that when the UK leaves and Albania and Serbia join—well, I almost feel like saying, “Good luck with that. It will be some club to be a part of,” but I think that would be unfair—those will, ultimately, be matters for what is left of the EU. By the time the accession rights are achieved, the EU will be a very different club from what it is now. When the UK leaves and, as I have predicted, Ireland leaves, although Serbia and Albania wish to join, the EU countries might at that point consider what is in their greater interests. The charges for membership of the EU will be immense. For example, since 2014 the Republic of Ireland has had to pay more than £1 billion to be a member of the EU. It previously paid nothing. If that is what Ireland will have to fork out, what will countries such as Serbia and Albania have to fork out under the new arrangements?
I leave those points for the House to consider and hope that the Minister can reflect on them when she sums up.
Michael Tomlinson (Mid Dorset and North Poole) (Con)
It is a great pleasure to follow the hon. Member for North Antrim (Ian Paisley), who speaks, as ever, with eloquence and authority. I want to pick up on just one of the issues he raised at the beginning of his speech, but first, Mr Deputy Speaker, this is the first opportunity I have had to congratulate you on your election, and I do so. It is also the first opportunity I have had to say how delighted I am to be returned for Mid Dorset and North Poole—from Bere Regis to Bearwood, Wareham to Wimborne and all points in between—and I will do my utmost to repay the trust that my constituents have put in me.
I shall make a short contribution to the debate, not least because I see that colleagues also want to catch your eye, Mr Deputy Speaker. I stand here as someone who voted to leave the European Union and who has an optimistic vision of our country outside the European Union, but the irony is not lost on me that this afternoon we are debating two countries that want to accede to the European Union while we, the United Kingdom, are leaving. Be that as it may, it is an important debate and it is important that we get this right. As the Minister has said both at the Dispatch Box and in correspondence, it is important that while we are still a member of the European Union we fully engage, and that is what we are doing this afternoon.
The rather helpful explanatory note mentioned the European Scrutiny Committee, as did the hon. Member for Sefton Central (Bill Esterson) and other hon. Members, and it is clear that the works of that Committee permeate the Bill. Although that is not the purpose of the Bill, I am delighted to be given the opportunity to say what an important job the Committee does. I declare an interest, having served on it, and I want to reaffirm that it is essential that it gets up and running as quickly as possible. The former Chairman of the Committee—and, I hope, the next Chairman—my hon. Friend the Member for Stone (Sir William Cash), emphasised that documents were piling up even as we speak. I re-emphasise the urgency and importance of getting that Committee up and running, and I am disappointed that there is no reference to it on the Order Paper in relation to the debate later this afternoon.
Let me pick up on one point. On the first occasion, the European Scrutiny Committee did not clear this legislation from scrutiny, but required further clarification. I am delighted that the Minister provided that clarification, which enabled the Committee to clear the document and enable this process to happen. We must of course emphasise that we are leaving the European Union but, for as long as we remain members, we will play a full and sensible part in it. That is what we are doing this afternoon, and I am delighted to have played a small part in the debate.
Andrew Percy (Brigg and Goole) (Con)
It is a pleasure to speak from the Back Benches once again, Mr Deputy Speaker—I had almost forgotten about the whole standing-up-and-sitting-down thing.
I welcome the Bill and offer it my full support, but in so doing I want to speak specifically about the provisions relating to Canada and broaden things out—remaining within the realms of the debate—to cover our future relationship with Canada more generally. I do so as our former trade envoy to Canada, a role that I very much enjoyed until I was made a Minister, and which we probably need to fill again in the near future. I can think of one or two possible candidates—tall, dark, handsome former Ministers from the north of England, perhaps—[Interruption.] Where are they, indeed?
It is very nice to have a Bill before the House today that mentions Canada, as it is 150 years since the British North America Act, which established the Confederation of Canada, was enacted. Just this past weekend, celebrations took place throughout Canada. It is nice, 150 years later, to recognise Canada’s birthday and, thinking about competition and business, to recognise the 200-year anniversary of the Bank of Montreal—the bank with the longest presence in the United Kingdom—which also falls this year.
The competition provisions in the Bill are sensible and operate, like the EU-Canada Comprehensive Economic and Trade Agreement, as a basis for a future relationship with Canada once we have left the European Union. I want to use this debate to explain why I feel this relationship is so important and is worthy of more attention from Her Majesty’s Government over the coming years.
Of course, we have an important shared heritage with Canada which has been strengthened through conflict and war. A reminder came recently when the Bletchley Park commemorative badge was presented by our representative in Ottawa to 96-year-old Sonja Morawetz Sinclair, who escaped the approaching Nazi armies in Czechoslovakia and worked in the examination unit, supporting the important signals intelligence work that was done there. It is nice that our Government have recognised that contribution.
Of course, we have a shared legal system, a shared language, shared business practices, a shared Head of State and, indeed, a shared system of government. This is a relationship that, post-Brexit, can flourish on the basis of those commonalities. It also makes economic sense for us to develop this relationship much more closely. UK exports to Canada in 2015 were £7.3 billion, whereas imports from Canada were £7.4 billion. We have a relatively well-balanced trading relationship as a consequence of our important commonalities and agreements, not only as regards competition, as in this Bill, but as regards the recently agreed EU-Canada trade treaty. It is a good basis for a treaty between this country and Canada once we leave, but because of the nature of European decision making, I think we can do better following our exit from the EU.
We are well placed to succeed and do well from that relationship post-Brexit, not least because of the friendly business environment that I have mentioned and our shared heritage, but also because of our strong presence in the market, particularly as a result of investment from the Government through UK Trade & Investment, the Foreign and Commonwealth Office, and now the Department for International Trade. I saw that for myself, and saw how valued it was in my time as a trade envoy. We had an excellent team, led by High Commissioner Howard Drake, who was well regarded, and by the consul general and director-general for UK trade and investment, Kevin McGurgan, who was based in Toronto. I saw how well regarded he was and how well connected, both at a political and business level, Her Majesty’s Government were as a result of those relationships. Only two weeks ago, I was in discussions with our consul general in Vancouver, Nicole Davison, who leads a team in the west doing a great job.
I want to put a bit of meat on the bones and outline what more we need to do to get the maximum advantage from that relationship post-Brexit. I have discussed the need to recognise first—I believe the Government have done so—the importance of that relationship. We have friends at court in the Brexit process. The newly elected Leader of the Opposition in Canada, Andrew Scheer, wrote a comment piece in favour of Brexit in the run-up to the election. The Canadian Government have said that they want to be as helpful as possible to us in this process, and indeed the probable next premier of Alberta, Jason Kenney, a former federal Cabinet Minister, was an advocate for Brexit before the referendum.
That relationship is important to us, not least because Canada is campaigning for a place on the UN Security Council. I call on the Government not just to recognise the importance of the relationship at a federal level but to recognise that Canada is a country of several different economies, and that that provincial relationship with those Governments, three of whom are represented in the United Kingdom—British Columbia, Ontario and Quebec—is vital.
Broadly, my pitch on the Bill is to recognise that what we have achieved through the EU and bilateral arrangements with Canada is a close relationship. However, we need to do more to put more meat on the bones and strengthen that relationship. The Government recognise that, and there is work under way. I call on Ministers to ensure that they are fully cognisant of this important relationship, and put the required effort and attention into supporting that through visits and, as I have said, making sure that our network in the market is as strong as possible so that we get a good deal to replace CETA in the future. As I say, that requires recognition of the specifics of the provincial position in Canada, both politically and economically. I have nothing else to say, other than to end where I began and wish Canada happy birthday on its 150 years, which I am sure that the House will agree with.
Mr Deputy Speaker
Just a sec. It is worth reminding Members to get into the habit of standing up to catch my eye, so I know who wants to speak, especially as the list of Members wishing to speak is changing quicker than I have ever seen a list change before.
Vicky Ford (Chelmsford) (Con)
Thank you for calling me, Mr Deputy Speaker. As someone who believes in open, competitive and free markets because they foster innovation, generate prosperity and create the wealth that we need for our public services, I believe we must have robust competition powers so that we can take action against companies that act in an anti-competitive manner. In the 21st-century world, the economic actors are frequently global players, especially in areas such as digital markets. It is important that we can work with other countries on competition issues.
A couple of years ago, I was in Silicon Valley with politicians from Germany, the Netherlands, Poland and the Czech Republic. Many players in Silicon Valley told us their concerns about how Google was acting. I went with that group of politicians to meet the head of search at Google, and I have never seen a company with so many lawyers in one room. They knew the power that countries could have when acting together. It was therefore interesting to see the European Commissioner for Competition taking action, a couple of weeks ago, on a proposed fine for Google. That case has caused some controversy, and it may create precedents for how platforms can act in future.
It is important in such cases that those who are taking the action make it clear that there is a level playing field, and that they are not singling out, for example, an American company when they would not do the same to a British or European one. One benefit of a co-operation deal, such as the one that we are discussing today, is that by working together we can help to reinforce the level playing field and the idea that we would not single out our own companies for a different type of enforcement. It removes what we call the jurisdiction bias risk. It also brings bigger resources to take on big cases, and post-Brexit the UK will want to make it clear to the world that we are prepared to take on competition cases for big players. The ability to continue to co-operate with other countries is therefore important.
Canada is a dear friend to the UK, as my hon. Friend the Member for Brigg and Goole (Andrew Percy) pointed out, but the Canada free trade agreement is not the perfect model for the future UK-EU relationship. That agreement removes many, many tariffs from different trades. We voted it through in the European Parliament on 15 February, the day after Valentine’s day, and I remember celebrating, as we would have tariff-free chocolate—a great benefit. However, it does not create the deep level of market access that the Government seek in our future relationship with Europe. If we chose that model off the shelf, it would create many new non-tariff barriers in areas such as digital and financial services. It would not provide the regulatory co-operation model that we seek. For example, British car manufacturers would not even be consulted in a stakeholder consultation about changes to international rules on car transactions.
We therefore need a deeper model, and we need to make sure that co-operation on competition has a dispute resolution mechanism for companies as well as countries. I was particularly pleased to hear my hon. Friend the Member for Stone (Sir William Cash) suggest that the European Free Trade Association courts might prove to be a good or interesting basis for dispute resolution. He was sending a powerful message, given all his experience, that that might be a pragmatic solution.
Finally, picking up the suggestion from my hon. Friend that we need to move on from being brothers and sisters to become close cousins, in developing that relationship there will be things about which we will need to have serious discussions and arguments. I would suggest that this is not one of them. Allowing other countries to come together on issues such as human rights and competition co-operation is something that we should allow to pass and not block. We should save our discussions and arguments for when they are really needed.
Jack Dromey (Birmingham, Erdington) (Lab)
Mr Deputy Speaker, may I join the long queue of those paying tribute to you on your re-election and on the outstanding role you play in this House?
As my hon. Friend the Member for Sefton Central (Bill Esterson) said right at the start, the Opposition support the European Union (Approvals) Bill. More generally, the UK is leaving the European Union, and, in that process, the Opposition will fight to put jobs and the economy first. We will also not accept the watering-down of rights and standards, and I say to the hon. Member for North Antrim (Ian Paisley) that we are right to be concerned about that. To give one example from my past, I took the case of the Eastbourne dustmen all the way to the European Court of Justice 15 years ago. For 10 years, rights on the transfer of undertakings were denied to workers being privatised in Britain. Had it not been for those European mechanisms, we would never have seen those rights enforced in this country. We will be leaving the European Union, but I stress again that we will not accept anything that waters down rights and standards.
Sir William Cash
I think the hon. Gentleman is aware that, under the proposed repeal Bill, there would be a transposition of European law into UK law under Westminster jurisdiction. That would include the very rights to which he refers, and I think that is understood on the Opposition Front Bench, is it not?
Jack Dromey
The rights under TUPE and the acquired rights directive are now guaranteed in British law. What is crucial—this is not a debate for today—is what happens after leaving the European Union in terms of the continuation of guaranteed certainty for workers and their rights, as well as the enforcement mechanisms that exist in the event of a dispute.
The Opposition strongly believe in the importance of a collaborative relationship with the European Union. We will no longer be members, but it is essential that we are partners. The hon. Member for Stone (Sir William Cash) referred to the notion of cousins, but, given the way some in the Government are conducting these debates, I sometimes think we are more akin to an estranged couple in a difficult divorce. However, at the next stage, partnership will be essential, and that is one of the principles enshrined in the Bill—a more general partnership that benefits Britain, particularly on key issues such as cross-border security or, as in this case, cross-border trade.
As we leave the European Union, it is essential that we put in place new and sensible arrangements. The Opposition support the Bill because it is right and also—I agree with the right hon. Member for Chelmsford (Vicky Ford) on this, although I think I have just promoted the hon. Lady—because it would, to use my words, although they amount to the same as hers, be wrong to nit-pick on a measure of this kind. This measure makes good sense, so it should be supported.
On the substantive issues—the participation of Albania and Serbia in the work of the Fundamental Rights Agency—we have heard powerful contributions, including from the hon. Member for Henley (John Howell), as to the origins of the FRA and why it is so important. That is not least because it was born out of trauma and war in continental Europe and because of the role it has played over many years in advising on fundamental rights, discrimination, access to justice, racism, xenophobia, and victims’ and children’s rights. It is absolutely right that we should have such an agency promoting those principles, rights and values throughout Europe, and that is all the more important now.
It is deeply welcome that we will have Serbia and Albania locked into that process at the next stages. In the not-too-distant past, Serbia was wracked by war, and Albania was under a totalitarian regime for many years. Both are now candidates for European Union membership, and that will be for the European Union to decide. Both will contribute to and participate in the FRA. The proposal has been cleared by the European Scrutiny Committee and the Lords European Union Committee, so we strongly support it.
Let me move on briefly to the EU-Canada competition agreement. The hon. Member for Chelmsford was right that if we have global free trade, it is important that we also have effective mechanisms to combat anti-competitive behaviour. That has to be in the best interests of consumers and companies. Crucially, however, it needs to be effectively enforced. The hon. Member for Brigg and Goole (Andrew Percy) was right when he referred to the historic relationship we have with Canada. Looking to the future, we need, in his words, to have the economic good sense to develop that relationship.
As far as the substantive proposal is concerned, we already have arrangements in place. It is being proposed to extend the powers to allow both sides to exchange evidence and information in the course of investigations. To make the obvious point, the absence of such a power can be an impediment to effective enforcement. We therefore believe that what is proposed is right, and similar arrangements are in place, as the Minister said, with countries outwith the European Union, such as Switzerland. On that substantive issue as well, we support what is contained in the Bill.
I have two questions over and above those posed by my hon. Friend the Member for Sefton Central. First, what will be the transitional arrangements? Crucially, as we stand now, UK companies operating in the European Union are still subject to the same anti-trust and merger rules. In future, the European Union will share information about UK companies with Canada but will not share the information it receives from Canada about the UK with the UK. That poses a very big question about what happens post Brexit in terms of transitional arrangements and how this then works in future.
Secondly, will the Minister clarify what will be the ongoing relationship with the Fundamental Rights Agency? For all the reasons that I have spelled out, it is critical that we are part of a pan-European mechanism that is about human rights and combating racism and xenophobia—never more important in the current climate than it has been in the past.
Margot James
With the leave of the House, Mr Speaker, I am grateful to have the opportunity to respond to the debate.
The Bill will approve four draft European Council decisions. The first concerns the participation of the Republic of Albania and the Republic of Serbia as observers in the work of the Fundamental Rights Agency. The Republic of Albania and the Republic of Serbia both want to become members of the European Union. This measure does not extend the competency of the Fundamental Rights Agency. Albania and Serbia should be supported to increase their human rights awareness and promote fundamental rights within their countries, and I was pleased by the support that the House gave to that position.
I will deal with a few questions raised by hon. Members on this decision. My hon. Friends the Members for South Suffolk (James Cartlidge) and for Stone (Sir William Cash), to whom I express my appreciation for his work in chairing the European Scrutiny Committee, asked about the impact on Serbia’s war crimes record. The decision will allow Serbia to have access to the expertise of the agency and allow data on human rights in Serbia to be gathered and shared, providing steps to improve Serbia’s human rights protections. The UK continues to urge Serbia to meet its obligations to co-operate fully with the International Criminal Tribunal.
The hon. Member for Sefton Central (Bill Esterson) asked whether the UK could remain part of the Fundamental Rights Agency post Brexit. The Government are looking at the UK’s relationship with all EU bodies, including the FRA, as part of the exit negotiations. My hon. Friend the Member for Cheltenham (Alex Chalk) pointed out that the FRA is completely distinct from the European convention on human rights, and our membership of that convention continues post Brexit.
My hon. Friend the Member for Henley (John Howell) spoke with considerable authority on the work of the Council of Europe, of which he is a member, and the overlap between that body and the FRA. I share his hope and belief that the valuable work of the Council of Europe will continue long after Brexit.
On the co-operation agreement between the EU and Canada on competition enforcement, the UK has a large number of companies that are well placed to compete internationally in a system of genuine free and open competition. The agreement will help to ensure free and open competition by facilitating enforcement against international cartels. There are a number of questions in this area. The hon. Members for Birmingham, Erdington (Jack Dromey) and for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) asked about UK companies continuing to be subject to EU anti-trust jurisdiction. The EU has jurisdiction over competition effects within the EU single market. That will continue after we leave the EU, and UK companies will have to comply with EU competition law when they operate within the EU single market, just as US, Japanese and Canadian companies do. The key point about the Council of Europe concerns the setting of standards and the overseeing of these matters. We welcome greater co- operation on international competition enforcement.
The hon. Member for Sefton Central asked whether, after EU exit, we will have to continue to share with the EU information received from Canada. The UK Government will be free to enter into their own arrangements to share information with Canada directly, and the UK and Canada will need to negotiate any such agreement. He also asked about international agreements after the UK leaves the EU, and whether this agreement provides a model. The UK will be free to enter into international agreements on competition, and we believe that this agreement is a good model.
We have had a good debate on co-operation on international competition enforcement, which will ensure that British businesses continue to compete on a level playing field. I think I have answered most of the points that hon. Members raised during the debate, and I commend the Bill to the House.
Question put and agreed to.
Bill accordingly read a Second time.
European Union (Approvals) Bill (Programme)
Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the following provisions shall apply to the European Union (Approvals) Bill:
Committal
(1) The Bill shall be committed to a Committee of the whole House.
Proceedings in Committee of the whole House, on Consideration and up to and including Third Reading
(2) Proceedings in Committee of the whole House, any proceedings on Consideration and any proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion two hours after the commencement of proceedings in Committee of the whole House.
(3) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion three hours after the commencement of proceedings in Committee of the whole House.
Programming committee
(4) Standing Order No. 83B (Programming committees) shall not apply to proceedings in Committee of the whole House, to any proceedings on Consideration or to other proceedings up to and including Third Reading.
Other proceedings
(5) Any other proceedings on the Bill may be programmed.—(Nigel Adams.)
Question agreed to.
Business of the House (Select Committees)
Ordered,
That, at this day’s sitting, the Speaker shall put the Questions necessary to dispose of proceedings on the Motions in the name of Andrea Leadsom relating to Standing Orders etc. (Committee on Exiting the European Union) and Women and Equalities Committee and the Motion in the name of the Prime Minister relating to Select Committees (Allocation of Chairs) not later than two hours after the commencement of proceedings on the Motion for this Order; such Questions shall include the Questions on any Amendments selected by the Speaker which may then be moved; proceedings may continue, though opposed, after the moment of interruption; and Standing Order No. 41A (Deferred divisions) shall not apply.—(Michael Ellis.)
European Union (Approvals) Bill
Tuesday 10th October 2017
(7 years, 1 month ago)
Commons ChamberRead Full debate European Union (Approvals) Act 2017 Read Hansard Text Read Debate Ministerial Extracts
The First Deputy Chairman of Ways and Means (Mrs Eleanor Laing)
With this it will be convenient to discuss clause 2.
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)
This is a short Bill. As I explained on Second Reading, the purpose of the Bill is to approve four draft decisions of the Council of the European Union. All four draft decisions rely on article 352 of the treaty on the functioning of the European Union, and therefore require the approval of Parliament. Section 8 of the European Union Act 2011 provides for exemptions in order to avoid the requirement for an Act of Parliament, but the decisions with which we are dealing do not fall within any of the exempt purposes.
The first two decisions will enable two countries, the Republic of Albania and the Republic of Serbia, to be granted observer status in the European Union’s Fundamental Rights Agency. The third and fourth decisions are necessary to implement a co-operation agreement between the EU and Canada on competition enforcement. Clause 1 provides for approval by Parliament of those four draft EU legislative decisions. Clause 2 concerns the territorial extent of the Bill, its commencement date and short title. Subsection (1) provides that the Bill extends to the whole United Kingdom, subsection (2) provides that the Bill will come into force on the day it receives Royal Assent and subsection (3) provides for the Bill’s short title.
We are content that all four decisions are reasonable and proportionate, and that they will not result in any additional financial burdens on the UK. I urge hon. Members to agree to clauses 1 and 2 standing part of the Bill.
Bill Esterson (Sefton Central) (Lab)
The European Union (Approvals) Bill is a two-clause Bill, as the Minister has said. It will approve four draft decisions of the Council of the European Union in relation to the participation of the Republics of Albania and Serbia as observers in the work of the Agency for Fundamental Rights, and the signing and conclusion of a new agreement between the EU and Canada regarding competition law, including the exchange of information between the EU and the Canadian Competition Bureau. Approval of those decisions by means of an Act of Parliament is necessary under the European Union Act 2011 in order for a Minister to vote in favour in the Council.
The Fundamental Rights Agency replaced the European Monitoring Centre on Racism and Xenophobia in 2007. As the Europa website states, the agency advises EU institutions and national Governments on fundamental rights, particularly in the areas of discrimination, access to justice, racism and xenophobia, data protection, victims’ rights and children’s rights. The agency’s areas of work have been determined through a five-year framework, and the main priority areas include the fight against racism, xenophobia and related intolerance. EU candidate countries can participate in the FRA as observers. The Bill approves two draft decisions on the participation of the Republic of Albania and the Republic of Serbia as observers in the FRA’s work. We support the draft decisions concerning the participation of Albania and Serbia in the FRA.
Competition is vital to our economy, the success of our businesses and the prosperity of the people of our country, and the encouragement of healthy competition is vital. National Governments have a vital role in ensuring that a fair market exists, and not just a free market. The way in which Governments work together is also crucial in determining whether markets are free, fair or otherwise. The decision of the Trump regime to impose punitive tariffs on Bombardier will have a disastrous effect on the workers and communities of Northern Ireland, and on the economy. Such tariffs, if they are allowed to stand, exemplify the use by companies such as Boeing of market dominance to destroy competition.
Mr Bob Seely (Isle of Wight) (Con)
I am not sure that I like Donald Trump any more than anyone else does, but does the hon. Gentleman understand the difference between a regime and an Administration? He calls the Trump regime a regime, but in fact the Trump Administration is an Administration. It is a democratically elected Administration, not some sort of hard left Venezuelan or Cuban-style regime.
Bill Esterson
I do not think there is any danger of confusing Donald Trump’s Administration or regime with anything of the hard left.
That Boeing can act as it has done—initiating trade disputes in a segment in which it does not compete—with the full support of a protectionist US Administration demonstrates the need to ensure that every effort is made to deliver healthy and fair competition. The reliance of some Ministers on the US for trade and for our own economic success has been brought into sharp focus by the actions of the Department of Commerce. Notably, this applies to the International Trade Secretary, who seems to think that our relationship with the US is the answer to all our prayers, but it clearly is not.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
It has been said by some that this Bill lacks substance, that this is a perfunctory debate and that it has little significance. I think that could not be further from the truth. For our actions here in the House this evening demonstrate beyond any discernible doubt that up to and until the point that we leave the European Union, we will continue to use our rights and obligations as full members of that institution, demonstrating that in the United Kingdom the European Union will retain the closest of friends, the strongest of allies and the most dependable of partners.
In that spirit, with our desire to do the right thing by our neighbours and echoing the Prime Minister’s comments yesterday when she reaffirmed our commitment to a peaceful, secure and prosperous future for Europe, it is right that we approve the decisions of the European Union Council. Few other single acts could better signal our desire for a peaceful and prosperous Europe than the granting to Serbia and Albania of observer status in the European Union’s Fundamental Rights Agency.
We cannot forget that it was less than 20 years ago that British and other NATO troops were deployed in the Balkans in the midst of an horrific conflict that we hoped we would never see the likes of in Europe again. While I am sure that all in this House would agree that more should and could be done, with the Council of Europe among others, regarding the pursuit of war crimes in Serbia, and on judicial reform, anti-discrimination policies, illegal migration, organised crime and protections of fundamental freedoms, it is surely a mark of the huge progress made in all these areas by the respective countries that the Council of the EU has seen fit to recommend that they be granted observer status as part of their EU candidate status.
Using our rights and obligations to the full until we leave, as we should, it is right that the UK supports Albania in its accession efforts and Serbia in its reform projects. Our giving consent to these—
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
The hon. Gentleman makes an important point about encouraging the enlargement of the EU across the Balkan countries. On that count, does he also support the application of countries such as Montenegro, Macedonia, Kosovo and Bosnia?
Andrew Bowie
Each application has to be looked at in its own individual context. It is obviously not for me or this House to decide where each state is in terms of its candidate status, but for the Council of the European Union. I know that that is going through at this very moment.
The third and fourth decisions of the EU Council are necessary to implement a co-operation agreement between the European Union and Canada on competition enforcement. Canada is one of the United Kingdom’s oldest and closest partners: we have been allies in conflicts for over a century and we have a shared past, strong family links and shared values. As if to underline that closeness, Canadian and British troops, as well as European and other NATO service personnel, are working closely, side by side, as part of Exercise Joint Warrior along the north coast of Scotland. It is because of this closeness, and our shared history and values, that many in this House and beyond find it so frustrating that it has taken over eight years for the Comprehensive Economic and Trade Agreement to be agreed between the European Union and Canada. Even then, it almost came unstuck due to the complex internal machinations of Wallonian politics—I was going to make a comment about unchecked devolution, but I have thought better of it. I just wonder whether a UK-Canada free trade deal might take a slightly shorter time.
Peter Grant (Glenrothes) (SNP)
I am grateful to the hon. Member for giving way and for reminding us that as well as the co-operation with Canada, subject to this proposed Act, a much more significant and detailed co-operation agreement was finalised not so long ago. He will be aware that while the Bill has been offered a potential six hours debating time on the Floor of the House, the CETA deal was agreed without a single minute’s debate on the Floor of the House. Does he believe that that allowed the House to properly influence such an important trade deal?
Andrew Bowie
As the hon. Gentleman knows, that was well before my time in this House so I would not feel entirely comfortable commenting on that. This debate is not about CETA.
The decisions taken in the EU Council being approved by us today for agreement by the European Parliament will replace the 1999 competition and co-operation agreement. As the Minister said, the agreement replicates and builds on the provisions in the earlier agreement by allowing the European Commission and the Canadian Competition Bureau to exchange evidence obtained during investigations, including confidential information and personal data. These decisions will further help British businesses thrive internationally, as both Canadian and European business benefit from strong international competition law. On anti-competitive business practices, we must continue to work with Europe and Canada after we leave the European Union. We on the Conservative Benches know that the only way to reliably increase long-term living standards is through trade. Fair competitive trade is, as we know, the catalyst for reducing poverty, spreading prosperity and fostering innovation.
An outward-looking global Britain, as we will be, must continue to fight fair for business practices across the globe to ensure that free trade works for everyone. I hope the European Union recognises that the approval of its agreements is done in good faith, because it benefits citizens and businesses across the United Kingdom, Europe and Canada. In approving these decisions, we not only signal our commitment to the future of a peaceful and prosperous Europe, reaffirming our position as its closest and most dependable friend, but signal our continued desire to promote fair competition, free trade and an ambitious future for ourselves and our partners across the world.
Peter Grant
I am happy to speak in support of the Bill. As I mentioned in my intervention, it seems ironic that something that appears to attract little opposition and not even a great deal of concern across the House could, if necessary, be granted a total of six hours of debate—tonight’s allocation and what we had on Second Reading—on the Floor of the House, yet massively important and much more contentious EU legislation, such as the CETA deal, is guaranteed no time whatever on the Floor of the House. The Government were eventually dragged kicking and screaming into an upstairs Committee room for an hour and a half after the CETA deal had been signed off but before it was finally ratified. That was after months, if not years, of determined efforts by the European Scrutiny Committee, whose scrutiny process was ignored and overridden by the Government on that and on so many other matters. I will come back in a moment to explain why that is so vital, but it seems ironic that something relatively non-contentious requires an Act of Parliament before the Minister can sign it when Ministers from all parties have quite happily signed much more contentious EU documents in the past without any appropriate reference back to this House.
I want first to speak about the applications from Albania and Serbia. We should enthusiastically welcome the movements in those two countries. I am one of a fairly small number in here who can remember the days when Albania was like the North Korea of Europe. Even before the fall of the iron curtain, even when the Stasi were in charge in East Germany and even when the Ceausescu regime was in charge in Romania, Albania was seen to be the most isolationist place of all. We should welcome the fact that it now wants to move closer to the more modern family of European nations. And look at where Serbia has come from in the past 20 or 25 years; we should enthusiastically welcome the fact that it is now asking to be allowed to co-operate much more closely in the protection of human rights and the eradication of racism and xenophobia. We should encourage the Serbian people and Government to continue on that journey.
Andrew Percy (Brigg and Goole) (Con)
I have spoken during a previous stage of this legislation and am happy to do so again. Before I begin on the Bill, I have to take issue with the shadow Minister’s use of the phrase “Trump regime”. This really is the sort of childish politics that we have come to expect from the Opposition. Never mind various shadow Ministers popping along on certain strong leaders’ particular TV channels without seemingly any notice at all—no criticism of that. But describing the democratically elected Government of our biggest ally and friend as a regime is silly, childish politics. The shadow Minister could do better, but he showed why the Labour party is unfit to hold any sort of ministerial office at any time soon.
I take issue with a couple of things that the hon. Member for Glenrothes (Peter Grant) said. It is not true that Parliament has not discussed, debated and questioned Ministers on CETA. I declare an interest as a previous vice-chair of the all-party parliamentary group on TTIP, now the all-party parliamentary group on transatlantic trade. We have had Backbench Business debates in which TTIP has been debated and the CETA deal has been smeared by certain Members as a Trojan horse for American interests, which is a deep insult to our Canadian friends and allies. Ministers have responded to those debates, and of course the issues have been raised time and again in questions. I partly understand his point, but it is not the case that we have not examined and discussed the CETA provisions in depth in this place, both in the Chamber and elsewhere. It is a consequence of its nature that the trade treaty with Canada passes in this form. There is nothing unusual about it. It is part of our constitutional system.
I also take issue with one other thing the hon. Gentleman said, which in my mind was the biggest nonsense I have heard for some time: that the reason the British people voted to leave the EU was that the British Parliament, even in cases of the direct applicability of EU law and an activist European Court of Justice, has not got in the way of things forced on Britain, even sometimes against the wishes of the British Government. It was a bizarre argument. I suppose it is just another example of people failing to accept the democratic will of the people. Seven out of 10 of my constituents voted to leave the EU. They have pretty much been smeared since the referendum campaign for daring to vote a different way from certain establishment types in this place.
Peter Grant
I will not rise to some of the nonsense the hon. Gentleman is speaking. Will he confirm whether he is familiar with the resolution of the House requiring Ministers to get either clearance or an agreement to waive scrutiny from the European Scrutiny Committee, and will he confirm that when the International Trade Secretary—I think it was him, but I cannot be sure—signed CETA, he did so knowing he did not have the Committee’s approval? The resolution does not say it has to be discussed at a Backbench Business debate or by an APPG; it quite clearly says it has to be cleared by the Committee, but it was not at that time—
The First Deputy Chairman of Ways and Means (Mrs Eleanor Laing)
Order. We are a little more lax because this is Committee stage, but I kind of forgot the hon. Gentleman was intervening rather than making a speech. I should not have let him go on for quite so long, but I am sure he has made his point now.
Andrew Percy
I wish to forget that the hon. Gentleman was speaking, given, again, the nonsense he was trotting out that in some way this is Parliament’s failure. He clearly does not understand how European decision making has evolved through the various European treaties over the years and how the role of this House in that legislative process has been diminished. He is a member of a party that wants to retain decision making in Brussels, rather than repatriate it to the UK, so it is a little difficult to swallow being lectured about parliamentary democracy by a representative of a party that wishes decision making to remain in Brussels.
I am delighted, as I was at previous stages, to support the Bill. It is important, as we exit the EU, that we continue to be good partners in Europe, and if it is the will of Serbia and Albania to join the EU in the future, it is not for us to get in their way. Regardless of whether we are in favour of leaving or remaining in the EU, we will all wish them well as they embrace the values that we in this country and our allies in Europe hold so dear. It is important for their own stability that they be allowed to progress unimpeded down the path they have chosen. Also, by actively supporting the Bill, we show what we wish to be after we have left the EU: good partners with Europe. As a proud Brexiteer, therefore, I am more than happy to support a Bill that might well pave the way for the expansion of the EU.
On the provisions as they relate to Canada, the Minister was unable, quite reasonably, to say whether we would wish to participate in these arrangements in the future. That will of course be a matter for our final arrangements with the EU. The hon. Member for Sefton Central (Bill Esterson) set out a position, and the Opposition have set out any number of different positions on Brexit, all of which they appear to be capable of maintaining at the same time. That is an interesting approach to such an important issue.
Andrew Percy
I only got a C in GCSE maths, so I am afraid I cannot do such advanced sums involving so many numbers at any one time, but it is certainly a lot, and it is certainly the case that the position taken depends on which shadow Ministers—be they impressive or unimpressive—pop up on the television screen.
Let me now deal with the broader relationship with Canada. This whole process—not only through the agreement that we are discussing, but through CETA—has been an important indicator of how we may wish to do business with Canada in the future.
Justin Tomlinson (North Swindon) (Con)
My hon. Friend is making a typically powerful speech. This agreement is a good start, but, as an advocate for opportunities for future trading arrangements with Canada, does he agree that there is potential to be even more ambitious?
Andrew Percy
I absolutely agree. I am delighted to have been asked once again to be the Prime Minister’s trade envoy to Canada, as I was previously until I had the unfortunate experience of being a Minister for a year. I was passionate about the deal that was negotiated. As hon. Members will remember from our work on the Transatlantic Trade and Investment Partnership, I have been a strong advocate in the House for improved trade relations between this country and north America. I should add, despite being a strong advocate for CETA, that CETA is a classic example of the European Union way of negotiating a trade deal that does not necessarily reflect the peculiarities and the particular circumstances of our economy.
I think—and the Canadians have been very positive about this—that although it would be sensible for us to continue to apply CETA during the immediate period after we have left the European Union and to use it as a starting position, we can be far more ambitious. After all, 40% of our merchandise comes into the EU from Canada. We are the biggest recipient of Canadian foreign direct investment in the EU, and we are the biggest foreign direct investor in Canada among EU countries. It is certainly the case that we can be more ambitious, and aim for more than what has been achieved so far through CETA, although it is a good start and a good base. I welcomed the Prime Minister’s recent visit to Ottawa, where she established a bilateral trade working group with Prime Minister Trudeau and his Government. That was a good step forward, especially in the eking out by officials of where a deal could lie in the future.
I want to make a case to the Minister that I have made at earlier stages. I hope he will take it on board, because it is the crux of my speech, as it was at those earlier stages. While it is important that we maintain our relationships with the federal Government, I think that the one thing we have learnt from the CETA process, on both sides of the Atlantic, is how important—particularly in a Canadian context—engagement at a sub-federal, sub-national level really is. I urge the Minister to ensure that we learn the lessons of how we engage with provincial Governments, who are so important to the success of any future trade deal with Canada. We need to ensure that, as well as continuing our bilateral relationship through the working group that we have established through the federal Government in Canada, we are actively working with those provincial Governments, a number of whom have representatives and trade offices in the United Kingdom, and we need to ensure that we learn the lessons of any failure to do that through CETA.
I have little else to say, other than, again, to wish the Bill every success.
Vernon Coaker (Gedling) (Lab)
This is a Bill that I think we can all support. It is small and we have consensus but, as other Members have said, it is still a significant measure. I refer, in particular, to the decision to grant Serbia and Albania observer status at the European Union Agency for Fundamental Rights.
One of the EU’s great successes, which I think the House should celebrate, notwithstanding the decision to leave, is its support to progressive movements in many former Soviet bloc countries in eastern Europe. Many of those countries are now full members of the EU, but many others, although now parliamentary democracies, are still seeking to move forward in a range of areas, as the Minister reminded us, such as in combating sexism, racism, homophobia and conservative nationalism in the worst sense of the term. It is important that we reflect on that in this debate.
Only 20 years ago, as the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) mentioned, this country supported Kosovans. We saw ethnic cleansing in that part of Europe, just a few hours away from Heathrow. We thought that ethnic cleansing had been banished, and that it was impossible for that to occur again in Europe after the horrors of the second world war. The instability of the situation threatened the wider region. It has taken Serbia and Albania 20 years to reach the position in which they can be granted EU observer status.
There are still significant challenges. I recently met representatives from Albania at a conference in Rome on slavery and human trafficking, and we were reflecting on the challenges that the country still faces—I am not as familiar with Serbia, but I know that other Members are. All that I wanted to do was stand up in this House and say that the British Parliament thinks about and understands the people who are seeking to bring about progressive change in their counties, sometimes in very difficult circumstances.
There is a question for us, if and when we leave the EU—without getting into the divisiveness of whether or not we should—of how we can continue to support progressive movements that are seeking to tackle some of the problems in Serbia and Albania, and indeed in counties such as Montenegro. The Government will need to consider how to approach that. That sort of consideration can easily be lost in our debates on the EU, but it is of fundamental importance.
Serbia and Albania have made massive advances, but there is still a long way to go. The granting of observer status is another significant step forward. The people in those countries who are seeking to advance the causes of sexual equality, anti-racism and a nationalism that does not remind us of the horrors we have seen before need our support, and they need to know that we are interested, that we care, and that we will support them in their endeavours. The Bill is small, but it is crucial to us all.
Mr Seely
I am delighted to follow the hon. Member for Gedling (Vernon Coaker) and I will hopefully pick up on a couple of his points. I will speak briefly in support of the Bill, and specifically Serbia and Albania’s admission to observer status in the European Union Agency for Fundamental Rights. That is important for us, but it is extremely important for those two countries, particularly Serbia.
Whether we like it or not—we clearly do not, because we thought that it had ended about 20 years ago—we are in something of a cold war with the Russian Federation, or at least with its leadership. The aggressive cooling of relations was advertised in President Putin’s Munich speech back in 2007, and it could be said that there was a gestation period of some 10 to 15 years before that during which the forces of proto-communism and socialism, hard-line nationalism, and even an aggressive, virulent fascism coalesced around an illiberal hostility to the western world. Whether we like it or not, there is a battle for Serbia’s future and, broadly speaking, there are two models for where the country is going. One is pro-EU and involves democracy, individual rights and hostility to minority oppression. It is not a perfect system—it could be said that a little more adversarial politics would be no bad thing—but those things are critical to a civilised society.
As the hon. Member for Gedling was saying, the other model that the Serbians face is the one that the Russians want: hard-line nationalism; hostility to individual rights; perhaps a celebration of a sort of pan-Slavism; and aggressive propaganda against NATO, the EU and “gay Europa”, as the Russian official media would have it. The hon. Gentleman mentioned conservative nationalism, but it goes beyond that—it is a virulent form of illiberalism in almost all forms. It is almost proto-fascist, although it gains support from both sides, with avowed fascists and avowed communists having a similar social agenda involving antagonism towards homosexuality and what they perceive as deviance, and a slavish hierarchical acceptance of an order that we would consider stifling and deeply unpleasant.
Examples of the active destabilisation that has sadly been engaged in in the Balkans include the recent attempted coup in Montenegro, which was allegedly carried out by the GRU—Russia’s Main Intelligence Directorate—and the handing out of Russian passports to Serbians in the Balkans. The aim of that is to give the Russians the ability to interfere in politics in that part of the world and, in the worst-case scenario, to create the destabilising, small-scale conflicts that have marked Russia’s behaviour in the former Soviet states. There is also economic and political pressure in mainstream Serbia to try to get the country, and powerful individuals within it, to turn away from a broadly pro-western, pro-EU model.
What can we do about that? From my experiences in former Soviet states, the easiest things are probably free trade and free movement—all those things with the word “free” in—as well as support in every conceivable way for civil society, which the EU’s fundamental rights will help to grow. That is the fundamental basis on which democracy will be strengthened on the basis of our alternative—a broadly pro-western, liberal alternative —with a rejection of more aggressive, destabilising nationalism. For those reasons, the Bill is somewhat important to us, but it is extremely important to the Serbians.
Paul Scully (Sutton and Cheam) (Con)
We are still a member of the EU, so it is right that we proceed with the Bill as quickly as possible. We are not talking about leaving the EU on bad terms, so it is right that we spend time considering such cases as good members of the EU. Two of the four procedures that we are considering under the Bill involve giving Serbia and Albania observer status in the European Union Agency for Fundamental Rights. The agency replaced the European Monitoring Centre on Racism and Xenophobia. It collects data about fundamental rights and seeks to engage the public and civil society on tackling such issues. That sounds to me very much like the work of the Council of Europe. I have returned this morning from Strasbourg, where the plenary session of the Parliamentary Assembly of the Council of Europe is still going on. That body needs a lot of reorganisation and work to bring it up to scratch. However, there was mention earlier of what we might do post-Brexit to engage with such agencies, and it occurs to me that there would be an opportunity, if we were so minded, for us to consider how we might bolster an organisation such as the Council of Europe and wrap things up, rather than duplicating effort.
I think that the last time I was in Strasbourg was during the April session, and I opened up my locker yesterday to find my speaking notes from that trip. The Council of Europe building, which sits next to the Strasbourg European Parliament building, is essentially mothballed. There is a lot of waste and a lot of duplication, and we could work with our European colleagues and partners to ensure that we streamline things and focus on the frontline of protecting people’s fundamental rights. This debate will affect many millions of people.
Albania and Britain have some quite odd but big links. C. B. Fry was offered the monarchy of Albania, which he turned down, giving rise to the reign of the wonderfully named King Zog I. Norman Wisdom is also fêted in Albania; I think he has a statue in Tirana. The reason why I know these two bits of pub quiz trivia and little else about Albania was mentioned by the hon. Member for Glenrothes (Peter Grant): Albania has been a very closed country for a long time. It is important that we work however we can to open up that country and keep it progressing, joining the international community in the fullest possible way and protecting people’s rights.
I welcome the accession of Serbia and Albania to the agency, but I also want to say a word about the Canadian aspect of the Bill, as we consider competition law ahead of the ratification of the CETA deal. I have been lucky enough to travel around the world over the past few years to places such as Bangladesh, Burma, Saudi Arabia, the Emirates and Taiwan, and they have all been looking at how they can work with the UK through free trade deals. I am excited about the prospect of having free trade with as many countries as we can. I do not care if the EU is involved in this free trade—we need to widen it out so that we can break down barriers wherever they exist. Working on CETA and against anti-competition procedures can only be a good thing for our European partners. Although we might not be around in the EU to benefit from the CETA deal, it is only good for European and global trade that we should push this Bill through.
Question put and agreed to.
Clause 1 accordingly ordered to stand part of the Bill.
Clause 2 ordered to stand part of the Bill.
The Deputy Speaker resumed the Chair.
Bill reported, without amendment.
Third Reading
Margot James
I beg to move, That the Bill now be read the Third time.
The brief explanation that accompanied the clause stand part debate in Committee covered all the points that need to be made about this short Bill. I thank all hon. Members who have contributed so fully, and I am grateful for their support for the measures. I wish the Bill an equally swift passage through the other place and on to Royal Assent.
Question put and agreed to.
Bill accordingly read the Third time and passed.
Grahame Morris (Easington) (Lab)
On a point of order, Madam Deputy Speaker. With your permission, I would like to pay tribute to a loyal servant of this House, Trevor Ford, who has been a Doorkeeper for more than 20 years and is retiring today. He is from my region; he was actually born in Gateshead, but is a proud red and white Sunderland supporter all the same. He served with great distinction in the Royal Air Force from 1969 to 1992 and completed tours in both Northern Ireland, during the 1970s, and West Germany. In 1996, he became a Doorkeeper here in the House of Commons. Many of us will know that Trevor has worked at almost every post in and around the Chamber; he has worked in the Members’ Lobby, at the back of the Speaker’s Chair, in the Strangers Gallery and, more recently, in the Special Gallery. He has been the Bar Doorkeeper and has led the Speaker’s Procession on many occasions. He is a thoroughly well liked, thoroughly decent individual, and he has served this House with great distinction for 21 years. On behalf of the whole House, I would like to thank him for his loyal service and wish him well on his retirement.
Madam Deputy Speaker (Mrs Eleanor Laing)
On a technical matter, I thank the hon. Member for Easington (Grahame Morris) for raising that point of order. It was, of course, not a point of order for the Chair, but I am delighted that he took the opportunity to draw to the attention of the House the fact that this is Trevor Ford’s last day in his current office. On behalf of everyone in the whole House, I would like to add our very grateful thanks to Trevor Ford, who has carried out his duties with great dignity over many, many years. All of us who are elected to this House know very well, every minute of every day, that we could not do our duties if we did not have the support and absolute loyalty of the other servants of the House, who carry out their duties so well. We appreciate that what Trevor Ford has done over many years often goes without notice, but we notice all the hard work and all the dedication. I am absolutely delighted that the House has this momentary opportunity to pay tribute to Trevor’s many, many years of service. I should just say for the record that while I have been saying this he has managed to stand to attention the whole time—[Hon. Members: “Hear, hear.] It is unusual that we can manage to pay a tribute such as this, but let me give our very sincere thanks from the whole House. We wish Trevor all the very best for the future.
European Union (Approvals) Bill
Wednesday 11th October 2017
(7 years, 1 month ago)
Lords ChamberRead Full debate European Union (Approvals) Act 2017 Read Hansard Text
European Union (Approvals) Bill
Wednesday 25th October 2017
(7 years ago)
Lords ChamberRead Full debate European Union (Approvals) Act 2017 Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Prior of Brampton) (Con)
The purpose of this Bill is to approve four draft decisions of the Council of the European Union. All four draft decisions rely on Article 352 of the Treaty on the Functioning of the EU. This allows the EU to take action to attain the objectives set out in the EU treaties, for which there is no specific power given. This can be done only with the approval of the European Parliament and the unanimous support of all EU member states.
Before the UK can agree these draft decisions at the Council, Parliament must first give its approval. Section 8 of the European Union Act 2011 provides that a Minister may vote in favour of an Article 352 decision only where the draft decision is approved by an Act of Parliament. The measures in the Bill have already been approved in another place, and I am pleased that noble Lords will also have the opportunity to scrutinise and decide whether to approve them.
The UK is leaving the EU and, until that process has concluded, the UK remains a full member of the EU and all the rights and obligations of EU membership remain in force. This includes exercising the UK’s vote in the Council of the European Union on these four draft decisions. Keeping that in mind, we are content that all four decisions are reasonable, proportionate, in keeping with our best interests and will not result in any additional financial burdens on the UK.
As I have said, Article 352 decisions must be agreed by all EU member states unanimously. When all member states are in a position to vote on the decision, the European Council will schedule a meeting of the Council of the European Union. If all member states vote to approve the draft decisions at that meeting, the European Parliament will be asked in turn to approve the draft decisions. If it does so, the decisions are adopted into EU law. All other member states, apart from the UK, have agreed the decisions. We do not believe that any of these draft decisions should be considered contentious in any way.
The first two decisions will enable two countries, the Republic of Albania and the Republic of Serbia, to be granted observer status in the EU’s Fundamental Rights Agency. The Fundamental Rights Agency was set up to support the European institutions and EU member states by improving the knowledge and awareness of fundamental rights issues in the EU, with a view to ensuring respect for fundamental rights. The agency does this through the collection and analysis of information and data. It can also formulate opinions on specific topics, either on its own initiative or at the request of EU institutions. It also has a role in communicating and raising awareness of fundamental rights, but it cannot hear individual complaints.
EU accession candidate countries can be given observer status at the Fundamental Rights Agency. This allows the agency to collect and analyse fundamental rights data from those countries, but does not allow them the right to vote in decisions as part of the agency’s management board. Albania was granted EU candidate status in June 2014. The UK supported the awarding of EU candidate status on the condition that Albania redoubled its reform efforts, with particular focus on justice and home affairs, especially tackling organised crime, corruption and illegal migration. The UK welcomed Albania’s progress in adopting legislation towards a judicial reform package in July 2016. Albania must now fully implement the judicial reform package as soon as possible so that this can underpin other reforms.
Serbia was granted EU candidate status in 2012 and accession negotiations were launched in January 2014, with the first four negotiating chapters opened during 2016. The UK continues to support Serbia on its reform path, including through funding projects in Serbia. Serbia has more work to do on anti-discrimination policies, to improve the situation of vulnerable people and to ensure freedom of expression. Observer status at the Fundamental Rights Agency should help Albania and Serbia to reform in the areas I have mentioned. Albania and Serbia should also be allowed to benefit from instances of good practice and evidence from other EU member states in relation to human rights. The Government are therefore satisfied of the need to support these two decisions.
The third and fourth decisions are necessary to implement a co-operation agreement between the EU and Canada on competition enforcement. The decisions will allow the agreement to be signed and allow conclusion of the agreement after it has been approved by the European Parliament. This competition co-operation agreement will replace an existing agreement that has been in place since 1999. It replicates and builds upon the provisions in the earlier agreement by allowing the European Commission and the Canadian Competition Bureau to exchange evidence obtained during investigations, including confidential information and personal data. The existing co-operation agreement with Canada dates from June 1999 and, at that time, the exchange of evidence between the parties was not regarded as needed. In the meantime, the bilateral co-operation between the European Commission and the Canadian Competition Bureau has become more frequent and deeper as concerns substance.
The absence of the possibility of exchanging information with the Canadian competition authority is regarded as a major impediment to effective co-operation. The proposed changes to the existing agreement will allow the European Commission and the Canadian Competition Bureau to exchange evidence which both sides have obtained in their investigations. This will, in particular, be useful in all cases where the alleged anti-competitive behaviour affects transatlantic or world markets. Many worldwide or transatlantic cartels include Canada, and, via Canada, the Commission will get a good opportunity to have access to additional information concerning these cartels.
Co-operation with third-country competition authorities is now standard practice in international competition investigations. In addition to the agreement with Canada, the European Union has concluded dedicated co-operation agreements with the US, Japan, Korea and Switzerland. The most advanced agreement is the one with Switzerland, which already contains provisions on the exchange of evidence, and the proposed update would bring the agreement with Canada to the same level as the one concluded with Switzerland.
I am sure that noble Lords will agree that the ability to share information for effective and efficient international competition enforcement is increasingly important. Access to information from other jurisdictions can be important in reaching a robust enforcement decision. Co-operation and information-sharing between jurisdictions can help ensure that enforcement bodies do not reach different decisions based on different sets of information.
The agreement contains general safeguards for the transfer of information and additional safeguards for the transfer of personal data. Personal data can be shared only with the express written consent of the person or company to which it relates. In the absence of consent, personal data can be shared only where both competition authorities are investigating the same related conduct or transaction. Furthermore, the transfer of personal data will be subject to independent oversight.
The agreement also contains safeguards for information provided by a company under the EU cartel immunity or leniency programme. This information cannot be shared without the express written consent of the individual or company that provided that information.
As I have noted, there are no financial implications for the UK from these decisions. I confirm that I do not consider that any of the Bill’s provisions engage the rights set out in the European Convention on Human Rights, so no issues arise about the Bill’s compatibility with those rights. It is intended that the Bill will come into force on the day of Royal Assent. For the reasons I have outlined, I commend the Bill to the House. I beg to move.
Baroness Ludford (LD)
My Lords, I thank the Minister for introducing this small but, I am sure, perfectly formed Bill. It is mildly bizarre that these relatively limited matters require primary legislation because of the European Union Act 2011. I was not allowed to be active in the House at that time as I was an MEP, but I imagine that the idea was to prevent big new federalist projects slipping into UK law through the European Communities Act. I am not sure that rather modest matters such as this were envisaged as needing primary legislation.
As the Minister said, Article 352 allows the EU to adopt an Act necessary for the attainment of treaty objectives when there is no specific legal basis available in the treaties. I am not the world’s expert on the treaties, but I am quite surprised that there were no other specific articles in the treaties that would have allowed Serbian and Albanian accession to the Fundamental Rights Agency and competition co-operation enforcement with Canada. If the Minister has any information on why there was not—there are plenty of articles in the treaty—perhaps he could enlighten us.
Clearly, it is a good thing to enable Serbia and Albania to become observers in the Fundamental Rights Agency. This highlights the way that human rights commitments underpin European peace and development. I had some experience of those two countries in my early years in the European Parliament, when I was on the European Parliament delegation for south-east Europe, as it was then called, when the countries were all lumped together. There has been progress towards candidate status for accession to the EU. I am sure the Minister would agree that, even with Brexit—if Brexit takes place—the UK is supportive of the accession ambitions of the western Balkan countries.
In moving the Motion on the Bill—I cannot remember whether the Minister repeated these words—the Minister in the other place, Margot James, highlighted that the mandate of the Fundamental Rights Agency is to improve knowledge and awareness of fundamental rights issues, so observer status for Serbia and Albania would help them benefit from the experience of good practice and evidence from EU member states on human rights. It is somewhat ironic that we are approving this decision to help Serbia and Albania in their progress towards accession to the EU, as we in the UK —on current plans—are moving away. It is also ironic that, in doing so, we are acknowledging the vital role that fundamental rights play in European co-operation. While we seek to leave the Fundamental Rights Agency and the EU Charter of Fundamental Rights, I would submit that those instruments are as important to the UK as they are to Serbia and Albania.
On the EU-Canada competition enforcement agreement, I have not seen any response from the Government to the question raised in the other place as to whether the UK would seek to participate in that agreement after Brexit. That might have to be preceded by the question of whether the UK will seek a competition enforcement co-operation agreement with the EU itself. As the Minister has pointed out, post Brexit, UK firms which do business in the EU 27 will be affected by this agreement. It would seem very unhelpful if the UK itself were not part of these arrangements, both between the UK and the EU and with third countries such as Canada. Could the Minister therefore let us know the state of play on those two dimensions, with the EU and regarding participation in the Canada agreement?
Could the Minister also amplify a little on what data protection safeguards are in the Canada agreement? He mentioned independent oversight. We will discuss on Monday, in Committee on the Data Protection Bill, the relevance of fundamental rights to data exchange. The Government do not plan to incorporate the Charter of Fundamental Rights, so there is an issue about the underpinning of fundamental rights on data protection in this country. That could, therefore, affect an adequacy decision by the European Commission on data transfers between the UK and the EU. Could he tell us whether, in the assessment of the Government, that matter has a relationship, as I would contend that it does, in situations such as this where data is going to be transferred, potentially between the CMA and the European Commission and then with third countries such as Canada? It seems to me that there are quite a few interlocking issues here, but particularly concentrated on the exchange and flows of data.
Is the UK going to seek an agreement with the EU on competition enforcement co-operation? Is it going to seek to participate in the EU-Canada agreement? Will a necessary prelude to both those instruments potentially mean that the UK has to secure an adequacy decision from the Commission on data transfers? I would be grateful if the Minister could answer those specific questions, either now or later. However, it will not surprise him to hear that, broadly, we on these Benches welcome the content of the Bill.
Lord Mendelsohn (Lab)
My Lords, I thank the Minister for his introduction to this Bill and for his affirmation that it is the Government’s assessment that the fiscal impact and merits are proportionate. As has been explained, this Bill fulfils the provision in Section 8 of the European Union Act 2011, which requires Parliament to approve draft decisions made under Article 352 of the Treaty on the Functioning of the European Union. Parliamentary approval will enable the United Kingdom to vote in favour of the draft decisions. This is a short Bill with limited financial and significant legal implications, and one for which there is a consensus in favour. We on these Benches lend our support to it today.
While we remain a member of the European Union, we should of course remain committed to ensuring that we fulfil our responsibilities as a member state until the time of withdrawal, and continue to scrutinise EU matters before Parliament.
I welcome the opportunity provided by the Bill to pave the way for Albania and Serbia to become observers in the work of the EU’s Fundamental Rights Agency. This is a provision afforded to nations like Albania and Serbia, which are not full EU members but have EU candidate status. We agree with the Government’s assessment that gaining observer status of the Fundamental Rights Agency will assist both those countries towards potential accession to the EU, if that is their will, subject to the EU’s policy of “firm but fair conditionality”. Monitoring fundamental rights issues covered by the Fundamental Rights Agency will enable Albania and Serbia to adapt their domestic legislation appropriately and further embed a commitment to human rights in their national politics. This is an outcome I think we can all support. Observing the work of the Fundamental Rights Agency further marks an important step in the progression of Albania and Serbia— subject of course to the provisions that the Minister outlined in his speech—towards a deeper embrace of democracy, individual rights and anti-discrimination.
The Fundamental Rights Agency provides EU institutions and member states with independent, evidence-based advice on fundamental rights. Its mission is:
“Helping to make fundamental rights a reality for everyone in the European Union”.
Its areas of work will be familiar to many in this House and include supporting access to justice, children’s rights, the integration of migrants and tackling racism, xenophobia and related intolerance or discrimination. These have remained the core values of Europe—ones which we hold dear and have been strong advocates for in Europe. It is very important that this move towards ever-greater co-operation with Albania and Serbia takes the form of participation in the Fundamental Rights Agency. While the Bill does not immediately confer observer status on Albania and Serbia, it paves the way for the EU-Albania and EU-Serbia Stabilisation and Association Councils to determine the terms of their observation, and is therefore an important step towards that outcome.
However, I would like to ask the Minister whether the transition deal they are seeking with the EU would include membership of the Fundamental Rights Agency. Will it include a continued say in the potential accession of other countries to the EU, while we are under those arrangements? The European Commission President Jean-Claude Juncker has said there will be no further EU enlargement before the end of his term in office on 1 November 2019. However, under the Government’s plans, we may at that point still be a member of various EU institutions. What are the Government’s thoughts at this stage about whether, under a transitional Brexit arrangement, the UK will seek to support EU expansion to western Balkan countries?
The second aspect of this Bill is the EU-Canada competition enforcement co-operation agreement. The purpose is to give approval for the revision of the agreement of 1999. The new agreement would expand the scope of information exchange between the European Commission and the Canadian Competition Bureau for the important purpose of anti-trust and merger investigations. The proposed new agreement would strengthen the hand of regulators in ensuring fair competition, tackling anti-competitive behaviour and pushing back against monopolising activity. That is a task that demands extensive international collaboration—increasingly so as the global economy transforms. The sharing of data, evidence and other information and working closely with international partners is ever more central to an effective competition regime. International collaboration is crucial for effectively identifying and investigating anti-competitive behaviour and for preventing cartels, mergers that distort the market and other damaging business practices.
While we remain an EU member state, a better-informed European Commission also means a better-informed UK Competition and Markets Authority. However, will the Government clarify their plans to ensure continued exchange of information related to competition investigations between the UK and Canada, and between the UK and the EU, after Brexit? It does not seem at all clear what competition regime arrangements we are heading towards in either a transitional arrangement or a final agreement. Indeed, the proposed changes for which this Bill seeks approval, and which we support, none the less highlight the risk that the EU may after Brexit share information about EU-based UK companies with Canada but not with the UK. Will the Minister provide some reassurance on that point and clarify whether the exact same level of information exchange will continue unabated on day 1 after Brexit? It is vital that we avoid any cliff edges, so that our competition regime is not suddenly isolated or disadvantaged in its duties, even temporarily.
The two distinct aims of this Bill have the potential to contribute significantly in their own way towards a more prosperous and peaceful Europe. That is very clearly in our interests, whether we are a member of the EU or not. A stable, democratic south-eastern Europe and a strong, flexible international competition regime are important ambitions, and to that end this Bill marks a welcome step forward.
Lord Prior of Brampton
I thank the noble Baroness, Lady Ludford, and the noble Lord, Lord Mendelsohn, for their broad support for the Bill. I suspect that the noble Baroness knows more about the history of those treaties than I do. I do not know why we require primary legislation: she may have a better guess than I do. But I am glad that she agrees with the substance of the Bill, at any rate. I note the ironies to which she referred in her speech. I more than note them, but I will resist the temptation to respond to them, if she does not mind.
Both the noble Baroness and the noble Lord raised issues about the Competition and Markets Authority post Brexit. The CMA is not a party to the agreement, so the agreement cannot simply be transitioned without amendment. Any future competition co-operation between the UK and Canada will have to be negotiated and agreed with the Government of Canada, and I suspect that the same has to be true about the relationship between the CMA and the EU post Brexit. That will have to be part of the negotiation. I of course entirely agree with the noble Lord that that will have to be negotiated during the transition period so that there is no cliff edge in that respect.
As far as data is concerned, the agreement contains general safeguards for the transfer of information and additional safeguards for the transfer of personal data. Personal data can be shared only with the express written consent of the person or company to whom it relates. I hope that that is enough on data for the noble Baroness today. If she would like me to write to her in more detail, she can let me know and I will do so, but I hope I have given her enough reassurance in that regard.
I think I have responded to the points raised by both the noble Lord and the noble Baroness. On that basis, I commend the Bill to your Lordships and ask that it has a Second Reading.
The Earl of Sandwich (CB)
My Lords, I apologise for not intervening earlier, but I have a very brief question. The country called Kosovo is very dear in our hearts. It is situated between Albania and Serbia. Has the Minister’s department or the Foreign Office conducted any impact assessment? There will inevitably be consequences for Kosovo, which has a special status, as the noble Lord knows, because it is not fully recognised by all members of the European Union.
Lord Prior of Brampton
I cannot answer that question today; I will write to the noble Earl. Is the question about the impact on Kosovo of Albania and Serbia joining the EU at some future point?
Lord Prior of Brampton
I will write to the noble Earl.
The noble Lord, Lord Mendelsohn, asked what our view would be if, between now and our leaving the EU, perhaps during the transition period, the EU decided it wanted to expand to cover, for example, Serbia, Albania and other countries. I think that our response is that we would not want to stand in the EU’s way in such circumstances. I am sure that if it wanted to go ahead, it would be curmudgeonly for us to stand in its way.
European Union (Approvals) Bill
Monday 13th November 2017
(7 years ago)
Lords ChamberRead Full debate European Union (Approvals) Act 2017 Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Henley) (Con)
My Lords, I understand that no amendments have been set down to this Bill and that no noble Lord has indicated a wish to move a manuscript amendment or to speak in Committee. Unless, therefore, any noble Lord objects, I beg to move that the order of commitment be discharged.
European Union (Approvals) Bill
Monday 27th November 2017
(6 years, 11 months ago)
Lords ChamberRead Full debate European Union (Approvals) Act 2017 Read Hansard Text
Royal Assent
Thursday 7th December 2017
(6 years, 11 months ago)
Lords ChamberRead Full debate European Union (Approvals) Act 2017 Read Hansard Text