Subsidy Control Bill

(Limited Text - Ministerial Extracts only)

3rd reading
Monday 28th March 2022 Lords Chamber

[Lord Ashton of Hyde (Con)]

My Lords, I have it in command from Her Majesty the Queen to acquaint the House that Her Majesty, having been informed of the purport of the Subsidy Control Bill, has consented to place her interest, so far as it is affected by the Bill, at the disposal of Parliament for the purposes of the Bill.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

For the benefit of noble Lords, I will first make a statement on legislative consent. As promised to the noble and learned Lord, Lord Hope, on Report and as I have sought to do throughout passage, I would like to update your Lordships’ House on the legislative consent process.

Your Lordships will understand that there remain differences of opinion between the devolved Administrations and the Government. This includes the Scottish and Welsh Governments’ retained in-principle objection to subsidy control being a reserved matter, and their objection to the inclusion of agriculture in the scope of the Bill. It is therefore with regret that I inform your Lordships that we have not been able to convince the devolved Administrations of the need for the UK Government to act in this key area. This is, of course, not the end of our engagement with the devolved Administrations. It is our intention to continue to work closely with them on the future regime, and accordingly our next steps will focus on agreements at working level to support the operation of the Act, including a memorandum of understanding in two parts.

I want to reassure noble Lords that it has never been our intention to proceed without consent in place. Our preferred approach throughout has always been to secure legislative consent Motions. I want to reassure the House that the Government remain fully committed to the Sewel convention and the associated practices for seeking consent. We will of course continue to seek legislative consent from the devolved legislatures when applicable.

[Lord Hope of Craighead (CB)]

I am grateful to the Minister for fulfilling his commitment and producing the report for which I asked. It is disappointing, but I am reassured by the latter part of his statement—that engagement with the devolved Administrations will continue. I very much hope that that will produce a more fruitful result than has been achieved so far.

[Lord Dodds of Duncairn (DUP)]

My Lords, could the Minister outline the position as far as the devolved Administration in Northern Ireland is concerned? He mentioned Scotland and Wales, but perhaps he could touch on what the situation is as far as any legislative consent from the Northern Ireland Assembly—before it was dissolved at the start of this week for the Assembly elections. He is aware—this was raised in Committee—of the grave concerns that there is there now a dual subsidy control system: the EU system in Northern Ireland and the GB system now applying to England, Scotland and Wales. This could, as he said in his own letter to the chair of the Protocol on Ireland/Northern Ireland Sub-Committee on 22 March, cause real problems and confusion for Northern Ireland.

[Lord Callanan (Con)]

I thank noble Lords for their contributions. In response to concerns of the noble Lord, Lord Dodds, of course I understand the points he is making. He will be aware that negotiations continue on the operation of the Northern Ireland protocol. The noble Lord and I have discussed this a number of times. The Northern Ireland Executive have not been able to respond formally to our request for a legislative consent Motion, given their current status. We will, of course, continue to work closely, as far as possible, with the Executive and with the officials. I will be certain to update the noble Lord when I am able to do so.

--- Later in debate ---

Moved by

[Lord Callanan]

That the Bill do now pass.

[Lord Callanan (Con)]

I am delighted to open the debate. I am grateful to all noble Lords who have participated in the many debates that we have had across Your Lordships’ House, to create a new domestic regime that will deliver on our international obligations but, crucially, will enable central government, the devolved Administrations and public authorities the length and breadth of the United Kingdom to deliver for their people and their communities.

It is my great pleasure to thank all those who have supported the progress of this Bill. First, I thank my noble friend Lady Bloomfield; it is always a great pleasure to work alongside her. I express my thanks for the considerable contributions that have been made on the Floor of this House in relation to this Bill. I thank, particularly, the Opposition—the noble Lord, Lord McNicol, and the noble Baroness, Lady Blake—for their constructive challenge and the discussions we have had on the Bill, most notably on the issue of transparency, where we have been able to move a lot in response to the concerns raised in particular by the Opposition. It is also worth paying tribute to noble Lord, Lord Fox, for his engagement, and to his Liberal Democrat colleagues for their role in improving this legislation, particularly with regard to devolved powers—and for his personal forbearance with me in my illness during the latter stages of Report. I thank the noble Lord, in particular, for bearing with me.