Economic Activity of Public Bodies (Overseas Matters) Bill
(Limited Text - Ministerial Extracts only)
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Baroness Chapman of Darlington (Lab)
My Lords, I will be very brief. I do not want to repeat some of the excellent points made, but I do have an amendment in this group about requiring a legislative consent Motion. For us, this is primarily an issue of respect. It saddens us: from the internal market Act, relationships between the UK Government and the devolved Governments started to go really badly wrong. It seems to happen again and again. I remember a couple of weeks ago, in this Chamber, the noble Lord, Lord Moylan, referred to the Welsh Government’s desire to work to support the Welsh language as a fascist attitude. That has played on my mind ever since. Things have really deteriorated to such an extent that, in the personal relationships between politicians in the UK Government and the devolved Governments, which politicians used to take pride in putting some effort and work into, nobody seems to even try anymore. Bills such as this one come along where the Government do not seem to care whether it has any legislative consent and do not even try to persuade their colleagues in the devolved Administrations to see the benefits of a particular piece of legislation. That is very sad. I regret that deeply, and the Government really ought to do better.
This is primarily about freedom of expression for people who have been elected in their own right to represent their communities. It is wrong that Clause 4 prohibits statements. We will come on to that later, but they are to be gagged by the Bill, and that is to be regretted. It is a backwards step. We will debate that another day. I hope that noble Lords will understand just how offensive the restrictions in that clause are to elected Governments in Scotland, Wales and Northern Ireland.
As others have said, the Bill is disproportionate and unnecessary. The Minister and I have had exchanges about things raised by the noble Lord, Lord Foulkes, about the Scottish Government having offices in other nations, and he says that this is wrong because foreign policy is the UK Government’s domain, He is right about that—he does not speak for the Labour Party on these issues and is not right in the complete sense on the points that he makes on this. The Government agree and say that this is a terrible problem, that it is confusing for our partners overseas and that something should be done, but they are doing nothing about it. Instead, they feel that this is causing confusion in foreign policy. I just do not believe it. I do not believe that any other Government anywhere in the world is confused about our foreign policy because of some statement that the noble Baroness, Lady Noakes, says has been put in a drawer somewhere in Edinburgh, was passed 10 years ago, and is somehow causing such diplomatic confusion. I do not see any evidence of that whatsoever.
It is sad that the Government no longer even try to pretend that they want to work in partnership with devolved Governments. We can do so much better. The UK Government already have sanctions powers, and they are now seeking unnecessarily to fetter and gag devolved Governments. This shows a terrible lack of respect and I regret it very much.
The Minister of State, Cabinet Office (Baroness Neville- Rolfe) (Con)
My Lords, the amendments put forward by the noble Baronesses, Lady Bryan of Partick and Lady Chapman of Darlington, and the noble Lord, Lord Hain, seek to remove Wales, Scotland and Northern Ireland from the territorial application of this Bill. I am sorry that the noble Baroness, Lady Ritchie, and the noble and learned Lord, Lord Thomas, are not here tonight, as they usually are in these discussions.
I disagree with these amendments for two reasons. First, the intention of this Bill is to ensure that the UK speaks with one voice internationally. It will safeguard the integrity and singularity of the UK’s established foreign policy, which is set exclusively for the whole of the United Kingdom by the UK Government. My noble friend Lady Noakes explained that well—political and moral disapproval is the issue here—and she gave a Scottish example. The noble Lord, Lord Wallace, takes a different view.
I see it this way: international relations and foreign policy are reserved matters and remain the responsibility of the UK Government and the UK Parliament. Removing Scotland, Wales and Northern Ireland would be out of line with the devolution settlement and undermine one of the main aims of the Bill—one UK foreign policy decided by the UK Government. I appreciate the view of the noble Lord, Lord Hain, that decisions should be made as close to local level as possible. However, I do not believe that this would be appropriate for international relations, which is rightly reserved for the UK Government. The UK cannot effectively conduct a single foreign policy if each devolved Administration or indeed local authorities, as I think we were talking about, are conducting a separate policy.
The second reason I oppose these amendments is that the BDS campaigns, which risk undermining community cohesion, are a UK-wide problem. I will illustrate this briefly with some examples. In Wales, a 2014 motion passed by Gwynedd Council called for a trade embargo with Israel. In 2020, as the noble Baroness, Lady Noakes, pointed out, the Welsh Government informed the Welsh Parliament that they intended to issue advice to all Welsh public authorities that they may exclude from tendering any company that conducts business with the Occupied Territories, whether directly or via third parties. Only after intervention from UK Lawyers for Israel did the Welsh Government defer this decision.
In Scotland, in January 2009, West Dunbartonshire Council passed a motion agreeing to boycott all Israeli goods. That motion was reaffirmed in June 2010 and May 2011. In December 2010, Stirling Council passed a motion resolving to
“reassess its current procurement arrangements and ensure future agreements and contracts boycott all Israeli goods”.
In March 2013, Clackmannanshire Council passed a motion to
“resist, insofar as legislative considerations permit, any action that gives political or economic support to the State of Israel”.
In Northern Ireland in 2016, Derry and Strabane Council voted in favour of BDS. A motion was passed to investigate the most practical means of implementing the BDS campaign in the council. Finally, in Belfast in 2019, councillors attempted to bring forward a resolution to support BDS.
For these reasons—the need for a single UK foreign policy and the record of boycott campaigns across the UK—it is vital that the Bill’s provisions extend to each of the jurisdictions of the UK. This includes all public authorities, as defined in Section 6 of the Human Rights Act 1998. This includes Ministers in the Devolved Administrations. This may alter their executive competence, so the legislative consent process has been engaged, as the noble Baroness, Lady Chapman, explained. We have therefore sought legislative consent from the devolved legislatures to apply the bans in Clauses 1 and 4 to Ministers in Scotland, Wales and Northern Ireland.
International relations and foreign policy are reserved matters and remain the responsibility of the UK Government and the UK Parliament. The Bill legislates in this area.
The noble Baroness, Lady Bryan of Partick, emphasised that the devolved Administrations are required to act within the European Convention on Human Rights. The Bill will not compel public authorities to make a decision that would put them in breach of the convention, and it will not interfere with the rights of any public authority. One of the reasons why we chose the public authorities definition is that these bodies do not have convention rights, so the Bill is compliant with the convention, including the Article 10 right to freedom of expression.
In response to the noble Baroness, Lady Randerson, I would like to reassure her that the powers in the Bill can be used only to narrow the scope of the ban, as it would be set in primary legislation. They cannot be used to place broader obligations on the devolved Administrations than what was agreed by Parliament.
Lord Warner (CB)
I am sorry to interrupt the Minister, but I am still trying to puzzle out what happens, to take the example of Scotland, if there is a great deal of resentment about this legislation, particularly Clause 4. What happens if the Scottish Parliament, presumably protected by privilege, decides to have a debate, there are a number of decision-makers under Clause 1 in that debate, and they voice their view in a way that is totally different from the Government’s view on that particular country and the issue they are debating? Would the UK Government then wind itself up to fine them? I am not quite sure what the fine levels will be. What if the Scottish Parliament then has another debate and decides not to pay the fine? This does not seem a fanciful position, given that the Government seem to be going out of their way to annoy the devolved Administrations. What will the Government actually then do, in practice?
Baroness Neville-Rolfe (Con)
If I may, I will come back to that at the end of the speech, because I want first to try to explain what we are doing with the devolved Administrations. The noble Baroness, Lady Randerson, said that the WTO already places non-discrimination requirements on public authorities. Although this is the case, these obligations do not cover all countries and territories and apply only to procurement decisions, not investment decisions.
To return to the subject of legislative consent, I think it is fair to say that we are disappointed that the Senedd and the Scottish Parliament have refused to give their consent to apply the ban to their Ministers and the respective departments and agencies. It is always the Government’s intention to legislate with the support of the devolved Administrations and, where relevant, the consent of the devolved legislatures. We will therefore continue to ensure that the interests of the devolved Administrations, including the devolved assemblies, are fully taken into account. Contrary to the noble Baroness’s suggestion, we do engage with the devolved Governments. I was in Northern Ireland last week, I visited the Welsh Government relatively recently, and my office has contacted the offices of the relevant Ministers in the Scottish and Welsh Governments. I hope to meet with them in the coming weeks to discuss further how we can gain their support for the Bill.
Lord Hain (Lab)
I will be brief, given the hour. What advice would the Minister give to Welsh local authorities if they refuse to procure or encourage any local companies to do business with Xinjiang province in China because of its oppression of the Uighur Muslims? China, unlike Russia and Belarus, is not listed in the Bill in that way.
Baroness Neville-Rolfe (Con)
I am not quite sure what will happen about Xinjiang; that is a foreign affairs question. Obviously, although it is not referred to in the Bill, we have made it clear that we will use the Bill, where appropriate, to exempt areas. We have already said we will use the powers in relation to Russia and Belarus. I am going to talk to the Welsh Government, and I am sure this is a question that will come up. As I said, I hope to meet them in the coming weeks to discuss further how we can gain support for the Bill and what would be the right approach.
In Northern Ireland we have been formally seeking consent from the Northern Ireland Assembly since the restoration of power sharing and will continue to do so. The noble Baroness, Lady Bryan, asked for reassurances that we have engaged with the Northern Ireland Executive. Officials have discussed the Bill’s provisions with officials in Northern Ireland and have been actively pursuing engagement with the Northern Ireland Executive now that power sharing has been restored. I hope to be able to meet Ministers in the Executive to seek their consent for the Bill soon.
In response to the concerns expressed by the noble Lord, Lord Warner, about what would happen if a public authority does not pay a penalty, we would advise public authorities to reconsider before refusing to pay a fine as the enforcement process, which I think we will come on to discuss on subsequent days, makes it clear that it could end up being enforced by the respective court system of the devolved area. The enforcement authority can apply to the court for the enforcement of an information notice. A failure to pay a fine is a civil debt, to answer the point that was made in an earlier group by the noble Lord, Lord Collins, under Clause 10(3). This will be through the courts in the relevant devolved jurisdiction, so if a Scottish council was subject to an information notice or issued with a fine, that would be enforced by the Scottish courts.
I am conscious it is late. We have had a lively conversation on this subject. I hope that for the reasons I have set out the noble Baroness will be willing to withdraw her amendment.
Baroness Bryan of Partick (Lab)
I thank the Minister for her response and everybody who has participated in this discussion. The Minister and the noble Baroness, Lady Noakes, believe that there should be one voice in all international policy, but procurement is a devolved issue and, as we have heard, Clauses 1 to 4 require legislative consent. The worry is they require it, so they can ignore it, but I hope not.
The noble Lord, Lord Hain, put his finger on the issue of subsidiarity versus centralisation. Are we going to have one centralised procurement body for the whole of the UK that will choose which procurement is in line with the Government of the day’s international policy? I do not think anybody wants to go down that route. There is strong concern about the backpedalling, as it was described, and the resentment that this will cause. Remember that 50%-plus of voters support independence in Scotland. They might not be ready to vote for it at this time, but give them a push further along, and we might find that that happens. More Welsh voters are coming to support independence, and Northern Ireland is being held together by constant vigilance. I hope that the concerns raised here are taken seriously and that the Government engage properly with the devolved Administrations, discuss their trade plans with them and do not treat them as a minor inconvenience that gets in the way of the big issues of government. I beg leave to withdraw the amendment.