Draft European Bank for Reconstruction and Development (Further Payments to Capital Stock) Order 2024

Tuesday 12th November 2024

(1 day, 10 hours ago)

General Committees
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The Committee consisted of the following Members:
Chair: Sir Roger Gale
Butler, Dawn (Brent East) (Lab)
† Campbell-Savours, Markus (Penrith and Solway) (Lab)
† Cocking, Lewis (Broxbourne) (Con)
Cooper, Daisy (St Albans) (LD)
† Darling, Steve (Torbay) (LD)
† Davies, Gareth (Grantham and Bourne) (Con)
† De Cordova, Marsha (Second Church Estates Commissioner)
† Glindon, Mary (Newcastle upon Tyne East and Wallsend) (Lab)
† Jopp, Lincoln (Spelthorne) (Con)
† Kearns, Alicia (Rutland and Stamford) (Con)
† Kumar, Sonia (Dudley) (Lab)
† Martin, Amanda (Portsmouth North) (Lab)
† Ranger, Andrew (Wrexham) (Lab)
† Siddiq, Tulip (Economic Secretary to the Treasury)
† Taylor, David (Hemel Hempstead) (Lab)
† Wakeford, Christian (Bury South) (Lab)
† Walker, Imogen (Hamilton and Clyde Valley) (Lab)
William Opposs, Committee Clerk
† attended the Committee
First Delegated Legislation Committee
Tuesday 12 November 2024
[Sir Roger Gale in the Chair]
Draft European Bank for Reconstruction and Development (Further Payments to Capital Stock) Order 2024
09:25
Tulip Siddiq Portrait The Economic Secretary to the Treasury (Tulip Siddiq)
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I beg to move,

That the Committee has considered the draft European Bank for Reconstruction and Development (Further Payments to Capital Stock) Order 2024.

It is a pleasure to serve under your chairmanship, Sir Roger.

Allow me briefly to take the Committee through the background and purpose of the draft order. The European Bank for Reconstruction and Development is a multilateral development bank headquartered in London. It provides high-quality project financing to support economic and private sector development in 40 different countries. The UK is the bank’s joint second-largest shareholder and hosts the EBRD’s headquarters in Canary Wharf, London.

The UK engages with the EBRD on several UK foreign, development and economic policy priorities across its countries of operation, including assistance for Ukraine, supporting the transition to a green, low-carbon economy, and promoting equality of opportunity for women, young people and other underserved communities. The EBRD has been a long-standing partner to Ukraine. Over the past 30 years, it has been the largest institutional investor in Ukraine, with more than €20 billion invested in almost 600 projects. The bank provides technical assistance, lending, guarantees and grants to support policy reform and financial assistance in key sectors including energy, infrastructure and agribusiness. The UK welcomes the EBRD’s distinctive contribution to supporting Ukraine’s resilience and recovery in the face of Russia’s illegal invasion. The EBRD’s support since 2022 has amounted to over €4.5 billion for essential priorities, including supporting Ukraine’s critical national infrastructure against deliberate and repeated attacks by Russian forces.

The UK and other shareholders have agreed that the EBRD should continue its operations to support Ukraine, and that this support should be long-term and predictable. Given the exceptional circumstances in Ukraine and the EBRD’s commitment to sound banking principles, continued financial support was not possible without additional shareholder support. Last year, shareholders concluded that a paid-in capital increase is the most effective, efficient and broad-based means of enabling the EBRD to continue to finance Ukraine. Accordingly, in December 2023, the UK and other shareholders agreed to increase the EBRD’s paid-in capital by €4 billion.

The draft order is being made to enable the Government to participate in the capital increase in proportion to its current shareholding, with a contribution of €343.6 million paid in five equal annual instalments between 30 April next year and 30 April 2029. As determined by the OECD’s Development Assistance Committee, 71% of that contribution will be classified as official development assistance. The capital increase enables the EBRD to continue to support Ukraine’s resilience and recovery during wartime and in reconstruction through the provision of high-quality project financing, while securing the EBRD’s financial standing and its ability to maintain support to its other countries of operation.

With the additional capital, the EBRD plans to provide a sustained level of annual investment to Ukraine of about €1.5 billion during wartime, increasing to €3 billion annually once reconstruction begins. Over the course of a decade, that will result in tens of billions of euros of financing for Ukraine as the EBRD leverages the paid-in capital on the financial markets. I hope the Committee will agree that this complements the UK’s military and fiscal support for Ukraine and enables the EBRD to continue providing financing in support of the sustainable development goals across its countries of operation.

This is a topic that all parts of the House have been united on in support of Ukraine. I therefore recommend the draft order to the Committee.

09:29
Gareth Davies Portrait Gareth Davies (Grantham and Bourne) (Con)
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It is a pleasure to serve under your chairmanship as always, Sir Roger.

It is worth remembering that the European Bank for Reconstruction and Development was founded in 1991 to support the transition to market-oriented economies in central and eastern Europe following the collapse of socialist and communist regimes. Since then, the bank has invested more than €200 billion in more than 7,000 projects across three continents.

As a founding member of the EBRD, the UK is a generous contributor to the bank’s work. It was one of the first donors to contribute to the bank’s Ukraine stabilisation and sustainable growth multi-donor account and, in October 2023, it signed a statement of intent with the bank to help UK companies do business in Ukraine. The draft order enables the Government to make a payment of €343.6 million to the EBRD for the purchase of additional capital stock. As the Minister rightly said, this follows a decision by the EBRD’s board of governors in December 2023 to increase the bank’s capital by €4 billion.

The Opposition fully support the Government’s decision to purchase additional stock in the EBRD. Alongside ensuring that the UK maintains its stake and voting power in the EBRD, the capital increase is vital to sustaining the ongoing work in Ukraine and ensuring the bank’s ability to meet the needs of other countries in its portfolio. However, given the size of the UK’s investment, it is right that the Opposition should seek clarity on three specific, simple points, which I hope will be straightforward for the Government.

First, can the Minister tell us whether other member countries of the EBRD are increasing, decreasing or maintaining their stock shares in the bank? Secondly, as she mentioned, the EBRD has green objectives, so is support for Ukraine subject to the EBRD’s target for at least half of its business volume to be green and does that allow for Ukraine’s most urgent funding needs to be prioritised? Finally, does she believe that this capital increase will be sufficient for the EBRD to fulfil its overall mandate, or should we expect further capital requests in the future? We support the draft order, but we would be grateful for clarification of those points.

09:32
Tulip Siddiq Portrait Tulip Siddiq
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It is always a pleasure to see the hon. Member for Grantham and Bourne in his place. I thank him for his support for the measure, and he is right to ask those questions.

The other shareholders of the bank have confirmed their intention to participate in the capital increases. That includes other members of the G7. I am happy to write to the hon. Member with specifics if that would be helpful.

The capital increase will ensure that the EBRD can increase lending to support Ukraine’s resilience, while maintaining activity in all its countries of operation; it is not dependent on other factors. In 2023, the EBRD’s total investment in Ukraine was €2.1 billion, compared with a total investment of €13.1 billion across all countries of operation.

The hon. Member also asked about climate change. The EBRD’s aim is for more than 50% of its total investment in 2025 to be towards green projects, reducing net annual greenhouse gas emissions by at least 25 million tonnes. Since 2006, the EBRD has invested €49 billion in more than 2,600 green projects, which are expected to reduce carbon emissions by 124 million tonnes yearly. I thank the hon. Member for his constructive comments and his questions.

The draft order will enable the UK to participate in a capital increase for the EBRD, which will improve the bank’s financial capacity to increase lending to support Ukraine’s resilience while maintaining activity in all countries of operation. I am happy to write to the hon. Member on the point about the G7 countries. I hope the Committee will join me in supporting the draft order.

Question put and agreed to.

09:34
Committee rose.

Draft Radio Equipment (Amendment) (Northern Ireland) Regulations 2024

Tuesday 12th November 2024

(1 day, 10 hours ago)

General Committees
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The Committee consisted of the following Members:
Chair: † Mr Clive Betts
† Alaba, Mr Bayo (Southend East and Rochford) (Lab)
† Baldwin, Dame Harriett (West Worcestershire) (Con)
Cooper, Daisy (St Albans) (LD)
† Coyle, Neil (Bermondsey and Old Southwark) (Lab)
† Dollimore, Helena (Hastings and Rye) (Lab/Co-op)
† Eccles, Cat (Stourbridge) (Lab)
† Fleet, Natalie (Bolsover) (Lab)
† Freeman, George (Mid Norfolk) (Con)
† Gill, Preet Kaur (Birmingham Edgbaston) (Lab/Co-op)
† Hamilton, Fabian (Leeds North East) (Lab)
† Hudson, Dr Neil (Epping Forest) (Con)
† Jones, Clive (Wokingham) (LD)
† Lamb, Peter (Crawley) (Lab)
McMorrin, Anna (Cardiff North) (Lab)
† Madders, Justin (Parliamentary Under-Secretary of State for Business and Trade)
† Osborne, Kate (Jarrow and Gateshead East) (Lab)
† Wood, Mike (Kingswinford and South Staffordshire) (Con)
Kevin Maddison, Lucinda Maer, Committee Clerks
† attended the Committee
The following also attended (Standing Order No. 118(2)):
Allister, Jim (North Antrim) (TUV)
Swann, Robin (South Antrim) (UUP)
Second Delegated Legislation Committee
Tuesday 12 November 2024
[Mr Clive Betts in the Chair]
Draft Radio Equipment (Amendment) (Northern Ireland) Regulations 2024
16:30
Justin Madders Portrait The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
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I beg to move,

That the Committee has considered the draft Radio Equipment (Amendment) (Northern Ireland) Regulations 2024.

It is a pleasure to see you in the Chair, Mr Betts. The draft regulations, which were laid before the House on 9 October, will implement common charger measures in Northern Ireland. In particular, USB-C will become the common charging point for a range of portable electrical devices that require wired charging.

The instrument is expected to have limited impact in practice. Many manufacturers have already moved to USB-C to continue to supply the European Union market and, as a result, USB-C has effectively become the industry default in Europe—I am sure Members are at this moment looking at their chargers and phones to see whether they have already moved to USB-C. Industry tells us that it is using USB-C for the whole of the UK to avoid supply chain complexity. Devices that comply with common charger requirements will also be able to be legally placed on the GB market, so we consider it highly likely that the same devices will be available across the whole UK.

The common charger measures aim to reduce environmental waste, increase consumer convenience and save money for consumers, as they will not need to buy separate chargers for each device. We consider that it could help businesses and deliver consumer and environmental benefits, if we were to introduce a similar standardised requirement across the UK. Accordingly, we have launched a call for evidence on that issue. The implementation of common charger measures in Northern Ireland also ensures our compliance with international law, which facilitates Northern Ireland’s continued unique dual access to the UK internal market and the EU single market.

I will set out a bit of the background. The radio equipment directive 2014 established a framework of regulatory requirements for specific categories of electrical and electronic equipment that is placed on the EU market or put into service in the EU. When we were in the EU, the UK’s Radio Equipment Regulations 2017 implemented that directive into domestic law on a UK-wide basis.

In November 2022, the EU formally adopted the common charger directive, which amended the radio equipment directive. The EU common charger directive requires, among other things, a common charging solution based on USB-C for smartphones and certain other portable electronic devices—there is a full list in the regulations—that use wired charging. That will be implemented from December 2024 and for laptops from April 2026.

To provide for its continued unique dual access to the UK internal market and the EU single market, certain EU legislation continues to apply in Northern Ireland under the terms of the Windsor framework, including the EU radio equipment directive. The instrument will therefore amend the 2017 regulations to implement the latest changes in Northern Ireland, enabling them to be legally enforced.

This instrument introduces new regulatory requirements for specific categories of electrical and electronic equipment that use wired charging and are placed on the Northern Ireland market. It amends the 2017 regulations to provide for simplification, whereby USB-C will be the common charging port, meaning that one charger will work for multiple devices, bringing cost savings and environmental benefits. The instrument will standardise fast charging technology, meaning that the charging speed is the same when using any compatible charger for a device.

The instrument will also introduce the unbundling of the sale of a charger, meaning that consumers will have the option, when purchasing a new device, of whether to buy a charger alongside it. That will hopefully reduce electronic waste and costs for the consumer. There will also be additional visual and written information about charging characteristics, the power that the device requires and whether it supports fast charging, thereby improving the information available to consumers. That will help consumers to understand whether their existing chargers meet the requirements of new devices and help consumers to select compatible chargers.

The common charger measures will apply to certain categories of handheld devices, including smartphones that use wired charging from 28 December this year and to laptops from 28 April 2026. Offences will be amended to cover the common charger requirements that I mentioned, including to ensure that consumers are offered the choice of purchasing specific categories of electrical and electronic equipment without a charging device if they wish, and that equipment is accompanied by visual information showing whether a charging device is included.

I assure hon. Members that enforcement authorities will continue to take a proportionate approach to compliance and enforcement activities in accordance with the regulator’s code. In almost all cases, we expect that by working with and supporting businesses, compliance will be achieved without the need for recourse to criminal penalties.

The Northern Ireland Department of Justice has confirmed that it considers that the offences provided for by the instrument are consistent and proportionate and will not have any negative impact on the criminal justice system in Northern Ireland. Officials in the Office for Product Safety and Standards will provide industry guidance to ensure that businesses have all the information they need on how to comply with the new requirements, and they will liaise with Northern Ireland district councils, which are responsible for enforcing the radio equipment regulations in Northern Ireland, ensuring that they have all the necessary information to do that.

With USB-C charging effectively becoming the industry default, my view is that this measure could help UK businesses, if we provide regulatory certainty, and that consumer and environmental benefits could be delivered by introducing similar requirements across the whole of the UK, which is why we have launched the call for evidence. We expect the instrument to bring consumer and environmental benefits to Northern Ireland. It also ensures our compliance with international law in relation to Northern Ireland’s continuing dual access. I commend the draft regulations to the Committee.

16:36
Harriett Baldwin Portrait Dame Harriett Baldwin (West Worcestershire) (Con)
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As the Minister has set out so clearly, the instrument intends to give effect to the EU common charger directive, which applies in Northern Ireland, as is required under the Windsor framework agreement signed last year by the Conservative Government. We will therefore certainly not oppose this legislation. Accepting this regulation upholds the Windsor framework and contributes to the free-flowing trade within the UK, while protecting Northern Ireland’s place in our United Kingdom, and it safeguards the balance of the Belfast/Good Friday agreement.

I note that the Minister mentioned the Government’s plans to consult on a UK-wide common charging solution for electronic devices. I am sure, from a consumer convenience point of view, that we will all welcome a world in which we can be sure to find the right charger at the right time. I welcome what he said about the impact on the environment, because over time, there will be less plastic waste sitting in our drawers in our homes. However, I encourage the Minister, as he looks at the consultation responses, to consider our ability to remain independent from the EU by not blindly following this regulation across the whole UK and by consulting appropriately with all the businesses and retailers that will be affected.

Despite all the years that we were a member of the European Union, we still seem to have a situation where we all have different plugs. It is very much on the consumer’s side to welcome progress towards a world where we all have the same charger, but at the same time, I know that market forces may enable that outcome. We do not propose to oppose these regulations.

16:39
Jim Allister Portrait Jim Allister (North Antrim) (TUV)
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Of itself, of course, there is nothing controversial about the type of USB charger that one might use, but there is something very controversial in Northern Ireland, quite appropriately, about the source of this legislation. Here we are in this Parliament of the United Kingdom and all it can do is to nod through someone else’s laws.

The decision that in Northern Ireland a person must have the EU-style USB charger flows from a decision by parliamentarians in a foreign power. It was the parliamentarians of 27 other countries who decided that this would be the common charger to be used. And, of course, it was the protocol now called the Windsor framework—which did not change one word of the protocol—that decreed that Northern Ireland, in 300 areas of law, of which this is one, would not be subject to the laws made in this place, or in its devolved Assembly.

Neil Coyle Portrait Neil Coyle (Bermondsey and Old Southwark) (Lab)
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Would the hon. and learned Member just remind us how Northern Ireland voted in the Brexit referendum?

Jim Allister Portrait Jim Allister
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The Brexit referendum was a national vote, and it asked a simple question: “Do you want the United Kingdom to leave the EU?” It did not ask the question, “Do you want GB to leave, and leave Northern Ireland behind?” That is what we got, in that this United Kingdom surrendered control over those 300 areas of law to that foreign Parliament. The hon. Member may be comfortable with the fact that my constituents are disenfranchised in the making of the laws that govern them. I wonder whether he would he be so comfortable with that fact if it was his constituents who were disenfranchised in the making of laws, in those 300 areas, that govern them—I suspect not.

All I ask is that my constituents have the same rights —the same enfranchising rights—as everyone else’s constituents in Great Britain. Is that too much to ask? And yet, in the making of this regulation, this Parliament is answering that question: it is too much to ask, because Northern Ireland, we are told, must be subject to foreign colonial rule. That is what it is. When we say to an area, “You will be governed by laws, not that you make, or that your Parliament makes, but that a foreign Parliament makes,” that is the very essence of colonial rule, and that is what we are subjected to.

The degree to which the Government—of course, this was done under the previous Government—have abandoned sovereignty over Northern Ireland is illustrated by the explanatory document that accompanies these regulations. It says that there will be limited impact, but that the Government did not conduct an impact assessment. Why not? Well, paragraph 9.1 of the explanatory document tells us:

“A full Impact Assessment has not been prepared…because measures resulting from the European Union (Withdrawal) Act 2018 are out of scope of assessment.”

So laws that will affect my constituents are “out of scope” of assessment by this Parliament, and this Government, because the right to make those laws was given away to the European Parliament.

This is not about whether, in itself, the type of USB is controversial or not. It is about the constitutional point that Northern Ireland has been disenfranchised—robbed of the right to have its laws made in its own country, and robbed of the right, now, to even have an impact assessment, because those 300 areas of law are beyond the scope of assessment. That is why, for this proposal, there is only an EU impact assessment—no UK impact assessment. That, in a way, says it all.

George Freeman Portrait George Freeman (Mid Norfolk) (Con)
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The hon. and learned Member is making a powerful and coherent argument. I think what he is saying is that this may or may not be a good law, but that he would have liked its impact to have been assessed properly and the people of Northern Ireland to have had a say on it—the say that he has in the Committee today. Does he think, overall, that this is a good law, albeit one that, constitutionally, he would have preferred to have been passed a different way?

Jim Allister Portrait Jim Allister
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I said that what type of USB is used is not particularly controversial. But how it is made and imposed could not be more controversial, because it is imposed through the avenue of disenfranchising the people of Northern Ireland and saying, “You will have no say over whether it is a good or bad law. It is someone else’s law, and it will be imposed upon you.” That is the mischief that I am addressing. In that mischief lies the reason why this Parliament should not be a nodding dog to someone else’s regulation.

The Minister tells us that the Government will probably bring the same requirements into GB. That is well and good, but it should have been the Government—not a foreign jurisdiction—that were bringing the prescription for the type of USBs into the whole of the United Kingdom. They should not have surrendered control over that to a foreign power.

16:46
Robin Swann Portrait Robin Swann (South Antrim) (UUP)
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In regard to the specifics of how the regulations affect Northern Ireland, I seek some clarity from the Minister about part two of the explanatory memorandum. He said that he had engaged with the Northern Ireland Department of Justice, but I note that there is an impact on the public sector because the enforcing authorities are Northern Ireland district councils. What engagement has there been those with councils on regulation that is due to be implemented on 28 December? To follow on from the point made by the hon. and learned Member for North Antrim, if this legislation had been adopted in this place or through the Northern Ireland Assembly, that engagement would already have happened.

I welcome the commonality that the law will introduce, and the inference that the Government are putting out a call for evidence to ensure that we have continuity of type of charger across the United Kingdom. Have the Government considered stalling the implementation of the regulation in Northern Ireland, so that it can be implemented at the same time across the entirety of the United Kingdom, rather than being delivered in two different parts?

16:47
Justin Madders Portrait Justin Madders
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First of all, I welcome the shadow Minister, the hon. Member for West Worcestershire, to her place, and I hope that we can work constructively across the Chamber. I welcome the comments that she made in support of the draft regulations. She made an important reference to our drawers and how many different chargers we all have in them. We can all see on a personal level why this change might well be a good thing for all consumers. I assure her that we are acting independently of the European Union, and are not blindly following its diktat. We are in the middle of a call for evidence on this subject, and the industry response has been that this was a direction in which it was travelling anyway. I assure her that we will consider all responses before we make a final decision.

The hon. and learned Member for North Antrim made an impassioned speech mainly on constitutional issues and the application of the Windsor framework, which is the legal remit within which we are discussing the regulations. He said that he was not particularly concerned about the subject matter. I do not know whether he has had any constituents raise the issue with him, but I can assure him that we have worked closely with the relevant officials in Northern Ireland, and indeed, to pick up on the contribution from the hon. Member for South Antrim, local authorities in Northern Ireland on the application of the regulations.

The impact assessment from the EU indicated that this would have a de minimis effect on the market, as the industry had already moved towards it. That has been echoed in the conversations that we have had, so an impact assessment would not have revealed anything that would be of significance today.

Question put and agreed to.

16:49
Committee rose.