Economic Activity of Public Bodies (Overseas Matters) Bill

Baroness Chapman of Darlington Excerpts

Committee stage
Wednesday 20th March 2024 Lords Chamber

Moved by

[Baroness Chapman of Darlington]

7: Clause 1, page 1, leave out lines 20 to 22
Member’s explanatory statement
This amendment is to seek clarity on when an individual is considered to be the decision maker for the purposes of this bill.

[Baroness Chapman of Darlington (Lab)]

My Lords, it might be helpful to explain that most, if not all, the amendments we have tabled reflect the fact that we find this quite a difficult Bill to amend in a way that would make it work because, as many noble Lords have already said, it is very wide-ranging and quite vague in many of its terms. Our amendments are mostly intended to elicit not a response from the Minister to the amendments as such, but an explanation of the Bill’s intention, so that we are clear, or as clear as we can be, about exactly how the Bill is intended to be interpreted. This group of amendments is more about who the Government wish to catch with the measures in the Bill, and how it will work. Through these amendments, we want to tease out how the Government will decide who will be subject to enforcement action.

Amendment 7 would remove lines 20 to 22 in Clause 1:

“and those references to the decision-maker include, in a case where the decision-maker is not an individual”—

I assume that that means a local authority, a university or some other public body—

“the individuals who in fact make the decision for the decision-maker”.

I am not sure whether the Government want, in Clause 1, to include members of a governing body or councillors serving on a particular committee—we will come on later to definitions of public bodies. Often, people serve in these capacities as volunteers or as inexpert lay members. Are the Government really trying to say that they want those individuals to be held to account in a way that, in other parts of the Bill, they seem to be suggesting the body itself is to be affected? We need to be clear in our own minds which it is.

We would like to understand in what circumstances individuals will be given notices and then fines. I know we will come on to this later, but we do not know the extent of these fines. Will the fines be applied differently to individuals, compared to a council or a university? Pragmatically, we would expect them to be, but how will they be treated differently if they are to be subject to enforcement action? How will the enforcement agency decide? Is there to be discretion as to whether it is holding an individual responsible as the decision-maker, or is the organisation the decision-maker? How will it assess that? Will it look at the individual behaviour of particularly influential senior managers, members of staff or elected representatives? Would the chancellor of a university, for example, be held to account, or the wider organisation; and how will that judgment be made? The Explanatory Notes do not help us with this question in relation to Clause 1. That is why we have also tabled Amendment 55, which asks the Secretary of State to publish guidance on the circumstances in which an individual is the decision-maker under the Bill, and the circumstances in which they are not.

I am not a lawyer, so perhaps the noble Lord, Lord Wolfson, would like to help us out here. When does this corporate liability, if I can put it that way, become an individual liability? The LGA has helpfully given examples of this question arising. I do not know whether noble Lords have had a chance to look at the pre-legislative scrutiny that took place in the Commons. The LGA was very clear about lots of things in its oral evidence, including that some councillors who serve on pensions committees are not particularly expert in managing these funds, but they are very well supported and advised by their officers, and they take their duties very seriously. Even where, say, a newly elected councillor arrives with some grand intention or attempts to argue for some kind of divestment decision, actually, their fiduciary duties, it is pointed out to them, override such concerns, and that does tend to become the view of the committee.

The LGA, because of its experience of how these things work in practice, said in its evidence that any enforcement action should be directed towards the administering authority and not the individual councillors. Can the Minister explain how an enforcement authority will decide whether individual or corporate responsibility applies for a particular decision? The LGA talks about this in relation to judicial review as well, which we will come on to later. The LGA feels that the subject of the judicial review should not be the decision-making authority but rather the enforcement authority, so that it is its decision that is challenged. If it decides not to issue a notice, that can be challenged, but the risk does not reside with the individual councillors.

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[Baroness Chapman of Darlington (Lab)]

What the Minister is saying is genuinely quite helpful, but I am just trying to apply this to my experience of the real world. If a councillor, say, were to make a statement or cause something to happen at a conference or something like that, the council would be held responsible as a public authority for the actions of that individual. The trouble with that, in a way, is that that would then influence the advice, guidance and training that is given to elected individuals, and then you would get the chilling effect that we are all so concerned about. Just to make sure, have I actually understood that correctly? Is that what the Minister was explaining to us?

[Baroness Neville-Rolfe (Con)]

I think that sounds right but, if I may, I will clarify if I got that wrong. To some extent, it is important in Committee that we actually understand what is happening. That is what, in the spirit of the noble Baroness’s question, I am trying to do. Even if a decision were delegated to individuals in a public authority, such as a commissioning board in a local authority, I think it is clear that the fine would be imposed on the public authority, not the individual.

I should briefly address why universities need to be in the scope of the legislation in response to my noble friend Lord Johnson, the noble Lord, Lord Hannay, and the noble Baroness, Lady Fox. We will come back to this on later amendments. It is an area of particular interest to a lot of noble Lords, not least because of the huge contributions people in this House make to the university sector.

However, the fact is that universities are a frequent target of the BDS movement, and some student unions —to come back to that point—have passed motions pressurising their universities to divest from Israeli companies. The Bill will ensure that universities cannot implement such policies in response to pressure from their student unions, as that would be divisive and could potentially contribute to rising anti-Semitism on university campuses, which is a concern.

[Baroness Chapman of Darlington (Lab)]

The Minister raised it—can she give us one example of where a university has ever succumbed to such pressure from its student union?

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[Baroness Neville-Rolfe (Con)]

I think I used the word “pressure”. Certainly, I was reading “pressure”, but perhaps I blurred the wording and said “pressurised”. I could equally have used “influenced” or some other word. I was trying to explain what we were getting at on the education side of things.

I have a couple of examples of student union pressure, which I mentioned earlier. Warwick student union held an all-student vote in 2020 to pressure the University of Warwick to fully divest from all unethical industries and release all investments. That included divesting from companies in support of a boycott of Israel, and divesting from international companies that are complicit in violations of Palestinian rights. There was also the example of Sussex University, which I mentioned a little earlier.

[Baroness Chapman of Darlington (Lab)]

The thing is, though, as we are teasing out, is it not right that the Bill would not stop Warwick University student union from passing a motion in that regard? It would stop the university from acting on it, but no university has ever acted on these things. That is why we are all scratching our heads a little about what we are going to get from the Bill. It was a manifesto commitment—we understand that—but it is not our fault if the Government cannot turn their manifesto commitment into a usable piece of legislation.

[Baroness Fox of Buckley (Non-Afl)]

On the Warwick University point, for clarification, the other important thing that happened there was that Warwick University academics refused to sit on a panel discussing the issue of Israel, and so on. That was led by academics. It would not be affected by the Bill. The Minister can say, “Oh, that’s okay, it won’t be affected by this Bill” but that has had a much more damaging impact on the debate around Israel in Warwick University than anything that a few people at the student union did and that the university authorities did not act upon. What the university did not do was support those Jewish students and the organisation that organised that debate, and it let the academics carry on. The question of what the Bill will and will not do, and who will be held responsible, is what we are trying to clarify in this Committee.

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[Baroness Neville-Rolfe (Con)]

I thank all noble Lords, including the noble Baroness, Lady Deech, for their interventions. I observe that, obviously, the Bill will make this boycotting activity by student unions almost pointless. But I say to the speakers that this is a group about decision-makers, and we are ranging widely into the debate about the exact involvement of universities, although that has been helpful in informing the next stage of this Committee.

Returning to decision-makers, perhaps I could just say in conclusion that I trust that this addresses some of the concerns of noble Lords and the noble Baroness. My officials will provide further clarification in the Bill’s Explanatory Notes, as requested by the noble Lord, Lord Wallace of Saltaire. I hope, in the light of the explanations I have given, the noble Baroness will feel able to withdraw her amendment.

[Baroness Chapman of Darlington (Lab)]

My Lords, that was probably a bit more helpful than I had anticipated, in that it fleshed out some of our really quite fundamental concerns. The noble Baroness, Lady Deech, made a very powerful case for why action is needed to prevent some of the antagonism and fear, and those activities that have happened on campuses and elsewhere that we all want to prevent. But this Bill does not do it: it deals only with boycott and divestment decisions. It probably brings into scope people and decision-makers that the Government did not have in mind.

The idea that people who want to campaign on these issues will suddenly stop doing so as a consequence of the legislation is fanciful because, as the noble Lord, Lord Mann, said in his Second Reading speech, they will just change the target from public authorities to others. It will not deal with some of the unpleasantness and the atmosphere on campus. That will not be assisted in any way, and the way the Bill is drafted might actually make things worse. It will not deal with campaigns to prevent certain events or not to have certain speakers. Those things are completely outside the scope of the Bill. We are focusing on universities to make this point, but similar things could be said about local government.

I am very happy to withdraw my amendment, but I think we are going to end up with this discussion on most of the groups, because the Bill is so unsatisfactory and does not actually fulfil the aims that the Government say they wish to achieve. I beg leave to withdraw my amendment.

Amendment 7 withdrawn.