Ethnicity Pay Gap Reporting

Baroness Falkner of Margravine Excerpts

Monday 25th October 2021 Lords Chamber

[Baroness Falkner of Margravine (CB)]

My Lords, I am grateful to the noble Lord, Lord Boateng, for initiating this debate and for making such a powerful argument for what is potentially a game-changing enabler for ethnic minority participation in the economic reward system of this country.

I should begin by declaring an interest as chair of the Equality and Human Rights Commission, one of the signatories of the call for the Government to bring in mandatory ethnicity pay gap reporting in the workplace.

The House will know that the EHRC enforces the gender pay gap regulations and may well be the body charged with enforcement of the putative EPG regulations. Our experience of GPG is that the transparency that this collation of data has brought to employers is, they tell us, incredibly valuable. In the few short years that we have been doing this—we only started in 2017—we have seen the pay gap narrowed from 17.4% in 2019 to 15.5% by 2020. Alas, I fear that, as a result of the pandemic, it will increase for a short period; nevertheless, we are on that case.

Our research into ethnic pay inequality shows that there are multiple and complex factors at work, including occupational segregation, for women and carers particularly, the lack of flexible working and a serious lack of senior level representation. Additionally, we also found, after looking at the markers you would expect to see, that there were large gaps in the ethnicity pay data which were inexplicable to us. This suggests that there is still a level of discrimination in the economy and in workplaces in this country.

We recognise that measuring ethnic minority pay gaps is much more complex than for gender. We know that they vary by ethnic group, sex, age and whether individuals are UK or foreign-born. It is not simply the case that white British people earn more. The most recent statistics available show that while the majority of ethnic minorities earn less than their white British counterparts, Chinese, white Irish, Indian and Asian ethnic groups all had higher hourly pay, so it is not going to be a simple white versus others equation.

There are also stark regional variations, reflecting in part the different levels of diversity in parts of Britain. The ethnicity pay gap, which is the difference between ethnic minority and white British workers was 2.3% overall in 2019-20 but 23.8% in London, as the noble Lord, Lord Boateng, said, and only 1.5% in Wales. If we are the monitoring body for this, if it comes about, I can reassure Cumbrian hill farmers that we will not be coming for them.

Moreover, we appreciate that a binary reporting requirement similar to that for gender would potentially tell us relatively little about the particular barriers facing individuals or certain ethnic minorities or, indeed, suggest what responses are needed from employers. I very much support the call of the noble Lord, Lord Boateng, for a narrative alongside the reporting because that is the explanatory part, the analysis that gets us to where we need to go.

We welcome the Government’s consultation on extending the mandatory ethnicity pay gap reporting in line with existing gender pay gap reporting and await the outcome, but we feel that it is important to have a nuanced approach to this, and that tracking outcomes at key stages in the employment journey—recruitment, retention and progression—offers much greater insight into the specific barriers facing groups. It is also essential to ensure that any future reporting mechanism has large enough employee sizes to ensure the right to anonymity is preserved.

In conclusion, if the Government and large businesses are serious about ending race discrimination, this is the most effective way to make a real difference to the lives of ethnic minorities in this country. I look forward to the Minister’s response.

UK Property Ownership: Overseas Jurisdictions

Baroness Falkner of Margravine Excerpts

Wednesday 13th October 2021 Lords Chamber

[Lord Callanan (Con)]

As I just said in the previous answer, we are absolutely not relaxed about this and we are determined to root out any financial chicanery and money laundering where possible. Investigations in which a UWO may assist are likely to be complex: application to a court for a UWO may take many months or years, but enforcement authorities continue to seek opportunities to utilise unexplained wealth orders in appropriate cases. These are difficult and complex matters.

[Baroness Falkner of Margravine (CB)]

My Lords, the noble Lord mentions the establishment of the register, which is long overdue. Will he tell the House what merit he finds in our continuing to support the existence of anonymous shell companies? As the Tax Justice Network has just said, nobody behaves better when they cannot be seen.

[Lord Callanan (Con)]

If the noble Baroness means shell companies in British Overseas Territories and others, they are also convinced of the need for transparency and we continue to press them to provide full ownership and transparency details on these companies.

Employment Rights

Baroness Falkner of Margravine Excerpts

Thursday 10th June 2021 Lords Chamber

[Baroness Falkner of Margravine (CB) [V]]

My Lords, I welcome the improved guidance that the Government have asked ACAS to produce on fire and rehire, because it is a balanced position in the impact on employers. However, the Minister will know that without strong enforcement powers a regulator, however much of a super regulator it might be, cannot do very much. He also knows that some of the most egregious abuses are happening within supply chains, not in faraway countries of which we know little but here in this country, in places such as Leicester. So when the Government tell us they are still considering options on a garment trade adjudicator, will they recognise how disappointing that is? Like other noble Lords who have gone before me, I want to press the Minister to get moving on setting up this body, giving it strong powers and then going so far as to ban goods in shops that are supplied by people who break the law.

[Lord Callanan (Con)]

The noble Baroness makes some good points. I agree with her that some of the appalling treatment in places such as Leicester that was highlighted in press articles is unacceptable. Our response to the consultation sets out the high-level proposals for the single enforcement body. We will be developing more detailed plans for the body’s operation and structure in partnership with the existing enforcement bodies. The noble Baroness will be aware that creating the new body will require primary legislation, and timing will depend on the legislative timescale. However, we are committed to ensuring that it has adequate funding for enforcement; we will do that through the spending review, as I mentioned.

The Government have a good record on protecting employment rights enforcement. We have more than doubled the budget for minimum wage enforcement and compliance, which is now over £27 million per year.

Trade Bill

Baroness Falkner of Margravine Excerpts

Consideration of Commons amendments
Tuesday 23rd February 2021 Lords Chamber

[Baroness Jones of Moulsecoomb (GP)]

I am not sure I have ever said this before, and I do not know if I will say it again, but it is a pleasure to follow the noble Lord, Lord Adonis. He shouts at the Government even more than I do, which I welcome. I agreed with every word he said. It is a credit to the noble Lord, Lord Alton, that he has managed to unite the noble Lords, Lord Blencathra and Lord Adonis. That really is quite remarkable.

In fact, this debate is remarkable. There has been an incredible number of powerful, principled, passionate speeches from all around the House. The noble Lord has united the House on this matter of principle. It shows that this is not about politics. This is not politicking. This is about ethics, morality, having a clear conscience and making sure that we behave as a democracy should, by abhorring genocide and people being murdered, tortured and imprisoned. We really ought to be speaking out on it. This is about operating as an enlightened nation, and quite often I feel we fail at that. Here, we have a chance to put that right.

I would like to say that, when we talk about genocide, we ought to talk as well about ecocide—large-scale environmental destruction and ecological damage. Although it is not as obvious, it is a slow genocide. It drives people away from their land, makes them poor and gives them fewer opportunities and terrible lives. We should accept that we do that sort of damage, and that we do it in virtually every act of our lives. In some way, we impact on our environment and the rest of the world and, by doing that, we can damage the health and well-being of other nations and people who live in the places where we get our food or the minerals for our phones. So we ought to think very carefully about how we operate as individuals and as a nation.

Amendment C3 gives us a route to raise genocide crimes in Parliament and ensure that we do not make dodgy deals with murderous regimes. It also shows effective co-operation between your Lordships’ House and the other place. So I congratulate everyone who has been involved in this, particularly the noble Lord, Lord Alton, who has carried us all along in his wake. He is making it easier for us to do the right thing. Remember that: this is the right thing. This is not about politics; it is about honesty, kindness, generosity and being good people.

Having said all that, I would want to pass something much stronger than this, but I accept it has been tough getting even this far, so I also urge all noble Lords to vote for this amendment.

[Baroness Falkner of Margravine (CB)]

My Lords, it is a difficult day for me to stand up and speak from the perspective I will speak from. I know I will disappoint many in this House, not least my noble friend Lord Alton. Noble Lords will know of my long-standing and academic interest in foreign affairs and human rights. I am, therefore, compelled to revert, I am afraid, to first principles and be the only voice to speak in favour of the Government’s position.

The noble Lord, Lord Alton, passionately believes in two propositions. The first is that the international human rights system is broken, and the second is that we must create a vehicle to punish China in a generic Bill that is intended to define the process by which we scrutinise trade deals. That has been the tenor of most of the speeches we have heard today. I shall briefly set out why, with enormous respect for him, I oppose both approaches.

The noble Lord will know that Lemkin and Lauterpacht did not work on the conventions on genocide and crimes against humanity for their unilateral use. They were designed to be multilateral instruments to protect the international human rights system. That system, largely created by the United Kingdom, is now in its 70s. It is problematic and does not have the tools to deal with violations whereby state parties are themselves major enforcers of the system while carrying out egregious violations. We cannot challenge them due to the mere fact that they sit with us on rule-making bodies such as the United Nations Security Council. The noble Baroness, Lady Kennedy, alluded to that. It is therefore left to the rest of the world to take action jointly and multilaterally. That action is still there for us to take, irrespective of the fact that China sits as a permanent member of the Security Council. It is the route that the Government wish to take; at least, that is my understanding of their intentions.

The noble Lord, Lord Adonis, speaks of the lessons of history being historical. Yes, the lessons of history are usually historical, and today’s system has held for 70 years. There have been violations, which we have heard about in this Chamber. As to the idea that the United Kingdom unilaterally could have done much about them, I cast my mind back to my 40-something years in foreign affairs and remember only one occasion when the United Kingdom was able to intervene unilaterally—a small-scale invasion in Sierra Leone in the early 1990s. It was a brave attempt, which succeeded. However, on the whole, and with some caution, I warn people that if they think that by passing this kind of amendment we are going to be free to stomp the world unilaterally, taking on powers such as China, they need to think again.

My second point, which is about China, demonstrates exactly what is wrong with this debate. In the final analysis, I am unprepared to use generic legislation for specific ends. I refer also to the suggestion of the noble Lord, Lord Adonis, that the judicial committee advocated in the amendment would merely help us to ascertain the facts. Judges are not substitutes for intelligence reports, scrutiny undertaken by our Select Committees or academic scrutiny. We have all heard during the passage of the Bill about the numerous reports of the last three years, not least from the noble Lord, Lord Alton. That is a matter for us. It is a circular argument of the noble Lord, Lord Adonis, whereby the facts show that genocide is happening in China, yet we need a committee to tell us of those facts.

I do not come to this House every day to pass legislation in order to pass on that responsibility to great judges, however learned they may be. These two Houses are the places where the law and changes to it must be deliberated upon and agreed. Each and every one of us carries that responsibility and it should not be outsourced to our colleagues. It is for us, as parliamentarians, to determine these matters for ourselves on the basis of our own intellect and conscience.

The noble Lord, Lord Blencathra, had a good go at the Foreign, Commonwealth & Development Office. As noble Lords can imagine, if one has been involved in foreign affairs for some 40 years, one has seen people come and go. He says that the western world needs to stand up to China. I agree and have been saying so in this House for more than a decade. My first encounter with human rights abuses of the Uighurs in China was in 2004, the same year in which I entered this House, when I found out on a trip to that country what was actually going on. I agree with him that we need to stand up to China, but in doing so, we have no choice. We are a mid-sized power with a mid-sized economy, and our jobs, our people’s human rights, also matter. Not many people recall that human rights also include social and economic rights. Our jobs and our citizens’ human rights are at stake in these debates, particularly if we single out one country for action in a generic Bill. We might do that but it will serve as an impediment to other countries in doing trade deals with us.

If we want to stand up to China, we have no choice but to do it through working with the United States, the European Union, the Commonwealth and all the other strategic powers. Here, I concede that I do not see China as a strategic partner. However, along with other strategic partners, we need to decide how to amend and strengthen the existing global order to make China respect and uphold the values that we wish it to.

[The Deputy Speaker (Lord Duncan of Springbank) (Con)]

My Lords, at this point I must ask if there is anyone else present in the Chamber who wishes to contribute to the debate. No? In which case, I shall call the noble Lord, Lord Purvis of Tweed.

Trade Bill

Baroness Falkner of Margravine Excerpts

Report stage & Report stage (Hansard): House of Lords & Report: 1st sitting & Report: 1st sitting: House of Lords
Monday 7th December 2020 Lords Chamber

[The Deputy Speaker (Lord Bates) (Con)]

I call the next speaker, the noble Baroness, Lady Falkner, and I will then call the noble Baroness, Lady Northover.

[Baroness Falkner of Margravine (CB)]

My Lords, it is a real pleasure, as the fourth person to have put my name to the amendment, to speak after the wonderful speeches that we have just heard—most notably, that of the noble Lord, Lord Alton, who has been steadfast on this issue for many years.

Every now and then, two or three times a century, nations are measured in international affairs for what they did or did not do. In the writing of the history of the United Kingdom in our era, Brexit is expected to take centre stage, but we do not know at this stage whether in the long run it will prove to have been a canny move, giving us flexibility to adapt to a new world, or an ill-thought-through wail of frustration at globalisation. Some of the tally of the UK’s actions at this time will stand out; others, mercifully, will be forgotten.

In this amendment, if passed by this place and agreed to by the other place, we can see a stand-out moment—standing out and standing by a relatively small religious group that is subject to a crime against humanity: genocide. At a time when we know that it is happening—when we have the technology, the resources and the testimony of survivors that tell us of such egregious practices—for us to profess ignorance would be nothing less than condoning China’s behaviour against its Uighurs Muslims in Xinjiang.

I and the noble Lord, Lord Alton, have spoken over several years in this Chamber about the atrocities committed against the Uighurs. I almost feel that I am repeating myself every time I stand up to make this kind of speech, but I am not, as every time I look at the subject and the detail of what we know today, as opposed to what we knew last month or last year, I can see that things are getting worse.

China is running a gulag worthy of the description of the Soviet gulags by Aleksandr Solzhenitsyn, except that from what we now know in real time, not in retrospect, it is much worse. From 2015, we learned of detention camps from seeing satellite images. There were Chinese denials. Then, in 2018, the Chinese Government stopped denying their existence when the evidence was irrefutable and declared that they were “vocational education and training camps”. In these camps in Xinjiang, inmates are asked to renounce the Koran and their belief in God and to profess belief in—you could not make this up—"Xi Jinping thought”.

According to the Economist, guards ask prisoners if there is a God and beat those who say that there is. I think that I am the only Muslim speaking in this debate. I can tell noble Lords that it is impossible for a Muslim to renounce God, since the acknowledgment of God’s existence is the foundational principle of being a Muslim. While getting a daily beating may not sound egregious, Muslims will not go there—they will not sign up to “Xi Jinping” thought if it involves giving up God. It is something for which they will be prepared to die—and they are dying.

Then there is the sterilisation of Uighur women. In parts of Xinjiang, the Uighur birth rate fell by 60% between 2015 and 2018. There is, furthermore, the forced transfer of people to undertake forced labour—in detention, with watchtowers to prevent them escaping their factory dormitories. This persecution of the Uighurs is a crime against humanity systematically imposed by a state—a Government—that brooks no internal opposition. It is the most extensive violation in the world today of the principle that individuals have a right to liberty and dignity simply because of their humanity—because they are people.

This amendment abrogates trade deals—revokes them, as it says—if the other signatory, according to a High Court ruling, is a state that has committed genocide. It is needed in this Bill because no party to the genocide convention should be doing business with China while it continues to perpetrate this crime. If we pass this, we in the United Kingdom will be refusing to stand idly by and to elevate commerce above conscience. Not to pass it would be a shame. If we decide to pass it, it will represent us as a beacon of liberty in one of our first acts as a sovereign nation.

The noble Baroness, Lady Kennedy, spoke of the 70th anniversary of the genocide convention. Other noble Lords have referred to international institutions, as, no doubt, will the Minister, in his closing speech. I remind the House that we cannot leave this to other bodies when there is the disgrace—I go so far as to say the obscenity—of China being elected to the United Nations Human Rights Council. The time has come: we have to act.

Trade Bill

Baroness Falkner of Margravine Excerpts

Committee stage
Tuesday 13th October 2020 Lords Chamber

[The Deputy Chairman of Committees (Baroness Fookes) (Con)]

As the noble Lord, Lord Adonis, has withdrawn, I call the noble Baroness, Lady Falkner of Margravine.

[Baroness Falkner of Margravine (CB)]

My Lords, it is always a pleasure to follow the noble Lords, Lord Alton and Lord Forsyth. The noble Lord, Lord Alton, set out the case so comprehensively that I will not detain the House in repeating some of these egregious abuses.

I want to come at this from another angle that speaks directly to the UK’s trade policy and our values and obligations on the international stage. States carry moral weight, so the amendment is entirely pertinent to this Bill.

Thinking about this amendment made me reach for my copy of Philippe Sands QC’s excellent book East West Street: On the Origins of Genocide and Crimes against Humanity. Anticipating resistance to our amendment, I hope to explain why Amendments 68 and 76A are relevant. They will only apply in the most extreme and egregious cases as affects international law and UK trade policy. My arguments go directly to the distinction between the crime of genocide and the broader illegality of crimes against humanity.

At the Nuremberg trials of 1945 and 1946, two outstanding prosecutors, Hersch Lauterpacht and Raphael Lemkin, part of the British and US teams, determined that international laws were needed relating to a pattern of state behaviour that could no longer be allowed to stand and that they were categories of human rights violations that needed to be given a name and recognised—“genocide” and “crimes against humanity”. For Lauterpacht, who was an academic at Cambridge, the killing of individuals, if part of a systematic plan, would be a crime against humanity. For Lemkin, the focus was genocide: the killing of the many with the intention of destroying the group of which they were a part.

As Philippe Sands explains, for a prosecutor today the difference between the two is to do with establishing intent. To prove genocide, you need to show the act of killing was motivated by an intent to destroy the whole group, whereas for crimes against humanity no such intent has to be shown. He explains that proving intent of genocide is extremely difficult, as those involved tend not to leave a paper trail—he should know, being the foremost prosecutor of such attempts.

Lemkin went on to win the argument at the United Nations, as in December 1948, the General Assembly adopted the Convention on the Prevention and Punishment of the Crime of Genocide. It was the first human rights treaty of the modern era. Lauterpacht’s contribution inspired the Universal Declaration of Human Rights, of 1948, ironically adopted by the General Assembly only one day after the genocide convention that same December. The law of crimes against humanity has primarily developed through the evolution of customary international law and is not yet an international convention.

But turning to when and where this particular provision from this amendment may be used, it is fair to say the world is more respectful of both individual and group rights, but not universally—hence the suffering of the Rohingya people in Burma and the Uighurs in China. The noble Lord, Lord Alton, and others have spoken about the crimes against them, and this House is well versed in this situation over several years.

I want to close by quoting Raphael Lemkin from a letter he wrote in 1946, which is quoted by Sands. He wrote the letter two years before the genocide convention was agreed. He wrote the letter when he despaired that it would become international law, and he said:

“we cannot keep telling the world in endless sentences: Don’t murder members of national, racial and religious groups; don’t sterilise them; don’t impose abortions on them; don’t steal children from them; don’t compel their women to bear children for your country; and so on. But we must tell the world now, at this unique occasion, don’t practice Genocide.”

If the United Kingdom’s values are to stand for anything in trade, international relations and its footprint on the international stage, they must stand for that.

Trade Bill

Baroness Falkner of Margravine Excerpts

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Tuesday 29th September 2020 Grand Committee

[The Deputy Chairman of Committees (Baroness Barker) (LD)]

I call the next speaker, the noble Lord, Lord Adonis. No? Therefore, I call the next speaker on the list, the noble Baroness, Lady Falkner of Margravine.

[Baroness Falkner of Margravine (CB)]

My Lords, I intend, unusually, to part company with my noble friend Lord Alton of Liverpool and shall speak against Amendment 33. Before that, I shall spell out why I think that amendment has come about, although some of what I shall say has been covered by him.

The motivation for Amendment 33 lies in the Telecommunications Infrastructure (Leasehold Property) Bill, which we last debated on 29 June. We were given an assurance then that the Government would return at Third Reading with an amendment to give legislative teeth to human rights safeguards in the use of infrastructure. The Minister, the noble Baroness, Lady Barran, assured the House that, when the Bill returned for Third Reading, the Government would have drafted a suitable amendment. On that basis, we were willing not to test the opinion of the House. We are still waiting for that Bill to return, and the Government have spurned an opportunity to have a limited, reasonable amendment. As a consequence, we have this sweeping proposal before us, which I was surprised was found to be in scope of this Bill.

My first point relates to paragraph 44 of the Explanatory Notes, which has been touched on previously by the Minister, the noble Lord, Lord Grimstone. Clause 2(1) refers principally to EU continuity agreements, but I cannot see how Amendment 33 is in scope. The agreements concerned would already have been scrutinised by the European Parliament, which I do not consider normally to be lax in its duty to recall human rights implications.

I also note, as the noble Lord, Lord Alton, said, that attempts are under way for UK courts to determine whether genocide is taking place in other countries. While I know that trade with China is the object of concern of many of these amendments, they could be used much more widely. I shall turn to the unintended consequences of such amendments in a moment.

However, I oppose Amendment 33 for three principal reasons: the impossible burden of scrutiny on Parliament for such large categories of goods; the breadth of critical infrastructure included in an overly comprehensive list; and the exclusiveness of the definition of “democratic”, or “non-democratic”, thereby taking in more than half the countries of the world.

Amendment 33 is overly comprehensive, in that it seeks an interventionist role for Parliament in agreeing regulations that cover so many facets of infrastructure that it would render Parliament as an inspectorate of all commerce. If we are truly to be charged with each resolution laid before us concerned with the 11 broad areas of commercial transactions in the five years envisaged—perhaps five years more, if the proposal is rolled over—we may do little else.

Let me take the first category, which is “critical infrastructure”. Incidentally, critical infrastructure is not defined here, so I looked it up. Critical infrastructure,

“is a term used by governments to describe assets that are essential for the functioning of a society and economy”.

That is incredibly broad, and very little is not covered by it. In the UK, the Centre for the Protection of National Infrastructure is the relevant representative body. I therefore ask the proposers of these amendments to say, when they conclude, if they have consulted that body in drawing up their sweeping list of categories, given that little would not be caught by the amendment.

My more significant concern is to do with how the movers have defined what they see as non-democratic countries. The four pre-requisites are perfectly clear, and most of us would agree with them as essential to what we might perhaps define as western-style liberal democracies. Therein lies my concern. If Parliament has to approve trade measures with all those countries we consider non-democratic, we would be in danger of becoming an autarky. For example, if we apply the definition of the noble Lord to BRICS—Brazil, Russia, India, China and South Africa—they would all come into that category, bar South Africa. Take, for example, China, which is the cause of much concern around the House. So much of what China exports to us could be caught by the definition of critical infrastructure. I am sure no noble Lord is proposing that we suspend almost all trade with China—even the Trump Administration have balked at doing that.

While China is a well-known example, what of India? This Government are ambitious to do a great deal with India. They already have partnerships on critical infrastructure with Indian companies—take OneWeb as an example, which is critical infrastructure by any category. If new opportunities for trade were to arise, India would be on the so-called watch-list as a non-democratic country for its treatment of Kashmiri Muslims—in fact, for its treatment of large swathes of its Muslim minority; some 200 million people—and its treatment of women overall, or for the caste system and the treatment of Dalits, and thus would clearly come under categories (c) and (d) on the list.

Take Brazil under President Bolsonaro. It would definitely be caught by paragraphs (c) and (d), not least for its treatment of indigenous people in the Amazon, and not to speak of the rule of law. What of Saudi Arabia and the Gulf states, or even Israel? I do not want to labour the point, but by no step of the imagination could most countries in the Middle East be seen as democratic.

I also remind those concerned with such broad definitions of human rights to recall Article 25 of the Universal Declaration of Human Rights, which defines the right to economic well-being, broadly spelled out, and which might be denied to our citizens were we to agree such blanket measures against trade with other countries, or parliamentary scrutiny of trade with other countries. It is slightly disingenuous of noble Lords to claim that all they are asking for is parliamentary scrutiny. Once we open the can of worms as to what is democratic and not democratic, and once we start asking UK courts alone to rule on what is genocide or not, we are straying into an area where we are doing economic self-harm.

I know that human rights are increasingly accounted for in international trade agreements—as I said earlier, the EU is not impervious to that. However, Amendment 33 serves no useful purpose and we should rightly return to these measures in a very limited form in Amendment 68, which I will support when the time comes.

[Lord Lansley (Con)]

My Lords, I am pleased to follow the noble Baroness, Lady Falkner of Margravine, because I think I can follow up precisely the point she made. I think that the debate we have had is an important and interesting one, but the amendments before us do not have the effect that they are intended to by those who are proposing them.

The amendments are in scope of the Bill because they relate to the regulations being made under Clause 2(1), but the regulations made under Clause 2(1), by virtue of the rest of that clause, relate to continuity trade agreements and not to future trade agreements. With respect to the noble Lord, Lord Alton, everything he said about China is, to that extent, not relevant. It is relevant to future trade issues, but it is not relevant to the Bill as it stands.

Amendments 11, 18 and 33 are in scope because they relate to continuity agreements, but I am afraid that we have to assess their impact in relation to the existing agreements with the European Union which we are rolling over. That is the hard graft which the movers of the amendments need to do. If they want to do this thing and impact on those regulations, they have to look at those agreements.

My personal view, which was reflected earlier in the debate, is that the European Union has to a large extent done that work, as will have the European Parliament. We do not necessarily need to do it. However, the breadth of the issues—for example, in Amendment 33 —is such as to beg the question: is this really what the movers of the amendment are asking for? For example, the non-democratic provisions would imply that the agreement with Egypt would not be rolled over. That job has not been done and these amendments have not been exposed to that kind of scrutiny. I do not think that the movers of the amendments, or those who spoke in support of them, realise that they do not relate to future trade agreements but only to continuity agreements and so most of the arguments presented in their support have not been justified.

However, Amendment 45 is included in this group. Whether or not it is the right way of doing it, it raises a perfectly reasonable question that we should consider. When we come to exercise the scrutiny of trade agreements under the Constitutional Reform and Governance Act 2010, should we have a specific statutory requirement to assess the human rights and equalities impacts? There is a good argument for that. This may not be the way to do it at this stage, but we may need to return to that. Otherwise, I am afraid that, sympathetic as I am with all the arguments put for the other amendments, they do not do the job that is claimed for them.

Trade: Trans-Pacific Partnership

Baroness Falkner of Margravine Excerpts

Wednesday 23rd September 2020 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

I thank my noble friend for her question. Of course, we will accede to the CPTPP only if we are happy that the arrangements we are acceding to are in the UK’s interest. We are confident that we will be able to reach that position with its members.

[Baroness Falkner of Margravine (CB)]

My Lords, does the noble Lord agree that we face two spheres of internet governance at the moment: one controlled by authoritarian regimes, rife with surveillance; and the other, western, free and accessible to all? Does he therefore agree that, alongside the CPTPP, another priority should be digital FTAs with Japan, Australia and India?

[Lord Grimstone of Boscobel (Con)]

My Lords, in the recent agreement in principle with Japan that we were so pleased to reach, there is an extensive data and digital services chapter that we hope will be a model for our future free trade agreements. The points made by the noble Baroness are important and are always in our mind when we negotiate these agreements.

Russia: Trade

Baroness Falkner of Margravine Excerpts

Tuesday 28th July 2020 Lords Chamber

[Lord Grimstone of Boscobel]

My Lords, we are quite clear that trade does not have to come at the expense of labour, the environment, human rights or sustainable development. We use trade because we want to ensure that economic growth and development and environmental protection can go hand in hand.

[Baroness Falkner of Margravine (Non-Afl) [V]]

My Lords, the Minister will know that financial services are in surplus in our trade with Russia. Does he agree that however desirable that might be, it does not benefit the City of London to be referred to as a laundromat for Russians to wash their dirty money? Will he call together the City institutions to discuss how the measures in the Sanctions and Anti-Money Laundering Act 2018 can be tightened, as clearly the current institutions do not seem to have either sufficient funding or the powers to regulate them?

[Lord Grimstone of Boscobel]

My Lords, as a previous banker, I abhor illicit finance working its way through the City. It benefits nobody, and no respectable City firm would want to touch it. At every opportunity, I will certainly raise the points that have just been made.

Enterprise Act 2002 (Specification of Additional Section 58 Consideration) Order 2020

Baroness Falkner of Margravine Excerpts

Wednesday 15th July 2020 Lords Chamber

[Baroness Falkner of Margravine (Non-Afl)]

I welcome the inclusion of public health emergencies as a public interest consideration under these measures.

I know that other countries have experience of why these measures are needed; take the recent example of the German biotech firm CureVac, which was in the process of launching an IPO on the NASDAQ this month. According to the Financial Times, the German Government, acting on the basis that the US Government had sought to take over the group in order to secure a supply of a Covid-19 vaccine, bought a 23% stake in it—equivalent to €300 million—through KfW, the state-owned development bank. They were able to do so because German legislation from 2017 allows them to intervene in any acquisition of a German company if it endangers “public order” or “Germany’s fundamental security interests”. The House may be interested to know that several Chinese actors had bought out or tried to buy strategic German firms until that point.

I also want to press the Minister on why our categories of these sectors are so relatively narrow. The German legislation now takes in companies that produce software for power plants, energy and water supply networks, electronic payments, hospitals and transport systems, in addition to the normal national security considerations. The German Government widened their legislation because, as they put it at the time,

“German companies are often forced to compete with businesses in countries that have a ‘less open economic system than ours’.”

No prizes for guessing which country that might be, given the Statement yesterday. I hope that the Minister will take a closer look at what can be done to secure our broader national interests in the forthcoming Bill.