Trade and Agriculture Commission and Trade Remedies Authority
Baroness McIntosh of Pickering Excerpts(3 years, 6 months ago)
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Baroness McIntosh of Pickering
To ask Her Majesty’s Government what is the budget for (1) the Trade and Agriculture Commission, and (2) the Trade Remedies Authority.
The Minister of State, Department for Business, Energy and Industrial Strategy and Department for International Trade (Lord Grimstone of Boscobel) (Con)
My Lords, the commission members are unpaid and are reimbursed for reasonable travel costs. They are supported by a secretariat run by DIT, made up of officials from various government departments and paid for out of their respective departmental budgets. We estimate the cost of the commission’s secretariat to be £770,000 over the duration of its term. The 2020-21 financial year budget for the Trade Remedies Investigations Directorate is £12,210,307. Once established, provisions will be made in accordance with usual procedures to fund the TRA.
Baroness McIntosh of Pickering (Con) [V]
My Lords, I am grateful for that Answer. It confirms that the Trade and Agriculture Commission is not independent but run entirely by the Department for International Trade. Will my noble friend concede that there is a widely held view that the commission should become a permanent body or, as suggested by his adviser, Henry Dimbleby, replaced by an independent, permanent body to make sure that the commission and its standards are statutory, and that it has its own budget, resources and staff. Otherwise, it is a sham, an empty vessel, and is not able to do the work that it has been charged by the Government to do.
Lord Grimstone of Boscobel (Con)
My Lords, I am afraid that I do not agree with my noble friend. The commission is an independent body and is made up of independent-minded representatives from across the agriculture, retail, consumer, hospitality, animal health and environmental sectors. It questions their integrity to think that they are other than completely independent.
Trade Bill
Baroness McIntosh of Pickering ExcerptsThursday 15th October 2020
(3 years, 6 months ago)
Lords ChamberRead Full debate Trade Bill 2019-21 View all Trade Bill 2019-21 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 128-VI(Rev) Revised sixth marshalled list for Committee - (13 Oct 2020)
Baroness McIntosh of Pickering (Con)
I am delighted to follow the noble Lord, Lord Wigley. I fell foul of the procedures myself today—I think I am still a new girl, navigating my way through these extraordinary times, but I pay tribute to the facilities we have and we are grateful to have the hybrid system that is working so well.
I shall speak to Amendments 81 and 83 and later amendments. For the record, I perhaps misled my noble friend the Minister in my question at Question Time, but I have the highest possible regard for members of the Trade and Agriculture Commission—they have proven their independence and their value to date. My noble friend said that they take no money for their role, so we are particularly grateful for their public service contribution. My noble friend will be under no illusion, however: I would like the commission to be independent and to have its own resources, its own staff and its own offices, and I shall continue my little campaign in that regard.
On appointments made under Amendment 81, can my noble friend put my mind at rest? What does the Governance Code for Public Appointments say about non-disclosure agreements? I am sure they do not sit comfortably within the present arrangements.
On Amendment 83 and the trade advisory groups, I noticed in the previous group that we had 17 expert trade advisory groups in July with, I think, 250 representatives. In August, we had fewer representatives and only 11 trade advisory groups. I would like to clarify, if I may, what the current composition is. Do they include, for example, anybody—a British national, ideally—who has first-hand experience of negotiating trade through the EU Commission, which would obviously be hugely beneficial at this time, as we set out negotiations on our own? To what extent is industry involved, either through the CBI or otherwise? I understand that the CBI was represented in the earlier trade advisory groups and it is extremely important, if the CBI is not represented, that we have some kind of business representation.
Can my noble friend also put my mind rest that services, both professional—such as legal services—and financial, have bodies that are represented through the trade advisory groups? If that is the case, could he please explain which they are?
I was delighted to sign Amendments 106, 107 and 108. I support the sentiments behind them and I consider them, at this stage, probing amendments, but it is extremely important that the Trade Remedies Authority also represents those categories. In Amendment 106, under proposed new sub-paragraphs (a), (b), (c) and (d) I would add (e) and (f) to include representatives of business, professional and financial services as well, because services are so important to our future trading potential.
On Amendment 108, I repeat my earlier remarks and endorse the provision that a person should hold office
“for a fixed period of five years”,
which would, I think, increase the potential for independence. A fixed term would give Trade Remedies Authority members greater security of tenure and therefore reinforce their independence and impartiality. A commitment was given by my right honourable friend the Minister, Greg Hands, in Committee in the House of Commons, that people are appointed on merit following fair and open competition, in keeping with the Governance Code on Public Appointments. The code itself states that there is a strong presumption that no individual should serve more than two terms or serve in any post for more than 10 years, other than in exceptional circumstances. I therefore hope that my noble friend will see fit to put this in the Bill through this amendment.
Lord Lansley (Con)
My Lords, I am glad to follow my noble friend. My amendment in this group is Amendment 113, which I shall come to at the end, where it is listed. However, there are two other areas that I shall briefly touch on.
First, Amendment 81, and those linked to it, cover appointments to the Board of Trade, or indeed to the trade advisory groups. I have a disinclination, I have to say, for statute or, indeed, the Select Committees of either House to be reaching into government departments and telling Secretaries of State who they should have to advise them. Amendment 81 probably misses the point, in that there are, as I understand it, very few appointments to the Board of Trade as such; most of the appointments being discussed are appointments of advisers to the board rather than members of the board itself. However, that is neither here nor there from my point of view. If Ministers are able to give the Committee assurances about the balance they will bring, I would be perfectly happy that they are getting balanced advice—that is terribly important.
Secondly, on Amendment 107, the noble Lord, Lord Stevenson, and my noble friend Lady McIntosh are venturing back into the territory I ventured into on Tuesday. I said that there should be a pre-appointment hearing of the International Trade Select Committee of the other place for the appointment of the chair. I await a letter from my noble friend the Minister explaining why I am wrong. I may well be wrong, but the point was well made by the noble Lord, Lord Rooker: we are dealing here not with the appointment of those who advise the Secretary of State in his own department but an independent body. That independent body is accountable to Parliament, and Parliament should have a say, although not a determining say, in who is appointed to chair it.
I am not proposing, as Amendment 107 does, that these appointments of non-executive members of the Trade Remedies Authority should be subject to consent—that goes further than I would—but the appointment of the TRA chair is important. It has impact and, if not wide public importance, very wide business importance. It is something that should be clearly commented on by Parliament. That does not mean that Ministers cannot go ahead and appoint whom they wish. Indeed, even where there is a pre-appointment confirmatory hearing in other cases, Ministers, when I last looked, on nine occasions made recommendations to which Select Committees objected, and on six of those occasions, Ministers went ahead anyway. It would not prevent Ministers doing what they want to do, but it would give them Parliament’s view, so I am rather sympathetic to that amendment.
Amendment 113 is not about appointments or the membership of the TRA; it refers to Clause 6, which gives the Trade Remedies Authority the power—indeed, the obligation—to give advice to the Secretary of State in a number of respects, and the Secretary of State can request such advice. The Trade Remedies Authority is an independent body; there is a statutory relationship with the Secretary of State and the Secretary of State may ask for advice. For example, and I make no apology for coming back to this, let us say that we are talking about the Airbus and Boeing dispute, and the Secretary of State has asked the Trade Remedies Authority for advice on the “trade remedy measures” adopted by the United States in relation to that dispute, as both sides have secured World Trade Organization consent to the imposition of additional duties. When the Secretary of State asks for that, it is something on which the Trade Remedies Authority should expose for accountability purposes that it has given advice when it comes to the annual report.
It is important, and the fact that its advice has been sought is also important. I do not expect the annual report to go into obsessive or spurious detail, but, when one makes an annual report for an independent body accountable to Parliament, it should tell us how and when this statutory provision has been deployed during the year.
“(7) Nothing in regulations made under subsection (3) may require the disclosure of information or the production of documents which are subject to legal professional privilege.”
Baroness McIntosh of Pickering (Con)
My Lords, it makes sense to take Amendments 85A and 89A together and I am grateful for the opportunity to do so. It is generally believed in legal circles that Clause 7(1) and the whole of Clause 8 as currently drafted are extremely wide and give great discretion to HMRC to require information. A similar amendment was moved in the other place that these provisions should be much more clearly defined to give greater certainty about the extent of the information and the anticipated frequency of this method of data collection. As my noble friend Lady Neville-Rolfe described so clearly, while in normal circumstances it could be quite amusing, a breach of confidentiality or legal privilege is no laughing matter—and accidents and mistakes do happen. It is for that reason that Amendment 85A seeks to add at the end:
“Nothing in regulations made under subsection (3) may require the disclosure of information or the production of documents which are subject to legal professional privilege.”
Similar wording would be added to the relevant provisions of Clause 8.
I know that my noble friend Lord Younger went to some pains in summing up the previous debate to make it clear that the information would be provided on a voluntary basis—his defence was that there should be no compulsion. That indeed was the summing-up of my right honourable friend the Minister, Greg Hands, in the other place: that legal professional privilege was, in his words,
“a long-standing principle that protects the confidentiality of communications between lawyers and their lay clients and vice versa.—[Official Report, Commons Public Bill Committee, 25/6/20; col. 299.]
He went on to expand on why the principle is so important.
In thanking the Committee for the opportunity to speak to these amendments, I will say that it is felt that there are grounds to have these two amendments written into the Bill. Perhaps the Minister could meet me half way to make sure, by putting these phrases into the Bill, that there is absolutely no scope for anything to be done involuntarily or accidentally. With those few remarks, I beg to move.
Baroness Bowles of Berkhamsted (LD) [V]
My Lords, we support these amendments and, broadly speaking, I could just repeat my comments on the previous group. So, if your Lordships could take them as read, I will not repeat them.
The powers of HMRC cannot ride roughshod over matters that are protected, in this instance by legal privilege. It seems to me that HMRC cannot be put above the law as a matter of principle. I will repeat that there are concerns because of the current provision in the Finance Bill seeking to obtain access to bank accounts that would normally have required a court’s approval. There is also doubt as to whether, within HMRC, there are the appropriate procedures for the proper handling of some of the information that it may demand. The issue is around the training and abilities of the people who may access or disclose things who, if previous form is to be followed, can be in relatively junior positions. I think that these are matters that HMRC is trying to address but, despite that, it seems improper to demand to acquire powers before any safeguards are in place. Also, legal privilege would appear to me to need special protection, and therefore provisions to achieve the aims of these amendments would be useful in the Bill.
Viscount Younger of Leckie (Con)
My Lords, I will deal with Amendments 85A and 89A, in the name of my noble friend Lady McIntosh of Pickering, together, as they are closely related. My noble friend has written half my speech, because it echoes her remarks. Both amendments concern legal professional privilege, which, as noble Lords know, is a long-standing principle that protects the confidentiality of communications between lawyers and their lay clients, and vice versa. It enables lawyers to consult and advise their clients, without clients fearing that information will have to be disclosed later.
As a matter of general interest, any person who wishes to consult a lawyer must be free to do so under conditions which ensure uninhibited discussion. I do not believe it has been mentioned in this debate that this principle is recognised and protected under Article 8 of the European Convention on Human Rights. I can therefore provide an absolute assurance to the Committee that the Government have no intention, either now or in the future, of using these powers to seek or share information that is protected by legal professional privilege.
For Clause 7, the information being requested from exporters will be provided voluntarily. This has already been said by me and other noble Lords. That the information is being provided voluntarily is, perhaps, an indication of the Government’s position on minimising burdens and, therefore, not requiring privileged information to be disclosed.
As part of this short debate, it is crucial to make this point: Clause 8 allows for the sharing of data that is already held by HMRC for its administrative functions. Such information cannot, therefore, be subject to legal professional privilege, as it has already been provided to HMRC. However, I understand your Lordships’ concerns about data sharing, and I reassure the Committee about the safeguards we have put in place around the collection, handling and processing of information collected under this clause. In response to the winding-up speech of my noble friend Lady Noakes, who raised concerns despite my remarks, I take this opportunity to confirm that I will write to her and all noble Lords, and put a copy in the Library of both Houses, concerning those reassurances.
The data-sharing powers in this clause are permissive, so all instances of data sharing must be approved by HMRC. Criminal penalties for any unauthorised sharing of data will apply under the existing Commissioners for Revenue and Customs Act 2005. Nothing in the clause permits the disclosure of information that is not otherwise permitted in data protection law, including the Data Protection Act 2018 and the Investigatory Powers Act 2016. A lot of this was said in the remarks on the previous amendment. I hope that this provides the reassurance that my noble friend Lady McIntosh seeks on this point, and that she will withdraw her amendment.
Baroness McIntosh of Pickering (Con)
My Lords, I am grateful to those who have contributed and for the support expressed by the noble Baroness, Lady Bowles, and the noble Lord, Lord Bassam. I am slightly concerned by the response of my noble friend Lord Younger. I understand that Conservatives support, and have enshrined in this and other legislation, the European Convention on Human Rights, but it begs the question of what would happen if a future Government were to resile, so they were no longer a signatory to it. This is not beyond the realms of possibility as we leave the European Union. I realise that the Council of Europe is a separate organisation, but it begs the question.
As my noble friend Lord Younger so clearly said in summing up, legal professional privilege exists so that information can be communicated between lawyer and client. I am sure he recognises that many UK statutes already give express protection of legal professional privilege and that it is protected vigorously by the courts. The noble Lord, Lord Bassam, was absolutely right that this is a probing amendment, but my concern is only that, if we do not insert something like this, my noble friend and the Government may face future court cases, in the event of a breach of legal professional privilege. Having expressed these concerns, I beg leave to withdraw the amendment at this stage.
Lord Grimstone of Boscobel (Con)
My Lords, this group consists of three government amendments, which are minor and technical in nature, together with an amendment in the name of the noble Lord, Lord Stevenson. I will present the government amendments, before responding to Amendment 89. The amendments all relate to the data disclosure provisions at Clauses 8 and 9.
On government Amendment 86, it has always been our intention that the devolved Administrations should be able to access HMRC information to facilitate the exercise of their trade functions through the powers in the Bill. However, in recent discussions, colleagues in the devolved Administrations asked for their ability to receive information to be made more explicit in the Bill. I am happy to offer this clarity. This amendment puts beyond any perception of doubt that the devolved Administrations can access HMRC information for their trade functions through the Bill.
The associated government Amendment 96 is simply a consequence of Amendment 86, and explains what is meant by “devolved authority” for the purposes of the Bill. We have worked closely with the devolved Administrations to ensure that the data-sharing gateways in the Bill also assist them with their devolved functions. In this spirit, I make two further commitments to the devolved Administrations on data-sharing in Clause 9.
First, the data shared under Clause 9 will be used by the border impact centre and the Cabinet Office to develop strategic insights. They are committed to sharing strategic analysis related to flow of trade, where it will support the more effective management of flow through the border. I understand that Cabinet Office officials have been working closely with counterparts in the devolved Administrations to ensure that relevant analysis and information relating to trade and management of the border can be shared to support devolved functions. Examples of the types of information that the border impact centre intends to share with relevant parties in the devolved nations are flow patterns through ports. The Cabinet Office will continue to work with the devolved Administrations to ensure that the border impact centre provides strategic benefit to management of flow through key ports.
Secondly, the UK Government commit to consulting the devolved Administrations before any devolved authorities are added to, or removed from, the list of specified authorities that can share data under Clause 9.
Amendment 90 corrects a drafting omission in Clause 10(4)(b)(i) in relation to the imprisonment term for a person guilty of an offence who is liable in England and Wales on summary conviction. Clause 10 as currently drafted provides that a person guilty of an offence under the clause is liable on summary conviction in England and Wales to imprisonment for a term not exceeding 12 months or to a fine, or to both. Until the relevant provisions of the current Sentencing Bill are enacted and commenced, however, magistrates can impose a sentence of only up to six months’ imprisonment for a single offence in England and Wales.
In other legislation that provides for a maximum penalty of 12 months’ imprisonment on summary conviction, a provision concerning magistrates’ current sentencing powers is included to provide that reference to “12 months” is to be read as reference to six months until the relevant provisions of what will be the Sentencing Act are commenced. The amendment adds a similar provision to the Trade Bill.
I hope noble Lords will support these minor and technical government amendments.
Baroness McIntosh of Pickering (Con)
My Lords, I express my gratitude to my noble friend Lord Grimstone for making these amendments. This flags up a constant issue, whereby issues are raised late and at quite short notice by the devolved Administrations, but it also flags up a broader issue for another day as to where we are with the common frameworks.
I want to put one question to the Minister about the remarks that he has just made. He refers to the fact that the Cabinet Office will be responsible for disclosing this information and making it available to the devolved Administrations under Clause 9. He went on to say that in future they will now be consulted under Clause 9. I want to go one step further and ask him, in the usual way, that they are not just consulted but that the Government wait for them to give their consent to these changes, particularly if they might not just be technical but could be substantial. It is extremely important to keep the devolved Administrations on side, given that there will be elections at some point in the future where this could be used to the Government’s disadvantage. Could the Minister just confirm that they might await consent rather than just consultation?
Baroness Neville-Rolfe (Con)
My Lords, as I am very supportive of this Bill and of my noble friend Lord Grimstone, I put my name down to support the Government. However, having listened to earlier exchanges on both information and legal privilege, and having studied the wide power in Clause 8(1), I am a little uneasy that the data being collected can be passed on to devolved authorities in the way provided for in Amendment 86. The devolveds will obviously have very different objectives on international trade that are not always compatible with those of the Government, and they may take a different view on who in the public or private sector can safely be sent data that in some cases will be confidential and sensitive to a company’s competitive position. I assure noble Lords that other countries in the world would not be so keen to risk the interests of their businesses.
As the noble Lord, Lord Bassam, has said, we are not entirely clear who will be targeted. Will individuals be informed that their circumstances, if only reflected in a number, are the subject of trade policy discussions? I was thinking about scotch and the much smaller distilling interests in other parts of the UK. I am afraid I am also not entirely clear as to what borders my noble friend was talking about, although obviously I will look very carefully at his comments. As we are still in Committee, and therefore at the probing stage of some of these important amendments.
I am both curious about and a little uneasy with Amendment 89 from the noble Lord, Lord Stevenson, which I think forms part of this group. I was hoping to hear from him, particularly as I am not familiar with the customs legislation referred to. However, if I have understood it correctly, he seems to be adding very fierce penalties—imprisonment and/or a fine of up to 4% of a corporation’s annual turnover—for non-compliance. I have to say that I often agree with the noble Lord on business and enforcement issues, but these proposals could be disproportionate and damaging. They are penalties that stem in concept from EU law, notably competition law, and I have always had reservations about them. They seem likely to lead to companies hiring expensive lawyers and, more generally, to a loss of common sense and humility. I would also like to understand whether the financial penalties would apply to officials as well as to private operators. I suspect not, but the Minister may be able to clarify these matters.
To conclude, I urge my noble friend to be very careful in this area. The amendments are technical but it is very important that we get them right.
The Deputy Chairman of Committees (Baroness Garden of Frognal) (LD)
I will take advice from the clerk.
Baroness McIntosh of Pickering (Con)
We find ourselves in strange circumstances and I find it a little disconcerting. I have asked one specific question to which I would like a reply before the government amendments are adopted. Once they leave here, they become part of the Bill and we cannot come back on Report.
The Deputy Chairman of Committees (Baroness Garden of Frognal) (LD)
I wonder whether I could take advice from the Minister on whether to call a Division.
Trade Bill
Baroness McIntosh of Pickering ExcerptsTuesday 13th October 2020
(3 years, 6 months ago)
Lords ChamberRead Full debate Trade Bill 2019-21 View all Trade Bill 2019-21 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 128-VI(Rev) Revised sixth marshalled list for Committee - (13 Oct 2020)
Baroness McIntosh of Pickering (Con)
My Lords, I am grateful to the noble Lord, Lord Purvis, for giving me the opportunity to probe one particular aspect under this amendment. I also note my regret that, despite the rather energetic notes my noble friend Lord Younger of Leckie took when I asked about the rollover agreements with the economic partnership agreement countries, I have not had an answer to my question. I would be most grateful if I could have an update from my noble friend on that point before Thursday.
On the existing impact assessment and the EU agreements we have, it is worth noting that they account for only 15.7% of our trade. They are quite limited in size.
This is an interesting amendment because, at the virtual Conservative Party conference that we held last week on 4 October, we heard, apparently for the first time, the Secretary of State for International Trade, my right honourable friend Elizabeth Truss, announce that the International Trade Committee in the other place will receive a signed deal in advance of it being laid before the CRaG procedures and—this is what is new, certainly to me—an independently verified impact assessment on environmental, social, animal welfare and economic issues before the committee consults with industry experts and produces a report.
I want to take this opportunity to ask my noble friend whether this is new. When will the first such impact assessment be laid? Can he explain who will do the independent verification of such an impact assessment? I for one would certainly welcome such an impact assessment, as I am sure industry and consumers would, but I am slightly baffled as to who would do the independent verification. I would be very keen to learn that.
Lord Judd (Lab) [V]
My Lords, this is a very important impendent indeed, and we have cause to be grateful to all those who put it on the agenda. I have never understood how you can have an effective free market of any kind without the free movement of people. It makes a nonsense of it. In that sense, the arguments have been very well rehearsed in this debate. I would just like noble Lords to know that at least one of us on these Benches—I am sure there are many more—is very much behind the amendment.
Baroness McIntosh of Pickering (Con)
My Lords, I will focus on the narrow words in the amendment on
“the same reciprocal rights to work, live and study for the purpose of the provision of trade in goods or services.”
I make a plea to my noble friend Lady Noakes that we are trying here to grapple with reality.
I declare an interest. I practised law for approximately three years in two separate law firms in Brussels. I want to extend the same opportunities that I had to this brave new world now that we are outside the European Union and permit our qualified solicitors, barristers and advocates to do the same. What worries me is something that has been shared today in the report looking at reciprocal rights published by the EU Committee, The Future UK-EU Relationship on Professional and Business Services. I will quote from it and make sure that Hansard gets the right reference so that everyone can find it. The report summarises the default position that has been adopted; I know that this does not fall within the remit of this Bill but our free movement with the EEA does. The committee notes that the default position of the Government is mutual recognition; that is fine, but it is not happening on the basis of reciprocity.
I want to use this opportunity to probe my noble friend Lord Younger of Leckie: when he comes to reply, can he update the House as to where we are on the reciprocal arrangements, particularly with the EEA countries, under the rollover agreements? My understanding when the relevant statutory instruments went through this place was that we were, quite rightly, allowing qualified lawyers from EEA countries to carry on practising here but our qualified barristers, solicitors and advocates were not given the reciprocal arrangements. That is just plain wrong.
I recall that, at the time, a number of professionals, particularly lawyers, qualified under other jurisdictions, such as Dublin, and I was shocked to see how the cost of requalifying went up incrementally to accommodate their rights to do so. The report is very timely and highlights the fact that mutual recognition is not as reciprocal as one would hope with the EEA countries. I hope that my noble friend will put my mind at rest, as this is an area—the free movement of services—where the World Trade Organization’s record is not particularly good; it tends to be patchy. As other noble Lords have alluded to, today’s report states:
“Professional and business services are an important part of the UK economy”,
accounting for 12% of our gross value added. Others have spoken about different aspects of the economy; I just ask my noble friend that question about the professional services provided by lawyers.
Lord Bradshaw (LD) [V]
My Lords, I speak from my background as somebody who has worked in logistics. I will not enter into the economic or moral arguments, although I have strong views on both. My life has been spent moving people and freight by planes, ships, lorries and trains through airports, stations and other facilities.
Last week, the Government published a large document with detailed instructions as to how this was to be carried out in future. I received part of it last night and read some of it this morning. It is very complicated and is aimed at an industry used to carrying out instructions if they are communicated in fairly simple terms and in a logical and timely fashion. The document does not pass either test; it has been published within a few weeks of our leaving the EU and, as I said, it is complicated. It has to be understood by a lot of people low down the food chain—not lawyers but lorry drivers or people operating fork-lift trucks.
“International Trade Commission
(1) The Secretary of State must by regulations made by statutory instrument establish a body corporate called the International Trade Commission (“ITC”) within one month of the passing of this Act.(2) The ITC must establish criteria for maintaining standards as high as, or higher than, standards applied within the United Kingdom at the time of import for goods imported under a trade agreement between the United Kingdom and any other state.(3) “Standards” under subsection (2) includes, but is not limited to, standards relating to—(a) animal welfare,(b) protection of the environment,(c) food safety, hygiene and traceability,(d) plant health, and (e) employment and human rights. (4) A Minister of the Crown may not lay a copy of an international trade agreement before Parliament under section 20(1) of the Constitutional Reform and Governance Act 2010 that contains provisions relating to the importation of goods into the United Kingdom unless satisfied that the criteria established by the ITC under subsection (2) have been met.(5) The Secretary of State must allocate such sums to the ITC as the Secretary of State considers appropriate as required in order to perform its functions.(6) A statutory instrument containing regulations under subsection (1) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.”
Baroness McIntosh of Pickering (Con)
My Lords, I am delighted to move Amendment 54 and speak to Amendment 55, which is in my name and those of the noble Baronesses, Lady Henig and Lady Ritchie of Downpatrick, to whom I am grateful. I am also grateful to them and the noble Baroness, Lady Jones of Moulsecoomb, for supporting Amendment 54.
At the outset, I shall refer to something that my noble friend Lord Grimstone of Boscobel said in Grand Committee on 6 October, in reply to an earlier debate. He said:
“It would require a statutory process for these food standards to be altered.”[Official Report, 6/10/20; col. GC 198.]
I should like to place on record my understanding, which was echoed by the noble Lord, Lord Purvis, that food standards are set by statutory instruments, by regulation. The noble Lord, Lord Purvis, referred to one in particular. So the regulations could be amended or repealed by statutory instrument. The reason why that is important, and why I refer to it in the context of Amendments 54 and 55, is that because of what happened yesterday there is a greater need to put these issues into the Bill to become primary legislation that can be repealed only by further primary legislation. I do not wish to dwell on what happened, but it was extraordinary. Amendment 16, in the name of the noble Lord, Lord Grantchester, was voted down, but Amendment 18, which was passed by an overwhelming majority in this place, was taken off the table.
That begs the question that I am exploring through these two probing amendments to see whether we take them further on Report. Can the Minister say what resources in terms of staff have been made available to the Trade and Agriculture Commission, which currently has only a six-month remit? My distinct impression is that it has no staff and that every meeting convened and every press conference held is staffed by members of the Department for International Trade. Does the commission have a separate budget? If so, what we are proposing in the amendment will be miniscule in comparison to the existing budget of the commission. If it has no budget and relies completely on the resources and staff of the Department for International Trade, it is—I am sorry to use the word—a sham, an empty vessel, there in name alone, purely as a sop to the farm lobby.
That is borne out by the fact that on 29 September, a shadow trade commission was set up, the Future British Standards Coalition. It includes representatives of Sustain, the leading body, as well as the Tenant Farmers Association, Public Sector 100 and many more organisations. I understand that it will be attended by the noble Baroness, Lady Boycott, and my noble friend Lord Randall of Uxbridge. As far as they are concerned, there is a need for a shadow body on an ongoing basis to set the criteria for future trade agreements, to check the criteria of the existing roll-over agreements that are before us today and to report to this place, in particular, to our International Agreements Sub-Committee.
There was great dismay that yesterday’s amendment on international standards in the name of the noble Lord, Lord Grantchester, was not carried. I declare that I am an associate of the British Veterinary Association, as set out in the register, whose president, James Russell, said yesterday:
“If the Government won’t legislate to protect our standards it is vital that the Trade and Agriculture Commission is given more powers and stature to safeguard them in future trade deals.”
I am going slightly further in my probing amendments and I draw my noble friend’s attention—I know he does his homework and I am sorry if I spoilt his weekend—to the paragraph on page 79 of the Henry Dimbleby report. This is the only reference I am going to make to that report and the annexe. In its recommendations to the Government, he says:
“The Government should give itself a statutory duty to commission an independent report on all proposed trade agreements, assessing their impact on: economic productivity; food safety and public health; the environment and climate change; society and labour; human rights; and animal welfare. This report would be presented alongside a Government response when any final trade treaty is laid before Parliament. Sufficient time must be guaranteed for the discussion of these documents in the House of Commons, the House of Lords, and by the relevant select committees”.
Lord Grimstone of Boscobel (Con)
I thank the noble Lord for his question. We will come to GSPs in a later debate; if the perceptive points he made are not answered then, I will perhaps write to him. Secondly, I always keep an open mind about the matters that we debate. We will reflect on the debate that happened in the other place last night.
Baroness McIntosh of Pickering (Con)
I am grateful to those noble Lords who contributed. I would be most grateful if my noble friend could extend his invitation to the noble Lord, Lord Stevenson, to myself and the other co-signatories of this amendment, and perhaps also invite the noble Lord, Lord Purvis. This formula worked extremely well with his predecessor, the noble Baroness, Lady Fairhead, who I am sure would commend it to us.
I suspected, even though I raised this in the House yesterday, that my noble friend would not have the figures on the Trade and Agriculture Commission’s budget. He will be pleased to know that I have the topical Oral Question on Thursday, when I am sure he will be able to provide those figures because they are the subject of the Question.
The International Trade Secretary herself referred to Kenya as a wonderful new country that we are going to do deals with. It subsequently found itself in a spot of bother with avocado pears; we will certainly wish to revisit that.
I do not think that any of the signatories to these amendments intend to tie the Government’s hands; indeed, I do not. The purpose of the amendments was to understand the thinking on the role of, and resources available to, the current Trade and Agriculture Commission. I have no doubt that current members of the commission do not wish to carry on, so this is an opportunity to either reappoint new members to the Trade and Agriculture Commission or revamp it into a new body, such as the one in the US calling itself an International Trade Commission.
Lord Judd (Lab) [V]
It is always a pleasure to speak to an amendment moved by my noble friend Lord Hain on Northern Ireland affairs. His commitment to Northern Ireland is second to none, and he always speaks with great authority and concern.
The progress towards building a better future for Northern Ireland and indeed the Republic has been remarkable. However, it is a human story in which very many people have been involved and committed themselves. A great deal has been happening at the community level in Northern Ireland. Central to all that has been the need for trust. A great disturbance was caused to that healing process based on trust when we came out of the European Union because the minority population in Northern Ireland had always felt that when we were in the European Union, they had the authority of the institutions of Europe, not least the court and everything, which were there to reassure them. That was a big shock.
We then negotiated the protocols. The protocols again are crucial not just technically in trade matters but as a process of building a situation in which there can be trust and faith in the future. It is impossible to overemphasise the importance of the Good Friday agreement. Let us never forget that the Good Friday agreement became possible by the magnificent work of Tony Blair and his colleagues, but also because of the work done, before Tony Blair took office, by John Major and his colleagues.
We have a huge responsibility and we must never do anything inadvertently or indirectly—as well as directly —to undermine that process of trust building and confidence in the future. These should be our guiding principles in all that we are tackling in trade matters and I am glad that we have my noble friend Lord Hain watching it like a hawk.
Baroness McIntosh of Pickering (Con)
My Lords, I welcome the opportunity with this small group of amendments to press forward some of the evidence that we heard on the EU Environment Sub-Committee, on which I have the privilege to sit. While my noble friend Lord Lansley said that this amendment should not be needed, I rather regret that it may be and I would like to take this opportunity to press my noble friend the Minister in this regard.
The Government have made a commitment under the Northern Irish protocol that there will be unfettered access for goods moving from Northern Ireland to the rest of the United Kingdom. The position on exit summary declarations is as yet unclear and the discussions between the Government—presumably Defra and the Department for International Trade—and the Assembly in Northern Ireland do not seem to have been going as straightforwardly as one would wish.
In the letter that we wrote to the Minister—I believe in September, so we probably have not had a reply—we highlighted the need for training and awareness raising in what information gathering those we heard from, including farming organisations, freight operators and other businesses involved in this trade, will be required to make and submit under the new checks and controls. Those we heard felt, as the noble Lord, Lord Hain, has said, that they would benefit hugely from a trusted trader scheme. It would be interesting to hear what state that is at.
With those few queries, I would be grateful if my noble friend could respond to the serious issues that were raised. This is pretty much the 11th hour. We are now in the middle of October and these checks and controls presumably are meant to be in place ahead of 1 January. These amendments provide for us to obtain an update at a timely moment.
Baroness Noakes (Con)
My Lords, I wish to speak only to Amendment 82 in this group. I generally try not to speak on matters about Northern Ireland, because life is too short.
I completely agree with what my noble friend Lord Lansley said on the trader support service. In particular, I am sure that, if there were a need for further support at the end of the two years, any responsible Government would ensure that such support was available. I remind noble Lords that it is a temporary facility in order to help traders become accustomed to the new arrangements, whatever they finally turn out to be. It includes training. It is not to take over from the traders handling the paperwork; it is to train them so that it becomes part of their everyday activities. In that context, two years may well still be enough, although I accept that there is uncertainty at the moment.
The amendment says that the service can be accessed at no cost—that is, of course, no cost to the trader, but there will be a cost to the public purse. I just say to noble Lords that, if they pass the amendment, they are walking straight into financial privilege.
Baroness Noakes (Con)
My Lords, I certainly support all that my noble friend Lord Lansley said about the importance of trade promotion and export promotion. Clearly, this is vital to underpin our success in a post-Brexit world. I also support the intention that underlies the amendment, which is to facilitate holding the Government to account for their delivery in those areas. I find it difficult, however, to support the amendment itself.
All amendments that call for reports need to be treated with a certain amount of scepticism. There is already a vehicle for delivering what the amendment asks for, which is the annual departmental report. If my noble friend had expressed his amendment in terms of a government-wide delivery on his aims, I could understand the need for it to be a free-standing report, but his amendment focuses on the Department for International Trade. Therefore, the annual report for the Department for International Trade should suffice.
There is also the International Trade Committee in the other place. We tend to be somewhat dismissive of the other place’s ability to scrutinise legislation well, but one of the things it does do well is to hold individual government departments to account. If you take the combination of a departmental report and the International Trade Committee in the other place, we have the mechanisms to achieve the very noble intents lying behind this amendment.
Baroness McIntosh of Pickering (Con)
My Lord, I personally welcome the idea of the Secretary of State laying a report before Parliament. I have a feeling that the Secretary of State may not be minded to do so.
I am reminded of the fact that I started my political career in the European Parliament, where one of my functions was to advise my noble friend Lady Hooper, who very kindly found a letter from 1983 that I think we should frame. When I became a Member of the European Parliament for Essex North and Suffolk South, rather than an adviser to MEPs, one of the things I enjoyed the most was leading delegations of businesses to countries such as Poland, Hungary and Czechoslovakia and introducing them, through department of trade contacts, to their opposite numbers, prior to them joining the European Union. It seems a bit sad, now that we have left the European Union, but they have the benefit of all my good work in that regard.
I would like to congratulate my right honourable friend Elizabeth Truss, Secretary of State for International Trade, for being brave enough to appoint, to my certain knowledge, the first-ever agricultural attaché to China, based in Beijing. They have been there now for possibly two or more years. It could even be five years—time flies. The consequences of that single act have been magnificent. Malton Bacon Factory has been a beneficiary to the tune of millions every year because it produces pork, and we do not eat the parts that Chinese consumers take to be very appetising such as pigs’ trotters, snouts, tails and ears. The very fact that we have had a commercial attaché based there goes to the heart of what we can do. I think they are paid something like 80% by industry.
The thinking behind the amendment is very good, and I would like to see more of it. The balance is about right in terms of funding by the industry itself, but there could be some pump-priming from various departments, such as in the case I mentioned of agriculture. I hope we can learn from other countries such as Denmark, which obviously remains in the European Union. In its exports of food, particularly farm products, Denmark punches way above its weight, as we found when I led a small delegation there from the Environment, Food and Rural Affairs Committee from the other place. Denmark has a whole network in countries such as China, and indeed other European Union countries, where it uses a little bit of state funding but mostly industry funding to market, export and promote its own goods. This is something Deliciously Yorkshire has done very cleverly at a regional and national level, and I hope it is something we can roll out. I hope my noble friend will look favourably on this amendment in that regard.
Lord Purvis of Tweed (LD)
My Lords, I am very grateful to the noble Lord, Lord Lansley, for moving this amendment. It has allowed us to generate a very high degree of cross-party support, and it is to be commended for that. I will try to respond to a valid point made by the noble Baroness, Lady Noakes, with regard to how reports are put together and where they best fit. I hope she does not mind me saying from these Benches that she made a good point, and that she can accept that, but maybe we need to just tweak it. If we tweak it, we may generate overwhelming consensus on this point.
I preface my remarks by referring to the work of the new all-party parliamentary group, which was so well laid out by the noble Viscount, Lord Waverley. I declare that I too am an office bearer for that group. I commend the noble Lord, other members, and the International Chamber of Commerce on their energy and direction in getting this group established. The noble Lord will forgive me if I ask that he does not invite me to any 4 am calls with the group, but I will be glad for him to send me the minutes of any discussions. In a moment I will touch on why that might be important.
I have been involved in politics since before I was elected as a Member of the Scottish Parliament representing the Borders constituency, an area extremely rich in textile heritage and industry. Having been born and brought up in that region, I have an enormous admiration for exporters. They are in many respects unsung heroes and the work that they do in supporting the UK economy can never be overestimated. They are not only men and women who trade, but pioneers searching out competitive new markets. They have to overcome many barriers, from languages to what can be very bad behaviour by companies in other countries, often on very low margins. They are at the front end. We can perhaps help them with getting cross-party support in our new trading relationships going forward from next January. I hope that the all-party group will focus on that.
I hope the Minister knows that I am sincere when I say that I will look at the Japan agreement. I will be looking at whether we are securing better market access for our textile exporters as well as guaranteeing Japanese market access to ours. As for myself and many friends of mine in the Borders, we are still stung by the multifibre agreement and the “cashmere wars”, and we know some of the challenges. This has been a long preface, but I am passionate about this.
In many respects, the support that we need to give our exporters as we go forward will be meaningfully different from what it has been in the past. I want to reflect on the different profile of trade. The noble Lord, Lord Lansley, mentioned this; I want to add some figures that I have seen from the WTO, which are quite stark. Between 1995 and 2015, the overall global most-favoured-nation tariff rate had declined from 6% to 4%; the tariff reductions had been very good. However, over a fairly comparable period from mid-2000 to 2015, non-tariff measures had grown from just over 1,000 to 2,500 as recognised by the WTO. By and large, that is because countries that are becoming more prosperous regulate their own domestic markets, introducing more standards—this links with the debate on the previous groups. On the one hand it is harder to export to those markets; on the other, those countries are operating on a basis comparable to us.
In many respects, the support that we give to our businesses allows them to understand some of these markets much more and to navigate their way around the non-tariff measures that those countries have put in place. Our whisky industry has become expert at this. In many respects, the Government learn as much from our whisky industry as many other businesses can learn from government about how to operate in the competitive global market; as we go into the “new world”, this will be important. As much as we want to advance and support our exporters, our competitor countries are doing that as well if not better.
“Trade negotiations with the EU: adjustment period
It shall be an objective of Her Majesty’s Government in negotiating a trade agreement with the European Union to secure an implementation period after IP completion day, allowing industries with just-in-time supply chains, including the farming sector, to make business-critical changes.”
Baroness McIntosh of Pickering (Con)
My Lords, I am delighted to speak to Amendments 70 and 95. The noble Lord, Lord Wigley, had very much hoped to speak this evening, as he has very kindly co-signed the amendments, for which I thank him. One of the idiosyncrasies of our procedures meant that he was not able to get on to the right Marshalled List. I know that he will be following proceedings very closely and I thank him warmly for his support. I look forward to hearing my noble friend Lord Lansley speak to his amendment on free zones. Free ports are something that I support, and anything that we can do to increase people’s understanding of free ports and the fact that we could join and create as many free ports as we liked while we were members of the European Union is all to the good.
The purposes of Amendments 70 and 95 are straight- forward. They look to introduce a short period of adjustment following the end of the formal transition period at the end of this year, particularly in relation to any free trade agreements with the EU, but also with our economic partnership agreements and rollover agreements under the Bill. This would allow industries in the farming sector to make business-critical changes following the outcome of these negotiations. Also, for business viability, it refers to the introduction of measures to facilitate trade with our partners, both in the EU in a future trading agreement and our current economic partners, with the EEA, EFTA and others, in the rollover and continuity categories of agreements. Also, again, it looks to the minimisation of compliance costs for the farming sector, including minimising veterinary checks and physical inspections on large volumes of food products moving between the UK and our partners, particularly the EU.
I know that many of these issues were touched on in the earlier amendments moved by the noble Lord, Lord Hain, so I take this opportunity to stress that we are dealing here with perishable goods, particularly fresh meat and produce. This is a particular source of concern to the British poultry business, which hopes that we will continue to have tariff-free access to the EU market to ensure quality, affordable British food. We should realise how important poultry is as an industry: more than half the meat we eat in the UK is poultry and 1 billion birds are reared for meat every year. The UK is the fourth largest producer of poultry meat in the EU and is about 60% self-sufficient.
We are very heavily dependent on trade. It is generally understood that, for trading purposes, your closest market is your best market, because obviously the cost of transport will be lower, and with this being fresh produce and, as I said, perishable, it is extremely important that we remove as many barriers as possible.
These are intended to be probing amendments, and I hope that my noble friend Lord Younger of Leckie, when he comes to sum up, will be able to put my mind at rest that it will be part of an objective in negotiating trade and continuity agreements as well as any eventual agreement with the EU to secure such an implementation period, allowing industries with just-in-time supply chains, including the farming sector, to make these business-critical changes.
I am acutely aware of the impact of this particularly on the Northern Irish border with the Republic of Ireland, so any light that my noble friend can shed on this would be extremely helpful. Equally, when I ask, in Amendment 95, to look at
“the minimisation of veterinary checks and physical inspections on large volumes of food products”,
I am aware of the shortage of veterinary scientists in this country. Has my noble friend and his department addressed this in this regard?
I therefore seek to achieve a commitment that the trade will be as frictionless and seamless as possible, as we were promised when we decided to leave the European Union. This will continue to be the case with the EEA, EFTA and the EU. With those few remarks, I beg to move Amendment 70.
Lord Lansley (Con)
My Lords, I am glad to have the opportunity, in this group, to follow my noble friend Lady McIntosh. She will forgive me if I do not speak to her two amendments but instead confine myself to Amendment 93 in my name, which relates to free zones and free ports. These are essentially the same thing; they are called free zones in the legislation that establishes the procedure for making them.
I draw noble Lords’ attention to the debate on 4 February 2019 on the previous Bill that was brought forward. I had a debate whose purpose was to propose a consultation on the future designation of free zones; of course, there were and are no free zones. The Minister at the time, my noble friend Lord Bates, replied to me on that subject then. I was asking for a consultation, and he said that he was not able to offer one but that
“The idea has been advocated”—[Official Report, 4/2/19; col. 1349.]
by himself and a number of others in the north-east, including the local MP Rishi Sunak. I see that time has moved on.
I am raising the same subject but do not need to ask for a consultation on the part of the Government, because they have now had one and are readying themselves, I hope, to respond to the product of that consultation. Back in February 2019, my noble friend said at the end:
“I am not able to be more helpful than that to my noble friend at this point, much as I may wish to be”.—[Official Report, 4/2/19; col. 1349.]
So I am looking to my noble friend on the Front Bench again today to be as helpful as he wishes to be.
Viscount Younger of Leckie (Con)
The noble Lord makes a very good point and I hope that he will not take this as being unempathetic; I am just making a point that focuses particularly on Brexit and the transition period. Putting aside the obvious huge problems that businesses are facing at the moment, there has been more than enough time—four years—for businesses to prepare. We have done our best to support them during this period.
Baroness McIntosh of Pickering (Con)
My Lords, I think my noble friend was doing quite well until that last remark. Saying “four years to prepare” when we have not even heard what the situation will be on the Northern Ireland border is not quite the approach I would have hoped for. My noble friend did not answer the question about the number of available vets. This is a source of great anxiety to many, particularly those with livestock as well as products crossing the border. I hope that my noble friend will be able to put my mind at rest on that at some point.
I agree entirely with what my noble friends Lady Noakes and Lady Neville-Rolfe said with regard to home-produced substitutions. To a certain extent, that should already be happening given that those involved in home-produced food have come into their own during Covid; other priorities are maintaining our existing markets and opening up third-country markets for trade in poultry, other meat and breeding stock.
I agree with the noble Lord, Lord Fox, who said that it is all very well to embrace change, but businesses need to know what that change is before they can do so. Certainly, all the evidence that we have heard as recently as this September, along with a letter that we have followed up with a different department, Defra, as regards the rules for the checks and controls on the borders, make it incumbent on us to get information out as best we can.
I am grateful for the opportunity to debate these issues. I have listened to what my noble friend Lord Lansley said. I just hope that we do not get to the situation that we can see in Luxembourg, which has almost more free zones than it has territory. If my memory is correct, Luxembourg has a very large number of free ports in comparison with the size of that state. However, I find it difficult to share in the enthusiasm of realising our destiny until such time as I am 100% sure of what our destiny will be. With those remarks, I beg leave to withdraw the amendment at this stage.
Trade Bill
Baroness McIntosh of Pickering ExcerptsThursday 8th October 2020
(3 years, 6 months ago)
Grand CommitteeRead Full debate Trade Bill 2019-21 View all Trade Bill 2019-21 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 128-V Fifth marshalled list for Grand Committee - (8 Oct 2020)
Baroness McIntosh of Pickering (Con)
My Lords, I will speak to Amendments 26 and 99, to which I have appended my name, and echo many of the concerns that have been expressed by previous speakers. I am delighted to have received a briefing from the Law Society of Scotland; as a non-practising advocate, I obviously heed what it says. It is an apolitical organisation that speaks for many of the practitioners in Scotland, and I would like to share with the Committee this afternoon some of its concerns, which have been echoed by previous speakers.
The society points out that the Scottish Government have highlighted a number of tensions between the devolved Administrations. We have just heard about the Welsh Assembly in an eloquent speech by the noble Lord, Lord Wigley, who spoke to Amendment 99. We also heard from the noble Lord, Lord Stevenson of Balmacara, when he moved Amendment 26. There is a very clear tension emerging between the devolved Administrations, Assemblies and Parliaments over the power reserved to the Government at Westminster, who are now negotiating trade agreements for the whole of the United Kingdom.
In the legislative consent memorandum lodged by the Scottish Government in the Scottish Parliament on 18 August this year, the Scottish Government recommended that Parliament agree to the Bill. But they pointed in particular to these amendments and Clause 2, which lies at the heart of these amendments, providing a power for both the UK and Scottish Ministers within devolved competence to make regulations to implement qualifying international trade agreements. I will ask the Minister to answer a very simple question, to go to avoiding this attention on this occasion. It is important that regulations are put in place in advance of the completion date of 31 December this year. Can the Minister confirm that these regulations will be in place and that there will be information-awareness campaigns for the general public, citizens and businesses, as well as professions in the UK, both north of the border and west of the border and at Westminster, so that the terms of these agreements and their implications are known?
For the reasons that the noble Lord, Lord Wigley, gave, it is extremely important to know that there will be a mechanism in the event that this tension, to which I referred earlier, leads to disagreements, and what that mechanism will be. It is also important that the common frameworks are made more public: it is not acceptable that they are currently shrouded in mystery. So I hope that my noble friend will take this opportunity to put a date on when these regulations will be in place, tell us what the dispute-resolution mechanism will be and confirm that there will be an information campaign north and south of the border in this regard.
Baroness Suttie (LD) [V]
My Lords, it is always a pleasure to follow the noble Lord, Lord Wigley, and the noble Baroness, Lady McIntosh, both of whom always speak with such passion and conviction, particularly on these matters. This group of amendments, including Amendments 61and 62, to which I have added my name, is about establishing the principle of the need for consultation and consent with the devolved authorities and legislatures, and about laying down some markers for how we can establish open and effective methods for dispute resolution in our unwritten constitution.
As the noble Lord, Lord Wigley, has said, more than 20 years on since the various devolution settlements were agreed, the stresses and strains of our uncodified system are in danger of being tested to breaking point as a result of Brexit. Future United Kingdom trade deals risk highlighting these stresses and strains yet further, which is why it is so important to test the Government’s responses to many of these issues as we debate these amendments this afternoon.
Twenty years ago, when the devolution settlements were being devised, there were fewer party-political stresses on the system, as Labour was in power—in coalition or otherwise—in Edinburgh, Cardiff and Westminster. Clearly, now that we have an SNP Government in Edinburgh, a Labour-led Administration in Wales and a re-established power-sharing Executive in Belfast, as well as a fairly nationalist Conservative Government in Westminster, our mechanisms of consent and trust are being tested to the limit.
I should perhaps declare an interest as a Scot with an Irish passport currently living in the county of Kent. Those of us who are not nationalists have a collective interest in ensuring that we find ways to make our future constitutional settlement and trading relationships work effectively throughout the whole United Kingdom. I therefore hope that the Minister agrees that providing the necessary information to the devolved legislatures to allow scrutiny of any future trade agreement—as set down in Amendment 62—is the very least that can be expected and is surely in everyone’s best interests. Providing the text at least two months before the agreement and inviting comment from the devolved legislatures would provide the kind of buy-in and involvement that will assist in developing coherence in policy-making across the United Kingdom.
We should remember that this should always be a two-way flow of information. The UK’s devolved legislatures are often in a stronger position to understand the impact of new trade deals on local businesses and communities. Obviously, this is particularly true in the case of Northern Ireland, where the impact on SMEs could be very significant, not least because of the complex supply lines. Does the Minister acknowledge that free trade agreements will have a direct impact on the effectiveness and scope of devolved policy-making and legislation? Does he also accept that consent mechanisms with the devolved Governments are vital to maintaining the coherence of our United Kingdom?
I will turn now to a very specific FTA: that of Japan. Can the Minister say to what degree the Northern Ireland Executive and Assembly were kept informed during the negotiations, given the very particular set of circumstances faced by Northern Ireland resulting from the Northern Ireland protocol? Does he accept the analysis of a Stormont official who said the week before last:
“Some Japanese goods sold in Britain as part of a new trade agreement may not be available in Northern Ireland due to the Brexit deal”?
Turning to the future role of the Joint Ministerial Committee—covered in Amendments 50 and 76—it should be noted in passing that, despite his new title of Minister for the Union, the Prime Minister has not yet presided over a plenary session of the JMC, as far as I am aware. The JMC has until now been a consultative rather than a decision-making body but, given the likely increase in tensions, surely it makes sense to increase both the frequency of meetings and their capacity for decision-making.
As Professor Nicola McEwen said in her evidence to the Lords Constitution Committee a couple of weeks ago, the JMC on EU negotiations is currently the best-functioning of the JMCs, but is likely to cease to exist at the end of transition period and, as yet, there are no clear indications of how it will be replaced. Can the Minister say whether there are plans to ensure that the JMC meets more frequently? What plans are there to replace the JMC on European negotiations from 1 January next year? Does the Minister agree that it is increasingly vital to have regular meetings of the JMC, so that we can have greater consultation and co-ordination? Can he also say whether thought has been given to establishing additional sub-committees within the JMC framework to discuss such issues as international trade and international relations?
No doubt the Minister will say in his reply that all sorts of assurances on consent and consultation have already been given, but, for those kinds of assurances to carry weight, there has to be a significant level of trust. Tragically, that trust has been eroded throughout the whole Brexit experience, which has led to the very real need for the amendments we are discussing, and the need to put mechanisms for both consultation and consent in the Bill.
Baroness McIntosh of Pickering (Con)
In principle, I have some sympathy with the amendments. My concern goes to the heart of the ministerial discretion in appointing and reappointing members of the Trade Remedies Authority. I am attracted to a period of two terms of five years and I would be interested to know the thinking of the noble Lord, Lord Purvis, in reducing it to three years. A maximum of two terms of five years would seem more appropriate. In probing my noble friend’s thinking in this regard, I am obviously wedded to the idea of parliamentary scrutiny and would be interested to know whether he does not share my concern that there might be too much ministerial discretion in appointing and reappointing members, which goes to the heart of the independence of their terms of tenure. I will wind up by saying that I think that five years is more appropriate—unless I could understand better why three years and a maximum of six years was put forward on this occasion.
Baroness Kramer (LD) [V]
My Lords, I will be exceedingly brief. My noble friend Lord Purvis of Tweed has made the case and I am not able to better it. I just want to raise an underlying principle. I suspect that every Member of this House is very cautious of any power that enables the Government by regulation to change primary legislation of any kind. Where it is necessary to provide that power, there should generally be a principle that the time period is as short as possible and that power is as limited as possible. Otherwise, we begin to compromise the whole concept of primary legislation and the purpose and meaning of parliamentary legislation.
Three years is surely a perfectly adequate time to be able to make any implementing changes necessary as continuity agreements are negotiated and signed. The underlying principle is one that the House needs to pay attention to. Setting precedents allowing an entire Parliament to pass during which period powers are given to a Government to override primary legislation through regulation, even if it is in a constrained environment, is a principle that we must absolutely challenge.
Baroness McIntosh of Pickering (Con)
I support Amendments 47 and 98, to which I have appended my name, in particular. I thank the noble Lord, Lord Purvis, for the clarity with which he introduced his amendment in this small group.
When we come to a later group, I will address the issue of what is lacking and make the case for why we need an international trade commission, but I will not rehearse those arguments now. Instead, in support of the arguments of the noble Lord, Lord Purvis, let me say that, under the current situation of CRaG and the 21 days, we will be in a substantially worse position than the one in which we have found ourselves in the past. Having been an MEP for some 10 years, I was in a position to look in detail at some of the agreements that were negotiated by the European Union on Britain’s behalf. I am sorry to put my noble friend the Minister in this position but it seems extraordinary that we will put ourselves in a weaker position than the one we enjoyed as part of the European Union when we are meant to be strengthening our position by negotiating these deals in our own right. I believe that this area has to be addressed.
Amendment 47 sets out the case for a post-ratification report and a timeframe within which it should be done. I think this is particularly important because I have looked at some of the figures that have been made available to us by both the Library of the House of Lords—I almost said “Library of the House of Commons”—and individual organisations such as the Food and Drink Federation. Food and drink is our greatest export, followed by—I am trying to think what it is called. In all three major industries, including cars and whatever we discussed in Committee yesterday—which will come back to me in a moment—all our exports to EU countries and overall have gone down substantially because of Covid.
The one that bucked the trend, interestingly, was with Norway. I understand informally from the noble Lord, Lord Purvis, that the rollover agreement has now been signed. That is good to know. Apparently, our exports to Norway went up incrementally in the last year, by some 45%. I would be interested to know what caused that. The situation is that, apart from Norway, we have suffered substantial falls in our exports. I will not repeat at length what was discussed earlier but, because of tariffs imposed on Scotch whisky, we have had a big hit on sales of Scotch whisky to the US. Therefore, I believe there is a strong argument for post-ratification support, as set out in Amendment 47. I would like a good reason from the Minister as to why that should not be the case. It goes to the heart of the case that the noble Lord, Lord Purvis, is making for the whole group of amendments on why we need to strengthen parliamentary approval of agreements and initial scrutiny of them before they come into effect.
Amendment 98 is in the name of the noble Lord, Lord Stevenson, and I have appended my name. It proposes that powers in the Bill would not come into effect without a parliamentary vote on either anEU-UK free trade agreement or ending the transition period with no deal. I realise that we are looking at continuity agreements and I cannot see why that should not be the case with continuity agreements as well. He neatly sets out why there should be further parliamentary scrutiny and a vote before a future trade agreement comes into effect.
I will look at one rollover agreement, on which the noble Lord, Lord Purvis, secured a separate debate in the last Parliament, and that was the agreement with the Faroe Islands. We export the small amount of £98 million-worth of goods to the Faroe Islands, but we import £200 million-worth, mostly of fish. That is again damaging, not just to the Scottish economy but to the rest of the UK where fish is produced. So there are a number of reasons why we as parliamentarians need to keep an eye on the trade flow with these countries. If we are not given the chance to—and I honestly do not believe that the 21 days of the CRaG procedure is enough—in my view, the Minister should come up with a very good reason why there should be less parliamentary approval than that which we enjoyed in the past. I declare an interest, in that regard, as a former MEP.
Baroness Finlay of Llandaff (CB)
My Lords, I am most grateful to the noble Lord, Lord Purvis of Tweed, and the noble Baroness, Lady McIntosh of Pickering, for so eloquently laying out the issues. In some ways, I hesitate to come in after their vast experience. But, as so often at this stage of proceedings, my purpose in supporting this amendment is not so much in the expectation that every word of it will be enacted—as we are now in Committee—but to make a very important point that I hope the Government will reflect on and address.
We are one-fifth of the way through this 21st century, and on the eve of an era where, outside the EU, we will be more reliant than ever on negotiating trade agreements. Trade policy is simply too important to be determined solely by Ministers wrapping themselves in some cloak of royal prerogative. As the Supreme Court reminded us, prerogative powers should not be used to curtail the rights of Parliament, and in particular the elected House, to hold the Government to account.
Baroness Northover (LD) [V]
My Lords, I am pleased to speak in support of Amendments 39 and 97 in the names of my noble friend Lord Purvis of Tweed and others. Clearly, any trade deals that we agree must be in keeping with our international commitment to the sustainable development goals. We keep our agreements, do we not?
The MDGs agreed in 2000 pledged to halve extreme poverty by 2015. We know that economic development and trade played a major part in that being achieved. The SDGs were put in place in 2015, building on the previous period, and pledged to eliminate extreme poverty by 2030, at the same time leaving no one behind—so you were not dealing with averages. As my noble friend Lord Chidgey has just pointed out, the SDGs recognise that ending poverty must go along with human development through improving health and education, reducing inequality and increasing economic participation, while tackling climate change.
My noble friend Lady Sheehan pointed out that we in the UK led on this. Indeed, Andrew Mitchell, as Secretary of State, worked very hard to ensure that Prime Minister David Cameron led on this internationally. Much of the framing of the SDGs was carried out by DfID, in particular by one of its directors. I had the privilege to be a DfID Minister in the coalition during this period, and was the Minister in the Lords when my noble friend Lord Purvis took through the 0.7% Bill as the last piece of legislation by the coalition.
There have been long years of engagement by the EU on trade agreements with developing countries. There was an important shift in the realisation of how the EU, as a major economic power and the biggest aid giver in the world, could either damage the poorest around the world or assist them. Major engagement now goes into seeking to benefit developing countries and if we are to have continuity, we have to have continuity here too.
As we seek to agree trade deals with such countries, the UK must address the SDGs too. They apply in the United Kingdom, as the noble Baroness, Lady Bennett, has pointed out, as well as internationally. We know that this is right, and that it is in our interests. Can the Minister say, for example, which African countries have yet to agree rollover arrangements and what the sticking points are? What happens if these are not agreed by the end of this year? Will the Government guarantee existing market access for developing countries and undertake thorough and timely assessments of the impact of any changes, looking at this through a development lens?
The Government have said that any trade deals with developing countries will be in keeping with our commitments to the SDGs. I expect the Minister to reiterate this. The safest and easiest thing to do would therefore be to put this commitment in the Bill. I look forward to hearing what the Minister says.
Baroness McIntosh of Pickering (Con)
My Lords, I am grateful to the noble Lord, Lord Purvis, for giving me the opportunity to press the Minister on a couple of issues in the context of these amendments. Amendment 39, which relates to the sustainable development goals, is presumably a bit like motherhood and apple pie—something we would all wish to sign up to. Equally, Amendment 97, which calls on the Minister
“to report annually on the impact of trade agreements to which the UK is party on the world’s least developed countries”
will strike a chord with the Minister—my noble friend Lord Younger—regarding his remarks to me on day two of Committee that we want to avoid the unintended consequences of free trade agreements with these countries.
My specific question follows on from the remarks of the noble Baroness, Lady Sheehan, who expressed her wish to have expedited rollover agreements with African countries. I would like to press my noble friend on this. This seems bizarre. The United Kingdom was at the forefront, since so many of our Commonwealth countries were involved, in negotiating agreements with African, Caribbean and Pacific countries. These agreements, I understand, have now been rolled over into—I forget the exact term—European partnership agreements. Will my noble friend take this opportunity to set out which ones have been rolled over, what the timetable is, and why we seem to be dragging our feet on them when it surely must be a political priority, given our historic relationship with so many of these countries?
The Lord Bishop of Blackburn
My Lords, new to the work of the Committee, I am impressed by your Lordships’ stamina during this long, five-hour session, so I will be brief, as before. I am grateful to the noble Lord, Lord Purvis, for proposing Amendments 39 and 97. It must be obvious to any with eyes to see that this planet and the environment are struggling to cope with the impact of our poor stewardship of their natural resources—the beautiful natural world that we, too easily, have taken for granted and abused. Whether it comes from the dulcet tones of David Attenborough, the announcement of the Earthshot Prize with Prince William yesterday or the sight of the damage that plastic waste is doing to so many species in our oceans, does not matter. What counts is our response.
I start by echoing the words of the most reverend Primate the Archbishop of Canterbury, who said that:
“Reducing the causes of climate change is essential to the life of faith.”
It is the way in which we express love and concern for our neighbours. Despite the overwhelming contribution of many so-called developed countries to try to hold back the tide of climate change, less-developed countries will lose most from the increases of global warming, which the Anglican Church feels keenly, because 90% of our communion is from the global south. The sustainable development goals of 2015 pursue a bold and ambitious agenda to tackle poverty and provide a sustainable future for the benefit of all people, wherever they live. It is a moral duty not to abandon those who are suffering and will suffer from the influence, such as ourselves, that we may bring to bear on others elsewhere. Sustainable development goals are a matter of concern for the other. Trade with the UK is more than a simple monetary exchange enriching individuals, organisations and businesses; it is a moral co-operation for a brighter future for all.
Passing these amendments would be a statement and sign of the Committee’s commitment to the most vulnerable in the world. It would express our intent and priority to look after others before ourselves, and will strengthen our relationship with partners around the globe. I hope these amendments will be accepted and find their place in stating the way that we, as a nation, choose to treat others and the world that God has entrusted to our care.
Motion
Trade Bill
Baroness McIntosh of Pickering ExcerptsTuesday 6th October 2020
(3 years, 6 months ago)
Grand CommitteeRead Full debate Trade Bill 2019-21 View all Trade Bill 2019-21 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 128-IV(Rev) Revised fourth marshalled list for Grand Committee - (6 Oct 2020)
Baroness McIntosh of Pickering (Con)
My Lords, I am delighted to follow the noble Lord, Lord Judd. I will speak in particular to Amendments 52 and 94 in the name of the noble Lord, Lord Stevenson of Balmacara, to which I have appended my signature. I would like to use this opportunity to probe my noble friend on the precise state of the dispute resolution mechanism generally, as well as in relation to ISDS, but I have a lot of sympathy with other amendments in this group.
I will leave the details of the amendments to the noble Lord, Lord Stevenson of Balmacara, but, using them as a vehicle, I refer to the Library Note, which states on page 8 that
“the Government states it may need to implement the results of an arbitration/alternative dispute resolution decision under a continuity agreement.”
On page 9 of the Explanatory Notes, the Government state:
“This could include, for example, implementing decisions made by a joint committee of the parties set up under a trade agreement or implementing the results of an arbitration/alternative dispute resolution decision.”
I will refer to some examples, although not as many as we had from the noble Lord, Lord Hendy, in his excellent opening speech on this group of amendments. There does not seem to be any parity given, in the EU application for the review of subsidies before the World Trade Organization, to Boeing. The dispute that the EU—and through it, the UK—has brought with regard to America giving subsidies in large measure to Boeing does not seem to have got very far very quickly, whereas the decision taken by the US Administration against the EU for the claim that was brought for subsidies and action for Airbus brought a very swift response from the US that has in particular harmed Scotch whisky.
In answer to the noble Baroness, Lady Chakrabarti, I entirely endorse what my noble friend Lord Lansley said: one of the reasons we are here is as legislators, whatever background we are from. I declare for the record that I am a non-practising Scottish advocate.
Scotch whisky is our largest export of food and drink—probably one of our largest exports of any product—and it suffered a 27% decline in exports in the fourth quarter of 2019. This has brought enormous tension within the UK. The Scottish Trade Minister has said on numerous occasions—most recently as reported in the Times this weekend, or perhaps today; I am not sure—that the Scottish Government would like to see a much more rigorous approach by the UK Government and the EU as a whole to see these subsidies lifted. It raises a more general question. I understand that the Trump Administration have made a general threat to walk away from the World Trade Organization mechanism.
So I will use this little debate to ask my noble friend: what is the status within the continuity agreements, particularly those that have already been signed, of the dispute resolution mechanism? Has it been squared off with the devolved Assemblies? Are they all in agreement as to what the mechanism will be? Does my noble friend share my general concern that it takes a woefully long time for a dispute resolution to be reached under the World Trade Organization—something that is now compounded by the threat on the table by one of the biggest players to walk away? In addition, can my noble friend tell us what the status is with the devolved Governments, and what the dispute resolution mechanism is that has currently been agreed under those rollover agreements?
I place on record my concern at the impact on one particular product, which happens to be our major food and drink export, beyond doubt—Scotch whisky—and ask when my noble friend the Minister might expect a resolution.
The Deputy Chairman of Committees (Baroness Fookes) (Con)
My Lords, the noble Baroness, Lady Bennett of Manor Castle, has withdrawn, so I now call the noble Earl, Lord Caithness.
The Deputy Chairman of Committees (Baroness Finlay of Llandaff) (CB)
I remind noble Lords to switch off devices while we are in Grand Committee. It is quite disturbing and disruptive.
Baroness McIntosh of Pickering (Con)
My Lords, I thank the noble Lord, Lord Grantchester, for introducing this group of amendments. I congratulate the noble Lord, Lord Purvis of Tweed, on beating me to the starting post. I, too, pay tribute to my noble friend Lady Fairhead on this amendment, which had cross-party support as an amendment to the Trade Bill 2019 in the previous Parliament, and for her patience in meeting all of us who were involved in its drafting. She was very kind in taking different parts of the various groups of amendments, and it is bewildering to see that it is no longer part of this Bill.
I pay tribute also to those campaigns. The noble Lord, Lord Grantchester, referred to the Daily Mail. I add the Farmers Guardian and, closer to home, the Yorkshire Post. Yorkshire has a massive food cluster, in terms of farmers and food producers and processors, so this is a subject that is very close to their heart. The background to Amendment 23, as far as I can see—and also Amendments 24 and 25, which I shall come on to in a moment—is that it should reflect the work and the debates and the amendments on the Agriculture Bill, as the noble Lord, Lord Grantchester, set out. It also reflects the manifesto commitment, with which the Minister will be even more familiar, that we want to have high environmental standards and animal welfare going forward in our rollover agreements and in future agreements as well.
I go further and say that we have to have fair competition and a level playing field. I would like to have an assurance today from the Minister that he expects that imported food products will meet the same standards and that it is not the intention of the Government to allow in food products which will actually undercut our own producers, and then to proceed to place a tariff on them, with a label on the finished product to say that that is what it is. “This is chlorinated chicken, it does not meet our animal welfare standards, but it is safe to eat if that is what you want to eat.”
This takes us back to the very sorry situation we found ourselves in under—dare I say it—a previous Conservative Government, which I supported, where we unilaterally imposed a ban on sow stalls and tethers but allowed producers to produce pork with sow stalls and tethers in Denmark, Poland and other countries and then allowed those imports to be introduced onto our supermarket shelves. The consumer did not understand the farm tractor label and went on to buy on price, and the result was that more than 50% of our pig producers went out of production almost overnight. Surely, that cannot be the intention of the Government in this case. I make a plea to my noble friend to reinstate the original clause by adopting the amendment, either today or on Report. That is what most of us would like to see.
I thank the noble Baronesses, Lady Henig and Lady Ritchie of Downpatrick, for lending their support to Amendment 24. I would like to add food safety to this for the reasons that we discussed at the time with my noble friend Lady Fairhead, and which I repeat now. The case has been strengthened by the reference made by my noble friend Lord Gardiner when summing up the Second and Third Readings of the Agriculture Bill. He referred to the multiple protections that the Government have put in place, not least the role of the Food Standards Agency and Food Standards Scotland to which the noble Lord, Lord Rooker, referred. Keeping food safety in Amendment 23 would protect that.
On Amendment 25, I again thank the noble Baronesses, Lady Ritchie of Downpatrick, and my almost noble friend the noble Baroness, Lady Jones of Moulsecoomb, for supporting this amendment. I would like to put my noble friend Lord Trenchard’s mind at rest because when we have these debates he frequently says that he would like an assurance from the Minister that whatever we negotiate will be WTO-compliant. If he looks at the World Trade Organization pages, he will see:
“Environmental requirements can impede trade and even be used as an excuse for protectionism. The answer is not to weaken environmental standards, but to set appropriate standards and enable exporters to meet them.”
That is what we are trying to do here. We want to ensure that we make provision through any future regulations under the Bill—or any future trade agreement —that those regulations will not have the effect of lowering animal health, hygiene or welfare standards, the protection of the environment, food safety, hygiene, traceability or human and workers’ rights below EU or UK standards. The World Trade Organization goes on to say that we should be looking to have higher standards that could be met by all those wishing to participate in a particular free trade area agreement.
I will conclude by drawing my noble friend’s attention to the Dimbleby report that he was kind enough to read over the weekend. The executive summary on page 7 of National Food Strategy Part One states:
“Grasping the once-in-a-lifetime opportunity to decide what kind of trading nation we want to be. The essence of sovereignty is freedom—including the freedom to uphold our own values and principles within the global marketplace. In negotiating our new trade deals, the Government must protect the high environmental and animal welfare standards of which our country is justly proud. It should also have the confidence to subject any prospective deals to independent scrutiny: a standard process in mature trading nations such as the United States, Australia, and Canada. If we put the right mechanisms in place, we can ensure high food standards, protect the environment and be a champion of free trade.”
I would like an assurance from the Minister today that that is what he intends and to put at rest the minds of farmers such as Mrs Joan Riddell who has written to me from Banbury in Oxford. She wants an assurance that the high standards of our farmers in this country will be met. Will my noble friend say whether that is what we intend? What is the status of the Dimbleby report? Sadly, the Government will not have responded to it before we have passed the Agriculture Bill or the Trade Bill here or in the other place. Presumably, if the Government have asked Henry Dimbleby to report on this matter, they intend to follow his advice.
Baroness Henig (Lab)
I am speaking to Amendments 20, 23, 24 and 25. It is a great pleasure, as ever, to follow the noble Baroness, Lady McIntosh of Pickering, with whom I am in complete agreement. Ministers keep emphasising that this is a continuity Bill, no doubt to reduce its significance in laying a framework for future legislation in relation to trade deals but, as we have already heard, in one area this Bill is not a continuity Bill in the sense that it does not retain the crucial compromises relating to standards and regulations which were agreed on Report of the previous Trade Bill with the noble Baroness, Lady Fairhead.
The Deputy Chairman of Committees (Baroness Finlay of Llandaff) (CB)
My Lords, I have had a request to speak after the Minister from the noble Baroness, Lady McIntosh of Pickering.
Baroness McIntosh of Pickering (Con)
My noble friend Lord Grimstone has just confirmed my worst fears about this interchange of terminology between food safety and food standards. We owe the noble Lord, Lord Purvis, a great debt of gratitude because he clearly stated what Heather Hancock, as chair of the Food Standards Agency, has said on numerous occasions: that our current food safety standards can be changed overnight by the passing of a regulation—that is, a statutory instrument. I think he said that that could happen via the negative procedure, not even the full affirmative procedure.
There we have it. That is the problem. We are not even speaking the same language, which concerns me greatly. On food standards, whatever chemical you want to rinse with—such as chlorine—or hormone you want to inject your beef with, it is not something that the consumers of this country want to consume. I just wish that my noble friend Lord Grimstone would accept that this goes to the heart of our concern, reflected in this group of amendments and the other amendments that we will come on to when we discuss the International Trade Commission and what the future criteria will be.
It is not that the chicken or beef might be unsafe to eat; it is that the product does not meet the high standards of production that our farmers must meet. It will therefore undercut our farmers, who could potentially be put out of business. That is precisely what happened under a previous Conservative Government in the mid-1990s; as a result, 50% of pig producers—who were largely in north and east Yorkshire, I might add—went out of business. That is a position to which I do not want to return. Will my noble friend accept that this terminology is extremely important and that what the noble Lord, Lord Purvis, said in regard to the regulation being amended literally by the sweep of a pen is what goes to the heart of this argument?
Lord Grimstone of Boscobel (Con)
My Lords, of course I apologise if I caused any confusion in my remarks —but I stand by them. It would require a statutory process for these food standards to be altered.
Trade Bill
Baroness McIntosh of Pickering ExcerptsThursday 1st October 2020
(3 years, 7 months ago)
Grand CommitteeRead Full debate Trade Bill 2019-21 View all Trade Bill 2019-21 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 128-III Third marshalled list for Grand Committee - (1 Oct 2020)
Baroness McIntosh of Pickering (Con) [V]
My Lords, I am pleased to support Amendment 14 in the name of the noble Lord, Lord Stevenson of Balmacara, for the reasons set out by the noble Lord, Lord Grantchester. Subject to what my noble friend the Minister might say in his reply, it appears that the powers set out here go far wider than necessary to obtain the objective of the Bill in negotiating trade agreements.
I will focus my remarks on Amendment 69 in my name and thank the noble Baroness, Lady Brown of Cambridge, for her support. It reflects the commitment set out in our manifesto to maintain our high standards. I am mindful of the fact that the World Trade Organization would permit us, not just to maintain our own high standards, but to ensure that we can aim to protect the environment in trade-related measures, subject to certain specified conditions. This is, therefore, a probing amendment to ask my noble friend whether, in the course of international trade negotiations, particularly new ones with the US and other countries with which we hope to negotiate free trade agreements, the Government intend to push the boundaries of standards by going one step further and asking these countries to meet out high standards. The idea is not just to ensure that we are meeting our current high standards but to insist that other countries do as well.
The amendment sets out a framework for achieving that through each House of Parliament approving a Motion. The benchmark would be the minimum standards for environmental protections, food safety and animal welfare for the goods imported through the relevant trade agreements. I hope that my noble friend will be minded to support this. I entirely support what the Government say about continuing to uphold our high standards and I support the general thrust of this group of amendments, as set out in Amendment 12 and Amendment 73 in the name of the noble Baroness, Lady Jones. I hope that, through Amendment 69, climate change and environmental standards will form a close part of international trade agreements. We should not wait for the next COP. We should use the opportunity of each free trade agreement we are negotiating to push the boundaries of environmental protection.
Baroness Boycott (CB) [V]
My Lords, it is a great pleasure to follow the noble Baroness, Lady McIntosh. She always speaks a lot of sense and I thoroughly agree with her. I am delighted to support Amendment 40 in the name of the noble Lords, Lord Oates, Lord Duncan of Springbank and Lord Browne of Ladyton. I also add my support to Amendment 14 in the name of the noble Lord, Lord Grantchester.
As other noble Lords have said, we are at a crossroads for the environment, climate change and biodiversity. Last week, I listened to Christiana Figueres spelling out the real and present danger that we are in. She says that we have just 10 years to cut our emissions by 50% if we are to get to the net zero target by 2050. This is not a dress rehearsal; it is real life. Amendments that bind into law trade standards that protect our planet, curb emissions, encourage biodiversity and, at the same time, promote human health are quite simple on one level. They are also totally necessary. If the Government want us to believe that they are serious about what they say is their desire to meet the Paris targets, why on earth are these amendments not at the heart of the Bill, rather than being peripheral or just according to what someone says?
Trade is one of the most powerful levers that we have in the world. Business is already ahead of the Government. For instance, Coller Capital has been running a risk register for several years now and will not invest in countries or companies that depend on businesses which damage the environment or products which, in some way or another, will cause or be affected by climate change. In her excellent speech, the noble Baroness, Lady Hayman, said that the Aldersgate Group has set ambitious targets. It knows that if we are to be competitive in future, we have to raise our game. The CBI has also recommended that the UK’s export strategy must be augmented by a green trade focus ahead of COP 26. It even suggests that we should introduce accelerated tariff reductions in the FTAs for multilateral agreement partner countries which meet, or, indeed surpass, their Paris Agreement targets. The Government’s own proposal for its net zero review says that business is calling out for a “clear roadmap”.
We could also start to lower tariffs on low-carbon goods and services like New Zealand does. Its Agreement on Climate Change, Trade and Sustainability—which was signed into law by New Zealand, Costa Rica, Fiji, Iceland and Norway—aims to remove tariffs on goods and services that protect the planet, eliminate harmful fossil fuel subsidies and develop clear eco-labelling. It says:
“Globally, countries are subsidising fossil fuel production… to the tune of over $500 billion US dollars a year.”
I ask the Minister whether he knows why and what we are doing about that. I also ask the Government whether we are considering seeking membership of that particular agreement or, indeed, trying to do something similar ourselves.
SIAs are not complicated; there is a growing demand for forest and agricultural commodities that drives greenhouse gas emissions and has negative effects on biodiversity overseas, and our current legislation does not require this to be monitored. Does not the Minister agree that this is an absurd situation? We cannot export our emissions overseas any more than we can export cruelty by allowing the import of animal products that have been reared in conditions that we would not agree with. At the moment, we do not know what damage we are doing to nature and the environment through trade because, as the WWF said in a recent report, we are importing from nations that are high risk. If we are in the dark, how is the consumer going to know what they are buying?
Finally, I think noble Lords would be surprised if I did not turn to the question of public health. What is the UK to do if we do not include amendments such as this? We are about to enter uncharted territory; we are leaving a very big bloc and rapidly trying to secure new trade deals with every other country. Of course there will be changes; there might be some opportunities in terms of good standards; but there are also risks.
Since the dawn of time, we have known that what we eat is the backbone of our health, and here are just three ways—there are many more—in which free trade deals without standards could increase ill health and obesity. For instance, I cite the increase in the availability of products that are high in fats, sugars and salts and backed by huge advertising spends. The other day, I spoke about Tim Tams. I said that they were American; they are in fact an Australian version of our Penguins. Some 91% of households in Britain already buy Penguins, but Tim Tams are going to be cheaper and heavily marketed and, sadly, the Prime Minister himself was spotted waving a packet around when he recently made the case for a free trade deal with Australia. We do not need more chocolate bars.
Secondly, if our farmers and producers are undercut by cheaper imports from overseas because overseas farmers have lower standards, our farming will erode over time. We will import more and more and it will become more processed, because that is what happens when food has to travel over long distances and last for a long time.
Finally, as we all know, the USA is very aggressive in its trade negotiations, demanding that there be no labelling or HFSS advertising restrictions. If we give in there, then, quite honestly, all the progress we have made around public health and, indeed, our environmental efforts will be for naught. The good thing is that if we protect the environment, we also protect the health of all of us. I urge noble Lords to support these amendments.
The Deputy Chairman of Committees (Baroness Barker) (LD)
I have received a request to speak after the Minister from the noble Baroness, Lady McIntosh of Pickering.
Baroness McIntosh of Pickering (Con) [V]
I am grateful to my noble friend Lord Younger for explaining in some detail the negotiating mandate we have agreed with the US. Could he confirm that this extends to animal welfare, as well as environmental protection standards, which is the subject of Amendment 69?
I was a little confused when my noble friend Lady Noakes talked about tomatoes. I had not talked about tomatoes, but there we are. The Minister referred to “unintended consequences”, which I am loath to envisage, and specifically to tea, cocoa and bananas. I understand that they are largely covered by fair trade provisions for marketing in the UK. Is that indeed the case?
Viscount Younger of Leckie (Con)
I thank my noble friend for that. I am not sure that I can be drawn to talk about tomatoes. The best thing I could do, particularly for the points on the US, is to write to her with a full answer on animal welfare, which I could attempt, but also on tea, cocoa, bananas and the fair trade question.
Baroness McIntosh of Pickering (Con) [V]
My Lords, I have some sympathy with this group of amendments, and Amendment 51 in particular. I will make a very brief contribution. In summing up the last debate, my noble friend Lord Younger very helpfully shared with us the negotiating mandate the Government have achieved with the United States in particular. I think it would put our minds at rest if, in summing up this small group of amendments, my noble friend could repeat the contents of that negotiating mandate, particularly as regards any possible negotiating mandate as regards the health service. I know we have had repeated assurances that that is the case, but I think it would be very helpful to know what actually is covered in the negotiating mandate and whether there is any window at all for an aggressive approach to be made by the United States in this regard.
Baroness Finlay of Llandaff (CB) [V]
My Lords, the noble Baroness, Lady Thornton, and my noble friend Lord Patel have very eloquently spoken to these amendments. They are incredibly important, and I strongly support them. We have to protect the NHS and publicly funded healthcare services across the UK from any control from outside the UK. To do otherwise would cost us dearly and would, in the end, prevent us looking after our own, because we would be told what to do from outside.
As the noble Baroness, Lady Thornton, has shown, all aspects of the NHS and social care must be protected from trade agreements at every level. We need to maintain the option of reversing the privatisation which has already occurred, if that is what we decide to do in the future, and we must be free to create collaborative health and social care. Trade agreements must not drive us into some kind of locked-in increased privatisation of the NHS or, indeed, force any such change in the devolved nations. The health and social care sectors must be excluded from the scope of all future trade agreements, otherwise we will find that the NHS is irretrievably undermined.
On maintaining quality, we are world leaders in pharmaceutical research and development, yet access does not always match innovation. The Association of the British Pharmaceutical Industry has pointed out that in the first year of a new medicine being launched, only one-fifth of eligible patients in the UK get access compared to those in France and Germany. Our ability to regulate and maintain the quality and safety of medicines and medical devices must not be undermined by some small sub-paragraph in a trade agreement that slips by almost unnoticed.
In addition, medicines and medical devices must remain affordable in the UK. The Royal Pharmaceutical Society highlighted the huge extra cost to the NHS after Essential Pharma disclosed plans to cease production of Priadel, its cheapest lithium carbonate product, due to restrictions on permitted pricing. The suggested alternatives for bipolar disorder owned by the same company can cost at least 10 times as much.
So this is not only about who runs the NHS today. As the noble Lord, Lord Patel, said, our NHS databases are extremely valuable. They are a resource for our future research and development and, from that, for our future economic development. If we lose them through a trade agreement, we will irretrievably damage our future economic development.
I now turn briefly to Amendment 75, which ensures that the Government can uphold the right of citizens to access medicines under the International Covenant on Economic, Social and Cultural Rights, as part of the right to the highest attainable standard of healthcare. Modern free trade agreements are used increasingly as vehicles to further pharmaceutical industry interests ahead of public health needs. They increasingly include clauses on intellectual property, pharmaceutical regulatory processes and investor-state dispute settlement mechanisms that affect price and decrease access to medicines. To secure affordable access to medicines, the Government must be able to grant compulsory licences, deal with exhausted intellectual property rights, strengthen patentability criteria and determine what constitutes a national emergency, as laid out in subsection (3) of the proposed new clause. The Covid pandemic has shown why we must always be able to make technologies available quickly, widely and at the lowest cost. As the noble Lord, Lord Fox, pointed out, generics are not always cheaper in a complex market that can easily be manipulated.
Our NHS database is extremely valuable, and its value is increasing. It cannot be thrown away. There are times when short-term industry profits are not good for patients and delay access to affordable medicines and health technologies. These amendments aim to secure our healthcare for the future. I agree with the noble Lord, Lord Fox, that informed patient consent requires a patient to know whether data is held, what it is used for and how it can be manipulated, even when it is anonymised. They would rightly be outraged if that data is allowed to put profits in the pockets of other countries, knowing that it will never be ploughed back into the NHS—certainly not at 100%.
Trade Bill
Baroness McIntosh of Pickering ExcerptsTuesday 29th September 2020
(3 years, 7 months ago)
Grand CommitteeRead Full debate Trade Bill 2019-21 View all Trade Bill 2019-21 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 128-II(Rev) Revised second marshalled list for Grand Committee - (29 Sep 2020)
Baroness McIntosh of Pickering (Con) [V]
My Lords, I will address the provisions of Amendment 3 in the name of the noble Lord, Lord Lennie, and use this opportunity to ask the Minister a couple of questions.
One clear advantage of leaving the European Union was that we would leave behind the European procurement programme, which is very similar to this one. That would open up possibilities for our home producers of meat, cheese, dairy products and other products, particularly foodstuffs, to win contracts in our hospitals, schools, prisons and so on. The threshold that I remember was €135,000, but that may of course have changed with the passage of time.
Does the Bill limit the opportunities for small businesses and others to bid for contracts, particularly with public bodies such as schools, hospitals, prisons and others, or will the opportunities be exactly the same as we currently enjoy under the EU? Further, will my noble friend explain what the threshold will be? Will the threshold that we adhered to under the European Union be followed by the GPA, as we are already deemed to be members through our membership of the EU? Who will be party to setting the threshold and the conditions of procurement? I hope my noble friend will put my mind at rest that, as we transition out of the EU, there will be more and greater opportunities for small and medium-sized businesses to bid for these opportunities, not fewer.
Baroness Bennett of Manor Castle (GP) [V]
My Lords, I offer the Green group’s agreement with the legal aims of all noble Lords who have spoken so far. Amendments 1 to 5 seek to keep environmental and public health protections, and in particular workers’ rights protections. I note that there has been very strong support for Amendment 5. I offer support, too, for Amendments 100 to 102, because of the need for democratic control of this House—something that we seem to spend a lot of time talking about these days. I also agree very much with the words of the noble Baroness, Lady Bryan, about how they would keep basic minimum standards here, so it is very hard to see why the Government would disagree with any of them.
However, I can perhaps offer different sentiments to some of the ones expressed in the debate thus far. The noble Lord, Lord Lennie, said that we had seen a century of rising standards. That is broadly true if you start from the beginning and go to the end, but in recent decades there have been real falls in standards, and when we look at the state of the world, whether we consider the natural environment or the climate emergency, we see that there has been a massive degradation.
The noble Lord, Lord Fox, said that there is no point having trade that reduces our standards. I very much agree with that, but we have a real problem in that so much trade has done just that. On Friday, I was at the launch of a report by the Green House Think Tank and the Green European Foundation on trade and investment requirements for zero carbon, which set out how much damage trade has done historically. However, what we are debating are the amendments, and however much we might want to shape towards a trade world that has less trade in it but far better trade that does not build in environmental destruction and exploitation of workers, we do not want to go backwards. These modest amendments, as other noble Lords have said, seek modestly to ensure that we do not go backwards. I therefore commend them to the Committee.
The Deputy Chairman of Committees (Lord Lexden) (Con)
My Lords, I will call the noble Baroness, Lady McIntosh of Pickering, again and hope that she is able to join us this time.
Baroness McIntosh of Pickering (Con) [V]
My Lords, I am grateful. I was muted, so I apologise for any inconvenience.
I support Amendment 7 and would like to explain to my noble friend Lord Lansley that this is more than just semantics. “Necessary” has a specific meaning in law, as has been identified by the Law Society of Scotland. Perhaps I should state for the record that I am a non-practising Scottish advocate. Against the background expressed by the Constitution Committee of the House on numerous occasions, in particular on this Bill but also on others, we are seeing an extensive scope of delegated ministerial powers, so it is incumbent on my noble friend the Minister to explain why they are required. By adding “necessary” as well as “appropriate”, we are flagging up to the Government that, in scrutinising the Bill and subsequent regulations, the objective of this legislation will go only so far as is necessary to implement the agreement in question. I hope that the Minister will see fit to accept this amendment.
I also wonder whether there has been an oversight in Clause 2(2)(b). The Explanatory Notes define international agreements as follows:
“International trade agreements are agreements between two or more countries aimed at reducing the barriers to trade in goods or services between them.”
For the sake of trade agreements relating to services, not least the right of people to trade services such as legal services, I wonder whether that was an oversight and whether it should be amended to read “free trade agreements and services”.
I also support Amendment 9, which I have signed, because, as stated in the Explanatory Notes, a trade agreement would need to be ratified before regulations could be made to implement it. In most other jurisdictions it is certainly the case that Parliament, and the devolved Assemblies and Parliaments, would ratify the agreement. Would my noble friend put my mind at rest that this amendment is not required because that is the legal situation? If it is not, I would see some argument for the need for Amendment 9.
Amendment 10 seeks to apply the provisions of the Bill to trade agreements other than EU rollover trade agreements, allowing it to act as a framework for future trade policy. If the Bill is not to be the framework, it would be helpful if my noble friend took the chance to explain to the Committee what framework the Government intend to use.
Lord Purvis of Tweed (LD)
My Lords, I will primarily address Amendment 10, to which I have put my name, and then Amendment 7. In doing so, I will reflect on a couple of very good points made by the noble Lord, Lord Lansley, and other noble Lords during this short but useful debate. I agree with the noble Lord, Lord Stevenson, that this debate frames the context for many of the later groups.
There is now no disagreement between the Government and the Opposition that trade agreements are now, by definition, deeper and more comprehensive than they were before we joined the European Union. The transformation of trade agreements from the mid-1970s to now has been significant. They touch on wide domestic policy, far beyond simply tariff rates or quotas for goods. Many will now include provisions on the service-sector economy, which trade agreements never touched on in the past. Therefore, seemingly innocuous technicalities in a trade agreement can sometimes have far-reaching consequences for domestic policy. Later on, the Committee will address additional chapters on climate, development and human rights that never used to exist in trade agreements. In the last group, the Minister referred to impacts on modern slavery and supply chains. These are now all within wider, deeper and more comprehensive trade agreements. It is also the case—admitted by the Government—that trade agreements in the UK in the 21st century impact on the devolution settlements that did not even exist before we joined the European Union. Therefore, there are wider consequences, and the Committee will be discussing those later.
Trade: Trans-Pacific Partnership
Baroness McIntosh of Pickering Excerpts(3 years, 7 months ago)
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Baroness McIntosh of Pickering (Con) [V]
In the event that we are successful and negotiate a deal with the CPTPP, or individually with Australia, New Zealand and Canada, what will be the parliamentary oversight and scrutiny of that agreement? Will the Government follow the procedure set out so effectively by Henry Dimbleby in part one of his national food strategy?
Lord Grimstone of Boscobel (Con)
My Lords, I am not familiar with my noble friend’s reference, but I will certainly look that strategy up and consider it in our future efforts in this area.
Oil and Gas Industry
Baroness McIntosh of Pickering Excerpts(3 years, 7 months ago)
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Lord Callanan (Con) [V]
We are currently awaiting proposals from the industry and we are committed to working closely with it; it has a key role to play. We will, of course, be consistent with our international obligations.
Baroness McIntosh of Pickering (Con)
What is the current state of interconnectors to the energy market? What new interconnectors is my noble friend expecting to come on stream and when might that be?
Lord Callanan (Con) [V]
My noble friend is right that interconnectors have a key role to play. There are a number of existing electricity and gas interconnectors, which will play a key role in the transition. They also provide security of supply to both imports and exports of energy. We will be supporting them.
Retail Businesses: Financial Support
Baroness McIntosh of Pickering Excerpts(3 years, 7 months ago)
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Lord Callanan (Con)
We continue to keep all these things under review. I hope that the noble Baroness will appreciate that our response so far has been tremendous. The Bounce Back Loan Scheme has supported nearly 1.2 million loans; the Coronavirus Business Interruption Loan Scheme has supported more than 60,000 loans, worth £13.7 billion. There are, of course, always additional things we could be doing but I hope she will acknowledge that we have done a lot for this sector.
Baroness McIntosh of Pickering (Con)
My Lords, many of the businesses that have not been able to claim have also been impacted by the lack of insurance cover, even though they thought they were covered. Can my noble friend use his good offices to intervene to make sure that, at the very least, they can claim on the insurance for which they have paid premiums? Also, has he looked at the impact on the night-time economy—pubs, clubs, casinos and such—if the curfew imposed in certain areas is extended for any length of time?
Lord Callanan (Con)
Insurance cover is a matter of commercial contracts between providers and the insured; it would not be right for us to interfere in a contract that was lawfully made. My noble friend will understand that I am unable to comment on the possibility of any curfews at the moment.