Economic Activity of Public Bodies (Overseas Matters) Bill

Baroness Noakes Excerpts

Wednesday 17th April 2024 Lords Chamber

[Baroness Randerson (LD)]

My Lords, I rise to speak specifically to Amendment 20A, to which I have added my name. I did so because the Bill is yet another intrusion on devolution. It is part of a pattern by which Bill after Bill in this House, Act after Act produced by this Government, raids the powers of devolved Governments and the devolved Assemblies. The Internal Market Act started that, along with the Procurement Act—and there are others. It is a complete pattern by this Government; an intention to reduce devolution in stature and in practice.

As a Wales Office Minister between 2012 and 2015, I recall that it was unthinkable that we, as a UK Government, would ignore the need for an LCM on something like this. We have now got to the point where it is routine for this Government to do that. In addition, in the case of this Bill, the unpredictability of Henry VIII powers will give the opportunity to the Secretary of State to make regulations that could have additional, profound implications for both Wales and Scotland, and throughout the UK.

The Government seem to forget the history of devolution. In 1999, when devolution was established, the Scottish Parliament had a much more comprehensive settlement than that provided for Wales. That proved to be a mistake. It was not just that Wales had fewer powers. The lack of a proper pattern to those powers and a comprehensive picture of them made it very difficult to make devolution work. I am conscious that I have signed an amendment led by the noble Lord, Lord Hain, and that I am criticising the Government of whom he was a part. I am sure he would agree that Labour First Ministers led campaigns to increase the powers of the Welsh Assembly, now the Welsh Senedd, specifically because it just did not work with much more limited powers. We now have something much more workmanlike, effective and constitutionally coherent. This Government have set about dismantling it again.

Added to that, the Bill is unnecessary. In the Senedd, the Minister made it clear that the Welsh Government are of the view that the UK Government have sufficient powers in place within the World Trade Organization Agreement on Government Procurement, enshrined in the Public Contracts Regulations 2015, and that those powers enable fair and equal treatment of overseas bidders where there is a relevant trade agreement. They do not believe that there is any need for additional powers. The UK Government already have the power to set sanctions for trade. All these arguments and discussions that we are having are irrelevant because those powers already exist. The Welsh Government fundamentally believe that the powers in this Bill would have a significant impact on the freedom of public bodies and democratic institutions in Wales. They have the majority support of Members of the Senedd on this. The impact would be on their freedom to decide not to purchase or procure in a way that impacts on their existing legal obligations in relation to human rights, abuse of workers’ rights and the environment. In practice, these powers are not going to fit comfortably with the structure of our legislation as it currently exists.

The fundamental reason why I signed this amendment on behalf of the Liberal Democrat Benches is that this is yet another impact on devolution and the coherence and effectiveness of the way in which the Governments of the United Kingdom should work together in a positive and effective manner.

[Baroness Noakes (Con)]

My Lords, I think that noble Lords who have spoken have misrepresented the devolution settlement. It is clear that foreign policy is a reserved matter. When we come to this Bill, the question of the political or moral disapproval of the conduct of foreign states is a matter of foreign policy that can be determined only by the UK Government.

Noble Lords have been trying to describe devolution as they would like it to exist but the plain fact is that foreign policy is a reserved matter, and that is what is driving this. I do not think that the other matters that the noble Baroness, Lady Randerson, just referred to prevent action by the devolved authorities because of the quite extensive exemptions, which align with the procurement legislation, that are set out in the Schedule. We are talking about political or moral disapproval of state conduct, very specifically, and that is a matter reserved to the UK Government.

We have to remember that the devolved Administrations have form here in relation to Israel. To take the Scottish Government, back in 2014, they issued a Scottish procurement policy note which, in effect, encouraged Scottish bodies to boycott operations in the Occupied Territories. That note, which is quite difficult to find on the internet nowadays, because it seems to have disappeared into a black hole of an archive, was reconfirmed by current Scottish Ministers only a couple of years ago, so it remains the Scottish Government’s policy, which they cannot effectively implement because of the reserved nature of foreign policy.

To take the Welsh Government, in 2020 they informed the Welsh Parliament that they intended to issue advice to all Welsh authorities

“that they may exclude from tendering any company that conducts business with occupied territories either directly or via third parties”.

It was only after intervention from an organisation called UK Lawyers for Israel that the Welsh Government deferred their decision. So we have the Scottish Government and the Welsh Labour Government itching to boycott Israel, and to use that as a reason—

[Lord Hain (Lab)]

The noble Baroness accurately quoted the Welsh Government’s position as referring to occupied territories which are illegally occupied, including those determined by the British Government, not as boycotting Israel.

[Baroness Noakes (Con)]

Whether that is relevant is another matter, because the boycotting of the Occupied Territories would also cause a problem under this Bill if Wales and Scotland were allowed to, in effect, opt out of the Bill.

[Lord Collins of Highbury (Lab)]

I am sorry to interrupt again, but has the noble Baroness had the opportunity to read the FCDO’s advice on the Occupied Territories?

[Baroness Noakes (Con)]

The noble Lord has the advantage of me, because the straight answer to that is no. However, if he points me to it, I shall certainly read it before we consider that again. I believe that trying to boycott the Occupied Territories is the same as trying to boycott Israel. Certainly, the intent is the same, and they are covered by the Foreign Office.

[Lord Collins of Highbury (Lab)]

I am sorry to labour the point. The noble Baroness keeps using the word “boycott”. We are also talking about decisions on procurement and investment, and there is advice from the FCDO about investing in occupied territories.

[Baroness Noakes (Con)]

I was referring largely to procurement because those were the decisions that were made by the two devolved Administrations that I cited. I would be very surprised if the FCDO had advice that boycotting procurement decisions relating to the Occupied Territories was something that it approved of, and therefore it was something that it thought the devolved Administrations could do. However, in any event, that is for the Foreign Office, not the devolved Administrations, to determine. I do not think we can get away from the fact that the current devolution settlements give foreign policy autonomy to the UK Government.

[Lord Warner (CB)]

My Lords, I have listened to this debate with some astonishment. I will not raise the issue of the ECHR; we will come to that when we get to my Amendment 48. However, to keep chanting the view that it is for the national Government to make foreign policy seems to be ducking out of a fundamental democratic issue.