Economic Activity of Public Bodies (Overseas Matters) Bill

Baroness Laing of Elderslie Excerpts

2nd reading
Monday 3rd July 2023 Commons Chamber

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Felicity Buchan)]

I thank Members from throughout the House for their impassioned and heartfelt contributions. Let me remind the House why we have introduced this legislation: we believe that we should have one foreign policy, and we also believe that BDS campaigns risk undermining community cohesion. We believe that public bodies should not be wasting time and money on pursuing their own foreign policy agendas and should instead focus on providing vital public services and delivering value for money for the taxpayer in their procurement and investment decisions.

Let me also clarify certain misapprehensions that certain Members have about the Bill. First, the Bill applies only to public authorities. It does not apply to private individuals or private companies, except if they are exercising public functions. It does not place restrictions on local councillors, except when they talk expressly on the behalf of their local authority. It does not prevent public authorities from making statements on foreign policy; it prevents them only from making a procurement or investment decision if it is motivated by moral or political disapproval of a foreign state’s conduct.

Many Members have mentioned clause 4. I reassure Members that clause 4 only prevents public authorities from making statements of intent to boycott or divest. It does not prevent public bodies from disagreeing with this legislation. The Bill does not ban ethical, religious or socially conscious funds, so, for instance, climate change funds can continue with the Bill unless there are issues that are country-specific.

A number of Members mentioned clause 3(7). I want to clarify the role of the clause. The Bill applies equally to all countries. Countries can be exempted from the ban by secondary legislation, which is what we are planning to do with Russia and Belarus—[Interruption.]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. This has been a very good-natured and difficult debate. It has been held with disagreement, but courtesy across the House. People have now come into the Chamber who have not been here during the debate and it is most discourteous of them now to make so much noise that we cannot hear the Minister. That is bad behaviour and it is bad for the way in which we do things in here, especially on a day when we have had a very well-constructed and conducted debate.

[Felicity Buchan]

Thank you, Madam Deputy Speaker.

Given the focus of the BDS campaign on Israel, we are simply saying in this clause that, for Israel to be exempted from the legislation, it will require primary legislation. I want to make that very clear. This policy does not affect our foreign policy position. We are not legislating for the UK’s foreign policy on Israel or on any other country in the Bill. The purpose of the Bill is to ensure a consistent approach to foreign policy across our public bodies, led by the UK Government. The Bill will not prevent the UK Government from imposing sanctions, or otherwise changing our foreign policy on any country in future.

I stress that none of the provisions in the Bill changes the UK’s position on Israeli settlements in the west bank and the Golan Heights. We are continuing to urge Israel not to take steps that move us away from our shared goals of peace and security. We support a negotiated settlement leading to a safe and secure Israel living alongside a viable and sovereign Palestinian state, based on 1967 borders with agreed land swaps, Jerusalem as the shared capital of both states and a just, fair and realistic settlement for refugees.

Furthermore, our position on settlements is clear: they are illegal under international law; present an obstacle to peace; and threaten the physical viability of a two-state solution. Our position is reflected in our continued support for UN Security Council resolution 2334, with which the Bill is compliant.