Work of the Department
Elizabeth Truss Excerpts(4 years, 6 months ago)
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The Secretary of State for International Trade (Elizabeth Truss)
I would like to update the House on the work of the Department for International Trade. It has:
Supported UK exports worth over £2 trillion since June 2016. Since the Department was established, UK exports have grown from £537 billion to £654 billion—an increase of 22%.
Sustained the UK’s place as Europe’s top destination for foreign direct investment since 2003. DIT has supported 3,118 individual investments in the UK, helping to create 120,000 new jobs between April 2017 to March 2019 and attracting more projects, new jobs and investment capital than any other European country.
Helped to realise the UK’s potential as the top destination for tech innovation and talent by attracting international investment. This has resulted in the announcement of billions of pounds of investment in the UK from leading technology companies, including £1 billion from software company VMware, £1.9 billion from software company Salesforce, and £150 million from IT service management company Markley Group.
Dismantled barriers and opened up markets to British businesses across the world. This included:
Securing an agreement with China to lift its long-standing ban on exports of beef from the UK, a landmark move for British producers that was estimated by industry experts at the time of the deal to be worth £250 million in the first five years alone;
Lifting a ban on British beef and lamb exports to Japan, allowing exports which at the time were estimated by industry experts to be worth £130 million over five years;
Lifting the ban on British pork exports to Taiwan in August 2018. This has contributed to £2.1 million of UK pork being exported to Taiwan in the first half of 2019 alone.
Securing changes to public procurement rules on early childhood vaccinations in Bulgaria, supporting the UK to win a procurement worth £35 million.
Kicked off detailed technical preparations to ensure that the UK is ready to have our own independent trade policy for the first time in 46 years. This means that now:
We are ready to take our independent seat at the WTO.
We have a trade remedies investigations directorate to ensure UK businesses are safeguarded from unfair trade practices.
We have established working groups and high-level trade dialogues with key trade partners including the United States, Australia, China, the Gulf Co-operation Council, India, Japan and New Zealand. We also continue to use other instruments such as joint trade reviews with countries including China, India and Brazil.
Delivered a series of consultations on new trade agreements with the United States, Australia and New Zealand, as well as potential accession to the comprehensive and progressive agreement for Trans-Pacific Partnership. These attracted over 600,000 responses from businesses and civil society groups across the UK.
Launched a new export strategy further to raise exports to 35% as a proportion of UK GDP. This will build on the increase of exports from 27% of GDP to 30% of GDP since the Department was created. Created the Export Champion network, made up of over 1,000 export champions and advocates, to provide peer-to-peer support to businesses across the UK.
Shielded UK trade from 85% of the additional duties that would have been imposed, by securing 18 continuity trade agreements with countries that accounted for £109 billion of trade in 2018, together with our temporary tariff regime. This will ensure continuity for UK businesses however we leave the EU.1
Attracted more than 94,000 bids for international export opportunities from UK businesses via the GREAT.gov.uk platform. We launched a new export opportunities platform to match UK businesses with international opportunities. Over 285,000 export opportunities have already been published by international businesses and Governments, and GREAT.gov.uk is used by more than 36,000 registered businesses as well as around 140,000 unique visitors each month.
Provided over £7.9 billion-worth of backing for exports through UK Export Finance, supporting over 63,000 jobs since April 2017. In June 2019, UK Export Finance also announced an extensive new finance package to support the UK’s 5.7 million small and medium-sized enterprises to export into emerging markets.
1 See gov.uk for more details: https://www.gov.uk/guidance/uk-trade-agreements-with-non-eu-countries-in-a-no-deal-brexit
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Oral Answers to Questions
Elizabeth Truss Excerpts(4 years, 6 months ago)
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Martyn Day (Linlithgow and East Falkirk) (SNP)
The Secretary of State for International Trade (Elizabeth Truss)
I am a big supporter of the WTO, but it does need reform. When the UK takes up its independent seat at the WTO for the first time in many years, we will strongly be backing the rules-based multilateral trading system and making the case for reform.
Martyn Day
10 December—the date on which the WTO appellate body crisis will come to a head—is looming ever closer. Can the Secretary of State confirm that she will follow the European Union in working to restore an operational appellate body, and will she tell us what conversations she has had with her United States counterpart regarding that urgent need?
Elizabeth Truss
When I was at the WTO in Geneva last week, I met David Walker, who is currently leading work to resolve the appellate body crisis. I have given him my full support in that work. It will require movement on behalf of the EU and the US to find a solution to this crisis, but it is vital that we fix this in order to keep the WTO going.
Margot James (Stourbridge) (Ind)
As well as undermining the dispute settlement system, the US is threatening the principles that support developing economies and imposing tariffs for political ends. How does my right hon. Friend propose that the UK stands up for the rules-based order while trying to negotiate a trade deal with the US?
Elizabeth Truss
My hon. Friend is right that the rules- based order is very important. Last week we got the support of all the Trade Ministers of the Commonwealth, who represent a third of the world’s population, to make the case for an immediate resolution to the WTO appellate body crisis and for a rules-based order. As she says, it is particularly important for the smaller countries that do not have the muscle to make their way in trade negotiations to be able to rely on the WTO to resolve disputes.
Mr Jim Cunningham (Coventry South) (Lab)
How exactly do the Government intend to reform the WTO? Are they looking at tariffs, for example? What exactly are they trying to achieve?
Elizabeth Truss
The WTO needs to reform to reflect trade in the 21st century. It needs to become more transparent. We also need to deal with issues such as state-owned enterprises, forced technology transfer and intellectual property, ensuring that these matters are resolved within the WTO. But we also need an appellate body system that works for all WTO members, which is why I am supporting David Walker from New Zealand, who is conducting the review. I urge the US, the EU and all other parties to work together to resolve this situation.
Mr Mark Prisk (Hertford and Stortford) (Con)
May I urge the Secretary of State to use our voice at the WTO to champion both free trade and, as she has described them, “orderly” markets? Now is not the time for world trade to revert to old-fashioned protectionism.
Elizabeth Truss
My hon. Friend is absolutely right. Since the repeal of the corn laws, the UK has stood up for free trade. We were one of the founding members of the general agreement on tariffs and trade in 1947. There is a huge opportunity for us as we leave the EU to retake our independent seat, to make the case for free trade and to be prepared to stand up for the values that we believe in as a country.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Will the Secretary of State wake up? She sounds almost as if she is in a trance this morning. Instead of talking to significant people in the WTO, will she come to my constituency of Huddersfield to meet exporting companies and top managers there, who believe that she is sticking a dagger into the heart of this country’s exporting companies? We want to know what the future is for exporting businesses in Yorkshire when we leave the EU, if we have to leave the EU.
Elizabeth Truss
Well, I can tell the hon. Gentleman that I am going to be in Yorkshire next Friday, visiting and talking to exporting businesses such as Bettys of Harrogate and Burberry in Leeds. If he wants to extend an invitation to me to visit an exporting business in Huddersfield, he should get on with it.
Sir Desmond Swayne (New Forest West) (Con)
Will my right hon. Friend be a champion for opening markets to the world’s least developed countries?
Elizabeth Truss
Absolutely. One of the great benefits of trade is the prosperity it can bring to some of the poorest countries in the world. Part of our no-deal tariff schedule is about ensuring that those countries are supported, but we will have a huge opportunity to open up more trade once we leave the EU. At the Commonwealth Trade Ministers meeting, we talked about just that.
Stewart Hosie (Dundee East) (SNP)
We all wish to see reform of the WTO and a functioning dispute resolution system, but given that the UK is responsible for 3.4% of global trade compared with the EU being responsible for 35%—a full third—of global trade, is it not the case that the UK’s influence inside the WTO is now massively diminished?
Elizabeth Truss
One of the groups we are working very closely with is our Commonwealth partners. We are developing a Commonwealth caucus at the WTO that represents a third of the world’s population and has a very strong stake in making sure that the WTO works for small states, in particular. Of course we will work with the EU and of course we will work with the US when it is in our mutual interests, but the fact is that the EU has pursued protectionist policies, and that has not necessarily helped some of the least-developed nations. I believe that the UK will have a unique voice, particularly in favour of free trade.
Barry Gardiner (Brent North) (Lab)
We know that the new Secretary of State can do the impossible, because recently she announced that for the past 45 years the UK had been a member of the WTO—which was only founded in 1995. So will she now inform the House of how she has resolved the challenge that 20 or so members of the WTO have lodged against the UK’s proposed new bound tariff and quota schedules, and of what provisional sum she has agreed with the Chancellor to pay any successful claims?
Elizabeth Truss
The UK was a founder member of GATT, which then became the WTO. As the hon. Gentleman knows, by his definition we would only have been in the EU since 1993, because previously we were in the European Community, as I am sure he has said.
Of course we will work through the issues on the goods schedules at the WTO, and we are doing precisely that at Geneva. Those schedules are all ready to go in the event of no deal. Of course, what we want is a deal, and the Prime Minister is currently in Brussels working very hard to get that. If that is what the hon. Gentleman wants, I suggest that he votes for it.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
Brendan O'Hara (Argyll and Bute) (SNP)
The Secretary of State for International Trade (Elizabeth Truss)
We are extremely disappointed that the US has decided to levy tariffs, including on the Scotch whisky industry. I have urged my US counterpart to rethink this, and the Prime Minister has also raised the issue with President Trump.
Brendan O'Hara
In the days following this announcement, the Government were asleep at the wheel. We now have only 12 hours before this tariff is implemented. What action will the Secretary of State take in the next 12 hours to delay this? If she cannot delay it, what will she do to mitigate the impact, particularly on small and medium-sized distillers, which rely so heavily on the US market?
Elizabeth Truss
I have been raising this issue with my US counterpart since July, when I first met Bob Lighthizer. I have also raised it with Commerce Secretary Wilbur Ross. I have made it clear to the Americans that it is not helpful in terms of our relationship with them to see these tariffs placed on such an iconic industry, among other industries in the UK.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
I welcome my right hon. Friend’s efforts. In my recent urgent question I asked the Prime Minister to speak to the President, and he did, but I also asked that consideration be given to an announcement that the UK would not levy tariffs on bourbon when we left the EU. Can she tell us something about her consideration of that?
Elizabeth Truss
When we leave the EU, the UK will be responsible for its own tariff policy. At this point we are part of the EU and those overall discussions on tariffs, so we cannot make that type of statement. The point I have been making to the US is that this will not help our relationship. We are also being threatened with £1.2 billion of car tariffs, which could hit the UK on 14 November, and I have raised that with my US counterpart. If the US wants the British public to have a positive view of our trading relationship with it, it needs to reverse these decisions.
Jim Shannon (Strangford) (DUP)
Scotch whisky producers will have difficulties with the tariffs that will fall on their whiskies, but the Republic of Ireland will have no tariffs whatsoever. Echlinville distillery in my constituency is an Irish whiskey producer. What is being done to help Bushmills and Echlinville distilleries, which are very important to jobs in my constituency and across Northern Ireland?
Elizabeth Truss
My understanding is that the Republic of Ireland has been hit with tariffs on other products. These retaliatory tariffs following the Airbus dispute have been levied on a number of European countries. The point I have been making to the Americans is that the UK has complied with the WTO ruling. We are not in breach of that ruling any more, and we have met all the compliance stats.
Douglas Ross (Moray) (Con)
The Secretary of State is aware that my constituency is severely affected by a number of the tariffs applied by the US. What will she be doing in the next 12 hours to at least delay these tariffs being implemented? If they are, unfortunately, implemented, what can be done to get them removed as quickly as possible?
Elizabeth Truss
I am aware of the fantastic whisky distilleries—in fact, I visited Macallan with my hon. Friend very recently—and they are an incredibly important part of the Scottish economy, but also an iconic brand for the UK. I am hosting a roundtable with affected industries this afternoon, and the Chancellor is currently over in the US speaking to his counterpart as well. We are putting as much pressure as we can on the United States on this issue. We will also be looking at measures to help the industry here in the UK.
Jane Dodds (Brecon and Radnorshire) (LD)
The Secretary of State for International Trade (Elizabeth Truss)
The best way to avoid potential tariff barriers is to support good free trade agreements with both the EU and the US. I hope the hon. Lady will support any deal the Government bring forward to make sure we can leave the EU with a deal.
Jane Dodds
I have spoken before about the impact of export tariffs on Welsh lamb and beef exports, which would be seriously damaging for the Welsh farmers I represent in Brecon and Radnorshire. We have heard the Government recently talk up Japan as a tariff-free export destination, but only £4,000 of lamb goes to that particular country. Can the Secretary of State provide a guarantee—yes or no—that the livelihood of Welsh farmers, such as those in Brecon and Radnorshire, will not suffer as a result of the imposition of these export tariffs?
Elizabeth Truss
I know that very high-quality lamb is produced in the hon. Lady’s constituency. In fact, I have visited the Rhayader sheep market and seen it for myself. I can assure her that the Department for Environment, Food and Rural Affairs is working with the Treasury to make sure there is support for lamb farmers in the eventuality of potential issues. However, we also need to open up more markets for British lamb. I have particularly got my eye on the US market—it is the second largest importer of lamb by value in the world—and we need to make sure that Welsh lamb farmers have more places to which they can export.
Martyn Day (Linlithgow and East Falkirk) (SNP)
The Secretary of State for International Trade (Elizabeth Truss)
I am delighted to have been appointed as Trade Secretary at this vital time in our nation’s history. For the first time in 46 years, we will have an independent trade policy and be able to set our rules and regulations, which means that we will be able to strike deals with likeminded countries such as the United States, Japan, Australia and New Zealand. We will also be able to take up our independent seat at the World Trade Organisation, leading the fight for free trade and participating in the battle against protectionism.
Martyn Day
Ninety per cent. of the world’s illegal deforestation takes place in the Amazon rainforest—something that the Paris agreement explicitly sets out to tackle and reduce. Does the Secretary of State agree that if we are serious about tackling climate change, the ratification and implementation of the Paris agreement must be a precondition for any country that wishes to make a trade deal with the United Kingdom?
Elizabeth Truss
I am a great believer that free trade and free enterprise help us to achieve our environmental goals through better technology, more innovation and more ingenuity. The Minister of State, my right hon. Friend the Member for Bournemouth West (Conor Burns), recently visited Brazil and discussed those precise issues with its Trade Minister.
Kevin Hollinrake (Thirsk and Malton) (Con)
Sylatech is a precision engineering business in Kirkbymoorside in my constituency, but it is suffering a significant business impact due to control delays on its export licence applications. Will my hon. Friend update the House with a timescale to resolve that problem?
Barry Gardiner (Brent North) (Lab)
The House recently passed a statutory instrument to extend EU protection against extraterritorial lawsuits under the US Helms-Burton Act. The Secretary of State will know that investors are already speaking with law firms to launch dispute proceedings against the UK under long dormant bilateral treaties. What estimates has she made of the quantum of such suits, and what protections will she introduce to safeguard the public purse and public policy?
Elizabeth Truss
I thank the hon. Gentleman for his question and I will look into that issue.
Sir David Amess (Southend West) (Con)
Stephen Morgan (Portsmouth South) (Lab)
Elizabeth Truss
I can assure the hon. Gentleman that an incredible amount of work has been going on across Government to make sure that we are fully prepared for all scenarios. The Chancellor of the Duchy of Lancaster has been holding daily meetings—there have been 60 so far—and we are performing well, particularly on making sure that actions at the borders are in place.
Harriett Baldwin (West Worcestershire) (Con)
Our biggest export sector is services, which are invisible, and particularly financial services. Our biggest export market is the US. What discussions has the Secretary of State had about opening up financial services exports to the US and removing some non-tariff barriers?
Elizabeth Truss
My hon. Friend is absolutely right—this is a fantastic opportunity for the UK. When I was out in the US, I met Bob Lighthizer, and I also met the Treasury Secretary to discuss those potential opportunities with him. The UK is not just going to roll over in a trade deal with the US. We will make sure that our industries are promoted. We want barriers removed in the US to our successful service industries.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
Elizabeth Truss
I hope that the hon. Lady will be supporting the Prime Minister in his negotiations in Brussels, where he has already secured significant advances to where we were, in particular by ensuring that Britain is able to have its own independent trade policy once we leave the EU, and to control our own rules and regulations.
Stephen Crabb (Preseli Pembrokeshire) (Con)
To avoid freeports just displacing activity, does the Minister agree that freeport activity should be based on the existing unique and distinctive capabilities of a port, such as Milford Haven, the UK’s leading energy port, which has an unrivalled skills base and infrastructure?
Jo Stevens (Cardiff Central) (Lab)
Elizabeth Truss
To be frank, a free trade deal with Colombia is not one of our urgent priorities.
Richard Graham (Gloucester) (Con)
As a result of devastating African swine fever, 130 million pigs have recently been slaughtered in China, which is home to half the world’s pigs. Is this not a great opportunity for my right hon. Friend, who did so much to open this market to British pig farmers, to promote the merits of British products from our pigs, including, of course, the unrivalled Gloucester Old Spot?
Elizabeth Truss
My hon. Friend is right. I was very proud to open the market for pigs trotters into China when I was Secretary of State for Environment, Food and Rural Affairs. Market access is very important. We have seen a massive increase in pork exports to China over the past five years. He is right that our high welfare standards and quality produce are valued across the world. There are lots of new opportunities, including for the Gloucester Old Spot.
Rachael Maskell (York Central) (Lab/Co-op)
Leaked documents from Operation Kingfisher showed that York would be the worst-hit place in the country in the event of no deal. What discussions is the Secretary of State having with my city to ensure that we will be able to trade after 31 October?
Elizabeth Truss
No doubt the hon. Lady will be supporting a deal to ensure that the good people of York have the trading opportunities that they deserve.
Martin Vickers (Cleethorpes) (Con)
Returning to the issue of freeports, the Secretary of State visited Immingham in my constituency last year and saw for herself the great opportunities that exist to improve the local economy. Will she continue working with me to ensure that the Humber ports do indeed receive freeport status?
Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)
Does the Secretary of State accept the Food and Drink Federation’s analysis that, with a complex and confusing no-deal tariff schedule, investment made right across the supply chain in preparing for a no-deal Brexit means that food prices will likely increase?
Elizabeth Truss
The best way of avoiding no deal is for the—[Interruption.] The hon. Gentleman shakes his head, but this is common sense: the best way to avoid no deal is to vote for a deal.
Greg Hands (Chelsea and Fulham) (Con)
Will the Secretary of State give us an update on where we are on joining the comprehensive and progressive agreement for trans-Pacific partnership?
Elizabeth Truss
I discussed that with Trade Ministers when I visited New Zealand, Japan and Australia. They are all very interested in the UK’s joining, and I want to progress that alongside the bilateral discussions that we are having with the countries. It will give us access to 11 fast-growing markets in Asia, so it is a massively exciting opportunity.
Christian Matheson (City of Chester) (Lab)
Will Ministers assure us that, in their desperation to sign any trade deal to justify their Brexit policy, they will not give a green light, or a nod and a wink, to President Bolsonaro to continue the destruction of the Amazon rain forest?
Christine Jardine (Edinburgh West) (LD)
The Minister for Women and Equalities (Elizabeth Truss)
The issue of the response to the consultation on the Act is very important. It needs time for consideration, and I will want to study it closely.
Christine Jardine
Last night, at the PinkNews awards, Baroness Williams of Trafford, the House of Lords Minister for Equalities, said, “bear with us” on gender recognition reforms. Quite frankly, Minister, that is not good enough for people who are already going through one of the most difficult experiences they will ever face—more difficult than we can possibly imagine. They face abuse, discrimination and even, sadly, violence, just because of who they are. So I ask the Minister again: when will we see the results of the consultation, and can she assure me, and the people who are waiting on those results, that the most right-wing Government in decades will follow through on the GRA?
Elizabeth Truss
I completely condemn bullying or violence towards trans people, but I do not think that that could be confused with the complex piece of work that is the reform to the Gender Recognition Act. In particular, I will not be rushed into it. I am very keen that we protect single-sex spaces and vulnerable women, and that we do not rush into reform before we have had full, proper discussion.
Dawn Butler (Brent Central) (Lab)
I welcome the Minister to her new position and look forward to working with her on all these issues. I am losing count, but I think she is the fifth Minister whom I have shadowed since I have occupied this position. However, we do not start from the beginning every time we change Ministers.
Reform of the Gender Recognition Act was promised in 2016. The Minister does not need to look at it carefully; the Minister just needs to expose what came out of the consultation and amend the Act as promised. The Minister needs to stop kicking the can down the road. There has been a 37% increase in hate crime against transgender people, and the Minister is exacerbating the pain and the hurt in the LGBT+ community. Please, Minister, just reform the Gender Recognition Act already.
Elizabeth Truss
As I have said, I completely condemn violence against trans people, and we and the Home Office are doing a lot of work to combat it, but I think it is completely wrong to conflate that with a complex piece of legislation that we need to get right. There are serious concerns about single-sex spaces and ensuring that vulnerable women are protected, and we should get the legislation right rather than rushing into things.
I am afraid that the hon. Lady is trying to make this into a political football. What I am interested in is making the right decisions for the people of Britain so that we have proper protection for transgender people and also ensure that we protect our single-sex spaces.
Martyn Day (Linlithgow and East Falkirk) (SNP)
Carol Monaghan (Glasgow North West) (SNP)
The Minister for Women and Equalities (Elizabeth Truss)
Women represent half of the population, and I believe that we are missing out on a huge amount of talent because we do not have enough women in senior positions. I commend the work of Helena Morrissey who has achieved fantastic results with the 30% Club.
Carol Monaghan
I do a lot of work with science and technology companies and there is still a struggle in many of them to get women into senior positions or get women in at all. We have been using the carrot for decades now to try to get more women into the boardroom; when are we going to start using the stick?
Elizabeth Truss
The hon. Lady talks about science and technology, and one of the big issues is the gap that we have in school education, with fewer girls going on to study maths and science later in their school careers and girls losing confidence earlier on in their school careers. The way for us to tackle that it is to improve our education system, which is why we introduced things such as the English baccalaureate and tougher maths GCSEs, and why we are working more on maths education. I am passionate about this, and I am very keen to drive it forward as Minister for Women and Equalities.
Eddie Hughes (Walsall North) (Con)
The construction industry is notoriously male-dominated, so will the Minister join me in congratulating Caroline Gumble, who has just become chief exec of the Chartered Institute of Building, of which I am a very proud member?
Elizabeth Truss
I completely agree: as well as Bob the builder, we need Brenda the builder. I congratulate my hon. Friend’s constituent on her fantastic achievement. In every walk of life, it should not matter whether someone is a woman or a man; it should matter how good they are and how much effort they put into the job. That is what we champion on this side of the House. We believe that it is about someone’s qualities as an individual, not what group they belong to.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Elizabeth Truss
I have to say that my focus in this job is not on bank holidays; it is on getting more women into work and getting them up the career ladder once they are in jobs. However, if the hon. Gentleman is offering to take on some work while women have a day off, I am sure that we would be very interested in that.
Alison Thewliss (Glasgow Central) (SNP)
The Bank of England Monetary Policy Committee has nine members, eight of whom are women. Will the Minister encourage the Bank to employ more women in senior roles, and the Chancellor to appoint more women when he gets the chance?
Elizabeth Truss
The hon. Lady is right. I describe finance as the final frontier for feminism. We have never had a female Chancellor, and we have never had a female Governor of the Bank of England. The Governor’s job is coming up very shortly, so I am sure that the Chancellor will hear what the hon. Lady has to say.
Mrs Maria Miller (Basingstoke) (Con)
Mohammad Yasin (Bedford) (Lab)
The Minister for Women and Equalities (Elizabeth Truss)
My vision as Minister for Women and Equalities is to ensure that everyone has the freedom to be whoever they want to be and to shape their own future, regardless of their gender, sexuality, ethnicity or disability. I was proud to open the Asia chapter of the Global Equality Caucus during my recent visit to Japan, and I look forward to building on the excellent work of this Government: from ensuring 12 years of quality education for every girl internationally to removing the barriers that stop women getting on at work and bringing LGBT leaders from across the world together in May next year. Together we can make Britain the best place in the world to be a woman and to be LGBT.
Mohammad Yasin
The Child Maintenance Service is failing receiving claimants, most of whom are women. Will the Minister introduce tighter monitoring of direct pay compliance, stop collect and pay charges for receiving parents, and finally introduce a service that ensures effective enforcement of late payments?
Ann Clwyd (Cynon Valley) (Lab)
Elizabeth Truss
I do not believe that we need the EU in order to have strong rights for women in Britain; I believe that we British women are strong enough to stand up for ourselves.
Harriett Baldwin (West Worcestershire) (Con)
We have a gender gap not just in the workplace, but among entrepreneurs; one in 10 men in work are entrepreneurs, whereas only one in 20 women are. What does the Minister think would be the best way to address that?
Elizabeth Truss
My hon. Friend is right about this, particularly in respect of funding. Female-led businesses are getting less funding from venture capital than male-led businesses. We want to address these barriers and open up entrepreneurship to women across the country. We are lagging behind places such as Canada and Australia, and we need to do better.
Christine Jardine (Edinburgh West) (LD)
Patricia Gibson (North Ayrshire and Arran) (SNP)
Elizabeth Truss
It is perfectly proper that we make sure that the right people are voting and that they bring ID with them to the polling to station. We have had issues with electoral fraud in this country.
Kate Hollern (Blackburn) (Lab)
No-deal Brexit: Temporary Tariff Regime
Elizabeth Truss Excerpts(4 years, 6 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for International Trade (Elizabeth Truss)
Today I am informing the House about updates to the temporary tariff regime announced in March. This regime would come into effect if the UK leaves the EU without a deal on 31 October 2019.
The temporary tariff would apply equally to all countries where the UK does not have a trade agreement or other preferential agreement in place, this would include the EU.
The policy announced in March, and updated today, is designed with consumers and producers in mind. The majority of imports will be tariff free, with tariffs only applying on a small percentage of UK imports. The Government have listened to the concerns and needs of businesses and consumers since the temporary tariff regime was first announced and has made three specific amendments to the tariff rates published in March.
Lower tariffs on HGVs entering the UK market, striking a better balance between the needs of British producers and the SMEs that make up the UK haulage industry, ensuring that crucial fleet replacement programmes that help to lower carbon emissions can continue.
Adjusted tariffs on bioethanol to retain support for UK producers, as the supply of this fuel is important to critical national infrastructure.
Applied tariffs to additional clothing products to ensure the preferential access to the UK market currently available to developing countries, compared to other countries, is maintained.
These three specific amendments will enable UK supply chains to continue to operate smoothly, keep prices down for consumers and ensure that we are fully prepared to leave the EU on 31 October whatever the circumstances.
In considering adjustments to the temporary tariff, the Government have continued to give regard to the five principles set out in the Taxation (Cross-border Trade) Act 2018:
the interests of consumers in the UK;
the interests of producers in the UK;
the desire to maintain and promote external trade of the UK;
the desire to maintain and promote productivity in the UK;
the extent to which goods are subject to competition.
Throughout the temporary period, the Government will also consider exceptional changes where clear evidence is provided by stakeholders against the criteria set out in the Taxation (Crossborder Trade) Act 2018 and would provide a mechanism to hear business and consumer feedback.
The Government aim, where possible, to minimise any new costs to business and mitigate any price impacts on consumers. For that reason, tariffs will only apply to 12% of total UK imports but there will need to be tariffs on some imports to make sure certain industries get the support they need.
This remains a temporary policy that would apply for a period of up to 12 months in the event that the UK leaves the EU without a deal on 31 October.
Information on specific tariff rates that would apply under the temporary tariff have been made available through the Government website.
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Arms Export Licences (Saudi Arabia)
Elizabeth Truss Excerpts(4 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Chris Law (Dundee West) (SNP)
(Urgent Question): To ask the Secretary of State for International Trade if she will make an urgent statement on the recent unlawful award of arms export licences to Saudi Arabia, in contravention of a Court of Appeal ruling that determined that the UK must cease arms exports to the country.
The Secretary of State for International Trade (Elizabeth Truss)
Today, I will be tabling a written ministerial statement updating Parliament on the latest situation in relation to the undertaking given to the Court of Appeal on 20 June about export licences for Saudi Arabia and its coalition partners. As the Government informed the Court on 16 September and followed up with an affidavit today, my Department identified errors in the export licensing procedure in relation to the Saudi coalition’s activities in the conflict in Yemen.
As I stated publicly on 16 September, I unreservedly apologise for the export licences that my Department issued in error. I have also given my unreserved apology to the Court. A procedure to ensure that export licences for Saudi Arabia and its coalition partners are not granted for goods for possible use in the conflict in Yemen was put in place on 20 June 2019. That followed the Court order and the then Secretary of State’s statement to Parliament.
The Export Control Joint Unit subsequently issued export licences for Saudi Arabia and its coalition partners and, in line with the agreed procedure, these were signed off at official, rather than ministerial, level. It subsequently came to light that two licences were in breach of the Court undertaking, and one licence was granted contrary to the statement in Parliament, as these licences were for goods that could possibly be used in the conflict in Yemen.
Without seeking to prejudice the independent investigation, it appears that information pertaining to the conflict had not been fully shared across government. I took immediate action as soon as the issue was brought to my attention on 12 September: taking immediate steps to inform the Court and Parliament; putting in place immediate interim procedures to make sure the errors could not happen again; and instigating a complete and full internal review of all licences granted for Saudi Arabia and its coalition partners since 20 June. The Department’s permanent secretary, on my behalf, commissioned a full internal investigation.
The Court and Parliament were informed on 16 September with the appropriate detail, and the interim procedures mean that senior officials in the Department for International Trade, the Foreign and Commonwealth Office and the Ministry of Defence guarantee that the latest information available to the Government is used in their advice. All recommendations to grant licences for the export of items for Saudi Arabia and its coalition partners will now be referred to Ministers, rather than being signed off at official level. The full review of licences for Saudi Arabia and its coalition partners is currently being undertaken, and this internal review is still ongoing.
As a result of the internal review so far, we have identified one further licence that has been granted in breach of the undertaking given to the Court of Appeal. This licence has not been used and has now been revoked.
My officials are also carrying out an urgent review of the composition of the coalition. This has identified a further licence that is in breach of the parliamentary statement. We reassessed the licence in the light of the latest information and subsequently revoked it in so far as it applies to Jordan.
My officials continue to review all the information relating to licences granted for Saudi Arabia and its coalition partners since 20 June 2019, and we will be open and transparent with the Court and Parliament as to any new issues that emerge. In addition, the DIT permanent secretary, on my behalf, has commissioned a full independent investigation, which will establish the precise circumstances in which the licences were granted and whether any other licences have been granted in breach of the undertaking to the Court or contrary to the parliamentary statement, and it will confirm that procedures are in place so that no further breaches of the undertaking can occur.
This investigation will be led by an independent senior official: the director general of policy group for the Department of Work and Pensions. It is possible that more cases will come to light. As I have done so far, I will keep the Court and Parliament informed of any new information that emerges.
Chris Law
I thank the Secretary of State for her response. She made the shocking revelation that two further licences break the law and that more may yet be discovered, but I welcome her unreserved apologies for the errors, as they have been called, made so far.
The situation in Yemen is currently the biggest humanitarian crisis in the world, with half the country’s population at risk of famine and 22 million Yemenis in need of aid and protection. Although the UK has given £770 million in aid to Yemen over the past few years, the UK has earned eight times as much from arms sales to Saudi Arabia and its coalition partners. That is the result not of a so-called inadvertent error but of a shamefully incoherent foreign policy that has put profit ahead of upholding international humanitarian law.
The UK has licensed £4.6 billion-worth of arms to the Saudi military, which the United Nations has found to be directly accountable for an estimated 10,852 civilian casualties as of November last year. And now, despite the Court of Appeal ruling that the UK’s arms sales to Saudi Arabia were unlawful, the Secretary of State has approved arms export licences to the Royal Saudi Land Forces.
The Secretary of State has said:
“Given the fact that RSLF troops were deployed in Yemen at the time the licence was issued, this licence should not have been granted.”
How could there ever have been any doubt that the RSLF was in Yemen, given that it makes up more than half the Saudi armed forces, which have invaded Yemen by land? The situation is crystal clear.
The process that led to the licences being granted demonstrates the same carelessness and utter lack of regard for human life that has defined the UK’s arms sales to Saudi over the years. Rather than wasting time and money appealing the Court decision or lobbying other foreign Governments to resume weapons sales to Saudi Arabia, will the Secretary of State rescind these unlawfully granted arms export licences? Furthermore, does she take full responsibility for her Department’s unlawful award of arms export licences, in contravention of the Court of Appeal? If so, will she do the right thing and resign?
Elizabeth Truss
Clearly, the conflict in Yemen is a cause of great concern and we fully support the UN-led process to reach peaceful resolution. As the hon. Gentleman said, we have contributed £770 million of UK aid. What we are talking about today, however, are specific procedural issues relating to export licences.
We have a procedure that follows the consolidated criteria and is very clear about humanitarian law. In its judgment on 20 June, the Court of Appeal was very clear that we have in place a rigorous and robust process. The issue is how that process has been followed. That is why, when I was first informed of this issue, on 12 September, as Secretary of State I took immediate action to have an internal investigation into what had happened. I asked the permanent secretary to get a leader from another Department to fully investigate the process and to make sure that no such licences could be issued in error by putting in place a robust process. At the same time, I took immediate steps to inform the Court and Parliament. I have been completely open and transparent about what has happened.
This is a procedural issue. I do not want to prejudge the investigation, but the issue appears to be the sharing of information across government. That is why senior officials will now be asked to sign off on the advice that is put forward, and Ministers will be asked to sign off these export licences.
Several hon. Members rose—
Mr Philip Dunne (Ludlow) (Con)
I think everyone across the House shares my right hon. Friend’s views on the significance and the horror of the humanitarian situation in Yemen. I believe that what she has expressed to the House today is quite proper remorse and steps to ensure that the Government follow the well-established procedures for arms exports, but will she reflect on the fact that only yesterday the House was debating the impact on the kingdom of Saudi Arabia of the attack on oil facilities in that country by its neighbours across the Gulf, the Iranians? This is a very sensitive area. One of our key allies in the Gulf is under considerable pressure from the Iranian authorities, and we as a Government need to act responsibly to ensure that we stand by our allies when they come under attack.
Elizabeth Truss
My right hon. Friend makes an important point, but the topic of today’s question is the following of procedures in the consolidated criteria. The consolidated criteria are right; they are a good way to make sure that we issue export licences to the right parties. The problem here is specifically whether that process was followed correctly within government and whether information was shared between Departments. That is the issue we have identified. I have taken immediate steps to ensure that information is properly shared when those decisions are taken and to investigate what went wrong, but of course I take full responsibility as Secretary of State, and I have made an unreserved apology both to the Court and to Parliament.
Several hon. Members rose—
Barry Gardiner (Brent North) (Lab)
Indeed, Mr Speaker.
The Government did know; they just did not tell the Department for International Trade. Which Department knew? Which Minister had the responsibility to tell the Secretary of State, and why are they not sitting alongside the right hon. Lady, making an apology to Parliament?
The evidence presented during the court proceedings earlier this year and the recent revelation prove that the Government have failed to abide by their own undertaking. On two occasions since the Court of Appeal’s verdict, licences have been awarded in contravention of the determination precisely because a careful assessment was not carried out. Will the Secretary of State explain why the reports in 2015—the widespread reports that Saudi troops had been deployed on the ground and were leading the co-ordinated efforts of coalition forces in Yemeni territory—were not properly investigated and assessed by her Department? I note her letter to the Committees on Arms Export Controls; the inference is that no such investigation had ever been carried out.
The previous Secretary of State, the right hon. Member for North Somerset (Dr Fox), advised that potential breaches were monitored in a number of ways, one of which was through on-the-ground military and diplomatic staff and our positive close relations with Saudi Arabian officials. The Saudi Arabian officials must have known that their country’s troops were on the ground, so why was that not communicated in the close positive relations that our staff had with them?
I welcome the fact that the Secretary of State has launched a full inquiry, but it will not have escaped her notice that the arms export fair took place in London just a short while ago. Some £6.3 billion of arms have been exported to the coalition by this Government— £5.3 billion-worth to Saudi Arabia. What further deals were done there? The Secretary of State has said that it is possible that more illegal deals may have taken place, but does she actually think that instead of it being possible, it is highly probable?
Elizabeth Truss
The hon. Gentleman asked me first about the process that took place within government. The answer is that the joint unit is staffed by officials from the Ministry of Defence, the Foreign Office and the Department for International Trade, and clearly there was a failing when it came to sharing information across government. A director general of the Department for Work and Pensions is conducting an investigation to look precisely at the question of which Department issued, or did not issue, the information and how it was shared. The results of that investigation will be put forward in due course. This is a complex area. The Export Control Joint Unit approves approximately 16,000 licences a year, so it is important that we get this right and do not rush to an answer before we are ready.
Regarding the consolidated criteria on licensing, it is also important that we adhere to the terms of our undertaking to the Court and our statement to Parliament, and I was talking earlier specifically about breaches of our undertaking to the Court and our statement to Parliament.
Sir George Hollingbery (Meon Valley) (Con)
This is clearly a matter of serious moment. I welcome the tone that the Secretary of State has taken today and, indeed, her admission that things have not gone right. Can she assure me of two things: first, that there is a full and complete investigation going on, which I think she has already mentioned; and secondly, that the aim of the investigation will not just be to find out how this situation happened, but to ensure that it cannot happen again?
Elizabeth Truss
I can assure my hon. Friend that I have put in place an interim procedure to ensure that there is sign-off from senior officials in all three relevant Departments and ministerial sign-off on any proposed export licences to the relevant parties. I also assure him that we are conducting an investigation, which will be led by a director general from the Department for Work and Pensions, into exactly what went wrong in this case to ensure that it cannot happen again.
Stewart Hosie (Dundee East) (SNP)
I recognise and welcome the Secretary of State’s apology and acceptance of responsibility. It is true that the breaches in export licensing that are the subject of this urgent question may well be described, as she said, as “procedural”, but this case highlights some profound problems with her Department. We are talking about spare parts for armoured vehicles and for military radio used by Saudi land forces, which form half the Saudi military and were operating on the ground in Yemen when the licences were issued, forming part of the invasion by land into Yemen by a country—Saudi Arabia—found to be in breach of international humanitarian law, which is precisely what is supposed to be checked before licences are granted.
Can the Secretary of State tell us whether the provision of incomplete information shared across the Government was simple incompetence? Were her Department and others not aware of their responsibilities in this regard? She will have to be convincing, because I am not convinced that the actions being taken so far remove the perception that this Government and this Department are prepared to ignore the law—in this case, from the Court of Appeal—when it suits them to do so.
Elizabeth Truss
The Court of Appeal was very clear in its judgment that there is a rigorous and robust process in place across the Government. The question is about the specific sharing of information between Departments. I have absolute confidence that the unit, when it receives information, implements that in doing its work. The issue is the sharing of information. That is why we have conducted an internal review of the licences already issued as well as asking another Department to look across the board at where information was shared. This is not an issue about the process, which was deemed by the Court of Appeal to be rigorous and robust; it is about how that process has been followed. A lot of people are saying, “Why can’t we do this quicker?” It is very important that we get this right. In the interim period, I have put in place a procedure that makes sure that there is senior sign-off from all three Departments—the Foreign Office, the Ministry of Defence and the DIT—as well as ministerial sign-off. There was not ministerial sign-off on these licences. This was done under the previous procedure. There will now be ministerial sign-off on all the relevant licences.
Several hon. Members rose—
Luke Graham (Ochil and South Perthshire) (Con)
I welcome my right hon. Friend’s statement. It is important when we get things wrong that we own up to it and take responsibility. Can she please assure this House that no further licences will be granted to Saudi Arabia or its coalition partners for weapons that could be used in Yemen, especially when many are Scottish-made?
Elizabeth Truss
I agree that it is important that we are clear when errors have been made, and I am clear that that is the case. I am confident that we now have a robust interim procedure while this investigation is conducted and make sure that we have a proper procedure in the long term to ensure that the process is followed.
Several hon. Members rose—
Ann Clwyd (Cynon Valley) (Lab)
Thank you, Mr Speaker.
Does the new Minister realise that it took almost a year, at the start of this Parliament, to set up the Committees on Arms Export Controls because the Government dragged their feet—and, I would say, dragged their feet deliberately? I am sick of hearing about “rigorous and robust”—this is neither rigorous nor robust. Representatives of the various parties in the Saudi-led coalition were recently at the arms fair. Can she give us an assurance that no new undertakings or contracts were agreed to service or export new goods to the countries involved in the coalition in Yemen?
Elizabeth Truss
The role of the joint unit is to scrutinise licences. I can assure the right hon. Lady that we have put in place an interim process to make sure that all available Government information is reflected in advice to Ministers on the issuance of these licences to Saudi Arabia and its coalition partners and that that will specifically have ministerial sign-off.
Neil Parish (Tiverton and Honiton) (Con)
I very much welcome the Secretary of State’s statement. Britain has played a leading role in both diplomatic and humanitarian aid in Yemen. What more political pressure can we bring to bring about a political solution in Yemen?
Elizabeth Truss
My hon. Friend is right that we play a significant role in terms of aid to Yemen—we have provided £770 million-worth—and it is important that we work through the UN, to which the Foreign Secretary is committed, to seek as quickly as possible an end to conflict in Yemen.
Chuka Umunna (Streatham) (LD)
When Court orders are contravened a couple of times, it can perhaps be dismissed as a failure to follow procedures, but when it happens on multiple occasions, it suggests that there is a systemic problem; the system is not working. Will the Secretary of State look at implementing a policy of the presumption of denial in respect of all export licences to countries listed as human rights priorities on the annual Foreign Office human rights report, so that those exports to those countries would be banned in the first instance?
Elizabeth Truss
To be clear for the hon. Gentleman, it was on 12 September that the errors were identified within the Department and notified to me. We then notified the Court and immediately conducted an internal review of all the licences already issued. All these issues relate to decisions that were made before 12 September, and that is why we have put in place the new interim procedure.
Stephen Kerr (Stirling) (Con)
It is of vital reputational importance that we maintain the most rigorous and robust export licensing regime in the world. To that end, what is the basis upon which these licences are granted, as in this instance?
Elizabeth Truss
The basis on which these licences are granted is in line with the consolidated criteria. Specifically for Saudi Arabia and the coalition partners, we are very much cognisant of the Court of Appeal’s ruling and the undertaking of the former Secretary of State to Parliament.
Ellie Reeves (Lewisham West and Penge) (Lab)
Despite repeated assurances from the Government over the years that they had acted within the law concerning export licences for arms to Saudi Arabia, we found out last week that the Government had acted unlawfully and today that there might be further breaches. When will this Government recognise the plight facing the Yemeni people and immediately suspend all existing and future arms exports to Saudi Arabia?
Elizabeth Truss
I acknowledged in my statement that there have been errors in the way that this procedure has been followed, which is why we have put in place interim measures to deal with this and are conducting an internal review, as well as an investigation by another Department.
Keith Vaz (Leicester East) (Lab)
The Secretary of State’s apology is welcome, but the narrative is shameful. In August this year, 236 Yemenis were killed, and the bombing raids reached 20,000. Last week, a bomb fell on a mosque, and a bomb fell on a family eating their dinner. What do they put on the death certificate? Do they put “death caused by administrative error”?
Elizabeth Truss
As I said earlier, I unreservedly apologise for the errors that were made. That is why, when this was brought to my attention as Secretary of State on 12 September, I took immediate action to stop this happening.
Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)
The Court of Appeal identified a failure by the Government to meet their legal obligation to make a systematic assessment of past possible violations of international law. The Secretary of State today has acknowledged a failure to share information across government. Surely these failures demonstrate that we no longer have a robust system of arms control in this country.
Elizabeth Truss
I do not agree with the hon. Gentleman. We have found specific errors, for which I have apologised and taken immediate action to address, but overall, as the Court of Appeal itself points out, we have a robust and rigorous process.
Graham P. Jones (Hyndburn) (Lab)
May I make a declaration? I have just returned from a two-day visit to Abqaiq in Saudi Arabia, facilitated by the kingdom, and in the coming days I will include that in the Register of Members’ Financial Interests.
As Chair of the Committees on Arms Export Controls, I would like to thank the Secretary of State for writing to me immediately on this issue and making it very transparent what the problems were. The Kingdom of Saudi Arabia is fighting vile terrorists in Yemen who are using human shields. Does she agree that we are approaching the point where our current arms export regulations are not sufficient to deal with the issue of the rebels—the terrorists—using human shields and that the number of civilian casualties is a result of that?
Elizabeth Truss
I thank the hon. Gentleman for his comments. In this particular case, we have already identified a problem in sharing internal information within government which led to these exports licences being issued. Of course we are doing further investigation into that, but that is the specific issue around the breach of the Court of Appeal judgment. That is where I am putting my focus as Secretary of State.
John Woodcock (Barrow and Furness) (Ind)
I refer Members to my declaration in the Register of Members’ Financial Interests. These mistakes are highly regrettable and point to the need for the Government to put their house in order in terms of the overall suspension as quickly as possible. Is it not lamentable for any Member of this House to imply that the suffering in Yemen is principally caused by any arms relationship or our coalition partners rather than the disgrace of the Houthi Islamist regime?
Elizabeth Truss
The hon. Gentleman makes an effective point, but the specific issue I deal with as Secretary of State for International Trade is making sure that our export licensing regime is in line with the process that we have laid out as well as the judgment of the Court of Appeal.
Several hon. Members rose—
Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)
Last year, the Department issued 30 million rounds of Warsaw Pact weapons to Saudi Arabia incorrectly. Then the Court of Appeal judgment and now this. Is it not time for the joint unit to be turned into an independent unit like any other regulator and for the Committees on Arms Export Controls to be turned into a proper Committee of the House?
Elizabeth Truss
As I have said, errors were made and that is why we have asked the director general at the Department for Work and Pensions to conduct a full review of how this process is being operated.
Louise Haigh (Sheffield, Heeley) (Lab)
Are any sanctions available for the companies involved in these mistakes, some of which presumably know full well that they should not be applying for the licences in the first place?
Elizabeth Truss
The issue is the issuance of licences. That is the issue I look at as Secretary of State and make sure that it is in place properly.
Sir Vince Cable (Twickenham) (LD)
Can the Secretary of State describe the action of British officials in Saudi Arabia in overseeing the use of British weapons by the Saudi forces in a process agreed with her Department and the Ministry of Defence?
Elizabeth Truss
This specific issue is how our process was administered within government. The specific cause of these errors, as we have identified so far, has been the lack of information sharing, but of course I will take up the right hon. Gentleman’s point, too.
Tulip Siddiq (Hampstead and Kilburn) (Lab)
When is the inquiry due to report back?
Elizabeth Truss
I hope to have the results of the internal review within the next few weeks.
Hywel Williams (Arfon) (PC)
Was there a change to UK policy on arms sales to Saudi Arabia in 2016 to discontinue consideration of past Saudi humanitarian law breaches?
Elizabeth Truss
As I said, the issue here is not the policy so much as how the procedure was or was not followed.
Andy Slaughter (Hammersmith) (Lab)
In the light of continuing breaches of international humanitarian law by the Saudis, and another disregard for the law by this Government, will the Minister withdraw her appeal?
Elizabeth Truss
The issue in question is specifically about whether or not the process was followed, and today we have submitted an affidavit to the court with full details.
Martin Docherty-Hughes (West Dunbartonshire) (SNP)
With regard to the kindness of the House, may I be the first to thank my hon. Friend the Member for Dundee West (Chris Law) for securing this urgent question to expose the utter incompetence around this issue. Thousands of UK citizens, military and civilian, are working on projects that are designed to be beyond the reach of this Parliament. What steps are the Government taking to ensure that they are not involved in projects in Yemen?
Elizabeth Truss
The question refers specifically to the process of issuing export licences, and that is what I have been focusing on.
Brendan O'Hara (Argyll and Bute) (SNP)
Is it not the case that this Government will always seek to break their own rules and turn a blind eye to breaches of humanitarian law when there is money to be made and deals to be had?
Elizabeth Truss
As soon as this issue was brought to my attention on 12 September, I took action to ensure that such things cannot happen.
Alan Brown (Kilmarnock and Loudoun) (SNP)
In reality, these so-called errors were discovered only after third parties took the UK Government to court, and the Government have fought this issue all the way through the courts. Rather than having an interim procedure, is it not time to end arms sales to Saudi Arabia altogether?
Elizabeth Truss
The breach in the Court findings is specifically about how the procedure was followed, and that is what we must focus on.
Arms and Military Equipment Exports to Saudi Arabia: Yemen Conflict
Elizabeth Truss Excerpts(4 years, 7 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for International Trade (Elizabeth Truss)
Statement on breaches of the undertaking given to the Court of Appeal not to grant new licences for export to Saudi Arabia of arms and military equipment for possible use in the conflict in Yemen.
I want to update Parliament on matters relating to the two breaches of the undertaking given to the Court of Appeal on 20 June by the then Secretary of State that we would not grant new licences for export to Saudi Arabia of arms and military equipment for possible use in the conflict in Yemen, and the further breach of the commitment given to Parliament, also on 20 June, that we would not grant new licences for exports to Saudi Arabia or its coalition partners which might be used in the conflict in Yemen.
As the Government informed the Court on 16 September and followed up with an affidavit today, my Department identified errors that had taken place in the export licensing procedure in relation to the Saudi coalition’s activities in the conflict in Yemen.
As I stated publicly on 16 September, I unreservedly apologise for the export licences that my Department issued in error. I have also given my unreserved apologies to the Court.
A procedure to ensure that export licences were not granted for goods for Saudi Arabia and its coalition partners for possible use in the conflict in Yemen was put in place on 20 June 2019. This followed the Court order and the then Secretary of State’s statement to Parliament.
The export control joint unit subsequently issued export licences to Saudi Arabia and its coalition partners and, in line with the agreed procedure, these were signed off at official rather than ministerial level.
It subsequently came to light that two licences were in breach of the Court undertaking, and one licence was granted contrary to the statement in Parliament as these licences were for goods that could possibly be used in the conflict in Yemen. The first licence identified as raising this issue (Licence No. GBSIE2019/06449) was for the export of a single Wirewound Air Cooler, valued at £200, for incorporation by a French company, Arquus Defense SAS, in a Renault Sherpa Light Scout. Officials in ECJU have informed me that the licence application stated that the vehicle would be used by the Royal Saudi Land Forces in Saudi Arabia and they have provided me with the following information about this licence. This is in line with the formal role of the FCO and the MOD in providing advice on the Consolidated EU and National Arms Export Licensing Criteria (the “Consolidated Criteria”) to the DIT.
Thereafter the sequence of events was as follows:
On 3 June 2019, the FCO recommended approval on the basis that the RSLF were not operating in Yemen.
On 4 June 2019, the MOD provided its advice recommending approval on the basis that the goods would not be used against the security or capability of the United Kingdom and that the equipment would not be diverted to an undesirable end-user.
On 4 June 2019, the case was recirculated to the FCO who again, on 6 June 2019, provided its formal advice, recommending issue.
On 18 June 2019, the FCO received information from the British Embassy in Riyadh that some RSLF troops were deployed in Yemen. Consequently, there was a risk that equipment destined for the RSLF might be used in the conflict in Yemen. The FCO was unaware that the licence had not already been issued and did not pass this information on to the DIT. We are investigating exactly how and when information was shared between FCO and DIT. In any event, it is plain that the DIT was not aware of the deployment of RSLF when the licence was formally countersigned and issued on 26 June 2019.
The item was shipped and this licence is therefore now spent.
Licence No. GBSIE2019/07556.
This licence was for the export of 260 items of various radio spares for the RSLF Signal Corps, valued at £435,450.
Thereafter the sequence of events was:
The application was circulated to the FCO and MOD on 31 May 2019.
The FCO provided its advice recommending approval on 6 June 2019.
The MOD advised approval on 26 July 2019.
The licence was formally countersigned and issued on 29 July 2019.
Given the fact that RSLF troops were being deployed in Yemen at the time the licence was issued, this licence should not have been granted.
DIT officials have checked with the exporter: 180 items have been shipped, with a value of £261,450, leaving 80 items licensed but unshipped with a value of £174,000. DIT officials revoked this licence on 16 September 2019.
Licence No. GBSIE2019/08983.
This is a licence for the temporary export for demonstration purposes of dual-use counter-improvised explosive device equipment. These goods remain under the exporter’s control at all times and so there is consequently no possibility that the equipment could be used in the conflict in Yemen. Consequently the licence is not within the scope of the undertaking.
Although not a breach of the undertaking, one further licence was identified (Licence No. GBSIE2019/06671) that was granted for the export of equipment for which the end user was the UAE Navy, contrary to the statement to Parliament. Export control joint unit officials cannot be sure that the relevant class of ship will be used solely for maritime security operations rather than in the conflict in Yemen. DIT officials revoked this licence on 16 September 2019 on the grounds that it was granted contrary to the parliamentary statement. Other licences have been issued to the UAE Navy that do not fall within the scope of the parliamentary statement.
Without seeking to prejudge the independent investigation, it appears that information pertaining to the conflict had not been fully shared across Government.
As soon as the issue was brought to my attention on 12 September, I took immediate action:
Taking immediate steps to inform the Court and Parliament;
Putting in place immediate, interim procedures to make sure the errors could not happen again;
Instigating a complete and full internal review of all licences granted for Saudi Arabia and its coalition partners since 20 June;
The Permanent Secretary commissioned, on my behalf, a full independent investigation.
The additional compliance processes comprise the following steps (in addition to the existing licensing processes):
A checklist has been drawn up for licence applications for arms and military equipment to Saudi Arabia and its coalition partners. This will be used by FCO and DIT officials when an export licence application is received for Saudi Arabia and/or any of the coalition partners. It is intended to ensure that staff remain vigilant in considering the available information and in assessing whether the application potentially falls within the scope of the undertaking and the parliamentary statement. A copy of this checklist is attached;
Licence applications for arms and military equipment to Saudi Arabia and its coalition partners will be referred to a new weekly meeting of senior officials from DIT, FCO and MOD. Some applications will have been refused by this point, for example where they fail to meet one or more of the Consolidated Criteria. This meeting will reach a recommendation for Ministers as to whether applications are within the scope of the undertaking and the parliamentary statement, applying a further checklist of questions which are designed to ensure that: (i) current and full information is available to enable an assessment of whether the items in question are for possible use in the conflict in Yemen; and (ii) if there has been any change in circumstances in the conflict in Yemen, this is properly included in the assessment. A copy of this secondary checklist is attached;
All recommendations to grant licences for the export of items to Saudi Arabia and its coalition partners will be referred to Ministers.
These additional compliance measures will be reviewed by the independent investigation, as well as kept under review by DIT to ensure that they are robust and appropriate.
The full review of licences for Saudi Arabia and its coalition partners is currently being undertaken. This internal review is still ongoing.
As a result of this internal review, we have identified one further licence that has been granted in breach of the undertaking given to the Court of Appeal. Licence No GBOIE2019/00197 allowed the exporter to return and repair electronic countermeasure improvised explosive device equipment licensed previously under three licences issued in 2014 (Licence Nos. GBSIE2014/010932; GBSIE2014/013148 and GBSIE2014/000512) to Saudi Eraad Defence Systems in Saudi Arabia (an agent of the RSLF). There are no new items being shipped under this licence. The equipment is deployed as an electronic countermeasure to prevent the triggering of a remotely controlled improvised explosive device.
The process of approval for this licence was as follows:
The application was received by DIT on 14 February 2019 and was circulated to the FCO, the National Cyber Security Centre at GCHQ (“GCHQ-NCSC”) and the MOD on 12 March 2019. It was circulated to GCHQ-NCSC for an assessment of whether the use of cryptography gave rise to any concerns.
On 19 March 2019, GCHQ-NCSC advised that the application raised no concerns in relation to the use of cryptography.
The FCO and MOD similarly recommended issue on 2 April and 16 July 2019 respectively.
DIT countersigned the licence on 12 August and issued the licence on 13 August 2019. Given the fact that RSLF troops were being deployed in Yemen at the time the licence was issued, this licence should not have been granted.
DIT officials contacted the exporter who confirmed that this licence has not been used. DIT officials revoked this licence on 20 September 2019.
The licence has not been used and has now been revoked.
My officials are also carrying out an urgent review of the composition of the coalition. This has identified a further licence which is in breach of the parliamentary statement. Licence No. GBOIE2016/00197b permits the export of fuel gauges for F-16 military aircraft to a number of countries which operate the F-16. The licence was originally granted on 5 August 2016 with an expiry date of 5 August 2019. On 28 August 2019 we extended the expiry date to 5 February 2020.
We have re-assessed this licence in light of the latest information and subsequently revoked it in so far as it applies to Jordan. At the time the licence was extended, the relevant officials in ECJU believed Jordan was not involved in military operations in the conflict in Yemen.
We have been able to confirm that none of the other recipient countries covered by this licence are coalition partners.
My officials are continuing to review all information relating to licences granted to Saudi Arabia and its coalition partners since 20 June 2019 and we will be open and transparent with the Court and Parliament as to any new issues that emerge.
In addition, the Permanent Secretary has commissioned, on my behalf, a full independent investigation. This will establish the precise circumstances in which these licences were granted, establish whether any other licences have been granted in breach of the undertaking to the Court or contrary to the parliamentary statement, and confirm that procedures are in place so that no further breaches of the undertaking can occur. This investigation will be led by an independent senior official, the Director General of Policy Group in the Department for Work and Pensions.
It is possible that more cases will come to light. As I have done so far, I will keep the Court and Parliament informed as to any new information that emerges.
Checklist for case assessment involving arms or military equipment
This is to be used by DIT and FCO licensing officers when an export licence application is received for Saudi Arabia and/or any of the coalition partners (CP). This checklist is in addition to the normal assessment against the Consolidated EU and National Arms Export Licensing Criteria (“the Consolidated Criteria”). If the assessment against the Consolidated Criteria identifies an application that should be refused, then it will follow the usual refusal procedure.
DIT licensing officers must check to ensure that all the required information is available to enable a decision to be made as to whether Saudi Arabia and/or a CP destination is involved in the export. This will include asking the exporter for further information where they suspect that the final destination could be Saudi Arabia or a CP. This will then be recorded as a case note on SPIRE.
FCO advisers must check to ensure that they are aware of the latest position on the conflict in Yemen, including the countries involved and the military forces involved. The FCO adviser, once in possession of the latest information, will carry out an analysis against this checklist. The analysis must be recorded on SPIRE.
Which countries are currently in the coalition involved in the conflict in Yemen?
Which military or government branches from Saudi Arabia or each CP are currently operating in the conflict in Yemen, so far as HMG is reasonably aware?
If a direct export (to any of Saudi Arabia or its coalition partners):
Is the consignee or end user a private/commercial enterprise with an industrial/civil/personal or private end use?
If yes - please record analysis on SPIRE, including that it is not in scope of the undertaking to the Court or parliamentary commitment.
Is the end user the civil police forces or emergency services of Saudi Arabia and/or a CP?
If yes - please record analysis on SPIRE, including that it is not in scope of the undertaking to the Court or parliamentary commitment.
Is the consignee or end user the armed forces of Saudi Arabia and/or a CP?
If yes - please record analysis on SPIRE, including that it is potentially in scope of the undertaking to the Court or parliamentary commitment.
Is that branch of the armed forces involved in the conflict in Yemen?
If yes - please record analysis on SPIRE, including that it is potentially in scope of the undertaking to the Court or parliamentary commitment.
If an indirect export (to any destination):
Are the goods to be incorporated Into equipment to be subsequently sold or delivered to the armed forces of a country whose forces are involved in the conflict in Yemen?
If yes - please record analysis on SPIRE, including that it is potentially in scope of the undertaking to the Court or parliamentary commitment.
This licence application must be referred to the weekly DIT-FCO-MOD senior officials meeting.
Checklist For DIT-FCO-Mod Senior Officials Meeting
Establishing the operating context:
Have all the licence applications for consideration in this meeting had full consideration against the Consolidated EU and National Arms Export Licensing Criteria (“the Consolidated Criteria”)?
Which countries are currently part of the coalition involved in the conflict in Yemen?
Has any new country joined the coalition?
Has any country left the coalition?
Has the armed forces/branch of Saudi Arabia and coalition partners involved in the conflict in Yemen changed so far as HMG is reasonably aware?
Has FCO confirmed that its advice, against the relevant criteria, is still up to date? (e.g. there is no information from posts (or other reasonably available sources) that post-dates the advice entered onto SPIRE that may call into question the recommendation)
Has MOD confirmed that its advice, against the relevant criteria, is still up to date? Assessing against the undertaking to the Court and the commitment to Parliament:
Has each application been assessed against the terms of the undertaking to the Court and the commitment to Parliament?
Is it clear that none of the applications involve arms or military equipment for possible use in the conflict in Yemen?
The discussion in each meeting should be recorded on a template which is uploaded onto each relevant case on SPIRE. This will form part of the advice provided to Ministers after the meeting.
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