International Aid: Treasury Update

John Redwood Excerpts

Programme motion
Tuesday 13th July 2021 Commons Chamber

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

I draw the House’s attention to my interests, as set out in the Register of Members’ Financial Interests.

The Government have done the right thing today in ensuring that this House has a vote on this matter, and thank you, Mr Speaker, for standing up for Parliament in that respect. There is a straight choice here, as was outlined by the Leader of the House yesterday in his statement. It is between rejecting this motion, in which case the Government will restore the 0.7% from next year—that was the olive branch that my right hon. and hon. Friends and I suggested—and accepting this so-called “Treasury compromise”. I tell the House that it is no compromise at all; it is a fiscal trap for the unwary.

First, it is quite possible that these conditions will never be met. We do not need to look in the crystal ball—we can read the book. It is indisputably the case that there has been only one occasion in the past two decades—in 2001—when these conditions would have been met. If we look at what the OBR has said, we see that it is incredibly clear that the debt to GDP measure will not fall until 2024-25 and day-to-day debt will not fall until 2025-26. Given that the 0.7% goes up and down with our economic performance, a very important point is that the 0.7% policy protects us in that respect.

[John Redwood (Wokingham) (Con)]

Does my right hon. Friend not accept that the OBR has exaggerated the gloom on the debt and deficit, particularly in the last two years? It exaggerated it by £50 billion for last year between November and March, so why on earth does he believe the OBR’s gloomy figures now? I am sure we are going to get the deficit down.

--- Later in debate ---

[Rishi Sunak]

If my numbers are right, as a percentage of GDP we were for the last few years spending double what Labour ever spent when it was in office, and my right hon. Friend is right about what we will be doing even at this reduced level.

Today’s approach is a pragmatic approach to meeting our commitments to the world’s poorest today and to have the secure fiscal foundations we need to meet those commitments for decades to come. We should be proud of what UK overseas aid means to millions of the world’s poorest people. It means tens of millions of girls around the world getting a better education. It means food parcels stamped with a Union Jack arriving in famine stricken countries such as Syria and Somalia. It means wind turbines, solar panels and hydroelectric dams generating clean energy in developing countries. I am proud, as I know the whole House will be proud, of the extraordinary good this country is doing around the world.

[John Redwood]

I am looking forward to this answer. Will the Chancellor remind the House, given that we are rightly keen to save as many lives as possible, that this country has given a great gift to the world with many free vaccines and pioneered the cheapest and one of the best vaccines to save lives all around the world?

[Rishi Sunak]

I completely agree with my right hon. Friend, and I will come on to that in a minute.

I am proud, too, of our response to last year’s economic crisis—the deepest recession this country has ever seen. In total, we have provided hundreds of billions of pounds to protect jobs, keep businesses afloat and help families to get by. That was the right approach, but we should be clear-eyed: covid has severely damaged our public finances. We have the highest level of borrowing since world war two, national debt of £2 trillion and rising, and debt expected to peak at 100% of GDP. If we want to continue to meet our commitments in the future, both at home and overseas, we must act now to rebuild our fiscal resilience.

G7 and NATO Summits

John Redwood Excerpts

Wednesday 16th June 2021 Commons Chamber

[The Prime Minister]

Yes, of course; we have massively increased support for the NHS, for instance, all of which is passported through to Wales. Funding has massively increased, and of course we work very closely with the Government—the Administration—in Cardiff. I think that it would be helpful in delivering great infrastructure for Wales, whether that is improving the A55 or the M4, if there were some consistency of approach. With the M4 bypass, for instance, and the Brynglas tunnels, I think it was crazy to spend £144 million of taxpayers’ money on a study without actually doing the bypass itself. I am very happy to work with the Welsh Labour Government if they get their act together.

[John Redwood (Wokingham) (Con) [V]]

No fewer than five representatives of the European Union at the G7 tried to hijack the agenda to undermine the people of Northern Ireland with their one-sided and unfair view of the protocol. Will the Prime Minister, who chaired the event well, make sure that goods can flow freely in the UK internal market, given that there are legal ways of doing this unilaterally? Does not the Good Friday agreement require the EU and the UK to respect the needs and wishes of both communities?

[The Prime Minister]

My right hon. Friend is completely right. It was the EU that shocked people in Northern Ireland by invoking article 16 of the protocol in January and trying to put a barrier on the movement of vaccines between the EU and the UK. We would never have dreamed of doing something like that, but it was that action that undermined people’s faith in the protocol.

Debate on the Address

John Redwood Excerpts

Tuesday 11th May 2021 Commons Chamber

[John Redwood (Wokingham) (Con) [V]]

I have declared my business interests in the register.

I begin by saying how much I agree with our colleagues from Northern Ireland who rightly want Northern Ireland to be as fully part of our internal market as it always has been and as the Northern Ireland protocol says it should be. I urge the Government, with our Northern Ireland colleagues, to urgently negotiate a solution with the EU so that we can have full access to and from Northern Ireland for normal commerce, or, if the EU is determined not to allow that to happen, to take the administrative steps necessary to make sure that our internal market works smoothly and argue the case that the Northern Ireland protocol states that that is part of its objective and so should be enforced.

I welcome many things in the Gracious Speech. I am glad that the Government give great priority to providing the resources to support the innovations and new ideas in the health service. The health service needs to build itself back on all the non-covid-19 treatments and procedures after its valiant fight against this awful illness, and it will take those extra resources that the Government are promising. There are innovations in the way that healthcare can be delivered, treatment offered and investigations undertaken following the covid-19 period that I am sure our Secretary of State will be very keen to ensure the NHS works up professionally to make a better service.

However, I urge the Government to address a series of problems that seem to be cropping up in various parts of the country relating to some surgeries that are not up to the standards of the best or the good regarding access to healthcare and appointments. I think everybody wants the reassurance that as the NHS gets back to a better balance in its working, everyone who feels they need an appointment can get through on the phone or on the internet and have early triage and early settlement in a suitable online or face-to-face appointment, depending on their needs. We are hearing about cases at some surgeries around the country where people cannot get through, where the phone lines are restricted, where the timing of the phone calls is limited, or where there are not enough appointments on offer and no forward booking. I hope that there can be guidelines on minimum standards so that people everywhere feel that they have access to excellent NHS care just as most people do who have good surgeries and good doctors.

I welcome the animal welfare measures in the proposals. One of benefits of making more of our own decisions is that we can and should set higher welfare standards, and I am glad that the Government are taking that up.

I welcome the wish to do more for veterans, and we must ensure that the covenant is properly legislated for. I hope the Government will consider the whole issue of housing, because one unsatisfactory feature of some service careers and lives is that when people leave after many years of good service, they have no deposit for a house and there is no availability of one, because they have been living in service-provided accommodation for many years. I hope the Government will consider more imaginative schemes that either support service personnel to buy a home of their own while still in the services, or help them with savings and the necessary arrangements to get the right combination of deposit and mortgage when they leave after many years of good service. We want our veterans to be better housed, and not to fall through the cracks because of the service they have given and their dependence on state-provided accommodation that lasts only as long as their service.

I hope the Government will take a stronger line on defending our fish and restoring our fishing industry. We must do lots of work before the so-called transition is over. Many Brexit voters look to the Government to provide that back-up to our fishing industry, and to ensure proper standards, regulation and control of our fishing grounds, and that our own industry is properly looked after.

I also hope we will soon get some VAT reductions or cancellations. VAT was imposed on a range of items that, if left to its own devices, the UK Parliament probably would not have chosen. That should be part of the Brexit bonus.

I hope the Government will work more, as the Gracious Speech implied, on national resilience. That issue is becoming common—indeed, President Biden is working hard on that in the United States of America. We have seen how, if we become too dependent on overseas interests, we must be careful in the field of energy. We have seen our French neighbours threatening Jersey over the energy supply that it currently receives from an interconnector to France. I hope the Government will learn a lesson from that. Interconnectors under the sea are vulnerable if other countries are hostile to us, because of the physical location of the cable. We should move our policy from one of increasing dependence on more interconnectors to import energy, to one of wanting self-sufficiency and capacity in the United Kingdom. We always used to have that, and surely it would be a good source of jobs and investment if we set ourself the target of getting back to meeting our own needs in whatever suitable style the Government wish.

I am glad the Government are talking about broadband and threats to the internet. We must ensure that, with the right amount of Government support and a great deal of private-led investment, we get fast broadband throughout the country, for both business and home use, as that is a big part of our future. We saw how dependent we have become on broadband as we made special arrangements for the pandemic, and many of those changes will live on in whole or in part. We therefore need that much better capacity and performance. The national resilience strategy must ensure some of the building blocks. Indeed, we literally need more building blocks, basic materials and capacity for the construction industry, but we must also produce enough of things such as steel and aluminium to have that resilience should problems emerge in the world’s supply system.

I am pleased that the Government will consider public procurement. Now that we are free to make more of our own decisions, it is right to review the huge sums of money that the Government spend on buying in goods and services, and ask ourselves whether, while preserving sensible competitive process, we can ensure that more of that money is well spent on United Kingdom supply. In some areas I feel that we resort too easily to the overseas option, and at a time when other great countries around the world are taking steps to ensure more of their own internal capacity, the United Kingdom must do that as well. Building back better should be about making sure, with that right mixture of public demand—perhaps sometimes with public pump-priming, but more often with a lot of private investment—that we start to replace some of that lost capacity and substitute for some of those imports, because our balance of payments deficit is still very large.

I was very interested to see a quote from the Labour deputy leader, the right hon. Member for Ashton-under-Lyne (Angela Rayner), in recent days, where she said:

“Working-class people don’t want a handout or someone telling us what we should think. We want the opportunities to do it for ourselves.”

I think those are a great couple of sentences. In a way, the Government have got there first, and quite a few of the things that the Government are saying and some of the things that the Government are doing in this Gracious Speech are about just that. Levelling up is not about making people more dependent on the state throughout the country with a sort of competitive bidding process to see who can get the most money from the state; it is about spending state money intelligently and making state interventions intelligently where only the state can go in areas such as transport and support for those in difficulty, while at the same time generating many more good private sector jobs, allowing many more businesses to flourish and allowing many more people to gain skills and trade for themselves. Through that we can have a more diverse, more private sector-led economy in the areas of the country that have not been as prosperous or have had higher unemployment than we would like.

I welcome everything in the Queen’s Speech, which promotes a great recovery and offers many more hand-ups for people, so that they do not need so many handouts. We need to have that active promotion of success and ensure that people feel they have opportunities. We have to make sure that companies feel they have opportunities, that there will be more better-paid jobs, that we help people who wish to train for them and that training is available so that people can go on that journey from a less well paid job to a better-paid job.

Above all, we need more measures—tax and otherwise —to help people expand their own small businesses or to see that self-employment is a good option that might give them a better life and a higher income. We do that by lower taxes, by smarter regulations and by a Government who spend their money on buying great UK products and services and allow some of that spending to filter into small companies, as well as into the usual large companies that provide so much of the public procurement that is domestically provided.

I welcome the Queen’s Speech. I want to see a rapid and strong recovery. I want a recovery that is all about many more better-paid jobs, harnessing a lot more private investment, expanding our industrial and service provision capacity and widening people’s boundaries and opportunities. I trust that our freeports, when they come, will have wide boundaries and a very generous offer, because they could be some of the pioneers of the enterprise spirit we will need in the places that we wish to level up. I wish to see the right repairs and improvements to the public estate, so that it is something of which we are proud. That goes alongside the levelling up, which will entail a lot of private investment and private job creation. That surely is the future. By all means level up; let us do it by promoting great investment and by having excellence in the public sector, where only the public sector can operate.

Covid-19: Road Map

John Redwood Excerpts

Monday 22nd February 2021 Commons Chamber

[The Prime Minister]

The hon. Gentleman raises a very important point. I will make sure that we do even more to get that point over to people, so that people who cannot wear face masks because of their disabilities do not face that kind of abuse.

[John Redwood (Wokingham) (Con) [V]]

Will the Government do more to improve air flow, control and extraction in health settings, and to make more safe use of powerful ultraviolet cleaners to reduce cross-infection further?

[The Prime Minister]

My right hon. Friend raises a very interesting point. Our scientific advisers are looking at everything we can do, including the means that he suggests, to reduce transmission of the disease.

Elections: May 2021

John Redwood Excerpts

Wednesday 13th January 2021 Commons Chamber

[Chloe Smith]

Yes, I can give that commitment. As the House will, I hope, have heard me say clearly today, I am not saying that the polls are to be postponed or that they should be postponed; we are carefully keeping the situation under review. I hope that, in answer to several questions today, I have been able clearly to make the point that that needs to be done carefully and that that is what we are doing.

My hon. Friend makes the excellent additional point that we cannot take this lightly. We have already postponed a set of elections once; we cannot postpone democracy forever. Voters expect to be able to have their choice and they shall have their choice. We have to be able to apply ourselves to running covid-secure elections, which is precisely what the comprehensive set of preparations that I have been leading has been doing, and I will be able to keep the House updated on that basis.

[John Redwood (Wokingham) (Con) [V]]

I strongly support the Government’s plan to go ahead with the May elections, which are crucial to our democracy. Given that many more people may well need or want a postal vote, will the Minister bring forward, before the elections, measures for enhanced security? There are worries about fraud and it is surely important that anyone who exercises a postal vote should have just the one vote and they should make the decision.

[Chloe Smith]

I welcome my right hon. Friend’s vigilance on electoral fraud, which is extremely important. We all want all forms of voting to be secure, and it is helpful of him to point out the fact that postal and proxy voting should be just as secure as when someone casts their vote in person at a polling station. In respect of both the elections we are discussing today and future elections, this issue is a top priority of mine. My right hon. Friend can look forward to the measures that I will bring forward, in line with the Conservative party manifesto, to improve the security of our postal and proxy voting systems and some other aspects of electoral integrity. We look forward to much longer discussions on those issues.

Northern Ireland Protocol: Disruption to Trade

John Redwood Excerpts

Wednesday 13th January 2021 Commons Chamber

[Michael Gove]

I am grateful to the right hon. Gentleman for raising those issues. Members of Parliament from across Northern Ireland, representing all parties, and indeed Members of the Assembly and Northern Ireland businesses, have been in touch directly with me and others to provide detailed information about the challenges that individual companies face. We are grateful for that, because we want to do everything that we can to resolve those problems.

On the specific questions that the right hon. Gentleman raises, there have been some online sales organisations that temporarily paused the distribution of goods to Northern Ireland, but the majority of parcel distributors continue to distribute goods. We are working with those who have paused—a small number, admittedly—to ensure that they resume normal service. It is important to recognise, as he pointed out, that although Northern Ireland’s businesses have been well prepared for the protocol, there are businesses sited in Great Britain, which operate in Northern Ireland, that we need to work more closely with to acquaint them with the guidance to provide the necessary reassurance.

The right hon. Gentleman made a point about steel tariffs; those tariffs would provisionally apply only to steel from the rest of the world, not to steel from Britain or the EU entering Northern Ireland, but we are looking at ways in which we can provide, through either the quotas or appropriate rebates, an automatic guarantee that businesses will not pay those tariffs for the steel that they need.

The right hon. Gentleman mentioned the concern that customers have had about the shortage of specific goods in supermarkets. There was initial disruption, but I am pleased to say that Andrew Opie of the British Retail Consortium confirmed earlier today to the Future Relationship with the European Union Committee that those shortages have now been overcome, pretty much. The right hon. Gentleman is absolutely right, though, that we need to make sure that we have a sustainable approach for the end of the grace period at the end of March, and I will be working with Helen Dickinson of the BRC, and others, to do just that.

The right hon. Gentleman mentioned some of the difficulties that businesses have had with the trader support service; 95% of queries have been answered within 15 minutes, but we still must do better in order to ensure that every business gets the support that it needs. I have been in touch with the Road Haulage Association and Logistics UK to deal with some of the specific problems that hauliers face, and we are contemplating what more might be required to support them.

On one final point, I know that the right hon. Gentleman and a number of other Members have been deeply concerned about the operation of additional VAT costs on second-hand vehicles being sold in Northern Ireland. I can confirm today that Her Majesty’s Treasury and HMRC will reinstate a margin scheme in order to ensure that Northern Ireland customers need pay no more than those in any other part of the United Kingdom.

[John Redwood (Wokingham) (Con) [V]]

Will my right hon. Friend introduce urgent legislation to ensure the smooth flow of goods between Northern Ireland and GB? Is it not crucial to our Union, in respect of both Northern Ireland and Scotland, that the Government keep their promise to take control of our laws and borders and to demonstrate a more prosperous internal market for the whole UK?

[Michael Gove]

My right hon. Friend is absolutely right. We want, first of all, to make sure that we are doing everything technically and administratively in order to ensure the smooth flow of goods but, as the Prime Minister confirmed to the House earlier, if we need to take further legal steps, then of course we will.

European Union (Future Relationship) Bill

John Redwood Excerpts

2nd reading & 2nd reading: House of Commons
Wednesday 30th December 2020 Commons Chamber

[John Redwood (Wokingham) (Con) [V]]

The Government are right to take back control and to recreate our sovereignty in the United Kingdom. We do not just want legal sovereignty; we also want practical sovereignty, so I ask the Government today to spell out how they will be cutting our taxes, changing our laws and using our powers to grant aid and support businesses and individuals, free of the EU controls, to promote the prosperity of the British people. That is what Brexit was all about. We stand on the threshold of independence day, so bring on the measures.

I have a couple of worries about this agreement. The first is fishing. One of the great prizes of Brexit is to recapture control of our fishing stocks and to rebuild our coastal communities and our fishing industry. Will the Government today promise to legislate immediately to prevent pulse fishing and over-large trawlers, which are doing enormous damage to our marine environment and to our fish stocks? We could at least do that as proof that we intend to rebuild our marine environment and our own domestic fishing industry. Will the Government set out the details of plans to train new fishermen and fisherwomen ready for the extra capacity we will need? Will they provide grant in aid schemes, so that those individuals can acquire second-hand trawlers or commission new trawlers from British yards so that we are again expanding the capacity of our industry?

I am also worried about the position in Northern Ireland. To what extent is our sovereignty damaged or impaired by the special relationships and special provisions of the withdrawal Act? I thought they were going to be changed in this latest agreement with the EU. Will the Government spell out more detail on the limitations on our power to be one United Kingdom in Northern Ireland, setting our own tax rates, making our own agreements on trade internationally and setting our own standards for products? We need to know, because we have already heard in this debate from Northern Ireland Members saying that is becoming a matter of division within Northern Ireland communities.

The issue also has read-across to Scotland. We know we have a battle to fight for the Union in Scotland. The SNP will clearly use the different arrangements in Northern Ireland as part of its battering ram against the Union, so I need some reassurance about the impact of the powers under this agreement and how we can start to settle those difficult issues.

The two things I most like about this agreement are the ability to withdraw unilaterally from it, should the EU be too aggressive in its handling of us and in its claims upon us, and the fact that the ECJ has no further power in the United Kingdom. That is absolutely vital, because otherwise it will assert extraterritoriality.

Public Health

John Redwood Excerpts

Tuesday 1st December 2020 Commons Chamber

[John Redwood (Wokingham) (Con)]

Many of my constituents are very angry that west Berkshire and Wokingham have been placed in tier 2 when we were in tier 1 before the national lockdown and we still have very low figures. On all the evidence that the Government say they look at—case numbers, trends in cases and available hospital capacity—there seems a very clear case that we should not be worse off as we come out of national lockdown than we were when we went in, and my constituents will expect me to reflect their anger in the way that I vote tonight.

I would far rather work with the Government, and I think that on the whole they are doing a very good job in a very difficult circumstance, but they could make life easier for themselves if they identified more policies that both bear down on the virus problem and allow the much-needed economic recovery so that we rescue and encourage more livelihoods.

The first policy is this: why can we not have expanded isolation capacity in the NHS to deal with covid-19, with volunteers properly backed up with all the equipment and safety protocols they need so that we free up many more of the district generals to do the general work that they need to do and free up their staff from the possibility of cross-infection and cross-contamination? One of the problems in the NHS at the moment is that there are too many staff who have had to self-isolate. Can we not do better on infection control, isolation, and specialisation? Money is no longer a problem, I am pleased to see. I am very happy for more money to go into the health service, but it must buy the staff and make sure that the staff are properly looked after, so that we have that extra capacity.

The second issue is the capacity of our hospitality industry. I encouraged the Department for Business, Energy and Industrial Strategy and the Department of Health and Social Care to do work some time ago on safer methods of extracting air quickly from hospitality venues, so that more people can use a hospitality venue safely. I believe that some of that work has shown some fruit, and that experts agree that we can create much safer environments if we reverse overflows and extract air quickly. We are now told by the experts that the main transmission threat is aerial transmission by being in an enclosed space with people with the disease. Can we not have more public prominence for that work? Perhaps we could have some grant systems for small businesses and proper technical assistance from the Government and from those the Government retain so that more venues can trade sensibly and profitably without being threatening in any way.

Can we please also have a proper package for all the self-employed and the small business people? Why do some groups of the self-employed get omitted from the packages every time? These are the people who go the extra distance, provide the flexible service, work all the hours God made, and do not often get much reward for it. These are also the people who have suffered the most from these compulsory closures. If a person works for a large company, they are, in many cases, paid their salary, even if that company cannot operate properly, but if they work for their own business, there is no income coming in. They cannot put food on the table unless they get public support or can trade profitably. I urge the Government to look again at their totally inadequate packages for the self-employed and small businesses and understand just how much we are going to need them when we get into recovery mode proper.

My final point in the brief time allotted is that we desperately need to give people hope about livelihoods and economic growth again. We desperately need to have a full recovery programme sector by sector, including for small businesses and the self-employed, and understand that some people will need to retrain and some will need to go from the employment they have lost into self-employment. Can we not hear a lot more about this and be positive? We need to cheer up the country up as well as control the virus.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Hon. Members have been very brief and well-behaved this afternoon, but we are trying to get in as many people as possible. Therefore, after the next hon. Gentleman, the time limit will be reduced to three minutes, but with four minutes to speak, I call Alex Sobel.

EU Exit: Negotiations and the Joint Committee

John Redwood Excerpts

Monday 19th October 2020 Commons Chamber

[Michael Gove]

I am very grateful to the hon. Gentleman, but I certainly would not take a frivolous approach towards the livelihoods of anyone, whether they are freelance musicians or anyone else who contributes to the health, prosperity and economy of this country. That is one of the reasons why we are so anxious to secure an agreement with the European Union and why we have been working so hard and in such a dedicated fashion in the Withdrawal Agreement Joint Committee. I mentioned earlier that as a result of the progress that we have made with Vice-President Maroš Šefčovič, the rights of 4 million EU citizens in the UK are now guaranteed, as are the rights of over 1 million citizens of the UK in the EU. More needs to be done to ensure that we can have a free trade agreement, but I absolutely take seriously the rights of citizens—whether they are, as I say, freelancers or others—to continue to be able to work and live freely.

[John Redwood (Wokingham) (Con)]

Has my right hon. Friend seen how much popular and excellent quality fresh food there is in our supermarkets with the Union flag on the packaging? Will he confirm that if the EU insists on high tariffs on food trade, where it sells us massively more than we sell it, that would be a huge opportunity for our farmers to grow and rear more for the domestic market and get back the huge amounts of market share stolen from them under the common agricultural policy?

[Michael Gove]

My right hon. Friend makes three very important points. The first thing is that UK producers are doing a fantastic job in increasing production in a sustainable way. Championing the quality of UK produce is something that we should all do and recognise, whether it is Orkney cheddar or Welsh lamb, that the UK flag is a symbol that connects quality not just to our consumers but worldwide. The second point that he makes, which is absolutely right, is that the common agricultural policy has been harmful, and our escape from it will ensure both that our farmers can prosper and that our environment can improve. His third point is that we should be confident not just that we can sell more excellent produce here in the UK but that, as we emerge into the world as a global free-trading nation, new opportunities to sell our excellent produce are available to our farmers, and he is absolutely right to be optimistic.

United Kingdom Internal Market Bill

John Redwood Excerpts

Wednesday 16th September 2020 Commons Chamber

[John Redwood (Wokingham) (Con)]

I rise to support clauses 46 and 47 and to disagree with the Opposition amendments. It is a great pity that the SNP wishes to turn every debate in this House into a debate on independence when they lost the referendum, because, as a great democrat, I have only ever wanted willing volunteers in our Union. I was delighted to support a referendum to leave it to the Scottish people, and I trust their judgment—it is a pity others do not as well.

Clauses 46 and 47 take important powers to honour one of the pledges made by the Vote Leave campaign, and believed by many voters in that important referendum, that the United Kingdom Government should replace the moneys for projects and investments that would otherwise have been supplied through the European Union. Taking this power illustrates that there is serious intent, that the Government will honour that promise of the referendum campaign, and that the United Kingdom will not lose—indeed, it will gain—as a result of changes in the arrangements for funding large projects and suitable investments.

I always thought that there were three problems with relying on the European Union to fund some of these projects. The first and biggest was that we had to send far more money to Brussels than we got back. One of the great advantages of this power is that every penny that taxpayers pay in the United Kingdom for these purposes will come straight back. There will not be a huge levy on top.

[Alan Brown]

Taking away the semantics about money and all the rest of it, I am sure that the right hon. Member understands that when it comes to structural funds, the EU disburses it to managing authorities—so in Scotland, the Scottish Parliament gets the money from the EU to administer and carry out projects. Clause 46 allows the UK Government to bypass the Scottish Government completely. The EU has not forced one single infrastructure project on England, Wales or Scotland against the wishes of the sovereign Parliaments, but this measure allows the UK Government to bypass the Scottish Parliament and not to recognise the sovereign will of the Scottish people. Surely that is the problem.

[John Redwood]

I do not see any problem at all. I cannot for one moment believe that the United Kingdom Government would want to force on Scotland a project that Scottish people did not wish. Nor do I recognise this idea of the sovereign Scottish Parliament; it is completely under the power of the European Union until we have properly left. The hon. Gentleman never seems to recognise the ultimate power of the European Court of Justice and of the money-awarding procedures that we had to go through to extract back some of the United Kingdom money that we had to send in very large quantities to the union.

[Stephen Doughty]

Of course, the right hon. Gentleman has never supported devolution. I think he described it in his own words as “appeasement” and said that we had had too much of it. I know he would love to go back to those days when he was Secretary of State for Wales and was treating Wales like a branch office. Is it not the truth that he has never supported devolution, that he does not support it now, and that he wants to ride roughshod over it?

[John Redwood]

No, most certainly that is not the point, and that is not my position. I am a democrat, and I have accepted completely the results of the referendums on devolution. It is quite true that I and my party were on the other side in the referendum on devolution. I believed that it would to lead to a big insurgence in unsuccessful Scottish nationalism, which is exactly what it did, and I do not think that that has enriched our public life any. However, I am a democrat and I fully accept the devolution settlement. I am very happy for the devolved authorities and Parliaments to exercise their powers. I also believe that we should co-operate fully with them, and I urge my Friends on the Front Bench to do so. Of course it is as much in our interests as it is in the interests of the Scottish Parliament to define the projects that Scotland most wants and that are most necessary to promote its prosperity.

[Patricia Gibson]

The right hon. Gentleman says he is a democrat. In view of that, does he acknowledge that the Sewel convention says that this Parliament will not normally legislate on areas or matters that are devolved to the Scottish Parliament? We also know that what is not reserved is automatically devolved, so does he think it appropriate to override the Sewel convention and threaten the powers and sovereignty of the Scottish Parliament without the consent of the Scottish Parliament, which is sovereign?

[John Redwood]

I do not accept that it does any of those things. I think we are legislating in a perfectly legal and sensible manner.

I shall go back to the remarks I wish to make as to why it is better that we pay for our own projects rather than doing so with the big discounts on our money through the European Union. The second reason for that is that some of the European schemes required the project to be a marginal one. Part of the terms of giving the money was that it was not a project we would finance for ourselves or not a core, essential project. That did not make a lot of sense. Once that is under United Kingdom control, we will obviously jointly wish to finance the best projects, and of course that will be in full consultation with the devolved Governments around the country.

The third reason that I think we will do better without European Union intrusion is the flagging of these projects. There has been deep resentment in the United Kingdom that whenever a small amount of money came from Europe into a project, it had to show the EU flag but we were not allowed to put a British flag on it to say that all the so-called EU money had actually come from United Kingdom taxpayers. Even worse, we were not even allowed to put a British flag on it to show that a larger proportion of the funding for the scheme had often come directly from the United Kingdom Government. It will be much better when we do not have to false-flag projects in the interest of misleading people about who is actually paying for something.

In this debate on the Bill generally, I know that the Opposition are still very exercised in thinking that these and other powers are illegal because they in some way violate the rules of international law set out in the EU withdrawal agreement. State aid is part of that argument, and these are the two central clauses on state aid. I would like to say that I disagree strongly with my right hon. Friend the Northern Ireland Secretary. I do not think there is any way in which this legislation violates international law. It clearly asserts and upholds United Kingdom law, most notably the sovereignty clause in the European Union (Withdrawal) Act 2018. That Act was a compromise agreement and a halfway house. It was attached to a political agreement to complete a proper negotiation in due course over our future relationship, so it was always rather problematic; because it was like that, it was ambiguous and contradictory. There are perfectly strong clauses in the EU withdrawal agreement and the EU (Withdrawal) Act stating that it is a duty that the single market and customs union of the whole United Kingdom, which expressly includes Northern Ireland, is upheld. That is exactly what this Bill is seeking to do.

The Government and many others hope that there will be a last-minute agreement, because it is quite easy to deal with all the outstanding legal issues in a comprehensive agreement. I am a bit sceptical that that is going to happen, because I see no evidence of good faith in negotiations by the European Union, and I think that, were there to be a breakdown, there would be a second legal argument that there had not been good faith. That is another reason why there is no sense in which we are seeking to break an international agreement, let alone the law.

I am very pleased that the Government are taking crystal clear powers to provide state aid and investment in projects. I hope the Government will also, ere long, issue a very strong statement of the United Kingdom’s state aid policy that should cover this and other matters. We owe it to the international community to have a strong, clear and independent state aid policy that is perfectly compliant with the World Trade Organisation rules on this matter, because we wish to be a global trader with more free trade agreements outside the European Union space. In that respect, we can probably do better than the European Union, because there have been a number of important cases where the European Union has been found to be in violation of state aid rules by the World Trade Organisation, and perhaps an independent Britain can do a bit better.

[Stephen Farry (North Down) (Alliance)]

Is the right hon. Gentleman aware of the comments emerging from Speaker Pelosi and others in the United States stressing that if there is any breach of the protocol in the withdrawal agreement—a threat to the Good Friday agreement—there will be no prospect of a trade deal with the United States? Is that not the fundamental flaw in the analysis of those pursuing a hard Brexit?

--- Later in debate ---

[John Redwood]

I am not pursuing a hard Brexit; I am pursuing the independence of our country which was voted on all too many years ago and which this Parliament, in a previous guise, deliberately blocked, delayed and diluted. I am very proud to belong to a Parliament that is now clearly charged, yet again, by the electorate of the United Kingdom to get on with it and deliver Brexit. The hon. Gentleman should recognise that Mrs Pelosi is not the President of the United States of America. It is the President who leads the negotiating teams for trade deals, and, as I understand it, President Trump and his International Trade Administration are very keen on a trade agreement with the United Kingdom and still negotiating on it. I suspect that the Democrats in the House of Representatives, who will have their own political reasons for what they are doing at the moment, have not quite understood just how important this Bill is for the future of the United Kingdom single market and customs union—because who would want to do a trade deal with the United Kingdom if we did not have this Bill and could not guarantee that we were pledging the whole of our market in the market opening that such a free trade agreement would require? This Bill is fundamental to any success in negotiations that we have with Japan, the United States, maybe the Transatlantic Trade and Investment Partnership in due course, and so forth.

This is a vital piece of legislation to implement the independence of our country in a true Brexit. It is an entirely legal piece of legislation that reflects important statements in the withdrawal agreement and, above all, reflects a sovereignty clause in the EU (Withdrawal) Act that some of us supported and put in with the express purpose in mind that if there was no good faith from the EU we would need to make unilateral arrangements for our future trading. It is crucial for a country that wishes to have much more positive trade relations than the EU has had with a wide range of countries outside the European Union space.

I look forward to the state aid regime and investment regime being used in the interests of the whole country, with the United Kingdom being able to spend more of its own money on its own priorities, with good guidance and advice from Scotland, Wales and Northern Ireland as we go along, but not forgetting the importance of England and the need for us to have good English projects as well. I hope that it will be twinned with an exemplar state aid policy for world trade purposes that may indeed be different from that of the European Union.

[Ben Lake (Ceredigion) (PC)]

It is a pleasure to follow the right hon. Member for Wokingham (John Redwood) and, in particular, the hon. Member for Glasgow Central (Alison Thewliss), whose assessment of the Bill’s deficiencies was exemplary—I very much agree with it. I am conscious that a great many Members wish to contribute to this debate, so I shall keep remarks brief, confining them to clause 46, which extends the powers of UK Ministers to act in policy areas that have been devolved to Wales.