(2 years, 10 months ago)
Lords ChamberTo ask Her Majesty’s Government what plans they have to support a vaccine patents waiver at the World Trade Organisation.
My Lords, the waiver proposal of the World Trade Organization goes beyond patents and vaccines, encompassing most intellectual property on all Covid 19-related products and technologies, with no geographical or duration limits. While HM Government remain open to initiatives that help with vaccine production and distribution, there is no evidence that waiving intellectual property protections would advance these objectives. We must focus on actions that will make a real difference, including delivering and administering vaccines globally.
I am grateful to the Minister for that, but he will understand that my Question is in the context of a previous prime ministerial promise and an obvious logical need to vaccinate the planet. The UK is paying the highest recorded price for the Pfizer vaccine. What work are Her Majesty’s Government doing to encourage Pfizer to share its necessary technology—not just the recipe—with the 100 potential mRNA manufacturers in Africa, Asia and Latin America identified by Médecins Sans Frontières and Human Rights Watch? They could be producing these vaccines now.
My Lords, we are still learning about coronavirus and about how to respond effectively to its mutations. One thing that we do know is that continued innovation by companies such as Pfizer is required to enable scientists to continue to develop health products and technologies, including vaccines to help tackle the virus.
My Lords, in part because we have failed to achieve a vaccine permit waiver, there will be further variants of Covid, which may well be resistant to our vaccines. The WHO is urging countries across the world not to loosen the controls and protective measures that they have—including, for example, compulsory mask-wearing. Will the Minister immediately, as a matter of urgency, urge his colleagues to reconsider the ending of the controls that we have had over previous weeks?
My Lords, I will certainly pass those comments on to my colleagues.
My Lords, the increase in production of vaccines, which is now widely known, will lessen supply demands, but of urgency is the development of healthcare systems for delivery. In the context of international aid cuts, what are Her Majesty’s Government doing to support the development of effective delivery systems?
My Lords, it is absolutely right to say that challenges to vaccine equity lie with supply and manufacturing constraints, pressures on health systems to administer available vaccines, supply chain issues such as export restrictions and tariff barriers, and vaccine confidence. These are the matters that we should be concentrating on.
My Lords, it is the turn of the Liberal Democrats. The noble Lord, Lord Jones of Cheltenham, wishes to speak virtually, and I think this is a convenient point to call him.
My Lords, now that the UK is outside the European Union, do the Government understand that being the champion of a vaccine patents waiver may be the perfect way to win friends and influence people in other countries, but may also, according to the British pharmaceutical industry, have the unintended consequence of reducing vaccine production and research?
My Lords, intellectual property rights and their continued protection are the way to keep innovators innovating, creators creating and investors investing. That is what will lead to more research.
My Lords, ramping up production will take a number of years, particularly if there is no TRIPS waiver. Until then, richer countries sharing their doses with lower-income countries will be critical to ending the pandemic. Will the Minister commit to doing more on transparency here, so that we join other countries in publishing the type and number of doses that we are sharing, along with their sell-by dates?
My noble friend makes a good point. It is interesting that, as reported in the Financial Times last week, Kate O’Brien, the WHO’s head of vaccines, said that the health body saw a
“very positive outlook for supply”
in 2022. But she cautioned that that was predicated on dose-sharing continuing, and manufacturers continuing to honour deals brokered under COVAX. This is the way forward.
My Lords, the noble Lord, Lord Campbell-Savours, wishes to speak virtually. I think this is a convenient time for me to call him.
My Lords, if no one is safe until everyone is safe, why cannot the 100-plus vaccine producers referred to by my noble friend Lady Chakrabarti worldwide—in Africa, Asia and Latin America—be licensed under a TRIPS waiver to produce the vaccine in dedicated production areas, within approved plants and facilities, totally under the quality control of personnel seconded from advanced nation producers? By that means, we can avoid potential IP waiver problems, preserve quality, and even make profits, if they really are so necessary.
My Lords, we have seen no evidence that intellectual property is a barrier to the production or supply of Covid-19 goods, including vaccines. We will continue to engage constructively in debates of the World Trade Organization on these matters, including the points that the noble Lord makes.
My Lords, does the Minister not agree that if the Government’s objective—an admirable one—is that vaccines should be equitably available around the world, it has not been a total success so far? It has fallen a bit short. If he agrees, should not the Government be focusing now on how to find measures that will provide for equitable distribution when the next pandemic comes along, and not leave us still arguing to a deadlock in Geneva?
My Lords, I am really pleased to say that the UK has been a world leader in ensuring that developing countries can access vaccines, through our early support to the COVAX scheme and commitment to donate vaccines. To date, the UK has delivered more than 30 million doses to countries in need, and we will have donated 100 million by June 2022. I am very pleased to say that 80% of those donations will go to COVAX.
My Lords, my noble friend Lady Chakrabarti is right to raise this matter, and I agree with what she said. Less than 10% of the population in the world’s poorest countries are vaccinated; the efforts that have been made so far have failed. The Minister said that the current proposal before the WTO was too broadly drawn. If that is the case, and he does not want to back that which has been supported by more than 100 countries, including South Africa and India, perhaps he would consider proposing his own solution on patent waivers. Most people seem to think that it would help the situation.
My Lords, the UK remains open to all initiatives that will have a demonstrable impact on vaccine production and distribution, and we will continue to engage constructively in discussions at the WTO to that end and bring forward our own proposals as necessary.
My Lords, when I raised the matter of a TRIPS waiver with the Minister during the passage of the Trade Bill on 1 October 2020, when my noble friend Lady Sheehan had an amendment to it, the noble Lord said that it was too soon. Nearly a year later, I pressed the noble Lord, Lord Parkinson of Whitley Bay, who said that the Government remained unconvinced. Six months on, only 10% of Africa is fully vaccinated and, shockingly, 100 million doses had to be declined because they were too close to their expiration date. Without there being a TRIPS waiver, what is the Government’s core estimate of when Africa will be as fully vaccinated as Europe?
My Lords, I am afraid that there is no evidence at all that an IP rights waiver of the kind that the noble Lord suggests would help us to meet his objectives. The reality is that a proposal for a TRIPS waiver would break up the very framework that helped to produce Covid-19 vaccines at an unprecedented pace. That is the key point.
I am very much obliged to the noble Lord. What assessment have the Government made of the establishment in Cape Town by Afrigen Biologics and Vaccines of the first Covid mRNA vaccine technology transfer hub for vaccine production in Africa? It benefits from the fact that Moderna has effectively suspended its patent rights during the pandemic. The European Union, the World Health Organization and numerous countries, prominently France, have funded this project in a Commonwealth country. Have the Government thought about a similar initiative with AstraZeneca, given that 97% of the investment in the AstraZeneca vaccine was from the Government or from philanthropy, not from other investors?
My Lords, the noble Lord is right to put that example before the House, and I shall make sure that I have a look at it and see whether we can follow it up.
(2 years, 10 months ago)
Grand CommitteeMy Lords, I join other noble Lords in thanking the noble Baroness, Lady Hayter of Kentish Town, the esteemed chair of our International Agreements Committee, for having secured this debate and for providing the opportunity to debate this important subject. I thank her and the committee for its recent report scrutinising the framework agreement between HM Government and the Government of Ukraine. It is a particular pleasure to have my noble friends Lord Astor and Lord Lansley and the noble Baroness, Lady Liddell, who have served with such distinction on that committee, speaking today.
In line with the thoughts of my noble friend Lord Lansley and the noble Lord, Lord Purvis of Tweed, I am happy to put the agreement into its wider, proper context. The United Kingdom remains firmly committed to Ukraine’s independence, sovereignty and territorial integrity, and the framework agreement is a key illustration of that commitment. We cannot but be concerned about the recent reports of growing aggression from Russia towards Ukraine, with additional forces being amassed on its borders. As noble Lords would expect, we are monitoring the situation closely and are deeply concerned by the pattern of Russian military build-ups on the border of Ukraine and of course the illegally annexed Crimea.
We call on Russia to uphold the OSCE principles and commitments that it freely signed up to and which it continues to violate through its ongoing aggression against Ukraine. We have made it clear to Russia, and will continue to do so, that any military incursion into Ukraine would be a severe strategic mistake and would have a severe cost in response. I say that unequivocally in direct answer to the comments made by the noble Lord, Lord Foulkes of Cumnock. In answer to the noble Baroness, Lady Chapman, and others, including my noble friend Lady McIntosh, I hope they will appreciate that now is not the time to go into the detail of what our response would be and it would be inappropriate to do so, but I assure them that those matters have been worked through and thought about extremely seriously.
Can the Minister confirm that among the sanctions that the Government are looking at are financial and economic sanctions and travel restrictions and that they are considering targeting Putin himself, his henchmen, the oligarchs and specific sectors that will harm Russia’s economy, so that there can be no doubt that they will be dealt with severely?
My Lords, I can confirm that a whole range of sanctions and matters are being considered, but I hope that the noble Lord will accept that to give details of them today would not be a sensible thing for Her Majesty’s Government to do.
I accept that, but can the Minister just say that the kind of actions I have just mentioned are included in and have not been excluded from the options being considered by Her Majesty’s Government?
My Lords, I think I would like to rest on saying that a whole range of sanctions and other options are under consideration.
I was also asked about co-ordination with allies. I think the noble Baroness, Lady Hayter, referred to how important it is to have full co-ordination with our allies. I can confirm that the UK, the US and our European partners, with which we are in constant dialogue, share a common assessment and are deeply concerned. We are unwavering in our support for Ukraine’s territorial integrity, and we will continue to support it in the face of Russian hostility. I will write to the noble Lord, Lord Purvis, and my noble friend Lady McIntosh in more detail about our contact with allies and on other matters that have come up; for example, my noble friend’s point about cybersecurity.
Noble Lords will have seen that the primary focus of the agreement is on the UK’s provision of support for the Ukrainian naval capabilities enhancement programme—UNCEP. This programme will enable the UK and our industry partners to provide extensive and valuable support to bolster Ukraine’s defensive naval capabilities. As my noble friend Lord Risby recognises, this is important—in passing, I want to thank my noble friend for his services as a trade envoy and for his kind comments about Her Majesty’s ambassador in Kiev. The framework agreement represents a continuation of previous discussions between the UK and Ukraine on its naval development, including the memorandum of intent signed aboard HMS “Prince of Wales” in October 2020 and the memorandum of implementation signed aboard HMS “Defender” in June 2021.
Let me be clear—I think it is important to make this point—that the benefits from the framework agreement are not just for Ukraine and are not solely about regional security, hugely important though that is. The UK’s contribution to UNCEP is consistent with and supportive of some of our key objectives at home. One of the components of UNCEP support will be the design and construction of eight new P50U missile craft, some of which will be built by Babcock in its sites at Rosyth on the Firth of Forth, an area which is well-known to the noble Baroness, Lady Liddell. This work will secure highly skilled engineering and shipbuilding jobs, supporting one of our key industrial sectors as well as contributing to the Government’s levelling-up agenda.
I assure noble Lords that our support for Ukraine as an independent state should not be interpreted as the UK being adversarial towards Russia. While we are providing a range of support to Ukraine, that support is essentially defensive in nature, as the noble Baroness, Lady Hayter, recognised. As the noble Lord, Lord Foulkes of Cumnock, said so perceptively, it is a deterrent; we should emphasise that important aspect. We do not want to undermine Russia, far less attempt to encircle or threaten it. What we want is for Russia to reverse its long-term build-up of forces on or near the Ukrainian border. In doing so, we are not challenging Russia’s sovereignty, which of course does not extend to Ukraine, but supporting that of Ukraine. I emphasise that point to noble Lords.
I note that the committee considered that the provision of UKEF support for the UNCEP represents a “step change” in government policy, given previous statements about not providing “lethal aid” to Ukraine. I should point out—this is more than just a technicality—that the framework is not about the provision of aid to Ukraine; it is about facilitating commercial arrangements. Although it is true that UKEF will itself lend some of the funds to the Government of Ukraine to finance the contracts with UK suppliers, the premium will be charged commensurate with the risks being taken on and the OECD’s commercial interest reference rate will also be charged on the loan. I believe that UKEF support for defence contracts should not be considered a step change but more a continuation of our long-standing approach to support Ukraine.
Our support for Ukraine is important because Ukraine matters, not just as an independent country wanting to enhance its defence capabilities but because of the opportunities it offers. As my noble friend Lord Astor of Hever noted, the UK was the first EU member state to recognise Ukraine’s independence, on 30 December 1991. It was on 10 January 1992, nearly 30 years ago, that UK-Ukrainian diplomatic relations were established. Since its independence, Ukraine has achieved huge advances in freedom and democracy, and our relationship has never been stronger. If we can support Ukraine to become a democratic, free-market success story, we will not just have strengthened international security, we will also have created valuable opportunities for UK businesses. Although much progress has been made on reform, further action is needed for Ukraine to continue along its Euro-Atlantic path and attract further foreign investment. I assure noble Lords that the UK continues to work with Ukraine on the necessary reforms to help it fully realise its potential.
As the Foreign Secretary said last month, we believe that trade is the key to unlocking countries’ potential through new opportunities for investment and job creation—in this case, those advantages accrue both to Ukraine and across the United Kingdom. It was with that in mind that HM Government agreed to increase the amount of support available through UK Export Finance for projects in Ukraine to £3.5 billion. If I may, I will let the noble Lord, Lord Purvis, know the full details of that and some of the other points he raised on the UKEF agreement.
UKEF, a great organisation and the oldest export credit agency in the world, has a mission to ensure that no viable UK export fails for lack of finance or insurance, while operating at no net cost to the taxpayer. I clarify, again for the noble Lord, Lord Purvis, that it is not insurance to exporters; it is government-supported lending to Ukraine. I can also confirm that the defence sector does not get any special treatment within the facilities given by UKEF.
Over the last five years, UKEF has provided almost £29 billion-worth of support for UK exports and exporters. I should also add—I know that noble Lords may be concerned about the safety of taxpayers’ money—that UKEF employs a robust risk management framework, as evidenced by the low number of claims on which it has had to pay out in recent years, despite the challenges recently posed by the pandemic and other shifts in the global economy. I can assure noble Lords that UKEF rigorously follows OECD standards and takes all reasonable precautions to avoid supporting transactions that might be tainted by corruption. How important it is to make sure that these standards are maintained and strengthened.
The importance of the framework agreement in this context is that it resolves what had appeared to be an impasse. Before the framework agreement was signed, Ukraine’s national rules governing procurement precluded it from requiring a specified portion of the goods or services that are the subject of a contract to originate from a certain country. Meanwhile, understandably, UKEF’s own rules require that a minimum level of such goods or services be identifiable as UK content before it can provide financing support to a contract. However, Ukrainian law permits for exceptions to its general rule to be granted, but this must be documented through a legally binding government-to-government agreement that is subject to regulation by international law. Hence the framework agreement that we are discussing today enables UKEF to consider the prospective support for the UNCEP, with its mutual benefits for both parties.
Although the effect of this framework agreement will be to enable UKEF to support the UNCEP, which is so important—I stress that again—to enhancing Ukraine’s defence, it is also expected to be the first of a number of framework agreements that will help British exporters access opportunities to trade in Ukraine across trade sectors in addition to defence procurement. I can confirm to the noble Baroness, Lady Liddell of Coatdyke, that this is the first agreement of this sort to be entered into by UKEF.
We know that there are good opportunities in the energy infrastructure sectors for UK exporters. There are opportunities in the field of nuclear energy, which could be worth up to £250 million over four years. Let me say that without the support of UKEF contracts like this will not be able to proceed.
In conclusion, I hope that noble Lords agree that, taking all these factors into account, the framework agreement represents a valuable addition to our range of international agreements, and one that will be of significant benefit to both parties. I thank again the noble Baroness, Lady Hayter of Kentish Town, and the International Agreements Committee for giving us the opportunity to debate this important agreement in advance of its—
Before the Minister resumes his seat, I wanted to press him on the Russian-backed interconnector across the channel. He has not mentioned it. Maybe he intends to write to me; I just wanted to be clear about that.
I thank the noble Baroness for that intervention. I was going to conclude by saying that I would write to her on that. I hope that she finds that acceptable.
I thank your Lordships again for this debate. I think that we should all look forward to the likely ratification of this agreement later this month.
(2 years, 11 months ago)
Lords ChamberTo ask Her Majesty’s Government what plans they have to lower the tariffs on tuna imported from the Maldives.
My Lords, the Maldives is an important trading partner for the UK and we are keen to co-operate on trade opportunities including in such areas as food, drink and sustainable development, including fishing. However, the country is rated by the World Bank as an upper-middle-income country and therefore does not qualify for reduced tariffs under the UK’s generalised system of preferences, which, of course, lowers tariffs for developing countries.
I thank the Minister for his Answer. I am aware that the Maldives has transitioned from a developing to a middle-income country and is therefore not eligible for GSP. However, it seems to me an injustice that the Maldives, one of the few countries to practise genuinely sustainable fishing where fish are caught one by one, is the only Commonwealth country with small island development status on which the UK imposes an import tariff. The UK has economic partnership agreements with Caribbean and Pacific states, the Seychelles and Mauritius, which, incidentally, has a higher per capita income than the Maldives. Given that the tuna fishing industry is vital to the Maldives economy, can my noble friend tell us when there is likely to be a change in the status of the Maldives in its access to the UK market?
My Lords, my noble friend makes a good point about the fishing practices used by fishermen in the Maldives, on which we must congratulate them. However, there are classifications that determine whether a country is a developing country. To go outside those classifications would have ramifications elsewhere.
My Lords, surely we need to be more flexible than that these days. I congratulate the Maldives Government on their sustainable practices, which the noble Baroness mentioned. The UK Government are rightly a champion of ocean conservation and biodiversity. Where there are good fishing practices, particularly for tuna, should we not give them strong trade preferences—yes or no?
Again, the noble Lord is quite right to applaud the fishermen in the Maldives but, as I said, these things are governed by rules not always set by the WTO. We hope always to take a lead on this but, at present, our tariff rates on tuna do not differentiate between production methods of the same goods, such as different ways of catching tuna.
Does my noble friend not agree that the way forward is for us to enter a bilateral economic partnership agreement with the Maldives? I believe that the Government of the Republic of Maldives would be open to that possibility. Could we initiate such discussions?
My Lords, my noble friend makes another good point. The UK currently has a busy and ambitious FTA negotiation programme with a full pipeline of negotiations. Sadly, we therefore have limited capacity to consider new FTA or EPA negotiations in the immediate term. However, the Maldives is an important trading partner to the UK and officials are exploring pragmatic options to enhance bilateral trade relationships in areas of mutual interest. I am sure that noble Lords will applaud that.
My Lords, the Government talk a lot about wanting to be a champion for the Commonwealth—and so they should—and about sustainability. We have a nation here with small island development status that, as far as we know, is fishing sustainably on a global basis, so it seems extraordinary that the Government are being so cool on the prospect of having some kind of bilateral agreement with the Maldives. Will they perhaps warm up a little and try to progress this a bit more quickly?
My Lords, no one could feel warmer towards the Maldives than I do. In a sense, it is a matter of congratulation for the Maldives that it is now an upper-middle-income country. We should congratulate it on that, but the downside is that it is no longer classified as a developing country.
My Lords, could the Minister, who has mentioned a list of countries that have a higher priority than the Maldives for a free trade agreement, tell us which African countries are on that list and when they will get an agreement negotiated?
My Lords, on many occasions the House has heard me refer to the FTA negotiations. We are hoping to finalise now with Australia and New Zealand, we are hoping to resume trade negotiations with the US and our negotiations with the Trans-Pacific Partnership and we are hoping to start negotiations with India and the GCC. I think that the House will recognise that that is a full pipeline and, frankly, we cannot do everything at once.
My Lords, I am pleased to hear my noble friend the Minister recognise the sustainable and ecologically friendly fishing practices of the Maldives. Will he recognise, at least as a medium-term objective, the desire for the UK to move to zero tariffs and zero quotas with our friends and allies in the Commonwealth?
My Lords, that is another good point made by my noble friend. The issue of a free trade agreement covering the whole of the Commonwealth is the rich diversity of nations in the Commonwealth. Some are large and some are small; some have a certain economic capacity and others have another economic capacity. A free trade agreement with the Commonwealth would of course have to be negotiated over that whole range of countries. It is a wonderful, idyllic idea but in practice it would be hard to achieve.
My Lords, we all understand why the Minister’s department cannot do everything at once, but why is Africa so often at the bottom of the list?
My Lords, I think that is a rather unfair point. I do not have the figures at my fingertips but I well remember a debate that we had just a couple of months ago on the agreements that we have reached with certain African countries. We are making progress. Of course we would all like to make more progress, but at a time of limited capacity you have to prioritise.
My Lords, bearing in mind the size of the Maldives, will my noble friend not allow his warmth to become generosity in this season of good will?
Of course size matters, my Lords, but it is not an easy criterion to apply to free trade agreements.
I understand that since Brexit we have joined the International Commission for the Conservation of Atlantic Tunas. With all our knowledge of sustainability and conservation, are we actually contributing to that organisation? Are we urging it to improve constantly?
My Lords, it is a long time since I did geography at school, but I am not entirely sure that what we are doing in the Atlantic necessarily applies to the Maldives. I do not have full details of the agreement that the noble Baroness refers to, so I will research it and write to her.
My Lords, the Minister will be aware—and we should be proud—of the huge maritime protection zones which we have placed around so many of our overseas territories and which cover hundreds of thousands of square miles. Does he agree that we have insufficient maritime assets to protect and look after them, particularly bearing in mind the House of Commons Defence Committee’s report that said that we have too few ships?
I congratulate the noble Lord on extending the range of this Question to talk about the important matter of the Royal Navy. Of course, I fully sympathise with him on that. Who would not want it to be one of our glorious services?
Remembering that principle not size should govern the Government’s thinking if possible—and remembering, with deep appreciation, Sir David Amess taking a great interest in this subject and inviting me to join him for a meeting with a UK Minister—surely the ability to offer zero tariffs is one of the really meaningful ways to best assist the emerging markets. Could I encourage the Minister to take that on board?
My Lords, when setting MFN tariffs and the UK global tariff, we of course have to balance various interests: UK interests, meeting strategic trade objectives and the maintenance of the Government’s commitment to developing countries. The GSP’s whole purpose is to give preference to developing countries. I repeat: it is the classification of the Maldives as no longer a developing country, which this House should congratulate it on, that means that it is not treated in the same way as developing countries in this instance.
(3 years ago)
Lords ChamberMy Lords, before we progress with Third Reading of this Bill, I would like to make a short statement about our engagement with the devolved Administrations. My officials and I have worked closely and collaboratively with the devolved Administrations throughout the passage of this Bill. We are continuing to discuss the requirements for legislative consent with the Northern Ireland Executive, the Scottish Government and the Welsh Government. I am grateful for their continued engagement on this issue. I beg to move.
My Lords, I start by thanking your Lordships for the constructive approach that has been in evidence throughout this Bill. We have had robust discussions and debates and the Bill is all the better for that. In particular, I thank the noble Baronesses, Lady Hayter of Kentish Town and Lady Blake of Leeds, and the noble Lords, Lord Kennedy of Southwark, Lord Purvis of Tweed and Lord Fox, for the time—sometimes a deservedly hard time—that they have given me.
The Bill will achieve four key outcomes for the UK. First, it will end unequal EU-based arrangements for the recognition of professional qualifications. Secondly, it will help to strengthen the UK’s ability to negotiate and deliver ambitious deals on the recognition of professional qualifications with international partners. Thirdly, it will help professionals to enter new markets. Finally, it will provide smooth working arrangements for recognition of professional qualifications across all four nations of the UK.
I recognise that the Bill did not enter your Lordships’ House in the good state in which it leaves. The experience, diligence and practical knowledge of noble Lords have moulded this Bill into what it is today. Enshrining on the face of the Bill the concept of regulator autonomy in regard to preventing unfit individuals from practising is a landmark event.
I was gratified that the government amendments, the stakeholder engagements and the supporting documents prepared over the summer between Committee and Report were well received. I pay tribute to the noble Lord, Lord Hunt of Kings Heath, and my noble friends Lord Lansley and Lady Noakes for the expertise that they demonstrated throughout our discussions. I thank my noble friend Lady McIntosh of Pickering and the noble Lords, Lord Foulkes of Cumnock and Lord Bruce of Bennachie, for the constructive nature of the conversations that we have had on this legislation. I also thank my ministerial counterparts in the devolved Administrations and their predecessors, whom I have met on five occasions and written to nine times this year concerning the Bill. I remain optimistic and hope that they will give legislative consent to the Bill.
I thank all the regulators to which this Bill applies. We have engaged with them through a variety of avenues, including seven round tables that I hosted. They, other professional bodies and the government departments with which we have engaged have helped to shape and improve this legislation as it has moved through your Lordships’ House and we are extremely grateful for their constructive involvement.
My thanks also go to the officials who have worked so hard to get us to this position. I give particular thanks to the policy team, led by Tim Courtney, who not only overcame the challenge of compiling the list of regulators but, with his partner Cathy, welcomed the birth of their daughter, Penelope, just 12 days ago. On behalf of your Lordships’ House, I wish all three of them the very best. Tim was ably assisted by Hannah Riches, Nick French, and Sarah Mackintosh, while the Bill team was led superbly in shipshape fashion by Jamie Wasley and Jennifer Pattison. I would further like to thank my private secretary, Zack Campbell, for his sterling service on the Bill, and of course the office of the Leader of the House and the Whips, the Office of the Parliamentary Counsel and the clerks in this place. Last, but certainly not least, I thank my Whip, my noble friend Lady Bloomfield of Hinton Waldrist.
My Lords, I thank my noble friend for going the extra mile to put the Bill in the state in which it is. His statement today on his continuing engagement on legislative consent with the devolved Administrations is particularly welcome. In paying tribute to him, his Bill team and my noble friend Lady Bloomfield, I urge him to ensure that we see some fruit from the common frameworks and recognise their importance in implementing what is in not just this piece of legislation but other forthcoming legislation as well. I am personally grateful to him.
I thank the Law Society of Scotland, in particular Michael Clancy, at what has been a very difficult time for him through his illness. I also thank the Faculty of Advocates, of which I am a non-practising member, for its engagement in the round table hosted by my noble friend. I warmly thank my noble friend for all that he has done and I hope that the Bill will have a safe passage through the other place.
My Lords, I declare an interest as a member of a profession, albeit one which is not mentioned specifically in the Bill. I still have some residual concern that, although we welcome the list, the way the Bill is drafted could incorporate professions not listed, because of some obscure entry in other pieces of legislation which have not been picked up. However, my main question is that a lot of work arising from the Bill remains to be done and the UK-EU Partnership Council has an important role to play. I am a keen follower of the Partnership Council, I look at its minutes and its meetings, and this issue, even though it has been identified as a priority, does not appear to have been discussed. Perhaps the Minister can reassure me that the matter will be dealt with with utmost haste.
My Lords, I thank noble Lords for their comments and thanks, particularly to my officials and the Bill team. I say to the noble Baroness, Lady Blake of Leeds, that no one would have known that this is the first Bill that she had worked on, and I am sure that it is the first of many in which she will successfully participate. I have noted the point made by the noble Lord, Lord Davies of Brixton, and, if I may, I will write to him about where this stands in relation to the Partnership Council. I beg to move.
(3 years ago)
Lords ChamberMy Lords, I will speak first to the amendment in my name on regulator autonomy and then respond to my noble friend Lord Lansley’s amendment and that of the noble Baroness, Lady Hayter of Kentish Town.
As your Lordships know, I am a great advocate of the autonomy of our regulators. I have no doubt that regulators are best placed to determine who is fit to practise in their professions. The consequence is that to interfere with this could undermine public confidence in those who provide important services.
The Bill absolutely will not undercut regulators’ ability to make determinations about individuals with qualifications, experience or skills from overseas. I have previously given this assurance to your Lordships. However, picking up the point from the noble Lord, Lord Kennedy, I began to realise that the mood of the House was not to rely on assurances in this area. No matter how eloquently I argued the case for assurances, it would not cut the mustard. I absolutely recognise the continued strength of feeling on this issue. That is why I am proposing to make the protection of regulator autonomy clear in the Bill, and to do so specifically for Clauses 1, 3 and 4.
Protecting the autonomy of regulators is particularly relevant to these clauses, because this is where regulations made under the Bill will most directly intersect with regulators’ existing powers. This could be through empowering regulators to assess individuals with overseas qualifications, enabling them to enter into recognition agreements or placing substantive obligations on them.
These clauses also attracted particular interest from the DPRRC, and your Lordships rightly asked for more assurances. The amendment in my name places two conditions on regulations made under Clauses 1, 3 and 4. The first condition is that the regulations cannot remove regulators’ ability to prevent unfit individuals practising a profession. The second is that the regulations cannot have a material adverse effect on the knowledge, skills or experience of individuals practising a regulated profession. To put it simply, regulations cannot lower the required standards for an individual to practise a profession in the UK or, importantly, part of the UK. Taken together, these two conditions will make sure, enshrined in statute, that regulators will retain the final say over who practises in their profession and that the standards of individuals practising professions are maintained.
I also reassure your Lordships that this does not ask regulators to change expectations where they differ between different parts of the UK with good reason. In the case of devolved regulators, such as the General Teaching Council for Scotland, this would mean the requirements of a regulator for part of the UK.
As I said, in framing this amendment I have drawn inspiration from contributions made in this House and from discussions with regulators. Indeed, I am particularly pleased that it has been recognised by the noble Lord, Lord Fox, who has chosen to put his name to this amendment. I hope that this will be the first of many amendments that I bring forward at the Dispatch Box that the noble Lord, Lord Fox, will feels able to do that to going forward.
I turn now to Amendment 11. Of course, I recognise that my noble friend wants safeguards around how powers that could modify primary legislation are used. That is entirely reasonable. But I hope that my explanation of the regulator autonomy amendment in my name provides reassurance that the Government have listened to both noble Lords’ and the DPRRC’s concerns that regulations made under the Bill will be an appropriate use of the powers in Clauses 1, 3 and 4.
In particular, I know that some noble Lords have questioned how regulator autonomy will be safeguarded in trade deals. First, I repeat what I have said previously: in all negotiations, a key concern for the Government is ensuring the autonomy of UK regulators and protecting UK standards. Now, of course, the regulator autonomy amendment in my name ensures, in statute, that this concern is reflected in any regulations made under Clause 3.
I come to the point that my noble friend Lord Lansley made in asking for an assurance that primary legislation will be used to implement any consequences of free trade agreements that affect professional qualifications. I am not able to give that assurance because, by this Bill making it statutory that we cannot undercut the autonomy of UK regulators and diminish UK standards, it is appropriate that secondary legislation will be used to implement those aspects of future trade deals.
This new clause that I am putting forward means that Clause 3 cannot be used, for example, to require the automatic recognition of overseas qualifications—it would not be possible to do that. Before regulations are made, the Government will engage extensively with regulators on trade negotiations. Earlier today, I spoke about how I have formalised that in the new regulated professions advisory forum, which provides regulators with a mechanism to inform UK objectives for trade negotiations and the implementation of commitments that we make in them. If I have learned anything from the Bill, it is that regulators will not shy away from telling the Government when they have concerns about their autonomy.
Should any of your Lordships remain in doubt about whether powers in the Bill should be used to modify primary legislation, I remind the House that the relevant sector-specific legislation can be primary or subordinate legislation. Why we have these differences is lost in the mystery of time, but there is no consistency at all between professions in this matter. For example, the qualification and experience requirements to be a doctor or vet are set out in primary legislation. By contrast, the requirements for pharmacists or social workers are set out in subordinate legislation. That is why regulations made under the Bill may need to amend both primary and subordinate legislation in order to work for all regulated professions.
To give a further example, Clause 4 ensures that regulators can be authorised to enter into regulator recognition agreements with overseas counterparts. Many regulators already have this power; however, not all do. The Architects Registration Board and the General Dental Council are examples of regulators which do not have this power and may therefore benefit from Clause 4. But their powers are set out in primary legislation, so my noble friend’s amendment would prevent them being authorised to enter these agreements under Clause 4 if necessary. To give a further assurance, of course the Government envisage that regulations made under Clause 4 would be made at the request of the regulator. It would seem unfair to prevent them entering into recognition agreements simply because their powers are set out in one type of legislation rather than another. There frankly is no rationale or sensible reason for this difference. I hope that I have provided the House with the necessary reassurance that we have taken seriously the concerns about the use of delegated powers. For this reason, I ask for the amendment to be withdrawn.
I thank the noble Lord, Lord Kennedy, for speaking to Amendment 15, and the noble Baroness, Lady Hayter, for her contribution. My amendment addresses the same core concerns as Amendment 15. Both amendments —I understand that the noble Baroness’s amendment was very well intentioned—ensure that the Bill does not require regulators to allow those whom they determine to be unfit to practise and that the Bill cannot lower professional standards. Amendment 15, however, would further specify the protection of regulators’ autonomy regarding flexibility in assessment practice. The ability of regulators to make assessments as is most appropriate is already accommodated in the amendment in my name to Clause 1.
Finally, Amendment 15 also seeks to prevent anything in the Bill affecting a regulator’s ability to determine to make a regulator recognition agreement. This point is unnecessary. FTAs—such as the UK’s current deal with Canada—often contain frameworks for agreeing regulator recognition agreements. However, there is no obligation on regulators to enter into these agreements in any deal the UK has entered into. I am concerned that specifying this in legislation could unhelpfully suggest that the Government are unsupportive of such agreements. The Government are keen to support regulators agreeing them, where they wish to do so. In view of my own amendment, I formally ask the noble Baroness not to press her own.
My Lords, I thought that my noble friend gave an extremely helpful response to the debate and explanation of the relationship between the Government’s new clause in government Amendment 12 and Clauses 1, 3 and 4. Regulators in particular looking at this debate will, I hope, look at subsections (2) and (3) of the Government’s proposed new clause and share their view with us. If that holds, it provides a central piece of protection for regulators in future, in relation to all the substantive powers made available through the Bill. I am grateful for what the Minister has brought forward, and what he has said this evening. I beg leave to withdraw Amendment 11.
My Lords, I think no one has had a bigger headache on this list than the Minister himself and the department, but it was a headache, frankly, of their own making.
I am with the noble Baroness, Lady Hayter, on this: I think it should be a separate schedule. We proposed a mechanism in Amendment 19 by which this schedule might be created and maintained. The noble Baroness, Lady Blake, talked about keeping it updated: if it had not been for the scrutiny of your Lordships and the constant harrying of the Ministers, this list would not have been nearly right now. I suspect there are still amendments to go into it. For that reason, we think Parliament should hold on to a regulatory process and, through a statutory instrument, that schedule can be updated.
What we have sought to do in Amendment 19 is not to second-guess where the list is now—because, as the noble Baroness, Lady Hayter, pointed out, that is like catching a knife—but to give the Government a process by which a definitive list may be created, put in a schedule and updated easily and, I would say, flexibly through a statutory instrument. Why? Because this is not just a list of organisations on a website: there are rights and responsibilities that come with being on this list and, indeed, not being on this list. Which professions are going to be scrutinised to see whether demand is met or unmet? This is a really important issue that Parliament should continue to maintain scrutiny over.
The noble Baroness, Lady Hayter, talked about the responsibilities of those organisations, but also the rights—which ones have the autonomy that the Minister’s amendment has granted and which are not part of this list? Furthermore, when the conversations are being had with the devolved authorities, a list gives weight to those discussions and gives a very clear indication of which professions are in and which are not. So, one way or another, putting it in the schedule is really important, as is a way in which that can be flexibly maintained, whereby Parliament maintains its ability to scrutinise that process; because without that scrutiny, where would we be now?
My Lords, I thank the noble Baronesses, Lady Blake of Leeds and Lady Hayter of Kentish Town, and the noble Lords, Lord Purvis and Lord Fox, for their amendments. These amendments return to the debate about the regulators and professions to which the Bill applies, a topic which has covered me in embarrassment at various stages during the Bill’s passage. I admit that it was not our finest hour. Noble Lords rightly asked that the Government fully and precisely articulate who meets the definitions in the Bill.
The Government too, of course, and the regulators want to be clear about who the Bill applies to. It was for this reason that I asked my officials to carry out a comprehensive exercise to determine all those regulators and professions that meet the definitions in the Bill. My officials worked closely throughout the summer with other government departments, devolved Administrations and regulators. I am grateful to all those who contributed. Every regulator that meets the definitions in the Bill has been directly contacted by my officials, and is aware that the Bill applies to them. My officials have also contacted those regulators that we no longer consider the Bill applies to. I have written to my counterparts in the devolved Administrations to confirm the professions and regulators that operate in those parts of the UK. I am pleased to report that they have fully co-operated in this exercise. This extensive engagement culminated in the drawing up of a list of regulators and professions affected by the Bill, which we published on GOV.UK on 14 October. This exercise has provided the additional clarity rightly demanded by this House. The Government remain absolutely committed to regularly updating a list of professions and regulators to which they consider the Bill applies, and to keeping that list in the public domain.
I have also asked my officials to ensure that the assistance centre will also publish the list and will signpost professionals to all the professions and regulators identified on it. This will be part of our future service requirements and our contractual requirements for the assistance centre. Building on our work with regulators to prepare the list, my officials will continue engaging with this network of regulators through a variety of avenues to ensure they are kept updated on our work in this area. In answer to the noble Baroness, Lady Hayter of Kentish Town, I say that it would not be sensible to use the new forum that we are setting up as a means for doing this. The forum would be so large that we would probably have to go to Rome to use the forum there for its meetings, and it would frankly be unwieldly to have a forum of that size. That forum is going to have a cross-section of all the regulators on it. We will refresh that cross-section from time to time to make sure that all regulators from all parts of the UK have a chance to put their views. Of course, we will have other networks where we will engage through a variety of avenues to ensure that regulators are kept updated on our work in this area.
Perhaps picking up a point made by the noble Lord, Lord Fox, I say that the regulators will of course want to know that they are on this list, because a regulator who is covered by the definition gets the benefit of regulatory autonomy. There is therefore a positive reason for a regulator wanting to be included.
On that note, in the event that I happened to be the chief executive of a regulator that was not on that list, it would help to know what the process was by which one sought to join the list or, indeed, to be taken off it. If we are not going to have a schedule as we discussed, the process by which a regulator puts itself in the frame or seeks to put itself in the frame would be really important, as well as publishing the list. Discussing that process would be useful.
Of course, the interesting thing is that this process derives entirely from the legal definition of a regulator that is governed in law. It is not a matter of grace and favour to say whether a regulator is included or not; it is a matter of fact as to whether the regulator statutes make it a regulator engaged in law.
It is more about having to draw attention to the fact that they believe that they are within the law. I cannot imagine that the department will have enough resources to continually trawl the horizon and find them, so individual organisations may find themselves asking how they go about getting on the list.
I think the simple answer is that they should write either to the Minister responsible, whoever that is—if it is me, of course, I will attend to that—or to the senior officials within the department or within the devolved Administrations. This will obviously be something that officials will monitor and keep up to date.
(3 years ago)
Lords ChamberMy Lords, it is a pleasure to be back debating the Professional Qualifications Bill on Report. I thank noble Lords for continuing to meet my officials and me over the Summer Recess, and I think we shall see the fruits of those meetings as we progress through this stage of the Bill today.
May I also take this moment to wish many happy returns to the noble Lord, Lord Kennedy, who I understand is celebrating his birthday today? We all find our pleasures in different ways, but I can think of no better way to celebrate one’s birthday than on Report on this Bill.
I thank noble Lords for their careful consideration of this Bill and for the positive reception accorded to the previous iteration of this amendment in Committee. In particular, I thank my noble friend Lord Lansley for his careful and helpful consideration of the government amendment in Committee. I also thank him for his own amendment to Clause 1.
As I have said on a number of occasions, regulator autonomy is crucial to maintaining our world-class professional standards and high-quality services, and the public’s confidence in them. This includes, of course, making sure that regulators can take into account all relevant factors when considering applications for recognition. Since Committee, my officials and I have engaged extensively with regulators and have taken legal advice on how to best articulate this in Clause 1. There was consensus from Peers in Committee, and regulators throughout our engagement, that the amendment I previously proposed was helpful. However, there was recognition—and I am happy to acknowledge this—that we could make it yet clearer. I am therefore presenting a new amendment that provides three important clarifications.
First, the amendment would add to Clause 1 a new subsection (3A)(a) stating that other conditions, which could, for example, include regulatory criteria required to practise, can be specified in regulations under Clause 1(1). This is regardless of whether those criteria are connected to the specified UK qualifications or experience. These criteria must be satisfied before an individual is treated as if they had the specified UK qualification or experience.
Secondly, the amendment would add to Clause 1 new subsection (3A)(b). This changes how the conditions in Clauses 1(2) and 1(3) are interpreted. It provides legislative assurance that when regulators are obligated to put in place a process to assess individuals under Clause 1, they can assess applicants’ knowledge and skills on whatever basis they consider appropriate.
Thirdly, the new placement of the word “only” in new subsection (3A)(b)(i) makes it clear that a regulator can consider only overseas qualifications or experience, or—this is important—on any other basis it considers appropriate. This could, for example, include both overseas qualifications and experience, and the results of any test or assessment carried out in the UK. To avoid ambiguity in how this amendment is read, an illustrative example is also now included in brackets in proposed new subsection (3A)(b)(ii).
As I set out in Committee, regulators, including the General Medical Council and the Nursing and Midwifery Council, welcomed the previous clarificatory amendment to Clause 1 tabled in my name. I have continued these discussions in recent months and tested this revised amendment with them. They appreciated the clarifications that this amendment provides.
I have also carried out extensive engagement with other regulators. For example, I met with the Bar Council to discuss Clauses 1 and 2. I am happy to reiterate that the power in Clause 1, taken alongside the condition in Clause 2, does not act so as to remove powers from regulators where they already have them. I also met with representatives from the Education Workforce Council to discuss the Bill. I would like to reassure them that it is highly unlikely that the council would be specified in regulations under Clause 1. This is because, quite simply, as I understand it, they already have a global route in place to recognise overseas qualified teachers, underpinned by express legal powers in Welsh legislation, to help meet the demand for the services of their profession.
Clauses 1 and 2 are not intended to affect the existence or scope of any existing powers of a regulator in relation to recognition of overseas qualifications or experience. They are not intended to, and do not, constrain in any way a regulator’s ability to recognise overseas qualifications or experience derived from any other legal source.
Taken as a whole, this means that the amendment provides legislative assurance that the Bill will equip regulators with the tools that they need to make a thorough and rounded assessment and that, in so doing, the UK’s world-class professional standards will be maintained. I thank my noble friend Lord Lansley for his input, and I beg to move.
My Lords, I am most grateful to my noble friend for his introduction to his amendment and for speaking to this group, and for his very kind words about our very constructive discussions. I reciprocate by saying how much I have appreciated the discussions he and I have had and the support of the Bill team in bringing forward a number of amendments on Report which respond directly to the debates that we had in Committee. And government Amendment 1 is exactly such an amendment.
As my noble friend quite rightly said, we had general agreement that there was a need for the national authority, when making regulations under Clause 1, to do so in ways that enabled somebody with overseas qualifications and experience to be brought into the UK profession on the basis of those or other relevant qualifications or experience, or other factors.
The difficulty with the original Amendment 10, if colleagues can remember back to Committee, was the nature of the word “only” in that context, which ran the risk of being interpreted as meaning that it would either be on the basis of overseas qualifications and experience or on the basis of other relevant and appropriate factors. We did not want that to be the case; we wanted what my noble friend has put into Amendment 1, which says at proposed new subsections (3A)(b)(i) and (3A)(b)(ii) that it will be
“on the basis only of the overseas qualifications or overseas experience … or … on such other basis as the specified regulator considers appropriate”.
That is clarified with the words:
“(such as on the basis of the overseas qualifications or overseas experience… together with the results of any test or other assessment given by any person).”
To keep it simple, if, for example, a language requirement needed to be specified, it could be specified as an additional requirement by the regulator and then be combined with the overseas qualification or the overseas experience to give, in total, the appropriate basis on which to be admitted to the UK profession. For my part, I am very happy that the Government have brought forward the amendment in this form.
The purpose of my Amendment 2 is to make it clear that a UK regulator may have requirements for entry to a profession which extend beyond the relevant UK qualifications and experience. So while somebody from overseas might have something that is directly comparable to that qualification or experience, that is not the sum total of the professional requirements to be on many professional registers. Many regulators also examine people’s background, experience and suitability, and they look to fitness to practice requirements. We do not need to dwell on this at length, just to say that there is potentially a gap between qualifications and experience in a formal sense and fitness to practice in its total sense. If regulators need that gap to be filled, Amendment 2 says that they should be able to do so; the conditions should be specified in a way that enables that to happen.
Looking at it, I am content that, as long as the appropriate national authority consults the relevant professional regulators when making regulations, the power none the less exists in Clause 1 to make the condition one that extends beyond qualifications and experience into all the fitness to practice requirements that might be applied by a regulator in this country. That being the case—and we have the benefit of the consultation requirements that we are going to come on to later, which give us further assurance on this—I think we are in a position where the conditions in Clause 1 would be wide enough without the benefit of my Amendment 2.
In my own defence, I tabled Amendment 2 back in early July, so I am slightly defending Amendment 2 in the light of having not, at that point, seen all the amendments that are coming forward, not least from my noble friend. That being the case, I think we can be fairly confident that Clause 1 will be robust enough if need be, so I have no intention of pressing Amendment 2.
My Lords, I first thank the Minister for his kind wishes on my birthday. Where else would I want to be but at the Dispatch Box responding to the debate? This will be my only appearance on the Bill today. I did think when I became Opposition Chief Whip on 1 June that the House had earned a rest from listening to me speak at the Dispatch Box. People will have had views as to whether that was a good or bad thing, but it does not seem to have worked out that way; I am still here.
I feel at a bit of a disadvantage, having looked back at the debates and seen the quality of the contributions of Members who have spoken with vastly more experience than I have on these matters. At this point, I particularly want to pay tribute to my noble—but also dear and good—friend Lady Hayter of Kentish Town for all her work for the Opposition on this Bill and as Deputy Leader of the Labour Lords. We have been involved in several battles over the years—always on the same side, I am pleased to say—and I look forward to her work in her new role as chair of the International Agreements Committee.
Government Amendment 1 seeks, as we have heard, to address the concerns that we raised in earlier debates and which, as the noble Lord, Lord Lansley, said, he put into his amendment. In that sense, we as the Opposition are very happy with what has been proposed by the Government and we look forward to the next steps. In particular, I saw the point he made about the need to address those important clarifications—to ensure that we give legislative assurance to regulators that they will have the tools they need to ensure that overseas qualifications are effective, recognised and appropriate for the work that people do in our jurisdiction. I will leave it there, and I look forward to the Minister’s response.
My Lords, it is even more of a pleasure to do this Report with the debate having started in such a positive way. I thank noble Lords for that and say unreservedly that the scrutiny and discussions that I have had with noble Lords over the last few months have improved the Bill to the point that it has reached today.
It is a great pleasure to welcome the noble Lord, Lord Kennedy, back to the Front Bench, perhaps for the last time, and, of course, I have not seen the last of the noble Baroness, Lady Hayter of Kentish Town; I look forward to dealing with her in her role as chair of the IAC. If I may say so, I have never seen the noble Baroness lacking oomph in any way whatever, and I am sure that will be the case in her new role. I thank, in particular, my noble friend Lord Lansley for his input into this amendment. The eagle-eyed scrutiny that my noble friend gives to the legislation in front of this House always ends with improvements being brought forward.
I can completely reassure the noble Baroness, Lady Finlay of Llandaff, that fitness to practise sits absolutely with the regulators—we will be reaffirming this perhaps even more strongly when we discuss regulatory autonomy later on—and that all four nations will of course be considered on their merits. There is no desire whatever to impose any form of uniformity where it does not exist. With that, I thank noble Lords for the comments that have been made and beg to move my amendment.
Yes, absolutely. But if he cannot, I know that he knows it is a wonderful place and I enjoyed his speech very much. I also agree with the key points made by the noble Lord, Lord Bruce, that it is different in Scotland. We recognise that. So I am very pleased with the amendment from the Government Front Bench and I look forward to the Minister’s response.
My Lords, I will speak first to the amendment in my name on consulting with regulators, and then respond to the other amendments in this group. A later group deals specifically with consulting the devolved Administrations, and I will leave the points raised by noble Lords in relation to that and to LCMs until then, which is the appropriate place. That would include the points made by the noble and learned Lord, Lord Hope of Craighead, who spoke from the perspective of the Constitution Committee. I will write to him as he requested, but I do not recognise at all the description he gave of the process I have undertaken with the devolved Administrations. I will come back to this, but nobody could have reached out more than I did, or held more meetings with my counterparts in the devolved Administrations. The schedule of the meetings that my officials have held with the devolved Administrations runs to several pages, and I will make sure that I give that information to the noble and learned Lord when I write to him.
Before my noble friend sits down, will he permit me to pursue the issue raised in a more general regard by the Law Society of England? It is concerned that legal services can be dropped too easily from current and future negotiations. I used Australia and New Zealand as a model, but can he give us an assurance that, in his view, that will not happen?
My Lords, I am absolutely happy to give that assurance to my noble friend. Legal services are a very valuable part of the export of services from the UK. This is something we absolutely seek to protect and extend in free trade agreements, rather than in any way seeking to curb. I am very happy to give my noble friend that complete assurance.
I thank the Minister for his reply, and my noble friends Lord Foulkes and Lord Kennedy, the noble Baroness, Lady McIntosh, the noble Lords, Lord Bruce, Lord Lansley and Lord Purvis, and the noble and learned Lord, Lord Hope, for their comments. The noble Baroness, Lady McIntosh, and my noble friend Lord Foulkes both mentioned the Law Society of Scotland, and I think my noble friend mentioned Michael Clancy. Maybe those of us who know him can do a shout-out for his return to full health.
The Minister is right to say that we will discuss the main part of consultation with the devolveds in a later group, but we should point out two things. First, the government amendment will automatically mean that the relevant devolved regulators would be consulted, but also, in response to my noble friend Lord Foulkes’s comment about the Scottish Government not always being willing to consult, it will require them to consult with their relevant regulators. Maybe that is why they are withholding their consent Motion—I am not sure.
The problem I still have is why the government amendment does not cover the regulations in Clause 2—or actually Clause 10, which I had not noticed before. Clause 2 is quite important. In responding, the Minister used the words—I hope I got them down correctly—that it would be a duty to consult regulators “shaping any regulations made under this Bill.” He did not use the words “shaping regulations under certain parts of this Bill”, but “shaping any regulations made under this Bill”. However, his amendment does not do that. My concern is that, if there is no duty to consult, then there might be no consultation.
The Minister then said, “Oh, well, it doesn’t really matter because they may be very minor”—those were not quite his words; they were far more correct than that. Actually, if you read his amendment, it is a requirement only if
“the regulator is likely to be affected by the regulations”.
So if it was such a minor regulation that did not affect a regulator then it would be excluded from the duty anyway. I am slightly worried about that.
I wonder whether the Minister would agree to some further discussions about Clause 2 and why there is no consultation on it. Perhaps he might even be willing for us to bring this back at Third Reading if it looks as if it is actually an error and there is no good reason to exclude regulations made under Clause 2, which is the big one for some of the regulators—this is the one about whether there is a shortage of professionals. I do not know whether the Minister could indicate assent to some further discussions, so that we could clarify this at Third Reading.
I believe the reason why we are not consulting on Clause 2 is that it has no regulation-making powers in it. The regulations dealing with the whole question of shortages are made under Clause 1, where there is a duty to consult. I stand ready to be corrected if anybody wants to look at the text of the Bill, but the regulations that would relate to Clause 2 are made under Clause 1, and there is a duty to consult on that clause. I hope that completely answers the noble Baroness’s question.
The noble and learned Lord, Lord Hope, would be looking at me now and saying, “Any good barrister knows not to ask a question to which you do not know the answer”—I just broke that rule. In the circumstances, I beg leave to withdraw the amendment.
My Lords, I am conscious of the time, so I will not speak for long. A number of important points were raised in this short debate. The noble Lord, Lord Lansley, made a clear and compelling case for his amendment and I hope that the Minister takes up his challenge and sets out very carefully and clearly the reasons why it will not be necessary to test the opinion of the House. Amendment 6, in the names of the noble Lord and my noble friend Lady Hayter of Kentish Town, sets out, in proposed new paragraphs (a) to (f), points that are absolutely right and need to be taken into account. I will leave my remarks there, and I hope the Minister will respond carefully so that the noble Lord will not need to test the opinion of the House.
My Lords, I thank my noble friend Lord Lansley for his amendments, which would alter the unmet demand condition in Clause 2(2). First, I give a complete reassurance to the noble Baroness, Lady Hayter of Kentish Town, that the amendment I will bring forward later about regulator autonomy absolutely preserves the independence of the legal profession and prevents any dilution of standards. That amendment, if accepted by the House, completely puts the determination of standards in the hands of regulators and is not something the Government can override in any way.
My noble friend’s amendments require the appropriate national authority to consider a specific set of factors to determine whether the unmet demand condition is met. I completely agree that the appropriate national authority should be transparent when determining whether the unmet demand condition is met. I find it hard to disagree with the factors set out in the amendments, because they are likely to form part of a sensible basis for making this determination for many professions. Your Lordships will have seen the recent publication referred to by the noble Lord, Lord Purvis of Tweed, explaining how the unmet demand condition might be determined. That factsheet sets out that this assessment should be tailored to the circumstances and context of each profession.
Appropriate national authorities are best placed to determine which factors to consider, according to the individual circumstances of a profession. For example, a devolved Administration will be best placed to determine the factors relevant to assessing whether there is unmet demand for a profession in an area of devolved competence, and it is important that they are able to decide how best to make such determinations and form their own views on which factors are most relevant to their own situation. Indeed, I absolutely agree that some of the factors proposed by my noble friend are good practice, although they may not be essential in every case to understanding unmet demand. For example, the views of professional bodies and workforce modelling may or may not be relevant, but it should absolutely be for the appropriate national authority to take those matters into account if it so determines. Having to work through, in a statutory sense, every factor on this list could cause delays and unnecessary administrative burden when there is an urgent need for regulations and the condition, as drafted, is clearly met.
However, I hope that it gives my noble friend complete reassurance when I say that the Government plan to publish guidance to support appropriate national authorities in their determination of unmet demand, and I undertake that the factors in his amendment will be included and explained in any such guidance. That answers, at least in part, the point made by the noble Lord, Lord Purvis of Tweed. I note that one of the factors listed by my noble friend includes whether the profession is on the occupation shortage list; that will be covered in the guidance.
Immigration is a different matter from the recognition of professional qualifications. The Government have introduced a new skills-based immigration system which treats people from every part of the world equally. I hope that a skills-based immigration system would properly recognise the quality of professionals seeking to practise their profession, but it is outside my remit to go further into the immigration system, as I hope the noble Lord appreciates.
On that last point, I am interested to know, if the appropriate national authority has determined that there is a shortage but that profession is not on the Home Office’s list, which trumps which?
I think these are both looked at from different perspectives, so I do not think it is a question of which trumps which; the question is “What is the appropriate decision to come to?”, looking at it from the perspective either of immigration or of considering professions or occupations where there are shortages.
I think, on immigration matters, the Home Office is the primary decision-maker.
I believe that including these factors in the guidance will improve the clarity of decision-making by appropriate national authorities that my noble friend’s amendment seeks to achieve. I am grateful for the considerable thought that he has put into this.
Finally, my noble friend has questioned whether it is appropriate for a national authority to consider whether delays and charges are unreasonable. After consideration over the summer, and I have thought about it a lot, I believe that this is a useful qualifier. Retaining “unreasonable delays or charges” in the unmet demand condition ensures that a national authority considers whether there is consumer detriment—this was a matter that the noble Baroness, Lady Hayter, was concerned about—as a result of the delays and charges to access a profession’s services. I hope that your Lordships can agree that while there is merit in the factors set out in the amendment, it is not desirable to fetter, in a statutory sense, appropriate national authorities’ discretion by enshrining these in the Bill. As I have said, these are sensible factors to take into account, but it is more appropriate to include them in guidance, and I commit to do this. As such, I ask for the amendment to be withdrawn.
My Lords, I am most grateful to my noble friend and to the noble Baroness, Lady Hayter, and other colleagues who participated in this short debate. We do not necessarily need to change the legislation for people to be able to look at our debates and what my noble friend has been able to say from the Dispatch Box by way of clarification and, in due course, to look at the guidance to understand the nature of decisions being made. I hope it will be clear to people in future that delays and charges are an important factor but not the only factor; other things may go to help construct it. If we were starting the drafting process again, we might draft it slightly differently but, given that we are where we are and with the assurances that my noble friend has been able to give, I certainly beg leave to withdraw the amendment.
My Lords, before I start, I will thank the noble and learned Lord, Lord Hope of Craighead, for the courtesy of his comments. I assure him that I took no offence at the words that he used in the earlier group. I thank the noble Baroness, Lady Blake of Leeds, for her Amendment 14, which I will address first. I unreservedly agree with the noble Baroness that the Bill has been greatly improved during its passage through the House, and I commend and thank noble Lords from all sides of the House for the work that they have done.
This amendment from the noble Baroness provides for the Secretary of State to consult appropriate persons. It then requires the Secretary of State to seek, on a time-limited basis, the consent of all the devolved Administrations before making regulations under powers in the Bill. If that consent were not forthcoming within one month, the UK Government could proceed to make the regulations without it, but would be obliged to publish a statement setting out why they had proceeded without consent.
I appreciate that this amendment recognises that there are occasions when the Government may need to make regulations without consent. It is a best-efforts approach, which requires the Government to evidence that they have made these efforts. However, as I have set out previously, it is absolutely not the Government’s intention to make regulations in relation to matters on which the devolved Governments could legislate without seeking their views. I have put this assurance on record many times, including in correspondence with my ministerial counterparts in the devolved nations. Perhaps because I am relatively new to the House, I was not tarnished by some of the discussions on the internal market, and I think I have maintained good and constructive relations with my counterparts in the devolved Administrations.
I am not convinced that the proposed amendment is preferable to the Government’s own, more flexible, proposals. However, I agree that working with the devolved Administrations is the way to make this Bill operate best for all our UK nations. That is why I wrote to my devolved Administration ministerial counterparts ahead of Report, offering to put a duty to consult with devolved Administrations on the face of the Bill. The offer was made to them and it also included a commitment to publish a statement setting out whether and how the regulations take account of any representations made in response to the consultation. I can give the House an assurance that we will continue to engage with the DAs, and if securing the LCMs, which is something that I would very much like and feel committed to do, means that we need to amend the Bill, this is something that we could consider. I am happy to give that assurance to the House.
Noble Lords will also be aware that the amendment tabled in my name on a duty to consult with regulators extends to regulators in the devolved nations; so, in addition to the consultation we would normally expect to undertake with the devolved Administrations, whenever appropriate we will be engaging directly with those in the devolved Administrations who are closest to the issues before making regulations.
I will continue to engage with my counterparts in the devolved Administrations to persuade them of the merits of the Government’s approach. If noble Lords from all sides of the House wish to join me in trying to convince them of this, I would very much welcome that. A Bill such as this, which provides benefit throughout all four nations of the United Kingdom, would be best dealt with on a consensual basis between the devolved Administrations.
I am very interested in what the Minister said, and the House will welcome his initiative. In order to help that process, would the Minister consider placing his letter to the devolved Administrations in the Library, along with any reply that comes? Then we would at least know what the current situation is—but I welcome the Minister’s initiative.
I thank the noble Lord for his welcome. Let me consider that: I am not prepared to agree to that right away, because these letters, of course, contain a number of matters that are the stuff of correspondence between one part of the United Kingdom and another. There is nothing suspicious about my saying that, but, if I may, I will just review the letters to make sure that I am not breaking any confidences with the devolved Administrations before agreeing to do that. I repeat, however, that I will continue to engage with my counterparts in the devolved Administrations to persuade them of the merits of the Government’s approach.
I turn now to the next amendment, tabled by my noble friend Lady McIntosh of Pickering, the noble Lords, Lord Foulkes of Cumnock and Lord Bruce of Bennachie, and the noble and learned Lord, Lord Hope of Craighead. This seeks to place a requirement to consult relevant persons and then seek the consent of the devolved Administrations before making arrangements for the assistance centre. With all respect, I believe that this is taking a sledgehammer to crack a nut. The Government will, of course, ensure that provisions for the future assistance-centre service work for all four nations of the UK, and the service will be designed to complement the roles of regulators and professional bodies. No issues have arisen from the approach taken by the UK Government in providing a single centre operating across the whole of the UK to date. This centre has been in operation for well over a decade, and these issues have never arisen during the course of the last 10 years. Of course, it would not be in line with normal practice—it would not be expected—for the UK Government to seek the consent of the devolved Administrations before tendering for, or launching, a support service. The Government regularly consult devolved Administrations on these things in the course of business, but I fear that introducing this as a statutory requirement here would create a significant and frankly unnecessary precedent.
Much interest was shown in the assistance centre in Committee. I have often felt at times that the interest shown in the assistance centre was out of kilter with the actual, rather restricted body that it is. As I have said previously, it will offer a very modest, targeted service, similar to that already provided by the UK Centre for Professional Qualifications. A heavy-handed consent requirement therefore feels disproportionate for this. Many regulators and professional bodies already have productive working relationships with the current assistance centre and have welcomed its continuation in the Bill.
I turn now to the amendment tabled by the noble Baroness, Lady Blake of Leeds, on common frameworks. This amendment seeks to ensure that nothing in the information-sharing requirements under Clause 9 will prevent the establishment or operation of a common framework agreement relating to professional qualifications. Noble Lords will recall that this issue was raised in Committee. Again, I say without reservation that I share the House’s firm commitment to effective common frameworks.
I previously explained that there had been a hiatus in the development of the recognition of professional qualifications common framework while work paused during the election period in Wales and Scotland, but I am very pleased now to be able inform the House that, since Committee, officials across all four UK nations have made very good progress on a common framework on the regulation of professional qualifications to ensure a collaborative approach on powers that have returned following our exit from the European Union and that intersect with devolved competences. This has included two workshops and correspondence that focused on co-design, with officials from all the devolved Administrations, following which my officials continue to drive development of the framework, in line with these discussions.
In addition to co-operation in relation to returning EU powers, the Government have offered, if the devolved Administrations would find it helpful, to include proposals on consultation and collaboration on the operation of the Professional Qualifications Bill, once enacted, in that framework. Let me be clear, in answer to the noble Baroness’s concerns and those expressed by the noble Baroness, Lady Randerson, that the provisions of the Bill in no way cut across the establishment or operation of a common framework. This is a separate process. As the common framework will be non-legislative in nature—a proper consensus developed with the devolved Administrations—I worry that referencing the common framework in the Bill may be confusing and could hinder rather than help the development of the common framework.
The development of the common framework is a collaborative process, not one that the Government can or should impose. However, as I have outlined, this process is now reinvigorated, and I am confident that the professional qualifications common framework can be agreed in provisional form by the end of this year. I will of course keep noble Lords in touch with this to make sure that those who have spoken in the debate in relation to this are kept properly informed of its progress. I hope that I have been able to address the concerns of this House in relation to this, and I ask that this amendment is withdrawn.
I am grateful to my noble friend for his response and to all those who have spoken. I am a little concerned, because we have not really got to the nub—unless I have missed it—of why there is no legislative consent Motion from the devolved Administrations, so that is still a source of concern. It leaves open the question whether, if my noble friend was minded to bring forward a government amendment in connection with Amendment 14 in this group, the Government would be minded to do that in the other place after the Bill has left this House. That would be a concern.
I am a little disappointed that the Minister said that it would set an “unnecessary precedent” to consider accepting Amendment 10 in my name and those of others. I argue that it would not set an unnecessary precedent, and it is certainly not seeking to introduce a layer of complexity or bureaucracy. The Government’s fact sheet says:
“Professionals and businesses can find it difficult to navigate the UK’s regulatory landscape. They need clear and accessible information about how professional qualifications can be recognised. Improved transparency and information-sharing between regulatory counterparts, where appropriate, will support better decision-making and more informed use of the framework.”
That is precisely why I argue that Amendment 10 is needed in this regard, because if you are not going to consult and seek consent from the devolved Administrations, at which point will the regulatory counterparts and the devolved Administrations have the right to make their case?
I listened very carefully to what my noble friend Lady Noakes said about her hesitation over the assistance centre. The Minister, my noble friend Lord Grimstone, went on to say that it has been in existence for 10 years. In that time, it was probably not needed, because if I was able to find out how to practise in another European country, many of my kinsfolk—Scottish advocates, Scottish lawyers, English lawyers, English nurses or whatever—were probably likeminded to do so too. But we have now left the European Union and are no longer covered by that umbrella of free movement.
So I will not press my amendment this evening for the simple reason that, if the House is going to take a decision on an amendment, the amendment in the name of the noble Baroness, Lady Blake, may well cover the same clause that I seek to cover because it would cover all clauses for which regulations are required. So, at this stage, I thank my noble friend for the reassurances that he has given. I hope that he commits to bringing forward a government amendment, and I beg leave to withdraw my Amendment 10.
My Lords, I beg leave to answer one of the points made by my noble friend Lady McIntosh. If she wishes to find out why LCMs have not been granted, I suggest that she addresses that question to the devolved Administrations, because I have been trying. I repeat what I said earlier: we will continue to engage with the DAs, and if securing the LCMs means that we need to amend the Bill, this is something that we could consider.
(3 years ago)
Grand CommitteeMy Lords, I thank the noble Lord, Lord Popat, for raising this important question today and giving me the opportunity to share the Government’s vital work with countries across Africa to increase trade and prosperity. I will speak later, if I may, about the excellent work that my noble friend does in this area. I also thank all noble Lords who have contributed today for the expertise that, as always, has been on display.
We already have strong trade and investment relationships with countries across the continent, but the Government are committed to going further. I very much support the pressure that noble Lords put on us in this area. I particularly share the aspiration that my noble friends Lord Popat and Lord Hannan of Kingsclere have in this area. I also absolutely recognise the point made by the noble Viscount, Lord Waverley, about the opportunities available to us in the francophone area, and I will ensure that those are followed up. The long-term opportunities that exist in Africa are truly staggering. By 2050, one in four global consumers will live in Africa and we are committed to increasing trade between the UK and Africa and between Africa and the global economy.
In January 2020, at the UK-Africa Investment Summit held in London, the Prime Minister set the ambition for the UK to become Africa’s investment partner of choice. As the UK’s Minister for Investment, I endorse that aim. The summit laid the foundation for new partnerships between UK and African nations based on trade, investment and our shared values. We have announced £6.5 billion of investment deals, with a further £8.9 billion of commitments at the time of the summit. I am pleased to say that despite the pandemic—and we do not always see this—not one of these deals has been lost since then. In January this year, as a follow-up, we held the Africa Investment Conference to mark the anniversary of that summit. The conference brought together 3,000 delegates, including over 1,000 business delegates from more than 40 African nations, and north of 1,000 business representatives from across every region and nation of the UK. I do not think there can be any better evidence of the opportunities than the fact that businesses small and large came together at that time. The noble Lord, Lord Grantchester, is of course absolutely right that these conferences mean nothing without follow-up afterwards, and part of my role is to ensure that that is done.
I hope I can reassure the noble Viscount, Lord Waverley, that the DIT’s Africa network plays a vital role in helping UK businesses seize opportunities in African markets. It supports commercial projects through its expert advice to companies and works with local officials to encourage UK investment. I believe that our newly independent trade policy is enabling us to reduce barriers to entering African markets and offers increased access to the UK. As we have heard, we have already negotiated nine trade agreements covering 16 countries across Africa that represented almost £22 billion of bilateral trade in 2019. My noble friend Lord Hannan of Kingsclere gives way to no one in his enthusiasm for using free trade agreements to bolster Commonwealth ties, and I really share his aspirations in this area. I see free trade agreements with our Commonwealth friends as a way of rejuvenating and expanding the role of the Commonwealth going forward.
Our generalised scheme of preferences is reducing tariffs on imports from developing countries, further enabling trade. A public consultation on our proposed new developing countries trading scheme—DCTS—has just closed. Policy options are being developed with the aim that the new DCTS is simpler, more generous and less bureaucratic than our current system. I share the belief of the noble Lord, Lord Purvis, in the importance of this; he has raised it with me in the past. My noble friend Lord Hannan is completely right that while removing trade barriers is of course a Government-to-Government activity, the heavy lifting in this area has to be done by the private sector and it is our job to facilitate this. The noble Lord, Lord Mancroft, is also right to stress the importance of door opening in this area.
I will quickly turn back to my noble friend Lord Popat, who is of course one of our 11 trade envoys in Africa, appointed by the Prime Minister. They enhance our trade with the continent by building on the UK’s existing relationships in these markets and joining trade missions to identify export opportunities. Nobody is more hard-working or conscientious in this area than my noble friend Lord Popat in his role as the trade envoy to Uganda and Rwanda over the past five years. Today, we heard some of the practical outcomes of his work, and I thank him for that on behalf of the Government.
Supporting economic growth in Africa is a key priority for the Government. Our vision is to do this through a trading partnership geared towards a safer, greener and healthier continent, one that is ever more resilient to shocks and stresses. We are determined to support countries across the continent to build back better from the pandemic. As I said earlier, the private sector will have a key role to play here, but the Government will be on hand to support exports. I listened very carefully to the noble Lord, Lord Chidgey, who of course spoke from real practical expertise in this area. I think I probably detected a fellow Land Rover enthusiast.
We are launching a refreshed export strategy designed with the needs of our business at its heart. We want to give businesses the flexibility, resilience and capabilities that they need to thrive in this fast-changing global environment. Picking up the point made by the noble Lord, Lord Grantchester, I will ensure that opportunities in Africa are fully taken account of in that strategy.
Demand for UK Export Finance in Africa is booming. It supported more than £2 billion-worth of projects in Africa in 2020-21, which is of course helping us to deliver on our strategy to make the UK Africa’s trading partner of choice. Of course, it is absolutely right and proper that many of these projects have a sustainable impact on the continent. For example, a UKEF loan to the Ghanaian Government will help UK-based Aqua Africa to provide clean drinking water for 225,000 people across the country. However, I will pass on my noble friend Lord Mancroft’s points about the importance of speed and the reduction of bureaucracy as far as possible in this area.
In investment, as many have retracted from Africa, I was very pleased to see that, last week, the CDC Group, our development-oriented private equity business, together with DP World, announced a £1.7 billion partnership to accelerate Africa’s trade potential and improve the economic prospects of millions of people, starting in the ports of Berbera, Dakar and Sokhna. The CDC, working together in partnership with others to bring sustainable investment opportunities to Africa, will become increasingly important. I know that my right honourable friend the Foreign Secretary shares my aspirations in this.
African Governments need to create conditions that attract the private sector and provide a stable environment for investors. We all know that a better-educated, healthier workforce will create the entrepreneurs, start-ups and consumers of tomorrow. Improving access to education and health will help us to deliver the transformational change that the African continent needs to secure growth in the future.
We have heard today many references to the African continental free trade agreement. I agree completely with the noble Lord, Lord Purvis, about the opportunities that this presents. We are pleased to be supporting the secretariat with some practical help. When it is fully implemented, this agreement stands to boost intra-Africa trade by up to one-third, establishing a common African market with a combined GDP of £2.5 trillion and a population of 1.3 billion people. I am very pleased that, in September this year, Ministers signed a memorandum of understanding with the secretariat of the ACFTA, to continue to provide support. It is a testament to our commitment to the continent that the UK is the only non-African country to have entered into such an agreement.
Throughout the G7 presidency we are working with other development finance institutions to increase ambition on investment into Africa in the post-Covid world. I have already had various approaches from sovereign wealth funds elsewhere in the world, to see whether they can join us in this important initiative.
Finally, I emphasise that all the previous steps—we often say this in our House—need to be underpinned by our concern for the environment. Investment and development finance will increasingly flow, and should flow, to those who have clear, sustainable growth plans. COP 26 will provide an opportunity to champion a green economic recovery from Covid-19 across the continent and the rest of the world.
I truly believe that this Government and British business have a significant role to play in Africa’s brighter future. I believe that it is only through trade and investment that countries across Africa can continue to grow and prosper. I am happy to meet the noble Lord, Lord Purvis, to discuss further how we can push prosperity in Africa.
I have tried to deal with as many questions as possible that were raised today. I am conscious that, as always, I have not answered all those that the noble Lord, Lord Grantchester, raised. If I may, I will write to him on some of his specific questions.
I reassure noble Lords that the UK will be on hand to support African countries every step of the way. I must thank again my noble friend Lord Popat for being such a champion for African trade and industry and for allowing us to debate this important topic today.
My Lords, I apologise for intervening but I would like to draw attention to Emeka Anyaoku, who was Secretary-General of the Commonwealth. He emphasised the importance of a consultative process at the invitation of countries in Africa to consider, sector by sector, what can be done between those sectors in African countries and their opposite number in this country to see how we can work together. I want to put that on record.
I thank the noble Viscount for that intervention. I will certainly make sure that it is recorded.
(3 years ago)
Lords ChamberTo ask Her Majesty’s Government what assessment they have made of the compatibility of their trade policy with their climate change ambitions.
My Lords, the UK is committed to using its multilateral and bilateral trade policy to encourage the uptake and spread of clean technologies as a lever to remove market distortions and to help countries to adapt to the challenges and impacts of climate change in pursuit of our Paris Agreement and the 2050 net-zero target.
I welcome the Minister’s fine words, but some trade agreements seem to ignore them. For example, will we continue our membership of the 53-nation Energy Charter Treaty and the interstate dispute settlement protocol, both of which protect fossil fuel companies against measures that damage their profits and have been used to challenge environmental regulations?
My Lords, environmental policies are at the forefront of our minds when we negotiate free trade agreements and in the areas to which the noble Lord refers. But, of course, these agreements are negotiated. We push very hard for the inclusion of all the lines we want but sometimes, necessarily, there has to be a bit of give and take in these agreements.
Lady Bryan of Partick? Not present? I call the noble Baroness, Lady McIntosh of Pickering.
My Lords, I am sure my noble friend will agree that many of these agreements are asymmetrical in nature—we are giving and other countries are taking. Could we look at the environmental and animal welfare chapters of the recent agreements in principle for trade deals with Australia and New Zealand? In particular, will my noble friend yet again confirm that we will not accept any agricultural or other products into this country which do not meet our high standards of animal welfare and environmental protection? Will he also tell us when flesh will be put on the bones of the environmental and animal welfare chapters of these two agreements?
My noble friend is an assiduous champion of these matters. Our ambitious trade deal with Australia includes the first substantive climate change article that Australia has included in a deal, which affirms both parties’ commitment to the Paris Agreement. Of course, our very recent agreement in principle with New Zealand goes beyond this and breaks new ground on climate change. It will include the most comprehensive environmental goods list of liberalised tariffs in an FTA to date and precedent-setting commitments on coal and fossil fuels. I look forward to debating these matters further with your Lordships’ House when the full texts of these agreements are available.
My Lords, we welcome the fact that the Government have added trade and shipping to the reporting of UK emissions. They represent about 50% of all UK emissions. The Minister will be well aware that the UK is heavily reliant on trans-shipment—that is, shipments that come to the UK primarily via European ports. The European Commission is planning an extension of the Emissions Trading System to include ports and shipping. Does the Minister agree that it makes no sense for the UK to have a wholly separate scheme and that there are mechanisms within the UK-EU TCA to open up discussions for a pan-European trading scheme for emissions for shipping and ports? There is a way—is there a will?
My Lords, the shipping industry is of course very important to the United Kingdom. I am sure noble Lords have noted that my right honourable friend the Chancellor of Exchequer gave some relief to the shipping industry yesterday in terms of tonnage tax. If I may, I will follow up in a letter the particular points the noble Lord has raised this morning.
The Australian Government specifically exclude farmers from any climate change responsibilities and the New Zealand Government have a different system for them, but we are going to ask our farmers to meet very considerable responsibilities on climate change. How on earth can the Government allow goods to come into this country to compete with our farmers and expect our farmers to meet the high standards that we are going to demand?
My Lords, I am happy to repeat again from this Dispatch Box our commitment to maintaining very high standards of animal welfare, and of course food safety, in relation to free trade agreements. I do not fully agree with the points the noble Lord makes. We do seek to secure these points in free trade agreements, as I said earlier, and we are absolutely committed to upholding the UK’s high environmental standards when we negotiate our free trade agreements.
Many countries are moving forward with proposals for carbon border taxes to address the emissions caused by their imports. The Government have said precious little about this. As COP approaches, does the Minister agree that the UK needs to show leadership in these proposals, not least as the UK has the highest rate of imported carbon in the G7? What proposals are the Government bringing forward?
My Lords, as we transition to net zero, of course the UK recognises the importance of addressing the risk of carbon leakage to ensure that our ambitious policy of decarbonisation is not undermined. We have ambitious carbon pricing through our emissions trading schemes, and we have committed to review this to ensure that it is consistent with our net-zero pathway and carbon priceable mechanisms.
My Lords, does the Minister recognise that as the UK has decarbonised its domestic economy, we have dramatically increased our trade-embedded emissions from under 12% in 1990 to over 42% today? The Net Zero Review blandly states that a case for conducting a formal call for evidence into a carbon border adjustment mechanism “may emerge”. Do these figures not demonstrate that the case is clear, compelling and should be acted on now?
My Lords, internationally, we believe that the first step is to use climate diplomacy to encourage our trading partners to ambitiously mitigate climate change in co-ordination with each other for this very reason: to reduce the leakage risk across economies. But the noble Lord makes a point, and we will also consider of course the full range of options to address the risk of carbon leakage, including by seeking opportunities at the relevant international level.
Being endlessly flexible and trying to help out the Government, I was prepared to do either Question; I would just like to register that. But on the question of trade, it is clear from yesterday’s climate-unfriendly Budget that this Government have no climate change ambitions for trade. They are absolutely ignorant about what they need to do. Would the Minister agree?
My Lords, I think the noble Baroness is uncharacteristically rather unfair on this matter. I am prepared to repeat again that we are committed to upholding the UK’s high environmental standards. I do not agree with her about the Budget given in the other place by my right honourable friend yesterday. I repeat again: we will continue to pursue the whole range of mechanisms available to us to achieve our ambitions for net zero.
My Lords, I really must return to the point raised by the noble Baroness, Lady McIntosh, and the noble Lord, Lord Deben. As a former Defra Minister, I know that it is quite easy to offend both the agricultural interests and the environmental lobby—but not usually at the same time. The Australia and New Zealand agreements are both adamantly concerned with the future path of trade with those countries. I am more concerned that the process that was promised to this House during the passage of the then Agriculture Bill was not operated during the negotiations of the agreements in principle with Australia and New Zealand—and that, I think, is a dereliction of duty by Ministers.
My Lords, if the noble Lord is referring to the establishment of the Trade and Agriculture Commission, that commission has now been set up in shadow form. It will fulfil the statutory duties which it would fulfil if it were on a statutory basis. As I have explained to the House previously, it is a technical matter that it is on a non-statutory basis. This is to allow some allowances to be paid to its members, which was not allowed for in the Trade Act. As soon as we are able to put it on to a statutory footing, we will of course do so. In the meantime, as I have said previously from this Dispatch Box, we will engage with that commission to make sure that its views, advice and recommendations feed fully into our trade policy considerations.
My Lords, given the UK trade policy of levelling the playing field to prevent unfair competitive advantages and our climate change ambition to encourage global cooling, thus heralding an outstandingly good ski season in the Alps, can my noble friend the Minister update the House on progress being made during the negotiations between the UK and European Alpine nations to allow the qualifications of UK ski instructors, mountain guides and related professionals to be granted recognition in EU member states—an area in which I know my noble friend the Minister has already done much excellent work?
My Lords, my noble friend is assiduous in raising this important matter with the House. I dare say that, as the weather gets colder, we may hear more from him on this topic. We are in regular touch with the British Association of Snowsport Instructors, British Mountain Guides and GB Snowsport over this. It is a complicated matter. We have now established a recognition arrangements team in BEIS to provide advice, expertise and support to these bodies. My hope is that, with continued negotiation with European counterparts, at some point we will be able to reach a satisfactory solution to this matter.
(3 years, 1 month ago)
Lords ChamberTo ask Her Majesty’s Government what assessment they have made of employing elemental analysis to determine where cotton used in goods imported into the United Kingdom was cultivated.
My Lords, the Government recognise the role that technology can play in improving the traceability of goods in global supply chains and are working with businesses to build understanding and raise awareness of its potential use. We encourage business and industry to collaborate and share expertise on innovative solutions that will improve supply chain transparency.
I thank the Minister for his Answer, but the United States has banned cotton from China’s Xinjiang due to the treatment of the Uighurs. Why cannot the UK follow? The techniques perfected by Oritain mean that a forensic fingerprint on garments containing cotton can show where it was grown. Cotton picked in Xinjiang ends up in garments made across Asia, from Bangladesh to Vietnam, but not in India. Does the Minister agree that fashion houses must do more in due diligence than they do now, as they are forced to do in the United States? Will the Government take a lead on this issue, or has the Chinese Communist Party reached too far inside the UK?
My Lords, the Government are fully committed to tackling the issue of Uighur forced labour in global supply chains. The measures we have taken do not currently include import bans, but we have announced a range of other measures, including a comprehensive review of export controls as they apply to Xinjiang. I assure noble Lords that we continue to keep our policy response under close review.
My Lords, can the Government update the House on any ongoing conversations that they are having with discount fashion retailers about sourcing of goods in relation to forced labour, modern slavery and child labour, which is causing such anxiety in our country?
My Lords, we continue deliberations with a whole range of businesses, including, of course, the fashion business. Ensuring a tough response to modern slavery remains a priority for this Government. We are committed to strengthening the landmark transparency provisions in the Modern Slavery Act 2015, and these measures include the introduction of financial penalties on organisations which fail to publish modern slavery statements, and these will be enforced by our new single enforcement body once it comes into operation.
What are the Government doing about modern slavery in China, particularly Xinjiang, which can be identified—as the noble Lord, Lord Rooker, pointed out—by elemental analysis of cotton? What is their policy on British investment in relation to China?
For the first part of my noble friend’s question, I refer to the answer I gave previously. On investment generally, we continue to pursue a positive economic relationship with China and we think that it is in our interests to increase trade with China. As an open economy, we welcome trade and investment; however, as I have said on many occasions, we are not so stupid as to welcome harmful investment from China.
During the pandemic, the Government purchased PPE from companies facing modern slavery allegations. As Covid cases sadly begin to climb again, can the Minister say how Her Majesty’s Government will ensure that NHS contracts are not awarded to companies implicated in forced labour in the Chinese region of Xinjiang?
My Lords, the same rules and advice apply to PPE as to other goods that we import into the UK. As noble Lords know, we take a market-first approach to critical supply chain resilience and are committed to championing free trade in a rules-based system. However, we have learned many lessons from the pandemic about the importance of resilience in supply chains; we continue to apply those lessons in practice.
Will the Minister order a review of the modern slavery supply chain with regards to cotton and fibre imports from that particular region of China? He referenced PPE. He will have seen that, overnight, the United States has banned the import of rubber gloves from Supermax and all its subsidiaries because there is “ample evidence” of forced labour and modern slavery. Through NHS procurement, the UK Government have a contract with Supermax worth £316 million. Will the Minister instruct an urgent inquiry to ensure that we are not using these products, which are a result of modern slavery in Malaysia?
I thank the noble Lord for bringing that matter to my attention. He always has the most up-to-date news on these matters at his fingertips. I will ensure that that particular company is looked at by my officials.
My Lords, I declare an interest as the vice-chairman of the All-Party Parliamentary Group on Uyghurs. Has the Minister noted the all-party amendment passed in your Lordships’ House on Tuesday night, urging more concerted action in dealing with companies and countries banned in the jurisdictions of our closest allies and tainted by everything from genocide to slave labour? As the noble Lord, Lord Rooker, said, should we not stand in unity with our Five Eyes allies? Will we not stand with companies such as H&M, which has now been boycotted in China for refusing to use cotton from Xinjiang that is farmed by slaves, and make it clear whose side we are on—on the side of the slaves or on the side of the slave-drivers?
My Lords, we always bow to the noble Lord’s deep expertise in these matters, and we all very much appreciate the close attention that he pays to them. I like to think that the United Kingdom is one of the global leaders in bringing this issue to people’s attention. We have sponsored resolutions at the UN and elsewhere in relation to this, and will continue to do so.
My Lords, I noticed with some dismay this morning that the dress which I am wearing was made in China. The label does not elucidate which part of China, but there is a very serious question about labelling of products. Often it is very difficult to know where things are made. What work are the Government doing to ensure that imports are better labelled, and how does the Minister define harm? He said that the Government do not believe in investment that creates harm. Does he have a definition of that?
My Lords, probably the easiest place to find a definition is in the schedules to the National Security and Investment Act, which became law at the end of last year. It contains details of 17 subsectors with very strict mandatory controls for matters which clearly would otherwise cause harm. On the first part of the question, I will write to the noble Baroness.
My Lords, in responding to the noble Lord, Lord Rooker, the Minister talked about working with businesses regarding the supply chain. Later, he talked about rules associated with the Modern Slavery Act. Is he confident that there are adequate resources to enforce these rules and future rules, given that the businesses following them may be put at a competitive disadvantage compared with cowboys who fail to do so?
The noble Baroness makes a good point. Last year we debated the very important question of ensuring that our modern slavery laws and guidance are as effective as possible. We continue to work on that and will be introducing financial penalties. We are absolutely embarked on a road which will make possible the eradication of this egregious crime of modern slavery.
My Lords, all supplementary questions have been asked. We now move to the next Question.
(3 years, 1 month ago)
Lords ChamberTo ask Her Majesty’s Government what environmental considerations influence their trade policy.
My Lords, Her Majesty’s Government are committed to upholding the UK’s high environmental standards in our trade policy. We consider a wide range of environmental issues in our trade policy and in what we are seeking to pursue in multilateral fora, as well as under our new free trade agreements. This includes upholding commitments in the Paris Agreement, maintaining our right to regulate to meet net zero and, of course, co-operating on issues from forests and fisheries to greenhouse gas emissions.
My Lords, the Government’s trade strategy seems to aim to increase trade with geographically distant countries, but this does not make much environmental sense. Have the Government conducted an assessment of their trade policies on harmful climate emissions, by air or sea? Will they raise the environmental impact of trade policies at COP 26?
We will certainly raise the impact of trade policies at COP 26. On the noble Baroness’s point about where our trade agreements are being made, of course it might have been better if Australia and New Zealand were close to Europe, but they are not. They are important countries to make trade agreements with, and that trumps the question of geography, in this case.
Would the Minister explain the process within government to audit trade or other policies to ensure that climate catastrophe is given priority in these considerations?
The most effective audit we have is the deep scrutiny that noble Lords give our trade agreements and trade policy. We have some of the most advanced scrutiny mechanisms in the world, and noble Lords do a good job of auditing us and holding us to account.
Let us test that. On 14 September, the Commons Environment, Food and Rural Affairs Committee said that the Government were kicking the can down the road or “running the clock down” on the establishment of the Trade and Agriculture Commission. Can the Government update us on when it will be established on a statutory basis? For full scrutiny, will the Minister ensure that the scrubbed legal texts of the Australia and New Zealand deals will go to the statutory Trade and Agriculture Commission, so that it can fulfil its duty and report to us, before we are asked to ratify those agreements?
My Lords, as soon as I heard the magic words “Trade and Agriculture Commission” being mentioned by the noble Lord, I thought he was going to congratulate me on that fact that the Government have today published our response to the report of the Trade and Agriculture Commission on how best to advance the issues of British farmers, food producers and consumers in future trade policy. As to his point, there is a very narrow difference between the TAC that has been set up and the statutory TAC. As the noble Lord knows, that difference entirely arose because the Trade Act last year did not allow the payment of allowances to commission members given the way it was assembled at that time. It has become clear to us that, to allow for the best membership of the TAC, some form of allowance—not generous, I hasten to add—should be paid to its members. The members who will form part of the statutory TAC are those who have been appointed today to form this new TAC, and we should welcome them to their important roles.
My Lords, I congratulate my noble friend the Minister and all the other Ministers in the trade department on securing a trade deal with our friends and allies in New Zealand. Is he aware of reports that show that the carbon footprint for New Zealand lamb eaten in London is lower than for domestic lamb, because the vast majority of carbon emission is in the production phase, on the farm? The economies of scale and efficiency reforms that have made New Zealand lamb affordable have also reduced carbon emissions. Is not the best thing we can do for the environment to make the world richer, and is not freer trade an important lever to pull in that regard?
My noble friend makes some excellent points. I wish I had made his point on lamb myself, so I thank him for that, and for drawing the House’s attention to the agreement in principle with New Zealand being reached, as announced today. The environmental chapter of that agreement will break new ground for the UK and New Zealand in supporting our shared climate and environment goals, clean growth and the transition to a net-zero economy. I am pleased that the mood of the House is to welcome the approval in principle of this very important agreement.
My Lords, I remind the House of my interests, as set out in the register. The Minister will recall the discussions we had on these issues during the passage of the Trade Bill through this House. In his comments then, and today, he was reassuring about government policies in this area, yet government practice on the Australia deal has been far from reassuring. I reiterate the plea made by the noble Lord, Lord Purvis of Tweed, and ask the Minister whether the Government will be fully transparent and open about the terms of both the Australia and New Zealand deals to allow the scrutiny of the House, of which he is so flattering.
The noble Baroness is right to draw attention to scrutiny. I am always happy to repeat our commitment to scrutiny from the Dispatch Box. Both the Australia and New Zealand agreements are at the in-principle stage, at the moment. The full texts will be published in due course. They will be made available to the House in good time and will be scrutinised by the TAC and by your Lordships’ International Agreements Committee. We will make sure that there is time for all those processes to be completed thoroughly and to the standard that noble Lords wish.
Documents leaked to Sky News reveal that the Department for International Trade can drop both the climate asks on precedence of multilateral environmental agreements over FTA provisions and on the reference to the Paris Agreement temperature goals. This is of great concern. Can the Minister say whether the Norway agreement last week was one of very few including such clauses because Norway insisted, and otherwise, for a Conservative Government, it is always trade deals at all costs, irrespective of other issues?
My Lords, I am very pleased to be able to comment categorically that the leaked document to which the noble Lord refers is not government policy and is not being considered by Ministers.
Will my noble friend reaffirm that the Government’s trade policy is based on the facilitation of trade by the reciprocal removal of barriers, not on seeking excuses to retain protectionist restrictions we inherited from the EU, or signalling our approval or disapproval, or trying to influence non-trade policies of other countries except as part of multilateral agreements? Will he remember the 19th-century dictum that free trade is God’s diplomacy?
My Lords, it is of course a great pleasure to have God on our side in these matters. The noble Lord is right: we are a global trading nation. Our future prosperity depends on us being a global trading nation. This will remain one of the core priorities of this Government.
The Minister seems to be ignoring the fact that Australia has much lower food standards—incredibly low. It uses paraquat, which has been banned for years here in Britain, and antibiotics, which are also banned. Of course, we now have a trade deal with New Zealand—are we going to fly those kiwi fruits in? Australia also has incredibly low animal welfare standards. The Minister is ditching our better food for the sake of some boastful statement he can make here in the House.
The noble Baroness’s question veers toward the unfair. What do I see when I read the Australia free trade agreement? I see a comprehensive environment chapter with Australia that protects our rights to regulate to meet net zero, sets our shared commitment to building mutually supportive trade and environment policies, and establishes co-operative efforts to support our green economy through trade in a range of areas. That seems to fit the bill.
My Lords, the time allowed for this Question has elapsed.