Northern Ireland Investment Summit

Debate between Lord Johnson of Lainston and Lord Howell of Guildford

Thursday 23rd November 2023 Lords Chamber

[Lord Johnson of Lainston (Con)]

I completely agree with the noble Baroness on the need to come to a conclusion over forming a stable political environment for businesses to invest in Northern Ireland. I reassure her that the United States is not the only market that invests heavily in Northern Ireland. Across the world, particularly in Asian countries such as Japan, there is enormous interest in taking advantage of the skills in Northern Ireland. It is not simply the opportunities presented by the Windsor Framework; it is the opportunities presented by the people of Northern Ireland and their brains and brilliance.

[Lord Howell of Guildford (Con)]

My Lords—

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[Lord Howell of Guildford (Con)]

I declare my interest as a former Minister of Commerce in Northern Ireland. Having travelled around the world raising interest in investment in Northern Ireland, I confirm what my noble friend has just said. There was immense attention to the sheer quality of the training and skills in Northern Ireland, particularly then in the aeronautical sector, in Harland & Wolff, and in a number of other high-tech electronic industries—Japan was especially interested. This was some decades ago, but now that we have a renewed and strong interest in links of every kind with Japan, is that aspect to be emphasised in Northern Ireland?

[Lord Johnson of Lainston (Con)]

I thank my noble friend for that point and I agree with him. We have a renewed staff level in Belfast to encourage this type of investment, and I hope that they will continue their excellent work.

Automotive Manufacturing Sector: Support

Debate between Lord Johnson of Lainston and Lord Howell of Guildford

Monday 15th May 2023 Lords Chamber

[Lord Johnson of Lainston (Con)]

I have tried to cover the key areas where we are investing significantly alongside industry to build our EV industry. We have several important pools of capital. I have not mentioned UKEF, which has through various loan schemes also supported our existing and future manufacturers. On top of that, through the Faraday challenge we are investing very heavily in R&D, because innovation will drive the technological change that will give us these opportunities in the future.

[Lord Howell of Guildford (Con)]

Has my noble friend noticed that Honda, which has given up manufacturing in this country, now proposes to import a low-cost EV made in China? Many are forecasting a tidal wave of lower-cost EVs from China as its industry expands at an amazing rate. Is our strategy robust enough to take account of that and of the devastating effect of the Inflation Reduction Act in America, which is sucking a lot of investment in automotive components and manufacture away from this country? Are we ready for these two blows?

[Lord Johnson of Lainston (Con)]

We clearly import cars and run a global economy. I would like to raise to the House the importance of our trade deals. They will allow us, through the new rules of origin opportunities under CPTPP and so on, to make more cars with mixed-use components. I congratulate our Secretary of State, who is in Switzerland today to further this post-Brexit vision of Britain.

Trade (Australia and New Zealand) Bill

Debate between Lord Johnson of Lainston and Lord Howell of Guildford

3rd reading
Monday 20th March 2023 Lords Chamber

[Lord Howell of Guildford (Con)]

My Lords, I offer my congratulations to the Minister for skilfully conducting the debates on this important Bill, which I think will lead to much greater things in our future. I want to put before him three issues, almost housekeeping issues, that have arisen during the handling of the legislation, one of which has just been mentioned by the noble Earl, Lord Sandwich.

I declare an interest as a member of the International Agreements Committee, where the issue of trade policy and how specific or general it should be has been a matter of lively discussion. That is of course relevant to everything that we have been talking about.

I ask the Minister to keep the three points that I want to comment on in mind when we enter into future discussions on these sorts of areas in FTAs, of which there are going to be plenty more. First, the CRaG system—the Constitutional Reform and Governance Act 2010—has come under a bit of strain, and the question has arisen as to whether, when the other place resolves that something should not be ratified, the 21 days that then follow are enough to get the appropriate debates organised, or whether in fact the Government are not obliged to have a debate and maybe it does not fit into parliamentary time and the net effect can be that there is no debate at all. Perhaps that is an area that needs looking at again.

Secondly, the whole of the CRaG system depends on the assiduity, energy and powers of the committees. The resources on the clerical and research side of many committees, including all the ones that I have served on for 30 years, have been second to none, and have been particularly superb here in the House of Lords itself—but are they enough, given the size and number of the treaties that are coming through? We are not even talking about the EU treaties that are handled by the International Trade Committee; we are talking about thousands and thousands of treaties and agreements, let alone instruments, pouring through day by day. Today’s giant Executive generates a continuous flow, a cascade, of these things. Do the committees have the resources and underpinning that committees in similar parliamentary systems to ours, here in Europe and elsewhere, seem to have? Should there have been harder thinking about whether, in a modern society with a modern Parliament trying to hold the Executive to account, the resources of committees are the key—the physical resources, clerical resources, research resources and back-up, and the power to summon and so on. These are all matters of lively discussion that have arisen in this area.

My third point is a bit of a puzzle, but we are going to hear a lot more about it: the question of consent from the devolved Administrations. I need to have one thing clarified for me. I thought foreign policy was a reserved matter under the devolution legislation that we passed through both Houses. When the Holyrood Parliament refuses consent, I want to know under what powers it is doing that. As the Minister has indicated, that does not actually stop a Bill proceeding and being enacted, but it is a rather curious situation when, if the devolved Administrations have views on this, they can just sit there and not provide consent. Is it because they think Scotland should have some separate relationship with Australia and New Zealand—I cannot believe that is the case—or is it simply some inner procedural matter where they do not feel there has been adequate consultation? Either way, it is a very uncomfortable situation to encounter. My noble friend has handled it excellently, but these things sit there and require some hard thought if future Bills of this kind, of which there will be many, can be conducted in a reasonable way where Parliament feels that it really is getting a grip on what is happening.

[Lord Johnson of Lainston (Con)]

I greatly appreciate noble Lords’ comments. I think I was so keen to get this Bill through that I slightly jumped the gun. I apologise to those noble Lords who were waiting to speak. I greatly appreciate the personal comments towards my own enthusiasm. I have hugely enjoyed the process of working with so many noble Lords in the first of what I hope will be a series of very exciting, exhilarating and profitable trade deals for the whole of the UK.

I have always been very specific, as have the Government, that this is a journey. We are very keen to hear how we can engage better. It is absolutely in the interests of the Government and these trade deals that there is a broad consensus around their power and effect to elevate our economy to new heights; otherwise, we will not be able to broadcast the ramifications and specifics of the trade deals to the country and people will not take advantage of them. Personally, I am continuing to engage at all possible points.

I am delighted to answer a few of the questions. In terms of the committee resourcing, I will certainly take that away. I thank the noble Lord, Lord Howell, for raising that. The IAC under the noble Baroness, Lady Hayter, has done a very good job. A number of noble Lords have spoken to that today and during the debate. It is certainly worth making sure we have the resources in this House to ensure we are scrutinising according to the appropriate CRaG process.

The noble Lord touched on the consent issues. They have clearly been an important feature of the debates around these trade deals. It does not necessarily look like we have resolved them for future trade deals. However, as the noble Lord rightly said, these are reserved powers. If you consult your Walter Bagehot, as I did over the weekend, he makes it very clear and is absolutely right that the Executive should be making treaties and be given the freedom of rein to implement them across the entire United Kingdom.

Having said that, we have made huge efforts to consult and engage with the devolved nations. I personally made extra efforts, which I would not describe as effort at all but part of a necessary process of good governance and communication, to ensure that devolved nations felt that they had a way in to this process. It is absolutely confirmed that our negotiators spend a great deal of time with officials from all parts of the United Kingdom to make sure that their views are fed in. This reflects on the sort of trade we are trying to do in terms of the specific industries of these nations. We are one United Kingdom, and our power in negotiating global trade deals comes from that fact. It would be a great mistake to try to abrogate that for any reason. Having said that, consultation and communication are paramount to us, and I personally commit to them.

UK Car Production Since 2016

Debate between Lord Johnson of Lainston and Lord Howell of Guildford

Tuesday 14th March 2023 Lords Chamber

[Lord Johnson of Lainston (Con)]

I sincerely thank the noble Lord for raising this point. It is important that we have a strong car industry in this country, and there are some legitimate reasons why the industry is transitioning. As many noble Lords who have been involved in this industry will know, we are moving from internal combustion engines to electric vehicles, which means some lines end and it takes time to start new lines. I am also very aware of the rules of origin issue, and I sincerely hope that our new relationship with Europe will allow us to have a more constructive conversation around that. It is in no one’s interest to have a trade war on cars.

I will finish by saying that there have been some great announcements over the last few years, and the Government have been extremely influential and relevant in supporting companies such as Nissan and Envision, with investment in the Vauxhall plant at Ellesmere Port and support for Pensana’s factory near Hull. Ford has committed just under £0.25 billion of investment in Halewood, and in 2022, Bentley announced a £2.5 billion investment to produce its first battery electrical vehicles by 2026, which will secure 4,000 jobs at its Crewe plant. There is certainly more that we can do, but we are acting, and we are trying to transition our car industry into one that is sustainable for the future.

[Lord Howell of Guildford (Con)]

My Lords, with growing Chinese competition in car manufacturing—in fact, China is dominating the EV market altogether—there are obviously even worse challenges to come. But would my noble friend like to say what he thinks about the EU proposal, announced yesterday, to go for what it calls a Net-Zero Industry Act to compete with the Inflation Reduction Act in the United States, because it is very nervous that Volkswagen and other European manufacturers are all about to move from France and Germany to the United States? How are we going to work it out in this situation? It seems rather dangerous.

[Lord Johnson of Lainston (Con)]

I thank my noble friend for his comments. There has been a large amount of debate around the value of the Inflation Reduction Act, which I believe is the greatest oxymoronic legislative title in history, frankly, as I cannot believe that it will reduce inflation. Some of its measures are also relatively protectionist. The Government are investing heavily, not just in car manufacturing but in the research and development around it. For example, the Faraday Challenge amounts to £500 million, the Automotive Transformation Fund is hundreds of millions of pounds and the Advanced Propulsion Centre is providing huge amounts of much-needed money for new car production facilities and the inventiveness around that. It is not good enough just to try to find a bigger bazooka; we must ensure we focus on regulation and proper support for R&D, because our brains are our best defence.

Trade (Australia and New Zealand) Bill

Debate between Lord Johnson of Lainston and Lord Howell of Guildford

Committee stage
Monday 23rd January 2023 Lords Chamber

[Lord Johnson of Lainston (Con)]

I always thank the noble Lord, Lord Purvis, for his academic approach to these debates, and I am grateful to him for those points. The former Secretary of State was right when she said that we were seeking consent; the Government have sought consent, and we have consulted. Regarding the relationship between this Bill and the Procurement Bill, I am not sure what the relevance of consultation is in relation to Scotland. A number of the actions in this Bill will continue, since they are not being cancelled by the Procurement Bill. I understand that the Procurement Bill will retain the other parts of this legislation. Certainly, we have committed very clearly to making sure we seek consent and consult.

Without prolonging this debate, I think it is essential—I have said this before—that we engage with everyone in this country and all the devolved nations to ensure that we create trade deals that benefit them. I am sure the noble Lord will be aware of and celebrate the opportunities that his own food and drink industry will have under these new agreements. We are reducing tariffs on a great variety of spirits so that industry can sell more at lower prices or use that additional income to market its goods. All the manufacturers I have spoken to were extremely positive about those measures, which will, I am pleased to say, directly benefit Scotland. The intention here is to create powerful free trade agreements that work for the entirety of the United Kingdom. As a result of that, it makes absolute sense—not just in the specific legislative format but in a fundamental negotiating sense—that these are reserved powers for the United Kingdom, and that we have the opportunity to implement them.

[Lord Howell of Guildford (Con)]

I do not want to be academic, but I am still not entirely clear on what basis the consent is being withheld from the Scottish or Welsh Governments, even though I gather that it is not necessary—in the end, it will just go ahead anyway. What can be done to overcome some of the inevitable additional ill feeling that seems to wander generally over the division between reserved and devolved powers, in order to make this Bill sweeter than it will otherwise be? Otherwise, we will just be left with a bad feeling in the air and a sense that things are being steamrollered through because the precise letter of the law of the devolution agreements, devolution law and all the preceding legislation of preceding centuries says so. I am not sure that this is good enough if we are going to build a good relationship in the future between the two nations of England and Scotland, and the Principality as well.

[Lord Johnson of Lainston (Con)]

I thank my noble friend for his comments. Consent is either given or not given. For the reasons why, he must make inquiries of the various Assemblies that have not given their consent and ask them why they are not supporting this free trade agreement, which I think will bring them enormous benefits. We remain committed to the consultation process in all our activities. Frankly, it would probably be impractical not to do so in any event.