United Kingdom Internal Market Bill

Debate between Lord Lexden and Lord Purvis of Tweed

Report stage & Report: 3rd sitting (Hansard) & Report: 3rd sitting (Hansard): House of Lords
Wednesday 25th November 2020 Lords Chamber

[The Deputy Speaker (Lord Lexden) (Con)]

I should inform the House that if Amendment 64 is agreed to, Amendments 66 and 67 cannot be called.

[Lord Purvis of Tweed (LD)]

My Lords, it is a genuine pleasure to follow the noble and learned Lord. I admire how thoroughly he outlined his amendment, to which I have added my name. I inform the House that I believe Amendment 68 in my name is consequential to Amendment 64, so if Amendment 64 is agreed to by the House then I will move Amendment 68.

As the noble and learned Lord concluded his remarks, he hit on a fundamentally important point, about which we raised concerns in Committee and earlier, which have been reinforced by the Chancellor’s Statement today. Both before and during Committee, the concern was that the Government sought these financial powers to override one of the core elements of devolution: that expenditure on devolved areas in our devolved nations should be taken by the bodies accountable to them for those policy areas. As a member of five years’ standing of the Finance Committee in the Scottish Parliament, I know that that spending would come with agreed policy platforms, financial strategies and a degree of accountability.

The Government, I think, believe that the people owe loyalty to those who spend the money, and therefore the main priority is to identify the source of the money—not how it is delivered and not the accountability for it. However, as the noble and learned Lord raised, can the Minister clarify whether that is the case as she responds to the debate on these amendments?

If the Government have indeed announced their intention to override the devolution settlement and to use this Bill to deliver spending on devolved areas without the agreement of the devolved Administrations, that will indeed confirm the fears that we outlined, both at Second Reading and in Committee. I hope that the Minister will be able to say clearly that that is not the case, but I fear from the announcement that has been made today that it is.

The concern started because we had seen very little consultation with the devolved Administrations—or indeed English local authorities—on the spending powers that were to be in this Bill, and we had not been given any indication that these powers had been the result of consultation. There had been consultation on the replacement of EU structural funds, and that consideration was fairly extensive. But there was a mismatch between the consultation on how to repatriate the structural funds and the powers under this Bill, which are catch-all. Not only that, there surely could not have been consultation based on the manifesto commitment of the Government, which was to replace those funds with a skills fund—that was in the Conservative Party manifesto. So the powers that seem to be indicated go far beyond what the manifesto itself said, and indeed the results of the consultation on what the structural funds should be.

There is no reference in the Bill to what the delivery mechanism would be. The noble and learned Lord indicated quite clearly that, under the previous scheme—where, I remind the House, 76% of all European investment had been allocated to the member states—it was to be managed through the devolution settlement, and that management was through our existing frameworks. The current multiannual financial framework, from 2014 to 2020, which is coming to an end, was a UK partnership agreement. It gave granular detail—373 pages of it—of the fund: where it was going, the administration of it, how it was administered and how complementarity would be secured between the legitimate devolved policy areas. The Government have indicated that that approach is no longer fit for purpose because that was the European structural funds. Before we see announcements at a political level about the political intention, surely it is right that the Government publish the respective replacement process.

My party on these Benches and I, as a former Member of the Scottish Parliament, have never been opposed, since devolution, to the UK Government supporting schemes within Scotland. But that was under a recognition that it was linked to the correct competences of the UK Government. For example, in 2018, the UK Government supported the Edinburgh Fringe Festival in supporting artists to promote the United Kingdom around the world in one of the world’s premier cultural events. Local to home in my area, the wonderful Common Ridings used to be very familiar with receiving support from the local authority, the Scottish Government and the UK Government.

The point is not that the UK Government should be restricted from supporting reserved areas in the devolved countries, but that the policies for delivery of the replacement of the structural funds should be done under an agreed process. That agreed process seems to be set on its head now, with the Government believing that they will deliver the programmes, regardless of consultation, regardless of agreement and, more worryingly, regardless of an agreed framework for how these funds can be delivered.

United Kingdom Internal Market Bill

Debate between Lord Lexden and Lord Purvis of Tweed

Report stage & Report: 2nd sitting (Hansard) & Report: 2nd sitting (Hansard): House of Lords
Monday 23rd November 2020 Lords Chamber

[The Deputy Speaker (Lord Lexden) (Con)]

I have received requests to ask short questions from the noble Lords, Lord Purvis of Tweed and Lord Randall of Uxbridge. I call the noble Lord, Lord Purvis.

[Lord Purvis of Tweed (LD)]

My Lords, I am grateful for what the Minister said in referring to the noble Baroness, Lady Boycott, and to his correspondence with my noble friend Lord Fox and me.

I consulted the House of Lords Library on how the Minister’s letter referring to the sale of coal—not its use—interacts with the Air Quality (Domestic Solid Fuels Standards) (England) Regulations, which this House passed on 7 October and which are the governing legislation. The regulations specifically ban the supply and sale of coal and wet logs in England. One concern is that the Bill would not ban such sales if the goods originated in Wales, Scotland or Northern Ireland, where bans are not in place. That is clear; in fact, the Minister’s letter confirmed that this issue falls within the scope of mutual recognition. In addition, the other terms of the regulations bring this issue within the scope of indirect discrimination.

However, more concerning is that the regulations have been made but are not yet in effect—they come into effect on 1 May 2021—so the Bill will take effect before them. That is a requirement under this legislation, so the regulations the House passed banning the sale of coal and wet logs in England will have no effect because they are now within the scope of the Bill. Clause 5(3) states:

“A relevant requirement … is of no effect”.


Can the Minister clarify that, regardless of whether this is allowed or not, the ban in England will have no effect because of this legislation?

Trade Bill

Debate between Lord Lexden and Lord Purvis of Tweed

Committee stage & Committee: 2nd sitting (Hansard) & Committee: 2nd sitting (Hansard): House of Lords
Thursday 1st October 2020 Grand Committee

[The Deputy Chairman of Committees (Lord Lexden) (Con)]

I call the next speaker, the noble Lord, Lord Inglewood. He is not available at the moment. We will move on to the noble Lord, Lord Purvis of Tweed.

[Lord Purvis of Tweed (LD)]

My Lords, it is a sobering fact that, as we discuss this important group of amendments with regard to the UK adhering to international obligations, the European Union has today issued a letter of formal notice on a potential infraction where we have breached an international agreement. That is the backcloth against which we must consider all the groups of amendments to come: how we as a country want to be seen around the world as a nation that adheres to its national obligations. Those on climate change and the environment, as the noble Lord, Lord Grantchester, indicated in opening the debate on this group so well, are obligations that the UK is a party to.

I want to speak first to Amendment 21 in the name of my noble friend Lord Oates who, as my noble friend Lady Northover has said, cannot be here today because he is at a funeral. The amendment is also signed by my noble friends Lord Fox and Lady Sheehan. I shall also address the cross-party Amendment 40 which is also in the name of my noble friend Lord Oates but has been spoken to very eloquently by the noble Baroness, Lady Boycott. I am sure that if the noble Lords, Lord Duncan of Springbank and the noble Lord, Lord Browne, had been able to take part in the debate on this group, they would have done so. I am grateful for their support.

I turn first to Amendment 21, which should be looked at in the context of other amendments to Clause 2 to expand the provisions of the Bill to agreements that have been signed as part of the EU and now, going forward, to new agreements. As such, the amendments limit the scope of the use of implementing powers to all agreements only with countries that are party to the Paris agreement. The United Nations Framework Convention on Climate Change deals with greenhouse gas emissions, adaptation, mitigation and finance. As my noble friend Lady Sheehan indicated, the Paris agreement was signed in 2016. As of this year, it has been signed by 196 states, while 189 have become a party to it, with the only significant omissions being Iran and Turkey. As the noble Lord, Lord Lansley, and others have said, in June 2017, the US President, Donald Trump, announced his intention to withdraw from the agreement. However, reassuringly for some of us, Joe Biden the Democrat candidate, signalled as recently as Tuesday night that if he is successful in the election, he will seek for the US to rejoin.

Our amendment is perfectly clear and I will show how to some extent it links with Amendment 40. The Paris agreement is now a foundation block for the global effort at reducing greenhouse gas emissions. It is simply impossible to strip out the efforts to tackle climate change without also adapting trading practices. As the noble Baroness, Lady Noakes, has indicated, this is an area where these can be seen in separate lights. It is worth reminding the Committee that low-carbon exports alone in goods and services from the UK in 2018 were worth £5.3 billion. If you add on top of that UK legal consulting, investment products and the UK’s global leadership in arbitration and the City of London with the financial options it offers for sustainability products, we are a world leader in global trade on the environment and sustainability. It is, I think, a simple fact that for the UK to be an independent global trading nation, any deep and comprehensive free trade agreement that we would be willing to enter into should be part of and consistent with our Paris climate agreement.

We have taken this approach as a result of being a member of the EU. If the Government do not consider that we should continue with this, can they explain why not? In essence, the Government seem to be seeking continuity in our trading relationships, but not continuity in the legal framework for climate that we have helped to shape and were a part of in the European Union.

I have in my notes a reminder to reference the fact that Ministers will probably say that they can be trusted, given the continuity agreements that we have signed already, and that it is government policy not to move away from those. But every time the Government say that, in my view it strengthens the argument that if that is the consensus across the political parties, there is merit in making it a statutory function. At a time when the Minister is telling the Committee that we need have no concern about climate change commitments, Liz Truss appointed Tony Abbott as the UK trade commissioner. I shall remind the Committee what I said at Second Reading: in 2017, he told the Global Warming Policy Foundation that

“it’s climate change policy that’s doing harm. Climate change itself is probably doing good.”

I think that the UK approach should be stronger than that.

Until now, the approach has been that, as I have mentioned, the European Union has had in its free trade agreements so far a trade and sustainable development chapter. I want to address the point made by the noble Lord, Lord Lansley. He seemed to suggest that this approach, which is set down in European Union law, should no longer be the British approach and that British trade agreements should not have a trade and sustainable development chapter in them. I believe strongly that they should and that it is in our interests that they should. Why will the Government not replicate the approach of maintaining agreements with trade and sustainable development chapters in them? As the noble Baroness, Lady Noakes, and the noble Viscount, Lord Trenchard, said, if it comes to the opportunity to enhance agreements, this is the chance to do so because it is the trade and sustainability chapters in the agreements, especially with the least developed countries and those with which we have EPAs, that are the mechanism of dialogue in order to enhance them.

I turn to the United States. I have reflected on what was said by the noble Lord, Lord Lansley. He seemed to suggest that these amendments would be restrictive. He may be aware of the Bipartisan Congressional Trade Priorities and Accountability Act 2015 which sets the parameters of US trade policy. Section 2 sets the trade negotiating objectives of which subsections (5) and (7) are

“mutually supportive and to seek to protect and preserve the environment and enhance the international means of doing so.”

That legislation by Congress, which the noble Lord says restricts the trade representative of the United States—I think it empowers them—states, as far as Congress is concerned, the remit of what the United States will negotiate. The consequence of what President Trump has said with regard to those international agreements has been significant, because the United States’ legislation states that it can agree a free trade agreement with a country only where both are party to the same international obligations.