(5 days, 9 hours ago)
Lords ChamberMy understanding is that this system is for English mayors.
My Lords, the Government’s priority today appears to be to reduce the cost of living. If that is the case, why do they feel that introducing new taxes to make holidays in the United Kingdom more expensive for British people is a good idea?
We would not have such a problem with the cost of living if the previous Government had not driven up cost of living pressures, as evidenced by the action we had to take in this Budget to take an average £150 off household energy bills from April and to freeze rail fares and prescription fees for a year. We understand that potential visitors may have concerns about the effects of a new levy. That is why local leaders will run a formal local consultation before making use of the new power.
(5 days, 9 hours ago)
Lords ChamberI am grateful to my noble friend for his many years of work to create cohesive communities. I will just briefly outline some of the measures that are in schools and universities. As he says, it is very important that we make sure that those who are trying to radicalise the minds of our children and young people face the education that stops that happening and that will encourage our young people to engage in the kind of critical thinking that makes them able to ask the questions themselves.
First, we are co-designing a cohesion charter with students to bring together a set of agreed principles that guide students’ conduct and engagement on issues that underpin or undermine campus cohesion.
Secondly, the Office for Students will further strengthen its monitoring of universities’ efforts to prevent individuals becoming involved in or supporting terrorism. Universities should be alert not only to violent extremism but non-violent extremism, including the certain divisive and intolerant narratives that can reasonably be linked to terrorism.
We want to strengthen the Department for Education’s oversight of compliance issues and take appropriate enforcement action. There will be enforcement powers for the Department for Education, and it is important that people have those powers.
We are working with the Office for Students to bring together clear and concise information on higher education complaints into a single online portal, so that staff and students have quick and easy access to organisations best placed to support them. We are also enhancing the higher education sector-wide capability to meet Prevent duty obligations, while, of course, upholding freedom of speech. It is very important that we do that as well. So, there are a number of steps in the action plan.
On my noble friend’s point about online platforms, we need to increase transparency about how those online platforms operate and comply with the Act. Platforms will be required to publish regular reports, summarised by Ofcom for public understanding, to give the public a clearer picture of platform compliance.
I do not think I know the height of the London Eye either—I will be straight up about that. I will look it up after this.
We recognise that a new approach to integration must consider the broader immigration system and what level of immigration is tenable in maintaining a cohesive society and meeting the needs of existing communities. Integration is of course a two-way process. Society must enable participation, while newcomers are expected to engage, learn English, respect our values and contribute.
I agree with the noble Lord, in that the test must have sensible questions. I do not have a date for when that will be reviewed, but I will find out for him after this evening.
As part of this publication, we will set clear expectations for integration, including English language proficiency and participation in work, and we will develop a cross-government integration strategy. Efforts will focus on removing barriers to participation, supporting underrepresented groups and fostering the shared sense of values across the UK that I know, right across the Chamber, we all want to see.
My Lords, I take the Minister back to the question that she was asked by my noble friend Lady Scott in the context of the excellent report Time for Change by the Union of Jewish Students. This unfortunately makes it clear that antisemitism is being normalised across campuses. If university leaders fail to take action, how will they be held accountable? I have looked in the plan that has been published and there is nothing there about holding those university leaders accountable, so what specifically are the Government going to do to make sure that antisemitism is not normalised on our university campuses?
It is clear that there are some shocking statistics in that report. We must focus on making sure that Jewish students, along with students of all faiths, feel safe in our universities. On the noble Lord’s specific question about sanctions for university leaders, I will have to come back to him. I do not have the information on that in front of me. With all the very concerted work that is set out in the programme in relation to campuses and universities, the Government have a clear intent to make sure that our students can feel safe and be safe on a university campus.
(1 month, 1 week ago)
Lords ChamberWe are working very closely with the judiciary and the Ministry of Justice. We had lots of discussion about this during the passage of the Bill. We want to ensure that the First-tier Tribunal has the capacity to deal with any increase in cases as a result of the rent increase changes. In the Property Chamber, work is progressing to increase capacity, as well as reviewing resource and working practices in readiness for that increase in demand. To ensure long-term sustainability, we have concluded that there is a case for the use of an alternative body or mechanism to make initial rent determinations, and we are continuing to work with partners across government to develop a rent determination function as quickly as possible. Hopefully, that process will take some of the pressure from the First-tier Tribunal.
My Lords, first of all, before I ask my question to the Minister, I congratulate the Government Chief Whip on continuing, on the excellent daily list, to refer to “His Majesty’s Government”, and on having no truck with the nonsense rebranding of “the UK Government”. Long may it continue.
I ask the Minister in His Majesty’s Government: does she think the changes in the Renters’ Rights Act are going to lead to more houses being available for rent or fewer?
It will lead to better conditions for renters and will remove some of the barriers that stop people renting, as well as barriers that can prevent renters maintaining a tenancy. We have banned rental bidding, levelling the playing field for renters; landlords will no longer be able to encourage prospective renters to stretch themselves beyond their means; they cannot discriminate against the prospective renter because they are on benefits or have children; and rent increases will be limited to once a year at market rate, with tenants able to challenge unfair rent increases at First-tier Tribunal.
The work we have done with landlords and with tenant bodies—we have worked with both, through the whole passage of the Bill—means that we have a fair system that rewards good landlords and tenants but makes sure that bad landlords are held to account for the bad practices they have had in place.
(3 months, 2 weeks ago)
Lords ChamberI am very sorry to hear of the noble Baroness’s unfortunate experience and pleased to see her back on the Benches, fighting her corner. This is absolutely the backbone of what this Government intend to do. We knew when we came into government that standards had slipped. The pressures on medical staff have been enormous and it is our job to transform the service. That is what we have put in place.
My Lords, I listened very carefully to the excellent question from the noble Lord, Lord Spellar, but I was astounded by the Minister’s answer. I think I heard correctly that she talked about modernising the trade union regime. In the Employment Rights Bill, the Government are going to make it easier—less difficult—for trade unions to call strikes on a lower turnout. That is going to make the situation worse, not better.
We beg to differ completely with the noble Lord. We believe our Employment Rights Bill is the way forward. It will improve industrial relations and make sure that we have workplaces that are fit for purpose as we move forward through this century.
(9 months, 1 week ago)
Lords ChamberI remind my noble friend that, in Committee, I ticked him off by saying that, if planning permissions are taken by political groups, it is illegal. A planning authority has a right and an applicant has a right. Frankly, his objection that the political parties had a vote is entirely bogus and entirely wrong, and would be grounds for overturning the decision of Westminster Council. I say that as someone who was responsible for planning for five years.
There is a strong reason why the two buildings should be co-located. This is likely to be a memorial of not just national significance but global significance. It is the view of Yad Vashem—the Israeli Holocaust museum—of Auschwitz, and of the American holocaust memorial that this will be the most visited Holocaust museum in the world and will play an enormous part in pushing back against Holocaust distortion. That is an important reason.
I take the point that this is not a Second Reading debate. In conclusion, there is a strong reason why we should not place a figure on this. Members will recall that, very sadly, at the first meeting of the Committee, the Committee got itself into all kinds of hot water when a Member—inadvertently, I think—repeated an antisemitic trope, suggesting that the Jewish community should pay more because they were rich people. This amendment seeks to achieve exactly that. If the amount is limited, there will be a shortfall of £46 million, and by implication that has to come from the community and beyond. Given what happened in Committee, it is singularly unfortunate. I do not believe for one moment that that was my noble friend’s intention, but you do not get an opportunity to explain the motivation of noble Lords in this House when it goes out to the public. There is a grave risk, should we put this to the vote, of unfortunate motivations being ascribed to your Lordships’ House.
My Lords, I will briefly speak to this amendment. As a former Secretary of State for Transport, I have some knowledge of construction projects, the time they take and the reasons why costs may escalate. There is a decision for people to make, and I strongly agree with what my noble friend Lady Harding of Winscombe said.
Looking at the Explanatory Notes, I reminded myself of just how long ago my noble friend Lord Cameron first proposed this project; it was when I was in government as an Immigration Minister. That seems a very long time ago, because it was. It is not surprising, given the passage of time, that the costs set out then will clearly be much larger now.
I am a great supporter of spending public money wisely, and I have listened carefully to all the comments and concerns that people have made. I will not ascribe motives for this amendment; all I will say is that the Minister needs to reassure the House that, if this Bill proceeds—and if the memorial and the learning centre are approved and constructed, as I very much hope they are—the Government need to put in place strong controls to make sure that public money is spent wisely.
Also relevant to the many construction projects for which I have been responsible in government is that costs escalate partly because it takes a long time before the design and content of those projects are finalised. In part, it is parliamentary processes—which are perfectly good and understandable—that then cause the cost to escalate. The most obvious example of that in the projects for which I was responsible—part-way down the track—was HS2. People complain about how much that cost, but part of the reason it cost so much was that both Houses of Parliament—it, too, was a hybrid Bill—altered the design and put lots of extra requirements into it. Members of the other place and of your Lordships’ House then expressed surprise that the cost had escalated. I very much want to get on and build this memorial and learning centre, and the more delays there are and the more we debate what it looks like and where it goes, the more the cost will increase.
Finally, I strongly agree with what my noble friend Lady Harding said: putting a figure in nominal terms in the legislation is unwise. We have existing processes, including the National Audit Office and the various structures that the Government have for managing major projects. They are not perfect, but we need to make sure that those structures are used. Ministers must be accountable to both this House and the House of Commons in regularly reporting and accounting for themselves, and we must be able to ask them questions. I suggest that this is an unwise amendment, and I hope that it is not accepted and added to the Bill.
My Lords, I was not going to speak to this amendment, but I believe that my noble friends Lady Harding of Winscombe, Lord Pickles and Lord Harper have misunderstood—I would not say misrepresented—what the amendment is all about. I declare my interests in coming from a family in which my mother’s German Jewish family lost members in the Holocaust, and in which my great uncle, who came to this country, founded the Jewish Refugees Committee, which organised the Kindertransport. I also speak as a former Treasury Minister; that is how I look at the numbers and what the amendment seeks to do.
As I understand it and read it, my noble friend Lords Eccles is as concerned as I am and many others are that we have had no up-to-date or credible figures from the Minister, throughout the various stages of the Bill, as to what the current costs are. The latest costs, I think, go back at least two years, and we have heard what has happened to the costs since then. As a House, we need to understand what the more recent estimates are.
As I read it, this amendment puts a cap on the public contribution to this, but does not, as my noble friends have just said, or implied, cap the total cost of the project—if my noble friend tells me I have got it wrong, I will sit down. Speaking as a former Treasury official and Minister, I say that we need a bit of discipline on this project. It is not going to cap the total cost of the project and, unless the Minister is able to give us more credible figures to explain the latest thinking about the split between the private and public sector contributions, I would be fully supportive of my noble friend Lord Eccles’s amendment, because it puts some necessary financial discipline on the project but will in no way—as my noble friends have said, and they can come back at me if they want to—cap the total expenditure that could be incurred on the project.
(9 months, 1 week ago)
Lords ChamberMy Lords, this amendment would require further reports on security to be prepared and debated in both Houses before any proposed memorial or learning centre can proceed. But it is already being debated at great length in the House of Commons and has overwhelming cross-party support. This is a revising Chamber, so we can discuss revising it.
The noble Lord is saying that there has not been a sufficient amount of time on security, but I beg to differ. From the very beginning, security has been an important consideration in the design of the memorial and learning centre. It was made clear, including in the planning inquiry nearly five years ago, that the threat of terrorism or violent protest was recognised. It has never been the approach of this country to abandon the legitimate activities of free society simply because of the threat of terrorists and violent protesters. The noble Lord is right to point out what happened recently with the protesters outside the entrances into Parliament, and everybody agrees with that. But that is not necessarily a reason to block this proposal.
The memorial and learning centre have been designed be safe and secure. Advice from the National Protective Security Authority and the Metropolitan Police has led to significant measures, including the above-ground pavilion and the hostile vehicle mitigation measures protecting the gardens. My understanding is that there will not be blockages or security at the entrances to the park, but at the entrance to the actual memorial there will be airport-style security. You will not be able to just turn up; you will have to book in advance online.
The chosen site within the government security zone is better protected than any other plausible sites that have been mentioned. The proximity of the Holocaust memorial will make no difference to the scale or nature of the threat to the Palace of Westminster, nor to the security measures required. The Palace is very well protected, notwithstanding what happened the other day. Security matters have been and will be fully considered within the planning process.
The amendment would achieve only a delay, and would signal a weakness, telling the world that the UK was not prepared to place a Holocaust memorial next to Parliament for fear of attack. Consider who would be most pleased with that sort of message. Perhaps I might quote an expert in such matters:
“In conclusion, while it is impossible to eliminate all risks, the security measures planned for the Holocaust Memorial and Learning Centre are comprehensive and have been developed with the highest standards of safety in mind. The Memorial’s location next to the Houses of Parliament should not be seen as a vulnerability but rather as a testament to our commitment to remembering the Holocaust in a prominent and respectful manner”.
That was written by a Member of this House, the noble Lord, Lord Stevens.
My Lords, I greatly respect the experience of the noble Lord, Lord Carlile, in reviewing terrorism legislation, but I think that on this particular issue he is wrong. I come to that judgment from having had some responsibility in the past, both as a Home Office Minister and most recently as Secretary of State for Transport, where I had responsibility for the security of aviation, maritime and our transport systems, including here in London.
I listened carefully to the noble Lord’s speech. First, on the planning process, clearly the design of the learning centre is, appropriately, taken account of in the planning process. As my noble friend has just said, advice was taken from the appropriate authorities in the design of the learning centre, and that was appropriate. Protecting it on a day-to-day basis would rightly be the responsibility both of the Metropolitan Police and of our other agencies. Having worked closely with them, I have enormous confidence in their ability to do that.
As to the noble Lord’s point about any change in the threat to the Palace of Westminster, first, he drew attention to the large number of visitors that would be expected to go to the learning centre. I draw to his attention the fact that around 1 million people a year visit the Palace of Westminster, whether as visitors or to meet their Members of Parliament. So a very significant number of members of the public already visit this part of London.
One of the challenges that all our security authorities have in a democratic country is balancing the necessary protection of your Lordships, Members of the House of Commons and all those who work in this building, with maintaining the appropriate access to a democratic institution for members of the public. A number of public servants work in this building, on the estate, in our security services and in the Metropolitan Police. They work every day—sometimes, as the noble Baroness, Lady Walmsley, referenced, at great personal risk to themselves—to keep us safe, but also to enable members of the public to have access to their democratic institutions. I have every confidence that they will continue to do that job. I do not think that that is an appropriate subject for a report for us to consider. Those threats are monitored and dealt with on an ongoing basis.
My final point is a slightly more worrying one. The logical conclusion of what both the noble Lord and the noble Baroness, Lady Walmsley, said, is that we would not have a learning centre anywhere. Even if there is such a threat in having a learning centre that it would be, as I think the noble Baroness said, a “lure” to those who wish people ill, in a democratic country we have to say at some point, “We have values and we want to build such a centre”. The correct thing to do is to make sure that it is properly protected, not to say that, because people might threaten it, we are not going to build it. That would be the wrong conclusion to draw.
The subsequent point is this. The fact that the noble Baroness said that having such an education centre would provoke this sort of reaction demonstrates to me the absolute necessity of building one, and of building it next to this democratic institution. If building a centre that reminds us of the Holocaust, and of our wish for nothing like that ever to happen again, truly provokes the worst in other people, that demonstrates to me the necessity to do it and to get on with it—and there is no better place to locate it than next to the democratic institution that represents this country. I urge noble Lords, if the noble Lord chooses to divide the House, to reject his amendment.
My Lords, the promoters of this project have said over and over again that they interpret our objections as being, “You can’t build a Holocaust memorial anywhere”, but that is not what it is about. The point is that you build it but you have to take into account the consequences on the immediate surroundings and the visitors of where and how you build it.
I do not share the absolute confidence of the promoters on the security. We know, for example, that for over a year those who care about security have asked the authorities to move the police from their comfortable spot at the foot of the escalators to Portcullis House out into the Tube, and they have not done it—after repeated requests. We have heard of other instances.
What noble Lords have not taken into account is protests. The Metropolitan Police and other police have not done well in balancing the right of protest against security. One end of the park is going to be wide open, and you can well imagine the hundreds or thousands of protesters, as has already happened, entering and waving flags, with their cans of red paint. There will be no one to stop them; they can go right up towards the mound and throw something or sail along the river and throw something. The police, to judge by their lack of action against protesters in Jewish areas of London and elsewhere, will say that the right of protest is more important than the need for the memorial to be quiet, sacred and respected.
We should also remember the children, unfortunate little ones, playing in the playground exactly where people queue. It is also well known that queues are a vulnerable spot for terrorists. There will be queues of people waiting to get in—sitting ducks, along with the children in the playground, which will be most unfortunate. There will be off-putting armed guards at one end, and free entry at the other. The record of the police and this Government on protecting Jewish people and Jewish students on campus since 7 October has been dire, and this cannot mean safety for gatherings in Victoria Tower Gardens.
I thank the noble Lords, Lord Verdirame and Lord Goodman, and the noble Baroness, Lady Deech, for Amendment 4, together with Amendment 4A, which, in addition, has the support of the noble Baroness, Lady Scott of Bybrook.
This proposed new clause is similar to one proposed by the noble Lords, Lord Blencathra and Lord Robathan, in Committee. I note that this proposed clause has removed the word “Nazi”, taking heed of the warning of the noble Lord, Lord Pickles, that the Holocaust was not perpetrated by the Nazis alone.
I have a good deal of sympathy with the objectives behind this amendment. As noble Lords will be very well aware from earlier debates, it is the strong and clear intention of the Government that the learning centre should be focused on the history of the Holocaust and of antisemitism.
The new clause is no doubt well intentioned, but it is overly restrictive and may have unintended consequences. First, the new clause is unnecessary. The Bill clearly refers to a memorial commemorating the victims of the Holocaust. The Bill also clearly states that it is about a Holocaust memorial, not a memorial to all genocides or to crimes against humanity. No Holocaust memorial and learning centre could exist without a clear understanding of the roots of antisemitism.
From the start, we have been very clear that to understand the devastation of the Holocaust on European Jewry, it is crucial also to understand the vibrancy and breadth of Jewish life before the Holocaust. We have been very clear about the concept of genocide and how it relates to the Holocaust. The Holocaust is the lens through which we view the development of international law on genocide and on human rights.
The modern understanding of genocide was developed in the context of the Holocaust. Indeed, the term itself was put forward by a Jewish lawyer working in the shadow of the death camps and involved in the attempt to achieve justice at Nuremberg. We will focus on the impact the Holocaust had on the emergence of the concept of genocide and the associated international legal frameworks. We will not, as some have claimed, relativise the Holocaust by equating it with other genocides. The learning centre will not portray the Holocaust as simply one among many episodes of inhumanity and cruelty, nor will it aim to communicate bland, generic moral messages. The Holocaust was a unique event among the evils of this world and will be treated as such. The learning centre, integrated with our national memorial, will provide a solid, clear historical account of the Holocaust, leaving no visitors in any doubt about the unprecedented crimes perpetrated against the Jewish people.
I was pleased to offer noble Lords an opportunity to hear direct from Martin Winstone, the Holocaust historian and educator who is supporting development of the learning centre content. I appreciate the comments of the noble Lords, Lord Goodman and Lord Verdirame, and I wish we could have had our conversation much earlier in advance of the debate tonight, but, unfortunately, we did not have the opportunity. Those who were able to attend the session last week will have heard unequivocally that the focus is on the Holocaust and its devastating impact on Jewish communities across the world.
The content for the learning centre is being developed by a leading international curator, Yehudit Shendar, formerly of Yad Vashem, supported by an academic advisory group. With their help, we will ensure the content is robust, truthful and fearless. It will stand as a vital rebuttal of Holocaust denial and distortion in all its forms.
I hope I have shown that there is no disagreement between the Government and those who wish to ensure that the learning centre focuses very clearly on the history of the Holocaust. I am not, however, persuaded that additional clauses to the Bill are needed to achieve what we all want to see. Moreover, there are inevitably risks in seeking to prescribe too narrowly what the learning centre is permitted to do.
I have been listening very carefully to the Minister, and I completely accept what he is saying about his and the Government’s position on what he wants the learning centre to do, but can he address the question raised by several of my noble friends: what happens if there is a different Government and a different Minister with a different policy? Does anything in the Bill as drafted prevent a Government with a different policy—we have heard several examples of how that might come about—altering the focus of the learning centre? I do not doubt that he is sincere and in complete agreement, but it is about guarding against a future change. That is what noble Lords are trying to guarantee.
If the noble Lord will allow me, I will address his point towards the conclusion of my speech.
I have mentioned the academic advisory group, and this is a good opportunity to tell the House who is in it: Ben Barcow CBE, who worked at the Weiner Holocaust Library from 1987 to 2019; Gilly Carr, professor of conflict archaeology and Holocaust heritage at the University of Cambridge; Robert Eaglestone of Royal Holloway College, professor of contemporary literature and thought and former deputy-director of the Holocaust Research Institute at Royal Holloway; Zoe Waxman, mentioned by the noble Lord, Lord Evans, who is professor of Holocaust History at the University of Oxford; Isabel Wollaston, who is professor of Jewish and Holocaust studies at the University of Birmingham; and my good friend Dr Paul Shapiro.
Before I come back to finish on the points raised by the noble Lord, Lord Harper, I hope I have shown that there is no disagreement between the Government and those who wish to ensure that the learning centre focuses very clearly on the history of the Holocaust. I am not, however, persuaded that the proposed additional clauses are needed in the Bill to achieve what we want to see. Moreover, there are inevitably risks in seeking to prescribe too narrowly.
I suspect that many noble Lords would expect the learning centre to address, at least to some degree, the history of Jewish communities ahead of the Holocaust. I believe also that there would be support for some activities in the learning centre to be focused more on commemoration than on education. Neither of those matters is explicitly and obviously permitted by the proposed new clause. I say that as a direct answer to the noble Baroness, Lady Harding.
We know, sadly, that the activities of the Holocaust memorial and learning centre will face a good deal of opposition and hostility. I am very reluctant to provide additional opportunities for legal challenges and for inviting the courts to get involved in determining what can or cannot take place in the learning centre.
(4 years ago)
Commons ChamberThe hon. Gentleman is absolutely right: the welcome that local authorities and people across Scotland showed to Syrians fleeing persecution, and the willingness they are showing to help Ukrainians fleeing persecution, is great. He is absolutely right that people in Argyll and island communities have already done that. We hope to allow the Scottish Government to be a super sponsor and allow them to work with local authorities in Scotland. That is what Scottish Government Ministers have proposed to us as the best way forward, and it seems sensible to me. We just need to try to make it work.
I strongly welcome the scheme that my right hon. Friend set out, but may I urge him to ensure that safeguarding and checking measures remain proportionate? As Conservatives, we generally believe that people can make decisions for themselves. I agree that with unaccompanied children safeguarding is critical, but the state should not get in the way of the generous response of the British people. Let us ensure that the checks are proportionate to the risk. Let the British people respond in the way that they already have.
I am very grateful to my right hon. Friend for his common-sense perspective, which I completely share.
(5 years ago)
Commons ChamberThe hon. Lady has identified very important funding needs. The fund will tackle one element of the problems that we are seeking to address. As I set out, there will be about £600 billion of public sector investment funding over the next five years; through other funding opportunities, I am sure there will be the chance to tackle the concerns that she raised. I am delighted that she will be working with her local council to identify a priority bid for the levelling-up fund.
The last award of funds to my constituency, from the Getting Building Fund last year, has already been worked on and constructed; a fantastic construction industry training centre will admit its first students next January. Therefore I welcome my constituency’s being a priority 1 area for the levelling-up fund. I am already working with my local authority—we had our first kick-off meeting last week—so will he confirm that bids that reflect genuine local need, supported by the local authority and the Member of Parliament, have the best chance of success in getting that funding to turn into real opportunities for our constituents?
I thank my right hon. Friend for his question, and for being an exemplar of how an excellent local MP can not only bring funding to his constituency but see the project through to completion—a great example for us all to follow. I endorse the idea that through this scheme we need to identify quality local projects that will make a visible difference to local people in the constituency. That is why it is so important that MPs work with their local councils to prioritise such schemes and ensure maximum opportunity for success.
(5 years, 8 months ago)
General CommitteesI beg to move,
That the Committee has considered the draft Enterprise Act 2002 (EU Foreign Direct Investment) (Modifications) Regulations 2020.
It is a pleasure to open the debate under your chairmanship, Mrs Miller. The draft instrument was laid before the House on 8 June. I will try to clearly explain the rationale behind it, but first let me turn quickly to foreign direct investment more broadly.
The UK has a proud and hard-won reputation as one of the most open economies in the world. We remain the top destination in Europe, and the third in the world, for foreign direct investment, with 58,000 new jobs created in the UK in 2018-19 through that inward investment.
Although most FDI does not raise concerns, it is vital that any transactions that could operate against the public interest should be scrutinised. Under the Enterprise Act 2002, the Secretary of State has powers to intervene in mergers that present public interest concerns. The Government will shortly bring forward the National Security and Investment Bill to further strengthen the UK’s ability to scrutinise investment into the UK. There will be the usual opportunities to debate the Bill once it is introduced.
The European Union also recognises the security risks that can, on occasion, be posed by foreign direct investment, and has responded by bringing forward a regulation that establishes a framework for the screening of foreign direct investment into the European Union. The draft instrument will make effective that regulation, which will come into force on 11 October. As Committee members will know, under the withdrawal agreement the UK is obliged to implement EU law during the transition period. Most of the regulation’s provisions will automatically have direct effect in the UK. I will briefly set out its purpose.
The regulation will create a mechanism that will allow the UK, member states and the European Commission to share information about investments with each other. Specifically, the EU regulation does three things. First, it requires member states and—for the duration of the transition period—the UK to provide notification of any FDI that is undergoing scrutiny. That will have no impact on us, because in the UK notifications of screening under the Enterprise Act are already published on gov.uk.
Secondly, the regulation allows the UK, member states and the European Commission to issue opinions and comments on investments that are being screened elsewhere in the EU, and to request information where their own security or public order might be affected. To be clear, while any opinions expressed might be considered, they will not affect the UK Government’s right to intervene in or make decisions on merger cases that we consider may raise national security concerns: our sovereign capability is not affected.
Thirdly, the regulation requires member states and the UK to share basic information about FDI that has not already been screened where it may affect another member state’s security or public order. The UK could similarly request information or issue opinions on investments occurring in EU member states if we felt that our security or public order might be affected. Member states and the UK are not required to share information on specific security or public order concerns.
The EU regulation will automatically become part of UK law on 11 October 2020. However, some measures in the regulation require changes to UK law to ensure that it can operate effectively in the UK. The draft instrument makes those changes. It will allow the Competition and Markets Authority, the CMA, to use its existing powers, set out in the Enterprise Act, for the purposes of regulation.
However, two changes to the Enterprise Act are being made. The first extends the CMA’s existing information-gathering powers and associated penalty regime. The CMA already gathers information for businesses, when the Secretary of State intervenes in a merger, by issuing a public interest intervention notice, or PIIN. However, the EU regulation allows information to be requested about FDI that is not undergoing screening—when a PIIN has not been issued. It is these cases for which the additional information-gathering powers are needed.
The CMA will be able to gather this information only when a member state or the European Commission has requested it on the basis that FDI into the UK might affect their own security or public order. The types of information that can be requested include the ownership structure of the foreign investor, the value of the investment and the date when the investment is planned to be or has been completed. Businesses already hold that information, so it will not be burdensome to provide. If, however, a business fails to comply with a request, penalties could be issued. The instrument extends the scope of the existing civil and criminal penalty regime available to the CMA, as set out in the Enterprise Act.
The second change that the instrument makes will allow the Secretary of State and the CMA to disclose information to the European Commission or member states where the Secretary of State wishes to provide comments on FDI in a member state. The Enterprise Act already allows the Secretary of State or CMA to provide information to the Commission or member states where that is required because of a Community obligation, but that would not be the case when we actively choose to provide comments on FDI in a member state, which is why the second change is needed.
May I ask the Minister a question about that second point? I have been listening very carefully to what he said. The explanatory notes make it clear that these regulations will be revoked at the end of this year, when the transition period comes to an end. In the Bill that we will introduce, are we proposing to allow Ministers to continue sharing information with the European Union where they choose to do so in the cases that he set out, or will that come to an end when these regulations are revoked?
I thank my right hon. Friend for his intervention. The regulations will be repealed as part of the wider European Union (Withdrawal Agreement) Act 2020. They do not interact with the Bill that we are introducing, but add further powers that can be used.
The UK and the EU have both stated that we intend to support ambitious, close and lasting co-operation on external threats. That co-operation should respect both sides’ strategic and security interests and respective legal orders. We are open to participation in security-facing EU programmes and instruments on a case-by-case basis.
As I say, although we are obviously obliged to abide by EU law during the transition period, we do not believe it would be appropriate to remain part of the reciprocal information-sharing channel after the transition period has come to an end. As I say, when the National Security and Investment Bill is introduced, we will be able to debate that fully.
May I clarify something? I think the right hon. Member for North Durham is asking a slightly different question about reciprocal obligations. My question was more straightforward. These regulations give the CMA a power that it does not currently have to share information that we wish to share.
All I was asking was this: in the future, when we are no longer obligated to share information with the EU, will Ministers have the legal power to share that information if they chose to? They will under these regulations, but once those are revoked will Ministers have the power, under the Bill that the Minister has talked about, to share information with the EU if they choose to do so? That is all I was asking. I did not go quite as far as the right hon. Gentleman was suggesting.
I thank my right hon. Friend for that clarification. We already share a lot of this information on gov.uk, and it is not particularly burdensome on businesses to release the information we are looking for. Much of this work is in effect tidying up, because we have gone that little bit further in the Enterprise Act.
The right hon. Gentleman. I disagree with him on the compulsory nature of the information sharing. I am perfectly happy with a co-operative framework. The point I was driving at—I think this is the substance of the regulations—is that in order for the CMA to share information, it has to have the power to share the information. If it shared the information, even if it wants to, that would be unlawful; it does not have the power to do that sharing.
My point, which I think is different from that of the right hon. Gentleman, is that I am perfectly relaxed that we are not able to compel European Union member states, post the transition period, to share information with us, because I am content that they should not be able to compel us to share information with them. I do, however, want to see a structure where we co-operate with them, so that where we choose to share information with them, we are empowered to do so. The regulations specifically address allowing us to share information.
My question to the Minister is about what is intended to come afterwards. Do we intend to replicate the ability for us to share information where we choose to do so? That is a different point from that made by the right hon. Gentleman, which, I think, is about some element of compulsion.
My second point is that the explanatory notes explicitly say that the intention is to revoke not just the instrument we are debating today but the retained version of the foreign direct investment regulations in their entirety at the end of the transition period. Paragraph 7.1 of the explanatory memorandum states that the FDI regulations do not
“affect the UK’s ability to screen investments into the UK”
because we will retain our own responsibility for national security. Once we have removed those FDI regulations, do we currently have domestic powers to do that screening, or is that what the new Bill is for?
That is an important question, because if we currently have powers and the new piece of legislation the Minister refers to is about strengthening or extending them, I am fairly relaxed about whether there is a gap before the Bill comes into force, because if we already have substantial powers and we are talking about beefing them up, I can live with there being a gap. If we revoke the FDI regulations on 31 December, however—and with them, our current ability to do screening for our own national security—the right hon. Member for North Durham is right to say that we would need the new legislation to come into force immediately upon their revocation or there would be a gap, not just in the sharing of information, but in our own national security. That is a point on which I differ from the right hon. Gentleman, but also one very specific question that pertains to points in the explanatory note.
(7 years, 10 months ago)
Commons ChamberI will come to the point about leasehold that the hon. Lady highlights, but first I want to finish considering some of the issues in relation to tenancies.
Last month, the Department set up a database of rogue landlords and agents and introduced banning orders. That will make it easier for local authorities to act against rogue landlords and agents to protect tenants. We will shortly consult on options to support landlords to offer longer tenancies to those who want them.
Buyers, too, are getting a fairer deal under this Government. We are determined to make the process of buying a home easier, cheaper and less stressful. As part of that, we put out a call for evidence. That has helped us to identify some practical steps we can take to achieve this goal.
We are also cracking down on abusive practices in the leasehold market. We will legislate to ban the development of new build leasehold houses, except in exceptional circumstances. We will restrict ground rents in newly established leases of houses and flats to a peppercorn.
I want to comment on the point about renters. We often hear that people are forced to move frequently because they do not have long tenancies. My right hon. Friend might be interested to know that the average length of a tenancy in the private sector is 4.3 years and the most common reason for its coming to an end is the tenant wanting it to.
I am grateful to my right hon. Friend for putting those facts on the record. However, all the reforms for buyers and renters are united by one aim: to improve fairness, standards and affordability across the board.