United Kingdom Internal Market Bill

Alun Cairns Excerpts

2nd reading & 2nd reading: House of Commons & Money resolution & Money resolution: House of Commons & Programme motion & Programme motion: House of Commons
Monday 14th September 2020 Commons Chamber

[Alun Cairns (Vale of Glamorgan) (Con)]

In the limited time that, unfortunately, is available to us, I want to focus on the protection of the UK market and on the enhanced powers that this Bill will give to UK Ministers to act in UK nations. Without this Bill, the way in which businesses trade and interact could be at risk. There is a realistic potential that the marketplace could become chaotic. We all recognise—

[Chris Bryant]

Why?

[Alun Cairns]

If the hon. Member gives me a moment, I will continue the argument and he can make an intervention later if he wishes.

We all recognise the status of the EU single market, which is something many of us will have championed and questioned in equal measure over the years. Rarely have we commented, however, on the UK market, yet the single UK market is more important and directly relevant to the businesses in each and every constituency across the country. It gives us the right to trade freely and seamlessly in all parts of the UK. It sets minimum standards for products and services—a common rulebook for tradespeople to work from. It allows for the mobility and flexibility of labour, protects against unfair subsidies and enables the recognition of qualifications, confirming free and fair competition and opportunity wherever people are based in the United Kingdom. It is so important to our prosperity and so obvious that until now many people will have taken it for granted, which is why we need to act in this Bill.

Over the last six months, we have seen that the agendas of each Administration around the UK are not always in line, and therefore the potential to create chaos in the marketplace exists. Protecting the interests of businesses and consumers in all parts of the country must be our priority, and that is exactly what the Bill does. It does so in a way that also respects and supports devolution by enhancing the devolved Administrations by extending their powers still further.

I am particularly encouraged and grateful that my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy has included clause 46 in part 6. It is particularly welcome: it enhances the powers of UK Ministers to act and to be relevant in UK nations. That is essential for the future of the Union, and to my mind it is the start of the Union fightback. It shows that Whitehall now understands the changing nature of our make-up as a United Kingdom.

Since devolution, UK Ministers have been prevented from acting directly in support of businesses, charities or authorities in UK nations. UK-scale investment projects have always been difficult to achieve since devolution. Every Secretary of State has been frustrated by that, partly because of the devolved settlement and the limitations that it has put in place. After all, for someone who is unemployed and living in one of the poorest communities, which may have substandard education and limited training opportunities, in a run-down town or village, at this point the UK Government’s answer to calls for help would have to be, “You need to contact your Assembly Member or the Welsh Government Minister.”

[Chris Bryant]

I am sorry, but I have been asking for money to make good the problems that we have had with flooding in the Rhondda all this year; I have not had a single penny out of the Westminster Government for it. I have been calling for the work that needs to be done in the Rhondda to take away the 60,000 tonnes of material that has fallen into the river from tips, which are a responsibility of the UK Government, to be funded by the UK Government; I have not seen a penny. I am not going to listen to all this nonsense of pretending that they are going to send us money—it is a whole load of tosh.

[Alun Cairns]

The hon. Member has made my point. He recognises that the areas of policy that he is talking about are devolved: the capacity of the UK Government to act in those spaces does not exist, as it stands. He recognises that the devolved settlement already gives Wales, or the Welsh Government, £120 for every £100 spent in England, so the answer that I might suggest is: I am sorry, but the hon. Member will have to contact the Welsh Government Minister to act in his constituency.

When people live in the circumstances that I have described, they do not care where the help comes from; they just want the Government to give hope and opportunity, and to play a part in bringing about change. The Bill allows for exactly that. I have long argued that the future of any nation would come under pressure if a wide wealth gap continued to persist between nations and regions. The Prime Minister’s levelling up agenda recognises that, and this Bill empowers that levelling up agenda in Scotland, in Northern Ireland and in Wales.

--- Later in debate ---

[Wayne David (Caerphilly) (Lab)]

I have been a Member of this House for a good many years, but this is the worst piece of draft legislation that I have ever seen brought before us. It is a shabby and dishonourable piece of legislation, and I say that for two fundamental reasons.

My first objection to the Bill is that, if enacted, Ministers would have the ability to break international law, and the law would prevent there being a legal challenge to the use of those powers. Much of the debate so far has rightly focused on Northern Ireland, and I take seriously the potential threat to the Good Friday agreement but, importantly, the Bill also has far-reaching implications for all international obligations in this context. Those are not my words or those of the Opposition but the considered, objective and carefully expressed view of the House of Commons Library.

My second concern is that the Bill significantly undermines the devolution settlement for Scotland, Wales and Northern Ireland in two important respects. First, the Bill states that the devolved nations will have to allow the sale of imported goods in Wales, Scotland and Northern Ireland, as agreed by the UK Government when they act solely for England, even if those imported goods did not meet quality standards, consumer protection levels or appropriate labelling agreed by the Scottish Parliament, the Welsh Parliament or the Northern Ireland Assembly. Of course, there should be agreement whenever possible—that should apply right across the UK—but there is a very real danger of standards falling as the UK Government cobble together trade deals. The Bill facilitates that.

My second devolution objection relates to funding and state aid. When Britain was in the European Union, less well-off areas, such as south Wales, benefited substantially from EU structural funds, the European regional development fund and the social fund in particular. My constituency, like many others, benefited enormously. The Government have proposed a shared prosperity fund to replace the structural funds. The Bill gives a legal base for that fund, but significantly, the Bill gives exclusive power to the UK Parliament and the UK Government to decide where and how that money is spent. Previously, the devolved institutions had a real say in how European money was spent in their areas. What I think will happen is that resources will not go to poor areas—the areas of need—but will be allocated according to Tory central Government priorities. That is structurally and morally wrong.

[Alun Cairns]

Is the hon. Gentleman fully aware of the frustration among communities in Wales that so much money has been wasted over so many years of the highest level of European funds? That could be the funicular in Blaenau Gwent, which broke down within weeks of being completed and was never used again, or so many other projects elsewhere that I could highlight.

[Wayne David]

What I am aware of is that many communities across Wales are fed up of Tory cuts. Despite the difficulties that many areas have experienced because of central Government policy, they have seen the European Union offer some help, and the concern is that that help will now not be coming from a Tory Government. The help will go to areas that are already well off, which is morally and economically wrong.

That is why I conclude that this Bill is one of the worst pieces of draft legislation ever to be put before the House. It enshrines the possibility of illegality. It objects to international law as it is widely applicable. It rides roughshod over the devolution settlements. It opens the door for resources to be given to well-off areas, rather than being allocated on the basis of demonstrable need. It also undermines the international standing of this country in the eyes of the world.