United Kingdom Internal Market Bill

Debate between Alyn Smith and Owen Thompson

Tuesday 15th September 2020 Commons Chamber

[Owen Thompson]

There are many things wrong with the Bill. Today, we are focused on the creation of yet another unelected body with the monitoring responsibilities to investigate devolved decisions. The current Government seem very keen on creating record numbers of unelected roles. They threatened to abolish the Electoral Commission, so we know that they do not like oversight. But yet another bureaucratic body to investigate and veto what elected politicians decide in the devolved Administrations —is that really what we need? Just because the Prime Minister, and perhaps his Government, are averse to democracy and oversight does not mean that the rest of us are.

Perhaps, if I might be so bold, this is more about the fact that the Conservative party has been unable to win an election in Scotland or Wales since 1957, yet it wants to implement its own policies in disregard of the elected wishes of the Scottish people, who democratically elect the Parliament at Holyrood. Perhaps that is what the Bill is about. Perhaps the Conservative party has taken lessons from some of the donors in the Kremlin.

This unnecessary new body will decide whether a Bill meets the new test for the internal market, putting permanent constraints on the devolved competencies of the Scottish and Welsh Parliaments and the Northern Ireland Assembly. We cannot support such an anti-democratic move in either principle or practice. The amendments seek to remove the Bill’s remit from Scotland. The Office for the Internal Market should not be given powers to monitor the regulatory provisions that apply in Scotland but in not the whole UK. This is nothing short of a threat to Scottish democracy.

How will the OIM’s decisions be scrutinised? Yes, a report must be lodged annually in this place, but nothing tells us at what point that will appear before Members. Will it be like an estimates day? By what process can hon. Members genuinely scrutinise the OIM’s decisions? We need to know. How can we possibly have any clarity about how this will work if we do not know the process of simple oversight and scrutiny?

The regulations proposed to set up this body are unwarranted and lack the necessary clarity about the extent of its remit, how the CMA will receive and consider proposals for investigations and essential mechanisms for democratic scrutiny of the membership and dispute resolution. At very least, it should be essential for all four Administrations to agree at every stage. As the Royal Society of Edinburgh said, the use of this authority against the wishes of the devolved Administrations constitutes a failure of intergovernmental relations.

What happened to the respect agenda? We were told we were in a Union of equals and that we were to “lead not leave”. Where has that gone? Let us make this simple: scrutiny of Bills passed at Holyrood should be undertaken in Holyrood. Transparent, proportionate processes are in place to scrutinise Bills in the Scottish Parliament and consider the input of key stakeholders, including business, public authorities and the public. Replacing that with an unelected body and an unclear process is a retrograde step for transparency in our democracy. It could result in vested interests with financial clout having undue influence, or in regulators challenging the decisions of our elected representatives.

We hear a lot about unelected bureaucrats—we had a lesson from my hon. Friend the Member for Stirling (Alyn Smith), who highlighted that some of the so-called unelected bureaucrats are in fact elected—but this is a genuinely unelected quango. There is no need for the creation of a new body that could scupper much of the excellent evidence-based policy work that has served Scotland so well. Policies such as the minimum unit pricing of alcohol and maintaining free higher education pose no threat to the integrity of the Union, but could fall foul of the rules for this new internal market.

[Alyn Smith]

I commend my hon. Friend on a powerful speech. Does he share my concern that as well as the general structure of this body, it is beyond ludicrous that at this late stage, we still do not know who these individuals will be, how they will be appointed, who they will serve and what policy they will implement?

[Owen Thompson]

Indeed. Hon. Members could be forgiven for thinking that the Bill was being rushed through without a huge amount of thought behind it—not that I would ever suggest any such thing.

The premise of the internal market on which the Bill is based is false. It seems to regard differences in policy decisions taken across different parts of the countries and nations as somehow a bad thing or an irritating bump in the road that somehow has to be smoothed out. That is devolution. The point and principle of devolution is that decisions can be made in a devolved Administration. It was designed to respect localised democracy and better meet differing priorities in different parts of the United Kingdom. Instead, under the Bill, the centralising tendencies of this unequal Union are being put into overdrive.

The Scottish Government have always recognised the importance of free trade across the isles. We have a system in place to govern trading arrangements across the UK, consisting of reserved and devolved competences. Where work is at an intersection of EU law, the four Governments can and should work jointly through the common framework process, although that involves concepts that might be difficult for Government Members to grasp: mutual trust, respect and constructive dialogue, none of which are evident in this Bill. These processes are already there to ensure the continued frictionless trade across the UK that we all want to see, and the Scottish Government happily signed up to this process—it is the correct way to proceed.

The Bill is a political move to curb the power of the devolved Administration, and if this Government continue to seek to guarantee the controlled right of UK companies to trade unhindered in every part of the UK, they should get on with it and use the processes that are already there. The processes in this Bill mean that private health companies or private water companies operating in other parts of the country could soon have a guarantee to work in Scotland, where these things are run by public companies. This is a constitutional and legislative mess.

The Bill is a blatant political move to scupper those rebellious Scots, who just do not seem to fall for the Prime Minister’s charms. He is throwing his toys out of the pram, taking a huff and saying, “It’s ma baw and ye cannae have it.” The Prime Minister had the brass neck to pretend yesterday that each devolved Administration will be “fully and equally involved” in monitoring the internal market, despite sovereignty resting wholly with the Westminster Government. If he is speaking in good faith—it could happen—Conservative Members will back our amendments tonight. They would at least require the approval of devolved Administrations, bringing at least a degree of democracy and accountability to what is, in effect, an unelected body. Surely, that has to be a simple thing to support.