Local Government: Ethical Procurement

Andy Slaughter Excerpts

Tuesday 15th March 2016 Westminster Hall

[Richard Burden]

I understand what my hon. Friend says, but this is also about different public institutions making judgments in line with the law and their best belief of what the situation is. I hope that all public institutions would pay due regard to international law.

[Andy Slaughter (Hammersmith) (Lab)]

Will my hon. Friend give way?

[Richard Burden]

Before giving way, I just want to finish this quote from the Foreign Office advice:

“This may result in disputed titles to the land, water, mineral or other natural resources which might be the subject of purchase or investment. EU citizens and businesses should also be aware of the potential reputational implications of getting involved in economic and financial activities in settlements, as well as possible abuses of the rights of individuals. Those contemplating any economic or financial involvement in settlements should seek appropriate legal advice.”

[Andy Slaughter]

Following the point that my hon. Friend the Member for Bradford East (Imran Hussain) just made, the Foreign Office guidance also talks about

“possible violations of international humanitarian law and human rights law”.

Indeed, the Foreign Office guidance is very clear, whereas the procurement policy note is very unclear. Does my hon. Friend the Member for Birmingham, Northfield (Richard Burden) agree that that may be intentional—that the actual aim is not to change the law, but to discourage and blackmail local authorities into not taking steps that may be perfectly legitimate and that the Foreign Office is encouraging them to take?

[Richard Burden]

The point that my hon. Friend makes is about the fear that a lot of people have about the agenda behind this procurement policy note.

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[Dr Offord]

Indeed, reports of anti-Semitic attacks being perpetrated in Europe can be directly linked with the hateful rhetoric espoused by many BDS campaigners, and BDS founder Omar Barghouti has repeatedly expressed his opposition to Israel’s right to exist as a state of the Jewish people. But most telling of all is that the Palestinian Authority themselves do not support a boycott.

[Andy Slaughter]

On a point of order, Mr Streeter. [Interruption.]

[Dr Offord]

No.

[Mr Gary Streeter (in the Chair)]

Order. A point of order from Andy Slaughter. Let us hope it is a point of order.

[Andy Slaughter]

The subject of this debate is local government and ethical procurement. We have got so far from that subject as to be ridiculous, in my opinion.

[Mr Gary Streeter (in the Chair)]

If the hon. Member for Hendon (Dr Offord) was out of order, I would have called him out of order. It is actually the point that has been raised by the opening speaker, so I call Dr Matthew Offord.

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[Andy Slaughter (Hammersmith) (Lab)]

I thank my hon. Friend the Member for Birmingham, Northfield (Richard Burden), who knows more about these matters than possibly any other Member of the House, certainly with regard to Israel and Palestine. He has probably enabled us all to stay within our four-minute limit because he has asked most of the relevant questions. I also thank my hon. Friend the Member for Sheffield South East (Mr Betts), who referred to my declaration in the Register of Members’ Financial Interests. Last month, I was on a visit to the Occupied Palestinian Territories, funded by Medical Aid for Palestinians and organised by the Council for Arab-British Understanding.

When I arrived in Jerusalem, the first thing I got was a call from the BBC to ask me whether I wanted to comment on the arrival of the Minister for the Cabinet Office and Paymaster General, who was due to arrive in Tel Aviv the following day to make an announcement on local government procurement. I was a local authority council leader for quite a few years and I remember lots of procurement directives and announcements, particularly on the issue of compulsory competitive tendering in those dark days of the 1990s. I do not remember any of them being made from Tel Aviv.

I have a great deal of respect for the hon. Member for Norwich North (Chloe Smith), but she presented a rather thin argument—a thin but measured argument, as opposed to a thick and unmeasured argument, which we have also heard from the other side. The idea that, for instance, London—or any local authority, particularly in our great cities—should not be able to take a view on such matters is a thin and transparent argument, especially when the current Mayor of London spends half his life touring the world, quite rightly promoting British trade and matters of that kind. This is a thin and transparent argument, and it comes from the fact that this ridiculous advice note comes out of the Conservative party press notice, as my hon. Friend the Member for Birmingham, Northfield has said.

I will make just three points. First, there is a conflict between the established and well drafted Foreign and Commonwealth Office advice, which has been quoted extensively—it is very clear in its advice to businesses not to get involved in settlement trade—and the obscurity, lack of clarity and, indeed, disingenuous nature of the procurement policy note, which does not appear to say very much but hints at a great deal, mentioning things such as community cohesion and other matters of that kind, and also favouring national suppliers.

Secondly, there does not appear to be in that note—I hope the Minister will clarify this—any breach of the World Trade Organisation or European Union guidance, because there is no discrimination based on nationality, contrary to some of the almost hysterical things that we have heard today. The specific issue being dealt with in this debate and that the Minister is being asked about—it was the one dealt with in the answer to my question—relates to the Occupied Palestinian Territories. We all know that the occupation is unlawful under international law and that they are not recognised by the UK and many other countries as part of Israel.

This issue should not be conflated with BDS. Different people have different views on BDS. The fact that we have labelling guidance, which the Government have maintained, allows people to make individual choices. Some may argue that it is open to public bodies or others to make such choices if they want to, or for Members of Parliament to make statements in relation to such matters, but that is a different matter from illegal settlements. Illegal settlements should not be traded with, and if local authorities wish to make such a decision, that should be open.

Let us remember what we are talking about here: theft of land, occupation, colonisation, and the arbitrary detention of many thousands of Palestinians. Those are crimes in international law as great as anything that happened in South Africa. They are not happening within one country; they are happening in somebody else’s country. That is the reason why action needs to be taken, and it is perfectly reasonable that it is done in this way.

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[John Penrose]

I believe I already have. Although it is difficult, it is entirely possible for a settlement to be illegal while the businesses operating within it are entirely within the law, treating their staff, suppliers and customers properly and so on. It is possible for both those things to happen at once.

[Andy Slaughter]

Will the Minister give way?

[John Penrose]

I must make progress. In spite of those flexibilities, local authorities must still be careful not to make discriminatory policies even where they believe that the GPA does not apply. The rules also provide mechanisms to protect authorities from dealing with risky suppliers.

To answer the question asked by my right hon. Friend the Member for Rutland and Melton (Sir Alan Duncan), I should say that authorities can take into account the legal and economic risks of dealing with particular suppliers. The rules include various grounds on which individual suppliers can be excluded from bidding, such as where the company is guilty of criminal offences, corruption or grave professional misconduct or in breach of environmental, social or labour laws and so forth. This is a key point: the rules must be applied on a case-by-case basis, company by company, rather than on the basis of an entire geographical area, as a blanket ban or boycott would inevitably do—that would make them discriminatory.

Local authorities have significant flexibilities and can exercise pretty wide discretion within the rules—I hope that I am answering my right hon. Friend’s question—but the rules themselves are clearly necessary to protect them by ensuring that they do not take actions that could land them and us in court. Nobody wants to waste public money on costly court cases.

I am running out of time, so I will stop to allow the hon. Member for Birmingham, Northfield time to respond, but I emphasise that on foreign policy, we have clearly not changed our approach to the Palestinian occupied territories or to settlements around the pre-1967 boundaries of Israel. With that, although there are many other things that I would have liked the opportunity to address, I want to leave the hon. Gentleman a chance to respond. I will sit down and leave the floor to him.